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Visa profit falls 28 percent due to higher tax provision

Visa credit cards are displayed in Washington October 27, 2009. REUTERS/Jason Reed
Visa credit cards are displayed in Washington October 27, 2009. REUTERS/Jason Reed

(Reuters) - Visa Inc , the world's largest credit card company, reported a 28 percent fall in quarterly profit due to a higher income tax provision.

Visa shares traded 2.4 percent lower in after-hours trading.

Net income attributable to Visa fell to $1.19 billion, or $1.85 per Class A share, from $1.66 billion, or $2.47, a year earlier.

Total operating revenue rose 9 percent to $2.97 billion.

Analysts on average, had expected the company to earn $1.85 per share, on revenue of $3.02 billion, according to Thomson Reuters I/B/E/S.

The company maintained its full-year forecast for percentage growth per share in 2014 in the mid-to-high teens.

Visa's results were hit by a $574 million income tax provision, compared with a benefit of $74 million a year earlier. The company gave no reason for the bigger tax provision.

Visa's payment volumes rose 13 percent to $1.1 trillion in the quarter.

The company also announced a new $5 billion share buyback.

Shares of the company traded at $199 in after market trading. They closed at $203.82 on the New York Stock Exchange.

(Reporting by Tanya Agrawal; Editing by Don Sebastian)

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