The multinational financial service provider, Mastercard experienced a decline in profit during the first quarter due to increased personnel costs, despite a surge in customer transaction volumes.
Mastercard’s profit dropped by 7 per cent to $2.4 billion or $2.47 per share from $2.6 billion or $2.68 per share in 2022, although the net revenue rose 11 per cent to $5.7 billion in 2023.
Financial companies have been trying to save money lately because the pandemic-related increase in spending is slowing down and the economy is struggling. This has led to job cuts on Wall Street due to higher costs.
Due to the economic hardship and the end of the pandemic-driven boost to spending from pent-up demand, financial firms have been striving to reduce costs. Wall Street has also experienced job cuts as expenses continue to rise.
According to Reuters, total operating expenses on an adjusted basis increased by 10 per cent to $2.4 billion in the first quarter that ended in March.
Meanwhile, the financial giant witnessed a 15 per cent surge in gross dollar volumes, which represents the total dollar value of all transactions processed, amounting to $2.1 trillion in local currency as consumer spending remained strong.
