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Financial Services

MasterCard shrugs off concerns about slowing global growth

Consumers are still spending, despite concerns about the growth rate of the global economy

Consumer spending levels seem to be holding up well, based on third quarter numbers from credit and debit card provider MasterCard (NYSE:MA).

The operator of the second-largest payments networks net income fell 3.7% to US$977mln from US$1.02bn the year before, but the fall was not as precipitous as analysts had feared.

Reported earnings per share dipped to 86 cents from 87 cents, but excluding a US$50mln charge relating to its pension plan, the number rose to 91 cents, which topped analysts' expectations by three cents.

Revenue was up 1.6% to US$2.53bn from US$2.49bn last year, but was shy of the consensus forecast of US$2.55bn.

Global debit and credit spending volume growth held steady, with spending in the U.S. up 7.6%; in Asia spending rose 2.7% but in Latin America it slumped 15%.

Adjusting for currency fluctuations, worldwide spending rose 13%.

"We are pleased with the results we delivered this quarter, in spite of the ongoing uncertainty in the global economy," said Ajay Banga, chief executive of MasterCard.

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