Visa Inc. Reports Fiscal First Quarter 2016 Results

January 28, 2016 at 4:05 PM EST
  • GAAP quarterly net income of $1.9 billion or $0.80 per share including non-cash, non-operating income related to the revaluation of the Visa Europe put option
  • Adjusted quarterly net income of $1.7 billion or $0.69 per share excluding the revaluation of the Visa Europe put option

SAN FRANCISCO--(BUSINESS WIRE)--Jan. 28, 2016-- Visa Inc. (NYSE:V) today announced financial results for the Company’s fiscal first quarter 2016. GAAP net income for the quarter, inclusive of non-cash, non-operating income related to an adjustment in the Company’s fair value of its Visa Europe put option, was $1.9 billion, or $0.80 per share. All references to earnings per share assume fully-diluted class A share count unless otherwise noted.

Excluding the $255 million non-cash, non-operating income recorded upon remeasurement of the Visa Europe put option, adjusted net income for the quarter was $1.7 billion, an increase of 7% over the prior year, or $0.69 per share, an increase of 10% over the prior year. The change in the fair value of the Visa Europe put option was triggered by the amendment of the put option in connection with the Visa Europe Transaction Agreement. The Company’s adjusted quarterly net income, effective income tax rate and earnings per share are non-GAAP financial measures that are reconciled to their most directly comparable GAAP measure in the accompanying financial tables.

Net operating revenue in the fiscal first quarter of 2016 was $3.6 billion, an increase of 5% nominally or 8% on a constant dollar basis over the prior year, driven by growth in service revenues, data processing revenues and international transaction revenues. Currency rate shifts versus the prior year negatively impacted reported net operating revenue growth by approximately 3 percentage points.

“We continue to be pleased with our financial performance given the uneven global economy and the ongoing negative effects of the strong U.S. dollar. While we continue to see relatively strong payments volume growth, these factors have meaningfully reduced our cross-border volume and revenue growth. While these headwinds do not appear to be abating in the short-term as we had hoped, the fundamentals of our business remain strong and our long-term growth trajectory remains intact as we navigate through this uncertain environment,” said Charlie Scharf, Chief Executive Officer of Visa Inc.

Fiscal First Quarter 2016 Financial Highlights:

Payments volume growth, on a constant dollar basis, for the three months ended September 30, 2015, on which fiscal first quarter service revenue is recognized, was 12% over the prior year at $1.3 trillion.

Payments volume growth, on a constant dollar basis, for the three months ended December 31, 2015, was 11% over the prior year at $1.3 trillion.

Cross-border volume growth, on a constant dollar basis, was 4% for the three months ended December 31, 2015.

Total processed transactions, which represent transactions processed by VisaNet, for the three months ended December 31, 2015, were 19.0 billion, an 8% increase over the prior year.

Fiscal first quarter 2016 service revenues were $1.6 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 $1.5 billion. International transaction revenues grew 6% over the prior year to $1.0 billion. Other revenues were $198 million, a decrease of 3% over the prior year. Client incentives, which are a contra revenue item, were $788 million and represent 18.1% of gross revenues.

Total operating expenses were $1.2 billion for the quarter, a 2% increase over the prior year, as the Company took the necessary steps to prioritize cost controls given an increasingly challenging macro-economic environment.

The Company recognized interest expense of $24 million for the quarter ended December 31, 2015 as a result of the issuance of approximately $16.0 billion of fixed-rate senior notes.

For the quarter ended December 31, 2015, the GAAP effective tax rate was 26.4% and the adjusted effective tax rate was 29.3%.

Cash, cash equivalents, and available-for-sale investment securities were $24.8 billion at December 31, 2015.

The weighted-average number of diluted shares of class A common stock outstanding was 2.4 billion for the quarter ended December 31, 2015.

Notable Events:

On December 14, 2015, the Company issued fixed-rate senior notes in an aggregate principal amount of $16.0 billion with maturities ranging between 2 and 30 years, and interest rates from 1.20% to 4.30%. The weighted average interest rate is 3.08% and the weighted average maturity of the notes is 13 years. Among other things, the proceeds will be used to fund the up-front cash consideration of the purchase price for the planned acquisition of Visa Europe Limited.

During the three months ended December 31, 2015, the Company repurchased 25.7 million shares of class A common stock, at an average price of $78.52 per share, using $2.0 billion of cash on hand. The Company has $5.8 billion of remaining funds, authorized by the board of directors, available for share repurchase under the current programs as of December 31, 2015.

Financial Outlook for Fiscal Full-Year 2016:

While the Company is not changing its financial outlook for the fiscal full-year, continued moderating cross-border volume growth and subdued domestic activity across our geographies could ultimately affect our results. Current guidance is outlined below:

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

Note: The financial outlook for fiscal full-year 2016 does not include any impact from the Visa Europe transaction, including interest expense from the $16.0 billion issuance of fixed-rate senior notes of about $125 million per quarter.

Fiscal First Quarter 2016 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 65,000 transaction messages a second, with fraud protection for consumers and assured payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa's innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, pay ahead of time with prepaid or pay later with credit products. For more information, visit usa.visa.com/about-visa, visacorporate.tumblr.com and @VisaNews.

Forward-Looking Statements:

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

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

  • the impact of laws, regulations and marketplace barriers, including:
    • increased regulation of fees, transaction routing, payment card practices or other aspects of the payments industry in the United States, including new or revised regulations issued under the Dodd-Frank Wall Street Reform and Consumer Protection Act;
    • increased regulation in jurisdictions outside of the United States;
    • increased government support of national payment networks outside the United States; and
    • increased regulation of consumer privacy, data use and security;
  • developments in litigation and government enforcement, including those affecting interchange reimbursement fees, antitrust and tax;
  • new lawsuits, investigations or proceedings, or changes to our potential exposure in connection with pending lawsuits, investigations or proceedings;
  • economic factors, such as:
    • economic fragility in the Eurozone, the United States and in other advanced and emerging markets;
    • general economic, political and social conditions in mature and emerging markets globally;
    • general stock market fluctuations which may impact consumer spending;
    • material changes in cross-border activity, foreign exchange controls and fluctuations in currency exchange rates; and
    • material changes in our financial institution clients' performance compared to our estimates;
  • industry developments, such as competitive pressure, rapid technological developments and disintermediation from our payments network;
  • system developments, such as:
    • disruption of our transaction processing systems or the inability to process transactions efficiently;
    • account data breaches or increased fraudulent or other illegal activities involving Visa-branded cards or payment products; and
    • failure to maintain systems interoperability with Visa Europe;
  • the transaction with Visa Europe may not be consummated on the terms currently contemplated or at all;
  • Visa Europe's business may not be successfully integrated with our business or we may not achieve the anticipated benefits of the transaction;
  • the costs and risks associated with the transaction with Visa Europe;
  • matters arising in connection with Visa Europe's or our efforts to comply with and satisfy applicable regulatory approvals and closing conditions relating to the transaction;
  • the loss of organizational effectiveness or key employees;
  • the failure to integrate acquisitions successfully or to effectively develop new products and businesses;
  • natural disasters, terrorist attacks, military or political conflicts, and public health emergencies; and
  • various other factors, including those more fully described in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended September 30, 2015, and our subsequent reports on Forms 10-Q and 8-K.

You should not place undue reliance on such statements. Except as required by law, we do not intend to update or revise any forward–looking statements as a result of new information, future developments or otherwise.

 
VISA INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
   

December 31,
2015

 

September 30,
2015

    (in millions, except par value data)
Assets        
Cash and cash equivalents   $ 12,837     $ 3,518  
Restricted cash—litigation escrow     1,061       1,072  
Investment securities:        
Trading     80       66  
Available-for-sale     8,428       2,431  
Settlement receivable     443       408  
Accounts receivable     922       847  
Customer collateral     1,041       1,023  
Current portion of client incentives     414       303  
Prepaid expenses and other current assets     247       353  
Total current assets     25,473       10,021  
         
Investment securities, available-for-sale     3,487       3,384  
Client incentives     128       110  
Property, equipment and technology, net     1,884       1,888  
Other assets     832       778  
Intangible assets, net     11,348       11,361  
Goodwill     11,825       11,825  
Total assets   $ 54,977     $ 39,367  
         
Liabilities        
Accounts payable   $ 118     $ 127  
Settlement payable     744       780  
Customer collateral     1,041       1,023  
Accrued compensation and benefits     317       503  
Client incentives     1,116       1,049  
Accrued liabilities     1,009       849  
Accrued litigation     1,012       1,024  
Total current liabilities     5,357       5,355  
         
Long-term debt     15,877        
Deferred tax liabilities     3,344       3,273  
Other liabilities     923       897  
Total liabilities     25,501       9,525  
         
Equity        
Preferred stock, $0.0001 par value, 25 shares authorized and none issued            
Class A common stock, $0.0001 par value, 2,001,622 shares authorized, 1,926 and 1,950 shares issued and outstanding at December 31, 2015 and September 30, 2015, respectively            
Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at December 31, 2015 and September 30, 2015            
Class C common stock, $0.0001 par value, 1,097 shares authorized, 19 and 20 shares issued and outstanding at December 31, 2015 and September 30, 2015, respectively            
Additional paid-in capital     17,824       18,073  
Accumulated income     11,701       11,843  
Accumulated other comprehensive loss, net:        
Investment securities, available-for-sale     23       5  
Defined benefit pension and other postretirement plans     (131 )     (161 )
Derivative instruments classified as cash flow hedges     60       83  
Foreign currency translation adjustments     (1 )     (1 )
Total accumulated other comprehensive loss, net     (49 )     (74 )
Total equity     29,476       29,842  
Total liabilities and equity   $ 54,977     $ 39,367  
         
VISA INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
         
   

Three Months Ended
December 31,

    2015   2014
    (in millions, except per share data)
Operating Revenues        
Service revenues   $ 1,645     $ 1,538  
Data processing revenues     1,479       1,383  
International transaction revenues     1,031       970  
Other revenues     198       204  
Client incentives     (788 )     (713 )
Total operating revenues     3,565       3,382  
         
Operating Expenses        
Personnel     499       509  
Marketing     194       205  
Network and processing     128       114  
Professional fees     72       70  
Depreciation and amortization     120       120  
General and administrative     156       126  
Total operating expenses     1,169       1,144  
Operating income     2,396       2,238  
         
Non-operating Income        
Interest expense     (29 )     (3 )
Other     272       27  
Total non-operating income     243       24  
Income before income taxes     2,639       2,262  
Income tax provision     698       693  
Net income   $ 1,941     $ 1,569  
         
Basic earnings per share        
Class A common stock   $ 0.80     $ 0.63  
Class B common stock   $ 1.32     $ 1.05  
Class C common stock   $ 3.20     $ 2.54  
         
Basic weighted-average shares outstanding        
Class A common stock     1,937       1,974  
Class B common stock     245       245  
Class C common stock     20       22  
         
Diluted earnings per share        
Class A common stock   $ 0.80     $ 0.63  
Class B common stock   $ 1.32     $ 1.04  
Class C common stock   $ 3.20     $ 2.53  
         
Diluted weighted-average shares outstanding        
Class A common stock     2,430       2,478  
Class B common stock     245       245  
Class C common stock     20       22  
     
VISA INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
         
   

Three Months Ended
December 31,

    2015   2014
    (in millions)
Operating Activities        
Net income   $ 1,941     $ 1,569  
Adjustments to reconcile net income to net cash provided by operating activities:        
Amortization of client incentives     788       713  
Fair value adjustment for the Visa Europe put option     (255 )      
Share-based compensation     39       45  
Excess tax benefit for share-based compensation     (36 )     (58 )
Depreciation and amortization of property, equipment, technology and intangible assets     120       120  
Deferred income taxes     45       97  
Other     5       (19 )
Change in operating assets and liabilities:        
Settlement receivable     (35 )     286  
Accounts receivable     (75 )     (78 )
Client incentives     (850 )     (687 )
Other assets     23       (141 )
Accounts payable           10  
Settlement payable     (36 )     (477 )
Accrued and other liabilities     317       484  
Accrued litigation     (12 )     (103 )
Net cash provided by operating activities     1,979       1,761  
         
Investing Activities        
Purchases of property, equipment, technology and intangible assets     (126 )     (104 )
Investment securities, available-for-sale:        
Purchases     (6,803 )     (758 )
Proceeds from maturities and sales     739       226  
Purchases of / contributions to other investments     (8 )      
Proceeds / distributions from other investments     4        
Net cash used in investing activities     (6,194 )     (636 )
         
Financing Activities        
Repurchase of class A common stock     (2,015 )     (803 )
Dividends paid     (340 )     (297 )
Proceeds from issuance of senior notes     15,971        
Debt issuance costs     (77 )      
Payments from litigation escrow account—U.S. retrospective responsibility plan     11       100  
Cash proceeds from issuance of common stock under employee equity plans     29       30  
Restricted stock and performance-based shares settled in cash for taxes     (81 )     (100 )
Excess tax benefit for share-based compensation     36       58  
Net cash provided by (used in) financing activities     13,534       (1,012 )
Effect of exchange rate changes on cash and cash equivalents           1  
Increase in cash and cash equivalents     9,319       114  
Cash and cash equivalents at beginning of year     3,518       1,971  
Cash and cash equivalents at end of period   $ 12,837     $ 2,085  
         
Supplemental Disclosure        
Income taxes paid, net of refunds   $ 79     $ 57  
Accruals related to purchases of property, equipment, technology and intangible assets   $ 40     $ 21  
                     
VISA INC.
FISCAL 2016 AND 2015 QUARTERLY RESULTS OF OPERATIONS
(UNAUDITED)
                     
   

Fiscal 2016
Quarter Ended

  Fiscal 2015 Quarter Ended
                     
   

December 31,
2015

 

September 30,
2015

 

June 30,
2015

 

March 31,
2015

 

December 31,
2014

    (in millions)
Operating Revenues                    
Service revenues   $ 1,645     $ 1,637     $ 1,550     $ 1,577     $ 1,538  
Data processing revenues     1,479       1,429       1,400       1,340       1,383  
International transaction revenues     1,031       1,091       1,039       964       970  
Other revenues     198       216       199       204       204  
Client incentives     (788 )     (802 )     (670 )     (676 )     (713 )
Total operating revenues     3,565       3,571       3,518       3,409       3,382  
                     
Operating Expenses                    
Personnel     499       521       566       483       509  
Marketing     194       253       224       190       205  
Network and processing     128       134       117       109       114  
Professional fees     72       107       82       77       70  
Depreciation and amortization     120       119       130       125       120  
General and administrative     156       143       137       141       126  
Litigation provision           11             3        
Total operating expenses     1,169       1,288       1,256       1,128       1,144  
Operating income     2,396       2,283       2,262       2,281       2,238  
                     
Non-operating Income (Expense)                    
Interest expense     (29 )           8       (7 )     (3 )
Other     272             (102 )     8       27  
Total non-operating income (expense)     243             (94 )     1       24  
Income before income taxes     2,639       2,283       2,168       2,282       2,262  
Income tax provision     698       771       471       732       693  
Net income   $ 1,941     $ 1,512     $ 1,697     $ 1,550     $ 1,569  
 
VISA INC.
RECONCILIATION OF NON-GAAP FINANCIAL RESULTS
(UNAUDITED)
 
During the first quarter of fiscal 2016, we recorded a decrease of $255 million in the fair value of the Visa Europe put option, resulting in the recognition of non-cash, non-operating income that we do not believe is indicative of our operating performance. As such, we believe the presentation of adjusted financial results provides a clearer understanding of our operating performance for the current period presented. This amount is not subject to income tax and therefore has no impact on our reported income tax provision. There was no comparable adjustment recorded for the three months ended December 31, 2014. Adjusted net income, effective income tax rate and diluted earnings per share are non-GAAP financial measures and should not be relied upon as substitutes for measures calculated in accordance with U.S. GAAP. The following table reconciles our as-reported net income, effective income tax rate and diluted earnings per share, which are calculated in accordance with U.S. GAAP, to our respective non-GAAP adjusted financial measures for the three months ended December 31, 2015:
             
    Three Months Ended December 31, 2015
    Net Income  

Effective Income
Tax Rate(1)

 

Diluted Earnings
per Share(1)

    (in millions, except percentages and per share data)
As reported   $ 1,941     26 %     $ 0.80  
Revaluation of Visa Europe put option     (255 )   3 %       (0.10 )
As adjusted   $ 1,686     29 %     $ 0.69  
Diluted weighted-average shares outstanding, as reported               2,430  
               
(1) Figures in the table may not recalculate exactly due to rounding. Effective income tax rate and diluted earnings per share figures are calculated based on unrounded numbers.
 

Operational Performance Data

The tables below provide information regarding the available operational results for the 3 months ended December 31, 2015, as well as the prior four quarterly reporting periods and the 12 months ended December 31, 2015 and 2014, for cards carrying the Visa, Visa Electron and Interlink brands.

 
1. Branded Volume and Transactions
 
The tables present regional total volume, payments volume, and cash volume, and the number of payments transactions, cash transactions, accounts and cards for cards carrying the Visa, Visa Electron and Interlink brands. Card counts include PLUS proprietary cards. Nominal and constant dollar growth rates over prior years are provided for volume-based data.
    For the 3 Months Ended December 31, 2015
   

Total
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Transactions
(millions)

 

Cash
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Cash
Transactions
(millions)

                                             
All Visa Credit & Debit                                            
Asia Pacific   $ 526   3.0 %   10.9 %   $ 387   7.9 %   15.7 %   4,894   $ 139   -8.5 %   -0.5 %   1,039
Canada     59   -10.8 %   4.9 %     55   -11.1 %   4.6 %   720     5   -6.8 %   9.7 %   11
CEMEA     227   -13.8 %   4.8 %     60   -7.0 %   11.5 %   2,097     167   -16.0 %   2.7 %   1,234
LAC     237   -17.1 %   10.3 %     89   -17.6 %   14.2 %   2,912     147   -16.7 %   8.1 %   1,173

US

    841   8.9 %   8.9 %     713   9.5 %   9.5 %   14,033     128   5.5 %   5.5 %   934
Visa Inc.     1,890   -0.4 %   9.0 %     1,305   4.8 %   11.5 %   24,656     586   -10.4 %   3.9 %   4,392
                                             
Visa Credit Programs                                            
US   $ 372   9.2 %   9.2 %   $ 358   9.2 %   9.2 %   4,393   $ 14   7.9 %   7.9 %   17

International

    504   -1.3 %   12.1 %     470   0.5 %   13.5 %   6,490     34   -20.3 %   -3.9 %   164
Visa Inc.     876   2.9 %   10.8 %     827   4.1 %   11.6 %   10,883     49   -13.7 %   -0.7 %   181
                                             
Visa Debit Programs                                            
US   $ 469   8.7 %   8.7 %   $ 355   9.8 %   9.8 %   9,640   $ 113   5.2 %   5.2 %   917

International

    546   -11.4 %   6.4 %     122   -3.5 %   15.6 %   4,133     424   -13.5 %   4.0 %   3,293
Visa Inc.     1,014   -3.1 %   7.5 %     477   6.1 %   11.3 %   13,773     537   -10.1 %   4.3 %   4,210
     
    For the 3 Months Ended September 30, 2015
   

Total
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Transactions
(millions)

 

Cash
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Cash
Transactions
(millions)

 

Accounts
(millions)

 

Cards
(millions)

                                                     
All Visa Credit & Debit                                                    
Asia Pacific   $ 510   0.8 %   11.2 %   $ 372   5.7 %   16.6 %   4,674   $ 138   -10.3 %   -1.2 %   1,029   738   835
Canada     58   -12.0 %   5.2 %     54   -12.1 %   5.1 %   698     5   -11.3 %   6.0 %   12   43   50
CEMEA     232   -17.1 %   9.4 %     61   -9.9 %   17.1 %   1,914     171   -19.4 %   6.9 %   1,195   333   321
LAC     227   -17.5 %   11.2 %     85   -18.1 %   14.0 %   2,702     142   -17.2 %   9.6 %   1,093   415   451

US

    822   8.7 %   8.7 %     693   9.7 %   9.7 %   13,658     129   3.9 %   3.9 %   959   630   802
Visa Inc.     1,850   -1.8 %   9.7 %     1,265   4.0 %   12.1 %   23,647     585   -12.3 %   4.8 %   4,287   2,158   2,459
                                                     
Visa Credit Programs                                                    
US   $ 359   9.9 %   9.9 %   $ 345   10.2 %   10.2 %   4,224   $ 14   2.9 %   2.9 %   18   250   329

International

    491   -2.7 %   14.1 %     456   -0.3 %   15.6 %   6,211     35   -25.3 %   -2.3 %   164   499   558
Visa Inc.     850   2.3 %   12.3 %     800   3.9 %   13.2 %   10,435     50   -18.9 %   -0.8 %   181   749   887
                                                     
Visa Debit Programs                                                    
US   $ 463   7.9 %   7.9 %   $ 349   9.2 %   9.2 %   9,434   $ 115   4.0 %   4.0 %   941   380   473

International

    537   -13.8 %   7.2 %     116   -8.7 %   13.1 %   3,777     420   -15.1 %   5.7 %   3,164   1,029   1,099
Visa Inc.     1,000   -5.0 %   7.5 %     465   4.1 %   10.1 %   13,212     535   -11.7 %   5.4 %   4,105   1,410   1,572
     
    For the 3 Months Ended June 30, 2015
   

Total
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Transactions
(millions)

 

Cash
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Cash
Transactions
(millions)

 

Accounts
(millions)

 

Cards
(millions)

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

US

    810   8.0 %   8.0 %     683   8.8 %   8.8 %   13,265     126   3.8 %   3.8 %   951   628   798
Visa Inc.     1,855   0.6 %   9.1 %     1,254   5.3 %   11.0 %   22,717     602   -8.0 %   5.1 %   4,232   2,145   2,441
                                                     
Visa Credit Programs                                                    
US   $ 352   11.3 %   11.3 %   $ 339   11.7 %   11.7 %   4,072   $ 13   3.5 %   3.5 %   16   246   323

International

    490   0.6 %   12.9 %     453   3.0 %   14.5 %   5,915     37   -21.7 %   -3.8 %   160   496   554
Visa Inc.     843   4.8 %   12.2 %     792   6.5 %   13.3 %   9,988     51   -16.3 %   -2.0 %   176   742   876
                                                     
Visa Debit Programs                                                    
US   $ 457   5.6 %   5.6 %   $ 344   6.1 %   6.1 %   9,192   $ 113   3.8 %   3.8 %   935   382   476

International

    555   -8.6 %   7.4 %     117   -4.7 %   11.3 %   3,537     438   -9.6 %   6.4 %   3,121   1,021   1,089
Visa Inc.     1,013   -2.7 %   6.6 %     462   3.2 %   7.4 %   12,729     551   -7.1 %   5.9 %   4,056   1,404   1,565
 
    For the 3 Months Ended March 31, 2015
   

Total
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Transactions
(millions)

 

Cash
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Cash
Transactions
(millions)

 

Accounts
(millions)

 

Cards
(millions)

                                                     
All Visa Credit & Debit                                                    
Asia Pacific   $ 495   2.9 %   8.6 %   $ 343   4.8 %   11.6 %   4,092   $ 152   -1.2 %   2.4 %   986   711   809
Canada     54   -5.0 %   7.1 %     49   -5.3 %   6.8 %   602     5   -1.7 %   10.9 %   12   42   49
CEMEA     212   -16.0 %   11.8 %     54   -8.2 %   19.9 %   1,615     158   -18.4 %   9.3 %   1,121   329   323
LAC     243   -2.9 %   13.4 %     93   -1.4 %   15.7 %   2,529     149   -3.8 %   12.1 %   1,043   417   450

US

    748   8.4 %   8.4 %     628   9.2 %   9.2 %   12,206     120   4.3 %   4.3 %   890   620   789
Visa Inc.     1,751   1.2 %   9.5 %     1,168   5.4 %   10.8 %   21,044     584   -6.2 %   7.0 %   4,052   2,120   2,420
                                                     
Visa Credit Programs                                                    
US   $ 316   12.3 %   12.3 %   $ 303   12.3 %   12.3 %   3,623   $ 13   12.1 %   12.1 %   15   241   318

International

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

International

    540   -6.4 %   9.4 %     111   -3.7 %   11.9 %   3,306     429   -7.0 %   8.7 %   3,009   1,011   1,085
Visa Inc.     972   -1.3 %   7.7 %     437   3.7 %   7.9 %   11,889     536   -5.1 %   7.6 %   3,884   1,390   1,556
 
    For the 3 Months Ended December 31, 2014
   

Total
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Transactions
(millions)

 

Cash
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Cash
Transactions
(millions)

 

Accounts
(millions)

 

Cards
(millions)

                                                     
All Visa Credit & Debit                                                    
Asia Pacific   $ 511   3.6 %   7.9 %   $ 359   5.8 %   10.8 %   4,186   $ 152   -1.4 %   1.7 %   974   698   797
Canada     66   -0.1 %   8.7 %     62   -0.1 %   8.7 %   671     5   0.2 %   9.0 %   11   42   49
CEMEA     264   -7.8 %   15.5 %     65   3.2 %   26.1 %   1,616     199   -10.9 %   12.4 %   1,213   325   321
LAC     285   -0.6 %   12.9 %     109   -1.3 %   12.6 %   2,683     177   -0.2 %   13.0 %   1,130   414   452

US

    772   9.4 %   9.4 %     651   10.2 %   10.2 %   12,595     121   5.2 %   5.2 %   916   611   782
Visa Inc.     1,898   3.3 %   10.1 %     1,245   6.9 %   11.1 %   21,750     654   -3.1 %   8.1 %   4,243   2,089   2,401
                                                     
Visa Credit Programs                                                    
US   $ 341   13.7 %   13.7 %   $ 327   13.9 %   13.9 %   3,957   $ 13   9.2 %   9.2 %   16   236   313

International

    510   1.6 %   10.6 %     467   3.9 %   11.7 %   5,769     43   -18.3 %   -1.2 %   173   485   543
Visa Inc.     851   6.1 %   11.9 %     795   7.8 %   12.7 %   9,725     56   -13.1 %   1.4 %   189   721   857
                                                     
Visa Debit Programs                                                    
US   $ 431   6.2 %   6.2 %   $ 324   6.6 %   6.6 %   8,638   $ 108   4.7 %   4.7 %   899   374   469

International

    616   -2.3 %   10.8 %     126   2.3 %   14.4 %   3,387     490   -3.4 %   9.9 %   3,155   994   1,076
Visa Inc.     1,047   1.0 %   8.6 %     450   5.4 %   8.5 %   12,025     597   -2.0 %   8.8 %   4,054   1,368   1,545
 
    For the 12 Months Ended December 31, 2015
   

Total
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Transactions
(millions)

 

Cash
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Cash
Transactions
(millions)

                                             
All Visa Credit & Debit                                            
Asia Pacific   $ 2,041   2.8 %   10.4 %   $ 1,467   6.6 %   14.8 %   18,055   $ 574   -6.0 %   0.5 %   4,055
Canada     233   -8.4 %   5.8 %     214   -8.6 %   5.5 %   2,699     19   -5.7 %   8.8 %   46
CEMEA     909   -15.2 %   8.2 %     236   -7.8 %   15.8 %   7,410     673   -17.5 %   5.8 %   4,746
LAC     943   -12.4 %   11.6 %     357   -12.7 %   14.1 %   10,738     587   -12.2 %   10.2 %   4,381

US

    3,221   8.5 %   8.5 %     2,718   9.3 %   9.3 %   53,162     503   4.4 %   4.4 %   3,734
Visa Inc.     7,346   -0.1 %   9.3 %     4,991   4.9 %   11.3 %   92,064     2,355   -9.3 %   5.2 %   16,962
                                             
Visa Credit Programs                                            
US   $ 1,399   10.6 %   10.6 %   $ 1,344   10.8 %   10.8 %   16,312   $ 55   6.4 %   6.4 %   66

International

    1,948   -0.9 %   12.6 %     1,807   1.4 %   14.1 %   24,149     142   -22.9 %   -3.2 %   641
Visa Inc.     3,347   3.6 %   11.8 %     3,151   5.2 %   12.7 %   40,461     197   -16.5 %   -0.7 %   707
                                             
Visa Debit Programs                                            
US   $ 1,822   7.0 %   7.0 %   $ 1,374   7.9 %   7.9 %   36,850   $ 448   4.1 %   4.1 %   3,668

International

    2,177   -10.1 %   7.6 %     467   -5.2 %   13.0 %   14,753     1,711   -11.4 %   6.2 %   12,588
Visa Inc.     3,999   -3.1 %   7.3 %     1,840   4.3 %   9.2 %   51,602     2,159   -8.6 %   5.8 %   16,255
 
    For the 12 Months Ended December 31, 2014
   

Total
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Transactions
(millions)

 

Cash
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Cash
Transactions
(millions)

 

Accounts
(millions)

 

Cards
(millions)

                                                     
All Visa Credit & Debit                                                    
Asia Pacific   $ 1,986   6.7 %   9.5 %   $ 1,376   9.8 %   12.6 %   15,581   $ 610   0.1 %   3.3 %   3,722   698   797
Canada     254   0.8 %   8.4 %     234   0.8 %   8.5 %   2,500     20   0.6 %   8.1 %   46   42   49
CEMEA     1,071   1.4 %   14.6 %     256   13.6 %   25.9 %   5,743     816   -1.9 %   11.4 %   4,670   325   321
LAC     1,077   -0.1 %   11.6 %     408   0.4 %   12.8 %   9,939     668   -0.4 %   10.9 %   4,183   414   452

US

    2,968   9.0 %   9.0 %     2,486   9.7 %   9.7 %   48,273     482   5.5 %   5.5 %   3,687   611   782
Visa Inc.     7,356   5.5 %   10.1 %     4,760   8.6 %   11.3 %   82,036     2,596   0.3 %   7.8 %   16,308   2,089   2,401
                                                     
Visa Credit Programs                                                    
US   $ 1,265   12.3 %   12.3 %   $ 1,213   12.5 %   12.5 %   14,412   $ 52   7.8 %   7.8 %   64   236   313

International

    1,966   4.8 %   10.6 %     1,782   6.4 %   11.7 %   21,750     184   -8.8 %   -0.1 %   709   485   543
Visa Inc.     3,231   7.6 %   11.3 %     2,995   8.8 %   12.0 %   36,163     235   -5.6 %   1.8 %   773   721   857
                                                     
Visa Debit Programs                                                    
US   $ 1,703   6.7 %   6.7 %   $ 1,273   7.2 %   7.2 %   33,861   $ 430   5.3 %   5.3 %   3,623   374   469

International

    2,423   2.1 %   11.4 %     492   11.3 %   20.4 %   12,013     1,930   0.0 %   9.3 %   11,912   994   1,076
Visa Inc.     4,126   3.9 %   9.2 %     1,765   8.3 %   10.1 %   45,874     2,361   0.9 %   8.4 %   15,535   1,368   1,545
   
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

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

12 Months Ended

       
Dec 31, 2015   -2%   6%
Dec 31, 2014   6%   8%
 
3. Visa Processed Transactions
   
The table below represents transactions involving Visa, Visa Electron, Interlink and PLUS cards processed on Visa’s networks.
Period  

Processed
Transactions
(millions)

  Growth
         

3 Months Ended

       
Dec 31, 2015   18,986   8%
Sep 30, 2015   18,365   8%
Jun 30, 2015   18,024   8%
Mar 31, 2015   16,980   11%
Dec 31, 2014   17,599   10%
         

12 Months Ended

       
Dec 31, 2015   72,355   9%
Dec 31, 2014   66,607   10%
 
Footnote
 
Payments volume represents the aggregate dollar amount of purchases made with cards carrying the Visa, Visa Electron and Interlink brands for the relevant period; and cash volume represents the aggregate dollar amount of cash disbursements obtained with these cards for the relevant period and includes the impact of balance transfers and convenience checks; but excludes proprietary PLUS volume. Total volume represents payments volume plus cash volume.
 
Visa payment products are comprised of credit and debit programs, and data relating to each program is included in the tables. Debit programs include Visa’s signature based and Interlink (PIN) debit programs.
 
The data presented is based on results reported quarterly by Visa’s financial institution clients on their operating certificates. Estimates may be utilized if data is unavailable.
 
On occasion, previously presented information may be updated. Prior period updates, if any, are not material.
 
Visa’s CEMEA region is comprised of countries in Central Europe, the Middle East and Africa. Effective with the 3 months ended September 2013, Croatia moved from the CEMEA region to Visa Europe. Several European Union countries in Central Europe, Israel and Turkey are not included in CEMEA. LAC is comprised of countries in Central and South America and the Caribbean. International includes Asia Pacific, Canada, CEMEA and LAC.
 
Information denominated in U.S. dollars is calculated by applying an established U.S. dollar/local currency exchange rate for each local currency in which Visa Inc. volumes are reported (“Nominal USD”). These exchange rates are calculated on a quarterly basis using the established exchange rate for each quarter. To eliminate the impact of foreign currency fluctuations against the U.S. dollar in measuring performance, Visa Inc. also reports year-over-year growth in total volume, payments volume and cash volume on the basis of local currency information (“Constant USD”). This presentation represents Visa’s historical methodology which may be subject to review and refinement.

 

Source: Visa Inc.

Visa Inc.
Investor Relations:
Jack Carsky or Victoria Hyde-Dunn, 650-432-7644
ir@visa.com
or
Media Relations:
Connie Kim, 212-521-3962
globalmedia@visa.com