News Details

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

10/27/2010
-- 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%

SAN FRANCISCO, Oct 27, 2010 /PRNewswire via COMTEX/ --

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 classA 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, ir@visa.com

Media Relations: Will Valentine, 415-932-2564, globalmedia@visa.com

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.