Master Card announced that its quarterly income expectations had been exceeded, thanks to the fact that there was also an increase in national spending and cross-border spending regarding international travel.
As the report indicates, everything seems to be a consequence of the fact that the restrictions due to the pandemic have been relaxed in some cities; and that there are more and more people vaccinated.
The increase in the gross value in dollars increased by 23% with respect to the year 2021, which represents 2.1 billions of dollars. For its part, the volumes of cross-border spending increased by 53%; This metric is key to tracking card spending outside the country of issue.
When we talk about exceeding expectations, it is because the estimates were for net income of $5,160 million and it reached $5,200 million in revenue. This represents an increase of 27%.
Regarding operating expenses operation, the increase was 06% compared to the previous year; that is, a total of $2,400 million dollars. This means that the company’s profits increased by 2,41 dollars per share.
Analysts estimated the profit to be about $2,21 dollars, however, the profit was $2,35 dollars per share.
In the same category of credit cards, American Express, a close rival of Master Card, also beat estimates in quarterly earnings thanks to the record levels of expenses that were made with its cards.
During this 2022 there has been a constant delivery of credit cards, by the different financial entities of the country in order to demonstrate confidence in the state of the US economy.
Studies show that banks have offered credit cards to borrowers with lower credit scores, in order to boost their profitability.
Since the start of the pandemic, the consumer has been underestimated with debt and card payments; however, spending has actually increased, perhaps as a result of government financial stimuli and unemployment checks.