Visa Happy as customers use their Credit Cards more
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Photo Credit: socksasgloves
Visa is a recent entry in the stock market. It joined only on the 19th of January, and since then, it’s shares have risen by over 70%, with it’s initial share value being $44, rising to close at $75.63 on Monday.
The IPO of Visa raised $18 Billion. It was the largest IPO in the history of the US. Visa however, needed every cent of that money. It set aside $12 billion to buy back it’s shares from banks who, consequently had a huge vested interest in the company. These banks like JP Morgan, and BoA, earned huge profits from the IPO. And the cash must have been welcome, as the financial sector has sustained immense losses on the loan repayment, and the mortage market front.
Another $3 Billion was set aside for lawsuits.
The company’s books showed a jump in Profits of 28% due to the increased use of Credit Cards by it’s customers. However, it seems that investors are expecting even more. They were disappointed by Visas’s earnings which they felt should have been even higher. Even so, Visa’s earnings were pretty much what analysts expected, at $1.45 billion ending the 31st of March.
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