Visa Inc. Reports Fiscal Third Quarter 2013 Net Income of $1.2 billion or $1.88 per diluted share and Authorizes New $1.5 Billion Share Repurchase Program

-- Broad-based net revenue growth of 17%
-- Company repurchased 6 million shares during the quarter and authorized a new $1.5 billion share repurchase program

PR Newswire

FOSTER CITY, Calif., July 24, 2013 /PRNewswire/ -- Visa Inc. (NYSE:V) today announced financial results for the Company's fiscal third quarter 2013 ended June 30, 2013. Net income for the quarter was $1.2 billion or $1.88 per share, an increase of 16% and 20%, respectively, over the prior year adjusted results. The prior year results were adjusted to exclude a litigation provision of $4.1 billion and related tax benefits associated with the Multidistrict Litigation proceedings taken in the fiscal third quarter of 2012.

All references to earnings per share assume fully-diluted class A share count unless otherwise noted. The Company's adjusted quarterly net income per share of class A common stock is a non-GAAP financial measure that is reconciled to its most directly comparable GAAP measure in the accompanying financial tables.

Net operating revenue in the fiscal third quarter of 2013 was $3.0 billion, an increase of 17% over the prior year, driven by strong growth in service revenues, data processing revenues and international transaction revenues.

"Visa delivered solid financial performance during our fiscal third quarter and we remain confident in delivering our guidance for fiscal year 2013," said Charlie Scharf, Chief Executive Officer of Visa Inc. "We remain committed and focused on our long-term strategic goal of supporting our issuers, acquirers, merchants and government partners through flexibility and innovation in electronic payments.  We are accelerating opportunities to expand our network through mobile, eCommerce and data-driven solutions, while continuing to deliver value to our shareholders."

Fiscal Third Quarter 2013 Financial Highlights:

Payments volume growth, on a constant dollar basis, for the three months ended March 31, 2013, on which fiscal third quarter service revenue is recognized, was 9% over the prior year at $1.0 trillion.

Payments volume growth, on a constant dollar basis, for the three months ended June 30, 2013, was 13% over the prior year at $1.1 trillion.

Cross-border volume growth, on a constant dollar basis, was 11% for the three months ended June 30, 2013.

Total processed transactions, which represent transactions processed by VisaNet, for the three months ended June 30, 2013, were 15.0 billion, a 14% increase over the prior year.

Fiscal third quarter 2013 service revenues were $1.3 billion, an increase of 7% versus 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 $1.2 billion. International transaction revenues, which are driven by cross-border activity, grew 14% over the prior year to $854 million. Other revenues, which include the Visa Europe licensing fee, were $179 million, a 1% increase over the prior year. Client incentives, which are a contra revenue item, were $521 million and represent 15% of gross revenues.

Total operating expenses were $1.2 billion for the quarter, a 9% increase over the prior year adjusted results, mainly due to personnel, network and processing fees, and depreciation and amortization associated with investments in technology projects to support our global growth initiatives.

The effective tax rate was 33.2% for the quarter ended June 30, 2013.

Cash, cash equivalents, and available-for-sale investment securities were $6.5 billion at June 30, 2013.

The weighted-average number of diluted class A common stock outstanding was 651 million for the quarter ended June 30, 2013.

Notable Events:

During the three months ended June 30, 2013, the Company repurchased 6 million shares of class A common stock, at an average price of $176.75 per share, using $981 million of cash on hand.  At June 30, 2013, the Company had $61 million of remaining funds, authorized by the Board of Directors, available for share repurchase under the current program. In addition, the Board of Directors has authorized a new $1.5 billion class A share repurchase program. The authorization will be in place through July 2014, and is subject to further changes at the discretion of the Board.

As announced on July 16, 2013, the Board of Directors declared a quarterly dividend in the aggregate amount of $0.33 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 September 4, 2013, to all holders of record of the Company's class A, class B and class C common stock as of August 16, 2013.

Financial Outlook:

Visa Inc. updates its financial outlook for the following metrics for fiscal 2013:

  • Annual net revenue growth: Around 13%; and
  • Adjusted annual diluted class A common stock earnings per share growth: Low twenties.

Visa Inc. affirms its financial outlook for the following metrics for fiscal 2013:

  • Client incentives as a percent of gross revenues: 16% to 17% range;
  • Marketing expenses: Under $1 billion; 
  • Annual operating margin: About 60%;  
  • Tax rate: 30% to 32% range;
  • Capital expenditures: $425 million to $475 million range; and
  • Annual free cash flow: About $6 billion.

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

  • Annual net revenue growth: Low double digits;
  • Adjusted annual diluted class A common stock earnings per share growth: Mid to high teens; and
  • Annual free cash flow: About $5 billion.

Fiscal Third Quarter 2013 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 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 30,000 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, ahead of time with prepaid or later with credit products. For more information, visit 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," "continued," and similar references to the future. Examples of such forward-looking statements include, but are not limited to, statements we make about our revenue, earnings per share, incentive payments, expenses, operating margin, tax rate, capital expenditures, 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 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 laws, regulations and marketplace barriers, including:
    • rules capping debit interchange reimbursement fees promulgated under the U.S. Wall Street Reform and Consumer Protection Act, or the Dodd-Frank Act;
    • rules under the Dodd-Frank Act expanding issuers' and merchants' choice among debit payment networks;
    • increased regulation outside the United States and in other product categories;
    • increased government support of national payment networks outside the United States; and
    • rules about consumer privacy and data use and security;
  • developments in litigation and government enforcement, including:
    • those affecting interchange reimbursement fees, antitrust and tax disputes; and
    • our failure to satisfy the conditions necessary to make the multidistrict litigation settlement effective;
  • economic factors, such as:
    • an increase or spread of the current European crisis involving sovereign debt and the euro;
    • failure to resolve the current sequestration in the United States;
    • cross-border activity and currency exchange rates;
    • material changes in our clients' performance compared to our estimates; and
    • other global economic, political and health conditions;
  • industry developments, such as competitive pressure, rapid technological developments, and disintermediation from the payments value stream;
  • system developments, such as:
    • disruption of our transaction processing systems or the inability to process transactions efficiently;
    • account data compromises or increased fraudulent or other illegal activities involving our cards; and
    • issues arising at Visa Europe, including failure to maintain interoperability between our systems;
  • costs and liquidity needs 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;
  • failure to integrate acquisitions successfully or to effectively launch new products and businesses; and

the other factors discussed under the heading "Risk Factors" in our most recent Annual Report on Form 10−K on file with the U.S. Securities and Exchange Commission. 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, 650-432-7644, ir@visa.com
Media Relations: Paul Cohen or Erika White, 650-432-2990, globalmedia@visa.com

 

VISA INC.




CONSOLIDATED BALANCE SHEETS




(UNAUDITED)









June 30,
2013


September 30,
2012


(in millions, except par value data)

Assets




Cash and cash equivalents

$                      1,453


$                      2,074

Restricted cash—litigation escrow

49


4,432

Investment securities




Trading

73


66

Available-for-sale

1,822


677

Income tax receivable

600


179

Settlement receivable

459


454

Accounts receivable

779


723

Customer collateral

817


823

Current portion of client incentives

240


209

Deferred tax assets

429


2,027

Prepaid expenses and other current assets

220


122





Total current assets

6,941


11,786





Investment securities, available-for-sale

3,189


3,283

Client incentives

85


58

Property, equipment and technology, net

1,689


1,634

Other assets

332


151

Intangible assets, net

11,368


11,420

Goodwill

11,681


11,681





Total assets

$                   35,285


$                   40,013





Liabilities




Accounts payable

$                         131


$                         152

Settlement payable

817


719

Customer collateral

817


823

Accrued compensation and benefits

444


460

Client incentives

829


830

Accrued liabilities

628


584

Accrued litigation

5


4,386





Total current liabilities

3,671


7,954





Deferred tax liabilities

4,043


4,058

Other liabilities

568


371





Total liabilities

8,282


12,383





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, 515 and 535 shares issued
and outstanding at June 30, 2013, and September 30, 2012, respectively


Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and
outstanding at June 30, 2013, and September 30, 2012 


Class C common stock, $0.0001 par value, 1,097 shares authorized, 27 and 31 shares issued and
outstanding at June 30, 2013, and September 30, 2012, respectively


Additional paid-in capital

19,130


19,992

Accumulated income

7,989


7,809

Accumulated other comprehensive income (loss), net




Investment securities, available-for-sale

26


3

Defined benefit pension and other postretirement plans

(181)


(186)

Derivative instruments classified as cash flow hedges

40


13

Foreign currency translation adjustments

(1)


(1)





Total accumulated other comprehensive loss, net

(116)


(171)





Total equity

27,003


27,630





Total liabilities and equity

$                   35,285


$                   40,013

 

VISA INC.








CONSOLIDATED STATEMENTS OF OPERATIONS








(UNAUDITED)

















Three Months Ended
June 30, 


Nine Months Ended
June 30,


2013


2012


2013


2012


(in millions, except per share data)

Operating Revenues








Service revenues

$            1,298


$            1,216


$            3,967


$            3,608

Data processing revenues

1,191


1,040


3,456


2,913

International transaction revenues

854


748


2,490


2,229

Other revenues

179


175


533


532

Client incentives

(521)


(614)


(1,641)


(1,592)









Total operating revenues

3,001


2,565


8,805


7,690









Operating Expenses








Personnel

493


435


1,433


1,255

Marketing

252


242


640


602

Network and processing

117


102


346


303

Professional fees

103


99


282


251

Depreciation and amortization

101


84


291


244

General and administrative

108


112


322


320

Litigation provision 

(1)


4,098


3


4,098









Total operating expenses

1,173


5,172


3,317


7,073









Operating income (loss)

1,828


(2,607)


5,488


617









Non-operating income

5



3


2









Income (loss) before income taxes 

1,833


(2,607)


5,491


619

Income tax provision (benefit)

608


(768)


1,703


139









Net income (loss) including non-controlling interest

1,225


(1,839)


3,788


480

Loss attributable to non-controlling interest




2









Net income (loss) attributable to Visa Inc.

$            1,225


$          (1,839)


$            3,788


$               482









Basic earnings (loss) per share 








   Class A common stock

$              1.89


$            (2.74)


$              5.76


$              0.71









   Class B common stock

$              0.79


$            (1.16)


$              2.42


$              0.32









   Class C common stock

$              1.89


$            (2.74)


$              5.76


$              0.71









Basic weighted-average shares outstanding 








   Class A common stock

515


525


524


523









   Class B common stock

245


245


245


245









   Class C common stock

28


40


29


43









Diluted earnings (loss) per share 








   Class A common stock

$              1.88


$            (2.74)


$              5.74


$              0.71









   Class B common stock

$              0.79


$            (1.16)


$              2.41


$              0.32









   Class C common stock 

$              1.88


$            (2.74)


$              5.74


$              0.71









Diluted weighted-average shares outstanding 








   Class A common stock

651


672


660


681









   Class B common stock

245


245


245


245









   Class C common stock 

28


40


29


43

 

VISA INC.




CONSOLIDATED STATEMENTS OF CASH FLOWS




(UNAUDITED)









Nine Months Ended June 30,


2013


2012


(in millions)

Operating Activities




Net income including non-controlling interest

$                    3,788


$                       480

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




Amortization of client incentives

1,641


1,592

Share-based compensation

139


112

Excess tax benefit for share-based compensation

(64)


(42)

Depreciation and amortization of property, equipment, technology and intangible assets

291


244

Deferred income taxes

1,562


(1,427)

Litigation provision and accretion

3


4,099

Other

39


(34)

Change in operating assets and liabilities:




Income tax receivable

(421)


(41)

Settlement receivable

(5)


(31)

Accounts receivable

(56)


(231)

Client incentives

(1,700)


(1,315)

Other assets

(310)


Accounts payable

5


(58)

Settlement payable

98


298

Accrued and other liabilities

351


134

Accrued litigation 

(4,384)


(140)





Net cash provided by operating activities

977


3,640





Investing Activities




Purchases of property, equipment, technology and intangible assets

(333)


(270)

Proceeds from disposal of property, equipment and technology


2

Investment securities, available-for-sale:




Purchases

(2,789)


(3,326)

Proceeds from sales and maturities

1,767


1,640

Net distributions from other investments

1


14

Acquisitions, net of cash received


(3)





Net cash used in investing activities

(1,354)


(1,943)





Financing Activities




Repurchase of class A common stock 

(4,054)


(536)

Dividends paid 

(653)


(448)

Deposits into litigation escrow account—retrospective responsibility plan


(1,565)

Payments from litigation escrow account—retrospective responsibility plan 

4,383


140

Cash proceeds from exercise of stock options 

98


111

Restricted stock and performance shares settled in cash for taxes

(64)


Excess tax benefit for share-based compensation 

64


42

Payment for earn-out related to PlaySpan acquisition

(12)


Principal payments on capital lease obligations 

(6)


(6)





Net cash used in financing activities 

(244)


(2,262)

Effect of exchange rate changes on cash and cash equivalents


(4)

Decrease in cash and cash equivalents 

(621)


(569)

Cash and cash equivalents at beginning of year 

2,074


2,127





Cash and cash equivalents at end of period 

$                    1,453


$                    1,558





Supplemental Disclosure of Cash Flow Information




Income taxes paid, net of refunds

$                       478


$                    1,575

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

technology and intangible assets

$                         27


$                         85

 

VISA INC.










FISCAL 2013 AND 2012 QUARTERLY RESULTS OF OPERATIONS

(UNAUDITED)





















Fiscal 2013 Quarter Ended


Fiscal 2012 Quarter Ended


June 30,
2013


March 31,
2013


December 31,
2012


September 30,
2012


June 30,
2012


(in millions)

Operating Revenues










Service revenues

$                1,298


$                1,369


$                1,300


$                1,264


$                1,216

Data processing revenues

1,191


1,150


1,115


1,062


1,040

International transaction revenues

854


831


805


796


748

Other revenues

179


175


179


172


175

Client incentives

(521)


(567)


(553)


(563)


(614)











Total operating revenues

3,001


2,958


2,846


2,731


2,565











Operating Expenses










Personnel

493


486


454


471


435

Marketing

252


195


193


271


242

Network and processing

117


119


110


111


102

Professional fees

103


91


88


134


99

Depreciation and amortization

101


98


92


89


84

General and administrative

108


108


106


131


112

Litigation provision

(1)


1


3


2


4,098











Total operating expenses

1,173


1,098


1,046


1,209


5,172











Operating income (loss)

1,828


1,860


1,800


1,522


(2,607)











Non-operating income (expense)

5


(3)


1


66












Income (loss) before income taxes

1,833


1,857


1,801


1,588


(2,607)

Income tax provision (benefit)

608


587


508


(74)


(768)











Net income (loss) attributable to Visa Inc.

$                1,225


$                1,270


$                1,293


$                1,662


$               (1,839)

 


VISA INC.


















Reconciliation of Non-GAAP Financial Results










US$ in millions, except percentages and per share data











Our reported financial results for the three months ended June 30, 2012 included a litigation provision of $4.1 billion and related tax benefits associated with the interchange MDL, which is covered by the retrospective responsibility plan. We believe the presentation of adjusted financial results excluding the litigation provision adjustment provides a clearer understanding of our operating performance in that period. The following table presents our financial results for the three months ended June 30, 2013, as compared to our adjusted financial results for the three months ended June 30, 2012.




Three Months Ended June 30,




Operating expenses


Operating margin(1)


Net income (loss)
attributable to Visa Inc.


Diluted earnings (loss)
per share(2)




2013


2012


2013


2012


2013


2012


2013


2012


As reported


$  1,173


$  5,172


61%


(102)%


$  1,225


$ (1,839)


$     1.88


$   (2.74)


Litigation provision



(4,098)



NM



2,894

(3)


4.30


Adjusted 


$  1,173


$  1,074


61%


58%


$  1,225


$  1,055


$     1.88


$     1.56


Weighted-average

number of diluted

shares outstanding(4)














651


675



















(1)

Operating margin is calculated as operating income (loss) divided by total operating revenues.





(2)

Figures in the table may not recalculate exactly due to rounding. Diluted earnings (loss) per share is calculated based on whole numbers, not the rounded
numbers presented.

(3)

The litigation provision adjustment to net income (loss) attributable to Visa Inc. is shown net of tax. The tax impact is determined by applying applicable federal and state tax rates to the litigation provision and applying any reserves for uncertain tax positions.

(4)

For the three months ended June 30, 2012, the computation of adjusted diluted earnings per share included the effect of 3 million incremental dilutive shares, which were excluded from the computation of reported diluted loss per share as they are considered anti-dilutive when applied to a net loss.

 

Operational Performance Data

The tables below provide information regarding the available operational results for the 3 months ended June 30, 2013, as well as the prior four quarterly reporting periods and the 12 months ended June 30, 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 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)

















All Visa Credit & Debit














Asia Pacific

$456

10.5%

13.1%

$304

9.7%

13.7%

3,337

$152

12.3%

12.1%

816



Canada

65

5.4%

6.0%

59

5.7%

6.3%

566

5

2.4%

3.0%

11



CEMEA

264

12.8%

15.1%

56

24.8%

28.4%

1,045

208

10.0%

12.0%

1,146



LAC

270

9.9%

13.0%

101

14.4%

19.2%

2,304

169

7.4%

9.5%

974



US         

683

10.3%

10.3%

570

11.3%

11.3%

11,207

113

5.8%

5.8%

892



Visa Inc.

1,737

10.5%

12.0%

1,090

11.4%

13.1%

18,459

647

9.0%

10.2%

3,840

















Visa Credit Programs














   US

$282

10.1%

10.1%

$270

10.0%

10.0%

3,185

$12

12.1%

12.1%

15



   Rest of World

463

8.5%

12.1%

412

9.0%

13.0%

4,902

51

4.3%

5.5%

199



   Visa Inc.

745

9.1%

11.4%

682

9.4%

11.8%

8,087

63

5.7%

6.7%

214

















Visa Debit Programs














   US

$401

10.5%

10.5%

$300

12.4%

12.4%

8,022

$101

5.1%

5.1%

877



   Rest of World

591

12.3%

13.9%

108

22.2%

24.4%

2,350

484

10.3%

11.8%

2,749



   Visa Inc.

992

11.6%

12.5%

408

14.9%

15.4%

10,372

585

9.4%

10.6%

3,626





















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

14.7%

16.8%

50

24.8%

28.4%

932

192

12.3%

14.1%

1,070

278

277

LAC

261

5.0%

12.8%

98

8.7%

18.4%

2,225

164

2.9%

9.7%

926

402

431

US         

637

3.5%

3.5%

530

4.3%

4.3%

10,355

108

-0.1%

-0.1%

831

541

706

Visa Inc.

1,646

6.9%

9.0%

1,025

7.0%

8.7%

17,117

621

6.8%

9.4%

3,592

1,831

2,134















Visa Credit Programs














   US

$255

9.2%

9.2%

$244

9.1%

9.1%

2,842

$12

12.8%

12.8%

15

206

278

   Rest of World

440

7.1%

10.4%

393

7.8%

11.5%

4,567

48

2.0%

2.5%

181

462

522

   Visa Inc.

696

7.9%

10.0%

637

8.2%

10.5%

7,409

59

4.0%

4.4%

196

668

801















Visa Debit Programs














   US

$382

0.0%

0.0%

$286

0.6%

0.6%

7,513

$96

-1.5%

-1.5%

817

336

428

   Rest of World

568

10.9%

14.5%

102

19.8%

24.4%

2,195

466

9.1%

12.6%

2,580

828

906

   Visa Inc.

950

6.3%

8.2%

388

5.0%

5.9%

9,708

562

7.1%

9.9%

3,396

1,164

1,333

















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%

12.6%

3,264

$145

9.2%

9.7%

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

18.3%

19.8%

51

29.8%

32.3%

917

211

15.8%

17.1%

1,148

273

272

LAC

281

6.9%

15.2%

103

10.7%

20.7%

2,355

178

4.8%

12.2%

1,014

402

431

US         

653

2.8%

2.8%

545

3.0%

3.0%

10,641

108

2.1%

2.1%

860

535

700

Visa Inc.

1,720

8.3%

9.6%

1,074

8.1%

8.6%

17,738

647

8.7%

11.2%

3,787

1,808

2,111















Visa Credit Programs














   US

$274

10.5%

10.5%

$262

10.8%

10.8%

3,131

$12

4.2%

4.2%

16

204

277

   Rest of World

477

10.8%

11.0%

424

12.0%

12.4%

4,843

52

2.3%

0.9%

196

460

518

   Visa Inc.

751

10.7%

10.8%

687

11.5%

11.8%

7,974

64

2.6%

1.5%

212

663

795















Visa Debit Programs














   US

$379

-2.1%

-2.1%

$282

-3.4%

-3.4%

7,510

$97

1.9%

1.9%

845

331

423

   Rest of World

590

12.9%

16.8%

105

22.9%

27.2%

2,254

486

11.0%

14.7%

2,731

813

893

   Visa Inc.

969

6.5%

8.6%

387

2.6%

3.4%

9,764

582

9.4%

12.4%

3,575

1,145

1,316



















For the 3 Months Ended September 30, 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

$429

6.7%

9.2%

$290

6.5%

8.2%

3,115

$139

7.3%

11.5%

693

558

659

Canada

62

2.3%

3.7%

57

2.8%

4.3%

528

5

-3.7%

-2.3%

11

27

35

CEMEA

238

11.9%

18.9%

47

27.0%

35.6%

805

191

8.8%

15.4%

1,070

264

265

LAC

254

1.9%

16.5%

92

3.5%

19.8%

2,165

161

0.9%

14.7%

941

395

424

US         

631

0.9%

0.9%

522

0.9%

0.9%

10,340

110

0.6%

0.6%

886

522

683

Visa Inc.

1,614

4.1%

7.9%

1,008

3.8%

5.9%

16,952

606

4.6%

11.2%

3,601

1,765

2,066















Visa Credit Programs














   US

$261

8.2%

8.2%

$250

9.2%

9.2%

2,977

$11

-9.9%

-9.9%

16

200

273

   Rest of World

441

4.9%

8.9%

392

6.2%

10.1%

4,593

49

-3.9%

0.1%

190

455

515

   Visa Inc.

703

6.1%

8.6%

642

7.3%

9.8%

7,570

61

-5.1%

-2.0%

205

656

788















Visa Debit Programs














   US

$370

-3.8%

-3.8%

$272

-5.7%

-5.7%

7,363

$98

2.0%

2.0%

870

322

410

   Rest of World

541

7.5%

16.4%

95

11.4%

20.2%

2,019

447

6.7%

15.6%

2,525

788

868

   Visa Inc.

911

2.6%

7.3%

366

-1.8%

-0.1%

9,382

545

5.8%

12.9%

3,396

1,109

1,278

















For the 3 Months Ended June 30, 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

$413

8.8%

11.2%

$277

11.5%

13.3%

3,001

$136

3.6%

7.2%

651

537

645

Canada

61

1.8%

6.3%

56

1.9%

6.4%

513

5

0.8%

5.2%

11

25

33

CEMEA

234

14.4%

23.5%

45

28.4%

39.6%

751

189

11.5%

20.3%

1,088

256

258

LAC

245

0.4%

15.7%

88

3.2%

19.7%

2,055

157

-1.0%

13.6%

967

385

415

US         

619

-0.6%

-0.6%

513

-1.1%

-1.1%

10,020

107

1.5%

1.5%

861

511

666

Visa Inc.

1,572

4.0%

8.1%

978

3.9%

6.1%

16,340

594

4.3%

11.5%

3,578

1,714

2,016















Visa Credit Programs














   US

$256

9.3%

9.3%

$246

9.7%

9.7%

2,880

$11

0.1%

0.1%

15

196

265

   Rest of World

426

6.7%

11.1%

378

8.5%

13.0%

4,437

49

-5.6%

-1.0%

192

451

511

   Visa Inc.

683

7.6%

10.4%

623

9.0%

11.6%

7,317

59

-4.6%

-0.8%

207

647

776















Visa Debit Programs














   US

$363

-6.6%

-6.6%

$267

-9.2%

-9.2%

7,140

$96

1.7%

1.7%

846

315

401

   Rest of World

526

7.8%

17.9%

88

16.9%

28.3%

1,883

438

6.2%

16.0%

2,525

752

839

   Visa Inc.

890

1.4%

6.4%

355

-3.9%

-2.3%

9,023

535

5.3%

13.1%

3,371

1,066

1,240


 Restated from Prior Quarter report 















For the 12 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)

















All Visa Credit & Debit














Asia Pacific

$1,793

9.9%

11.6%

$1,202

9.9%

11.8%

12,833

$591

9.9%

11.1%

3,018



Canada

249

4.7%

4.3%

230

5.3%

4.9%

2,144

20

-2.2%

-2.5%

43



CEMEA

1,005

14.4%

17.6%

204

26.5%

31.0%

3,699

801

11.7%

14.6%

4,434



LAC

1,065

5.9%

14.3%

394

9.3%

19.5%

9,048

671

4.0%

11.5%

3,856



US         

2,605

4.4%

4.4%

2,166

4.8%

4.8%

42,543

438

2.1%

2.1%

3,470



Visa Inc.

6,717

7.5%

9.6%

4,196

7.6%

9.1%

70,266

2,521

7.3%

10.5%

14,820

















Visa Credit Programs














   US

$1,073

9.5%

9.5%

$1,026

9.8%

9.8%

12,135

$47

4.1%

4.1%

61



   Rest of World

1,821

7.9%

10.6%

1,621

8.8%

11.8%

18,905

200

1.1%

2.2%

766



   Visa Inc.

2,894

8.5%

10.2%

2,647

9.2%

11.0%

31,040

247

1.7%

2.5%

827

















Visa Debit Programs














   US

$1,532

1.0%

1.0%

$1,140

0.8%

0.8%

30,407

$392

1.9%

1.9%

3,408



   Rest of World

2,291

10.9%

15.4%

409

19.1%

24.1%

8,818

1,882

9.3%

13.6%

10,585



   Visa Inc.

3,823

6.7%

9.2%

1,549

5.0%

6.0%

39,226

2,274

7.9%

11.4%

13,993





















For the 12 Months Ended June 30, 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

$1,632

15.0%

12.6%

$1,094

17.5%

14.2%

11,712

$537

10.2%

9.5%

2,534

537

645

Canada

238

6.6%

7.0%

218

6.9%

7.3%

1,964

20

4.2%

4.6%

42

25

33

CEMEA

878

20.4%

24.9%

161

32.1%

38.3%

2,628

717

18.0%

22.3%

4,167

256

258

LAC

1,006

11.5%

17.3%

360

15.5%

21.8%

8,045

645

9.5%

14.9%

3,832

385

415

US         

2,496

5.6%

5.6%

2,066

5.3%

5.3%

41,241

430

7.0%

7.0%

3,525

511

666

Visa Inc.

6,250

10.9%

11.6%

3,900

10.4%

10.2%

65,590

2,350

11.6%

14.0%

14,100

1,714

2,016















Visa Credit Programs














   US

$979

10.4%

10.4%

$934

10.4%

10.4%

10,953

$45

10.3%

10.3%

62

196

265

   Rest of World

1,689

13.8%

12.8%

1,490

15.1%

13.9%

17,251

198

5.1%

5.5%

745

451

511

   Visa Inc.

2,668

12.6%

11.9%

2,425

13.3%

12.5%

28,204

243

6.1%

6.4%

807

647

776















Visa Debit Programs














   US

$1,516

2.7%

2.7%

$1,132

1.5%

1.5%

30,288

$385

6.6%

6.6%

3,463

315

401

   Rest of World

2,065

15.4%

18.9%

343

25.0%

28.8%

7,098

1,722

13.6%

17.1%

9,830

752

839

   Visa Inc.

3,582

9.6%

11.3%

1,475

6.1%

6.6%

37,386

2,107

12.2%

15.0%

13,293

1,066

1,240

 

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. 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



Jun 30, 2013

11%

11%

Mar 31, 2013

10%

10%

Dec 31, 2012

11%

11%

Sep 30, 2012

7%

10%

Jun 30, 2012

10%

14%




12 Months Ended



Jun 30, 2013

9%

11%

Jun 30, 2012

14%

15%

 

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



Jun 30, 2013

14,972

14%

Mar 31, 2013

13,850

6%

Dec 31, 2012

14,159

4%

Sep 30, 2012

13,573

2%

Jun 30, 2012

13,113

1%




12 Months Ended



Jun 30, 2013

56,554

7%

Jun 30, 2012

53,014

7%

 

4. CyberSource Transactions

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

 

Period

Billable

Transactions

(millions)

Growth




3 Months Ended



Jun 30, 2013

1,648

27%

Mar 31, 2013

1,608

25%

Dec 31, 2012

1,581

28%

Sep 30, 2012

1,363

25%

Jun 30, 2012

1,303

25%




12 Months Ended



Jun 30, 2013

6,199

26%

Jun 30, 2012

4,907

27%

 

 

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