Mastercard 3Q15 Earninsg Call Notes

MasterCard (MA) Ajay Banga on Q3 2015 Results

US Economy remains most solid

“So now let’s take a quick look at what’s going on in the global economy. And it’s been challenged in recent months, and while the U.S. recovery remains among the most solid – job gains have steadily lowered the unemployment rate to just over 5% – but job and wage growth are starting to slow. Consumer confidence is only moderately up, and as you know, given yesterday’s announcement, uncertainty about rising interest rates remain. So when moving beyond the U.S., the economic picture is more mixed”

Mexico is the lone bright spot in LatAm

“The lone bright spot there appears to be Mexico, where the economic recovery continues, led by relatively strong consumer spending and the lowest levels of inflation in almost 50 years.”

We remain cautious about the global economy, but our business remains strong

“overall we remain cautious about the outlook for the global economy. Now, in saying (4:33) all of this, our business continues to grow; our fundamentals remain strong. We’re seeing double-digit volume and transaction growth across most of our markets as a result of our efforts to drive the shift from cash to electronic payments, but also as well as our continued business growth.”

Working to be ready to process domestic chinese transactions by the end of 2016

“I want to say a few words about the opening of the Chinese domestic market. Since the final Chinese regulations have not yet been released, we have no new insights to add beyond what we all told you at our recent Investor Day last month. We continue to execute against our plans to be technically ready to process domestic Chinese transactions by the end of 2016, and we’re working on expanding issuance and acceptance in that market while we wait for clarity on the regulations.”

Business drivers flat compared to the third quarter so far in October

“let’s discuss what we have seen in October through the 21st. Our business drivers are similar or just a bit lower compared to the third quarter, so the numbers through October 21 are as follows: Starting with processed volume, we saw global growth of 12%, which is unchanged from the third quarter. In the U.S., our processed volume grew 7%. That is also unchanged from what we saw in the last quarter. Processed volume outside the U.S. grew 17%. That’s about 1 ppt lower than the third quarter, with similar growth in Europe and slightly lower growth in the other regions. ”