Visa Inc. Posts Strong Fiscal Fourth Quarter and Full-Year 2010 Earnings Results and Authorizes New $1 Billion Share Repurchase Plan

-- GAAP quarterly net income of $774 million or $1.06 per diluted class A common share

-- Full-year 2010 GAAP net income of $3.0 billion or $4.01 per diluted class A common share

-- Adjusted quarterly net income of $695 million or $0.95 per diluted class A common share excluding the revaluation of the Visa Europe put option

-- Adjusted full-year 2010 net income of $2.9 billion or $3.91 per diluted class A common share excluding the revaluation of the Visa Europe put option

-- The Company authorized a new $1 billion share repurchase plan and increased its quarterly dividend payment by 20%

News provided by

Visa Inc.

Oct 27, 2010, 04:05 ET

SAN FRANCISCO, Oct. 27 /PRNewswire-FirstCall/ -- Visa Inc. (NYSE: V) today announced financial results for the Company's fiscal fourth quarter and full-year 2010. For the fourth quarter ending September 30, 2010, GAAP net income was $774 million, an increase of 51% over the prior year. Diluted class A common stock earnings per share were $1.06, an increase of 54% over the prior year. On an adjusted basis (excluding the revaluation of the Company's Visa Europe put option), net income for the quarter was $695 million, an increase of 35% over the prior year. Diluted class A common stock earnings per share were $0.95, an increase of 38% over the prior year.

GAAP net operating revenue in the fiscal fourth quarter of 2010 was $2.1 billion, an increase of 13% over the prior year and driven by strong contributions across all revenue categories, in particular data processing and international transaction revenues. Currency fluctuations contributed a positive 1% towards quarterly net operating revenues.

GAAP net income for the full-year was $3.0 billion, an increase of 26% over the prior year. Diluted class A common stock earnings per share were $4.01, an increase of 29% over the prior year. GAAP net operating revenue in the full-year was $8.1 billion, an increase of 17% over the prior year and was driven by strong contributions across all revenue categories.  Currency fluctuations contributed a positive 1% towards full-year net operating revenues.

On an adjusted basis (excluding the revaluation of the Company's Visa Europe put option), net income for the full-year was $2.9 billion, an increase of 23% over the prior year. Diluted class A common stock earnings per share were $3.91, an increase of 26% over the prior year.  The Company's adjusted quarterly and full-year net income per class A common shares outstanding are non-GAAP financial measures that are reconciled to their most directly comparable GAAP measures in the accompanying financial tables.

Visa's results for both the fourth fiscal quarter and the full-year reflect the inclusion of CyberSource for the two months after its acquisition.

"We are very pleased with our fourth fiscal quarter and full-year earnings results as we continue to successfully execute on our strategic initiatives while in the midst of a very challenging business environment," said Joseph Saunders, Chairman and Chief Executive Officer. "Our continued focus, execution and resilience have enabled us to continue to generate solid returns and meaningful growth across our business, products and geographies."

"Looking ahead to our fiscal 2011, Visa will continue to invest in initiatives and investments to grow our core and emerging product portfolios globally, innovate into new payments channels and integrate our recent acquisition of CyberSource. We are committed to delivering solid business performance, supporting our financial clients and partners, and delivering above average shareholder returns."

Fiscal Fourth Quarter 2010 Financial Highlights:

Payments volume growth, on a constant dollar basis for the three months ended June 30, 2010 on which fiscal fourth quarter service revenue is recognized, was a positive 14% over the prior year at $802 billion.

Payments volume growth, on a constant dollar basis, for the three months ended September 30, 2010, was a positive 14% over the prior year at $828 billion.

Cross border volume growth, on a constant dollar basis, was a positive 16% for the three months ended September 30, 2010.

Total processed transactions, which represent transactions processed by VisaNet, for the three months ended September 30, 2010, totaled 12.1 billion and were a positive 16% increase over the prior year.

For the fiscal fourth quarter 2010, service revenues were $912 million, an increase of 13% 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 15% over the prior year to $840 million. International transaction revenues, which are driven by cross border payments volume, grew 22% over the prior year to $619 million. Other revenues, which include the Visa Europe licensing fee, were $167 million, up 3% over the prior year. Volume and support incentives, which are a contra revenue item, were $421 million and represent 17% of gross revenues.

Total operating expenses on a GAAP basis were $1 billion for the quarter, a less than 1% decline over the prior year.

Cash, cash equivalents, restricted cash, and available-for-sale investment securities were $6.0 billion at September 30, 2010.

Visa's GAAP effective tax rate was 38% for quarter ended September 30, 2010, excluding the revaluation of the Visa Europe put option.

Fiscal Full-Year 2010 Financial Highlights:

For the fiscal full-year, service revenues were $3.5 billion, an increase of 10% over the prior year. Data processing revenues rose 29% over the prior year to $3.1 billion. International transaction revenues, which are driven by cross-border payments volume, grew 20% over the prior year to $2.3 billion. Other revenues, which include the Visa Europe licensing fee, were $713 million, up 14% over the prior year.

Volume and support incentives, which are a contra revenue item, were $1.6 billion and represent 16% of gross revenues.

Total processed transactions, which represent transactions processed by VisaNet for the 12 months ended September 30, 2010, totaled 45.4 billion, a 14% increase over the prior year.

Total operating expenses on a GAAP basis were $3.5 billion for the full-year, a 3% increase over the prior year.

Visa's GAAP effective tax rate was 37% for the twelve months ended September 30, 2010, excluding the revaluation of the Visa Europe put option.

Notable Events:

As previously disclosed, on October 4, 2010, Visa entered into a settlement agreement with the U.S. Department of Justice (DOJ) and the attorneys general of seven states to resolve antitrust investigations into the Company's merchant acceptance rules in the U.S. The DOJ issued a civil investigative demand to Visa in 2008, seeking information about certain Visa acceptance rules, including those related to surcharging and discounting. Both investigations ended with a consent decree that sets forth the terms of the settlement, subject to court approval. There is no monetary obligation associated with the DOJ settlement.

On October 8, 2010, the Company deposited $800 million into the litigation escrow account previously established under the Company's retrospective responsibility plan. The deposit into the escrow account reduced the conversion rate applicable to the Company's class B common stock from 0.5550 to 0.5102. On an as-converted basis, the deposit had the effect of a repurchase of approximately 11.0 million shares of class A common stock from the Company's class B shareholders.

On October 20, 2010, the Board of Directors declared a quarterly dividend in the aggregate amount of $0.15 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 December 7, 2010, to all holders of record of the Company's class A, class B and class C common stock as of November 19, 2010. In addition, the Company announced it has successfully completed its $1 billion share repurchase plan authorized in October 2009. In the fourth fiscal quarter of 2010, the Company repurchased a total of 4.6 million shares of class A common stock at an average price of $72.29 per share. Under the full plan, a total of 12.9 million shares of class A common stock was repurchased at an average price of $77.48 per share.

Today, the Company announces that its Board of Directors has authorized a new $1 billion class A common stock repurchase plan. The authorization will be in place through September 30, 2011, and is subject to extension or expansion at the determination of Visa's Board of Directors.

Financial Outlook:

Visa Inc. affirms its financial outlook for the following metric for 2011:

  • Annual diluted class A common stock earnings per share growth of greater than 20%.

Visa Inc. updates its financial outlook for the following metric for 2011:

  • Annual free cash flow in excess of $3 billion.

Visa Inc. provides its financial outlook for the following metrics for 2011:

  • Annual net revenue growth: 11% to 15% range;
  • Volume and support incentives as a percent of gross revenues: 16% to 16.5% range;
  • Advertising, marketing and promotion expenses: Less than $900 million;  
  • Annual operating margin: About 60%;
  • GAAP tax rate: 36.5% to 37% range; and
  • Capital expenditures: Between $250-$275 million.

Fiscal Fourth Quarter and Full-Year 2010 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 Inc.

Visa 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 digital currency. Underpinning digital currency is one of the world's most advanced processing networks – VisaNet - that is capable of handling more than 10,000 transactions a second, with fraud protection for consumers and guaranteed 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, ahead of time with prepaid or later with credit products. For more information, visit www.corporate.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. These statements can be identified by the terms "outlook," "will" and similar references to the future. Examples of such forward-looking statements include, but are not limited to, statements we make about revenue, incentive payments, expenses, operating margin, earnings per share, free cash flow, tax rate and capital expenditures and the growth of those items.

By their nature, forward-looking statements: (i) speak only as of the date they are made, (ii) are neither statements of historical fact nor guarantees of future performance and (iii) are subject to risks, uncertainties, assumptions and changes in circumstances that are difficult to predict or quantify. Therefore, actual results could differ materially and adversely from those forward-looking statements because of a variety of factors, including the following:

  • the impact of the U.S. Wall Street Reform and Consumer Protection Act, including:
    • its effect on issuers' and retailers' network selection for debit transactions;
    • its effect on our financial institution customers and on debit interchange rates;
    • its effect on other product categories, such as credit; and
    • the adoption of similar and related laws and regulations elsewhere;
  • developments in current or future disputes, including:
    • interchange;
    • currency conversion; and
    • tax;
  • the risk that CyberSource's business will not be successfully integrated with Visa's, including:
    • the costs associated with the acquisition; and
    • slowed growth of eCommerce;
  • macroeconomic and industry factors such as:
    • currency exchange rates;
    • global economic, political, health and other conditions;
    • competitive pressure on customer pricing and in the payments industry generally;
    • material changes in our customers' performance compared to our estimates; and
    • disintermediation from the payments value stream through government actions or bilateral agreements;
  • systemic developments, such as:
    • disruption of our transaction processing systems or the inability to process transactions efficiently;
    • account data breaches involving card data stored by us or third parties;
    • increased fraudulent and other illegal activities involving our cards;
    • failure to maintain interoperability between our and Visa Europe's authorization and clearing and settlement systems;
    • costs arising if Visa Europe were to exercise its right to require us to acquire all of its outstanding stock;
    • loss of organizational effectiveness or key employees;
    • changes in accounting principles or treatments; and

the other factors discussed under the heading "Risk Factors" herein and in our most recent Annual Report on Form 10-K and our most recent Quarterly Reports on Form 10-Q. You should not place undue reliance on such statements. Unless required to do so by law, we do not intend to update or revise any forward-looking statement, because of new information or future developments or otherwise.

Contacts:

Investor Relations: Jack Carsky or Victoria Hyde-Dunn, 415-932-2213, [email protected]

Media Relations: Will Valentine,  415-932-2564, [email protected]

Visa Inc.

Selected Consolidated Statements of Operations

(unaudited)









Three Months Ended

September 30,


Twelve Months Ended

September 30,


2010

2009

2010

2009

(in millions, except per share data)

Operating Revenues














Service revenues

$ 912

$  808

$ 3,497

$ 3,174

Data processing revenues

840

727

3,125

2,430

International transaction revenues

619

507

2,290

1,916

Other revenues

167

163

713

625

Volume and support incentives

(421)

(326)

(1,560)

(1,234)

Total operating revenues

2,117

1,879

8,065

6,911








Operating Expenses














Personnel

353

355

1,222

1,228

Network, EDP and communications

119

111

425

393

Advertising, marketing and promotion

233

283

964

918

Professional and consulting fees

108

86

286

268

Depreciation and amortization

78

61

265

226

Administrative and other

117

113

359

338

Litigation provision

(4)

1

(45)

2

Total operating expenses

1,004

1,010

3,476

3,373








Operating income

1,113

869

4,589

3,538








Other Income (Expense)






Equity in earnings of unconsolidated affiliates

(2)

-

(7)

-

Interest expense

(15)

(25)

(72)

(115)

Investment income, net

20

18

49

575

Other

79

1

79

2

Total other income (expense)

82

(6)

49

462








Income before income taxes

1,195

863

4,638

4,000

Income tax expense

422

349

1,674

1,648








Net income including non-controlling interest

773

514

2,964

2,352

Loss attributable to non-controlling interest

1

-

2

1








Net income attributable to Visa Inc.

$ 774

$ 514

$ 2,966

$ 2,353








Basic earnings per share








  Class A common stock

$ 1.06

$ 0.69

$ 4.03

$ 3.10

  Class B common stock

$ 0.59

$ 0.41

$ 2.31

$ 1.98

  Class C common stock

$ 1.06

$ 0.69

$ 4.03

$ 3.10

Basic weighted average shares outstanding








  Class A common stock

492

462

482

451

  Class B common stock

245

245

245

245

  Class C common stock

98

138

112

148

Diluted earnings per share








  Class A common stock

$ 1.06

$ 0.69

$ 4.01

$ 3.10

  Class B common stock

$ 0.59

$ 0.41

$ 2.30

$ 1.98

  Class C common stock

$ 1.06

$ 0.69

$ 4.01

$ 3.10

Diluted weighted average shares outstanding








  Class A common stock

731

748

739

759

  Class B common stock

245

245

245

245

  Class C common stock

98

138

112

148

Visa Inc.


Selected Consolidated Balance Sheets


(unaudited)



















September 30,

September 30,


2010

2009


(in millions, except par value data)

Assets



Cash and cash equivalents

$ 3,867

$ 4,617

Restricted cash - litigation escrow

1,866

1,365

Investment securities



   Trading

60

59

   Available-for-sale

124

56

Settlement receivable

402

605

Accounts receivable

476

444

Customer collateral

899

812

Current portion of volume and support incentives

175

214

Current portion of deferred tax assets

623

703

Prepaid expenses and other current assets

242

366






Total current assets

8,734

9,241






Restricted cash - litigation escrow

70

350

Investment securities, available-for-sale

24

168

Volume and support incentives

101

102

Property, equipment and technology, net

1,357

1,204

Deferred tax assets



Other assets

197

125

Intangible assets, net

11,478

10,883

Goodwill

11,447

10,208






Total assets

$ 33,408

$ 32,281











Liabilities



Accounts payable

$ 137

$ 156

Settlement payable

406

634

Customer collateral

899

812

Accrued compensation and benefits

370

396

Volume and support incentives

418

284

Accrued liabilities

625

754

Current portion of long-term debt

12

12

Current portion of accrued litigation

631

1,394






Total current liabilities

3,498

4,442






Long-term debt

32

44

Accrued litigation

66

323

Deferred tax liabilities

4,181

3,807

Other liabilities

617

472






Total liabilities

8,394

9,088






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, 493 and 470 shares issued and outstanding at September 30, 2010, and September 30, 2009, respectively

-

-

Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at September 30, 2010, and September 30, 2009

-

-

Class C common stock, $0.0001 par value, 1,097 shares authorized, 97 and 131 shares issued and outstanding at September 30, 2010, and September 30, 2009, respectively

-

-

Additional paid-in capital

20,794

21,160

Class C treasury stock

-

(2)

Accumulated income

4,368

2,219

Accumulated other comprehensive loss, net



   Investment securities, available-for-sale

3

10

   Defined benefit pension and other postretirement plans

(115)

(136)

   Derivative instruments

(40)

(58)

   Foreign currency translation gain (loss)

1

(4)

Total accumulated other comprehensive loss, net

(151)

(188)






Total Visa Inc. stockholders' equity

25,011

23,189






Non-controlling interest

3

4

Total equity

$ 25,014

$ 23,193











Total liabilities and equity

$ 33,408

$ 32,281

Visa Inc.





Consolidated Statements Of Cash Flows





(unaudited)
















For the Years Ended September 30,












2010


2009


2008




(in millions)

Operating Activities














Net income including non-controlling interest

$2,964

$ 2,352

$ 804

Adjustments to reconcile net income including non-controlling interest to net cash provided by operating activities:






      Gain on sale of other investments

(6)

(473)

-

      Depreciation and amortization of property, equipment and technology

265

226

237

      Share-based compensation


131

115

74

      Tax benefit for share-based compensation


(14)

(7)

-

      Restricted stock instruments settled in cash for taxes

(14)

(22)

-

      Fair value adjustment for liability under the Framework Agreement

-

-

(35)

      Fair value adjustment for the Visa Europe put option

(79)

-

-

      Interest earned on litigation escrow, net of tax

(1)

(15)

(13)

      Net recognized (gain) loss on investment securities, including other-than-temporary impairment

(21)

5

34

      Asset impairment

3

11

34

     Loss on disposal of property, equipment and technology

-

2

-

      Amortization of volume and support incentives

1,560

1,234

1,161

      Litigation provision and accretion

(18)

95

1,601

      Equity in earnings of unconsolidated affiliates

7

-

(1)

      Deferred income taxes

249

297

(27)

Change in operating assets and liabilities:






      Trading securities

(1)

34

-

      Accounts receivable

(7)

(102)

(24)

      Settlement receivable

203

526

(543)

      Volume and support incentives

(1,386)

(1,136)

(1,378)

      Other assets

(41)

(109)

(158)

      Accounts payable

(21)

(3)

(10)

      Settlement payable

(245)

(461)

451

      Accrued compensation and benefits

(26)

(23)

(115)

      Accrued and other liabilities

191

213

(33)

      Accrued litigation


(1,002)

(2,201)

(1,525)

      Member deposits


-

-

(3)









Net cash provided by operating activities

2,691

558

531









Investing Activities














Investment securities, available-for-sale:






     Purchases

(11)

(7)

(1,509)

     Proceeds from sales and maturities

67

297

2,458

Distributions from money market investment


89

884

-

Reclassification of money market investment

-

-

(983)

Purchases of / contributions to other investments

(17)

(48)

(25)

Proceeds from sale of other investments

9

1,008

-

Dividends/distributions from other investments

2

2

22

Acquisition, net of cash received of $147

(1,805)

-

-

Cash acquired through reorganization

-

-

1,002

Purchases of property, equipment and technology

(241)

(306)

(415)

Proceeds from disposal of property, equipment and technology

3

-

4









Net cash (used in) provided by investing activities

(1,904)

1,830

554









Financing Activities














Proceeds from short-term borrowing


-

-

2

Payments on short-term borrowing

-

-

(2)

Proceeds from sale of common stock, net of issuance costs of $550

-

-

19,100

Tax benefit for share-based compensation

14

7

-

Cash proceeds from exercise of stock options

56

32

-

Funding of litigation escrow account - Retrospective Responsibility Plan

(500)

(1,800)

(3,000)

Payments from litigation escrow account - Retrospective Responsibility Plan

280

2,028

1,085

Funding of tax escrow account for income tax withheld on stock proceeds

-

-

(116)

Payments from tax escrow account


-

-

116

Payment for redemption of stock

-

(2,646)

(13,446)

Dividends paid

(368)

(318)

(93)

Principal payments on debt

(12)

(50)

(18)

Principal payments on capital lease obligations

(12)

(4)

(4)

Repurchase of class A common stock

(1,000)

-

-

Net cash (used in) provided by financing activities

(1,542)

(2,751)

3,624









Effect of exchange rate changes on cash and cash equivalents

5

1

(5)

(Decrease) increase in cash and cash equivalents

(750)

(362)

4,704

Cash and cash equivalents at beginning of year

4,617

4,979

275









Cash and cash equivalents at end of year

$ 3,867

$ 4,617

$ 4,979









Supplemental Disclosure of Cash Flow Information














Income taxes paid, net of refunds

$  1,291

$  1,172

$        678

Amounts included in accounts payable and accrued and other liabilities related to purchases of property, equipment and technology

$       31

$       18

$          32

Interest payments on debt

$         4

$         7

$            8

Common stock issued in reorganization

$         -

$         -

$  17,935

Assets acquired in joint venture with note payable and equity interest issued

$         -

$       22

$           -

Fiscal 2009 and 2010 Quarterly Results of Operations 

US$ in millions









(unaudited)












Fiscal 2009












Quarter Ended

Fiscal 2010 Quarter Ended



September 30,

2009

December 31,

2009

March 31,

2010

June 30,

2010

September 30,

2010













Operating Revenues










Service revenues

$ 808

$ 827

$ 885

$ 873

$ 912

Data processing revenues

727

765

728

792

840

International transaction revenues

507

552

545

574

619

Other revenues

163

190

173

183

167

Volume and support incentives

(326)

(374)

(372)

(393)

(421)

Total operating revenues

1,879

1,960

1,959

2,029

2,117













Operating Expenses












Personnel (1)

355

274

310

285

353

Network, EDP and communications

111

105

98

103

119

Advertising, marketing and promotion

283

216

238

277

233

Professional and consulting fees (1)

86

51

50

77

108

Depreciation and amortization

61

62

62

63

78

Administrative and other

113

78

77

87

117

Litigation provision

1

(43)

2

-

(4)

Total operating expenses

1,010

743

837

892

1,004













Operating income

869

1,217

1,122

#

1,137

1,113













Other Income (Expense)










Equity in earnings of unconsolidated affiliates

-

-

(2)

(3)

(2)

Interest expense

(25)

(16)

(28)

(13)

(15)

Investment income, net

18

5

23

1

20

Other

1

2

(2)

-

79

Total other income (expense)


(6)

(9)

(9)

(15)

82













Income before income taxes


863

1,208

1,113

1,122

1195

Income tax expense

349

445

401

406

422

Net income including non-controlling interest

514

763

712

716

773

Loss attributable to non-controlling interest (2)

-

-

1

-

1

Net income attributable to Visa Inc.

$ 514

$ 763

$ 713

#

$ 716

$ 774
























(1) Certain reclassifications, not affecting net income attributable to Visa, have been made to fiscal 2009 quarterly information to conform to the current period presentation format, including the reclassification of contractor expense, which was previously reported in professional and consulting fees, to personnel.

(2) The Company began to report non-controlling interest (previously referred to as minority interest) as a component of equity in the first quarter of fiscal 2010 and has updated all requisite financial statements, including the statement of operations, for all comparable periods presented as required under Accounting Standards Codification 810.

Adjusted Net Income and Earnings Per Share



US$ in millions, except per share data



Management believes the presentation of adjusted net income and diluted earnings per share provides a clearer understanding of our operating performance for the periods.  The revaluation of the Put option resulted in non-cash, non-operating income during the three months ended September 30, 2010.  The reduction in value was primarily the result of declines in Visa's price-to-earnings ratio in the second half of fiscal 2010 and does not reflect any change in the likelihood that Visa Europe will exercise its option.  Management therefore believes that the resulting non-operating income is not indicative of Visa's performance in the current or future periods.









Three Months Ended

September 30, 2010


Twelve Months Ended

September 30, 2010

Net income attributable to Visa Inc. (as reported)

$ 774

$ 2,966

Revaluation of Visa Europe Put option (1)

(79)

(79)






Adjusted net income attributable to Visa Inc.

$ 695

$ 2,887






Weighted average number of diluted shares outstanding  (as reported)

731

739






Adjusted diluted earnings per share

$ 0.95

$ 3.91












(1) Non-cash, non-operating income resulting from the revaluation is not subject to tax.

Operational Performance Data

The tables below provide information regarding the available operational results for the 3 months ended September 30, 2010, as well as the prior four quarterly reporting periods and the 12 months ended September 30, 2010 and 2009, for cards carrying the Visa, Visa Electron and Interlink brands.  Included is a new table with information on the number of billable transactions processed on CyberSource’s network.  Visa Inc. completed its acquisition of CyberSource Corporation on July 21, 2010.

1. Branded Volume and Transactions

The tables present 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 September 30, 2010



Total

Volume

($ billions)

Growth

(Nominal

USD)

Growth

(Constant

USD)

Payments

Volume

($ billions)

Growth

(Nominal

USD)

Growth

(Constant

USD)

Payments

Transactions

(millions)

Cash

Volume

($ billions)

Growth

(Nominal

USD)

Growth

(Constant

USD)

Cash

Transactions

(millions)












All Visa Credit & Debit










 Asia

   Pacific

$323

15.1%

10.9%

$211

15.4%

11.5%

2,659

$113

14.6%

9.8%

584

 Canada

53

10.2%

7.2%

49

10.2%

7.2%

448

5

10.6%

7.5%

9

 CEMEA

164

22.3%

23.5%

27

27.2%

28.3%

418

137

21.4%

22.6%

862

 LAC

204

22.5%

20.3%

69

24.4%

24.2%

1,639

135

21.5%

18.4%

873

 US

574

12.4%

12.4%

473

13.4%

13.4%

9,755

101

7.7%

7.7%

875

 Visa Inc.

1,318

15.6%

14.2%

828

15.0%

13.8%

14,919

490

16.7%

15.0%

3,203












Visa Credit Programs










 US

$218

3.6%

3.6%

$207

6.4%

6.4%

2,431

$11

-31.6%

-31.6%

17

 Rest of

   World

340

15.3%

12.3%

294

14.1%

11.1%

3,815

46

23.9%

20.8%

157

 Visa Inc.

558

10.4%

8.7%

501

10.8%

9.1%

6,246

57

7.5%

5.6%

174












Visa Debit Programs










 US

$356

18.5%

18.5%

$266

19.6%

19.6%

7,324

$90

15.6%

15.6%

858

 Rest of

   World

404

20.8%

18.7%

61

34.2%

32.3%

1,349

343

18.7%

16.5%

2,171

 Visa Inc.

760

19.7%

18.6%

327

22.0%

21.7%

8,673

433

18.0%

16.3%

3,029




For the 3 Months Ended June 30, 2010





Total

Volume

($ billions)

Growth

(Nominal

USD)

Growth

(Constant

USD)

Payments

Volume

($ billions)

Growth

(Nominal

USD)

Growth

(Constant

USD)

Payments

Transactions

(millions)

Cash

Volume

($ billions)

Growth

(Nominal

USD)

Growth

(Constant

USD)

Cash

Transactions

(millions)

Accounts

(millions)

Cards

(millions)














All Visa Credit & Debit












 Asia

   Pacific

$309

19.3%

12.5%

$198

19.9%

12.7%

2,580

$111

18.1%

12.3%

581

458

545

 Canada

53

17.5%

7.5%

48

18.1%

8.1%

433

5

11.5%

2.1%

9

24

31

 CEMEA

154

27.0%

25.6%

24

30.9%

28.6%

394

130

26.3%

25.1%

852

203

204

 LAC

185

23.1%

16.3%

62

25.5%

20.8%

1,519

123

21.9%

14.2%

849

353

382

 US

567

12.1%

12.1%

469

13.8%

13.8%

9,511

97

4.8%

4.8%

855

497

675

 Visa Inc.

1,268

17.3%

14.1%

802

16.8%

14.1%

14,437

466

18.0%

14.2%

3,145

1,535

1,837














Visa Credit Programs












 US

$214

2.3%

2.3%

$204

5.9%

5.9%

2,346

$10

-39.4%

-39.4%

17

210

274

 Rest of

   World

320

18.7%

11.7%

277

18.6%

11.6%

3,679

42

19.2%

12.7%

155

436

499

 Visa Inc.

534

11.5%

7.7%

481

12.9%

9.1%

6,025

52

0.1%

-3.6%

171

646

772














Visa Debit Programs












 US

$353

19.1%

19.1%

$266

20.6%

20.6%

7,165

$87

14.8%

14.8%

838

287

402

 Rest of

   World

382

24.5%

19.4%

55

38.0%

31.5%

1,246

327

22.4%

17.6%

2,136

601

664

 Visa Inc.

735

21.8%

19.3%

321

23.3%

22.4%

8,412

414

20.7%

17.0%

2,974

889

1,065




For the 3 Months Ended March 31, 2010





Total

Volume  

($ billions)

Growth

(Nominal

USD)

Growth

(Constant

USD)

Payments

Volume

($ billions)

Growth

(Nominal

USD)

Growth

(Constant

USD)

Payments

Transactions

(millions)

Cash

Volume

($ billions)

Growth

(Nominal

USD)

Growth

(Constant

USD)

Cash

Transactions

(millions)

Accounts

(millions)

Cards

(millions)














All Visa Credit & Debit












 Asia

   Pacific

$296

29.5%

12.7%

$195

32.3%

13.8%

2,459

$102

24.5%

10.6%

553

452

537

 Canada

47

30.4%

5.5%

43

34.2%

8.6%

387

4

-0.1%

-19.1%

9

24

31

 CEMEA

140

31.0%

19.3%

23

36.8%

22.6%

357

118

30.0%

18.7%

771

196

199

 LAC

175

36.1%

15.8%

58

38.1%

20.1%

1,437

117

35.1%

13.8%

819

343

372

 US

518

10.7%

10.7%

427

12.8%

12.8%

8,573

91

2.2%

2.2%

755

509

685

 Visa Inc.

1,176

21.5%

12.7%

745

20.9%

13.6%

13,213

431

22.6%

11.2%

2,906

1,524

1,824














Visa Credit Programs












 US

$194

-0.8%

-0.8%

$182

3.4%

3.4%

2,121

$12

-39.6%

-39.6%

16

217

280

 Rest of

   World

305

29.3%

10.9%

266

30.8%

12.2%

3,459

39

19.9%

2.9%

138

431

493

 Visa Inc.

499

15.6%

6.1%

449

18.0%

8.4%

5,580

50

-2.2%

-11.4%

154

648

773














Visa Debit Programs












 US

$324

19.1%

19.1%

$245

20.9%

20.9%

6,452

$79

13.6%

13.6%

738

292

405

 Rest of

   World

353

33.7%

17.3%

51

53.0%

29.7%

1,181

302

30.9%

15.5%

2,013

584

646

 Visa Inc.

677

26.3%

18.2%

296

25.5%

22.4%

7,633

381

26.8%

15.1%

2,751

876

1,051




For the 3 Months Ended December 31, 2009





Total

Volume

($ billions)

Growth

(Nominal

USD)

Growth

(Constant

USD)

Payments

Volume  

($ billions)

Growth

(Nominal

USD)

Growth

(Constant

USD)

Payments

Transactions

(millions)

Cash

Volume

($ billions)

Growth

(Nominal

USD)

Growth

(Constant

USD)

Cash

Transactions

(millions)

Accounts

(millions)

Cards

(millions)














All Visa Credit & Debit












 Asia

   Pacific

$318

30.6%

19.0%

$197

22.1%

10.1%

2,541

$121

47.4%

36.8%

570

442

531

 Canada

52

20.5%

2.2%

48

24.0%

5.2%

430

4

-10.1%

-23.8%

9

24

31

 CEMEA

146

8.4%

9.0%

23

20.9%

14.6%

353

124

6.4%

8.0%

794

192

196

 LAC

191

33.0%

13.0%

64

37.5%

16.0%

1,516

127

30.9%

11.4%

873

331

359

 US

530

5.0%

5.0%

438

7.3%

7.3%

8,755

92

-4.7%

-4.7%

759

511

691

 Visa Inc.

1,238

15.6%

9.8%

770

14.2%

8.7%

13,596

468

18.0%

11.7%

3,004

1,500

1,808















Visa Credit Programs












 US

$215

-6.9%

-6.9%

$201

-1.0%

-1.0%

2,373

$14

-49.8%

-49.8%

19

227

297

 Rest of

   World

317

19.5%

6.6%

278

22.0%

8.4%

3,611

39

3.7%

-4.8%

141

425

488

 Visa Inc.

532

7.2%

0.7%

479

11.2%

4.3%

5,983

53

-19.1%

-23.0%

160

653

784















Visa Debit Programs












 US

$316

15.0%

15.0%

$238

15.4%

15.4%

6,382

$78

13.6%

13.6%

740

283

394

 Rest of

   World

390

30.2%

20.4%

53

43.1%

24.7%

1,230

337

28.4%

19.7%

2,104

564

630

 Visa Inc.

706

22.9%

17.9%

291

19.7%

17.0%

7,612

415

25.3%

18.5%

2,845

847

1,024





For the 3 Months Ended September 30, 2009





Total

Volume

($ billions)

Growth

(Nominal

USD)

Growth

(Constant

USD)

Payments

Volume

($ billions)

Growth

(Nominal

USD)

Growth

(Constant

USD)

Payments

Transactions

(millions)

Cash

Volume

($ billions)

Growth

(Nominal

USD)

Growth

(Constant

USD)

Cash

Transactions

(millions)

Accounts

(millions)

Cards

(millions)














All Visa Credit & Debit












 Asia

   Pacific

$281

12.5%

10.6%

$183

12.0%

8.8%

2,475

$98

13.4%

14.0%

534

433

521

 Canada

48

-3.3%

-3.1%

44

-1.0%

-0.8%

412

4

-23.1%

-22.9%

9

24

31

 CEMEA

134

-6.5%

5.2%

21

0.7%

5.5%

320

113

-7.7%

5.1%

738

187

190

 LAC

166

4.6%

11.4%

55

9.1%

14.7%

1,366

111

2.6%

9.8%

815

323

350

 US

511

-2.7%

-2.7%

417

-1.0%

-1.0%

8,402

93

-9.9%

-9.9%

774

495

673

 Visa Inc.

1,140

1.2%

3.1%

720

2.8%

2.7%

12,975

420

-1.5%

3.9%

2,871

1,462

1,765















Visa Credit Programs












 US

$210

-14.2%

-14.2%

$195

-8.6%

-8.6%

2,299

$16

-51.6%

-51.6%

21

230

301

 Rest of

   World

295

5.1%

4.9%

258

7.8%

6.5%

3,474

37

-10.1%

-4.7%

140

423

485

 Visa Inc.

505

-3.9%

-4.0%

452

0.1%

-0.6%

5,773

53

-28.3%

-25.9%

161

652

786















Visa Debit Programs












 US

$300

7.4%

7.4%

$223

6.8%

6.8%

6,102

$78

8.9%

8.9%

753

265

372

 Rest of

   World

334

4.1%

11.7%

45

13.3%

18.2%

1,100

289

2.8%

10.7%

1,957

544

607

 Visa Inc.

635

5.6%

9.6%

268

7.9%

8.6%

7,202

367

4.0%

10.3%

2,710

809

979





For the 12 Months Ended September 30, 2010



Total

Volume

($ billions)

Growth

(Nominal

USD)

Growth

(Constant

USD)

Payments

Volume

($ billions)

Growth

(Nominal

USD)

Growth

(Constant

USD)

Payments

Transactions

(millions)

Cash

Volume

($ billions)

Growth

(Nominal

USD)

Growth

(Constant

USD)

Cash

Transactions

(millions)












All Visa Credit & Debit










 Asia

   Pacific

$1,247

23.2%

13.7%

$800

22.0%

12.0%

10,240

$447

25.4%

16.9%

2,287

 Canada

204

18.9%

5.6%

187

20.6%

7.2%

1,698

17

2.8%

-9.3%

35

 CEMEA

605

21.6%

19.2%

97

28.7%

23.5%

1,523

508

20.3%

18.4%

3,279

 LAC

754

28.2%

16.4%

253

30.8%

20.3%

6,111

502

26.9%

14.5%

3,413

 US

2,189

10.1%

10.1%

1,808

11.8%

11.8%

36,594

380

2.4%

2.4%

3,243

 Visa Inc.

5,000

17.4%

12.7%

3,145

16.6%

12.5%

56,165

1,855

18.7%

13.1%

12,258












Visa Credit Programs










 US

$841

-0.6%

-0.6%

$794

3.6%

3.6%

9,270

$46

-41.5%

-41.5%

69

 Rest of

   World

1,282

20.3%

10.4%

1,116

20.9%

10.8%

14,564

166

16.5%

7.7%

590

 Visa Inc.

2,122

11.0%

5.7%

1,910

13.0%

7.7%

23,834

212

-4.3%

-9.1%

659












Visa Debit Programs










 US

$1,348

18.0%

18.0%

$1,014

19.2%

19.2%

27,323

$334

14.4%

14.4%

3,174

 Rest of

   World

1,529

26.9%

19.0%

220

41.4%

29.6%

5,007

1,309

24.7%

17.3%

8,425

 Visa Inc.

2,877

22.5%

18.5%

1,235

22.6%

20.9%

32,331

1,643

22.5%

16.7%

11,599




For the 12 Months Ended September 30, 2009





Total

Volume

($ billions)

Growth

(Nominal

USD)

Growth

(Constant

USD)

Payments

Volume

($ billions)

Growth

(Nominal

USD)

Growth

(Constant

USD)

Payments

Transactions

(millions)

Cash

Volume

($ billions)

Growth

(Nominal

USD)

Growth

(Constant

USD)

Cash

Transactions

(millions)

Accounts

(millions)

Cards

(millions)














All Visa Credit & Debit












 Asia

   Pacific

$1,012

2.7%

10.5%

$656

2.1%

9.7%

9,193

$357

3.9%

12.2%

2,152

433

521

 Canada

172

-13.5%

-1.4%

155

-11.9%

0.3%

1,549

17

-25.6%

-14.5%

35

24

31

 CEMEA

498

-1.1%

15.4%

75

0.5%

12.2%

1,189

423

-1.3%

16.0%

2,833

187

190

 LAC

589

-2.2%

16.2%

193

0.0%

17.2%

5,295

395

-3.2%

15.7%

3,236

323

350

 US

1,989

-3.2%

-3.2%

1,617

-1.7%

-1.7%

32,032

371

-9.0%

-9.0%

2,949

495

673

 Visa Inc.

4,260

-1.9%

4.6%

2,697

-1.3%

2.7%

49,259

1,563

-3.0%

7.9%

11,205

1,462

1,765














Visa Credit Programs












 US

$846

-13.4%

-13.4%

$766

-8.7%

-8.7%

9,047

$80

-42.1%

-42.1%

92

230

301

 Rest of

   World

1,066

-2.9%

6.9%

923

-1.5%

7.8%

13,090

142

-11.4%

1.4%

557

423

485

 Visa Inc.

1,911

-7.8%

-2.7%

1,690

-4.9%

0.0%

22,136

222

-25.6%

-19.3%

648

652

786














Visa Debit Programs












 US

$1,143

6.0%

6.0%

$851

5.4%

5.4%

22,985

$292

7.8%

7.8%

2,858

265

372

 Rest of

   World

1,205

1.2%

16.8%

156

4.7%

21.4%

4,137

1,049

0.7%

16.1%

7,699

544

607

 Visa Inc.

2,348

3.5%

11.5%

1,007

5.3%

7.8%

27,122

1,341

2.1%

14.3%

10,557

809

979

Footnote

The preceding 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.

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 reported quarterly by Visa’s members on their operating certificates and is subject to verification by Visa.  On occasion, members may update previously submitted information.

Visa’s CEMEA region is comprised of countries in Central Europe, the Middle East and Africa. For the 3 months ended September, 2009, Pakistan and Afghanistan were moved from the AP to CEMEA region. 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. Rest of World 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.

2. Cross Border Volume

The table below represents cross border volume growth for cards carrying the Visa, Visa Electron, Interlink and PLUS brands. Cross border volume refers to payments and cash volume where the issuing country is different from the merchant country.

Period

Growth

(Nominal

USD)

Growth

(Constant

USD)



3 Months Ended

Sep 30, 2010

16%

16%

Jun 30, 2010

20%

17%

Mar 31, 2010

19%

12%

Dec 31, 2009

8%

2%

Sep 30, 2009

(9%)

(5%)



12 Months Ended

Sep 30, 2010

16%

12%

Sep 30, 2009

(11%)

(5%)

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. CyberSource transactions are reported in the next section.

Period

Processed

Transactions

(millions)

Growth



3 Months Ended

Sep 30, 2010

12,119

16%

Jun 30, 2010

11,721

14%

Mar 31, 2010

10,648

14%

Dec 31, 2009

10,924

12%

Sep 30, 2009

10,463

9%



12 Months Ended

Sep 30, 2010

45,411

14%

Sep 30, 2009

39,885

8%

4. CyberSource Transactions

The table below represents billable transactions processed on CyberSource’s network that generate revenue for CyberSource.

Period

Billable

Transactions

(millions)

Growth



3 Months Ended

Sep 30, 2010

829

36%

Jun 30, 2010

759

31%

Mar 31, 2010

738

34%

Dec 31, 2009

707

29%

Sep 30, 2009

611

30%



12 Months Ended

Sep 30, 2010

3,032

32%

Sep 30, 2009

2,289

29%

SOURCE Visa Inc.

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