Visa’s Profit Up 25 Percent Due to Growth in Credit Card Spending

Visa’s Profit Up 25 Percent Due to Growth in Credit Card Spending

Visa net profit increased 25 percent in the last three months of 2012, up from $1.03 billion a year ago to $1.29 billion. Consumers used their credit and debit cards more often during holiday shopping.

Visa, the world's largest payment network, processed 14.2 billion transactions during the quarter, up 4 percent from a year ago. The dollar volume of payments made by Visa cardholders rose by 9 percent.

U.S. debit card purchase volume dropped by almost 4 percent versus year-ago levels, and this followed a nearly 6 percent decline the previous quarter. But debit and credit card transactions overseas jumped 21 percent.

Revenue from data processing rose 17 percent to $1.1 billion, while international transactions revenue grew 8 percent to $805 million. In November, consumers increased their borrowing by $16 billion from September to a seasonally adjusted record of $2.77 trillion.

"I am more bullish today about the opportunities that we have than the day I joined," recently-hired Visa CEO Charles Scharf said during his first conference call.