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Visa Inc. Reports Fiscal First Quarter 2016 Results
  • 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