MasterCard beats forecasts as profit soars 41%

MasterCard Inc's fourth-quarter profit soared 41%, beating expectations, as consumers around the world spent more money using credit and debit cards.

The world's second-largest credit and debit card processing network on Thursday reported a quarterly profit of USD 415 million, or USD 3.16 per share. That compared with a year-ago profit of USD 294 million, or USD 2.24 per share.

Analysts on average had expected USD 3.04 per share, according to Thomson Reuters I/B/E/S.

Revenue rose almost 11% to USD 1.43 billion, slightly above expectations. Chief Executive Ajay Banga said revenue growth showed "quarter-over-quarter improvement in all regions."

MasterCard and its larger rival Visa Inc are increasingly looking abroad for growth. The US market is relatively saturated, as most people already use credit or debit cards, and new US regulations are expected to limit the card industry's revenue.

MasterCard's cross-border volumes, which indicate that people are traveling more and using their cards in foreign countries, grew almost 19% in the fourth quarter.

On Wednesday Visa reported a 16% increase in quarterly profit, to $884 million or USD 1.23 per share.

MasterCard shares were fractionally lower in premarket trading.