Visa has reported a net income of $1.94bn for the first quarter of fiscal year 2016, an increase of 23.5% compared to $1.57bn a year ago.
For the quarter ended 31 December 2015, the company’s net operating revenue was $3.6bn, an increase of 5% nominally or 8% on a constant dollar basis compared to the corresponding period of 2015.
The strengthening of the US dollar as compared to a year earlier negatively impacted net operating revenue growth by about 3 percentage points, the company said.
On a constant dollar basis, payments volume growth for the three months ended 31 December 2015, increased by 11% to $1.3trn compared to the prior year. Cross-border volume growth, on a constant dollar basis, was 4% for this period.
Total processed transactions representing transactions processed by VisaNet increased by 8% to 19 billion versus a year ago.
The company’s total operating expenses stood at $1.2bn, up 2% from the year ago quarter, primarily driven by an increase in personnel, professional, and marketing expenses, depreciation from ongoing investments in technology assets, offset by lower general and administrative expenses.
Visa CEO Charlie Scharf said: "While we continue to see relatively strong payments volume growth, these factors have meaningfully reduced our cross-border volume and revenue growth.
"While these headwinds do not appear to be abating in the short-term as we had hoped, the fundamentals of our business remain strong and our long-term growth trajectory remains intact as we navigate through this uncertain environment."