Payments volume growth, tax benefit contribute to 26 per cent rise in Visa’s fiscal 2Q profit

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FILE - In this April 25, 2013 file photo, credit and debit cards are displayed for a photographer in Baltimore. Visa Inc. reports quarterly earnings on Thursday, April 24, 2014. (AP Photo/Patrick Semansky, File)

Visa Inc.’s profit jumped 26 per cent in its fiscal second quarter from a year earlier as the company benefited from strong growth in payments volume, service revenue and a one-time tax gain.

The debit and credit card payments processor reported net income of $1.6 billion, or $2.52 per share, for the three months that ended March 31. That compares with net income of $1.3 billion, or $1.92 per share, a year earlier.

Excluding the tax benefit, the Foster City, Calif., company earned $2.20 per share in the latest quarter.

Operating revenue rose to $3.16 billion from $2.96 billion a year earlier.

Analysts polled by FactSet, on average, forecast earnings of $2.18 per share on revenue of $3.19 billion.

Visa shares fell 1.2 per cent in after-market trading.

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