Visa Inc has reported its financial results for the second quarter of fiscal 2022.

GAAP net income in the fiscal second quarter was $3.6 billion or $1.70 per share, an increase of 21% and 23%, respectively, over prior year’s results. Current year’s results included $127 million of net losses from equity investments, $40 million from the amortization of acquired intangible assets and non-recurring acquisition-related costs, and $60 million from the Russia-Ukraine charges.

Let’s note that Visa announced the suspension of its operations in Russia early in March 2022. As a result, Visa no longer generating revenue from domestic and cross-border activities related to Russia.

Since 2015, domestic transactions have been processed by Russia’s state-owned payments operator, National Payment Card System. With respect to cross-border activities, all transactions initiated with Visa cards issued by financial institutions outside Russia no longer work within Russia, and all transactions on cards issued in Russia no longer work outside the country.

Furthermore, Visa has deconsolidated our Russian subsidiary, as required under U.S. GAAP. For the first half of fiscal 2022 and full year fiscal 2021, total net revenues from Russia, including revenues driven by domestic as well as cross-border activities, were approximately 4% of Visa’s consolidated net revenues.

Prior year’s results included $152 million pertaining to a special item for additional indirect taxes, $156 million of net gains from equity investments, and $18 million from the amortization of acquired intangible assets and non-recurring acquisition-related costs. Excluding these items and related tax impacts, non-GAAP net income for the quarter was $3.8 billion or $1.79 per share, increases of 27% and 30%, respectively, over prior year’s results (refer to the accompanying financial tables for further details and a reconciliation of the GAAP to non-GAAP measures presented).

Net revenues in the fiscal second quarter were $7.2 billion, an increase of 25%, driven by the year-over-year growth in payments volume, cross-border volume and processed transactions. Net revenues increased approximately 27% on a constant-dollar basis.

Payments volume for the three months ended December 31, 2021, on which fiscal second quarter service revenues are recognized, increased 20% over the prior year on a constant-dollar basis.

Payments volume for the three months ended March 31, 2022, increased 17% over the prior year on a constant-dollar basis.

Cross-border volume excluding transactions within Europe, which drive our international transaction revenues, increased 47% on a constant-dollar basis for the three months ended March 31, 2022. Total cross-border volume on a constant- dollar basis increased 38% in the quarter.

Total processed transactions, which represent transactions processed by Visa, for the three months ended March 31, 2022, were 44.8 billion, a 19% increase over the prior year.

Fiscal second quarter service revenues were $3.5 billion, an increase of 24% over the prior year, and are recognized based on payments volume in the prior quarter. All other revenue categories are recognized based on current quarter activity.

Data processing revenues rose 16% over the prior year to $3.5 billion. International transaction revenues grew 48% over the prior year to $2.2 billion. Other revenues of $474 million rose 21% over the prior year. Client incentives, a contra-revenue item, were $2.5 billion and represented 25.8% of gross revenues.

Cash, cash equivalents and investment securities were $15.8 billion at March 31, 2022.

The weighted-average number of diluted shares of class A common stock outstanding was 2.14 billion for the quarter ended March 31, 2022.

Alfred F. Kelly, Jr., Chairman and Chief Executive Officer, Visa Inc.

“We had solid growth in most countries around the globe and across all elements of our business, with revenue growth of over 20% in consumer payments, new flows and value added services. While the geopolitical environment remains uncertain, we expect continued growth driven by a robust travel recovery and through the enablement of traditional and newer ways to pay globally.”