Visa Inc. Reports Strong Fiscal Fourth Quarter Adjusted Earnings Per Share Growth of 17% and Full-Year 2014 Adjusted Earnings Per Share Growth of 19% and Announces a New $5.0 Billion Share Repurchase Program

10/29/2014


  • Adjusted quarterly net income of $1.4 billion or $2.18 per diluted class A common share, excluding special item, an increase of 14% and 17% over the prior year, respectively
  • Adjusted full-year 2014 net income of $5.7 billion or $9.07 per diluted class A common share, excluding special item, an increase of 15% and 19% over the prior year, respectively
  • GAAP quarterly net income of $1.1 billion or $1.72 per diluted class A common share, including special item, a decrease of 10% and 7% over the prior year, respectively
  • GAAP full-year 2014 net income of $5.4 billion or $8.62 per diluted class A common share, including special item, an increase of 9% and 14% over the prior year, respectively
  • The Company authorized a new $5.0 billion repurchase program, in addition to the previously announced 20% quarterly dividend increase

FOSTER CITY, Calif.--(BUSINESS WIRE)--Oct. 29, 2014-- Visa Inc. (NYSE: V) today announced financial results for the Company’s fiscal fourth quarter and full-year 2014. GAAP net income in the fiscal fourth quarter of 2014 was $1.1 billion or $1.72 per share, a decrease of 10% and 7% over the prior year, respectively. GAAP net income for the full-year 2014 was $5.4 billion or $8.62 per share, an increase of 9% and 14% over the prior year, respectively. All references to earnings per share assume fully-diluted class A share count unless otherwise noted.

On an adjusted basis, the Company’s financial results excluded the impact of a special item related to amounts covered by the retrospective responsibility plan of $450 million and related tax benefit during the fiscal fourth quarter. On an adjusted basis, net income in the fiscal fourth quarter was $1.4 billion or $2.18 per share, an increase of 14% and 17% over the prior year, respectively. On an adjusted basis, net income for the full-year 2014 was $5.7 billion or $9.07 per share, an increase of 15% and 19% over the prior year, respectively.

GAAP net operating revenue in the fiscal fourth quarter of 2014 was $3.2 billion, an increase of 9% nominally or 10% 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 about 1.5 percentage points.

GAAP net operating revenue for the full-year 2014 was $12.7 billion, an increase of 8% nominally or 10% on a constant dollar basis over the prior year, driven by solid revenue growth contributions from service and data processing revenues. The strengthening of the U.S. dollar versus the prior year negatively impacted net operating revenue growth by about 2 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.

"Our enviable competitive position, strong business model, and great talent helped us deliver adjusted EPS growth of 17% for the fourth quarter and 19% for the full year in the face of continued tepid economic growth and a strengthening dollar. More importantly, the underlying metrics which will drive our revenue growth over the longer term are strong and getting stronger," said Charlie Scharf, Chief Executive Officer of Visa Inc. "Our partnerships are growing, our capabilities are improving, and the opportunity for Visa to disintermediate cash across the globe is bigger than ever. Our investments in Visa Checkout, Visa Token Services, and Visa Digital Solutions are just beginning to have an impact in the marketplace. We will continue to invest in these and other areas and remain confident in our ability to capture the growing opportunity in payments."

Fiscal Fourth Quarter 2014 Financial Highlights:

Payments volume growth, on a constant dollar basis, for the three months ended June 30, 2014, on which fiscal fourth 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 September 30, 2014, was 11% over the prior year at $1.2 trillion.

Cross-border volume growth, on a constant dollar basis, was 10% for the three months ended September 30, 2014.

Total processed transactions, which represent transactions processed by VisaNet, for the three months ended September 30, 2014, were 16.9 billion, a 9% increase over the prior year.

Fiscal fourth quarter 2014 service revenues were $1.5 billion, an increase of 8% 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 14% over the prior year to $1.3 billion. International transaction revenues grew 4% over the prior year to $938 million. Other revenues, which include the Visa Europe licensing fee, were $212 million, a 16% increase over the prior year. Client incentives, which are a contra revenue item, were $768 million and represent 19.2% of gross revenues.

The Company recorded a $450 million pre-tax litigation provision, or $283 million on an after-tax basis, in the fiscal fourth quarter of 2014 related to the interchange multidistrict litigation case.

Excluding the covered litigation provision, total adjusted operating expenses were $1.2 billion for fiscal fourth quarter 2014, flat over the prior year results, primarily related to a reduction in professional fees offset by increases in general and administrative costs and other corporate expenses to support the Company’s global business growth initiatives.

GAAP effective tax rate was 30.8% for the quarter ended September 30, 2014.

The weighted-average number of diluted class A common shares outstanding in the fiscal fourth quarter was 623 million.

Cash, cash equivalents, and available-for-sale investment securities were $6.9 billion at September 30, 2014.

Fiscal Full-Year 2014 Financial Highlights:

For the fiscal full-year 2014, service revenues were $5.8 billion, an increase of 8% over the prior year. Data processing revenues rose 11% over the prior year to $5.2 billion. International transaction revenues, which are driven by cross-border volume, grew 5% over the prior year to $3.6 billion. Other revenues, which include the Visa Europe licensing fee, were $770 million, a 7% increase over the prior year. Client incentives, which are a contra revenue item, were $2.6 billion and represent 16.9% of gross revenues.

Total processed transactions, which represent transactions processed by VisaNet for the twelve months ended September 30, 2014, totaled 64.9 billion, an 11% increase over the prior year.

Excluding the aforementioned litigation provision, total adjusted operating expenses were $4.6 billion for the twelve months ended September 30, 2014, flat over the prior year adjusted results, primarily related to a reduction in professional fees and personnel, offset by continued investments in infrastructure, technology and network processing to support the Company’s global growth initiatives.

GAAP effective tax rate was 29.6% for the twelve months ended September 30, 2014.

The weighted-average number of diluted class A common shares outstanding for the full year was 631 million.

Notable Events:

During the three months ended September 30, 2014, total as-converted class A common stock was reduced by 5.7 million shares which was funded from $1.2 billion of our operating cash on hand. Of the $1.2 billion, $756 million was used to repurchase 3.6 million shares of class A common stock in the open market, at an average price of $211.19. In addition, we deposited $450 million from our operating cash into the litigation escrow account previously established under the retrospective responsibility plan. This deposit has the same economic effect on earnings per share as repurchasing the Company's class A common stock as it reduces the as-converted class B common stock share count.

During the twelve months ended September 30, 2014, total as-converted class A common stock was reduced by 21.8 million shares, at an average price of $209.15 per share, using $4.6 billion of cash on hand. Of the $4.6 billion, $4.1 billion was used to repurchase shares of class A common stock in the open market at an average price of $208.50. At September 30, 2014, the Company had $682 million of remaining funds, authorized by the board of directors, available for share repurchase under the current program.

As announced on October 22, 2014, the Board of Directors declared a quarterly dividend in the aggregate amount of $0.48 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 2, 2014, to all holders of record of the Company’s class A, class B and class C common stock as of November 14, 2014.

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 2015:

  • Annual net revenue growth: Constant dollar revenue growth of low double digits, with an expectation of two 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 diluted class A common stock earnings per share growth: Mid teens; and
  • Annual free cash flow greater than $6 billion.

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

Fiscal Fourth 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 http://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 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 "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, 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 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;

• 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;

• 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. Additional information will also be available in our Annual Report on Form 10-K for the year ended September 30, 2014. 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,
2014

 

September 30,
2013

         
    (in millions, except par value data)
Assets        
Cash and cash equivalents   $ 1,971     $ 2,186  
Restricted cash—litigation escrow     1,498       49  
Investment securities:        
Trading     69       75  
Available-for-sale     1,910       1,994  
Income tax receivable     91       142  
Settlement receivable     786       799  
Accounts receivable     822       761  
Customer collateral     961       866  
Current portion of client incentives     210       282  
Deferred tax assets     1,028       481  
Prepaid expenses and other current assets     216       187  
         
Total current assets     9,562       7,822  
         
Investment securities, available-for-sale     3,015       2,760  
Client incentives     81       89  
Property, equipment and technology, net     1,892       1,732  
Other assets     855       521  
Intangible assets, net     11,411       11,351  
Goodwill     11,753       11,681  
         
Total assets   $ 38,569     $ 35,956  
         
Liabilities        
Accounts payable   $ 147     $ 184  
Settlement payable     1,332       1,225  
Customer collateral     961       866  
Accrued compensation and benefits     450       523  
Client incentives     1,036       919  
Accrued liabilities     624       613  
Accrued litigation     1,456       5  
         
Total current liabilities     6,006       4,335  
         
Deferred tax liabilities     4,145       4,149  
Other liabilities     1,005       602  
         
Total liabilities     11,156       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, 495 and 508 shares issued and outstanding at September 30, 2014 and 2013, respectively            
Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at September 30, 2014 and 2013            
Class C common stock, $0.0001 par value, 1,097 shares authorized, 22 and 27 shares issued and outstanding at September 30, 2014 and 2013, respectively            
Additional paid-in capital     18,299       18,875  
Accumulated income     9,131       7,974  
Accumulated other comprehensive (loss) income, net:        
Investment securities, available-for-sale     31       59  
Defined benefit pension and other postretirement plans     (84 )     (60 )
Derivative instruments classified as cash flow hedges     38       23  
Foreign currency translation adjustments     (2 )     (1 )
         
Total accumulated other comprehensive (loss) income, net     (17 )     21  
         
Total equity     27,413       26,870  
         
Total liabilities and equity   $ 38,569     $ 35,956  
                 
 
VISA INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
                 
   

Three Months Ended
September 30,

 

Twelve Months Ended
September 30,

    2014   2013   2014   2013
                 
    (in millions, except per share data)
Operating Revenues                
Service revenues   $ 1,499     $ 1,385     $ 5,797     $ 5,352  
Data processing revenues     1,348       1,186       5,167       4,642  
International transaction revenues     938       899       3,560       3,389  
Other revenues     212       183       770       716  
Client incentives     (768 )     (680 )     (2,592 )     (2,321 )
                 
Total operating revenues     3,229       2,973       12,702       11,778  
                 
Operating Expenses                
Personnel     496       499       1,875       1,932  
Marketing     241       236       900       876  
Network and processing     128       122       507       468  
Professional fees     94       130       328       412  
Depreciation and amortization     112       106       435       397  
General and administrative     153       129       507       451  
Litigation provision     453             453       3  
                 
Total operating expenses     1,677       1,222       5,005       4,539  
                 
Operating income     1,552       1,751       7,697       7,239  
                 
Non-operating (expense) income     (2 )     15       27       18  
                 
Income before income taxes     1,550       1,766       7,724       7,257  
Income tax provision     477       574       2,286       2,277  
                 
Net income   $ 1,073     $ 1,192     $ 5,438     $ 4,980  
                 
Basic earnings per share                
Class A common stock   $ 1.73     $ 1.86     $ 8.65     $ 7.61  
                 
Class B common stock   $ 0.73     $ 0.78     $ 3.63     $ 3.20  
                 
Class C common stock   $ 1.73     $ 1.86     $ 8.65     $ 7.61  
                 
Basic weighted-average shares outstanding                
Class A common stock     492       509       498       520  
                 
Class B common stock     245       245       245       245  
                 
Class C common stock     24       27       26       28  
                 
Diluted earnings per share                
Class A common stock   $ 1.72     $ 1.85     $ 8.62     $ 7.59  
                 
Class B common stock   $ 0.72     $ 0.78     $ 3.62     $ 3.19  
                 
Class C common stock   $ 1.72     $ 1.85     $ 8.62     $ 7.59  
                 
Diluted weighted-average shares outstanding                
Class A common stock     623       644       631       656  
                 
Class B common stock     245       245       245       245  
                 
Class C common stock     24       27       26       28  
                                 
 
VISA INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
    For the Years Ended September 30,
    2014   2013   2012
    (in millions)
Operating Activities            
Net income   $ 5,438     $ 4,980     $ 2,142  
Adjustments to reconcile net income to net cash provided by (used in) operating activities:            
Amortization of client incentives     2,592       2,321       2,155  
Share-based compensation     172       179       147  
Excess tax benefit for share-based compensation     (90 )     (74 )     (71 )
Depreciation and amortization of property, equipment, technology and intangible assets     435       397       333  
Deferred income taxes     (580 )     1,527       (1,690 )
Litigation provision     453       3       4,101  
Other     37       50       (8 )
Change in operating assets and liabilities:            
Income tax receivable     51       37       (67 )
Settlement receivable     13       (345 )     (42 )
Accounts receivable     (53 )     (38 )     (161 )
Client incentives     (2,395 )     (2,336 )     (1,757 )
Other assets     (430 )     (543 )     41  
Accounts payable     (56 )     40       (17 )
Settlement payable     107       506       270  
Accrued and other liabilities     513       702       (227 )
Accrued litigation     998       (4,384 )     (140 )
Net cash provided by operating activities     7,205       3,022       5,009  
             
Investing Activities            
Purchases of property, equipment, technology and intangible assets     (553 )     (471 )     (376 )
Proceeds from disposal of property, equipment and technology                 2  
Investment securities, available-for-sale:            
Purchases     (2,572 )     (3,164 )     (4,140 )
Proceeds from maturities and sales     2,342       2,440       2,093  
Acquisitions, net of cash received     (149 )           (3 )
Purchases of / contributions to other investments     (9 )     (3 )     (12 )
Proceeds / distributions from other investments           34       22  
Net cash used in investing activities     (941 )     (1,164 )     (2,414 )
             
Financing Activities            
Repurchase of class A common stock     (4,118 )     (5,365 )     (710 )
Dividends paid     (1,006 )     (864 )     (595 )
Deposits into litigation escrow account—retrospective responsibility plan     (450 )           (1,715 )
(Return to) payments from litigation escrow account—retrospective responsibility plan     (999 )     4,383       140  
Cash proceeds from exercise of stock options     91       108       174  
Restricted stock and performance-based shares settled in cash for taxes     (86 )     (64 )      
Excess tax benefit for share-based compensation     90       74       71  
Payments for earn-out related to PlaySpan acquisition           (12 )     (14 )
Principal payments on capital lease obligations           (6 )     (6 )
Net cash used in financing activities     (6,478 )     (1,746 )     (2,655 )
Effect of exchange rate changes on cash and cash equivalents     (1 )     -       7  
(Decrease) increase in cash and cash equivalents     (215 )     112       (53 )
Cash and cash equivalents at beginning of year     2,186       2,074       2,127  
Cash and cash equivalents at end of year   $ 1,971     $ 2,186     $ 2,074  
             
Supplemental Disclosures            
Income taxes paid, net of refunds   $ 2,656     $ 595     $ 2,057  
Non-cash accruals related to purchases of property, equipment, technology and intangible assets   $ 62     $ 46     $ 67  
                         
 
VISA INC.
FISCAL 2014 AND 2013 QUARTERLY RESULTS OF OPERATIONS
(UNAUDITED)
                     
    Fiscal 2014 Quarter Ended  

Fiscal 2013
Quarter Ended

   

September 30,
2014

 

June 30,
2014

 

March 31,
2014

 

December 31,
2013

 

September 30,
2013

                     
    (in millions)
Operating Revenues                    
Service revenues   $ 1,499     $ 1,417     $ 1,462     $ 1,419     $ 1,385  
Data processing revenues     1,348       1,321       1,234       1,264       1,186  
International transaction revenues     938       860       871       891       899  
Other revenues     212       195       183       180       183  
Client incentives     (768 )     (638 )     (587 )     (599 )     (680 )
                     
Total operating revenues     3,229       3,155       3,163       3,155       2,973  
                     
Operating Expenses                    
Personnel     496       463       446       470       499  
Marketing     241       228       245       186       236  
Network and processing     128       127       120       132       122  
Professional fees     94       82       77       75       130  
Depreciation and amortization     112       109       107       107       106  
General and administrative     153       126       120       108       129  
Litigation provision     453                          
                     
Total operating expenses     1,677       1,135       1,115       1,078       1,222  
                     
Operating income     1,552       2,020       2,048       2,077       1,751  
                     
Non-operating (expense) income     (2 )     10       13       6       15  
                     
Income before income taxes     1,550       2,030       2,061       2,083       1,766  
Income tax provision     477       670       463       676       574  
                     
Net income   $ 1,073     $ 1,360     $ 1,598     $ 1,407     $ 1,192  
                                         
 
VISA INC.
Reconciliation of Non-GAAP Financial Results
US$ in millions, except margin ratio and per share data
                                     
                                     

During the fourth quarter of fiscal 2014, we recorded a provision of $450 million and related tax benefits associated with litigation covered by the retrospective responsibility plan ("litigation provision"). We believe the presentation of our adjusted financial results, excluding the litigation provision, provides a clearer understanding of our operating performance for the periods presented.

 
    Three Months Ended September 30,
    Operating Expenses   Operating Margin(1),(2)   Net Income  

Diluted Earnings per
Share(2)

    2014   2013   2014   2013   2014       2013   2014   2013
As reported   $ 1,677     $ 1,222   48 %   59 %   $ 1,073       $ 1,192   $ 1.72   $ 1.85
Litigation provision     (450 )     -   14 %   -       283  

(3)

    -     0.45     -
Adjusted   $ 1,227     $ 1,222   62 %   59 %   $ 1,356       $ 1,192   $ 2.18   $ 1.85
Diluted weighted-average shares outstanding                             623     644
                                     
    Twelve Months Ended September 30,
    Operating Expenses   Operating Margin(1),(2)   Net Income  

Diluted Earnings per
Share(2)

    2014     2013   2014   2013   2014       2013   2014   2013
As reported   $ 5,005     $ 4,539   61 %   61 %   $ 5,438       $ 4,980   $ 8.62   $ 7.59
Litigation provision     (450 )     -   4 %   -       283  

(3)

    -     0.45     -
Adjusted   $ 4,555     $ 4,539   64 %   61 %   $ 5,721       $ 4,980   $ 9.07   $ 7.59
Diluted weighted-average shares outstanding                             631     656
                                     
(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 litigation provision adjustment to net income is shown net of tax. The tax impact is determined by applying applicable federal and state tax rates to the litigation provision.
 

Operational Performance Data

The tables below provide information regarding the available operational results for the 3 months ended September 30, 2014, as well as the prior four quarterly reporting periods and the 12 months ended September 30, 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 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)

                                             
All Visa Credit & Debit                                            
Asia Pacific   $ 505   8.8 %   8.8 %   $ 351   11.6 %   11.5 %   3,999   $ 154   2.9 %   3.0 %   958
Canada     66   1.5 %   6.8 %     61   1.2 %   6.5 %   646     5   4.7 %   10.1 %   12
CEMEA     280   5.7 %   14.8 %     67   17.9 %   26.4 %   1,486     212   2.4 %   11.6 %   1,172
LAC     276   6.6 %   12.2 %     105   7.5 %   14.5 %   2,493     171   6.1 %   10.8 %   1,056

US

    755   9.2 %   9.2 %     631   9.8 %   9.8 %   12,299     124   6.2 %   6.2 %   951
Visa Inc.     1,882   7.9 %   10.2 %     1,215   10.0 %   11.3 %   20,923     667   4.2 %   8.3 %   4,150
                                             
Visa Credit Programs                                            
US   $ 327   12.7 %   12.7 %   $ 313   12.7 %   12.7 %   3,732   $ 14   11.8 %   11.8 %   17

International

    505   7.4 %   10.2 %     457   8.7 %   11.1 %   5,553     49   -3.5 %   2.9 %   193
Visa Inc.     832   9.4 %   11.2 %     769   10.3 %   11.7 %   9,285     62   -0.5 %   4.8 %   210
                                             
Visa Debit Programs                                            
US   $ 429   6.7 %   6.7 %   $ 319   7.0 %   7.0 %   8,567   $ 110   5.6 %   5.6 %   934

International

    621   6.7 %   11.5 %     127   16.5 %   20.7 %   3,071     494   4.5 %   9.3 %   3,006
Visa Inc.     1,050   6.7 %   9.5 %     446   9.6 %   10.6 %   11,638     604   4.7 %   8.6 %   3,940
                                             
                 
    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   7.0 %   9.5 %   $ 338   11.1 %   12.3 %   3,821   $ 151   -1.1 %   3.8 %   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 %   13.9 %     65   18.1 %   26.8 %   1,389     212   1.6 %   10.5 %   1,196   313   310
LAC     266   -1.3 %   9.6 %     101   0.3 %   12.4 %   2,408     165   -2.3 %   8.0 %   1,013   418   446

US

    750   9.3 %   9.3 %     628   10.0 %   10.0 %   12,221     122   5.8 %   5.8 %   941   579   742
Visa Inc.     1,845   6.1 %   10.0 %     1,191   9.4 %   11.6 %   20,465     654   0.7 %   7.3 %   4,071   2,007   2,298
                                                     
Visa Credit Programs                                                    
US   $ 316   12.1 %   12.1 %   $ 303   12.3 %   12.3 %   3,575   $ 13   8.3 %   8.3 %   16   223   295

International

    489   5.7 %   10.1 %     440   7.0 %   11.0 %   5,366     49   -4.3 %   2.4 %   199   478   536
Visa Inc.     805   8.1 %   10.9 %     744   9.1 %   11.5 %   8,941     62   -2.0 %   3.5 %   215   701   831
                                                     
Visa Debit Programs                                                    
US   $ 433   7.4 %   7.4 %   $ 324   8.0 %   8.0 %   8,646   $ 109   5.5 %   5.5 %   925   356   447

International

    607   2.7 %   10.9 %     123   15.0 %   22.7 %   2,878     484   0.0 %   8.2 %   2,931   950   1,020
Visa Inc.     1,040   4.6 %   9.4 %     447   9.8 %   11.7 %   11,524     592   0.9 %   7.7 %   3,856   1,306   1,467
                                                     
                                         
    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)

 

Accounts
(millions)

 

Cards
(millions)

                                                     
All Visa Credit & Debit                                                    
Asia Pacific   $ 481   7.1 %   11.6 %   $ 328   10.9 %   14.9 %   3,574   $ 153   -0.3 %   5.0 %   878   642   738
Canada     57   0.8 %   10.3 %     52   0.7 %   10.1 %   552     5   2.3 %   11.9 %   11   37   44
CEMEA     252   4.1 %   14.1 %     59   16.4 %   28.0 %   1,252     194   0.9 %   10.5 %   1,105   306   307
LAC     250   -4.7 %   11.4 %     95   -4.0 %   13.9 %   2,367     155   -5.1 %   9.9 %   984   411   439

US

    690   8.0 %   8.0 %     575   8.6 %   8.6 %   11,141     115   5.1 %   5.1 %   875   568   725
Visa Inc.     1,730   4.9 %   10.4 %     1,108   8.0 %   11.8 %   18,887     622   -0.2 %   7.9 %   3,854   1,963   2,253
                                                     
Visa Credit Programs                                                    
US   $ 281   10.2 %   10.2 %   $ 270   10.6 %   10.6 %   3,148   $ 12   1.4 %   1.4 %   14   215   283

International

    463   4.9 %   12.3 %     417   6.0 %   13.3 %   5,069     46   -3.9 %   4.1 %   176   474   533
Visa Inc.     744   6.9 %   11.5 %     687   7.8 %   12.2 %   8,217     57   -2.8 %   3.6 %   191   688   816
                                                     
Visa Debit Programs                                                    
US   $ 409   6.5 %   6.5 %   $ 305   6.8 %   6.8 %   7,993   $ 103   5.6 %   5.6 %   861   353   442

International

    577   1.4 %   11.9 %     115   13.1 %   24.8 %   2,677     461   -1.1 %   9.0 %   2,802   922   994
Visa Inc.     985   3.5 %   9.6 %     421   8.4 %   11.2 %   10,670     564   0.0 %   8.4 %   3,663   1,275   1,436
       
    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 %   12.7 %   $ 339   8.3 %   14.2 %   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   36   43  
CEMEA     286   9.3 %   13.2 %     62   23.0 %   28.5 %   1,231     223   6.0 %   9.6 %   1,176   300   300  
LAC     287   1.9 %   10.8 %     110   5.5 %   15.9 %   2,506     177   -0.2 %   7.8 %   1,066   407   437  

US

    706   7.8 %   7.8 %     591   8.5 %   8.5 %   11,589     115   4.3 %   4.3 %   895   564   718  
Visa Inc.     1,838   6.7 %   10.3 %     1,164   8.3 %   11.5 %   19,613     674   3.9 %   8.1 %   4,038   1,929   2,219  
                                                       
Visa Credit Programs                                                      
US   $ 300   9.3 %   9.3 %   $ 288   9.6 %   9.6 %   3,446   $ 12   2.6 %   2.6 %   16   216   279  

International

    502   5.2 %   11.5 %     450   5.7 %   12.5 %   5,294     53   0.4 %   4.1 %   196   472   531  
Visa Inc.     802   6.7 %   10.7 %     737   7.2 %   11.3 %   8,740     65   0.8 %   3.8 %   213   688   810  
                                                       
Visa Debit Programs                                                      
US   $ 406   6.7 %   6.7 %   $ 303   7.5 %   7.5 %   8,143   $ 103   4.5 %   4.5 %   879   348   439  

International

    630   6.7 %   12.2 %     124   18.0 %   24.6 %   2,730     506   4.2 %   9.5 %   2,947   893   970  
Visa Inc.     1,036   6.7 %   10.0 %     427   10.3 %   11.9 %   10,873     609   4.3 %   8.6 %   3,826   1,241   1,409  
                                                       
     
    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 %   13.5 %   $ 314   8.5 %   14.6 %   3,557   $ 150   7.5 %   11.1 %   854   610   710
Canada     65   4.6 %   9.4 %     60   4.8 %   9.6 %   602     5   2.3 %   7.0 %   12   34   41
CEMEA     265   12.2 %   15.9 %     57   26.8 %   32.1 %   1,121     207   8.8 %   12.1 %   1,120   296   294
LAC     259   1.6 %   10.7 %     98   4.4 %   14.6 %   2,348     161   0.0 %   8.5 %   998   403   431

US

    692   9.3 %   9.3 %     575   10.3 %   10.3 %   11,400     117   4.8 %   4.8 %   928   540   703
Visa Inc.     1,745   8.0 %   11.5 %     1,104   9.6 %   12.7 %   19,028     640   5.4 %   9.5 %   3,912   1,883   2,179
                                                     
Visa Credit Programs                                                    
US   $ 290   10.9 %   10.9 %   $ 277   11.0 %   11.0 %   3,324   $ 12   8.2 %   8.2 %   16   207   277

International

    470   6.3 %   12.4 %     420   6.9 %   13.5 %   5,138     50   1.8 %   4.2 %   196   468   526
Visa Inc.     760   8.0 %   11.8 %     697   8.5 %   12.5 %   8,461     63   3.0 %   5.0 %   212   675   804
                                                     
Visa Debit Programs                                                    
US   $ 402   8.2 %   8.2 %   $ 298   9.6 %   9.6 %   8,076   $ 104   4.4 %   4.4 %   912   333   426

International

    582   7.9 %   13.6 %     109   17.7 %   24.6 %   2,491     473   5.9 %   11.3 %   2,788   875   949
Visa Inc.     984   8.0 %   11.3 %     407   11.7 %   13.2 %   10,567     577   5.6 %   10.0 %   3,700   1,208   1,375
                                                                       
     
    For the 12 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)

                                             
All Visa Credit & Debit                                            
Asia Pacific   $ 1,967   7.6 %   10.6 %   $ 1,355   10.5 %   13.2 %   15,071   $ 612   1.8 %   5.3 %   3,636
Canada     254   0.7 %   7.4 %     234   0.7 %   7.5 %   2,434     20   0.4 %   7.2 %   46
CEMEA     1,094   6.1 %   14.0 %     253   18.8 %   27.4 %   5,359     841   2.8 %   10.5 %   4,650
LAC     1,079   0.6 %   11.0 %     411   2.4 %   14.2 %   9,774     668   -0.4 %   9.1 %   4,118

US

    2,901   8.6 %   8.6 %     2,425   9.2 %   9.2 %   47,251     476   5.4 %   5.4 %   3,662
Visa Inc.     7,295   6.4 %   10.2 %     4,678   9.0 %   11.6 %   79,888     2,617   2.1 %   7.9 %   16,113
                                             
Visa Credit Programs                                            
US   $ 1,224   11.1 %   11.1 %   $ 1,173   11.3 %   11.3 %   13,902   $ 51   6.1 %   6.1 %   64

International

    1,960   5.8 %   11.0 %     1,764   6.9 %   11.9 %   21,282     196   -2.8 %   3.4 %   765
Visa Inc.     3,183   7.8 %   11.0 %     2,937   8.6 %   11.7 %   35,183     246   -1.1 %   3.9 %   828
                                             
Visa Debit Programs                                            
US   $ 1,677   6.8 %   6.8 %   $ 1,252   7.3 %   7.3 %   33,349   $ 425   5.3 %   5.3 %   3,598

International

    2,434   4.4 %   11.6 %     489   15.7 %   23.1 %   11,356     1,945   1.9 %   9.0 %   11,686
Visa Inc.     4,112   5.4 %   9.6 %     1,741   9.5 %   11.3 %   44,705     2,370   2.5 %   8.3 %   15,284
                                                               
    For the 12 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   $ 1,828   10.2 %   12.6 %   $ 1,227   10.4 %   13.5 %   13,291   $ 601   9.9 %   10.7 %   3,181  

610

 

710

Canada     252   5.2 %   5.7 %     232   5.8 %   6.3 %   2,220     20   -1.1 %   -0.6 %   44  

34

 

41

CEMEA     1,031   14.8 %   17.2 %     213   28.5 %   32.3 %   4,017     818   11.7 %   13.8 %   4,485  

296

 

294

LAC     1,072   5.7 %   12.3 %     401   9.1 %   17.1 %   9,265     671   3.8 %   9.7 %   3,913  

403

 

431

US

    2,672   6.5 %   6.5 %     2,220   7.2 %   7.2 %   43,616     451   3.2 %   3.2 %   3,557  

540

 

703

Visa Inc.     6,856   8.5 %   10.4 %     4,294   9.1 %   10.7 %   72,409     2,562   7.5 %   9.8 %   15,179  

1,883

 

2,179

                                                     
Visa Credit Programs                                                    
US   $ 1,101   10.2 %   10.2 %   $ 1,054   10.2 %   10.2 %   12,484   $ 48   9.2 %   9.2 %   62  

207

 

277

International

    1,852   8.1 %   11.3 %     1,651   8.8 %   12.5 %   19,495     201   2.6 %   2.6 %   772  

468

 

526

Visa Inc.     2,953   8.9 %   10.9 %     2,704   9.4 %   11.6 %   31,979     249   3.8 %   3.9 %   833  

675

 

804

                                                     
Visa Debit Programs                                                    
US   $ 1,570   4.1 %   4.1 %   $ 1,166   4.6 %   4.6 %   31,132   $ 404   2.5 %   2.5 %   3,495  

333

 

426

International

    2,332   11.1 %   14.7 %     423   21.5 %   26.0 %   9,299     1,909   9.1 %   12.5 %   10,851  

875

 

949

Visa Inc.     3,902   8.2 %   10.0 %     1,589   8.6 %   9.3 %   40,430     2,313   7.9 %   10.5 %   14,346  

1,208

 

1,375

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

                   
Sep 30, 2014         9%         10%
Jun 30, 2014         6%         7%
Mar 31, 2014         5%         8%
Dec 31, 2013         11%         12%
Sep 30, 2013         9%         11%
                     

12 Months Ended

                   
Sep 30, 2014         8%         9%
Sep 30, 2013         10%         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

                   
Sep 30, 2014         16,943         9%
Jun 30, 2014         16,662         11%
Mar 31, 2014         15,354         11%
Dec 31, 2013         15,985         13%
Sep 30, 2013         15,491         14%
                     

12 Months Ended

                   
Sep 30, 2014         64,944         11%
Sep 30, 2013         58,472         10%
                     

4. CyberSource Transactions

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

                     
Period        

Billable
Transactions
(millions)

        Growth
                     

3 Months Ended

                   
Sep 30, 2014         1,905         12%
Jun 30, 2014         1,890         15%
Mar 31, 2014         1,859         16%
Dec 31, 2013         1,894         20%
Sep 30, 2013         1,696         24%
                     

12 Months Ended

                   
Sep 30, 2014         7,549         16%
Sep 30, 2013         6,533         26%

 

Source: Visa Inc.

Visa Inc.
Investor Relations:
Jack Carsky or Victoria Hyde-Dunn, 650-432-7644
[email protected]
Media Relations:
Paul Cohen, 650-432-2990
[email protected]