Visa Inc. Reports Fiscal First Quarter 2015 Net Income of $1.6 billion or $2.53 per Diluted Share and Announces a Four-for-One Stock Split

1/29/2015


FOSTER CITY, Calif.--(BUSINESS WIRE)--Jan. 29, 2015-- Visa Inc. (NYSE:V) today announced financial results for the Company’s fiscal first quarter 2015. Net income for the quarter was $1.6 billion, an increase of 11% over the prior year, or $2.53 per share, 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 first quarter of 2015 was $3.4 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 approximately 2 percentage points of negative growth during the quarter.

“Visa kicked-off fiscal 2015 delivering another solid quarter of revenue and earnings growth. While the challenges of the macro global environment don’t seem to abate, our results have remained consistent and reflect the strength and underlying resilience of our business model,” said Charlie Scharf, Chief Executive Officer of Visa Inc. “Our focus remains squarely on investing in our long-term strategic initiatives, driving new technologies and ways to pay as we continue to work collaboratively with governments, issuers, acquirers, and merchant partners.”

The Company also announces its board of directors has authorized a four-for-one stock split. Trading will begin on a split-adjusted basis on March 19, 2015.

Fiscal First Quarter 2015 Financial Highlights:

Payments volume growth, on a constant dollar basis, for the three months ended September 30, 2014, on which fiscal first quarter service revenue is recognized, was 11% over the prior year at $1.2 trillion.

Payments volume growth, on a constant dollar basis, for the three months ended December 31, 2014, was 11% over the prior year at $1.2 trillion.

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

Total processed transactions, which represent transactions processed by VisaNet, for the three months ended December 31, 2014, were 17.6 billion, a 10% increase over the prior year.

Fiscal first quarter 2015 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 9% over the prior year to $1.4 billion. International transaction revenues grew 9% over the prior year to $970 million. Other revenues, which include the Visa Europe licensing fee, were $204 million, an increase of 14% over the prior year. Client incentives, which are a contra revenue item, were $713 million and represent 17.4% of gross revenues.

Total operating expenses were $1.1 billion for the quarter, a 6% increase over the prior year.

The effective tax rate was 30.6% for the quarter ended December 31, 2014.

Cash, cash equivalents, and available-for-sale investment securities were $7.5 billion at December 31, 2014.

The weighted-average number of diluted shares of class A common stock outstanding was 619 million for the quarter ended December 31, 2014.

Notable Events:

During the three months ended December 31, 2014, the Company repurchased 3.1 million shares of class A common stock, at an average price of $259.52 per share, using $803 million of cash on hand. From January 1, 2015, through January 27, 2015, the Company repurchased 2.5 million shares of class A common stock, at an average price of $256.31 per share, using $650 million of cash on hand. Fiscal year to date through January 27, 2015, the Company repurchased a total of 5.6 million shares of class A common stock, at an average price of $258.08 per share, using $1.5 billion of cash on hand. The Company has $4.2 billion of remaining funds, authorized by the board of directors, available for share repurchase under the current program.

On January 28, 2015, the board of directors declared a quarterly cash dividend 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 March 3, 2015, to all holders of record of the Company’s class A, class B and class C common stock as of February 13, 2015.

In addition, on January 28, 2015, the Company held its 2015 Annual Meeting of Stockholders during which holders of the Company’s class A, B and C common stock at the close of business on December 1, 2014, voted on proposals enumerated in the Company’s proxy statement. All Proposals other than Proposal 5(a) and 5(d) passed.

Also, on January 28, 2015, Visa’s board of directors declared a four-for-one split of its class A common stock. On March 18, 2015, each class A common stockholder of record at the close of business on February 13, 2015 (the “Record Date”), will receive a dividend of three additional shares for every share held on the Record Date. Trading will begin on a split-adjusted basis on March 19, 2015. Holders of class B and C common stock will not receive a stock dividend. Instead, the conversion rate for class B common stock will increase to 1.6483 shares of class A common stock per share of class B common stock, and the conversion rate for class C common stock will increase to 4.0 shares of class A common stock per share of class C common stock. Immediately following the split, the class A, B and C stockholders will retain the same relative ownership percentages that they had prior to the stock split. The stock split will increase the Company’s total as-converted shares of class A common stock outstanding as of March 19, 2015, from approximately 614 million shares to approximately 2.5 billion shares based on the share count as of January 27, 2015.

Financial Outlook:

Visa Inc. reaffirms 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 First Quarter 2015 Earnings Results Conference Call Details: Visa’s executive management team will host a live audio webcast beginning at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) today to discuss the financial results and business highlights. All interested parties are invited to listen to the live webcast at 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 Inc. (NYSE: V) is a global payments technology company that connects consumers, businesses, financial institutions, and governments in more than 200 countries and territories to fast, secure and reliable electronic payments. We operate one of the world's most advanced processing networks — VisaNet — that is capable of handling more than 56,000 transaction messages a second, with fraud protection for consumers and assured payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa's innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, pay ahead of time with prepaid or pay later with credit products. For more information, visit usa.visa.com/about-visa, visacorporate.tumblr.com and @VisaNews.

Forward-Looking Statements:

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

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

  • the impact of laws, regulations and marketplace barriers, including:
    • rules capping debit interchange reimbursement rates and expanding financial institutions' and merchants' choices among debit payments networks promulgated under the Dodd-Frank Wall Street Reform and Consumer Protection Act;
    • increased regulation in jurisdictions outside of the United States and in other product categories;
    • increased government support of national payments networks outside the United States; and
    • increased regulation of consumer privacy, data use and security;
  • developments in litigation and government enforcement, including those affecting interchange reimbursement fees, antitrust and tax;
  • new lawsuits, investigations or proceedings, or changes to our potential exposure in connection with pending lawsuits, investigations or proceedings;
  • economic factors, such as:
    • economic fragility in the Eurozone and in the United States;
    • general economic, political and social conditions in mature and emerging markets globally;
    • general stock market fluctuations, which may impact consumer spending;
    • material changes in cross-border activity, foreign exchange controls and fluctuations in currency exchange rates;
    • volatility in market prices for oil and natural gas; and
    • material changes in our financial institution clients' performance compared to our estimates;
  • industry developments, such as competitive pressure, rapid technological developments and disintermediation from our payments network;
  • system developments, such as:
    • disruption of our transaction processing systems or the inability to process transactions efficiently;
    • account data breaches or increased fraudulent or other illegal activities involving Visa-branded cards or payment products; and
    • failure to maintain systems interoperability with Visa Europe;
  • 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, 2014, and our other filings with the U.S. Securities and Exchange Commission. You should not place undue reliance on such statements. Except as required by law, we do not intend to update or revise any forward–looking statements as a result of new information, future developments or otherwise.

         
VISA INC.        
CONSOLIDATED BALANCE SHEETS        
(UNAUDITED)        
    December 31,   September 30,
    2014   2014
    (in millions, except par value data)
Assets        
Cash and cash equivalents   $ 2,085     $ 1,971  
Restricted cash—litigation escrow     1,398       1,498  
Investment securities:        
Trading     78       69  
Available-for-sale     2,417       1,910  
Settlement receivable     500       786  
Accounts receivable     900       822  
Customer collateral     1,041       961  
Current portion of client incentives     200       210  
Deferred tax assets     927       1,028  
Prepaid expenses and other current assets     318       307  
         
Total current assets     9,864       9,562  
         
Investment securities, available-for-sale     3,028       3,015  
Client incentives     87       81  
Property, equipment and technology, net     1,861       1,892  
Other assets     896       855  
Intangible assets, net     11,395       11,411  
Goodwill     11,753       11,753  
         
Total assets   $ 38,884     $ 38,569  
         
Liabilities        
Accounts payable   $ 135     $ 147  
Settlement payable     855       1,332  
Customer collateral     1,041       961  
Accrued compensation and benefits     307       450  
Client incentives     1,058       1,036  
Accrued liabilities     1,049       624  
Accrued litigation     1,353       1,456  
         
Total current liabilities     5,798       6,006  
         
Deferred tax liabilities     4,139       4,145  
Other liabilities     1,005       1,005  
         
Total liabilities     10,942       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, 495 shares issued and outstanding at December 31, 2014 and September 30, 2014     —       —  
Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at December 31, 2014 and September 30, 2014     —       —  
Class C common stock, $0.0001 par value, 1,097 shares authorized, 20 and 22 shares issued and outstanding at December 31, 2014 and September 30, 2014, respectively     —       —  
Additional paid-in capital     18,200       18,299  
Accumulated income     9,732       9,131  
Accumulated other comprehensive income (loss), net:        
Investment securities, available-for-sale     11       31  
Defined benefit pension and other postretirement plans     (80 )     (84 )
Derivative instruments classified as cash flow hedges     80       38  
Foreign currency translation adjustments     (1 )     (2 )
         
Total accumulated other comprehensive income (loss), net     10       (17 )
         
Total equity     27,942       27,413  
         
Total liabilities and equity   $ 38,884     $ 38,569  
                 
VISA INC.        
CONSOLIDATED STATEMENTS OF OPERATIONS        
(UNAUDITED)        
         
    Three Months Ended
    December 31,
    2014   2013
    (in millions, except per share data)
Operating Revenues        
Service revenues   $ 1,538     $ 1,419  
Data processing revenues     1,383       1,264  
International transaction revenues     970       891  
Other revenues     204       180  
Client incentives     (713 )     (599 )
         
Total operating revenues     3,382       3,155  
         
Operating Expenses        
Personnel     509       470  
Marketing     205       186  
Network and processing     114       132  
Professional fees     70       75  
Depreciation and amortization     120       107  
General and administrative     126       108  
         
Total operating expenses     1,144       1,078  
         
Operating income     2,238       2,077  
         
Non-operating income     24       6  
         
Income before income taxes     2,262       2,083  
Income tax provision     693       676  
         
Net income   $ 1,569     $ 1,407  
         
Basic earnings per share        
Class A common stock   $ 2.54     $ 2.21  
         
Class B common stock   $ 1.05     $ 0.93  
         
Class C common stock   $ 2.54     $ 2.21  
         
Basic weighted-average shares outstanding        
Class A common stock     494       505  
         
Class B common stock     245       245  
         
Class C common stock     22       27  
         
Diluted earnings per share        
Class A common stock   $ 2.53     $ 2.20  
         
Class B common stock   $ 1.04     $ 0.93  
         
Class C common stock   $ 2.53     $ 2.20  
         
Diluted weighted-average shares outstanding        
Class A common stock     619       639  
         
Class B common stock     245       245  
         
Class C common stock     22       27  
                 
VISA INC.        
CONSOLIDATED STATEMENTS OF CASH FLOWS        
(UNAUDITED)        
   

Three Months Ended December 31,
    2014   2013
    (in millions)
Operating Activities        
Net income   $ 1,569     $ 1,407  
Adjustments to reconcile net income to net cash provided by operating activities:        
Amortization of client incentives     713       599  
Share-based compensation     45       45  
Excess tax benefit for share-based compensation     (58 )     (54 )
Depreciation and amortization of property, equipment, technology and intangible assets     120       107  
Deferred income taxes     97       19  
Other     (19 )     5  
Change in operating assets and liabilities:        
Settlement receivable     286       (89 )
Accounts receivable     (78 )     (79 )
Client incentives     (687 )     (616 )
Other assets     (141 )     (77 )
Accounts payable     10       (80 )
Settlement payable     (477 )     21  
Accrued and other liabilities     484       334  
Accrued litigation     (103 )     (1 )
Net cash provided by operating activities     1,761       1,541  
         
Investing Activities        
Purchases of property, equipment, technology and intangible assets     (104 )     (120 )
Investment securities, available-for-sale:        
Purchases     (758 )     (754 )
Proceeds from sales and maturities     226       600  
Purchases of / contributions to other investments     —       (2 )
Net cash used in investing activities     (636 )     (276 )
         
Financing Activities        
Repurchase of class A common stock     (803 )     (1,091 )
Dividends paid     (297 )     (254 )
Payments from litigation escrow account—retrospective responsibility plan     100       —  
Cash proceeds from exercise of stock options     30       38  
Restricted stock and performance-based shares settled in cash for taxes     (100 )     (77 )
Excess tax benefit for share-based compensation     58       54  
Net cash used in financing activities     (1,012 )     (1,330 )
Effect of exchange rate changes on cash and cash equivalents     1  

 

   —  
Increase (decrease) in cash and cash equivalents     114       (65 )
Cash and cash equivalents at beginning of year     1,971       2,186  
Cash and cash equivalents at end of period   $ 2,085     $ 2,121  
         
Supplemental Disclosure        
Income taxes paid, net of refunds   $ 57     $ 96  
Accruals related to purchases of property, equipment, technology and intangible assets   $ 21     $ 20  
                 
VISA INC.                    
FISCAL 2015 AND 2014 QUARTERLY RESULTS OF OPERATIONS
(UNAUDITED)                    
                     
    Fiscal 2015    
    Quarter Ended   Fiscal 2014 Quarter Ended
    December 31,   September 30,   June 30,   March 31,   December 31,
    2014   2014   2014   2014   2013
    (in millions)
Operating Revenues                    
Service revenues   $ 1,538     $ 1,499     $ 1,417     $ 1,462     $ 1,419  
Data processing revenues     1,383       1,348       1,321       1,234       1,264  
International transaction revenues     970       938       860       871       891  
Other revenues     204       212       195       183       180  
Client incentives     (713 )     (768 )     (638 )     (587 )     (599 )
                     
Total operating revenues     3,382       3,229       3,155       3,163       3,155  
                     
Operating Expenses                    
Personnel     509       496       463       446       470  
Marketing     205       241       228       245       186  
Network and processing     114       128       127       120       132  
Professional fees     70       94       82       77       75  
Depreciation and amortization     120       112       109       107       107  
General and administrative     126       153       126       120       108  
Litigation provision     —       453       —       —       —  
                     
Total operating expenses     1,144       1,677       1,135       1,115       1,078  
                     
Operating income     2,238       1,552       2,020       2,048       2,077  
                     
Non-operating income (expense)     24       (2 )     10       13       6  
                     
Income before income taxes     2,262       1,550       2,030       2,061       2,083  
Income tax provision     693       477       670       463       676  
                     
Net income   $ 1,569     $ 1,073     $ 1,360     $ 1,598     $ 1,407  
                                         

Operational Performance Data

The tables below provide information regarding the available operational results for the 3 months ended December 31, 2014, as well as the prior four quarterly reporting periods and the 12 months ended December 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 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 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
    ($ billions)   USD)   USD)   ($ billions)   USD)   USD)   (millions)   ($ billions)   USD)   USD)   (millions)
                                             
All Visa Credit & Debit                                            
Asia Pacific   $ 510   3.5 %   7.9 %   $ 359   5.7 %   10.6 %   4,171   $ 151   -1.5 %   1.8 %   973
Canada     66   -0.7 %   8.0 %     61   -0.8 %   7.9 %   666     5   0.3 %   9.1 %   11

CEMEA

     266   -6.9 %   16.8 %     65   4.5 %   28.2 %   1,609     201   -10.1 %   13.5 %   1,220
LAC     286   -0.4 %   13.7 %     109   -0.7 %   15.2 %   2,696     177   -0.2 %   12.8 %   1,130

US

     771   9.3 %   9.3 %     651   10.1 %   10.1 %   12,584     121   5.2 %   5.2 %   914
Visa Inc.     1,900   3.3 %   10.5 %     1,245   6.9 %   11.4 %   21,726     655   -2.8 %   8.8 %   4,249
                                             
Visa Credit Programs                                            
US   $ 341   13.7 %   13.7 %   $ 327   13.8 %   13.8 %   3,954   $ 13   10.1 %   10.1 %   16

International

     511   1.8 %   11.1 %     467   3.8 %   12.0 %   5,759     44   -15.9 %   2.5 %   189
Visa Inc.     852   6.2 %   12.1 %     794   7.7 %   12.8 %   9,713     58   -11.0 %   4.1 %   205
                                             
Visa Debit Programs                                            
US   $ 431   6.1 %   6.1 %   $ 323   6.5 %   6.5 %   8,630   $ 108   4.7 %   4.7 %   898

International

     617   -2.1 %   11.5 %     127   3.0 %   15.9 %   3,384     490   -3.3 %   10.4 %   3,146
Visa Inc.     1,048   1.1 %   9.2 %     450   5.5 %   9.0 %   12,014     597   -2.0 %   9.3 %   4,044
                                             
    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   12.0 %   11.9 %   4,001   $ 154   3.2 %   3.2 %   960   677   774
Canada     66   2.0 %   7.4 %     61   1.7 %   7.0 %   651     5   5.5 %   11.0 %   12   40   47
CEMEA     280   5.9 %   15.0 %     68   18.0 %   26.5 %   1,489     213   2.5 %   11.7 %   1,173   321   318
LAC     276   6.6 %   12.1 %     105   7.4 %   14.4 %   2,496     171   6.1 %   10.8 %   1,056   417   448

US

     756   9.2 %   9.2 %     632   9.8 %   9.8 %   12,319     124   6.0 %   6.0 %   950   589   754
Visa Inc.     1,884   8.0 %   10.3 %     1,217   10.2 %   11.5 %   20,955     667   4.2 %   8.3 %   4,151   2,043   2,341
                                                     
Visa Credit Programs                                                    
US   $ 327   12.7 %   12.7 %   $ 313   12.7 %   12.7 %   3,733   $ 14   11.8 %   11.8 %   17   230   304

International

     506   7.7 %   10.5 %     458   9.0 %   11.4 %   5,555     49   -3.7 %   2.8 %   192   484   545
Visa Inc.     833   9.6 %   11.3 %     771   10.5 %   11.9 %   9,288     62   -0.6 %   4.7 %   209   714   850
                                                     
Visa Debit Programs                                                    
US   $ 429   6.7 %   6.7 %   $ 319   7.1 %   7.1 %   8,586   $ 110   5.3 %   5.3 %   933   359   450

International

     622   6.9 %   11.7 %     127   16.7 %   20.8 %   3,081     495   4.6 %   9.5 %   3,009   970   1,042
Visa Inc.     1,051   6.8 %   9.6 %     446   9.7 %   10.7 %   11,667     605   4.8 %   8.7 %   3,942   1,330   1,491
                                                     
    For the 3 Months Ended June 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   $ 488   7.1 %   9.6 %   $ 338   11.1 %   12.3 %   3,821   $ 151   -1.0 %   3.9 %   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   9.4 %   9.4 %     628   10.1 %   10.1 %   12,223     122   5.8 %   5.8 %   941   580   743
Visa Inc.     1,845   6.1 %   10.1 %     1,191   9.4 %   11.6 %   20,467     654   0.7 %   7.3 %   4,071   2,007   2,299
                                                     
Visa Credit Programs                                                    
US   $ 316   12.1 %   12.1 %   $ 304   12.3 %   12.3 %   3,574   $ 13   8.3 %   8.3 %   16   223   296

International

     489   5.7 %   10.1 %     440   7.0 %   11.0 %   5,366     49   -4.3 %   2.4 %   199   478   536
Visa Inc.     805   8.2 %   10.9 %     744   9.1 %   11.5 %   8,940     62   -2.0 %   3.5 %   215   701   832
                                                     
Visa Debit Programs                                                    
US   $ 433   7.4 %   7.4 %   $ 325   8.0 %   8.0 %   8,648   $ 109   5.6 %   5.6 %   925   356   447

International

     607   2.7 %   10.9 %     123   15.0 %   22.8 %   2,879     484   0.0 %   8.2 %   2,932   950   1,020
Visa Inc.     1,040   4.6 %   9.4 %     448   9.9 %   11.7 %   11,527     593   1.0 %   7.7 %   3,856   1,307   1,467
                                                                       
    For the 3 Months Ended March 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   $ 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 %   11,142     115   5.1 %   5.1 %   875   568   726
Visa Inc.     1,730   4.9 %   10.4 %     1,108   8.0 %   11.8 %   18,888     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   817
                                                     
Visa Debit Programs                                                    
US   $ 409   6.5 %   6.5 %   $ 305   6.8 %   6.8 %   7,994   $ 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     565   0.0 %   8.4 %   3,663   1,275   1,436
                                                     
    For the 3 Months Ended December 31, 2013
    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   $ 493   7.5 %   12.8 %   $ 339   8.3 %   14.4 %   3,677   $ 154   5.8 %   9.4 %   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 %   12.7 %     62   23.0 %   27.0 %   1,231     223   6.0 %   9.2 %   1,176   300   300
LAC     287   1.9 %   10.0 %     110   5.5 %   14.4 %   2,506     177   -0.2 %   7.5 %   1,066   407   437

US

     706   7.8 %   7.8 %     591   8.5 %   8.5 %   11,591     115   4.3 %   4.3 %   895   561   719
Visa Inc.     1,838   6.7 %   10.0 %     1,164   8.3 %   11.2 %   19,615     674   3.9 %   7.8 %   4,038   1,926   2,220
                                                     
Visa Credit Programs                                                    
US   $ 300   9.3 %   9.3 %   $ 288   9.6 %   9.6 %   3,446   $ 12   2.6 %   2.6 %   16   212   280

International

     502   5.2 %   11.1 %     450   5.7 %   12.1 %   5,294     53   0.4 %   2.4 %   196   472   531
Visa Inc.     802   6.7 %   10.4 %     737   7.2 %   11.1 %   8,740     65   0.8 %   2.4 %   213   684   811
                                                     
Visa Debit Programs                                                    
US   $ 406   6.7 %   6.7 %   $ 303   7.5 %   7.5 %   8,145   $ 103   4.5 %   4.5 %   879   348   439

International

     630   6.7 %   12.0 %     124   18.0 %   24.2 %   2,730     506   4.2 %   9.3 %   2,947   893   970
Visa Inc.     1,036   6.7 %   9.7 %     427   10.3 %   11.5 %   10,875     609   4.3 %   8.4 %   3,826   1,241   1,409
                                                                       
    For the 12 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
    ($ billions)   USD)   USD)   ($ billions)   USD)   USD)   (millions)   ($ billions)   USD)   USD)   (millions)
                                             
All Visa Credit & Debit                                            
Asia Pacific   $ 1,986   6.6 %   9.5 %   $ 1,376   9.8 %   12.4 %   15,567   $ 610   0.1 %   3.5 %   3,722
Canada     254   0.7 %   8.2 %     234   0.7 %   8.2 %   2,495     20   0.6 %   8.2 %   46
CEMEA     1,075   1.8 %   14.9 %     256   13.9 %   27.3 %   5,739     819   -1.5 %   11.5 %   4,694
LAC     1,078   0.0 %   11.7 %     410   0.7 %   14.0 %   9,966     668   -0.4 %   10.4 %   4,183

US

     2,967   9.0 %   9.0 %     2,485   9.7 %   9.7 %   48,268     482   5.6 %   5.6 %   3,680
Visa Inc.     7,359   5.6 %   10.3 %     4,761   8.6 %   11.6 %   82,036     2,598   0.4 %   8.1 %   16,325
                                             
Visa Credit Programs                                            
US   $ 1,265   12.2 %   12.2 %   $ 1,213   12.4 %   12.4 %   14,409   $ 52   8.0 %   8.0 %   64

International

     1,970   5.0 %   11.0 %     1,782   6.4 %   11.9 %   21,749     187   -7.1 %   2.9 %   756
Visa Inc.     3,234   7.7 %   11.5 %     2,995   8.8 %   12.1 %   36,158     239   -4.2 %   4.0 %   819
                                             
Visa Debit Programs                                            
US   $ 1,702   6.7 %   6.7 %   $ 1,272   7.1 %   7.1 %   33,859   $ 430   5.3 %   5.3 %   3,616

International

     2,423   2.2 %   11.5 %     493   11.6 %   20.8 %   12,019     1,930   0.0 %   9.3 %   11,889
Visa Inc.     4,125   4.0 %   9.4 %     1,765   8.3 %   10.6 %   45,878     2,359   0.9 %   8.5 %   15,506
                                                               
    For the 12 Months Ended December 31, 2013
    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   $ 1,862   9.1 %   12.9 %   $ 1,253   9.1 %   14.0 %   13,703   $ 609   9.0 %   10.7 %   3,316   622   721
Canada     252   2.5 %   5.4 %     232   2.8 %   5.8 %   2,268     20   -1.6 %   1.1 %   44   36   43
CEMEA     1,056   12.4 %   15.3 %     225   26.3 %   30.5 %   4,331     831   9.1 %   11.8 %   4,513   300   300
LAC     1,078   4.4 %   11.1 %     407   7.7 %   15.7 %   9,400     671   2.4 %   8.5 %   3,965   407   437

US

     2,723   7.8 %   7.8 %     2,267   8.6 %   8.6 %   44,571     456   3.7 %   3.7 %   3,576   561   719
Visa Inc.     6,971   8.0 %   10.5 %     4,383   9.1 %   11.4 %   74,273     2,587   6.2 %   9.0 %   15,415   1,926   2,220
                                                     
Visa Credit Programs                                                    
US   $ 1,127   9.9 %   9.9 %   $ 1,079   9.9 %   9.9 %   12,800   $ 48   8.7 %   8.7 %   62   212   280

International

     1,876   6.6 %   11.3 %     1,675   7.2 %   12.4 %   19,928     201   2.1 %   3.2 %   772   472   531
Visa Inc.     3,003   7.8 %   10.8 %     2,754   8.3 %   11.4 %   32,728     249   3.3 %   4.3 %   834   684   811
                                                     
Visa Debit Programs                                                    
US   $ 1,596   6.3 %   6.3 %   $ 1,188   7.4 %   7.4 %   31,771   $ 408   3.2 %   3.2 %   3,514   348   439

International

     2,371   9.5 %   13.5 %     442   20.2 %   25.2 %   9,774     1,930   7.3 %   11.1 %   11,067   893   970
Visa Inc.     3,967   8.2 %   10.4 %     1,629   10.6 %   11.5 %   41,546     2,338   6.5 %   9.5 %   14,580   1,241   1,409
                                                     

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

        
Dec 31, 2014   4%   8%
Sep 30, 2014   9%   10%
Jun 30, 2014   6%   7%
Mar 31, 2014   5%   8%
Dec 31, 2013   11%   12%
         

12 Months Ended

        
Dec 31, 2014   6%   8%
Dec 31, 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.

    Processed    
    Transactions    
Period   (millions)   Growth
       

 

3 Months Ended

        
Dec 31, 2014   17,599   10%
Sep 30, 2014   16,991   10%
Jun 30, 2014   16,662   11%
Mar 31, 2014   15,354   11%
Dec 31, 2013   15,985   13%
         

12 Months Ended

        
Dec 31, 2014   66,607   10%
Dec 31, 2013   60,298   12%
         

4. CyberSource Transactions

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

    Billable    
    Transactions    
Period   (millions)   Growth
         

3 Months Ended

        
Dec 31, 2014   2,192   16%
Sep 30, 2014   1,905   12%
Jun 30, 2014   1,890   15%
Mar 31, 2014   1,859   16%
Dec 31, 2013   1,894   20%
         

12 Months Ended

        
Dec 31, 2014   7,847   15%
Dec 31, 2013   6,846   24%
         

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
[email protected]
or
Media Relations:
Paul Cohen, 650-432-2990
[email protected]