Mastercard with strong profits amid credit crisis

Business Materials 1 February 2008 01:54 (UTC +04:00)

( dpa ) - US credit card company Mastercard Inc Thursday reported a strong increase in profits for the fourth quarter, weathering the US mortgage crisis on the back of international sales and after selling its stake in a Brazilian competitor.

Net income rose to 304 million dollars in the final quarter of 2007, up from 41 million dollars in the year-earlier period, in large part due to a 185-million-dollar gain from the sale of holdings in Redecard SA.

Shares in the Purchase, New York-based company surged more than 10 per cent in trading on Wall Street. Its rival American Express Co reported a drop in profits Tuesday due to the ongoing credit crisis.

Revenue in the world's second-largest credit company climbed 28 per cent to 1.1 billion dollars. The weakening dollar contributed to nearly 5 per cent of that growth. The company had 916 million credit card holders at the end of December, up nearly 13 per cent from a year earlier.