Visa Inc. Reports Fiscal Second Quarter 2014 Net Income of $1.6 Billion or $2.52 per Diluted Share

4/24/2014


FOSTER CITY, Calif.--(BUSINESS WIRE)--Apr. 24, 2014-- Visa Inc. (NYSE:V) today announced financial results for the Company’s fiscal second quarter 2014. Net income for the quarter was $1.6 billion, an increase of 26% over the prior year, or $2.52 per share, an increase of 31% over the prior year. These results include a tax benefit of $218 million of which $201 million relates to prior periods. Excluding the prior periods’ impact, earnings per share was $2.20, an increase of 15% over the prior year. All references to earnings per share assume fully-diluted class A share count unless otherwise noted.

Net operating revenue in the fiscal second quarter of 2014 was $3.2 billion, an increase of 7% nominally or 9% on a constant dollar basis over the prior year, driven by solid growth in service revenues, data processing revenues and international transaction revenues. The strengthening of the U.S. dollar impacted net operating revenues by 2 percentage points of negative growth during the quarter.

“Our underlying business drivers remained strong during the fiscal second quarter with payments volume continuing to grow at solid levels,” said Charlie Scharf, Chief Executive Officer of Visa Inc. “As expected, softer net revenue growth was impacted by a strengthening U.S. dollar and difficult year-over-year comparisons due to non-recurring items. We expect this impact to be slightly more pronounced next quarter before rebounding in our fiscal fourth quarter, which will be more reflective of the fundamental strength of the business model. We continue to make substantial investments in products and services that will drive our future growth, while enhancing our financial institution and merchant client relationships.”

Fiscal Second Quarter 2014 Financial Highlights:

Payments volume growth, on a constant dollar basis, for the three months ended December 31, 2013, on which fiscal second quarter service revenue is recognized, was 12% over the prior year at $1.2 trillion.

Payments volume growth, on a constant dollar basis, for the three months ended March 31, 2014, was 12% over the prior year at $1.1 trillion.

Cross-border volume growth, on a constant dollar basis, was 8% for the three months ended March 31, 2014.

Total processed transactions, which represent transactions processed by VisaNet, for the three months ended March 31, 2014, were 15.4 billion, an 11% increase over the prior year.

Fiscal second quarter 2014 service revenues were $1.5 billion, an increase of 7% 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 7% over the prior year to $1.2 billion. International transaction revenues, which are driven by cross-border volume, grew 5% over the prior year to $871 million. Other revenues, which include the Visa Europe licensing fee, were $183 million, an increase of 5% over the prior year. Client incentives, which are a contra revenue item, were $587 million and represent 15.6% of gross revenues.

Total operating expenses were $1.1 billion for the quarter, a 2% increase over the prior year, primarily due to an increase in marketing spend to support the 2014 Sochi Winter Olympics and 2014 World Cup campaigns, offset by a reduction in personnel and professional fees.

The effective tax rate was 22.5% for the quarter ended March 31, 2014. This rate was positively impacted by a $218 million tax benefit recognized during the quarter related to a deduction for U.S. domestic production activities. This benefit was fully contemplated in the Company’s earnings per share guidance for fiscal full-year 2014.

Cash, cash equivalents, and available-for-sale investment securities were $6.5 billion at March 31, 2014.

The weighted-average number of diluted shares of class A common stock outstanding was 634 million for the quarter ended March 31, 2014.

Notable Events:

During the three months ended March 31, 2014, the Company repurchased 5.1 million shares of class A common stock, at an average price of $217.61 per share, using $1.1 billion of cash on hand. At March 31, 2014, the Company had $3.0 billion of remaining funds, authorized by the board of directors, available for share repurchase under the current program.

On April 23, 2014, the board of directors declared a quarterly cash dividend of $0.40 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 June 3, 2014, to all holders of record of the Company’s class A, class B and class C common stock as of May 16, 2014.

Financial Outlook:

Visa Inc. updates its financial outlook for the following metrics for fiscal full-year 2014:

  • Annual net revenue growth: Low double-digit constant revenue growth in the 10-11% range, with an expectation of two percentage points of negative foreign currency impact; and
  • Annual operating margin: Low to mid 60s.

Visa Inc. affirms its financial outlook for the following metrics for fiscal full-year 2014:

  • Client incentives as a percent of gross revenues: 16.5% to 17.5% range;
  • Annual diluted class A common stock earnings per share growth: Mid to high teens; and
  • Annual free cash flow: About $5 billion.

Visa Inc. provides its financial outlook for the following metric for fiscal full-year 2014:

  • Tax rate: Approaching 30%.

Fiscal Second Quarter 2014 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 https://investor.visa.com. A replay of the webcast will be available on the Visa Investor Relations website for 30 days. Investor information, including supplemental financial information, is available on Visa Inc.’s Investor Relations website at https://investor.visa.com.

About Visa

Visa 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 47,000 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, ahead of time with prepaid or 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 "believes," "estimates," "expects," "intends," "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, earnings per share, free cash flow, tax rate 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 payment 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 payment networks outside the United States; and
    • increased regulation on 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;
    • 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;
  • costs arising if Visa Europe were to exercise its right to require us to acquire all of its outstanding 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, 2013 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)
   

March 31,
2014

   

September 30,
2013

    (in millions, except par value data)
Assets          
Cash and cash equivalents   $ 1,820       $ 2,186  
Restricted cash—litigation escrow     1,105         49  
Investment securities:          
Trading     82         75  
Available-for-sale     1,592         1,994  
Income tax receivable     33         142  
Settlement receivable     752         799  
Accounts receivable     832         761  
Customer collateral     923         866  
Current portion of client incentives     255         282  
Deferred tax assets     850         481  
Prepaid expenses and other current assets     263         187  
                   
Total current assets     8,507         7,822  
           
Investment securities, available-for-sale     3,066         2,760  
Client incentives     89         89  
Property, equipment and technology, net     1,760         1,732  
Other assets     843         521  
Intangible assets, net     11,317         11,351  
Goodwill     11,681         11,681  
                   
Total assets   $ 37,263       $ 35,956  
           
Liabilities          
Accounts payable   $ 114       $ 184  
Settlement payable     1,099         1,225  
Customer collateral     923         866  
Accrued compensation and benefits     356         523  
Client incentives     827         919  
Accrued liabilities     582         613  
Accrued litigation     1,060         5  
                   
Total current liabilities     4,961         4,335  
           
Deferred tax liabilities     4,146         4,149  
Other liabilities     861         602  
                   
Total liabilities     9,968         9,086  
           
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, 500 and 508 shares issued and outstanding at March 31, 2014 and September 30, 2013, respectively    

         
Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at March 31, 2014 and September 30, 2013              
Class C common stock, $0.0001 par value, 1,097 shares authorized, 26 and 27 shares issued and outstanding at March 31, 2014 and September 30, 2013, respectively              
Additional paid-in capital     18,555         18,875  
Accumulated income     8,714         7,974  
Accumulated other comprehensive income (loss), net:          
Investment securities, available-for-sale     77         59  
Defined benefit pension and other postretirement plans     (68 )       (60 )
Derivative instruments classified as cash flow hedges     18         23  
Foreign currency translation adjustments     (1 )       (1 )
                   
Total accumulated other comprehensive income, net     26         21  
                   
Total equity     27,295         26,870  
                   
Total liabilities and equity   $ 37,263       $ 35,956  
                   
VISA INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
                       
   

Three Months Ended
March 31,

   

Six Months Ended
March 31,

    2014     2013     2014     2013
    (in millions, except per share data)
Operating Revenues                      
Service revenues   $ 1,462       $ 1,369       $ 2,881       $ 2,669  
Data processing revenues     1,234         1,150         2,498         2,265  
International transaction revenues     871         831         1,762         1,636  
Other revenues     183         175         363         354  
Client incentives     (587 )       (567 )       (1,186 )       (1,120 )
                                       
Total operating revenues     3,163         2,958         6,318         5,804  
                                       
Operating Expenses                      
Personnel     446         486         916         940  
Marketing     245         195         431         388  
Network and processing     120         119         252         229  
Professional fees     77         91         152         179  
Depreciation and amortization     107         98         214         190  
General and administrative     120         108         228         214  
Litigation provision             1                 4  
                                       
Total operating expenses     1,115         1,098         2,193         2,144  
                                       
Operating income     2,048         1,860         4,125         3,660  
                                       
Non-operating income (expense)     13         (3 )       19         (2 )
                                       
Income before income taxes     2,061         1,857         4,144         3,658  
                                       
Income tax provision     463         587         1,139         1,095  
                                       
Net income   $ 1,598       $ 1,270       $ 3,005       $ 2,563  
                       
Basic earnings per share                      
Class A common stock   $ 2.53       $ 1.93       $ 4.74       $ 3.87  
                                       
Class B common stock   $ 1.06       $ 0.81       $ 1.99       $ 1.63  
                                       
Class C common stock   $ 2.53       $ 1.93       $ 4.74       $ 3.87  
                       
Basic weighted-average shares outstanding                      
Class A common stock     501         524         503         528  
                                       
Class B common stock     245         245         245         245  
                                       
Class C common stock     26         28         26         29  
                       
Diluted earnings per share                      
Class A common stock   $ 2.52       $ 1.92       $ 4.72       $ 3.86  
                                       
Class B common stock   $ 1.06       $ 0.81       $ 1.99       $ 1.62  
                                       
Class C common stock   $ 2.52       $ 1.92       $ 4.72       $ 3.86  
                       
Diluted weighted-average shares outstanding                      
Class A common stock     634         660         636         665  
                                       
Class B common stock     245         245         245         245  
                                       
Class C common stock     26         28         26         29  
                                       
VISA INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
    Six Months Ended March 31,
    2014     2013
    (in millions)
Operating Activities          
Net income   $ 3,005       $ 2,563  
Adjustments to reconcile net income to net cash provided by (used in) operating activities:          
Amortization of client incentives     1,186         1,120  
Share-based compensation     89         98  
Excess tax benefit for share-based compensation     (68 )       (56 )
Depreciation and amortization of property, equipment, technology and intangible assets     214         190  
Deferred income taxes     (375 )       1,580  
Other     12         35  
Change in operating assets and liabilities:          
Income tax receivable     109         (984 )
Settlement receivable     47         (34 )
Accounts receivable     (71 )       (79 )
Client incentives     (1,251 )       (1,108 )
Other assets     (459 )       (327 )
Accounts payable     (68 )       (15 )
Settlement payable     (126 )       3  
Accrued and other liabilities     171         218  
Accrued litigation     1,055         (4,384 )
                   
Net cash provided by (used in) operating activities     3,470         (1,180 )
           
Investing Activities          
Purchases of property, equipment, technology and intangible assets     (217 )       (211 )
Investment securities, available-for-sale:          
Purchases     (1,292 )       (1,854 )
Proceeds from sales and maturities     1,406         1,616  
Purchases of / contributions to other investments     (3 )       (3 )
Proceeds / distributions from other investments    

        3  
                   
Net cash used in investing activities     (106 )       (449 )
           
Financing Activities          
Repurchase of class A common stock     (2,210 )       (3,073 )
Dividends paid     (507 )       (437 )
(Return to) payments from litigation escrow account—retrospective responsibility plan     (1,056 )       4,383  
Cash proceeds from exercise of stock options     58         84  
Restricted stock and performance shares settled in cash for taxes     (83 )       (64 )
Excess tax benefit for share-based compensation     68         56  

Payment for earn-out related to PlaySpan acquisition

   

        (12 )
Principal payments on capital lease obligations    

        (5 )
                   
Net cash (used in) provided by financing activities     (3,730 )       932  
                   
Decrease in cash and cash equivalents     (366 )       (697 )
Cash and cash equivalents at beginning of year     2,186         2,074  
                   
Cash and cash equivalents at end of period   $ 1,820       $ 1,377  
           
Supplemental Disclosure          
Income taxes paid, net of refunds   $ 1,392       $ 421  
Non-cash accruals related to purchases of property, equipment, technology and intangible assets   $ 27       $ 41  
                   
VISA INC.
FISCAL 2014 AND 2013 QUARTERLY RESULTS OF OPERATIONS
(UNAUDITED)
                             
    Fiscal 2014 Quarter Ended     Fiscal 2013 Quarter Ended
   

March 31,
2014

   

December 31,
2013

   

September 30,
2013

   

June 30,
2013

 

 

March 31,
2013

    (in millions)
Operating Revenues                            
Service revenues   $ 1,462       $ 1,419       $ 1,385       $ 1,298       $ 1,369  
Data processing revenues     1,234         1,264         1,186         1,191         1,150  
International transaction revenues     871         891         899         854         831  
Other revenues     183         180         183         179         175  
Client incentives     (587 )       (599 )       (680 )       (521 )       (567 )
                                                 
Total operating revenues     3,163         3,155         2,973         3,001         2,958  
                                                 
Operating Expenses                            
Personnel     446         470         499         493         486  
Marketing     245         186         236         252         195  
Network and processing     120         132         122         117         119  
Professional fees     77         75         130         103         91  
Depreciation and amortization     107         107         106         101         98  
General and administrative     120         108         129         108         108  
Litigation provision                             (1 )       1  
                                                 
Total operating expenses     1,115         1,078         1,222         1,173         1,098  
                                                 
Operating income     2,048         2,077         1,751         1,828         1,860  
                                                 
Non-operating income (expense)     13         6         15         5         (3 )
                                                 
Income before income taxes     2,061         2,083         1,766         1,833         1,857  
                                                 

Income tax provision

   

463

       

676

       

574

       

608

       

587

 
                                                 
Net income   $ 1,598       $ 1,407       $ 1,192       $ 1,225       $ 1,270  
                                                 

Operational Performance Data

The tables below provide information regarding the available operational results for the 3 months ended March 31, 2014, as well as the prior four quarterly reporting periods and the 12 months ended March 31, 2014 and 2013, for cards carrying the Visa, Visa Electron and Interlink brands. Also included is a table with information on the number of billable transactions processed on Visa Inc.’s CyberSource network.

1. Branded Volume and Transactions

The tables present 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 March 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)

                                             
All Visa Credit & Debit                                            
Asia Pacific   $479   6.6%   11.0%   $328   11.0%   15.0%   3,556   $151   -1.9%   3.2%   853
Canada   56   0.4%   9.8%   52   0.4%   9.8%   548   5   1.0%   10.4%   11
CEMEA   252   4.1%   14.1%   59   16.6%   28.1%   1,223   193   0.8%   10.4%   1,085
LAC   250   -4.5%   11.6%   95   -3.7%   14.3%   2,372   155   -5.1%   10.0%   985

US

  690   7.9%   7.9%   575   8.5%   8.5%   11,134   115   5.0%   5.0%   875
Visa Inc.   1,727   4.7%   10.2%   1,108   8.0%   11.8%   18,834   619   -0.7%   7.5%   3,810
                                             
Visa Credit Programs                                            
US   $281   10.2%   10.2%   $269   10.6%   10.6%   3,148   $12   1.4%   1.4%   14

International

  463   4.9%   12.3%   418   6.0%   13.3%   5,051   46   -3.9%   4.1%   176
Visa Inc.   744   6.9%   11.5%   687   7.8%   12.2%   8,200   57   -2.9%   3.5%   191
                                             
Visa Debit Programs                                            
US   $408   6.4%   6.4%   $305   6.7%   6.7%   7,986   $103   5.5%   5.5%   861

International

  574   1.0%   11.4%   116   13.4%   25.2%   2,648   459   -1.7%   8.4%   2,758
Visa Inc.   983   3.2%   9.3%   421   8.5%   11.2%   10,634   562   -0.4%   7.9%   3,619
                                             
    For the 3 Months Ended December 31, 2013        
   

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   $493   7.5%   12.6%   $339   8.3%   14.1%   3,677   $154   5.8%   9.5%   890   622   721
Canada   66   -0.1%   5.5%   62   -0.2%   5.5%   609   5   0.3%   6.0%   11   33   43
CEMEA   286   9.4%   13.3%   62   23.2%   28.7%   1,233   223   6.0%   9.6%   1,176   295   300
LAC   287   1.9%   10.8%   110   5.5%   15.9%   2,506   177   -0.2%   7.8%   1,066   407   437

US

  704   7.6%   7.6%   591   8.4%   8.4%   11,566   114   3.3%   3.3%   884   564   728
Visa Inc.   1,837   6.6%   10.2%   1,164   8.3%   11.5%   19,590   673   3.8%   8.0%   4,027   1,921   2,229
                                                     
Visa Credit Programs                                                    
US   $300   9.3%   9.3%   $288   9.6%   9.6%   3,439   $12   2.6%   2.6%   16   216   288

International

  502   5.1%   11.5%   450   5.7%   12.4%   5,293   53   0.4%   4.1%   196   472   531
Visa Inc.   802   6.6%   10.7%   737   7.2%   11.3%   8,732   65   0.8%   3.8%   213   688   819
                                                     
Visa Debit Programs                                                    
US   $405   6.3%   6.3%   $303   7.4%   7.4%   8,127   $102   3.4%   3.4%   868   349   439

International

  630   6.7%   12.2%   124   18.1%   24.7%   2,731   506   4.2%   9.5%   2,947   885   970
Visa Inc.   1,035   6.6%   9.8%   427   10.3%   11.9%   10,858   608   4.1%   8.4%   3,815   1,233   1,410
                                                     
    For the 3 Months Ended September 30, 2013        
   

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   $464   8.2%   13.6%   $314   8.5%   14.7%   3,558   $150   7.5%   11.2%   854   610   710
Canada   65   4.6%   9.4%   60   4.8%   9.6%   602   5   2.3%   7.0%   12   32   41
CEMEA   265   12.2%   16.1%   57   26.8%   32.7%   1,121   207   8.8%   12.2%   1,120   290   294
LAC   259   1.6%   11.8%   98   4.4%   16.0%   2,348   161   0.0%   9.4%   998   403   431

US

  692   9.3%   9.3%   575   10.3%   10.3%   11,400   117   4.8%   4.8%   932   546   713
Visa Inc.   1,745   8.0%   11.8%   1,105   9.6%   13.0%   19,029   640   5.4%   9.8%   3,916   1,880   2,189
                                                     
Visa Credit Programs                                                    
US   $290   10.9%   10.9%   $277   11.0%   11.0%   3,324   $12   8.2%   8.2%   16   210   285

International

  470   6.3%   12.9%   420   6.9%   14.0%   5,138   50   1.8%   5.1%   196   468   526
Visa Inc.   760   8.0%   12.2%   697   8.5%   12.8%   8,462   63   3.0%   5.7%   212   678   811
                                                     
Visa Debit Programs                                                    
US   $402   8.2%   8.2%   $298   9.6%   9.6%   8,076   $104   4.4%   4.4%   916   335   428

International

  582   7.9%   13.9%   109   17.7%   24.9%   2,491   473   5.9%   11.6%   2,788   867   949
Visa Inc.   984   8.0%   11.5%   407   11.7%   13.3%   10,567   577   5.6%   10.3%   3,704   1,202   1,377
                                                     
    For the 3 Months Ended June 30, 2013        
   

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   $456   10.6%   13.2%   $304   9.7%   13.7%   3,354   $152   12.4%   12.2%   818   592   692
Canada   64   5.1%   5.8%   59   5.5%   6.2%   568   5   0.7%   1.3%   11   31   40
CEMEA   263   13.4%   15.7%   55   28.1%   32.0%   1,047   208   10.0%   12.0%   1,147   291   289
LAC   270   9.4%   12.5%   101   13.1%   17.7%   2,305   169   7.4%   9.6%   975   401   430

US

  686   10.4%   10.4%   571   11.3%   11.3%   11,217   115   5.8%   5.8%   906   538   702
Visa Inc.   1,739   10.5%   12.0%   1,089   11.4%   13.2%   18,491   650   9.0%   10.2%   3,857   1,853   2,153
                                                     
Visa Credit Programs                                                    
US   $282   10.1%   10.1%   $270   10.0%   10.0%   3,187   $12   11.6%   11.6%   15   206   280

International

  463   8.2%   11.8%   412   8.7%   12.7%   4,915   51   4.2%   5.3%   199   466   525
Visa Inc.   745   8.9%   11.2%   682   9.3%   11.6%   8,102   63   5.5%   6.4%   214   672   805
                                                     
Visa Debit Programs                                                    
US   $403   10.6%   10.6%   $300   12.5%   12.5%   8,030   $103   5.2%   5.2%   891   332   422

International

  591   12.6%   14.2%   107   23.9%   26.1%   2,359   484   10.4%   11.8%   2,752   848   926
Visa Inc.   994   11.8%   12.7%   407   15.3%   15.8%   10,389   587   9.4%   10.6%   3,643   1,180   1,348
                                                     
    For the 3 Months Ended March 31, 2013        
   

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   $449   10.1%   12.3%   $295   9.9%   13.1%   3,116   $154   10.6%   10.7%   755   581   682
Canada   56   0.3%   0.5%   51   1.3%   1.5%   489   5   -9.5%   -9.3%   10   29   38
CEMEA   242   15.2%   17.2%   50   28.1%   31.3%   932   192   12.3%   13.9%   1,070   278   277
LAC   262   5.0%   12.0%   99   8.5%   17.1%   2,240   164   2.9%   9.2%   926   402   431

US

  639   3.5%   3.5%   530   4.3%   4.3%   10,358   110   0.0%   0.0%   847   535   700
Visa Inc.   1,649   7.0%   8.7%   1,026   7.1%   8.6%   17,135   623   6.8%   8.9%   3,608   1,825   2,128
                                                     
Visa Credit Programs                                                    
US   $255   9.2%   9.2%   $244   9.1%   9.1%   2,843   $12   13.3%   13.3%   14   206   278

International

  441   7.1%   10.3%   394   7.7%   11.4%   4,582   48   2.0%   1.7%   181   462   522
Visa Inc.   697   7.9%   9.9%   638   8.2%   10.4%   7,425   59   4.1%   3.9%   196   668   801
                                                     
Visa Debit Programs                                                    
US   $384   0.0%   0.0%   $286   0.5%   0.5%   7,516   $98   -1.4%   -1.4%   832   329   421

International

  568   11.1%   14.5%   102   21.2%   25.9%   2,195   466   9.1%   12.3%   2,580   828   906
Visa Inc.   952   6.4%   7.8%   388   5.3%   5.7%   9,711   564   7.1%   9.4%   3,412   1,157   1,327
                                                     
    For the 12 Months Ended March 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)

                                             
All Visa Credit & Debit                                            
Asia Pacific   $1,892   8.1%   12.6%   $1,285   9.3%   14.4%   14,145   $607   5.7%   8.9%   3,414
Canada   252   2.5%   7.5%   232   2.6%   7.6%   2,327   20   1.1%   5.9%   45
CEMEA   1,066   9.7%   14.7%   234   23.4%   30.3%   4,623   832   6.4%   11.0%   4,529
LAC   1,066   2.0%   11.6%   403   4.6%   16.0%   9,532   663   0.4%   9.1%   4,024

US

  2,772   8.8%   8.8%   2,311   9.6%   9.6%   45,317   461   4.7%   4.7%   3,598
Visa Inc.   7,048   7.4%   11.0%   4,466   9.3%   12.4%   75,943   2,582   4.3%   8.8%   15,610
                                             
Visa Credit Programs                                            
US   $1,153   10.1%   10.1%   $1,105   10.3%   10.3%   13,098   $48   5.8%   5.8%   62

International

  1,899   6.1%   12.1%   1,699   6.8%   13.1%   20,397   200   0.7%   4.6%   767
Visa Inc.   3,051   7.6%   11.4%   2,804   8.1%   12.0%   33,496   248   1.6%   4.9%   829
                                             
Visa Debit Programs                                            
US   $1,619   7.8%   7.8%   $1,206   9.0%   9.0%   32,219   $412   4.6%   4.6%   3,536

International

  2,377   6.9%   12.9%   456   18.1%   25.2%   10,229   1,922   4.6%   10.3%   11,245
Visa Inc.   3,996   7.3%   10.8%   1,662   11.3%   13.0%   42,448   2,334   4.6%   9.3%   14,781
                                             
    For the 12 Months Ended March 31, 2013        
   

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   $1,750   9.5%   11.1%   $1,176   10.4%   12.0%   12,498   $574   7.7%   9.3%   2,853   581   682
Canada   246   3.8%   4.4%   226   4.4%   5.0%   2,091   20   -2.6%   -1.8%   43   29   38
CEMEA   972   14.7%   19.5%   189   26.7%   32.8%   3,380   782   12.1%   16.7%   4,375   278   277
LAC   1,045   3.6%   14.7%   385   6.7%   19.2%   8,863   660   1.9%   12.2%   3,849   402   431

US

  2,548   1.7%   1.7%   2,108   1.8%   1.8%   41,358   440   1.4%   1.4%   3,501   535   700
Visa Inc.   6,561   5.9%   8.4%   4,085   5.7%   7.2%   68,190   2,476   6.2%   10.6%   14,621   1,825   2,128
                                                     
Visa Credit Programs                                                    
US   $1,047   9.3%   9.3%   $1,002   9.7%   9.7%   11,833   $46   1.3%   1.3%   61   206   278

International

  1,789   7.4%   10.4%   1,591   8.7%   11.9%   18,505   198   -1.4%   0.1%   759   462   522
Visa Inc.   2,836   8.1%   10.0%   2,592   9.1%   11.0%   30,338   244   -0.9%   0.4%   820   668   801
                                                     
Visa Debit Programs                                                    
US   $1,501   -3.0%   -3.0%   $1,107   -4.5%   -4.5%   29,525   $394   1.4%   1.4%   3,440   329   421

International

  2,223   9.8%   16.1%   386   17.4%   24.4%   8,328   1,837   8.3%   14.5%   10,361   828   906
Visa Inc.   3,724   4.2%   7.3%   1,493   0.3%   1.3%   37,852   2,232   7.0%   11.8%   13,802   1,157   1,327
                                                     

Footnote

The preceding 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.

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.

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.

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

                   
Mar 31, 2014       5%         8%  
Dec 31, 2013       11%         12%  
Sep 30, 2013       9%         11%  
Jun 30, 2013       11%         11%  
Mar 31, 2013       10%         10%  
                     

12 Months Ended

                   
Mar 31, 2014       9%         10%  
Mar 31, 2013       9%         11%  
                     

3. Visa Processed Transactions

The table below represents transactions involving Visa, Visa Electron, Interlink and PLUS cards processed on Visa’s networks. CyberSource transactions are not included in this table, and are reported in the next section.

Period      

Processed
Transactions
(millions)

      Growth
                     

3 Months Ended

                   
Mar 31, 2014       15,354         11%  
Dec 31, 2013       15,985         13%  
Sep 30, 2013       15,491         14%  
Jun 30, 2013       14,972         14%  
Mar 31, 2013       13,850         6%  
                     

12 Months Ended

                   
Mar 31, 2014       61,802         13%  
Mar 31, 2013       54,695         3%  
                     

4. CyberSource Transactions

The table below represents billable transactions processed on Visa Inc.’s CyberSource network.

Period      

Billable
Transactions
(millions)

      Growth
                     

3 Months Ended

                   
Mar 31, 2014       1,859         16%  
Dec 31, 2013       1,894         20%  
Sep 30, 2013       1,696         24%  
Jun 30, 2013       1,648         27%  
Mar 31, 2013       1,608         25%  
                     

12 Months Ended

                   
Mar 31, 2014       7,098         21%  
Mar 31, 2013       5,854         26%  

 

Source: Visa Inc.

Visa Inc.
Investor Relations:
Jack Carsky or Victoria Hyde-Dunn, 650-432-7644
ir@visa.com
Media Relations:
Paul Cohen, 650-432-2990
globalmedia@visa.com