Visa Inc. (NYSE:V) today announced financial results for the Company’s fiscal first quarter 2015. Net income for the quarter was $1.6 billion, an increase of 11% over the prior year, or $2.53 per share, an increase of 15% over the prior year. All references to earnings per share assume fully-diluted class A share count unless otherwise noted.

Net operating revenue in the fiscal first quarter of 2015 was $3.4 billion, an increase of 7% nominally or 9% on a constant dollar basis over the prior year, driven by solid growth in service revenues, data processing revenues and international transaction revenues. The strengthening of the U.S. dollar impacted net operating revenues by approximately 2 percentage points of negative growth during the quarter.

“Visa kicked-off fiscal 2015 delivering another solid quarter of revenue and earnings growth. While the challenges of the macro global environment don’t seem to abate, our results have remained consistent and reflect the strength and underlying resilience of our business model,” said Charlie Scharf, Chief Executive Officer of Visa Inc. “Our focus remains squarely on investing in our long-term strategic initiatives, driving new technologies and ways to pay as we continue to work collaboratively with governments, issuers, acquirers, and merchant partners.”

The Company also announces its board of directors has authorized a four-for-one stock split. Trading will begin on a split-adjusted basis on March 19, 2015.

Fiscal First Quarter 2015 Financial Highlights:

Payments volume growth, on a constant dollar basis, for the three months ended September 30, 2014, on which fiscal first 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 December 31, 2014, 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 December 31, 2014.

Total processed transactions, which represent transactions processed by VisaNet, for the three months ended December 31, 2014, were 17.6 billion, a 10% increase over the prior year.

Fiscal first quarter 2015 service revenues were $1.5 billion, an increase of 8% over the prior year, and are recognized based on payments volume in the prior quarter. All other revenue categories are recognized based on current quarter activity. Data processing revenues rose 9% over the prior year to $1.4 billion. International transaction revenues grew 9% over the prior year to $970 million. Other revenues, which include the Visa Europe licensing fee, were $204 million, an increase of 14% over the prior year. Client incentives, which are a contra revenue item, were $713 million and represent 17.4% of gross revenues.

Total operating expenses were $1.1 billion for the quarter, a 6% increase over the prior year.

The effective tax rate was 30.6% for the quarter ended December 31, 2014.

Cash, cash equivalents, and available-for-sale investment securities were $7.5 billion at December 31, 2014.

The weighted-average number of diluted shares of class A common stock outstanding was 619 million for the quarter ended December 31, 2014.

Notable Events:

During the three months ended December 31, 2014, the Company repurchased 3.1 million shares of class A common stock, at an average price of $259.52 per share, using $803 million of cash on hand. From January 1, 2015, through January 27, 2015, the Company repurchased 2.5 million shares of class A common stock, at an average price of $256.31 per share, using $650 million of cash on hand. Fiscal year to date through January 27, 2015, the Company repurchased a total of 5.6 million shares of class A common stock, at an average price of $258.08 per share, using $1.5 billion of cash on hand. The Company has $4.2 billion of remaining funds, authorized by the board of directors, available for share repurchase under the current program.

On January 28, 2015, the board of directors declared a quarterly cash dividend of $0.48 per share of class A common stock (determined in the case of class B and class C common stock on an as-converted basis) payable on March 3, 2015, to all holders of record of the Company’s class A, class B and class C common stock as of February 13, 2015.

In addition, on January 28, 2015, the Company held its 2015 Annual Meeting of Stockholders during which holders of the Company’s class A, B and C common stock at the close of business on December 1, 2014, voted on proposals enumerated in the Company’s proxy statement. All Proposals other than Proposal 5(a) and 5(d) passed.

Also, on January 28, 2015, Visa’s board of directors declared a four-for-one split of its class A common stock. On March 18, 2015, each class A common stockholder of record at the close of business on February 13, 2015 (the “Record Date”), will receive a dividend of three additional shares for every share held on the Record Date. Trading will begin on a split-adjusted basis on March 19, 2015. Holders of class B and C common stock will not receive a stock dividend. Instead, the conversion rate for class B common stock will increase to 1.6483 shares of class A common stock per share of class B common stock, and the conversion rate for class C common stock will increase to 4.0 shares of class A common stock per share of class C common stock. Immediately following the split, the class A, B and C stockholders will retain the same relative ownership percentages that they had prior to the stock split. The stock split will increase the Company’s total as-converted shares of class A common stock outstanding as of March 19, 2015, from approximately 614 million shares to approximately 2.5 billion shares based on the share count as of January 27, 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;
  • Annual diluted class A common stock earnings per share growth: Mid teens; and
  • Annual free cash flow greater than $6 billion.

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

Fiscal First Quarter 2015 Earnings Results Conference Call Details: Visa’s executive management team will host a live audio webcast beginning at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) today to discuss the financial results and business highlights. All interested parties are invited to listen to the live webcast at http://investor.visa.com. A replay of the webcast will be available on the Visa Investor Relations website for 30 days. Investor information, including supplemental financial information, is available on Visa Inc.’s Investor Relations website at http://investor.visa.com.

About Visa

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

Forward-Looking Statements:

This Press Release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are identified by words such as "estimates," "expectation," "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)
December 31, September 30,
2014 2014
(in millions, except par value data)
Assets
Cash and cash equivalents $ 2,085 $ 1,971
Restricted cash—litigation escrow 1,398 1,498
Investment securities:
Trading 78 69
Available-for-sale 2,417 1,910
Settlement receivable 500 786
Accounts receivable 900 822
Customer collateral 1,041 961
Current portion of client incentives 200 210
Deferred tax assets 927 1,028
Prepaid expenses and other current assets   318     307  
 
Total current assets 9,864 9,562
 
Investment securities, available-for-sale 3,028 3,015
Client incentives 87 81
Property, equipment and technology, net 1,861 1,892
Other assets 896 855
Intangible assets, net 11,395 11,411
Goodwill   11,753     11,753  
 
Total assets $ 38,884   $ 38,569  
 
Liabilities
Accounts payable $ 135 $ 147
Settlement payable 855 1,332
Customer collateral 1,041 961
Accrued compensation and benefits 307 450
Client incentives 1,058 1,036
Accrued liabilities 1,049 624
Accrued litigation   1,353     1,456  
 
Total current liabilities 5,798 6,006
 
Deferred tax liabilities 4,139 4,145
Other liabilities   1,005     1,005  
 
Total liabilities   10,942     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, 495 shares issued and outstanding at December 31, 2014 and September 30, 2014 — —
Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at December 31, 2014 and September 30, 2014 — —
Class C common stock, $0.0001 par value, 1,097 shares authorized, 20 and 22 shares issued and outstanding at December 31, 2014 and September 30, 2014, respectively — —
Additional paid-in capital 18,200 18,299
Accumulated income 9,732 9,131
Accumulated other comprehensive income (loss), net:
Investment securities, available-for-sale 11 31
Defined benefit pension and other postretirement plans (80 ) (84 )
Derivative instruments classified as cash flow hedges 80 38
Foreign currency translation adjustments   (1 )   (2 )
 
Total accumulated other comprehensive income (loss), net   10     (17 )
 
Total equity   27,942     27,413  
 
Total liabilities and equity $ 38,884   $ 38,569  
 
VISA INC.    
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
 
Three Months Ended
December 31,
2014 2013
(in millions, except per share data)
Operating Revenues
Service revenues $ 1,538 $ 1,419
Data processing revenues 1,383 1,264
International transaction revenues 970 891
Other revenues 204 180
Client incentives   (713 )   (599 )
 
Total operating revenues   3,382     3,155  
 
Operating Expenses
Personnel 509 470
Marketing 205 186
Network and processing 114 132
Professional fees 70 75
Depreciation and amortization 120 107
General and administrative   126     108  
 
Total operating expenses   1,144     1,078  
 
Operating income 2,238 2,077
 
Non-operating income   24     6  
 
Income before income taxes 2,262 2,083
Income tax provision   693     676  
 
Net income $ 1,569   $ 1,407  
 
Basic earnings per share
Class A common stock $ 2.54   $ 2.21  
 
Class B common stock $ 1.05   $ 0.93  
 
Class C common stock $ 2.54   $ 2.21  
 
Basic weighted-average shares outstanding
Class A common stock   494     505  
 
Class B common stock   245     245  
 
Class C common stock   22     27  
 
Diluted earnings per share
Class A common stock $ 2.53   $ 2.20  
 
Class B common stock $ 1.04   $ 0.93  
 
Class C common stock $ 2.53   $ 2.20  
 
Diluted weighted-average shares outstanding
Class A common stock   619     639  
 
Class B common stock   245     245  
 
Class C common stock   22     27  
 
VISA INC.    
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

Three Months Ended December 31,

2014 2013
(in millions)
Operating Activities
Net income $ 1,569 $ 1,407
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of client incentives 713 599
Share-based compensation 45 45
Excess tax benefit for share-based compensation (58 ) (54 )
Depreciation and amortization of property, equipment, technology and intangible assets 120 107
Deferred income taxes 97 19
Other (19 ) 5
Change in operating assets and liabilities:
Settlement receivable 286 (89 )
Accounts receivable (78 ) (79 )
Client incentives (687 ) (616 )
Other assets (141 ) (77 )
Accounts payable 10 (80 )
Settlement payable (477 ) 21
Accrued and other liabilities 484 334
Accrued litigation   (103 )   (1 )
Net cash provided by operating activities   1,761     1,541  
 
Investing Activities
Purchases of property, equipment, technology and intangible assets (104 ) (120 )
Investment securities, available-for-sale:
Purchases (758 ) (754 )
Proceeds from sales and maturities 226 600
Purchases of / contributions to other investments   —     (2 )
Net cash used in investing activities   (636 )   (276 )
 
Financing Activities
Repurchase of class A common stock (803 ) (1,091 )
Dividends paid (297 ) (254 )
Payments from litigation escrow account—retrospective responsibility plan 100 —
Cash proceeds from exercise of stock options 30 38
Restricted stock and performance-based shares settled in cash for taxes (100 ) (77 )
Excess tax benefit for share-based compensation   58     54  
Net cash used in financing activities   (1,012 )   (1,330 )
Effect of exchange rate changes on cash and cash equivalents   1  

 

  —  
Increase (decrease) in cash and cash equivalents 114 (65 )
Cash and cash equivalents at beginning of year   1,971     2,186  
Cash and cash equivalents at end of period $ 2,085   $ 2,121  
 
Supplemental Disclosure
Income taxes paid, net of refunds $ 57 $ 96
Accruals related to purchases of property, equipment, technology and intangible assets $ 21 $ 20
 
VISA INC.          
FISCAL 2015 AND 2014 QUARTERLY RESULTS OF OPERATIONS
(UNAUDITED)
 
Fiscal 2015
Quarter Ended Fiscal 2014 Quarter Ended
December 31, September 30, June 30, March 31, December 31,
2014 2014 2014 2014 2013
(in millions)
Operating Revenues
Service revenues $ 1,538 $ 1,499 $ 1,417 $ 1,462 $ 1,419
Data processing revenues 1,383 1,348 1,321 1,234 1,264
International transaction revenues 970 938 860 871 891
Other revenues 204 212 195 183 180
Client incentives   (713 )   (768 )   (638 )   (587 )   (599 )
 
Total operating revenues   3,382     3,229     3,155     3,163     3,155  
 
Operating Expenses
Personnel 509 496 463 446 470
Marketing 205 241 228 245 186
Network and processing 114 128 127 120 132
Professional fees 70 94 82 77 75
Depreciation and amortization 120 112 109 107 107
General and administrative 126 153 126 120 108
Litigation provision   —     453     —     —     —  
 
Total operating expenses   1,144     1,677     1,135     1,115     1,078  
 
Operating income 2,238 1,552 2,020 2,048 2,077
 
Non-operating income (expense)   24     (2 )   10     13     6  
 
Income before income taxes 2,262 1,550 2,030 2,061 2,083
Income tax provision   693     477     670     463     676  
 
Net income $ 1,569   $ 1,073   $ 1,360   $ 1,598   $ 1,407  
 

Operational Performance Data

The tables below provide information regarding the available operational results for the 3 months ended December 31, 2014, as well as the prior four quarterly reporting periods and the 12 months ended December 31, 2014 and 2013, for cards carrying the Visa, Visa Electron and Interlink brands. Also included is a table with information on the number of billable transactions processed on Visa Inc.’s CyberSource network.

1. Branded Volume and Transactions

The tables present 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, 2014
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 $ 510 3.5 % 7.9 % $ 359 5.7 % 10.6 % 4,171 $ 151 -1.5 % 1.8 % 973
Canada 66 -0.7 % 8.0 % 61 -0.8 % 7.9 % 666 5 0.3 % 9.1 % 11

CEMEA

266 -6.9 % 16.8 % 65 4.5 % 28.2 % 1,609 201 -10.1 % 13.5 % 1,220
LAC 286 -0.4 % 13.7 % 109 -0.7 % 15.2 % 2,696 177 -0.2 % 12.8 % 1,130

US

   771 9.3 % 9.3 %   651 10.1 % 10.1 % 12,584   121 5.2 % 5.2 % 914
Visa Inc. 1,900 3.3 % 10.5 % 1,245 6.9 % 11.4 % 21,726 655 -2.8 % 8.8 % 4,249
 
Visa Credit Programs
US $ 341 13.7 % 13.7 % $ 327 13.8 % 13.8 % 3,954 $ 13 10.1 % 10.1 % 16

International

   511 1.8 % 11.1 %   467 3.8 % 12.0 % 5,759   44 -15.9 % 2.5 % 189
Visa Inc. 852 6.2 % 12.1 % 794 7.7 % 12.8 % 9,713 58 -11.0 % 4.1 % 205
 
Visa Debit Programs
US $ 431 6.1 % 6.1 % $ 323 6.5 % 6.5 % 8,630 $ 108 4.7 % 4.7 % 898

International

   617 -2.1 % 11.5 %   127 3.0 % 15.9 % 3,384   490 -3.3 % 10.4 % 3,146
Visa Inc. 1,048 1.1 % 9.2 % 450 5.5 % 9.0 % 12,014 597 -2.0 % 9.3 % 4,044
 
  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 % 9.1 % $ 352 12.0 % 11.9 % 4,001 $ 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 9.8 % 9.8 % 12,319   124 6.0 % 6.0 % 950 589 754
Visa Inc. 1,884 8.0 % 10.3 % 1,217 10.2 % 11.5 % 20,955 667 4.2 % 8.3 % 4,151 2,043 2,341
 
Visa Credit Programs
US $ 327 12.7 % 12.7 % $ 313 12.7 % 12.7 % 3,733 $ 14 11.8 % 11.8 % 17 230 304

International

   506 7.7 % 10.5 %   458 9.0 % 11.4 % 5,555   49 -3.7 % 2.8 % 192 484 545
Visa Inc. 833 9.6 % 11.3 % 771 10.5 % 11.9 % 9,288 62 -0.6 % 4.7 % 209 714 850
 
Visa Debit Programs
US $ 429 6.7 % 6.7 % $ 319 7.1 % 7.1 % 8,586 $ 110 5.3 % 5.3 % 933 359 450

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. 1,051 6.8 % 9.6 % 446 9.7 % 10.7 % 11,667 605 4.8 % 8.7 % 3,942 1,330 1,491
 
  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 % 12,223   122 5.8 % 5.8 % 941 580 743
Visa Inc. 1,845 6.1 % 10.1 % 1,191 9.4 % 11.6 % 20,467 654 0.7 % 7.3 % 4,071 2,007 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 -2.0 % 3.5 % 215 701 832
 
Visa Debit Programs
US $ 433 7.4 % 7.4 % $ 325 8.0 % 8.0 % 8,648 $ 109 5.6 % 5.6 % 925 356 447

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 % 11,527 593 1.0 % 7.7 % 3,856 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 % 14.9 % 3,574 $ 153 -0.3 % 5.0 % 878 642 738
Canada 57 0.8 % 10.3 % 52 0.7 % 10.1 % 552 5 2.3 % 11.9 % 11 37 44
CEMEA 252 4.1 % 14.1 % 59 16.4 % 28.0 % 1,252 194 0.9 % 10.5 % 1,105 306 307
LAC 250 -4.7 % 11.4 % 95 -4.0 % 13.9 % 2,367 155 -5.1 % 9.9 % 984 411 439

US

   690 8.0 % 8.0 %   575 8.6 % 8.6 % 11,142   115 5.1 % 5.1 % 875 568 726
Visa Inc. 1,730 4.9 % 10.4 % 1,108 8.0 % 11.8 % 18,888 622 -0.2 % 7.9 % 3,854 1,963 2,253
 
Visa Credit Programs
US $ 281 10.2 % 10.2 % $ 270 10.6 % 10.6 % 3,148 $ 12 1.4 % 1.4 % 14 215 283

International

   463 4.9 % 12.3 %   417 6.0 % 13.3 % 5,069   46 -3.9 % 4.1 % 176 474 533
Visa Inc. 744 6.9 % 11.5 % 687 7.8 % 12.2 % 8,217 57 -2.8 % 3.6 % 191 688 817
 
Visa Debit Programs
US $ 409 6.5 % 6.5 % $ 305 6.8 % 6.8 % 7,994 $ 103 5.6 % 5.6 % 861 353 442

International

   577 1.4 % 11.9 %   115 13.1 % 24.8 % 2,677   461 -1.1 % 9.0 % 2,802 922 994
Visa Inc. 985 3.5 % 9.6 % 421 8.4 % 11.2 % 10,670 565 0.0 % 8.4 % 3,663 1,275 1,436
 
  For the 3 Months Ended December 31, 2013
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 $ 493 7.5 % 12.8 % $ 339 8.3 % 14.4 % 3,677 $ 154 5.8 % 9.4 % 890 622 721
Canada 66 -0.1 % 5.5 % 62 -0.2 % 5.5 % 609 5 0.3 % 6.0 % 11 36 43
CEMEA 286 9.3 % 12.7 % 62 23.0 % 27.0 % 1,231 223 6.0 % 9.2 % 1,176 300 300
LAC 287 1.9 % 10.0 % 110 5.5 % 14.4 % 2,506 177 -0.2 % 7.5 % 1,066 407 437

US

   706 7.8 % 7.8 %   591 8.5 % 8.5 % 11,591   115 4.3 % 4.3 % 895 561 719
Visa Inc. 1,838 6.7 % 10.0 % 1,164 8.3 % 11.2 % 19,615 674 3.9 % 7.8 % 4,038 1,926 2,220
 
Visa Credit Programs
US $ 300 9.3 % 9.3 % $ 288 9.6 % 9.6 % 3,446 $ 12 2.6 % 2.6 % 16 212 280

International

   502 5.2 % 11.1 %   450 5.7 % 12.1 % 5,294   53 0.4 % 2.4 % 196 472 531
Visa Inc. 802 6.7 % 10.4 % 737 7.2 % 11.1 % 8,740 65 0.8 % 2.4 % 213 684 811
 
Visa Debit Programs
US $ 406 6.7 % 6.7 % $ 303 7.5 % 7.5 % 8,145 $ 103 4.5 % 4.5 % 879 348 439

International

   630 6.7 % 12.0 %   124 18.0 % 24.2 % 2,730   506 4.2 % 9.3 % 2,947 893 970
Visa Inc. 1,036 6.7 % 9.7 % 427 10.3 % 11.5 % 10,875 609 4.3 % 8.4 % 3,826 1,241 1,409
 
  For the 12 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
($ billions)   USD)   USD)   ($ billions)   USD)   USD)   (millions)   ($ billions)   USD)   USD)   (millions)
 
All Visa Credit & Debit
Asia Pacific $ 1,986 6.6 % 9.5 % $ 1,376 9.8 % 12.4 % 15,567 $ 610 0.1 % 3.5 % 3,722
Canada 254 0.7 % 8.2 % 234 0.7 % 8.2 % 2,495 20 0.6 % 8.2 % 46
CEMEA 1,075 1.8 % 14.9 % 256 13.9 % 27.3 % 5,739 819 -1.5 % 11.5 % 4,694
LAC 1,078 0.0 % 11.7 % 410 0.7 % 14.0 % 9,966 668 -0.4 % 10.4 % 4,183

US

   2,967 9.0 % 9.0 %   2,485 9.7 % 9.7 % 48,268   482 5.6 % 5.6 % 3,680
Visa Inc. 7,359 5.6 % 10.3 % 4,761 8.6 % 11.6 % 82,036 2,598 0.4 % 8.1 % 16,325
 
Visa Credit Programs
US $ 1,265 12.2 % 12.2 % $ 1,213 12.4 % 12.4 % 14,409 $ 52 8.0 % 8.0 % 64

International

   1,970 5.0 % 11.0 %   1,782 6.4 % 11.9 % 21,749   187 -7.1 % 2.9 % 756
Visa Inc. 3,234 7.7 % 11.5 % 2,995 8.8 % 12.1 % 36,158 239 -4.2 % 4.0 % 819
 
Visa Debit Programs
US $ 1,702 6.7 % 6.7 % $ 1,272 7.1 % 7.1 % 33,859 $ 430 5.3 % 5.3 % 3,616

International

   2,423 2.2 % 11.5 %   493 11.6 % 20.8 % 12,019   1,930 0.0 % 9.3 % 11,889
Visa Inc. 4,125 4.0 % 9.4 % 1,765 8.3 % 10.6 % 45,878 2,359 0.9 % 8.5 % 15,506
 
  For the 12 Months Ended December 31, 2013
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 $ 1,862 9.1 % 12.9 % $ 1,253 9.1 % 14.0 % 13,703 $ 609 9.0 % 10.7 % 3,316 622 721
Canada 252 2.5 % 5.4 % 232 2.8 % 5.8 % 2,268 20 -1.6 % 1.1 % 44 36 43
CEMEA 1,056 12.4 % 15.3 % 225 26.3 % 30.5 % 4,331 831 9.1 % 11.8 % 4,513 300 300
LAC 1,078 4.4 % 11.1 % 407 7.7 % 15.7 % 9,400 671 2.4 % 8.5 % 3,965 407 437

US

   2,723 7.8 % 7.8 %   2,267 8.6 % 8.6 % 44,571   456 3.7 % 3.7 % 3,576 561 719
Visa Inc. 6,971 8.0 % 10.5 % 4,383 9.1 % 11.4 % 74,273 2,587 6.2 % 9.0 % 15,415 1,926 2,220
 
Visa Credit Programs
US $ 1,127 9.9 % 9.9 % $ 1,079 9.9 % 9.9 % 12,800 $ 48 8.7 % 8.7 % 62 212 280

International

   1,876 6.6 % 11.3 %   1,675 7.2 % 12.4 % 19,928   201 2.1 % 3.2 % 772 472 531
Visa Inc. 3,003 7.8 % 10.8 % 2,754 8.3 % 11.4 % 32,728 249 3.3 % 4.3 % 834 684 811
 
Visa Debit Programs
US $ 1,596 6.3 % 6.3 % $ 1,188 7.4 % 7.4 % 31,771 $ 408 3.2 % 3.2 % 3,514 348 439

International

   2,371 9.5 % 13.5 %   442 20.2 % 25.2 % 9,774   1,930 7.3 % 11.1 % 11,067 893 970
Visa Inc. 3,967 8.2 % 10.4 % 1,629 10.6 % 11.5 % 41,546 2,338 6.5 % 9.5 % 14,580 1,241 1,409
 

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

Dec 31, 2014 4% 8%
Sep 30, 2014 9% 10%
Jun 30, 2014 6% 7%
Mar 31, 2014 5% 8%
Dec 31, 2013 11% 12%
 

12 Months Ended

Dec 31, 2014 6% 8%
Dec 31, 2013 10% 11%
 

3. Visa Processed Transactions

The table below represents transactions involving Visa, Visa Electron, Interlink and PLUS cards processed on Visa’s networks. CyberSource transactions are not included in this table, and are reported in the next section.

  Processed  
Transactions
Period   (millions)   Growth

 

3 Months Ended

Dec 31, 2014 17,599 10%
Sep 30, 2014 16,991 10%
Jun 30, 2014 16,662 11%
Mar 31, 2014 15,354 11%
Dec 31, 2013 15,985 13%
 

12 Months Ended

Dec 31, 2014 66,607 10%
Dec 31, 2013 60,298 12%
 

4. CyberSource Transactions

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

  Billable  
Transactions
Period   (millions)   Growth
 

3 Months Ended

Dec 31, 2014 2,192 16%
Sep 30, 2014 1,905 12%
Jun 30, 2014 1,890 15%
Mar 31, 2014 1,859 16%
Dec 31, 2013 1,894 20%
 

12 Months Ended

Dec 31, 2014 7,847 15%
Dec 31, 2013 6,846 24%
 

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.