Visa : Earnings Release

Visa Inc. Reports Fiscal Third Quarter 2019 Results

San Francisco, CA, July 23, 2019 - Visa Inc. (NYSE: V)

• Net income of $3.1B or $1.37 per share
• Net revenues of $5.8B, an increase of over 11%
• Growth in underlying business drivers was strong, accelerating from the prior quarter
• Returned $2.7B of capital to shareholders in the form of share repurchases and dividends

Q3 2019 Results

(Ending June 30, 2019)

		YoY
in billions, except percentages and per share data	USD	Change
Net Revenues	$5.8	11%
GAAP Net Income	$3.1	33%
Adjusted Net Income(1)	$3.1	11%
GAAP Earnings Per Share	$1.37	36%
Adjusted Earnings Per Share(1)	$1.37	14%

1. Adjusted Net Income and Adjusted Earnings Per Share exclude a special item in the prior fiscal year. There were no comparable adjustments in the current fiscal year.

Q3 2019 Key Business Drivers

(YoY growth, volume in constant dollars)

Alfred F. Kelly, Jr., Chairman and Chief Executive

Officer, Visa Inc., commented on the results:

"Visa had an excellent third quarter in terms of accelerating business growth while advancing our strategy through acquisitions, investments and partnerships. Recently, Visa closed or signed definitive agreements for four acquisitions that will enhance our capabilities. We also extended some impactful client partnerships, established new meaningful fintech commercial agreements and made significant investments in the business that will broaden the reach of our network. Collectively, these actions will help our growth for years to come."

Payments Volume	Cross-Border Volume	Processed Transactions
+9%	+7%	+12%

Fiscal Third Quarter 2019 - Financial Highlights

GAAP net income in the fiscal third quarter was $3.1 billion or $1.37 per share, increases of 33% and 36%, respectively, over prior year's results. On an adjusted basis, the Company's prior year financial results exclude a $600 million litigation provision and the related tax benefit associated with the interchange multi district litigation case. Excluding this special item, adjusted net income and adjusted earnings per share increased 11% and 14%, respectively, over prior year's results (refer to the accompanying financial tables for further details and a reconciliation of the non-GAAP measures presented). Adjusted earnings per share growth was approximately 18% on a constant-dollar basis. All references to earnings per share assume fully-diluted class A share count.

Net revenues in the fiscal third quarter were $5.8 billion, an increase of over 11%, driven by continued growth in payments volume, cross-border volume and processed transactions. Net revenues growth was approximately 13% on a constant-dollar basis. The Company adopted the new revenue accounting standard effective October 1, 2018, which positively impacted reported net revenues growth by approximately 1.5 percentage points.

Payments volume for the three months ended March 31, 2019, on which fiscal third quarter service revenues are recognized, grew 8% over the prior year on a constant-dollar basis.

Payments volume for the three months ended June 30, 2019, grew 9% over the prior year on a constant-dollar basis.

Cross-border volume growth, on a constant-dollar basis, was 7% for the three months ended June 30, 2019. Excluding cross- border transactions within Europe, which have revenue yields similar to Europe's domestic volume, growth was 9% in the quarter.

Total processed transactions, which represent transactions processed by Visa, for the three months ended June 30, 2019, were 35.4 billion, a 12% increase over the prior year.

Fiscal third quarter service revenues were $2.4 billion, an increase of 10% 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 13% over the prior year to $2.7 billion. International transaction revenues grew 8% over the prior year to $2.0 billion. Other revenues of $342 million rose 49% over the prior year. Client incentives, which are a contra-revenue item, were $1.5 billion and represented 20.9% of gross revenues.

GAAP operating expenses were $1.9 billion for the fiscal third quarter, an 18% decrease over the prior year's results, including the special item. Excluding the $600 million operating expense impact of the special item, adjusted operating expense grew 10% over the prior year, primarily driven by general and administrative and marketing costs. The new revenue accounting standard increased GAAP and adjusted operating expense growth by 2.0 and 2.5 percentage points, respectively.

Non-operating expense was $42 million for the fiscal third quarter, including $9 million of net investment gains.

Effective income tax rate was 19.8% for the quarter ended June 30, 2019.

Cash, cash equivalents and investment securities were $14.1 billion as of June 30, 2019.

The weighted-average number of diluted shares of class A common stock outstanding was 2.27 billion for the quarter ended June 30, 2019.

2

Other Notable Items

On May 8, 2019, Visa acquired control of Earthport and on July 4, 2019, Visa reached full ownership. Earthport provides cross- border payment services to banks, money transfer service providers and businesses. With Earthport, Visa can reach over 99% of consumer and small business bank accounts in 88 countries, including the top 50 markets.

On June 25, 2019, Visa announced it signed a definitive agreement to acquire the token services and ticketing businesses of Rambus. These businesses will enable Visa to extend the security and convenience of tokenization to all types of transactions, including the ability to support domestic card networks and account-based and real-time payments systems.

On June 28, 2019, Visa announced it signed a definitive agreement to acquire Verifi, a leader in technology solutions that reduce chargebacks. Verifi's dispute resolution tools combined with Visa's suite of fraud management and risk solutions will give buyers and sellers intelligent, data-driven capabilities that reduce the time and cost of dispute resolutions and improve the overall customer experience.

On July 17, 2019, Visa announced it completed the acquisition of Payworks, a provider of next-generation payment gateway software for the point-of-sale. This adds in-store payment processing to Cybersource's digital payment platform to create a fully integrated, omnichannel payment acceptance solution that will enable merchants and acquirers to offer a unified payment experience whether their customers are paying in-store,in-app or online.

In connection with the purchase of Visa Europe in June 2016, Visa was required to pay an additional €1.0 billion, plus 4% compound annual interest, on the third anniversary of the closing of the acquisition. In June 2019, Visa paid €1.1 billion in fulfillment of this obligation.

During the three months ended June 30, 2019, Visa repurchased 12.9 million shares of class A common stock, at an average price of $163.59 per share, using $2.1 billion of cash on hand. In the nine months ended June 30, 2019, Visa repurchased a total of 43.8 million shares of class A common stock, at an average price of $147.83 per share, using $6.5 billion of cash on hand. Visa had $6.2 billion of authorized funds available for share repurchase as of June 30, 2019.

On July 15, 2019, the board of directors declared a quarterly cash dividend of $0.25 per share of class A common stock (determined in the case of class B and C common stock and series B and C convertible participating preferred stock on an as- converted basis) payable on September 3, 2019, to all holders of record as of August 16, 2019.

Financial Outlook for Fiscal Full-Year 2019

• Annual net revenues growth: Low double-digits on a nominal-dollar basis, with approximately 1.5 percentage points of negative foreign currency impact and over 1.0 percentage point of positive impact from the new revenue accounting standard
• Client incentives as a percentage of gross revenues: 21.5% to 22.0% range
• Annual operating expense growth: Low single-digit decrease on a GAAP basis and an approximately 10% increase adjusted for special items in fiscal 2018 (see note below). GAAP and non-GAAP growth includes an approximately 2.5 percentage point increase from the new revenue accounting standard
• Effective tax rate: 19.5% to 20.0% range
• Annual diluted class A common stock earnings per share growth: Low twenties on a GAAP nominal-dollar basis and mid-to- high teens on an adjusted, non-GAAPnominal-dollar basis (see note below). Both include approximately 2.0 percentage points of negative foreign currency impact

Note: Annual adjusted operating expense growth is derived from adjusted full-year 2018 operating expenses of $6.9 billion. Annual adjusted diluted class A common stock earnings per share growth is derived from adjusted full-year 2018 earnings per share results of $4.61. Refer to the accompanying financial tables for details and a reconciliation of the adjusted fiscal full-year 2018 results.

3

Fiscal Third Quarter 2019 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 for 30 days. Investor information, including supplemental financial information, is also available at http://investor.visa.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 that relate to, among other things, our future operations, prospects, developments, strategies, business growth and financial outlook for fiscal full-year 2019. Forward-looking statements generally are identified by words such as "believes," "estimates," "expects," "intends," "may," "projects," "outlook", "could," "should," "will," "continue" and other similar expressions. All statements other than statements of historical fact could be forward-looking statements, which speak only as of the date they are made, are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, many of which are beyond our control and are difficult to predict.

Actual results could differ materially from those expressed in, or implied by, our forward-looking statements due to a variety of factors, including, but not limited to:

• increased oversight and regulation of the global payments industry and our business;
• impact of government-imposed restrictions on international payment systems;
• outcome of tax, litigation and governmental investigation matters;
• increasingly intense competition in the payments industry, including competition for our clients and merchants;
• proliferation and continuous evolution of new technologies and business models;
• our ability to maintain relationships with our clients, merchants and other third parties;
• brand or reputational damage;
• management changes;
• impact of global economic, political, market and social events or conditions;
• exposure to loss or illiquidity due to settlement guarantees;
• uncertainty surrounding the impact of the United Kingdom's withdrawal from the European Union;
• a disruption, failure, breach or cyber-attack of our networks or systems;
• our ability to successfully integrate and manage our acquisitions and other strategic investments; and
• other factors 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, 2018, and our subsequent reports on Forms 10-Q and 8-K.

Except as required by law, we do not intend to update or revise any forward-looking statements as a result of new information, future events or otherwise.

About Visa Inc.

Visa Inc. (NYSE: V) is the world's leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network - enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. Our relentless focus on innovation is a catalyst for the rapid growth of digital commerce on any device for everyone, everywhere. As the world moves from analog to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce. For more information, visit usa.visa.com/about-visa.html, usa.visa.com/visa- everywhere/blog.html and @VisaNews.

	Contacts	Investor Relations	Media Relations
	Mike Milotich, 650-432-7644,	Will Stickney, 415-805-4892,
		[e-mail]	[e-mail]

4

Fiscal Third Quarter 2019 - Financial Summary

Q3 FISCAL 2019 INCOME STATEMENT SUMMARY

(in millions, except percentages and per		Three Months Ended	YoY Change
	June 30, 2019
share data)
	GAAP		Adjusted	GAAP	Adjusted
Revenues
Service revenues	$	2,405	$	2,405	10%	10%
Data processing revenues		2,662		2,662	13%	13%
International transaction revenues		1,977		1,977	8%	8%
Other revenues		342		342	49%	49%
Client incentives		(1,546)		(1,546)	13%	13%
Net revenues		5,840		5,840	11%	11%
Operating Expenses
Personnel		872		872	2%	2%
Marketing		282		282	18%	18%
Network and processing		184		184	9%	9%
Professional fees		113		113	1%	1%
Depreciation and amortization		165		165	9%	9%
General and administrative		315		315	37%	37%
Litigation provision		1		1	(100%)	NM
Total operating expenses		1,932		1,932	(18%)	10%
Operating income		3,908		3,908	35%	12%
Non-operating expense		(42)		(42)	(43%)	(43%)
Effective tax rate		19.8%		19.8%	+3 ppt	+2 ppt
Net income	$	3,101	$	3,101	33%	11%
Earnings per share	$	1.37	$	1.37	36%	14%
NM - Not Meaningful

Q3 FISCAL 2019 KEY BUSINESS DRIVERS

	YoY Change
	Constant	Nominal
Payments volume		9%	5%
Cross-border volume		7%	2%
Processed transactions		12%	12%

5

Visa Inc. Consolidated Balance Sheets (unaudited)

					June 30,				September 30,
					2019					2018
					(in millions, except par value data)
	Assets
	Cash and cash equivalents	$	7,912		$	8,162
	Restricted cash equivalents-U.S. litigation escrow		902					1,491
	Investment securities		3,265					3,547
	Settlement receivable		1,689					1,582
	Accounts receivable		1,531					1,208
	Customer collateral		1,668					1,324
	Current portion of client incentives		690					340
	Prepaid expenses and other current assets		648					562
			Total current assets		18,305					18,216
	Investment securities		2,918					4,082
	Client incentives		1,854					538
	Property, equipment and technology, net		2,549					2,472
	Goodwill		15,313					15,194
	Intangible assets, net		27,272					27,558
	Other assets		2,038					1,165
			Total assets	$	70,249				$	69,225
	Liabilities
	Accounts payable	$	150		$	183
	Settlement payable		2,420					2,168
	Customer collateral		1,668					1,325
	Accrued compensation and benefits		687					901
	Client incentives		3,690					2,834
	Accrued liabilities		1,358					1,160
	Deferred purchase consideration		-				1,300
	Accrued litigation		856					1,434
			Total current liabilities		10,829					11,305
	Long-term debt		16,694					16,630
	Deferred tax liabilities		4,930					4,618
	Other liabilities		2,801					2,666
			Total liabilities		35,254					35,219
	Equity
	Preferred stock, $0.0001 par value, 25 shares authorized and 5 shares issued and outstanding as follows:
		Series A convertible participating preferred stock, none issued (the "class A equivalent preferred stock")		-				-
		Series B convertible participating preferred stock, 2 shares issued and outstanding at June 30, 2019 and September		2,285					2,291
		30, 2018 (the "UK&I preferred stock")
		Series C convertible participating preferred stock, 3 shares issued and outstanding at June 30, 2019 and September		3,177					3,179
		30, 2018 (the "Europe preferred stock")
	Class A common stock, $0.0001 par value, 2,001,622 shares authorized, 1,729 and 1,768 shares issued and outstanding at		-				-
	June 30, 2019 and September 30, 2018, respectively
	Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at June 30, 2019 and		-				-
	September 30, 2018
	Class C common stock, $0.0001 par value, 1,097 shares authorized, 12 shares issued and outstanding at June 30, 2019 and		-				-
	September 30, 2018, respectively
	Right to recover for covered losses		(169)				(7)
	Additional paid-in capital		16,552					16,678
	Accumulated income		13,040					11,318
	Accumulated other comprehensive income (loss), net:
		Investment securities		6					(17)
		Defined benefit pension and other postretirement plans		(66)				(61	)
		Derivative instruments		24					60
		Foreign currency translation adjustments		146					565
			Total accumulated other comprehensive income (loss), net		110				547
			Total equity		34,995					34,006
			Total liabilities and equity	$	70,249				$	69,225

6

Visa Inc. Consolidated Statements of Operations (unaudited)

					Three Months Ended				Nine Months Ended
						June 30,					June 30,
				2019						2018				2019				2018
											(in millions, except per share data)
	Net revenues		$		5,840		$	5,240	$	16,840	$	15,175
	Operating Expenses
	Personnel			872					852				2,573				2,355
	Marketing				282					240				799				724
	Network and processing			184					169				528				498
	Professional fees				113					112				305				312
	Depreciation and amortization			165					152				484				450
	General and administrative				315					230				855				688
	Litigation provision			1					600				30				600
	Total operating expenses				1,932					2,355				5,574				5,627
	Operating income			3,908					2,885				11,266				9,548
	Non-operating Income (Expense)
	Interest expense, net				(128	)				(155)				(413)				(462)
	Investment income and other			86					82				320				182
	Total non-operating income (expense)				(42)					(73)				(93)				(280)
	Income before income taxes			3,866					2,812				11,173				9,268
	Income tax provision				765					483				2,118				1,812
	Net income	$		3,101				$	2,329			$	9,055			$	7,456
	Basic Earnings Per Share
		Class A common stock		$		1.37		$	1.00	$	3.98	$	3.20
		Class B common stock	$		2.23				$	1.66			$	6.49			$	5.27
		Class C common stock		$		5.48		$	4.02	$	15.92	$	12.78
	Basic Weighted-average Shares Outstanding
		Class A common stock			1,735					1,784				1,748				1,798
		Class B common stock				245					245				245				245
		Class C common stock			12					12				12				12
	Diluted Earnings Per Share
		Class A common stock		$		1.37		$	1.00	$	3.97	$	3.19
		Class B common stock	$		2.23				$	1.65			$	6.48			$	5.26
		Class C common stock		$		5.48		$	4.01	$	15.90	$	12.76
	Diluted Weighted-average Shares Outstanding
		Class A common stock			2,265					2321				2,278				2,337
		Class B common stock				245					245				245				245
		Class C common stock				12					12				12				12

7

Visa Inc. Consolidated Statements of Cash Flows (unaudited)

Nine Months Ended

June 30,

			2019						2018
					(in millions)
	Operating Activities
	Net income	$		9,055	$		7,456
	Adjustments to reconcile net income to net cash provided by operating activities:
	Client incentives				4,480				3,989
	Share-based compensation				321					242
	Depreciation and amortization of property, equipment, technology and intangible assets				484				450
	Deferred income taxes				234					(1,133	)
	VE territory covered loses incurred				(170)				(9)
	Other				(204)					(38	)
	Change in operating assets and liabilities:
	Settlement receivable				(127)					(239	)
	Accounts receivable				(319)				(82)
	Client incentives				(4,778)					(3,483	)
	Other assets				(172)				97
	Accounts payable				(22)					(18	)
	Settlement payable				280				379
	Accrued and other liabilities				257					1,408
	Accrued litigation				(577)				446
	Net cash provided by operating activities				8,742					9,465
	Investing Activities
	Purchases of property, equipment and technology				(507)				(523	)
	Proceeds from sales of property, equipment and technology				-				14
	Investment securities:
	Purchases				(2,321)				(3,354)
	Proceeds from maturities and sales				3,870					2,789
	Acquisitions, net of cash and restricted cash acquired				(136)				(196)
	Purchases of / contributions to other investments				(482)					(35)
	Proceeds / distributions from other investments				10					-
	Other investing activities				(21)					-
	Net cash provided by (used in) investing activities				413				(1,305)
	Financing Activities
	Repurchase of class A common stock				(6,480)				(5,604)
	Repayments of long-term debt				-					(1,750)
	Dividends paid				(1,706)				(1,435)
	Cash proceeds from issuance of common stock under employee equity plans				127					135
	Restricted stock and performance-based shares settled in cash for taxes				(106)				(90)
	Net cash used in financing activities				(9,401)					(8744)
	Effect of exchange rate changes on cash and cash equivalents				(62)				(89)
	Decrease in cash, cash equivalents, restricted cash and restricted cash equivalents				(308)					(673)
	Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period				10,977					12,011
	Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period		$		10,669		$		11,338
	Supplemental Disclosure
	Income taxes paid, net of refunds	$		1,992		$		1,649
	Interest payments on debt	$		503	$		510
	Accruals related to purchases of property, equipment and technology	$		87	$		35

8

Visa Inc. Fiscal 2019 and 2018 Quarterly Results of Operations (unaudited)

						Fiscal 2019 Quarter Ended				Fiscal 2018 Quarter Ended
				June 30,						March 31,				December 31,			September 30,				June 30,
			2019						2019				2018			2018				2018
														(in millions)
	Net revenues		$		5,840		$	5,494	$	5,506	$	5,434	$	5,240
	Operating Expenses
	Personnel			872					894				807			815				852
	Marketing				282					241				276			264				240
	Network and processing			184					171				173			188				169
	Professional fees				113					101				91			134				112
	Depreciation and amortization			165					160				159			163				152
	General and administrative				315					264				276			457				230
	Litigation provision			1					22				7			7				600
	Total operating expenses				1,932					1,853				1,789			2,028				2,355
	Operating income			3,908					3,641				3,717			3,406				2,885
	Non-operating Income (Expense)
	Interest expense, net				(128)					(140)				(145)			(150)				(155	)
	Investment income and other			86					176				58			282				82
	Total non-operating income (expense)				(42)					36				(87)			132				(73)
	Income before income taxes			3,866					3,677				3,630			3,538				2,812
	Income tax provision				765					700				653			693				483
	Net income		$		3,101				$	2,977			$	2,977		$	2,845			$	2,329

9

Visa Inc. Reconciliation of Non-GAAP Financial Results (unaudited)

Our financial results for the three and nine months ended June 30, 2018 reflected the impact of certain significant items that we believe were not indicative of our operating performance in these or future periods, as they were either non-recurring or had no cash impact. As such, we believe the presentation of adjusted financial results excluding the following items provides a clearer understanding of our operating performance for the periods presented. There were no comparable adjustments recorded for the three and nine months ended June 30, 2019.

• Litigation provision. During the three and nine months ended June 30, 2018, we recorded a litigation provision of $600 million and related tax benefits of $137 million, associated with the interchange multidistrict litigation. The tax impact is determined by applying applicable federal and state tax rates to the litigation provision. Under the U.S. retrospective responsibility plan, we recover the monetary liabilities related to the U.S. covered litigation through a reduction to the conversion rate of our class B common stock to shares of class A common stock.
• Remeasurement of deferred tax balances. During the nine months ended June 30, 2018, in connection with the Tax Cuts and Jobs Act's reduction of the corporate income tax rate, we remeasured our net deferred tax liabilities as of the enactment date, resulting in the recognition of a non-recurring,non-cash income tax benefit of $1.1 billion.
• Transition tax on foreign earnings. During the nine months ended June 30, 2018, in connection with the Tax Cuts and Jobs Act's requirement that we include certain untaxed foreign earnings of non-U.S. subsidiaries in our fiscal 2018 taxable income, we recorded a one-time transition tax estimated to be approximately $1.1 billion.

Adjusted financial results 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 financial measures, calculated in accordance with U.S. GAAP, to our respective non-GAAP adjusted financial measures for the three and nine months ended June 30, 2018. There were no comparable adjustments recorded for the three and nine months ended June 30, 2019.

								Three Months Ended June 30, 2018
(in millions, except percentages and per share		Operating		Operating				Income Before			Income Tax		Effective					Diluted
		Margin							Income Tax					Earnings Per
data)		Expenses		(1),(2)				Income Taxes			Provision		Rate(1)			Net Income			Share(1)
As reported	$	2,355		55	%	$	2,812	$	483		17.2 %	$	2,329	$	1.00
Litigation provision		(600)		11	%			600			137					463			0.20
As adjusted	$	1,755		67	%	$	3,412	$	620	18.2 %	$	2,792	$	1.20
								Nine Months Ended June 30, 2018
(in millions, except percentages and per share		Operating		Operating				Income Before			Income Tax		Effective					Diluted
		Margin							Income Tax					Earnings Per
data)		Expenses		(1),(2)				Income Taxes			Provision		Rate(1)			Net Income			Share(1)
As reported	$	5,627		63	%	$	9,268	$	1,812		19.5 %	$	7,456	$	3.19
Litigation provision		(600)	4	%			600			137					463			0.20
Remeasurement of deferred tax balances		-		- %			-			1,133					(1,133)			(0.49)
Transition tax on foreign earnings		-		- %			-			(1,147)					1,147			0.49
As adjusted	$	5,027		67	%	$	9,868	$	1,935	19.6 %	$	7,933	$	3.39

1. Figures in the table may not recalculate exactly due to rounding. Effective income tax rate, diluted earnings per share and their respective totals are calculated based on unrounded numbers.
2. Operating margin is calculated as operating income divided by net operating revenues

10

Visa Inc. Reconciliation of Non-GAAP Financial Results - continued (unaudited)

Our financial outlook for fiscal full-year 2019 annual operating expense growth and annual diluted class A common stock earnings per share growth are based on adjusted non-GAAP fiscal full-year 2018 results, which are reconciled to their closest comparable U.S. GAAP financial measure below.

Our financial results during the twelve months ended September 30, 2018 reflected the impact of certain significant items that we believe were not indicative of our ongoing operating performance in these or future periods as they were either non-recurring or had no cash impact. As such, we believe the presentation of adjusted financial results excluding the following items provides a clearer understanding of our operating performance for the periods presented.

• Charitable contribution. During the three months ended September 30, 2018, we donated available-for-sale investment securities to the Visa Foundation and recognized a non-cash general and administrative expense of $195 million, before tax, and recorded $193 million of realized gain on the donation of these investments as non-operating income. Net of the related cash tax benefit of $51 million, determined by applying applicable tax rates, adjusted net income decreased by $49 million.
• Litigation provision. During the twelve months ended September 30, 2018, we recorded a litigation provision of $600 million and related tax benefits of $137 million associated with the interchange multidistrict litigation. The tax impact is determined by applying applicable federal and state tax rates to the litigation provision. Under the U.S. retrospective responsibility plan, we recover the monetary liabilities related to the U.S. covered litigation through a reduction to the conversion rate of our class B common stock to shares of class A common stock.
• Remeasurement of deferred tax balances. During the twelve months ended September 30, 2018, in connection with the Tax Cuts and Jobs Act's reduction of the corporate income tax rate, we remeasured our net deferred tax liabilities as of the enactment date, resulting in the recognition of a non-recurring,non-cash income tax benefit of $1.1 billion.
• Transition tax on foreign earnings. During the twelve months ended September 30, 2018, in connection with the Tax Cuts and Jobs Act's requirement that we include certain untaxed foreign earnings of non-U.S. subsidiaries in our fiscal 2018 taxable income, we recorded a one-time transition tax estimated to be approximately $1.1 billion.

Adjusted financial results 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 financial measures, calculated in accordance with U.S. GAAP, to our respective non-GAAP adjusted financial measures for the twelve months ended September 30, 2018.

								Twelve Months Ended September 30, 2018
						Operating	Non-			Income						Effective					Diluted
	(in millions, except percentages and per share		Operating		operating					Income Tax
			Margin	(Expense)			Before			Income Tax		Net Income			Earnings Per
	data)		Expenses		(1),(2)		Income		Income Taxes			Provision			Rate(1)					Share(1)
	As reported		$	7,655	63 %	(148 )	$	12,806		$	2,505			19.6 %	$	10,301	$	4.42
	Charitable contribution		(195)	1 %	(193 )			2			51						(49 )			(0.02 )
	Litigation provision			(600)	3 %	-			600			137						463			0.20
	Remeasurement of deferred tax liability		-		- %	-			-			1,133						(1,133)			(0.49 )
	Transition tax on foreign earnings			-		- %	-			-			(1,147)						1,147			0.49
	As adjusted
	$	6,860		67 %	(341 )	$	13,408	$	2,679			20.0 %	$	10,729	$	4.61

1. Figures in the table may not recalculate exactly due to rounding. Operating margin, effective income tax rate, diluted earnings per share and their respective totals are calculated based on unrounded numbers.
2. Operating margin is calculated as operating income divided by total operating revenues.

11

Operational Performance Data

The tables below provide information regarding the available operational results for the 3 months ended June 30, 2019, as well as the prior four quarterly reporting periods and the 12 months ended June 30, 2019 and 2018, for cards and other form factors carrying the Visa, Visa Electron, V PAY 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 and other form factors carrying the Visa, Visa Electron, V PAY and Interlink brands and excludes Europe co-badged volume and transactions for all periods. 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 June 30, 2019
				Total	Growth	Growth	Payments	Growth	Growth	Payments	Cash	Growth	Growth	Cash	Accounts	Cards
				Volume	(Nominal	(Constant	Volume	(Nominal	(Constant	Transactions	Volume	(Nominal	(Constant	Transactions
				($ billions)	USD)	USD)	($ billions)	USD)	USD)	(millions)	($ billions)	USD)	USD)	(millions)	(millions)	(millions)
All Visa Credit & Debit					(0.4%)	5.4%	7,496		$117	(7.9%)	(5.8%)	987		3		5
Asia Pacific	$601	(1.9%)	3.0%	$484
Canada	74	1.6%	5.6%	69	2.0%	6.0%	1,014		6	(3.0%)	0.7%	11		63		63
CEMEA	297	5.4%	8.9%	125	18.3%	22.1%	5,123		172	(2.3%)	1.0%	1,244		3		3
LAC	233	(2.6%)	7.5%	104	2.4%	15.8%	3,612		130	(6.3%)	1.6%	1,197		2		2
US	1,166	7.7%	7.7%	1,020	8.8%	8.8%	18,620		146	1.1%	1.1%	940		6		7
Europe	560	(3.2%)	4.6%	429	0.2%	7.8%	10,328		130	(13.2%)	(4.8%)	987		19		23
Visa Inc.	2,931	2.2%	6.2%	2,230	4.9%	8.7%	46,193		701	(5.6%)	(1.2%)	5,366		97		102
Visa Credit Programs
US	$542	6.9%	6.9%	$528	7.0%	7.0%	6,400		$14	4.2%	4.2%	15		-		-
International		739	(0.8%)	5.9%	691	(0.4%)	6.4%	10,735		49	(6.8%)	(1.1%)	218		976		1,128
Visa Inc.	1,281	2.3%	6.3%	1,218	2.7%	6.7%	17,135		63	(4.5%)	0.0%	233		976		1,128
Visa Debit Programs
US	$624	8.5%	8.5%	$493	10.7%	10.7%	12,220		$132	0.7%	0.7%	925		-		-
International	1,026	(1.4%)	4.6%	519	5.1%	11.8%	16,838		507	(7.2%)	(1.8%)	4,207		2,053		2,252
Visa Inc.	1,650	2.1%	6.0%	1,012	7.7%	11.3%	29,058		638	(5.7%)	(1.3%)	5,133		2,053		2,252
								For the 3 Months Ended March 31, 2019
				Total	Growth	Growth	Payments	Growth	Growth	Payments	Cash	Growth	Growth	Cash	Accounts	Cards
				Volume	(Nominal	(Constant	Volume	(Nominal	(Constant	Transactions	Volume	(Nominal	(Constant	Transactions
				($ billions)	USD)	USD)	($ billions)	USD)	USD)	(millions)	($ billions)	USD)	USD)	(millions)	(millions)	(millions)
All Visa Credit & Debit
Asia Pacific	$598	(1.4%)	3.6%	$477	0.7%	6.3%	6,942		$121	(9.1%)	(5.6%)	1,002		933		1,028
Canada	65	(1.1%)	3.4%	59	(0.7%)	3.8%	878		5	(5.5%)	(1.2%)	11		62		69
CEMEA	272	1.0%	9.4%	111	11.5%	22.1%	4,474		161	(5.1%)	2.0%	1,144		353		349
LAC	230	(9.5%)	5.9%	101	(4.7%)	14.1%	3,439		129	(12.9%)	0.1%	1,148		429		465
US	1,071	6.9%	6.9%	930	7.9%	7.9%	16,970		141	0.9%	0.9%	888		758		917
Europe	529	(5.1%)	4.4%	406	(2.6%)	6.3%	9,458		124	(12.5%)	(1.2%)	926			502		551
Visa Inc.	2,765	0.4%	5.8%	2,085	3.3%	8.0%	42,160		680	(7.7%)	(0.6%)	5,120		3,037		3,378
Visa Credit Programs
US	$488	6.1%	6.1%	$473	6.3%	6.3%	5,705		$15	0.6%	0.6%	14		271		336
International	715	(1.3%)	6.5%	668	(0.8%)	7.0%	9,896		47	(7.7%)	0.0%	203			704		788
Visa Inc.	1,203	1.6%	6.3%	1,141	2.0%	6.7%	15,601		62	(5.9%)	0.2%	217		974		1,123
Visa Debit Programs
US	$583	7.7%	7.7%	$457	9.7%	9.7%	11,265		$126	1.0%	1.0%	874		487		581
International	979	(4.8%)	4.0%	487	0.9%	9.8%	15,294		492	(9.9%)	(1.1%)	4,028			1,576		1,674
Visa Inc.	1,562	(0.5%)	5.4%	944	5.0%	9.7%	26,559		618	(7.8%)	(0.7%)	4,903		2,063		2,255

12

					For the 3 Months Ended December 31, 2018
		Total	Growth	Growth	Payments	Growth	Growth	Payments	Cash	Growth	Growth		Cash	Accounts	Cards
		Volume	(Nominal	(Constant	Volume	(Nominal	(Constant	Transactions	Volume	(Nominal	(Constant	Transactions
		($ billions)	USD)	USD)	($ billions)	USD)	USD)	(millions)	($ billions)	USD)	USD)		(millions)	(millions)	(millions)
All Visa Credit & Debit
Asia Pacific	$616	2.7%	6.6%	$493	5.1%	9.1%	7,387		$123	(5.8%)	(2.4%)	1,058		921		1,020
Canada	76	5.1%	9.0%	70	5.2%	9.1%	995		6	3.9%	7.8%	11		63		69
CEMEA	287	1.9%	8.6%	114	14.2%	22.3%	4,504		173	(4.8%)	1.1%	1,267		348		343
LAC	252	(7.4%)	8.8%	108	(3.4%)	16.7%	3,545		144	(10.1%)	3.5%	1,276		426		464
US	1,121	9.5%	9.5%	979	10.5%	10.5%	17,887		142	3.0%	3.0%	925		754		914
Europe		570	1.0%	7.2%	429	3.0%	8.5%	9,988		141	(4.6%)	3.6%	1,061		502		549
Visa Inc.	2,922	3.8%	8.3%	2,194	7.0%	10.6%	44,306		729	(4.6%)	1.9%	5,598		3,015		3,359
Visa Credit Programs
US	$533	8.4%	8.4%	$519	8.5%	8.5%	6,329		$14	4.7%	4.7%	15		273		337
International		752	2.3%	8.7%	701	2.9%	9.4%	10,414		51	(5.1%)	0.5%	220		701		782
Visa Inc.	1,285	4.8%	8.6%	1,220	5.2%	9.0%	16,743		65	(3.1%)	1.4%	236		974		1,119
Visa Debit Programs
US	$588	10.5%	10.5%	$460	12.8%	12.8%	11,558		$127	2.8%	2.8%	909		481		576
International		1,049	(0.6%)	6.7%	513	6.3%	12.4%	16,005		536	(6.4%)	1.7%	4,453		1,560		1,663
Visa Inc.	1,637	3.1%	8.0%	974	9.3%	12.6%	27,563		663	(4.7%)	1.9%	5,362		2,041		2,240
					For the 3 Months Ended September 30, 2018
		Total	Growth	Growth	Payments	Growth	Growth	Payments	Cash	Growth	Growth		Cash	Accounts	Cards
		Volume	(Nominal	(Constant	Volume	(Nominal	(Constant	Transactions	Volume	(Nominal	(Constant	Transactions
		($ billions)	USD)	USD)	($ billions)	USD)	USD)	(millions)	($ billions)	USD)	USD)		(millions)	(millions)	(millions)
All Visa Credit & Debit																920		1,018
Asia Pacific	$599	5.1%	8.0%	$476	7.5%	10.2%	7,062		$123	(3.3%)	0.3%	1,041
Canada	71	3.4%	8.5%	66	3.5%	8.6%	939		6	1.7%	6.7%	11		60		66
CEMEA	277	1.8%	7.9%	106	13.3%	20.8%	4,211		171	(4.3%)	1.2%	1,227		353		345
LAC	231	(9.5%)	7.8%	97	(5.3%)	16.0%	3,284		134	(12.3%)	2.6%	1,198		436		472
US	1,090	11.0%	11.0%	945	12.5%	12.5%	17,508		145	2.1%	2.1%	956		739		898
Europe		568	2.3%	7.6%	422	4.8%	9.1%	9,478		145	(4.5%)	3.4%	1,089			499		548
Visa Inc.	2,835	4.9%	9.0%	2,112	8.6%	11.7%	42,483		723	(4.5%)	1.9%	5,522		3,007		3,347
Visa Credit Programs																269		336
US	$513	10.9%	10.9%	$499	11.2%	11.2%	6,152		$14	0.7%	0.7%	16
International		727	3.5%	9.2%	676	4.1%	9.9%	10,000		51	(4.2%)	0.4%	220			692		771
Visa Inc.	1,241	6.4%	9.9%	1,175	7.0%	10.5%	16,152		66	(3.2%)	0.4%	236		961		1,107
Visa Debit Programs																470		562
US	$577	11.1%	11.1%	$446	14.0%	14.0%	11,356		$130	2.3%	2.3%	941
International		1,018	0.0%	6.9%	491	7.8%	12.6%	14,976		527	(6.2%)	2.1%	4,346			1,576		1,678
Visa Inc.	1,594	3.8%	8.4%	937	10.7%	13.3%	26,332		657	(4.7%)	2.1%	5,286		2,046		2,239
						For the 3 Months Ended June 30, 2018
		Total	Growth	Growth	Payments	Growth	Growth	Payments	Cash	Growth	Growth		Cash	Accounts	Cards
		Volume	(Nominal	(Constant	Volume	(Nominal	(Constant	Transactions	Volume	(Nominal	(Constant	Transactions
		($ billions)	USD)	USD)	($ billions)	USD)	USD)	(millions)	($ billions)	USD)	USD)		(millions)	(millions)	(millions)
All Visa Credit & Debit
Asia Pacific	$613	13.3%	9.2%	$485	17.0%	12.2%	6,700		$128	1.1%	(0.5%)	1,006		902		1,002
Canada	73	13.6%	9.2%	67	13.8%	9.4%	922		6	11.2%	6.9%	11		59		65
CEMEA	282	4.4%	8.0%	105	18.3%	22.6%	4,054		176	(2.4%)	0.8%	1,238		347		339
LAC	240	(3.4%)	6.8%	101	1.6%	13.8%	3,199		138	(6.7%)	2.4%	1,180		430		466
US	1,082	10.0%	10.0%	938	11.3%	11.3%	17,276		144	2.1%	2.1%	994		707		853
Europe		578	13.0%	7.2%	428	15.2%	8.7%	9,076		150	7.1%	3.1%		1,096			498		547
Visa Inc.	2,868	9.5%	8.8%	2,125	13.2%	11.6%	41,226		742	0.1%	1.6%	5,525		2,943		3,272
Visa Credit Programs
US	$507	10.0%	10.0%	$493	10.5%	10.5%	5,990		$14	(4.5%)	(4.5%)	15		265		333
International		745	12.7%	10.1%	693	13.6%	11.0%	9,709		52	2.3%	(0.1%)		219			685		764
Visa Inc.	1,252	11.6%	10.1%	1,186	12.3%	10.8%	15,699		66	0.8%	(1.1%)	234		950		1,097
Visa Debit Programs
US	$576	10.0%	10.0%	$445	12.3%	12.3%	11,286		$131	2.8%	2.8%	979		442		520
International		1,040	6.8%	6.6%	494	16.5%	12.8%	14,242		546	(0.6%)	1.6%		4,312			1,551		1,655
Visa Inc.	1,616	7.9%	7.9%	939	14.5%	12.6%	25,528		677	0.0%	1.9%	5,291		1,993		2,175

13

							For the 12 Months Ended June 30, 2019
			Total	Growth	Growth	Payments	Growth	Growth	Payments	Cash	Growth	Growth	Cash	Accounts	Cards
			Volume	(Nominal	(Constant	Volume	(Nominal	(Constant	Transactions	Volume	(Nominal	(Constant	Transactions
			($ billions)	USD)	USD)	($ billions)	USD)	USD)	(millions)	($ billions)	USD)	USD)	(millions)	(millions)	(millions)
All Visa Credit & Debit
Asia Pacific	$2,414	1.0%	5.3%	$1,929	3.1%	7.7%	28,887		$485	(6.5%)	(3.4%)	4,088		3		5
Canada	286	2.3%	6.7%	264	2.6%	6.9%	3,827		22	(0.8%)	3.4%	44		63		63
CEMEA	1,133	2.6%	8.7%	456	14.4%	21.9%	18,312		677	(4.1%)	1.3%	4,882		3		3
LAC	946	(7.3%)	7.5%	410	(2.8%)	15.7%	13,880		536	(10.5%)	2.0%	4,820		2		2
US	4,448	8.8%	8.8%	3,875	9.9%	9.9%	70,985		573	1.8%	1.8%	3,710		6		7
Europe	2,227	(1.3%)	6.0%	1,686	1.3%	7.9%	39,253		541	(8.7%)	0.3%	4,062		1,524		1,671
Visa Inc.	11,454	2.8%	7.3%	8,621	5.9%	9.7%	175,143		2,833	(5.6%)	0.5%	21,606		1,601		1,750
Visa Credit Programs
US	$2,076	8.1%	8.1%	$2,019	8.2%	8.2%	24,585		$57	2.5%	2.5%	60		-		-
International	2,934	0.9%	7.6%	2,736	1.4%	8.2%	41,045		198	(5.9%)	0.0%	862		976		1,128
Visa Inc.	5,010	3.7%	7.8%	4,755	4.2%	8.2%	65,631		255	(4.2%)	0.5%	922		976		1,128
Visa Debit Programs
US	$2,371	9.4%	9.4%	$1,856	11.7%	11.7%	46,399		$515	1.7%	1.7%	3,650		-		-
International	4,072	(1.7%)	5.6%	2,010	5.0%	11.7%	63,113		2,062	(7.4%)	0.2%	17,034		2,053		2,252
Visa Inc.	6,443	2.1%	6.9%	3,866	8.1%	11.7%	109,512		2,578	(5.7%)	0.5%	20,684		2,053		2,252
							For the 12 Months Ended June 30, 2018
			Total	Growth	Growth	Payments	Growth	Growth	Payments	Cash	Growth	Growth	Cash	Accounts	Cards
			Volume	(Nominal	(Constant	Volume	(Nominal	(Constant	Transactions	Volume	(Nominal	(Constant	Transactions
			($ billions)	USD)	USD)	($ billions)	USD)	USD)	(millions)	($ billions)	USD)	USD)	(millions)	(millions)	(millions)
All Visa Credit & Debit
Asia Pacific	$2,389	10.9%	7.3%	$1,871	13.6%	10.0%	25,418		$519	2.2%	(1.2%)	3,954		902		1,002
Canada	280	13.5%	8.8%	258	13.6%	8.9%	3,468		22	12.4%	7.7%	44		59		65
CEMEA	1,105	9.8%	8.5%	398	24.9%	22.6%	14,926		706	2.8%	2.0%	4,952		347		339
LAC	1,020	4.6%	6.1%	422	9.3%	11.9%	12,425		599	1.6%	2.5%	4,721		430		466
US	4,089	9.4%	9.4%	3,526	10.4%	10.4%	65,769		563	3.5%	3.5%	3,932		707		853
Europe	2,256	14.5%	7.6%	1,664	16.8%	9.4%	34,400		592	8.5%	2.6%	4,234			498		547
Visa Inc.	11,139	10.4%	8.2%	8,139	13.1%	10.6%	156,405		3,000	3.7%	2.0%	21,837		2,943		3,272
Visa Credit Programs
US	$1,921	9.9%	9.9%	$1,865	10.4%	10.4%	22,981		$56	(4.1%)	(4.1%)	63		265		333
International	2,909	11.9%	8.6%	2,698	12.6%	9.4%	37,157		211	3.9%	(0.5%)	878		685		764
Visa Inc.	4,830	11.1%	9.1%	4,563	11.7%	9.8%	60,138		266	2.1%	(1.3%)	941		950		1,097
Visa Debit Programs
US	$2,168	8.9%	8.9%	$1,661	10.3%	10.3%	42,788		$507	4.4%	4.4%	3,869		442		520
International	4,141	10.3%	6.7%	1,915	19.1%	13.0%	53,480		2,227	3.8%	1.8%	17,027		1,551		1,655
Visa Inc.	6,309	9.8%	7.5%	3,576	14.9%	11.7%	96,267		2,734	3.9%	2.3%	20,896		1,993		2,175

14

2. Cross-Border Volume

The table below represents cross-border volume growth for cards and other form factors carrying the Visa, Visa Electron, V PAY, 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
Jun 30, 2019	2%	7%
Mar 31, 2019	(2%)	4%
Dec 31, 2018	3%	7%
Sep 30, 2018	8%	10%
Jun 30, 2018	15%	10%
12 Months Ended
Jun 30, 2019	3%	7%

3. Visa Processed Transactions

The table below represents transactions using cards and other form factors carrying the Visa, Visa Electron, V PAY, Interlink and PLUS brands processed on Visa's networks.

	Processed
Period	Transactions	Growth
(millions)
3 Months Ended	35,428	12%
Jun 30, 2019
Mar 31, 2019	32,544	11%
Dec 31, 2018	33,931	11%
Sep 30, 2018	32,763	12%
Jun 30, 2018	31,728	12%
12 Months Ended	134,667	12%
Jun 30, 2019

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Footnote

Payments volume, including Visa Direct volume, represents the aggregate dollar amount of purchases made with cards and other form factors carrying the Visa, Visa Electron, V PAY and Interlink brands and excludes Europe co-badged volume 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 and 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 transactions processed by Visa and reported 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. 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, Europe 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.

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