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

April 30, 2015 at 4:05 PM EDT

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 https://investor.visa.com. A replay of the webcast will be available on the Visa Investor Relations website for 30 days. Investor information, including supplemental financial information, is available on Visa Inc.’s Investor Relations website at https://investor.visa.com.

About Visa

Visa Inc. (NYSE: V) is a global payments technology company that connects consumers, businesses, financial institutions, and governments in more than 200 countries and territories to fast, secure and reliable electronic payments. We operate one of the world's most advanced processing networks — VisaNet — that is capable of handling more than 56,000 transaction messages a second, with fraud protection for consumers and assured payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa's innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, pay ahead of time with prepaid or pay later with credit products. For more information, visit usa.visa.com/about-visa, visacorporate.tumblr.com and @VisaNews.

Forward-Looking Statements:

This Press Release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are identified by words such as "estimates," "expectation," “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