Press Releases

Printer Friendly Version View printer-friendly version
< Back
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
  • 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
ir@visa.com
Media Relations:
Paul Cohen, 650-432-2990
globalmedia@visa.com