Mastercard Inc.’s fourth-quarter earnings beat analysts’ forecasts even as operating expenses grew more than analysts expected.

Adjusted earnings came in at US$3.18 a share, higher than estimates of $3.08, while net income of $2.79 billion missed expectations of $2.89 billion. Operating expenses surged 21 per cent to $3.18 billion, compared with forecasts of $2.91 billion.

Shares declined 0.7 per cent at 8:50 a.m. in early New York trading.

The Purchase, New York-based company said U.S. consumer spending on the company’s cards is continuing to perform well, which helped fourth-quarter results. Rival Visa Inc. similarly cited strong U.S. spending as a boost to earnings in the period. 

“We delivered strong earnings and revenue growth for the full year 2023, driven by healthy consumer spending, cross-border volume growth of 24 per cent and the solid execution of our strategy,” Mastercard Chief Executive Officer Michael Miebach said in a statement Wednesday.

A joint venture with NetsUnion Clearing Corp. was granted a bank card clearing license by the People’s Bank of China in November, giving Mastercard a competitive edge over competitors. 

Mastercard expects net revenue percentage growth in the high end of the low double digits for all of 2024, according to the firm’s earnings presentation. Operating expenses, meanwhile, are expected to grow in the mid-single digits.

Other highlights from the fourth-quarter results:

• The firm’s operating margin came in at 51.5 per cent, compared with estimates of 55.9 per cent.
• Purchase volume totaled $1.92 trillion, matching estimates.
• Cross-border volumes rose 18 per cent from a year earlier, compared with estimates of 18.3 per cent