Mastercard Incorporated (NYSE:MA) today announced financial results for the fourth quarter and full year 2023.
Net revenue for the fourth quarter of 2023 amounted to $6.5 billion, an increase of 13%, or 11% on a currency-neutral basis. The increase was attributable to growth in Mastercard’s payment network and its value-added services and solutions.
Payment network net revenue increased 9%, or 7% on a currency-neutral basis. Primary drivers of the increase were as follows:
- Gross dollar volume growth of 10%, on a local currency basis, to $2.4 trillion.
- Cross-border volume growth of 18% on a local currency basis.
- Switched transactions growth of 12%.
Total operating expenses increased 21% from a year earlier. Excluding the impact of Fourth Quarter Special Items, adjusted operating expenses increased 10%, or 9% on a currency-neutral basis primarily due to higher personnel costs.
The effective tax rate for the fourth quarter of 2023 was 16.0%, versus 18.3% for the comparable period in 2022.
Fourth quarter net income amounted to $2.8 billion, and diluted earnings per share (EPS) were $2.97.
As of December 31, 2023, the company’s customers had issued 3.3 billion Mastercard and Maestro-branded cards.
