Visa Inc. Reports Strong Fiscal Fourth Quarter Adjusted Earnings Per Share Growth of 14% and Full-Year 2015 Adjusted Earnings Per Share Growth of 16% and Announces a New $5.0 Billion Share Repurchase Program

11/02/2015


  • GAAP quarterly net income of $1.5 billion or $0.62 per diluted class A common share, an increase of 41% and 44% over the prior year, respectively, or an increase of 12% and 14% over the prior year’s adjusted results, respectively
  • GAAP full-year 2015 net income of $6.3 billion or $2.58 per diluted class A common share, an increase of 16% and 20% over the prior year, respectively
  • Adjusted full-year 2015 net income of $6.4 billion or $2.62 per diluted class A common share, an increase of 13% and 16% over the prior year’s adjusted results, respectively
  • The Company authorized a new $5.0 billion repurchase program, in addition to the previously announced 17% quarterly per share dividend increase

FOSTER CITY, Calif.--(BUSINESS WIRE)--Nov. 2, 2015-- Visa Inc. (NYSE:V) today announced financial results for the Company’s fiscal fourth quarter and full-year 2015. GAAP net income in the fiscal fourth quarter of 2015 was $1.5 billion or $0.62 per share, an increase of 41% and 44% over the prior year, respectively. GAAP net income for the full-year 2015 was $6.3 billion or $2.58 per share, an increase of 16% and 20% over the prior year, respectively. All references to earnings per share assume fully-diluted class A share count unless otherwise noted.

Net income in the fiscal fourth quarter was $1.5 billion or $0.62 per share, an increase of 12% and 14% over the prior year adjusted results, respectively. Adjusted net income for the full-year 2015 was $6.4 billion or $2.62 per share, an increase of 13% and 16% over the prior year’s adjusted results, respectively. The Company’s full-year 2015 adjusted financial results excluded a non-cash, non-operating expense recorded upon the revaluation of the Visa Europe put option of $110 million. The Company’s 2015 results included a one-time tax benefit of $239 million resulting from the successful resolution of uncertain tax positions with taxing authorities during the fiscal third quarter that related to prior years. Prior year adjusted results excluded the impact of a special item related to amounts covered by the retrospective responsibility plan and related tax benefit during the fiscal fourth quarter. Prior year results also included a one-time tax benefit of $191 million related to a deduction for prior years’ U.S. domestic production activities during the fiscal second quarter.

Net operating revenue in the fiscal fourth quarter of 2015 was $3.6 billion, an increase of 11% nominally or 13% on a constant dollar basis over the prior year. The strengthening of the U.S. dollar versus the prior year quarter negatively impacted net operating revenue growth by approximately 3 percentage points.

Net operating revenue for the fiscal full-year 2015 was $13.9 billion, an increase of 9% nominally or 12% on a constant dollar basis over the prior year, driven by solid revenue growth contributions from service, data processing and international transaction revenues. The strengthening of the U.S. dollar versus the prior year negatively impacted net operating revenue growth by approximately 2.5 percentage points.

Adjusted quarterly and full-year operating expenses and net income per class A common share outstanding are non-GAAP financial measures that are reconciled to their most directly comparable GAAP measures in the accompanying financial tables.

“Visa’s fiscal fourth quarter was a strong finish to an equally strong fiscal full-year 2015 in terms of revenue and earnings per share growth in the face of a continued challenging global economic environment. The underlying growth of our franchise continued as evidenced by our strong payments volumes as well as new and renewed partnerships during the year. Most importantly, we continued to build our capabilities at the physical point-of-sale as well as in the digital space,” said Charlie Scharf, Chief Executive Officer of Visa Inc. “Although fiscal 2016 reported growth rates will be negatively impacted by a strong US dollar and an uneven global economy, we are well positioned for strong success in 2017 and well beyond.”

Fiscal Fourth Quarter 2015 Financial Highlights:

Payments volume growth, on a constant dollar basis, for the three months ended June 30, 2015, on which fiscal fourth quarter service revenue is recognized, was 11% over the prior year at $1.3 trillion.

Payments volume growth, on a constant dollar basis, for the three months ended September 30, 2015, was 12% over the prior year at $1.3 trillion.

Cross-border volume growth, on a constant dollar basis, was 5% for the three months ended September 30, 2015.

Total processed transactions, which represent transactions processed by VisaNet, for the three months ended September 30, 2015, were 18.4 billion, an 8% increase over the prior year.

Fiscal fourth 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 16% over the prior year to $1.1 billion. Other revenues were $216 million, a 3% increase over the prior year. Client incentives, which are a contra revenue item, were $802 million and represent 18.4% of gross revenues.

Total operating expenses were $1.3 billion for fiscal fourth quarter 2015, a 5% increase over the prior year’s adjusted results, primarily related to an increase in personnel, professional, and marketing expenses, additional depreciation from our ongoing investments in technology assets, offset by lower general and administrative expenses.

GAAP effective tax rate was 33.8% for the quarter ended September 30, 2015.

The weighted-average number of diluted class A common shares outstanding in the fiscal fourth quarter was 2.4 billion.

Cash, cash equivalents, and available-for-sale investment securities were $9.3 billion at September 30, 2015.

Fiscal Full-Year 2015 Financial Highlights:

For the fiscal full-year 2015, service revenues were $6.3 billion, an increase of 9% over the prior year. Data processing revenues rose 7% over the prior year to $5.6 billion. International transaction revenues, which are driven by cross-border volume, grew 14% over the prior year to $4.1 billion. Other revenues were $823 million, a 7% increase over the prior year. Client incentives, which are a contra revenue item, were $2.9 billion and represent 17.1% of gross revenues.

Total processed transactions, which represent transactions processed by VisaNet for the twelve months ended September 30, 2015, totaled 71.0 billion, a 9% increase over the prior year.

Total operating expenses were $4.8 billion for the twelve months ended September 30, 2015, a 6% increase over last year’s adjusted results, primarily related to continued investments in personnel, infrastructure and technology, offset by a reduction in marketing and network and processing fees.

GAAP effective tax rate was 29.6% for the twelve months ended September 30, 2015.

The weighted-average number of diluted class A common shares outstanding for the full year was 2.5 billion.

Notable Events:

During the three months ended September 30, 2015, the Company did not repurchase shares of class A common stock. During the twelve months ended September 30, 2015, class A common stock was reduced by 44.1 million shares, at an average price of $65.98 per share, using $2.9 billion of cash on hand. At September 30, 2015, the Company had $2.8 billion of remaining funds, authorized by the board of directors, available for share repurchase under the current program.

As announced on October 21, 2015, the board of directors declared a quarterly dividend in the aggregate amount of $0.14 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 December 1, 2015, to all holders of record of the Company’s class A, class B and class C common stock as of November 13, 2015.

The board of directors has authorized a new $5.0 billion class A common stock share repurchase program. The shares may be repurchased from time to time as market conditions warrant, and authorization for the program is subject to further change at the discretion of the board.

Financial Outlook:

Visa Inc. provides its financial outlook for the following metrics for fiscal full-year 2016:

  • Annual net revenue growth: High single-digit to low double-digit range on a constant dollar basis, with an expectation of about three percentage points of negative foreign currency impact;
  • Client incentives as a percent of gross revenues: 17.5% to 18.5% range;
  • Annual operating margin: Mid 60s;
  • Tax rate: Low 30s;
  • Annual adjusted diluted class A common stock earnings per share growth: Low-end of the mid-teens range on a constant dollar basis, with an expectation of about four percentage points of negative foreign currency impact; and
  • Annual free cash flow: About $7 billion.

The financial outlook for fiscal full-year 2016 does not include any impact from the Visa Europe transaction.

Fiscal Fourth Quarter 2015 Earnings Results Conference Call Details:

Visa’s executive management team will host a live audio webcast beginning at 5:00 a.m. Pacific Time (8:00 a.m. Eastern Time) today to discuss the financial results and business highlights for the quarter, as well as the Visa Europe transaction. The dial-in information for the call is 888-790-4410 (within the United States) or 773-756-0127 (international). The conference passcode is 7974435. A replay of the call will be available until December 1 and can be accessed by dialing 800-925-1967. The live call and replay, along with supporting materials, can also be accessed through the Investor Relations section of Visa’s website at www.investor.visa.com. A replay of the webcast will be available on Visa’s Investor Relations website for 30 days.

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 65,000 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", "may," "projects," "could," "should," "will," "will continue" 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:
    • increased regulation of fees, transaction routing, payment card practices or other aspects of the payments industry in the United States, including new or revised regulations issued under the Dodd-Frank Wall Street Reform and Consumer Protection Act;
    • increased regulation in jurisdictions outside of the United States;
    • increased government support of national payment 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, the United States and in other advanced and emerging markets;
    • 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; 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 more fully described in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended September 30, 2014, and our subsequent reports on Forms 10-Q and 8-K.

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)
           
      September 30,   September 30,
      2015   2014
      (in millions, except par value data)
Assets            
Cash and cash equivalents     $ 3,518       $ 1,971  
Restricted cash—litigation escrow       1,072         1,498  
Investment securities:            
Trading       66         69  
Available-for-sale       2,431         1,910  
Settlement receivable       408         786  
Accounts receivable       847         822  
Customer collateral       1,023         961  
Current portion of client incentives       303         210  
Deferred tax assets       871         1,028  
Prepaid expenses and other current assets       353         307  
Total current assets       10,892         9,562  
             
Investment securities, available-for-sale       3,384         3,015  
Client incentives       110         81  
Property, equipment and technology, net       1,888         1,892  
Other assets       776         855  
Intangible assets, net       11,361         11,411  
Goodwill       11,825         11,753  
Total assets     $ 40,236       $ 38,569  
             
Liabilities            
Accounts payable     $ 127       $ 147  
Settlement payable       780         1,332  
Customer collateral       1,023         961  
Accrued compensation and benefits       503         450  
Client incentives       1,049         1,036  
Accrued liabilities       868         624  
Accrued litigation       1,024         1,456  
Total current liabilities       5,374         6,006  
             
Deferred tax liabilities       4,123         4,145  
Other liabilities       897         1,005  
Total liabilities       10,394         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, 1,950 and 1,978 shares issued and outstanding at September 30, 2015 and 2014, respectively                
Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at September 30, 2015 and 2014                
Class C common stock, $0.0001 par value, 1,097 shares authorized, 20 and 22 shares issued and outstanding at September 30, 2015 and 2014, respectively                
Additional paid-in capital       18,073         18,299  
Accumulated income       11,843         9,131  
Accumulated other comprehensive loss, net:            
Investment securities, available-for-sale       5         31  
Defined benefit pension and other postretirement plans       (161 )       (84 )
Derivative instruments classified as cash flow hedges       83         38  
Foreign currency translation adjustments       (1 )       (2 )
Total accumulated other comprehensive loss, net       (74 )       (17 )
Total equity       29,842         27,413  
Total liabilities and equity     $ 40,236       $ 38,569  
                     
                           
VISA INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
                           
        Three Months Ended   Twelve Months Ended
        September 30,   September 30,
        2015     2014     2015     2014
        (in millions, except per share data)
Operating Revenues                          
Service revenues       $ 1,637       $ 1,499       $ 6,302       $ 5,797  
Data processing revenues         1,429         1,348         5,552         5,167  
International transaction revenues         1,091         938         4,064         3,560  
Other revenues         216         212         823         770  
Client incentives         (802 )       (768 )       (2,861 )       (2,592 )
Total operating revenues         3,571         3,229         13,880         12,702  
                           
Operating Expenses                          
Personnel         521         496         2,079         1,875  
Marketing         253         241         872         900  
Network and processing         134         128         474         507  
Professional fees         107         94         336         328  
Depreciation and amortization         119         112         494         435  
General and administrative         143         153         547         507  
Litigation provision         11         453         14         453  
Total operating expenses         1,288         1,677         4,816         5,005  
Operating income         2,283         1,552         9,064         7,697  
Non-operating (expense) income                 (2 )       (69 )       27  
Income before income taxes         2,283         1,550         8,995         7,724  
Income tax provision         771         477         2,667         2,286  
Net income       $ 1,512       $ 1,073       $ 6,328       $ 5,438  
                           
Basic earnings per share                          
Class A common stock       $ 0.62       $ 0.43       $ 2.58       $ 2.16  
Class B common stock       $ 1.02       $ 0.73       $ 4.26       $ 3.63  
Class C common stock       $ 2.48       $ 1.73       $ 10.33       $ 8.65  
                           
Basic weighted-average shares outstanding                          
Class A common stock         1,948         1,969         1,954         1,993  
Class B common stock         245         245         245         245  
Class C common stock         19         24         22         26  
                           
Diluted earnings per share                          
Class A common stock       $ 0.62       $ 0.43       $ 2.58       $ 2.16  
Class B common stock       $ 1.02       $ 0.72       $ 4.25       $ 3.62  
Class C common stock       $ 2.48       $ 1.72       $ 10.30       $ 8.62  
                           
Diluted weighted-average shares outstanding                  
Class A common stock         2,440         2,493         2,457         2,523  
Class B common stock         245         245         245         245  
Class C common stock         19         24         22         26  
                           
                     
VISA INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
         
        For the Years Ended September 30,
        2015     2014     2013
        (in millions)
Operating Activities                    
Net income       $ 6,328       $ 5,438       $ 4,980  
Adjustments to reconcile net income to net cash provided by operating activities:                    
Amortization of client incentives         2,861         2,592         2,321  
Fair value adjustment for the Visa Europe put option         110                  
Share-based compensation         187         172         179  
Excess tax benefit for share-based compensation         (84 )       (90 )       (74 )
Depreciation and amortization of property, equipment, technology and intangible assets         494         435         397  
Deferred income taxes         195         (580 )       1,527  
Litigation provision         14         453         3  
Other         24         37         50  
Change in operating assets and liabilities:                    
Settlement receivable         378         13         (345 )
Accounts receivable         (19 )       (53 )       (38 )
Client incentives         (2,970 )       (2,395 )       (2,336 )
Other assets         (41 )       (379 )       (506 )
Accounts payable         (13 )       (56 )       40  
Settlement payable         (552 )       107         506  
Accrued and other liabilities         118         513         702  
Accrued litigation         (446 )       998         (4,384 )
Net cash provided by operating activities         6,584         7,205         3,022  
                     
Investing Activities                    
Purchases of property, equipment, technology and intangible assets         (414 )       (553 )       (471 )
Proceeds from sales of property, equipment and technology         10                  
Investment securities, available-for-sale:                    
Purchases         (2,850 )       (2,572 )       (3,164 )
Proceeds from maturities and sales         1,925         2,342         2,440  
Acquisitions, net of cash received         (93 )       (149 )        
Purchases of / contributions to other investments         (25 )       (9 )       (3 )
Proceeds / distributions from other investments         12                 34  
Net cash used in investing activities         (1,435 )       (941 )       (1,164 )
                     
Financing Activities                    
Repurchase of class A common stock         (2,910 )       (4,118 )       (5,365 )
Dividends paid         (1,177 )       (1,006 )       (864 )
Deposits into litigation escrow account—retrospective responsibility plan                 (450 )        
Payments from (return to) litigation escrow account—retrospective responsibility plan         426         (999 )       4,383  
Cash proceeds from issuance of common stock under employee equity plans         82         91         108  
Restricted stock and performance-based shares settled in cash for taxes         (108 )       (86 )       (64 )
Excess tax benefit for share-based compensation         84         90         74  
Payments for earn-out related to PlaySpan acquisition                         (12 )
Principal payments on capital lease obligations                         (6 )
Net cash used in financing activities         (3,603 )       (6,478 )       (1,746 )
Effect of exchange rate changes on cash and cash equivalents         1         (1 )        
Increase (decrease) in cash and cash equivalents         1,547         (215 )       112  
Cash and cash equivalents at beginning of year         1,971         2,186         2,074  
Cash and cash equivalents at end of year       $ 3,518       $ 1,971       $ 2,186  
                     
Supplemental Disclosure                    
Income taxes paid, net of refunds       $ 2,486       $ 2,656       $ 595  
Accruals related to purchases of property, equipment, technology and intangible assets       $ 81       $ 62       $ 46  
                     
                               
VISA INC.
FISCAL 2015 AND 2014 QUARTERLY RESULTS OF OPERATIONS
(UNAUDITED)
                               
     

 

  Fiscal 2014
     

Fiscal 2015 Quarter Ended

  Quarter Ended
      September 30,   June 30,   March 31,   December 31,   September 30,
      2015   2015   2015   2014   2014
      (in millions)
Operating Revenues                              
Service revenues     $ 1,637       $ 1,550       $ 1,577       $ 1,538       $ 1,499  
Data processing revenues       1,429         1,400         1,340         1,383         1,348  
International transaction revenues       1,091         1,039         964         970         938  
Other revenues       216         199         204         204         212  
Client incentives       (802 )       (670 )       (676 )       (713 )       (768 )
Total operating revenues       3,571         3,518         3,409         3,382         3,229  
Operating Expenses                              
Personnel       521         566         483         509         496  
Marketing       253         224         190         205         241  
Network and processing       134         117         109         114         128  
Professional fees       107         82         77         70         94  
Depreciation and amortization       119         130         125         120         112  
General and administrative       143         137         141         126         153  
Litigation provision       11                 3                 453  
Total operating expenses       1,288         1,256         1,128         1,144         1,677  
Operating income       2,283         2,262         2,281         2,238         1,552  
Non-operating (expense) income               (94 )       1         24         (2 )
Income before income taxes       2,283         2,168         2,282         2,262         1,550  
Income tax provision       771         471         732         693         477  
Net income     $ 1,512       $ 1,697       $ 1,550       $ 1,569       $ 1,073  
                               
       
VISA INC.
RECONCILIATION OF NON-GAAP FINANCIAL RESULTS
(UNAUDITED)
       
Our financial results for fiscal 2015 and 2014 reflect the impact of significant items that we believe are not indicative of our operating performance in the prior or future years, as they either have no cash impact or are related to amounts covered by the retrospective responsibility plan. As such, we believe the presentation of adjusted financial results excluding the following amounts provides a clearer understanding of our operating performance for the periods presented.
 

Revaluation of Visa Europe put option. 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 in our financial results. This amount is not subject to income tax and therefore has no impact on our reported income tax provision.

 

Litigation provision. During fiscal 2014, we recorded a litigation provision of $450 million and related tax benefits associated with the interchange multidistrict litigation. The tax impact is determined by applying applicable federal and state tax rates to the litigation provision. Monetary liabilities from settlements of, or judgments in, the interchange multidistrict litigation will be paid from the litigation escrow account under the retrospective responsibility plan.

        Three Months Ended September 30,
                       

Diluted Earnings per

        Operating Expenses    

Operating Margin(1),(2)

    Net Income  

Share(2),(3)

        2015   2014     2015     2014     2015   2014   2015   2014
       

(in millions, except percentages and per share data)

As reported       $ 1,288     $ 1,677       64 %     48 %     $ 1,512     $ 1,073     $ 0.62     $ 0.43
Litigation provision               (450 )           14 %             283             0.11
As adjusted       $ 1,288     $ 1,227       64 %     62 %     $ 1,512     $ 1,356     $ 0.62     $ 0.54
Diluted weighted-average shares outstanding, as reported                                             2,440       2,493
                                                   
        Twelve Months Ended September 30,
                        Diluted Earnings per
        Operating Expenses    

Operating Margin(1),(2)

    Net income  

Share(2),(3)

        2015   2014     2015     2014     2015   2014   2015   2014
       

(in millions, except percentages and per share data)

As reported       $ 4,816     $ 5,005       65 %     61 %     $ 6,328     $ 5,438     $ 2.58     $ 2.16
Revaluation of Visa Europe put option                                   110             0.04      
Litigation provision               (450 )           4 %             283             0.11
As adjusted       $ 4,816     $ 4,555       65 %     64 %     $ 6,438     $ 5,721     $ 2.62     $ 2.27
Diluted weighted-average shares outstanding, as reported                                             2,457       2,523
(1) Operating margin is calculated as operating income divided by total operating revenues.
(2) Figures in the table may not recalculate exactly due to rounding. Operating margin and diluted earnings per share figures are calculated based on unrounded numbers.
(3) The per share amounts for the prior periods presented have been retroactively adjusted to reflect the four-for-one stock split effected in the fiscal second quarter of 2015.
 

Operational Performance Data

The tables below provide information regarding the available operational results for the 3 months ended September 30, 2015, as well as the prior four quarterly reporting periods and the 12 months ended September 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 September 30, 2015
      Total   Growth   Growth   Payments   Growth   Growth   Payments   Cash   Growth   Growth   Cash
     

Volume

  (Nominal   (Constant  

Volume

  (Nominal   (Constant   Transactions  

Volume

  (Nominal   (Constant   Transactions
     

($ billions)

  USD)   USD)  

($ billions)

  USD)   USD)   (millions)  

($ billions)

  USD)   USD)   (millions)
                                               
All Visa Credit & Debit                                              
Asia Pacific     $509   0.6%   11.0%   $371   5.5%   16.4%   4,664   $138   -10.4%   -1.3%   1,041
Canada     58   -11.9%   5.4%   54   -12.0%   5.2%   699   5   -10.7%   6.9%   12
CEMEA     231   -17.2%   9.3%   61   -9.4%   17.8%   1,923   170   -19.7%   6.5%   1,203
LAC     227   -17.7%   11.0%   85   -18.6%   13.3%   2,708   142   -17.2%   9.6%   1,093

US

    822   8.7%   8.7%   693   9.7%   9.7%   13,648   129   3.8%   3.8%   957
Visa Inc.     1,848   -1.9%   9.6%   1,265   3.9%   12.0%   23,643   584   -12.5%   4.7%   4,305
                                               
Visa Credit Programs                                              
US     $359   9.9%   9.9%   $345   10.2%   10.2%   4,221   $14   3.0%   3.0%   17

International

    491   -2.8%   14.0%   455   -0.5%   15.5%   6,214   36   -24.9%   -1.7%   164
Visa Inc.     850   2.2%   12.2%   800   3.8%   13.1%   10,436   50   -18.6%   -0.4%   182
                                               
Visa Debit Programs                                              
US     $463   7.9%   7.9%   $349   9.3%   9.3%   9,427   $114   3.9%   3.9%   939

International

    535   -14.0%   7.0%   116   -9.0%   12.8%   3,780   420   -15.3%   5.5%   3,184
Visa Inc.     999   -5.1%   7.4%   465   4.1%   10.1%   13,207   534   -11.8%   5.2%   4,124
                                               
                                           
      For the 3 Months Ended June 30, 2015
      Total   Growth   Growth   Payments   Growth   Growth   Payments   Cash   Growth   Growth   Cash  

 

 

 

     

Volume

  (Nominal   (Constant  

Volume

  (Nominal   (Constant   Transactions  

Volume

  (Nominal   (Constant   Transactions  

Accounts

 

Cards

     

($ billions)

  USD)   USD)  

($ billions)

  USD)   USD)   (millions)  

($ billions)

  USD)   USD)   (millions)  

(millions)

 

(millions)

                                                       
All Visa Credit & Debit                                                      
Asia Pacific     $510   4.3%   10.9%   $364   7.9%   15.3%   4,394   $145   -3.8%   1.1%   1,003   725   822
Canada     62   -5.0%   6.0%   57   -5.3%   5.7%   679   5   -2.5%   8.9%   12   42   49
CEMEA     238   -13.8%   7.3%   61   -6.0%   15.3%   1,783   177   -16.3%   4.8%   1,195   332   321
LAC     237   -10.9%   11.6%   89   -12.4%   12.5%   2,595   148   -10.0%   11.1%   1,072   420   451

US

    809   8.0%   8.0%   683   8.8%   8.8%   13,257   126   3.8%   3.8%   951   629   799
Visa Inc.     1,855   0.6%   9.1%   1,253   5.2%   11.0%   22,709   602   -7.9%   5.2%   4,232   2,147   2,442
                                                       
Visa Credit Programs                                                      
US     $352   11.3%   11.3%   $339   11.6%   11.6%   4,072   $13   3.6%   3.6%   16   246   323

International

    490   0.6%   12.9%   453   3.0%   14.5%   5,915   37   -21.7%   -3.8%   160   496   554
Visa Inc.     843   4.8%   12.2%   792   6.5%   13.3%   9,987   51   -16.3%   -1.9%   177   742   876
                                                       
Visa Debit Programs                                                      
US     $457   5.5%   5.5%   $344   6.1%   6.1%   9,185   $113   3.8%   3.8%   935   384   476

International

    555   -8.6%   7.4%   117   -4.7%   11.3%   3,537   438   -9.6%   6.4%   3,121   1,021   1,089
Visa Inc.     1,012   -2.7%   6.5%   461   3.1%   7.4%   12,722   551   -7.1%   5.9%   4,056   1,405   1,565
                                                       
                                           
      For the 3 Months Ended March 31, 2015
      Total   Growth   Growth   Payments   Growth   Growth   Payments   Cash   Growth   Growth   Cash  

 

 

 

     

Volume

  (Nominal   (Constant  

Volume

  (Nominal   (Constant   Transactions  

Volume

  (Nominal   (Constant   Transactions  

Accounts

 

Cards

     

($ billions)

  USD)   USD)  

($ billions)

  USD)   USD)   (millions)  

($ billions)

  USD)   USD)   (millions)  

(millions)

 

(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     212   -16.0%   11.8%   54   -8.2%   19.9%   1,615   158   -18.4%   9.3%   1,121   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%   12,206   120   4.3%   4.3%   890   621   789
Visa Inc.     1,751   1.2%   9.5%   1,168   5.4%   10.8%   21,044   583   -6.2%   7.0%   4,051   2,120   2,420
                                                       
Visa Credit Programs                                                      
US     $316   12.3%   12.3%   $303   12.3%   12.3%   3,623   $13   12.1%   12.1%   15   241   318

International

    463   0.0%   11.5%   428   2.7%   12.8%   5,533   35   -24.2%   -2.6%   153   489   546
Visa Inc.     779   4.6%   11.8%   731   6.4%   12.6%   9,156   48   -16.8%   1.0%   168   730   864
                                                       
Visa Debit Programs                                                      
US     $433   5.8%   5.8%   $325   6.5%   6.5%   8,583   $107   3.4%   3.4%   875   379   471

International

    540   -6.4%   9.4%   111   -3.6%   12.0%   3,306   429   -7.1%   8.7%   3,008   1,011   1,085
Visa Inc.     972   -1.3%   7.7%   437   3.8%   7.9%   11,889   536   -5.1%   7.6%   3,883   1,390   1,556
                                                       
                                       
      For the 3 Months Ended December 31, 2014
      Total   Growth   Growth   Payments   Growth   Growth   Payments   Cash   Growth   Growth   Cash  

 

 

 

     

Volume

  (Nominal   (Constant  

Volume

  (Nominal   (Constant   Transactions  

Volume

  (Nominal   (Constant   Transactions  

Accounts

 

Cards

     

($ billions)

  USD)   USD)  

($ billions)

  USD)   USD)   (millions)  

($ billions)

  USD)   USD)   (millions)  

(millions)

 

(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     264   -7.8%   15.7%   65   3.2%   26.6%   1,616   199   -10.9%   12.5%   1,213   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%   12,595   121   5.2%   5.2%   915   611   782
Visa Inc.     1,899   3.3%   10.4%   1,245   7.0%   11.4%   21,765   654   -3.1%   8.6%   4,243   2,090   2,402
                                                       
Visa Credit Programs                                                      
US     $341   13.7%   13.7%   $327   13.9%   13.9%   3,957   $13   9.2%   9.2%   16   236   313

International

    511   1.6%   11.0%   468   4.0%   12.2%   5,775   43   -18.3%   -0.4%   173   485   544
Visa Inc.     851   6.1%   12.1%   795   7.8%   12.9%   9,732   56   -13.1%   1.7%   189   721   857
                                                       
Visa Debit Programs                                                      
US     $431   6.2%   6.2%   $324   6.6%   6.6%   8,639   $108   4.7%   4.7%   899   375   469

International

    616   -2.2%   11.3%   127   2.6%   15.4%   3,394   490   -3.4%   10.3%   3,155   994   1,076
Visa Inc.     1,048   1.1%   9.1%   450   5.5%   9.0%   12,033   597   -2.0%   9.2%   4,054   1,369   1,545
                                                       
                                       
      For the 3 Months Ended September 30, 2014
      Total   Growth   Growth   Payments   Growth   Growth   Payments   Cash   Growth   Growth   Cash  

 

 

 

     

Volume

  (Nominal   (Constant  

Volume

  (Nominal   (Constant   Transactions  

Volume

  (Nominal   (Constant   Transactions  

Accounts

 

Cards

     

($ billions)

  USD)   USD)  

($ billions)

  USD)   USD)   (millions)  

($ billions)

  USD)   USD)   (millions)  

(millions)

 

(millions)

                                                       
All Visa Credit & Debit                                                      
Asia Pacific     $506   9.1%   9.1%   $352   11.9%   12.1%   4,000   $154   3.2%   2.9%   960   677   774
Canada     66   2.0%   7.4%   61   1.7%   7.0%   651   5   5.5%   11.0%   12   40   47
CEMEA     279   5.3%   15.2%   68   17.8%   25.6%   1,487   212   1.8%   12.1%   1,163   321   318
LAC     276   6.6%   12.2%   105   7.4%   13.3%   2,496   171   6.1%   11.6%   1,056   417   448

US

    756   9.2%   9.2%   632   9.9%   9.9%   12,314   124   6.0%   6.0%   952   587   754
Visa Inc.     1,884   7.9%   10.2%   1,217   10.2%   11.2%   20,947   667   4.0%   8.2%   4,143   2,041   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

    505   7.4%   10.1%   458   9.0%   11.2%   5,554   47   -6.0%   -0.5%   177   484   545
Visa Inc.     832   9.4%   11.2%   770   10.5%   11.9%   9,289   61   -2.5%   2.6%   194   714   850
                                                       
Visa Debit Programs                                                      
US     $429   6.7%   6.7%   $319   7.2%   7.2%   8,579   $110   5.3%   5.3%   935   357   450

International

    623   6.8%   11.8%   127   16.6%   20.6%   3,079   496   4.6%   9.7%   3,014   970   1,042
Visa Inc.     1,052   6.8%   9.4%   447   9.7%   10.2%   11,658   606   4.7%   8.7%   3,949   1,327   1,491
                                                       
       
      For the 12 Months Ended September 30, 2015
      Total   Growth   Growth   Payments   Growth   Growth   Payments   Cash   Growth   Growth  

Cash

     

Volume

  (Nominal   (Constant  

Volume

  (Nominal   (Constant   Transactions  

Volume

  (Nominal   (Constant  

Transactions

     

($ billions)

  USD)   USD)  

($ billions)

  USD)   USD)   (millions)  

($ billions)

  USD)   USD)  

(millions)

                                               
All Visa Credit & Debit                                              
Asia Pacific     $2,024   2.8%   9.6%   $1,438   6.0%   13.5%   17,337   $587   -4.2%   1.1%   4,003
Canada     240   -5.5%   6.8%   221   -5.7%   6.7%   2,651   19   -3.8%   8.9%   46
CEMEA     945   -13.6%   11.0%   241   -5.1%   19.9%   6,937   704   -16.2%   8.3%   4,732
LAC     993   -8.0%   12.5%   376   -8.3%   14.3%   10,529   616   -7.8%   11.4%   4,337

US

    3,152   8.6%   8.6%   2,655   9.5%   9.5%   51,706   496   4.3%   4.3%   3,713
Visa Inc.     7,354   0.8%   9.6%   4,931   5.4%   11.3%   89,160   2,422   -7.4%   6.4%   16,832
                                               
Visa Credit Programs                                              
US     $1,367   11.7%   11.7%   $1,313   11.9%   11.9%   15,873   $54   6.8%   6.8%   65

International

    1,955   -0.2%   12.3%   1,805   2.2%   13.7%   23,437   150   -22.1%   -2.1%   650
Visa Inc.     3,322   4.4%   12.1%   3,118   6.1%   13.0%   39,310   205   -16.1%   0.1%   715
                                               
Visa Debit Programs                                              
US     $1,784   6.3%   6.3%   $1,342   7.1%   7.1%   35,833   $442   4.0%   4.0%   3,649

International

    2,247   -7.8%   8.8%   471   -3.7%   12.9%   14,017   1,776   -8.8%   7.8%   12,468
Visa Inc.     4,031   -2.0%   7.7%   1,813   4.1%   8.6%   49,850   2,218   -6.5%   7.0%   16,117
                                               
       
      For the 12 Months Ended September 30, 2014
      Total   Growth   Growth   Payments   Growth   Growth   Payments   Cash   Growth   Growth   Cash  

 

 

 

     

Volume

  (Nominal   (Constant  

Volume

  (Nominal   (Constant   Transactions  

Volume

  (Nominal   (Constant   Transactions  

Accounts

 

Cards

     

($ billions)

  USD)   USD)  

($ billions)

  USD)   USD)   (millions)  

($ billions)

  USD)   USD)   (millions)  

(millions)

 

(millions)

                                                       
All Visa Credit & Debit                                                      
Asia Pacific     $1,968   7.7%   10.8%   $1,356   10.6%   13.5%   15,072   $612   1.9%   5.2%   3,638   677   774
Canada     254   0.8%   7.6%   234   0.8%   7.6%   2,439   20   0.6%   7.3%   46   40   47
CEMEA     1,094   6.0%   13.9%   254   18.9%   26.2%   5,363   840   2.6%   10.6%   4,637   321   318
LAC     1,079   0.6%   10.9%   410   2.3%   13.5%   9,776   668   -0.4%   9.4%   4,118   417   448

US

    2,902   8.6%   8.6%   2,426   9.3%   9.3%   47,270   476   5.3%   5.3%   3,668   587   754
Visa Inc.     7,297   6.4%   10.1%   4,680   9.0%   11.4%   79,920   2,617   2.1%   7.8%   16,108   2,041   2,341
                                                       
Visa Credit Programs                                                      
US     $1,224   11.1%   11.1%   $1,173   11.3%   11.3%   13,902   $51   6.1%   6.1%   64   230   304

International

    1,958   5.7%   10.8%   1,765   6.9%   11.8%   21,283   193   -4.0%   0.8%   733   484   545
Visa Inc.     3,182   7.7%   10.9%   2,938   8.6%   11.6%   35,185   244   -2.0%   2.1%   796   714   850
                                                       
Visa Debit Programs                                                      
US     $1,678   6.8%   6.8%   $1,253   7.4%   7.4%   33,368   $425   5.3%   5.3%   3,604   357   450

International

    2,437   4.5%   11.7%   489   15.7%   23.1%   11,367   1,948   2.0%   9.2%   11,707   970   1,042
Visa Inc.     4,115   5.4%   9.5%   1,742   9.6%   10.9%   44,735   2,373   2.5%   8.4%   15,312   1,327   1,491
                                                       

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.

           

 

    Growth   Growth
      (Nominal   (Constant

Period

    USD)   USD)
           

3 Months Ended

         
Sep 30, 2015     -4%   5%
Jun 30, 2015     0%   8%
Mar 31, 2015     2%   8%
Dec 31, 2014     4%   8%
Sep 30, 2014     9%   10%
           

12 Months Ended

         
Sep 30, 2015     0%   7%
Sep 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.

           

 

    Processed  

 

      Transactions    

Period

    (millions)  

Growth

           

3 Months Ended

         
Sep 30, 2015     18,365   8%
Jun 30, 2015     18,024   8%
Mar 31, 2015     16,980   11%
Dec 31, 2014     17,599   10%
Sep 30, 2014     16,991   10%
           

12 Months Ended

         
Sep 30, 2015     70,968   9%
Sep 30, 2014     64,993   11%
           

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:
Connie Kim, 212-521-3962
globalmedia@visa.com