Visa has reported a net income of $2.07bn for the first quarter of fiscal year 2017, an increase of 7% compared to $1.94bn during the same period a year ago.

For the quarter ended 31 December 2016, the company's net operating revenue stood at $4.5bn, an increase of 25% driven by the inclusion of Europe and continued growth in processed transactions and nominal payments volume.

Visa said that exchange rate shifts versus the prior year has negatively impacted reported net operating revenue growth by approximately 3 percentage points.

On a constant dollar basis, payments volume growth for the three months ended 31 December 2016 was 39% over the prior year at $1.8 trillion.

Total processed transactions, which represent transactions processed by Visa, were 27.3 billion, a 44% increase over the prior year.

GAAP operating expenses stood at $1.4bn for the fiscal first quarter 2017, a 16% increase over the prior year's results, primarily driven by the inclusion of Europe and increases in personnel, marketing, and general and administrative expenses.

Visa CEO Alfred Kelly, Jr., said: “Visa’s fiscal 2017 is off to a terrific start with a strong first quarter of revenue and earnings growth driven by accelerating growth in payments volume, cross-border commerce and processed transactions in virtually all regions around the world.

“As we look ahead, we continue to see good momentum in the business driven by domestic and cross-border volumes, increasing consumer participation in electronic payments in developing markets, and the further acceleration of e-commerce in developed markets. We remain focused on the integration of Europe which is proceeding well.”