Visa Reports Increase in Quarterly Profits, Raises Dividends

Visa Inc. said its fourth-quarter revenue rose an adjusted 16% from a year earlier, again boosted by greater use of its global payments network of the same name.

The San Francisco-based company said it earned $3.94 billion, or $1.86 per share. Excluding one-time charges, including Visa writing off some of its investments due to the stock market slump this year, the company earned $4.09 billion, or $1.93 per share. That’s better than the $1.87 per share that analysts were predicting, according to FactSet.

Visa processed $2.929 trillion in payments on its network in the July-September quarter, up 10.5% in dollar terms. In the wake of the pandemic, there has been a global move to use electronic payments for more mundane purchases such as groceries. This change in behavior has had a direct impact on Visa’s bottom line, as it charges a small fee for each transaction completed on its network.

The increase in payments occurred despite a spike in inflation around the world. Visa said it has yet to see a change in consumer buying behavior.

“Looking ahead, while there is some near-term uncertainty, we remain confident in Visa’s long-term growth trajectory in consumer payments, new flows and value-added services,” Visa CEO Al Kelly said in a statement.

For the full fiscal year, Visa said it earned $16 billion on an adjusted basis on revenue of $29.3 billion. This is 24% more than a year earlier.

Visa’s board of directors also approved an increase in the company’s quarterly dividend to 45 cents per share. The board also approved a new $12 billion stock buyback program that replaces the previous program.

Visa shares rose about 2% in after-hours trading.