MasterCard profits rise 24 per cent in first quarter

May 3, 2011, 13:40 GMT

New York - Credit card giant MasterCard Inc on Tuesday reported a 24-per-cent increase in first quarter profits for 2011, to 562 million dollars, as more consumers used credit cards in lieu of cash or cheques.

In the same period a year earlier, net income was 455 million dollars.

The Purchase, New York-based company said in a statement that net revenue increased 14.8 per cent to 1.5 billion dollars and operating expenses rose 9.4 per cent to 665 million dollars, compared to the same period in 2010.

'We had a strong start to 2011 despite the hardships experienced by many consumers and businesses due to natural disasters and political turmoil in several markets,' said Ajay Banga, MasterCard president and chief executive.

'Our solid volume and processed transaction growth helped to drive a double-digit revenue increase. This growth is reflective of the strong fundamentals and globality of our business.'

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