STOCK MARKET WATCH -- Wednesday, 1 August 2012

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25. MASTERCARD'S NET RISES 15 PERCENT TO $700 MILLION

http://hosted.ap.org/dynamic/stories/U/US_EARNS_MASTERCARD?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2012-08-01-09-04-30

NEW YORK (AP) -- MasterCard reported a 15 percent increase in quarterly income after recording a $13 million expense related to a settlement with merchants over credit card fees.

The Purchase, N.Y.-based payments processor earned $700 million, or $5.55 per share, on revenue of $1.8 billion in the second quarter. That's up from $608 million or $4.76 per share a year ago.

Excluding the charge, MasterCard earned $713 million or $5.65 a share, more than the $5.57 per share Wall Street analysts were expecting.

MasterCard took the $13 million pre-tax charge in the second quarter to cover legal costs. Last month, MasterCard, Visa and a group of major banks announced a settlement with stores over transaction fees. MasterCard, which had set aside a large amount last year to cover legal costs, will pay $790 million as part of that settlement.