MasterCard Optimistic, Perceives Positive Future

The credit card company MasterCard, Inc, apparently hasn’t been strongly affected by the credit crisis that has struck the U.S. in 2007 and continues to hurt its economy until the present day. According to Walt Macnee, the president of the global markets division of MasterCard, Inc, the market for credit in countries other than the U.S. is looking particularly good right now. Thus, even while America continues to be wracked by the credit crisis, MasterCard is anticipating economic expansion and growth for itself.

During an interview with Reuters in Purchase, New York, Walt Macnee has been quoted as saying that MasterCard is “in a position [to] remain very confident about this fiscal year and the one after.” MasterCard is apparently poised to emerge in several growing credit markets around the world—countries whose quickly developing economy has left more and more people needing and wanting credit.

How do statistics bear out this positive prognosis? They seem to back it up. The company stated that it experienced an increase in its quarterly earnings in January of 2008, with a total of $304.2 million in earnings for that quarter. Since January of 2007, MasterCard’s quarterly earnings have reportedly increased more than seven-fold. In January of 2007, MasterCard was earning 30 cents per share, and a total of $40.9 million per quarter. This January, MasterCard is reportedly earning as much as $2.26 per share.

While the company did not give a specific numerical prediction for future growth this year, it is clearly optimistic.

How did MasterCard manage to weather the American credit crisis so well? Part of the reason is that MasterCard does not, itself, issue credit cards. Instead, it earns money from the total amount of credit transactions that take place on its network. Thus, MasterCard does not suffer as much when consumers are unable to pay off their credit card debts.

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