Visa Inc. Reports Fiscal Third Quarter 2015 Earnings Results

7/23/2015


  • GAAP quarterly net income of $1.7 billion or $0.69 per share including a non-cash, non-operating expense related to the revaluation of the Visa Europe put option
  • Adjusted quarterly net income of $1.8 billion or $0.74 per share excluding the revaluation of the Visa Europe put option

FOSTER CITY, Calif.--(BUSINESS WIRE)--Jul. 23, 2015-- Visa Inc. (NYSE:V) today announced financial results for the Company’s fiscal third quarter 2015. GAAP net income for the quarter, inclusive of a non-cash, non-operating expense related to an adjustment in the Company’s fair value of its Visa Europe put option, was $1.7 billion or $0.69 per share. These results also include a tax benefit of $280 million resulting from the successful resolution of uncertain tax positions with taxing authorities. All references to earnings per share assume fully-diluted class A share count unless otherwise noted.

Excluding the $110 million non-cash, non-operating expense recorded upon remeasurement of the Visa Europe put option, adjusted net income for the quarter was $1.8 billion, an increase of 33% over the prior year, or $0.74 per share, an increase of 36% over the prior year. The change in the fair value of the Visa Europe put option was a result of our quarterly revaluation required by U.S. GAAP. The Company’s adjusted quarterly net income and earnings per share are non-GAAP financial measures that are reconciled to their most directly comparable GAAP measure in the accompanying financial tables.

Net operating revenue in the fiscal third quarter of 2015 was $3.5 billion, an increase of 12% nominally or 14% on a constant dollar basis over the prior year, driven by solid growth in service, data processing and international transaction revenues.

“We continue to deliver solid financial results and operating metrics without the help of an improving economic environment. Strong underlying fundamentals continue to offset the drag from geopolitical tension and the strengthening dollar on our business,” said Charlie Scharf, Chief Executive Officer of Visa Inc.

Fiscal Third Quarter 2015 Financial Highlights:

Payments volume growth, on a constant dollar basis, for the three months ended March 31, 2015, on which fiscal third quarter service revenue is recognized, was 11% over the prior year at $1.2 trillion.

Payments volume growth, on a constant dollar basis, for the three months ended June 30, 2015, was 11% over the prior year at $1.3 trillion.

Cross-border volume growth, on a constant dollar basis, was 8% for the three months ended June 30, 2015.

Total processed transactions, which represent transactions processed by VisaNet, for the three months ended June 30, 2015, were 18.0 billion, an 8% increase over the prior year. As a result of recent changes in Russian National Payment System law, the Company has transitioned the processing of Russian domestic transactions to the Russian National Payment Card System during the fiscal third quarter. This impacted processed transactions growth negatively by approximately 2 percentage points during the quarter.

Fiscal third quarter 2015 service revenues were $1.6 billion, an increase of 9% 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 6% over the prior year to $1.4 billion. International transaction revenues grew 21% over the prior year to $1.0 billion. Other revenues were $199 million, an increase of 2% over the prior year. Client incentives, which are a contra revenue item, were $670 million and represent 16.0% of gross revenues.

Total operating expenses were $1.3 billion for the quarter, an 11% increase over the prior year, primarily related to an increase in personnel expenses, additional depreciation from our ongoing investments in technology assets, and general and administrative expenses.

GAAP effective tax rate was 21.7% for the quarter ended June 30, 2015. The rate included a benefit of $280 million resulting from the successful resolution of uncertain tax positions with taxing authorities in the third quarter.

Cash, cash equivalents, and available-for-sale investment securities were $8.0 billion at June 30, 2015.

The weighted-average number of diluted shares of class A common stock outstanding was 2.4 billion for the quarter ended June 30, 2015.

Notable Events:

During the three months ended June 30, 2015, the Company repurchased 15.5 million shares of class A common stock, at an average price of $68.05 per share, using $1.1 billion of cash on hand. Through the nine months ended June 30, 2015, the Company repurchased a total of 44.1 million shares of class A common stock, at an average price of $65.98 per share, using $2.9 billion of cash on hand. The Company has $2.8 billion of remaining funds, authorized by the board of directors, available for share repurchase under the current program.

On July 22, 2015, the board of directors declared a quarterly cash dividend of $0.12 per share of class A common stock (determined in the case of class B and class C common stock on an as-converted basis) payable on September 1, 2015, to all holders of record of the Company’s class A, B and C common stock as of August 14, 2015.

Visa Europe Update:

Visa Inc. believes there is compelling logic for both Visa Inc. and Visa Europe to consummate a business combination and therefore regularly engages in such discussions and is currently in such discussions with Visa Europe. The Company is targeting to resolve these discussions by the end of October and will provide an update during the fourth quarter earnings call, if not sooner. There is no assurance, however, that any transaction will be ultimately agreed or implemented.

Financial Outlook:

Visa Inc. reaffirms its financial outlook for the following metrics for fiscal full-year 2015:

  • Annual operating margin: Mid 60s; and
  • Annual free cash flow greater than $6 billion.

Visa Inc. updates its financial outlook for the following metrics for fiscal full-year 2015:

  • Annual net revenue growth: Constant dollar revenue growth of low double digits, with an expectation of about 2.5 percentage points of negative foreign currency impact;
  • Client incentives as a percent of gross revenues: Low-end of the 17.5% to 18.5% range;
  • Tax rate: 29% to 30% range; and
  • Annual adjusted diluted class A common stock earnings per share growth: Mid-teens range.

Fiscal full-year 2015 annual adjusted diluted earnings per share growth assumes an adjusted basis for fiscal full-year 2014.

Fiscal Third Quarter 2015 Earnings Results Conference Call Details:

Visa’s executive management team will host a live audio webcast beginning at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) today to discuss the financial results and business highlights. All interested parties are invited to listen to the live webcast at http://investor.visa.com. A replay of the webcast will be available on the Visa Investor Relations website for 90 days. Investor information, including supplemental financial information, is available on Visa Inc.’s Investor Relations website at http://investor.visa.com.

About Visa:

Visa Inc. (NYSE: V) is a global payments technology company that connects consumers, businesses, financial institutions, and governments in more than 200 countries and territories to fast, secure and reliable electronic payments. We operate one of the world's most advanced processing networks — VisaNet — that is capable of handling more than 56,000 transaction messages a second, with fraud protection for consumers and assured payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa's innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, pay ahead of time with prepaid or pay later with credit products. For more information, visit usa.visa.com/about-visa, visacorporate.tumblr.com and @VisaNews.

Forward-Looking Statements:

This Press Release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are identified by words such as "estimates," "expectation," “outlook,” "will," “continued" and other similar expressions. Examples of forward-looking statements include, but are not limited to, statements we make about our revenue, client incentives, operating margin, tax rate, earnings per share, free cash flow, and the growth of those items.

By their nature, forward-looking statements: (i) speak only as of the date they are made; (ii) are not statements of historical fact or guarantees of future performance; and (iii) are subject to risks, uncertainties, assumptions or changes in circumstances that are difficult to predict or quantify. Therefore, actual results could differ materially and adversely from our forward-looking statements due to a variety of factors, including the following:

  • the impact of laws, regulations and marketplace barriers, including:
    • rules capping debit interchange reimbursement rates and expanding financial institutions' and merchants' choices among debit payments networks promulgated under the Dodd-Frank Wall Street Reform and Consumer Protection Act;
    • increased regulation in jurisdictions outside of the United States and in other product categories;
    • increased government support of national payments networks outside the United States; and
    • increased regulation of consumer privacy, data use and security;
  • developments in litigation and government enforcement, including those affecting interchange reimbursement fees, antitrust and tax;
  • new lawsuits, investigations or proceedings, or changes to our potential exposure in connection with pending lawsuits, investigations or proceedings;
  • economic factors, such as:
    • economic fragility in the Eurozone and in the United States;
    • general economic, political and social conditions in mature and emerging markets globally;
    • general stock market fluctuations, which may impact consumer spending;
    • material changes in cross-border activity, foreign exchange controls and fluctuations in currency exchange rates;
    • volatility in market prices for oil and natural gas; and
    • material changes in our financial institution clients' performance compared to our estimates;
  • industry developments, such as competitive pressure, rapid technological developments and disintermediation from our payments network;
  • system developments, such as:
    • disruption of our transaction processing systems or the inability to process transactions efficiently;
    • account data breaches or increased fraudulent or other illegal activities involving Visa-branded cards or payment products; and
    • failure to maintain systems interoperability with Visa Europe;
  • any prospective transaction with Visa Europe may not be agreed to or implemented;
  • costs arising if we become obligated to purchase all of Visa Europe’s outstanding capital stock;
  • the loss of organizational effectiveness or key employees;
  • the failure to integrate acquisitions successfully or to effectively develop new products and businesses;
  • natural disasters, terrorist attacks, military or political conflicts, and public health emergencies; and

various other factors, including those contained in our Annual Report on Form 10-K for the year ended September 30, 2014, and our other filings with the U.S. Securities and Exchange Commission. You should not place undue reliance on such statements. Except as required by law, we do not intend to update or revise any forward–looking statements as a result of new information, future developments or otherwise.

         
         
VISA INC.        
CONSOLIDATED BALANCE SHEETS        
(UNAUDITED)        
    June 30,

2015

  September 30,

2014

    (in millions, except par value data)
Assets        
Cash and cash equivalents   $ 2,147     $ 1,971  
Restricted cash—litigation escrow     1,143       1,498  
Investment securities:        
Trading     71       69  
Available-for-sale     2,504       1,910  
Settlement receivable     704       786  
Accounts receivable     892       822  
Customer collateral     1,068       961  
Current portion of client incentives     248       210  
Deferred tax assets     834       1,028  
Prepaid expenses and other current assets     457       307  
Total current assets     10,068       9,562  
         
Investment securities, available-for-sale     3,300       3,015  
Client incentives     94       81  
Property, equipment and technology, net     1,847       1,892  
Other assets     920       855  
Intangible assets, net     11,375       11,411  
Goodwill     11,825       11,753  
Total assets   $ 39,429     $ 38,569  
         
Liabilities        
Accounts payable   $ 89     $ 147  
Settlement payable     1,237       1,332  
Customer collateral     1,068       961  
Accrued compensation and benefits     439       450  
Client incentives     1,053       1,036  
Accrued liabilities     806       624  
Accrued litigation     1,097       1,456  
Total current liabilities     5,789       6,006  
         
Deferred tax liabilities     4,134       4,145  
Other liabilities     879       1,005  
Total liabilities     10,802       11,156  
         
Equity        
Preferred stock, $0.0001 par value, 25 shares authorized and none issued            
Class A common stock, $0.0001 par value, 2,001,622 shares authorized, 1,951 and 1,978 shares issued and outstanding at June 30, 2015 and September 30, 2014, respectively            
Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at June 30, 2015 and September 30, 2014            
Class C common stock, $0.0001 par value, 1,097 shares authorized, 19 and 22 shares issued and outstanding at June 30, 2015 and September 30, 2014, respectively            
Additional paid-in capital     18,008       18,299  
Accumulated income     10,623       9,131  
Accumulated other comprehensive loss, net:        
Investment securities, available-for-sale     5       31  
Defined benefit pension and other postretirement plans     (86 )     (84 )
Derivative instruments classified as cash flow hedges     78       38  
Foreign currency translation adjustments     (1 )     (2 )
Total accumulated other comprehensive loss, net     (4 )     (17 )
Total equity     28,627       27,413  
Total liabilities and equity   $ 39,429     $ 38,569  
         
VISA INC.                
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)                
                 
    Three Months Ended

June 30,

  Nine Months Ended

June 30,

    2015   2014   2015   2014
    (in millions, except per share data)
Operating Revenues                
Service revenues   $ 1,550     $ 1,417     $ 4,665     $ 4,298  
Data processing revenues     1,400       1,321       4,123       3,819  
International transaction revenues     1,039       860       2,973       2,622  
Other revenues     199       195       607       558  
Client incentives     (670 )     (638 )     (2,059 )     (1,824 )
Total operating revenues     3,518       3,155       10,309       9,473  
                 
Operating Expenses                
Personnel     566       463       1,558       1,379  
Marketing     224       228       619       659  
Network and processing     117       127       340       379  
Professional fees     82       82       229       234  
Depreciation and amortization     130       109       375       323  
General and administrative     137       126       404       354  
Litigation provision                 3        
Total operating expenses     1,256       1,135       3,528       3,328  
Operating income     2,262       2,020       6,781       6,145  
Non-operating (expense) income     (94 )     10       (69 )     29  
Income before income taxes     2,168       2,030       6,712       6,174  
Income tax provision     471       670       1,896       1,809  
Net income   $ 1,697     $ 1,360     $ 4,816     $ 4,365  
                 
Basic earnings per share                
Class A common stock   $ 0.69     $ 0.54     $ 1.96     $ 1.73  
Class B common stock   $ 1.14     $ 0.91     $ 3.23     $ 2.91  
Class C common stock   $ 2.78     $ 2.17     $ 7.84     $ 6.91  
                 
Basic weighted-average shares outstanding                
Class A common stock     1,955       1,982       1,964       2,001  
Class B common stock     245       245       245       245  
Class C common stock     20       26       21       26  
                 
Diluted earnings per share                
Class A common stock   $ 0.69     $ 0.54     $ 1.96     $ 1.72  
Class B common stock   $ 1.14     $ 0.91     $ 3.22     $ 2.90  
Class C common stock   $ 2.77     $ 2.17     $ 7.82     $ 6.89  
                 
Diluted weighted-average shares outstanding            
Class A common stock     2,448       2,511       2,462       2,533  
Class B common stock     245       245       245       245  
Class C common stock     20       26       21       26  
                 
VISA INC.        
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)        
    Nine Months Ended

June 30,

    2015   2014
    (in millions)
Operating Activities        
Net income   $ 4,816     $ 4,365  
Adjustments to reconcile net income to net cash provided by operating activities:        
Amortization of client incentives     2,059       1,824  
Fair value adjustment for the Visa Europe put option     110        
Share-based compensation     139       130  
Excess tax benefit for share-based compensation     (78 )     (82 )
Depreciation and amortization of property, equipment, technology and intangible assets     375       323  
Deferred income taxes     196       (358 )
Other     18       10  
Change in operating assets and liabilities:        
Settlement receivable     82       24  
Accounts receivable     (64 )     (55 )
Client incentives     (2,093 )     (1,775 )
Other assets     (342 )     (318 )
Accounts payable     (52 )     (86 )
Settlement payable     (95 )     82  
Accrued and other liabilities     141       273  
Accrued litigation     (362 )     1,055  
Net cash provided by operating activities     4,850       5,412  
         
Investing Activities        
Purchases of property, equipment, technology and intangible assets     (276 )     (326 )
Proceeds from sales of property, equipment and technology     10        
Investment securities, available-for-sale:        
Purchases     (2,315 )     (1,842 )
Proceeds from sales and maturities     1,410       1,863  
Acquisition, net of cash received     (93 )     (134 )
Purchases of / contributions to other investments     (22 )     (3 )
Proceeds / distributions from other investments     10        
Net cash used in investing activities     (1,276 )     (442 )
         
Financing Activities        
Repurchase of class A common stock     (2,910 )     (3,362 )
Dividends paid     (885 )     (758 )
Payments from (return to) litigation escrow account—retrospective responsibility plan     355       (1,056 )
Cash proceeds from issuance of common stock under employee equity plans     68       81  
Restricted stock and performance-based shares settled in cash for taxes     (105 )     (85 )
Excess tax benefit for share-based compensation     78       82  
Net cash used in financing activities     (3,399 )     (5,098 )
Effect of exchange rate changes on cash and cash equivalents     1        
Increase (decrease) in cash and cash equivalents     176       (128 )
Cash and cash equivalents at beginning of year     1,971       2,186  
Cash and cash equivalents at end of period   $ 2,147     $ 2,058  
         
Supplemental Disclosure        
Income taxes paid, net of refunds   $ 1,892     $ 1,943  
Accruals related to purchases of property, equipment, technology and intangible assets   $ 67     $ 42  
         
VISA INC.                    
FISCAL 2015 AND 2014 QUARTERLY RESULTS OF OPERATIONS
(UNAUDITED)                    
                     
    Fiscal 2015 Quarter Ended   Fiscal 2014 Quarter Ended
    June 30,
2015
  March 31,
2015
 

December 31,
2014

  September 30,
2014
  June 30,
2014
    (in millions)
Operating Revenues                    
Service revenues   $ 1,550     $ 1,577     $ 1,538     $ 1,499     $ 1,417  
Data processing revenues     1,400       1,340       1,383       1,348       1,321  
International transaction revenues     1,039       964       970       938       860  
Other revenues     199       204       204       212       195  
Client incentives     (670 )     (676 )     (713 )     (768 )     (638 )
                     
Total operating revenues     3,518       3,409       3,382       3,229       3,155  
                     
Operating Expenses                    
Personnel     566       483       509       496       463  
Marketing     224       190       205       241       228  
Network and processing     117       109       114       128       127  
Professional fees     82       77       70       94       82  
Depreciation and amortization     130       125       120       112       109  
General and administrative     137       141       126       153       126  
Litigation provision           3             453        
                     
Total operating expenses     1,256       1,128       1,144       1,677       1,135  
                     
Operating income     2,262       2,281       2,238       1,552       2,020  
                     
Non-operating (expense) income     (94 )     1       24       (2 )     10  
                     
Income before income taxes     2,168       2,282       2,262       1,550       2,030  
Income tax provision     471       732       693       477       670  
                     
Net income   $ 1,697     $ 1,550     $ 1,569     $ 1,073     $ 1,360  
                                         
VISA INC.
RECONCILIATION OF NON-GAAP FINANCIAL RESULTS
(UNAUDITED)
                                   
During the third quarter of fiscal 2015, we recorded an increase of $110 million in the fair value of the Visa Europe put option, resulting in the recognition of non-cash, non-operating expense that we do not believe is indicative of our operating performance. As such, we believe the presentation of adjusted financial results provides a clearer understanding of our operating performance for the current periods presented. This amount is not subject to income tax and therefore has no impact on our reported income tax provision. There were no comparable adjustments recorded for the three and nine months ended June 30, 2014. Net income, as adjusted, and diluted earnings per share, as adjusted, are non-GAAP financial measures and should not be relied upon as substitutes for measures calculated in accordance with U.S. GAAP. The following table reconciles our as-reported net income and diluted earnings per share, which are calculated in accordance with U.S. GAAP, to our net income, as adjusted, and diluted earnings per share, as adjusted, for the periods presented:  
    Three Months Ended June 30,   Nine Months Ended June 30,  
    Net Income  

Diluted Earnings
per Share(1)

  Net Income  

Diluted Earnings
per Share(1)

 
    2015   2014   2015   2014   2015   2014   2015   2014  
    (in millions, except per share data)  
As reported   $ 1,697   $ 1,360   $ 0.69   $ 0.54   $ 4,816   $ 4,365   $ 1.96   $ 1.72  
Revaluation of Visa Europe put option     110         0.04         110         0.04      
As adjusted   $ 1,807   $ 1,360   $ 0.74   $ 0.54   $ 4,926   $ 4,365   $ 2.00   $ 1.72  
Diluted weighted-average shares outstanding         2,448     2,511

 

          2,462     2,533

 

                                   
                                   
(1) Figures in the table may not recalculate exactly due to rounding. Diluted earnings per share figures are calculated based on unrounded numbers.  

Prior period amounts have been retroactively adjusted for the four-for-one split of class A common stock that was effected in the second quarter of fiscal 2015.

 
   

Operational Performance Data

The tables below provide information regarding the available operational results for the 3 months ended June 30, 2015, as well as the prior four quarterly reporting periods and the 12 months ended June 30, 2015 and 2014, for cards carrying the Visa, Visa Electron and Interlink brands.

1. Branded Volume and Transactions

The tables present regional total volume, payments volume, and cash volume, and the number of payments transactions, cash transactions, accounts and cards for cards carrying the Visa, Visa Electron and Interlink brands. Card counts include PLUS proprietary cards. Nominal and constant dollar growth rates over prior years are provided for volume-based data.

    For the 3 Months Ended June 30, 2015
   

Total
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Transactions
(millions)

 

Cash
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Cash
Transactions
(millions)

                                             
All Visa Credit & Debit                                            
Asia Pacific   $ 509   4.2 %   10.8 %   $ 364   7.8 %   15.2 %   4,362   $ 145   -3.8 %   1.1 %   1,002
Canada     61   -5.8 %   5.1 %     56   -6.0 %   4.9 %   675     5   -3.3 %   7.8 %   12
CEMEA     238   -14.0 %   7.1 %     61   -6.3 %   14.8 %   1,783     177   -16.4 %   4.7 %   1,199
LAC     237   -11.0 %   11.5 %     88   -12.5 %   12.3 %   2,591     148   -10.0 %   11.0 %   1,071

US

    809   7.9 %   7.9 %     683   8.7 %   8.7 %   13,314     127   4.0 %   4.0 %   952
Visa Inc.     1,854   0.5 %   8.9 %     1,252   5.1 %   10.9 %   22,725     602   -8.0 %   5.1 %   4,236
                                             
Visa Credit Programs                                            
US   $ 352   11.3 %   11.3 %   $ 339   11.6 %   11.6 %   4,072   $ 13   3.6 %   3.6 %   16

International

    490   0.2 %   12.5 %     453   2.8 %   14.3 %   5,889     37   -23.6 %   -6.3 %   160
Visa Inc.     842   4.5 %   12.0 %     791   6.4 %   13.2 %   9,960     50   -17.9 %   -3.9 %   177
                                             
Visa Debit Programs                                            
US   $ 457   5.5 %   5.5 %   $ 344   5.9 %   5.9 %   9,242   $ 113   4.1 %   4.1 %   936

International

    555   -8.5 %   7.4 %     117   -5.1 %   10.8 %   3,522     438   -9.4 %   6.6 %   3,124
Visa Inc.     1,012   -2.7 %   6.5 %     461   2.9 %   7.1 %   12,764     552   -6.9 %   6.1 %   4,060
                                                               
    For the 3 Months Ended March 31, 2015
   

Total
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Transactions
(millions)

 

Cash
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Cash
Transactions
(millions)

 

Accounts
(millions)

 

Cards
(millions)

                                                     
All Visa Credit & Debit                                                    
Asia Pacific   $ 495   2.9 %   8.6 %   $ 343   4.8 %   11.6 %   4,092   $ 152   -1.2 %   2.4 %   986   711   809
Canada     54   -5.0 %   7.1 %     49   -5.3 %   6.8 %   602     5   -1.7 %   10.9 %   12   42   49
CEMEA     213   -15.6 %   12.4 %     54   -7.8 %   20.4 %   1,619     159   -17.9 %   9.9 %   1,136   329   323
LAC     243   -2.9 %   13.4 %     93   -1.3 %   15.7 %   2,529     149   -3.8 %   12.0 %   1,042   417   450

US

    748   8.4 %   8.4 %     628   9.2 %   9.2 %   12,204     120   4.4 %   4.4 %   892   624   789
Visa Inc.     1,752   1.3 %   9.6 %     1,168   5.4 %   10.8 %   21,046     584   -6.0 %   7.2 %   4,067   2,123   2,420
                                                     
Visa Credit Programs                                                    
US   $ 316   12.3 %   12.3 %   $ 303   12.3 %   12.3 %   3,623   $ 13   12.2 %   12.2 %   15   241   318

International

    464   0.3 %   11.7 %     428   2.7 %   12.8 %   5,533     36   -21.7 %   0.6 %   169   489   546
Visa Inc.     780   4.8 %   12.0 %     731   6.4 %   12.6 %   9,156     49   -14.8 %   3.5 %   184   730   864
                                                     
Visa Debit Programs                                                    
US   $ 432   5.8 %   5.8 %   $ 325   6.5 %   6.5 %   8,581   $ 107   3.5 %   3.5 %   877   382   471

International

    540   -6.4 %   9.4 %     111   -3.5 %   12.2 %   3,310     428   -7.1 %   8.7 %   3,006   1,011   1,085
Visa Inc.     972   -1.3 %   7.7 %     437   3.8 %   7.9 %   11,891     535   -5.1 %   7.6 %   3,883   1,393   1,556
                                                                       
    For the 3 Months Ended December 31, 2014
   

Total
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Transactions
(millions)

 

Cash
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Cash
Transactions
(millions)

 

Accounts
(millions)

 

Cards
(millions)

                                                     
All Visa Credit & Debit                                                    
Asia Pacific   $ 511   3.6 %   8.0 %   $ 359   5.8 %   10.7 %   4,186   $ 152   -1.4 %   1.9 %   974   698   797
Canada     66   -0.1 %   8.7 %     62   -0.1 %   8.7 %   671     5   0.2 %   9.0 %   11   42   49
CEMEA     265   -7.4 %   16.2 %     65   3.6 %   27.1 %   1,619     200   -10.4 %   13.1 %   1,225   325   321
LAC     286   -0.4 %   13.8 %     109   -0.6 %   15.3 %   2,697     177   -0.2 %   12.8 %   1,130   415   453

US

    772   9.4 %   9.4 %     651   10.2 %   10.2 %   12,594     121   5.2 %   5.2 %   914   614   782
Visa Inc.     1,900   3.4 %   10.5 %     1,246   7.0 %   11.5 %   21,767     654   -2.9 %   8.7 %   4,254   2,093   2,402
                                                     
Visa Credit Programs                                                    
US   $ 341   13.7 %   13.7 %   $ 327   13.9 %   13.9 %   3,956   $ 13   9.2 %   9.2 %   16   236   313

International

    512   1.9 %   11.3 %     468   4.0 %   12.2 %   5,775     44   -15.9 %   2.4 %   188   485   544
Visa Inc.     853   6.3 %   12.2 %     795   7.8 %   12.9 %   9,731     58   -11.2 %   3.9 %   204   721   857
                                                     
Visa Debit Programs                                                    
US   $ 431   6.2 %   6.2 %   $ 324   6.6 %   6.6 %   8,638   $ 108   4.7 %   4.7 %   898   377   469

International

    616   -2.2 %   11.3 %     127   2.7 %   15.6 %   3,398     489   -3.4 %   10.3 %   3,152   994   1,076
Visa Inc.     1,047   1.1 %   9.1 %     450   5.5 %   9.0 %   12,036     597   -2.0 %   9.2 %   4,050   1,372   1,545
                                                                       
    For the 3 Months Ended September 30, 2014
   

Total
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Transactions
(millions)

 

Cash
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Cash
Transactions
(millions)

 

Accounts
(millions)

 

Cards
(millions)

                                                     
All Visa Credit & Debit                                                    
Asia Pacific   $ 506   9.1 %   9.0 %   $ 352   11.9 %   11.8 %   4,000   $ 154   3.2 %   3.2 %   960   677   774
Canada     66   2.0 %   7.4 %     61   1.7 %   7.0 %   651     5   5.5 %   11.0 %   12   40   47
CEMEA     280   5.9 %   15.0 %     68   18.0 %   26.5 %   1,489     213   2.5 %   11.7 %   1,173   321   318
LAC     276   6.6 %   12.1 %     105   7.4 %   14.4 %   2,496     171   6.1 %   10.8 %   1,056   417   448

US

    756   9.2 %   9.2 %     632   9.9 %   9.9 %   12,315     124   6.0 %   6.0 %   951   590   754
Visa Inc.     1,885   8.0 %   10.3 %     1,217   10.2 %   11.5 %   20,950     667   4.2 %   8.3 %   4,152   2,044   2,341
                                                     
Visa Credit Programs                                                    
US   $ 327   12.7 %   12.7 %   $ 313   12.8 %   12.8 %   3,734   $ 14   11.8 %   11.8 %   17   230   304

International

    506   7.6 %   10.4 %     458   9.0 %   11.3 %   5,554     49   -3.7 %   2.8 %   192   484   545
Visa Inc.     833   9.6 %   11.3 %     770   10.5 %   11.9 %   9,289     62   -0.6 %   4.7 %   209   714   850
                                                     
Visa Debit Programs                                                    
US   $ 429   6.7 %   6.7 %   $ 319   7.2 %   7.2 %   8,580   $ 110   5.4 %   5.4 %   934   360   450

International

    622   6.9 %   11.7 %     127   16.7 %   20.8 %   3,081     495   4.6 %   9.5 %   3,009   970   1,042
Visa Inc.     1,052   6.8 %   9.6 %     447   9.7 %   10.8 %   11,661     605   4.8 %   8.7 %   3,943   1,330   1,492
                                                                       
    For the 3 Months Ended June 30, 2014
   

Total
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Transactions
(millions)

 

Cash
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Cash
Transactions
(millions)

 

Accounts
(millions)

 

Cards
(millions)

                                                     
All Visa Credit & Debit                                                    
Asia Pacific   $ 488   7.1 %   9.6 %   $ 338   11.1 %   12.6 %   3,821   $ 151   -1.0 %   3.5 %   910   658   754
Canada     65   0.6 %   7.6 %     60   1.1 %   8.2 %   627     5   -5.2 %   1.5 %   12   39   46
CEMEA     276   5.0 %   14.2 %     65   18.1 %   25.8 %   1,389     212   1.6 %   11.0 %   1,196   313   310
LAC     266   -1.3 %   10.0 %     101   0.3 %   12.1 %   2,408     165   -2.3 %   8.8 %   1,013   418   446

US

    750   9.4 %   9.4 %     628   10.1 %   10.1 %   12,224     122   5.9 %   5.9 %   943   580   743
Visa Inc.     1,845   6.1 %   10.1 %     1,191   9.4 %   11.5 %   20,469     654   0.7 %   7.4 %   4,073   2,008   2,299
                                                     
Visa Credit Programs                                                    
US   $ 316   12.1 %   12.1 %   $ 303   12.3 %   12.3 %   3,574   $ 13   8.3 %   8.3 %   16   223   296

International

    489   5.7 %   10.1 %     440   7.0 %   11.0 %   5,366     49   -4.3 %   1.6 %   199   478   536
Visa Inc.     805   8.1 %   10.9 %     744   9.1 %   11.6 %   8,940     62   -1.9 %   3.2 %   215   701   832
                                                     
Visa Debit Programs                                                    
US   $ 433   7.4 %   7.4 %   $ 325   8.1 %   8.1 %   8,650   $ 109   5.6 %   5.6 %   927   356   447

International

    607   2.7 %   11.1 %     123   15.0 %   22.9 %   2,879     484   0.0 %   8.4 %   2,932   950   1,020
Visa Inc.     1,040   4.6 %   9.4 %     448   9.9 %   11.3 %   11,529     593   1.0 %   7.8 %   3,859   1,307   1,467
                                                                       
    For the 12 Months Ended June 30, 2015
   

Total
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Transactions
(millions)

 

Cash
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Cash
Transactions
(millions)

                                             
All Visa Credit & Debit                                            
Asia Pacific   $ 2,021   4.9 %   9.1 %   $ 1,418   7.5 %   12.3 %   16,641   $ 603   -0.8 %   2.2 %   3,922
Canada     248   -2.1 %   7.1 %     228   -2.3 %   6.9 %   2,598     20   0.2 %   9.7 %   47
CEMEA     996   -7.7 %   12.8 %     247   1.6 %   22.2 %   6,510     748   -10.5 %   10.0 %   4,733
LAC     1,041   -1.9 %   12.7 %     396   -1.9 %   14.5 %   10,312     646   -2.0 %   11.7 %   4,299

US

    3,085   8.7 %   8.7 %     2,594   9.5 %   9.5 %   50,427     492   4.9 %   4.9 %   3,709
Visa Inc.     7,390   3.3 %   9.8 %     4,882   6.9 %   11.1 %   86,488     2,508   -3.2 %   7.4 %   16,710
                                             
Visa Credit Programs                                            
US   $ 1,335   12.5 %   12.5 %   $ 1,282   12.6 %   12.6 %   15,385   $ 54   9.1 %   9.1 %   65

International

    1,972   2.5 %   11.5 %     1,806   4.6 %   12.6 %   22,751     166   -16.0 %   0.0 %   709
Visa Inc.     3,307   6.3 %   11.9 %     3,088   7.8 %   12.6 %   38,136     219   -11.0 %   2.1 %   774
                                             
Visa Debit Programs                                            
US   $ 1,750   6.0 %   6.0 %   $ 1,312   6.6 %   6.6 %   35,042   $ 438   4.4 %   4.4 %   3,645

International

    2,333   -2.6 %   10.0 %     482   2.4 %   14.9 %   13,310     1,851   -3.8 %   8.8 %   12,291
Visa Inc.     4,083   0.9 %   8.3 %     1,795   5.4 %   8.7 %   48,352     2,289   -2.3 %   7.9 %   15,936
                                                               
    For the 12 Months Ended June 30, 2014
   

Total
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Transactions
(millions)

 

Cash
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Cash
Transactions
(millions)

 

Accounts
(millions)

 

Cards
(millions)

                                                     
All Visa Credit & Debit                                                    
Asia Pacific   $ 1,926   7.4 %   11.8 %   $ 1,319   9.7 %   14.2 %   14,630   $ 608   2.8 %   7.2 %   3,532   658   754
Canada     253   1.4 %   8.1 %     233   1.6 %   8.2 %   2,390     20   -0.2 %   6.4 %   46   39   46
CEMEA     1,079   7.6 %   14.2 %     243   20.9 %   27.7 %   4,994     836   4.3 %   10.7 %   4,598   313   310
LAC     1,062   -0.6 %   10.6 %     403   1.5 %   13.8 %   9,629     659   -1.9 %   8.7 %   4,060   418   446

US

    2,838   8.6 %   8.6 %     2,369   9.3 %   9.3 %   46,360     469   5.0 %   5.0 %   3,641   580   743
Visa Inc.     7,158   6.4 %   10.4 %     4,568   8.8 %   11.7 %   78,003     2,590   2.4 %   8.1 %   15,878   2,008   2,299
                                                     
Visa Credit Programs                                                    
US   $ 1,187   10.6 %   10.6 %   $ 1,138   10.9 %   10.9 %   13,492   $ 49   5.1 %   5.1 %   63   223   296

International

    1,925   5.5 %   11.4 %     1,727   6.4 %   12.4 %   20,866     197   -1.5 %   2.7 %   767   478   536
Visa Inc.     3,112   7.4 %   11.1 %     2,865   8.1 %   11.8 %   34,359     247   -0.2 %   3.2 %   830   701   832
                                                     
Visa Debit Programs                                                    
US   $ 1,651   7.2 %   7.2 %   $ 1,231   8.0 %   8.0 %   32,868   $ 419   5.0 %   5.0 %   3,578   356   447

International

    2,395   4.6 %   12.2 %     471   15.9 %   24.0 %   10,776     1,924   2.2 %   9.6 %   11,469   950   1,020
Visa Inc.     4,046   5.7 %   9.9 %     1,702   10.0 %   11.6 %   43,644     2,344   2.7 %   8.6 %   15,047   1,307   1,467
                                                                       

2. Cross-Border Volume

The table below represents cross-border volume growth for cards carrying the Visa, Visa Electron, Interlink and PLUS brands. Cross-border volume refers to payments and cash volume where the issuing country is different from the merchant country.

Period  

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

         

3 Months Ended

       
Jun 30, 2015   0%   8%
Mar 31, 2015   2%   8%
Dec 31, 2014   4%   8%
Sep 30, 2014   9%   10%
Jun 30, 2014   6%   7%
         

12 Months Ended

       
Jun 30, 2015   4%   9%
Jun 30, 2014   8%   9%
         

3. Visa Processed Transactions

The table below represents transactions involving Visa, Visa Electron, Interlink and PLUS cards processed on Visa’s networks.

Period  

Processed
Transactions
(millions)

  Growth
         

3 Months Ended

       
Jun 30, 2015   18,024   8%
Mar 31, 2015   16,980   11%
Dec 31, 2014   17,599   10%
Sep 30, 2014   16,991   10%
Jun 30, 2014   16,662   11%
         

12 Months Ended

       
Jun 30, 2015   69,595   10%
Jun 30, 2014   63,492   12%
         

Footnote

Payments volume represents the aggregate dollar amount of purchases made with cards carrying the Visa, Visa Electron and Interlink brands for the relevant period; and cash volume represents the aggregate dollar amount of cash disbursements obtained with these cards for the relevant period and includes the impact of balance transfers and convenience checks; but excludes proprietary PLUS volume. Total volume represents payments volume plus cash volume.

Visa payment products are comprised of credit and debit programs, and data relating to each program is included in the tables. Debit programs include Visa’s signature based and Interlink (PIN) debit programs.

The data presented is based on results reported quarterly by Visa’s financial institution clients on their operating certificates. Estimates may be utilized if data is unavailable.

On occasion, previously presented information may be updated. Prior period updates, if any, are not material.

Visa’s CEMEA region is comprised of countries in Central Europe, the Middle East and Africa. Effective with the 3 months ended September 2013, Croatia moved from the CEMEA region to Visa Europe. Several European Union countries in Central Europe, Israel and Turkey are not included in CEMEA. LAC is comprised of countries in Central and South America and the Caribbean. International includes Asia Pacific, Canada, CEMEA and LAC.

Information denominated in U.S. dollars is calculated by applying an established U.S. dollar/local currency exchange rate for each local currency in which Visa Inc. volumes are reported (“Nominal USD”). These exchange rates are calculated on a quarterly basis using the established exchange rate for each quarter. To eliminate the impact of foreign currency fluctuations against the U.S. dollar in measuring performance, Visa Inc. also reports year-over-year growth in total volume, payments volume and cash volume on the basis of local currency information (“Constant USD”). This presentation represents Visa’s historical methodology which may be subject to review and refinement.

 

Source: Visa Inc.

Visa Inc.
Investor Relations:
Jack Carsky or Victoria Hyde-Dunn, 650-432-7644
ir@visa.com
or
Media Relations:
John Earnhardt, 415-805-4949
globalmedia@visa.com