Visa has reported a net income of $1.7bn for the fiscal second quarter ended 31 March 2016, an increase of 10.1% compared to $1.6bn for the same quarter in the previous year.
Net operating revenue was $3.6bn, an increase of 6% nominally or 9% on a constant dollar basis in comparison to the corresponding period of 2015. Currency rate shifts versus the previous year negatively impacted reported net operating revenue growth by about 3 percentage points, the company said.
On a constant dollar basis, payments volume for the three months ended 31 March 2016 rose 12% over the prior year to $1.3 trillion. Cross-border volume rose 5% during the period.
Total processed transactions representing transactions processed by VisaNet increased by 9% to $18.5bn versus a year ago.
The firm’s total operating expenses stood at $1.2bn, up 6% from the year ago quarter, primarily driven by an increase in personnel, general and administrative, and network and processing expenses.
Visa CEO Charlie Scharf said: "The continued headwinds of the strong U.S. dollar, lower oil prices, and an uneven global economy are driving continued weak cross-border spend, but domestic spend continues at reasonably strong levels consistent with last quarter. In fact, most of our growth metrics look very similar to what we saw last quarter.
"The U.S. consumer remains strong, but we see weakness in China, Brazil, and oil based economies. Since we are not seeing any material improvements in economic trends, we are cautious as we head into the second half of fiscal 2016. The continued headwinds we see do not take away from the underlying growth in our business and our continued conviction in the great opportunities to grow global penetration of electronic payments for years to come."