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October 26, 2022

Visa records growth in Q4 profit, raises dividend by 20%

Visa has reported a rise in net income for the fourth quarter ended 30 September 2022, aided by strong growth in payment volumes and processed transactions.

Key metrics:

The California-based payments giant registered GAAP net income of $3.9bn in the fiscal fourth quarter, up 10% from the same quarter a year ago.

Its non-GAAP net income increased of $4.1bn increased 16% over the same period.

The firm’s net revenues soared 19% to $7.8bn in the fourth quarter. Service revenue rose 11% to $3.5bn, while data processing revenues increased 10% to $3.8bn.

International transaction revenue jumped 52% to $2.9bn and other revenue grew 13% to $551m.

Total processed transactions in the July-September 2022 quarter were $50.9bn, a 12% rise from the corresponding quarter of 2021, while payments volume grew 10%.

Cross-border volume excluding transactions within Europe jumped 49% and total cross-border volume on a constant-dollar basis surged 36% on a constant dollar basis.

Net income for the full 2022 financial year surged 21% to $15bn, while revenues jumped 22% to $29.3bn.

Higher personnel and general and administrative expenses led to a 20% rise in GAAP operating expenses to $2.7bn.

Besides, Visa’s board sanctioned a new $12bn share repurchase programme, and raised the quarterly dividend by 20% to 45 cents a share.

Visa chairman and CEO Alfred F. Kelly, Jr. said: “In Visa’s fiscal fourth quarter, we saw a continuation of many of the spending trends present throughout 2022: strength in consumer payments, resilience in eCommerce and ongoing recovery in cross-border travel. These trends contributed to robust full-year 2022 results, with net revenues, net income and EPS all up more than 20% year-over-year, despite broader macroeconomic uncertainty and geopolitical turmoil.

As we look ahead, while some short-term uncertainty exists, we remain confident in Visa’s long-term growth trajectory across consumer payments, new flows and value added services.”

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