Mastercard 1Q16 Earnings Call Notes

MasterCard (MA) Ajay Banga on Q1 2016 Results

US economy continues to be solid

“So now let’s take a look at the global economy, and I think it’s largely unchanged from what we discussed last quarter with the US economy remaining solid with inflation and wages growing at a similar pace and the unemployment rate kind of holding steady at 5%. We just saw the unemployment rate numbers coming out this morning as well. However, as we know from the Fed comments yesterday, uncertainty remains about when they might take action as well as the potential impact from the global economy.”

ROW is mixed

“So looking at the rest of the world, the economic outlook continues to be mixed. In Europe, both consumer confidence and economic sentiment declined slightly this quarter. However, recent stimulus measures by the European Central Bank and steady improvement in the unemployment rate I think should continue to drive growth across the region, particularly in the UK and Germany. Asia is still challenged by the continued slowdown in China. Consumer confidence remains cloudy with the exception being India where both consumer and business sentiment remain high. In Latin America, Brazil is still in the worst recession in the country’s history, and of course, economic conditions in Venezuela are deteriorating further. But Mexico is stable and it seems to be driven by solid consumer spending and declining inflation.”

issuer mix was under-performing for many years after the crisis but is now back to growing

” remember for a while, our issuer mix was underperforming soon after and for many years after the crisis. If you look at the reports, you’ll find it so happens that our issuer mix is back into growing its volumes and its businesses, and so we’re kind of riding that tailwind in our sales in addition to all the other stuff that’s going in and out.”