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Visa Inc. Reports Fiscal Second Quarter 2015 Net Income of $1.6 billion or $0.63 per Diluted Share

FOSTER CITY, Calif.--(BUSINESS WIRE)--Apr. 30, 2015-- Visa Inc. (NYSE: V) today announced financial results for the Company’s fiscal second quarter 2015. Net income for the quarter was $1.6 billion. Earnings per share was $0.63 (adjusted for the Company’s four-for-one class A common stock split on March 19, 2015), flat over the prior year period and reflective of the one-time favorable tax benefit of $201 million recognized in that period. All references to earnings per share assume fully-diluted class A share count unless otherwise noted.

Net operating revenue in the fiscal second quarter of 2015 was $3.4 billion, an increase of 8% nominally or 10% on a constant dollar basis over the prior year, driven by solid growth in service revenues, data processing and international transaction revenues. The strengthening of the U.S. dollar impacted net operating revenues by approximately 2.5 percentage points of negative growth during the quarter.

“Visa reported another solid quarter of financial results against the continued backdrop of a tepid global economy. While the negative impacts from the strengthening of the U.S. dollar and lower gasoline prices continued to exert pressure on revenue growth, our results and volume trends have remained strong,” said Charlie Scharf, Chief Executive Officer of Visa Inc. “It continues to be a very exciting time in payments and at Visa. There are trillions of dollars of cash to disintermediate and our work in digital payments will allow us to capture more than we could have contemplated a few years ago. We are very pleased to have been selected by Costco as the credit card network for its U.S. warehouse clubs and gasoline locations commencing next year and to bring this unique and very strategic opportunity to our issuers and their cardholders."

Fiscal Second Quarter 2015 Financial Highlights:

Payments volume growth, on a constant dollar basis, for the three months ended December 31, 2014, on which fiscal second 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 March 31, 2015, 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 March 31, 2015.

Total processed transactions, which represent transactions processed by VisaNet, for the three months ended March 31, 2015, were 17.0 billion, an 11% increase over the prior year.

Fiscal second quarter 2015 service revenues were $1.6 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 $1.3 billion. International transaction revenues grew 11% over the prior year to $964 million. Other revenues, which include the Visa Europe licensing fee, were $204 million, an increase of 12% over the prior year. Client incentives, which are a contra revenue item, were $676 million and represent 16.5% of gross revenues.

Total operating expenses were $1.1 billion for the quarter, a 1% increase over the prior year, primarily related to increased personnel, general and administrative expenses and additional depreciation from our ongoing investments in technology assets and infrastructure, partially offset by the absence of marketing campaigns related to prior year events such as the 2014 Sochi Winter Olympics and 2014 FIFA World Cup.

The effective tax rate was 32.1% for the quarter ended March 31, 2015.

Cash, cash equivalents, and available-for-sale investment securities were $7.3 billion at March 31, 2015.

The weighted-average number of diluted shares of class A common stock outstanding was 2.5 billion for the quarter ended March 31, 2015.

Notable Events:

During the three months ended March 31, 2015, the Company repurchased 16.2 million shares of class A common stock, at an average price of $64.84 per share, using $1.1 billion of cash on hand. Fiscal year to date through March 31, 2015, the Company repurchased a total of 28.6 million shares of class A common stock, at an average price of $64.86 per share, using $1.9 billion of cash on hand. The Company has $3.8 billion of remaining funds, authorized by the board of directors, available for share repurchase under the current program.

On April 22, 2015, the board of directors declared a quarterly cash dividend of $0.12 per share of class A common stock (determined in the case of class B and class C common stock on an as-converted basis) payable on June 2, 2015, to all holders of record of the Company’s class A, B and C common stock as of May 15, 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; and
  • Annual free cash flow greater than $6 billion.

Visa Inc. updates its financial outlook for the following metric for fiscal full-year 2015:

  • Annual diluted class A common stock earnings per share growth: Low-end of the mid-teens range.

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

Fiscal Second 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 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 "estimates," "expectation," “outlook,” "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)

   March 31,   

September 30,
2015 2014
(in millions, except par value data)
Assets
Cash and cash equivalents $ 2,039 $ 1,971
Restricted cash—litigation escrow 1,178 1,498
Investment securities:
Trading 71 69
Available-for-sale 2,496 1,910
Settlement receivable 679 786
Accounts receivable 896 822
Customer collateral 1,079 961
Current portion of client incentives 243 210
Deferred tax assets 838 1,028
Prepaid expenses and other current assets   586     307  
Total current assets 10,105 9,562
 
Investment securities, available-for-sale 2,779 3,015
Client incentives 89 81
Property, equipment and technology, net 1,843 1,892
Other assets 887 855
Intangible assets, net 11,379 11,411
Goodwill   11,753     11,753  
Total assets $ 38,835   $ 38,569  
 
Liabilities
Accounts payable $ 81 $ 147
Settlement payable 1,126 1,332
Customer collateral 1,079 961
Accrued compensation and benefits 334 450
Client incentives 987 1,036
Accrued liabilities 701 624
Accrued litigation   1,135     1,456  
Total current liabilities 5,443 6,006
 
Deferred tax liabilities 4,131 4,145
Other liabilities   1,024     1,005  
Total liabilities   10,598     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, 1,964 and 1,978 shares issued and outstanding at March 31, 2015 and September 30, 2014, respectively
Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at March 31, 2015 and September 30, 2014
Class C common stock, $0.0001 par value, 1,097 shares authorized, 20 and 22 shares issued and outstanding at March 31, 2015 and September 30, 2014, respectively
Additional paid-in capital 18,098 18,299
Accumulated income 10,108 9,131
Accumulated other comprehensive income (loss), net:
Investment securities, available-for-sale 6 31
Defined benefit pension and other postretirement plans (84 ) (84 )
Derivative instruments classified as cash flow hedges 110 38
Foreign currency translation adjustments   (1 )   (2 )
Total accumulated other comprehensive income (loss), net   31     (17 )
Total equity   28,237     27,413  
Total liabilities and equity $ 38,835   $ 38,569  
 
VISA INC.        
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
 
Three Months Ended Six Months Ended
March 31, March 31,
2015 2014 2015 2014
(in millions, except per share data)
Operating Revenues
Service revenues $ 1,577 $ 1,462 $ 3,115 $ 2,881
Data processing revenues 1,340 1,234 2,723 2,498
International transaction revenues 964 871 1,934 1,762
Other revenues 204 183 408 363
Client incentives   (676 )   (587 )   (1,389 )   (1,186 )
Total operating revenues   3,409     3,163     6,791     6,318  
 
Operating Expenses
Personnel 483 446 992 916
Marketing 190 245 395 431
Network and processing 109 120 223 252
Professional fees 77 77 147 152
Depreciation and amortization 125 107 245 214
General and administrative 141 120 267 228
Litigation provision   3         3      
Total operating expenses   1,128     1,115     2,272     2,193  
Operating income 2,281 2,048 4,519 4,125
Non-operating income   1     13     25     19  
Income before income taxes 2,282 2,061 4,544 4,144
Income tax provision   732     463     1,425     1,139  
Net income $ 1,550   $ 1,598   $ 3,119   $ 3,005  
 
Basic earnings per share
Class A common stock $ 0.63   $ 0.63   $ 1.27   $ 1.18  
Class B common stock $ 1.04   $ 1.06   $ 2.09   $ 1.99  
Class C common stock $ 2.53   $ 2.53   $ 5.06   $ 4.74  
 
Basic weighted-average shares outstanding
Class A common stock   1,963     2,003     1,969     2,011  
Class B common stock   245     245     245     245  
Class C common stock   20     26     21     26  
 
Diluted earnings per share
Class A common stock $ 0.63   $ 0.63   $ 1.26   $ 1.18  
Class B common stock $ 1.04   $ 1.06   $ 2.08   $ 1.99  
Class C common stock $ 2.52   $ 2.52   $ 5.05   $ 4.72  
 
Diluted weighted-average shares outstanding
Class A common stock   2,460     2,534     2,469     2,544  
Class B common stock   245     245     245     245  
Class C common stock   20     26     21     26  
 
VISA INC.    
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

  Six Months Ended  

March 31,
2015 2014
(in millions)
Operating Activities
Net income $ 3,119 $ 3,005
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of client incentives 1,389 1,186
Share-based compensation 93 89
Excess tax benefit for share-based compensation (70 ) (68 )
Depreciation and amortization of property, equipment, technology and intangible assets 245 214
Deferred income taxes 173 (375 )
Other 15 12
Change in operating assets and liabilities:
Settlement receivable 107 47
Accounts receivable (74 ) (71 )
Client incentives (1,479 ) (1,251 )
Other assets (467 ) (350 )
Accounts payable (44 ) (68 )
Settlement payable (206 ) (126 )
Accrued and other liabilities 262 171
Accrued litigation   (324 )   1,055  
Net cash provided by operating activities   2,739     3,470  
 
Investing Activities
Purchases of property, equipment, technology and intangible assets (202 ) (217 )
Proceeds from sales of property, equipment and technology 10
Investment securities, available-for-sale:
Purchases (1,267 ) (1,292 )
Proceeds from sales and maturities 895 1,406
Purchases of / contributions to other investments (2 ) (3 )
Proceeds / distributions from other investments   9      
Net cash used in investing activities   (557 )   (106 )
 
Financing Activities
Repurchase of class A common stock (1,855 ) (2,210 )
Dividends paid (591 ) (507 )
Payments from (return to) litigation escrow account—retrospective responsibility plan 321 (1,056 )
Cash proceeds from exercise of stock options 46 58
Restricted stock and performance-based shares settled in cash for taxes (106 ) (83 )
Excess tax benefit for share-based compensation   70     68  
Net cash used in financing activities   (2,115 )   (3,730 )
Effect of exchange rate changes on cash and cash equivalents   1      
Increase (decrease) in cash and cash equivalents 68 (366 )
Cash and cash equivalents at beginning of year   1,971     2,186  
Cash and cash equivalents at end of period $ 2,039   $ 1,820  
 
Supplemental Disclosure
Income taxes paid, net of refunds $ 1,376 $ 1,392
Accruals related to purchases of property, equipment, technology and intangible assets $ 26 $ 27
 
VISA INC.          
FISCAL 2015 AND 2014 QUARTERLY RESULTS OF OPERATIONS
(UNAUDITED)
 

 Fiscal 2015 Quarter Ended 

Fiscal 2014 Quarter Ended

  March 31,  

December 31, September 30,

   June 30,   

  March 31,  

2015 2014 2014 2014 2014
(in millions)
Operating Revenues
Service revenues $ 1,577 $ 1,538 $ 1,499 $ 1,417 $ 1,462
Data processing revenues 1,340 1,383 1,348 1,321 1,234
International transaction revenues 964 970 938 860 871
Other revenues 204 204 212 195 183
Client incentives   (676 )   (713 )   (768 )   (638 )   (587 )
 
Total operating revenues   3,409     3,382     3,229     3,155     3,163  
 
Operating Expenses
Personnel 483 509 496 463 446
Marketing 190 205 241 228 245
Network and processing 109 114 128 127 120
Professional fees 77 70 94 82 77
Depreciation and amortization 125 120 112 109 107
General and administrative 141 126 153 126 120
Litigation provision   3         453          
 
Total operating expenses   1,128     1,144     1,677     1,135     1,115  
 
Operating income 2,281 2,238 1,552 2,020 2,048
 
Non-operating income (expense)   1     24     (2 )   10     13  
 
Income before income taxes 2,282 2,262 1,550 2,030 2,061
Income tax provision   732     693     477     670     463  
 
Net income $ 1,550   $ 1,569   $ 1,073   $ 1,360   $ 1,598  
 

Operational Performance Data

The tables below provide information regarding the available operational results for the 3 months ended March 31, 2015, as well as the prior four quarterly reporting periods and the 12 months ended March 31, 2015 and 2014, 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 March 31, 2015
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 $ 497 3.3 % 9.0 % $ 344 5.2 % 12.0 % 4,109 $ 152 -0.8 % 2.9 % 971
Canada 53 -5.5 % 6.6 % 49 -5.6 % 6.5 % 599 4 -4.3 % 7.9 % 11
CEMEA 213 -15.5 % 12.5 % 54 -8.0 % 20.1 % 1,618 159 -17.8 % 10.1 % 1,134
LAC 242 -3.1 % 13.2 % 93 -1.5 % 15.6 % 2,529 149 -4.0 % 11.7 % 1,042

US

  747 8.3 % 8.3 %   627 9.1 % 9.1 % 12,180   120 4.4 % 4.4 % 890
Visa Inc. 1,753 1.3 % 9.6 % 1,168 5.4 % 10.8 % 21,034 585 -6.0 % 7.3 % 4,048
 
Visa Credit Programs
US $ 316 12.2 % 12.2 % $ 302 12.2 % 12.2 % 3,622 $ 13 12.1 % 12.1 % 15

International

  465 0.3 % 11.8 %   429 2.9 % 13.0 % 5,548   35 -22.8 % -0.8 % 168
Visa Inc. 780 4.8 % 12.0 % 732 6.5 % 12.7 % 9,170 48 -15.6 % 2.4 % 183
 
Visa Debit Programs
US $ 432 5.6 % 5.6 % $ 325 6.3 % 6.3 % 8,558 $ 107 3.5 % 3.5 % 875

International

  541 -6.2 % 9.5 %   111 -3.5 % 12.1 % 3,306   429 -6.9 % 8.9 % 2,990
Visa Inc. 972 -1.3 % 7.8 % 436 3.6 % 7.7 % 11,864 536 -5.0 % 7.8 % 3,865
 
  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 Accounts Cards
($ billions)   USD)   USD)   ($ billions)   USD)   USD)   (millions)   ($ billions)   USD)   USD)   (millions)   (millions)   (millions)
 
All Visa Credit & Debit
Asia Pacific $ 511 3.6 % 8.0 % $ 359 5.8 % 10.7 % 4,186 $ 152 -1.4 % 1.9 % 974 698 797
Canada 66 -0.1 % 8.7 % 62 -0.1 % 8.7 % 671 5 0.2 % 9.0 % 11 42 49
CEMEA 265 -7.4 % 16.2 % 65 3.6 % 27.1 % 1,619 200 -10.4 % 13.1 % 1,225 325 321
LAC 286 -0.4 % 13.8 % 109 -0.6 % 15.3 % 2,697 177 -0.2 % 12.8 % 1,130 415 453

US

  772 9.3 % 9.3 %   651 10.1 % 10.1 % 12,590   121 5.2 % 5.2 % 914 614 783
Visa Inc. 1,900 3.3 % 10.5 % 1,245 7.0 % 11.4 % 21,763 654 -2.9 % 8.7 % 4,254 2,093 2,403
 
Visa Credit Programs
US $ 341 13.7 % 13.7 % $ 327 13.9 % 13.9 % 3,956 $ 13 9.2 % 9.2 % 16 236 313

International

  512 1.9 % 11.3 %   468 4.0 % 12.2 % 5,775   44 -15.9 % 2.4 % 188 485 544
Visa Inc. 853 6.3 % 12.2 % 795 7.8 % 12.9 % 9,731 58 -11.2 % 3.9 % 204 721 857
 
Visa Debit Programs
US $ 431 6.1 % 6.1 % $ 323 6.6 % 6.6 % 8,634 $ 108 4.7 % 4.7 % 898 378 470

International

  616 -2.2 % 11.3 %   127 2.7 % 15.6 % 3,398   489 -3.4 % 10.3 % 3,152 994 1,076
Visa Inc. 1,047 1.1 % 9.1 % 450 5.5 % 9.0 % 12,032 597 -2.0 % 9.2 % 4,050 1,372 1,546
 
  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 % 9.0 % $ 352 11.9 % 11.8 % 4,000 $ 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 9.9 % 9.9 % 12,314   124 6.0 % 6.0 % 951 590 754
Visa Inc. 1,884 8.0 % 10.3 % 1,217 10.2 % 11.5 % 20,949 667 4.2 % 8.3 % 4,152 2,044 2,341
 
Visa Credit Programs
US $ 327 12.7 % 12.7 % $ 313 12.7 % 12.7 % 3,734 $ 14 11.8 % 11.8 % 17 230 304

International

  506 7.6 % 10.4 %   458 9.0 % 11.3 % 5,554   49 -3.7 % 2.8 % 192 484 545
Visa Inc. 833 9.6 % 11.3 % 770 10.5 % 11.9 % 9,289 62 -0.6 % 4.7 % 209 714 850
 
Visa Debit Programs
US $ 429 6.7 % 6.7 % $ 319 7.2 % 7.2 % 8,579 $ 110 5.4 % 5.4 % 933 360 450

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. 1,052 6.8 % 9.6 % 447 9.7 % 10.7 % 11,660 605 4.8 % 8.7 % 3,943 1,330 1,492
 
  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 % 12,225   122 5.9 % 5.9 % 953 580 743
Visa Inc. 1,845 6.1 % 10.1 % 1,191 9.4 % 11.6 % 20,469 654 0.7 % 7.3 % 4,083 2,008 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 -1.9 % 3.5 % 215 701 832
 
Visa Debit Programs
US $ 433 7.4 % 7.4 % $ 325 8.1 % 8.1 % 8,651 $ 109 5.6 % 5.6 % 937 357 447

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 % 11,529 593 1.0 % 7.7 % 3,869 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 % 15.1 % 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 % 13.7 % 59 16.4 % 25.9 % 1,252 194 0.9 % 10.4 % 1,105 306 307
LAC 250 -4.7 % 11.7 % 95 -4.0 % 14.0 % 2,367 155 -5.1 % 10.3 % 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 % 10.2 % 1,108 8.0 % 11.5 % 18,888 622 -0.2 % 7.7 % 3,854 1,963 2,253
 
Visa Credit Programs
US $ 281 10.2 % 10.2 % $ 269 10.6 % 10.6 % 3,148 $ 12 1.3 % 1.3 % 14 214 283

International

  463 4.9 % 12.1 %   417 6.0 % 13.1 % 5,069   46 -3.9 % 2.2 % 176 474 533
Visa Inc. 744 6.9 % 11.3 % 687 7.8 % 12.1 % 8,217 57 -2.9 % 2.0 % 191 688 817
 
Visa Debit Programs
US $ 409 6.5 % 6.5 % $ 305 6.8 % 6.8 % 7,994 $ 103 5.6 % 5.6 % 861 354 443

International

  577 1.4 % 11.9 %   115 13.1 % 24.6 % 2,677   461 -1.1 % 9.1 % 2,802 922 994
Visa Inc. 985 3.5 % 9.4 % 421 8.4 % 10.7 % 10,671 565 0.0 % 8.3 % 3,663 1,275 1,437
 
  For the 12 Months Ended March 31, 2015
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 $ 2,002 5.7 % 8.9 % $ 1,393 8.4 % 11.7 % 16,115 $ 609 0.0 % 3.0 % 3,815
Canada 251 -0.6 % 7.6 % 231 -0.5 % 7.7 % 2,547 20 -0.9 % 7.3 % 46
CEMEA 1,034 -2.9 % 14.5 % 251 7.6 % 25.3 % 6,115 783 -5.9 % 11.4 % 4,728
LAC 1,070 0.5 % 12.1 % 408 1.3 % 14.4 % 10,130 662 -0.1 % 10.8 % 4,241

US

  3,025 9.1 % 9.1 %   2,538 9.8 % 9.8 % 49,308   487 5.4 % 5.4 % 3,708
Visa Inc. 7,382 4.7 % 10.1 % 4,822 8.0 % 11.3 % 84,215 2,561 -1.0 % 7.9 % 16,538
 
Visa Credit Programs
US $ 1,299 12.7 % 12.7 % $ 1,246 12.8 % 12.8 % 14,886 $ 53 10.4 % 10.4 % 64

International

  1,972 3.9 % 10.9 %   1,795 5.7 % 11.9 % 22,243   177 -11.4 % 1.8 % 747
Visa Inc. 3,271 7.2 % 11.6 % 3,041 8.5 % 12.3 % 37,130 230 -7.2 % 3.7 % 812
 
Visa Debit Programs
US $ 1,725 6.5 % 6.5 % $ 1,292 7.0 % 7.0 % 34,422 $ 433 4.8 % 4.8 % 3,644

International

  2,386 0.3 % 10.9 %   489 7.4 % 17.8 % 12,664   1,897 -1.4 % 9.2 % 12,082
Visa Inc. 4,111 2.8 % 9.0 % 1,781 7.1 % 9.8 % 47,085 2,331 -0.3 % 8.4 % 15,726
 
  For the 12 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 $ 1,894 8.3 % 12.7 % $ 1,285 9.3 % 14.4 % 14,162 $ 609 6.1 % 9.2 % 3,440 642 738
Canada 253 2.6 % 7.6 % 232 2.7 % 7.7 % 2,331 20 1.4 % 6.2 % 45 37 44
CEMEA 1,066 9.7 % 14.6 % 233 23.3 % 29.2 % 4,652 832 6.4 % 11.0 % 4,549 306 307
LAC 1,065 1.9 % 11.0 % 403 4.6 % 15.0 % 9,526 662 0.4 % 8.8 % 4,022 411 439

US

  2,774 8.8 % 8.8 %   2,312 9.6 % 9.6 % 45,356   462 5.0 % 5.0 % 3,605 568 726
Visa Inc. 7,051 7.5 % 10.9 % 4,466 9.3 % 12.1 % 76,027 2,586 4.5 % 8.7 % 15,661 1,963 2,253
 
Visa Credit Programs
US $ 1,153 10.1 % 10.1 % $ 1,105 10.3 % 10.3 % 13,105 $ 48 5.8 % 5.8 % 62 214 283

International

  1,898 6.1 % 11.8 %   1,699 6.8 % 12.8 % 20,415   200 0.7 % 3.4 % 767 474 533
Visa Inc. 3,051 7.6 % 11.1 % 2,803 8.2 % 11.7 % 33,521 248 1.6 % 3.9 % 829 688 817
 
Visa Debit Programs
US $ 1,621 8.0 % 8.0 % $ 1,207 9.0 % 9.0 % 32,250 $ 414 4.9 % 4.9 % 3,542 354 443

International

  2,380 7.0 % 12.9 %   455 17.9 % 24.8 % 10,256   1,924 4.7 % 10.4 % 11,289 922 994
Visa Inc. 4,000 7.4 % 10.7 % 1,662 11.3 % 12.7 % 42,506 2,338 4.8 % 9.3 % 14,832 1,275 1,437
 

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

Mar 31, 2015 2% 8%
Dec 31, 2014 4% 8%
Sep 30, 2014 9% 10%
Jun 30, 2014 6% 7%
Mar 31, 2014 5% 8%
 

12 Months Ended

Mar 31, 2015 5% 8%
Mar 31, 2014 9% 10%
 

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

Mar 31, 2015 16,980 11%
Dec 31, 2014 17,599 10%
Sep 30, 2014 16,991 10%
Jun 30, 2014 16,662 11%
Mar 31, 2014 15,354 11%

 

12 Months Ended

Mar 31, 2015 68,233 10%
Mar 31, 2014 61,802 13%
 

4. CyberSource Transactions

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

  Billable  
Transactions
Period   (millions)   Growth
 

3 Months Ended

Mar 31, 2015 2,113 14%
Dec 31, 2014 2,192 16%
Sep 30, 2014 1,905 12%
Jun 30, 2014 1,890 15%
Mar 31, 2014 1,859 16%

 

12 Months Ended

Mar 31, 2015 8,100 14%
Mar 31, 2014 7,098 21%
 

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, 650-432-2990
globalmedia@visa.com