Visa Inc. Reports Fiscal First Quarter 2014 Net Income of $1.4 billion or $2.20 per diluted share

- Broad-based net revenue growth of 11%

- Company repurchased 5.5 million shares during the quarter for $1.1 billion and has $4.2 billion in remaining authorization

News provided by

Visa Inc.

Jan 30, 2014, 07:01 ET

FOSTER CITY, Calif., Jan. 30, 2014 /PRNewswire/ -- Visa Inc. (NYSE: V) today announced financial results for the Company's fiscal first quarter 2014. Net income for the fiscal first quarter was $1.4 billion or $2.20 per share, an increase of 9% and 14%, respectively, over the prior year results. 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 2014 was $3.2 billion, an increase of 11% over the prior year, driven by strong growth in service revenues, data processing revenues and international transaction revenues. The strengthening of the U.S. dollar impacted net operating revenues by 2 percentage points of negative growth during the quarter.

"Visa delivered a strong fiscal first quarter, posting solid revenue, net income and earnings growth. We continue to focus on embracing new partners and new technology which will make our network the one of choice.  We also continue to build services for issuers, acquirers and merchants to make our network a valuable asset for our clients," said Charlie Scharf, Chief Executive Officer of Visa Inc. 

"The recent series of data compromises are terribly unfortunate for everyone involved.  However, the established and well understood rules that govern traditional networks coupled with the cooperation between merchants, financial institutions, and the networks have minimized the level of the monetary losses. But these incidents remind us of the need for all of us to continue to work together to secure payments from criminals. Visa is committed to ensuring our network operates at the highest level of security available and will continue to move the industry towards the adoption of new safeguards including EMV chip and tokenization. We also will work with all participants to look beyond these technologies," added Scharf.

Fiscal First Quarter 2014 Financial Highlights:

Payments volume growth, on a constant dollar basis, for the three months ended September 30, 2013, on which fiscal first quarter service revenue is recognized, was 13% over the prior year at $1.1 trillion.

Payments volume growth, on a constant dollar basis, for the three months ended December 31, 2013, was 11% over the prior year at $1.2 trillion.

Cross-border volume growth, on a constant dollar basis, was 12% for the three months ended December 31, 2013.

Total processed transactions, which represent transactions processed by VisaNet, for the three months ended December 31, 2013, were 16.0 billion, a 13% increase over the prior year.

Fiscal first quarter 2014 service revenues were $1.4 billion, an increase of 9% 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 $1.3 billion. International transaction revenues, which are driven by cross-border volume, grew 11% over the prior year to $891 million. Other revenues, which include the Visa Europe licensing fee, were $180 million, flat over the prior year. Client incentives, which are a contra revenue item, were $599 million and represent 16.0% of gross revenues.

Total operating expenses were $1.1 billion for the quarter, a 3% increase over the prior year, primarily due to network and processing fees, personnel, and depreciation and amortization associated with investments in technology projects to support our global growth initiatives.

The effective tax rate was 32.4% for the quarter ended December 31, 2013.

Cash, cash equivalents, and available-for-sale investment securities were $7.0 billion at December 31, 2013.

The weighted-average number of diluted shares of class A common stock outstanding was 639 million for the quarter ended December 31, 2013.

Notable Events:

During the three months ended December 31, 2013, the Company repurchased 5.5 million shares of class A common stock, at an average price of $199.56 per share, using $1.1 billion of cash on hand.  At December 31, 2013, the Company had $4.2 billion of remaining funds, authorized by the board of directors, available for share repurchase under the current program.

On January 29, 2014, the board of directors declared a quarterly cash dividend of $0.40 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 4, 2014, to all holders of record of the Company's class A, class B and class C common stock as of February 14, 2014.

In addition, on January 29, 2014, the Company held its 2014 annual meeting of stockholders during which holders of the Company's class A common stock at the close of business on December 3, 2013, voted on the three proposals enumerated in the Company's proxy statement.  All of management's proposals were approved.

Financial Outlook:

Visa Inc. affirms its financial outlook for the following metrics for fiscal full-year 2014:

  • Annual net revenue growth: Low double-digits on a constant dollar basis, with an expectation of two percentage points of negative foreign currency impact;
  • Client incentives as a percent of gross revenues: 16.5% to 17.5% range;
  • Annual operating margin: Low 60s;
  • Annual diluted class A common stock earnings per share growth: Mid to high teens; and
  • Annual free cash flow: About $5 billion.

Fiscal First Quarter 2014 Earnings Results Conference Call Details:
Visa's executive management team will host a live audio webcast beginning at 8:30 a.m. Eastern Time (5:30 a.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 47,000 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 corporate.visa.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 "believes," "estimates," "expects," "intends," "may," "projects," "could," "should," "will," "will continue" and other similar expressions. Examples of forward-looking statements include, but are not limited to, statements we make about our revenue, client incentives, operating margin, 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 payment 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 payment networks outside the United States; and
    • increased regulation on 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;
    • material changes in cross-border activity, foreign exchange controls and fluctuations in currency exchange rates; and
    • material changes in our financial institution clients' performance compared to our estimates;
  • industry developments, such as competitive pressure, rapid technological developments, and disintermediation from our payments network;
  • system developments, such as:
    • disruption of our transaction processing systems or the inability to process transactions efficiently;
    • account data breaches or increased fraudulent or other illegal activities involving Visa-branded cards or payment products; and
    • failure to maintain systems interoperability with Visa Europe;
  • 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, 2013 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.

Contacts:
Investor Relations: Jack Carsky or Victoria Hyde-Dunn, 650-432-7644, [email protected] 
Media Relations: Paul Cohen, 650-432-2990, [email protected]

VISA INC.


CONSOLIDATED BALANCE SHEETS


(UNAUDITED)



 December 31,
2013 

September 30,
2013

(in millions, except par value data)

Assets


Cash and cash equivalents

$                           2,121

$                           2,186

Restricted cash—litigation escrow

49

49

Investment securities:


Trading

89

75

Available-for-sale

1,880

1,994

Income tax receivable

20

142

Settlement receivable

888

799

Accounts receivable

840

761

Customer collateral

886

866

Current portion of client incentives

235

282

Deferred tax assets

466

481

Prepaid expenses and other current assets

291

187




Total current assets

7,765

7,822




Investment securities, available-for-sale

3,040

2,760

Client incentives

98

89

Property, equipment and technology, net

1,746

1,732

Other assets

584

521

Intangible assets, net

11,334

11,351

Goodwill

11,681

11,681




Total assets

$                         36,248

$                         35,956




Liabilities


Accounts payable

$                               101

$                               184

Settlement payable

1,246

1,225

Customer collateral

886

866

Accrued compensation and benefits

337

523

Client incentives

864

919

Accrued liabilities

947

613

Accrued litigation

4

5




Total current liabilities

4,385

4,335




Deferred tax liabilities

4,160

4,149

Other liabilities

689

602




Total liabilities

9,234

9,086




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, 505 and

   508 shares issued and outstanding at December 31, 2013 and September 30,

   2013, respectively

—

—

Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares

   issued and outstanding at December 31, 2013 and September 30, 2013

—

—

Class C common stock, $0.0001 par value, 1,097 shares authorized, 26 and 27

   shares issued and outstanding at December 31, 2013 and September 30, 2013,

   respectively

—

—

Additional paid-in capital

18,702

18,875

Accumulated income

8,269

7,974

Accumulated other comprehensive income (loss), net:


Investment securities, available-for-sale

70

59

Defined benefit pension and other postretirement plans

(60)

(60)

Derivative instruments classified as cash flow hedges

34

23

Foreign currency translation adjustments

(1)

(1)




Total accumulated other comprehensive income, net

43

21




Total equity

27,014

26,870




Total liabilities and equity

$                         36,248

$                         35,956

VISA INC.


CONSOLIDATED STATEMENTS OF OPERATIONS


(UNAUDITED)







Three Months Ended
December 31, 

2013

2012

(in millions, except per share data)

Operating Revenues


Service revenues

$                       1,419

$                       1,300

Data processing revenues

1,264

1,115

International transaction revenues

891

805

Other revenues

180

179

Client incentives

(599)

(553)




Total operating revenues

3,155

2,846




Operating Expenses


Personnel

470

454

Marketing

186

193

Network and processing

132

110

Professional fees

75

88

Depreciation and amortization

107

92

General and administrative

108

106

Litigation provision 

—

3




Total operating expenses

1,078

1,046




Operating income

2,077

1,800




Non-operating income

6

1




Income before income taxes 

2,083

1,801




Income tax provision

676

508

Net income

$                       1,407

$                       1,293




Basic earnings per share 


   Class A common stock

$                         2.21

$                         1.94




   Class B common stock

$                         0.93

$                         0.82




   Class C common stock

$                         2.21

$                         1.94




Basic weighted-average shares outstanding 


   Class A common stock

505

531




   Class B common stock

245

245




   Class C common stock

27

30




Diluted earnings per share 


   Class A common stock

$                         2.20

$                         1.93




   Class B common stock

$                         0.93

$                         0.81




   Class C common stock 

$                         2.20

$                         1.93




Diluted weighted-average shares outstanding 


   Class A common stock

639

669




   Class B common stock

245

245




   Class C common stock 

27

30

VISA INC.


CONSOLIDATED STATEMENTS OF CASH FLOWS


(UNAUDITED)



Three Months Ended December 31,

2013

2012

(in millions)

Operating Activities


Net income

$                    1,407

$                    1,293

Adjustments to reconcile net income to net cash provided by (used in) operating

   activities:


Amortization of client incentives

599

553

Share-based compensation

45

48

Excess tax benefit for share-based compensation

(54)

(50)

Depreciation and amortization of property, equipment, technology and intangible

   assets

107

92

Deferred income taxes

19

1,622

Other

5

12

Change in operating assets and liabilities:


Income tax receivable

122

(1,162)

Settlement receivable

(89)

(405)

Accounts receivable

(79)

(78)

Client incentives

(616)

(453)

Other assets

(199)

(228)

Accounts payable

(80)

1

Settlement payable

21

353

Accrued and other liabilities

334

(38)

Accrued litigation 

(1)

(4,384)

Net cash provided by (used in) operating activities

1,541

(2,824)




Investing Activities


Purchases of property, equipment, technology and intangible assets

(120)

(100)

Investment securities, available-for-sale:


Purchases

(754)

(1,184)

Proceeds from sales and maturities

600

418

Purchases of / contributions to other investments

(2)

-

Proceeds / distributions from other investments

-

1

Net cash used in investing activities

(276)

(865)




Financing Activities


Repurchase of class A common stock 

(1,091)

(1,253)

Dividends paid 

(254)

(220)

Payments from litigation escrow account—retrospective responsibility plan 

-

4,383

Cash proceeds from exercise of stock options 

38

70

Restricted stock and performance shares settled in cash for taxes

(77)

(64)

Excess tax benefit for share-based compensation 

54

50

Payments for earn-out related to PlaySpan acquisition

-

(12)

Principal payments on capital lease obligations 

-

(5)

Net cash (used in) provided by financing activities 

(1,330)

2,949

Decrease in cash and cash equivalents 

(65)

(740)

Cash and cash equivalents at beginning of year 

2,186

2,074

Cash and cash equivalents at end of period

$                    2,121

$                    1,334




Supplemental Disclosure


Income taxes paid, net of refunds

$                          96

$                          45

Non-cash accruals related to purchases of property, equipment, technology and

   intangible assets

$                          20

$                          33

VISA INC.








FISCAL 2014 AND 2013 QUARTERLY RESULTS OF OPERATIONS

(UNAUDITED)



















Fiscal 2014 Quarter

Ended

Fiscal 2013 Quarter Ended











December 31,
2013

September 30,
2013

June 30,
2013

March 31,
2013

December 31,
2012

(in millions)

Operating Revenues








Service revenues

$                      1,419

$                      1,385

$                      1,298

$                      1,369

$                      1,300

Data processing revenues

1,264

1,186

1,191

1,150

1,115

International transaction revenues

891

899

854

831

805

Other revenues

180

183

179

175

179

Client incentives

(599)

(680)

(521)

(567)

(553)










Total operating revenues

3,155

2,973

3,001

2,958

2,846










Operating Expenses








Personnel

470

499

493

486

454

Marketing

186

236

252

195

193

Network and processing

132

122

117

119

110

Professional fees

75

130

103

91

88

Depreciation and amortization

107

106

101

98

92

General and administrative

108

129

108

108

106

Litigation provision

—

—

(1)

1

3










Total operating expenses

1,078

1,222

1,173

1,098

1,046










Operating income

2,077

1,751

1,828

1,860

1,800










Non-operating income (expense)

6

15

5

(3)

1










Income before income taxes

2,083

1,766

1,833

1,857

1,801

Income tax provision

676

574

608

587

508










Net income

$                      1,407

$                      1,192

$                      1,225

$                      1,270

$                      1,293

Operational Performance Data

The tables below provide information regarding the available operational results for the 3 months ended December 31, 2013, as well as the prior four quarterly reporting periods and the 12 months ended December 31, 2013 and 2012, 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 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, 2013





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

$492

7.2%

12.4%

$338

7.9%

13.8%

3,681

$154

5.7%

9.4%

889

Canada

66

-0.3%

5.3%

61

-0.4%

5.2%

607

5

0.5%

6.2%

11

CEMEA

287

9.7%

13.6%

63

24.6%

30.2%

1,235

224

6.1%

9.7%

1,177

LAC

287

2.0%

10.9%

110

5.6%

16.0%

2,508

177

-0.2%

7.9%

1,066

US         

704

7.4%

7.4%

590

8.3%

8.3%

11,541

114

3.3%

3.3%

884

Visa Inc.

1,836

6.5%

10.1%

1,163

8.2%

11.4%

19,571

673

3.8%

8.0%

4,026















Visa Credit Programs












US

$300

9.2%

9.2%

$287

9.5%

9.5%

3,434

$12

2.5%

2.5%

16

International

502

5.0%

11.3%

449

5.5%

12.2%

5,298

53

0.5%

4.2%

196

Visa Inc.

801

6.5%

10.5%

736

7.0%

11.2%

8,732

65

0.9%

3.8%

212















Visa Debit Programs












US

$404

6.2%

6.2%

$303

7.2%

7.2%

8,107

$102

3.3%

3.3%

867

International

631

6.8%

12.3%

124

18.6%

25.2%

2,733

507

4.3%

9.5%

2,946

Visa Inc.

1,035

6.6%

9.8%

427

10.3%

11.8%

10,839

608

4.1%

8.4%

3,814



















For the 3 Months Ended September 30, 2013





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

$464

8.2%

13.6%

$314

8.5%

14.7%

3,557

$150

7.5%

11.2%

854

610

710

Canada

65

4.6%

9.4%

60

4.8%

9.6%

602

5

2.3%

7.0%

12

32

41

CEMEA

265

12.2%

16.1%

57

26.8%

32.7%

1,121

207

8.8%

12.2%

1,120

290

294

LAC

259

1.6%

11.8%

98

4.4%

16.0%

2,348

161

0.0%

9.4%

998

403

431

US         

692

9.3%

9.3%

575

10.3%

10.3%

11,398

117

4.8%

4.8%

932

545

713

Visa Inc.

1,745

8.0%

11.8%

1,104

9.6%

13.0%

19,026

640

5.4%

9.8%

3,916

1,879

2,188














Visa Credit Programs












US

$290

10.9%

10.9%

$277

11.0%

11.0%

3,324

$12

8.2%

8.2%

16

210

285

International

470

6.3%

12.9%

420

6.9%

14.0%

5,138

50

1.8%

5.1%

196

468

526

Visa Inc.

760

8.0%

12.1%

697

8.5%

12.8%

8,462

63

3.0%

5.7%

212

678

811














Visa Debit Programs












US

$402

8.2%

8.2%

$298

9.6%

9.6%

8,074

$104

4.4%

4.4%

916

334

428

International

582

7.9%

13.9%

109

17.7%

24.9%

2,491

473

5.9%

11.6%

2,788

867

949

Visa Inc.

984

8.0%

11.5%

407

11.6%

13.3%

10,564

577

5.6%

10.3%

3,704

1,201

1,377


















For the 3 Months Ended June 30, 2013





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

$456

10.6%

13.2%

$304

9.7%

13.7%

3,354

$152

12.4%

12.2%

818

592

692

Canada

64

5.1%

5.8%

59

5.5%

6.2%

568

5

0.7%

1.3%

11

31

40

CEMEA

263

13.4%

15.7%

55

28.1%

32.0%

1,047

208

10.0%

12.0%

1,147

291

289

LAC

270

9.4%

12.5%

101

13.1%

17.7%

2,305

169

7.4%

9.6%

975

401

430

US         

686

10.4%

10.4%

571

11.3%

11.3%

11,217

115

5.8%

5.8%

906

538

702

Visa Inc.

1,739

10.5%

12.0%

1,089

11.4%

13.2%

18,491

650

9.0%

10.2%

3,857

1,853

2,153














Visa Credit Programs












US

$282

10.1%

10.1%

$270

10.0%

10.0%

3,187

$12

11.6%

11.6%

15

206

280

International

463

8.2%

11.8%

412

8.7%

12.7%

4,915

51

4.2%

5.3%

199

466

525

Visa Inc.

745

8.9%

11.2%

682

9.3%

11.6%

8,102

63

5.5%

6.4%

214

672

805














Visa Debit Programs












US

$404

10.6%

10.6%

$300

12.5%

12.5%

8,031

$103

5.2%

5.2%

891

332

422

International

591

12.6%

14.2%

107

23.9%

26.1%

2,358

484

10.4%

11.8%

2,752

848

926

Visa Inc.

994

11.8%

12.7%

407

15.3%

15.8%

10,389

587

9.4%

10.6%

3,643

1,180

1,348


















For the 3 Months Ended March 31, 2013





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

$449

10.1%

12.2%

$295

9.9%

12.8%

3,116

$154

10.6%

11.2%

755

581

682

Canada

56

0.3%

0.5%

51

1.3%

1.5%

489

5

-9.5%

-9.3%

10

29

38

CEMEA

242

15.2%

17.4%

50

28.1%

31.8%

932

192

12.3%

14.1%

1,070

278

277

LAC

262

5.0%

12.7%

99

8.5%

18.0%

2,240

164

2.9%

9.7%

926

402

431

US         

639

3.5%

3.5%

530

4.3%

4.3%

10,359

110

0.0%

0.0%

847

535

700

Visa Inc.

1,649

7.0%

9.0%

1,026

7.1%

8.8%

17,135

623

6.8%

9.3%

3,608

1,825

2,128














Visa Credit Programs












US

$255

9.2%

9.2%

$244

9.1%

9.1%

2,843

$12

13.3%

13.3%

14

206

278

International

441

7.1%

10.4%

394

7.7%

11.4%

4,582

48

2.0%

2.5%

181

462

522

Visa Inc.

697

7.9%

10.0%

638

8.2%

10.5%

7,425

59

4.1%

4.4%

196

668

801














Visa Debit Programs












US

$384

0.0%

0.0%

$286

0.5%

0.5%

7,516

$98

-1.4%

-1.4%

832

329

421

International

568

11.1%

14.8%

102

21.2%

26.0%

2,195

466

9.1%

12.6%

2,580

828

906

Visa Inc.

952

6.4%

8.3%

388

5.3%

6.2%

9,711

564

7.1%

9.9%

3,412

1,157

1,327


















For the 3 Months Ended December 31, 2012





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

$459

12.1%

11.7%

$313

13.5%

12.9%

3,264

$145

9.2%

9.2%

755

570

670

Canada

67

10.4%

6.6%

62

11.1%

7.3%

561

5

2.1%

-1.4%

11

28

38

CEMEA

261

18.6%

20.1%

51

31.5%

34.1%

917

211

15.9%

17.1%

1,148

273

272

LAC

282

6.9%

14.7%

104

10.7%

20.1%

2,372

178

4.8%

11.8%

1,014

402

431

US         

655

2.8%

2.8%

545

3.0%

3.0%

10,640

110

2.1%

2.1%

876

528

693

Visa Inc.

1,723

8.4%

9.4%

1,075

8.2%

8.5%

17,754

649

8.6%

10.9%

3,802

1,801

2,104














Visa Credit Programs












US

$274

10.5%

10.5%

$262

10.8%

10.8%

3,131

$12

4.2%

4.2%

16

204

277

International

478

10.8%

11.1%

425

12.0%

12.6%

4,860

52

2.3%

0.4%

196

460

518

Visa Inc.

752

10.7%

10.8%

688

11.5%

11.8%

7,991

64

2.6%

1.1%

212

663

795














Visa Debit Programs












US

$381

-2.1%

-2.1%

$282

-3.4%

-3.4%

7,509

$98

1.8%

1.8%

860

324

416

International

591

13.1%

16.7%

105

23.7%

27.9%

2,254

486

11.0%

14.6%

2,731

813

893

Visa Inc.

971

6.6%

8.3%

387

2.7%

3.2%

9,763

584

9.3%

12.1%

3,591

1,138

1,309


















For the 12 Months Ended December 31, 2013





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

$1,861

9.0%

12.8%

$1,252

9.0%

13.8%

13,707

$609

9.0%

11.0%

3,315

Canada

252

2.4%

5.3%

232

2.8%

5.7%

2,266

20

-1.5%

1.1%

44

CEMEA

1,057

12.5%

15.6%

226

26.8%

31.6%

4,334

831

9.1%

11.9%

4,514

LAC

1,078

4.4%

11.9%

407

7.8%

16.9%

9,402

671

2.4%

9.1%

3,965

US         

2,720

7.7%

7.7%

2,265

8.6%

8.6%

44,514

455

3.5%

3.5%

3,569

Visa Inc.

6,969

8.0%

10.7%

4,382

9.1%

11.6%

74,223

2,586

6.2%

9.3%

15,406















Visa Credit Programs












US

$1,127

9.9%

9.9%

$1,079

9.9%

9.9%

12,788

$48

8.7%

8.7%

62

International

1,876

6.6%

11.6%

1,675

7.2%

12.6%

19,933

201

2.1%

4.3%

772

Visa Inc.

3,003

7.8%

11.0%

2,753

8.2%

11.5%

32,720

249

3.3%

5.1%

834















Visa Debit Programs












US

$1,594

6.2%

6.2%

$1,187

7.3%

7.3%

31,727

$407

2.9%

2.9%

3,506

International

2,372

9.5%

13.7%

442

20.2%

25.5%

9,776

1,930

7.3%

11.3%

11,066

Visa Inc.

3,966

8.1%

10.6%

1,629

10.6%

11.7%

41,503

2,337

6.5%

9.8%

14,573



















For the 12 Months Ended December 31, 2012





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

$1,708

10.8%

11.5%

$1,149

11.9%

12.2%

12,256

$559

8.6%

10.1%

2,735

570

670

Canada

246

5.3%

6.3%

226

5.7%

6.7%

2,065

20

1.1%

2.3%

43

28

38

CEMEA

940

15.4%

21.0%

178

27.0%

34.0%

3,107

761

13.0%

18.3%

4,321

273

272

LAC

1,033

5.3%

16.1%

378

8.6%

20.7%

8,654

655

3.5%

13.6%

3,860

402

431

US         

2,527

2.6%

2.6%

2,087

2.2%

2.2%

41,122

440

4.1%

4.1%

3,550

528

693

Visa Inc.

6,453

6.9%

9.4%

4,017

6.6%

7.7%

67,203

2,436

7.6%

12.2%

14,509

1,801

2,104














Visa Credit Programs












US

$1,025

9.9%

9.9%

$981

10.4%

10.4%

11,591

$44

-0.5%

-0.5%

61

204

277

International

1,760

8.8%

11.0%

1,563

10.3%

12.6%

18,166

197

-1.7%

0.2%

759

460

518

Visa Inc.

2,785

9.2%

10.6%

2,544

10.4%

11.7%

29,757

241

-1.5%

0.1%

820

663

795














Visa Debit Programs












US

$1,501

-1.9%

-1.9%

$1,105

-4.1%

-4.1%

29,531

$396

4.6%

4.6%

3,490

324

416

International

2,167

10.9%

17.4%

368

17.9%

24.8%

7,915

1,799

9.6%

16.0%

10,200

813

893

Visa Inc.

3,668

5.3%

8.5%

1,473

0.6%

1.6%

37,446

2,194

8.7%

13.7%

13,689

1,138

1,309

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 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.


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.

2.  Cross Border Volume

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


Period




Growth

(Nominal

USD)

Growth

(Constant

USD)








3 Months Ended






Dec 31, 2013




11%

12%

Sep 30, 2013




9%

11%

Jun 30, 2013




11%

11%

Mar 31, 2013




10%

10%

Dec 31, 2012




11%

11%








12 Months Ended






Dec 31, 2013




10%

11%

Dec 31, 2012




10%

13%

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.

Period


Processed

Transactions

(millions)

Growth






3 Months Ended




Dec 31, 2013


15,985

13%

Sep 30, 2013


15,491

14%

Jun 30, 2013


14,972

14%

Mar 31, 2013


13,850

6%

Dec 31, 2012


14,159

4%






12 Months Ended




Dec 31, 2013


60,298

12%

Dec 31, 2012


53,883

4%

4.  CyberSource Transactions

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



Period


Billable

Transactions

(millions)

Growth






3 Months Ended




Dec 31, 2013


1,894

20%

Sep 30, 2013


1,696

24%

Jun 30, 2013


1,648

27%

Mar 31, 2013


1,608

25%

Dec 31, 2012


1,581

28%






12 Months Ended




Dec 31, 2013


6,846

24%

Dec 31, 2012


5,527

26%

SOURCE Visa Inc.

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