Daily Times

Net profit of MasterCard, one of top global payments companies, jumped to $2.4 billion in October-December 2021 period, recording an increase of $600 million on a year-on-year basis. The company reported an annual 33 percent jump in fourth-quarter net profit, driven by a recovery in global spending and surge in cross-border transactions. Revenue during the period rose about 27 percent on an annual basis to $5.2 billion, said the company.

The company said the earnings growth was primarily driven by cross-border volume growth that increased 53 percent in the October-December period. “We had a strong fourth quarter as spending trends continued to improve … [with] cross-border spending now above pre-pandemic levels,” MasterCard’s chief executive Michael Miebach said.

“We are optimistic about the coming year as consumers, businesses and governments have become more adaptable to the changing environment.”

The New York-based financial technology company’s full 2021 financial year’s net profit surged about 35 percent to $8.7bn, while sales increased almost 23 per cent to $18.9bn. MasterCard said it is carrying out its “strategic priorities and making good progress in scaling new products, strengthening partner relationships and winning new deals”.

The company’s operating income in the fourth quarter rose 37 per cent on a yearly basis to $2.8bn, while operating expenses increased 16 per cent annually to $2.4bn.

Total purchase transactions through MasterCard in the fourth quarter stood at $38.9bn, up 25.6 percent year-on-year. The number of cards issued by MasterCard globally increased 11.4 per cent annually to more than 2.5 billion at the end of last year. Maximum cards were in circulation in Asia Pacific, Middle East and Africa region (902 million) followed by Europe (739 million), the US (573 million), Latin America (307 million) and Canada (67 million).