MasterCard and Barclays released their latest earnings reports before opening bell. MasterCard reported adjusted earnings of 81 cents per share and revenue of $2.4 billion. Analysts had been looking for earnings per share of 85 cents and revenue of $2.4 billion.
Barclays posted pretax profits of £3.114 billion, a 25% increase year over year which includes net losses of £615 million.
MasterCard disappoints on profits
MasterCard’s reported profit was 85 cents per share, including a settlement of litigation with a UK. merchant. The payments processor reported a 17% increase in cross-border volumes. Gross dollar volume in local currencies rose 13% to $1.1 trillion, while the number of processed transactions increased 13% to 12 billion. Higher rebates and incentives partially offset those positive factors. Worldwide purchase volume increased 12% in local currencies to $841 billion.
As of this writing, shares of MasterCard were down 2.21% at $93 per share in premarket trades.
Barclays sees strong growth
Barclays reported an 11% increase in adjusted group profit to £3.73 billion on the back of improvements in all of its core segments. The firm reported a 7.7% increase in adjusted return on average shareholders’ equity. Net tangible asset value per share declined to 279 pence from December’s 285 pence. Dividend distributions and changes in forward interest rates and currency headwinds more than offset second quarter profits
The firm also reported strong capital and leverage progress. Barclays’ fully loaded Common Equity Tier 1 ratio rose to 11.1% from December’s 10.3%. The firm’s leverage ratio rose to 4.1% from December’s 3.7%, meeting management’s previously set target.
As of this writing, American Depository Receipt shares of Barclays were up 2.18% at $17.43 per share in premarket trading at the New York Stock Exchange. Barclays shares on the London Stock Exchange rose 2.18% to £285.70 per share.