News Details

Visa Inc. Posts Strong Fiscal First Quarter 2011 Earnings Results

02/02/2011

SAN FRANCISCO, Feb. 2, 2011 /PRNewswire via COMTEX/ --

  • GAAP quarterly net income of $884 million or $1.23 per diluted class A common share
  • Company effectively repurchases approximately 15.3 million shares at a total cost of $1.1 billion

 

 

Visa Inc. (NYSE: V) today announced financial results for the Company's fiscal first quarter 2011 ended December 31, 2010. GAAP net income for the quarter was $884 million, or $1.23 per diluted class A common share. The weighted average number of diluted class A common shares outstanding was approximately 719 million.

GAAP net operating revenue in the fiscal first quarter of 2011 was $2.2 billion, an increase of 14% over the prior year and driven by strong double-digit growth in service revenues, data processing revenues and international transaction revenues. Currency fluctuations contributed a positive 1% towards quarterly net operating revenues.

"Visa's first quarter was a great start to our fiscal 2011 as evidenced by strong earnings fueled by continued growth in payments volume, cross border volume and processed transactions globally - our core business," said Joseph Saunders, Chairman and Chief Executive Officer of Visa Inc.

"Visa is in a strong position to continue to accelerate the migration to electronic payments, particularly in economies where cash and check remain predominant. We are intensely focused on growing Visa's revenue globally, working alongside our financial institution, merchant, technology and government partners. In parallel, we are aggressively investing to expand Visa payment services through new technology platforms, like mobile, eCommerce and money transfer, to extend the reach and value of our global network."

Fiscal First Quarter 2011 Financial Highlights:

Payments volume growth, on a constant dollar basis, for the three months ended September 30, 2010, on which fiscal first quarter service revenue is recognized, was a positive 14% over the prior year at $829 billion.

Payments volume growth, on a constant dollar basis, for the three months ended December 31, 2010, was a positive 15% over the prior year at $897 billion.

Cross border volume growth, on a constant dollar basis, was a positive 15% for the three months ended December 31, 2010.

Total processed transactions, which represent transactions processed by VisaNet, for the three months ended December 31, 2010, were 13 billion, a positive 15% increase over the prior year.

For the fiscal first quarter 2011, service revenues were $1.0 billion, an increase of 22% 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 10% over the prior year to $844 million. International transaction revenues, which are principally driven by cross border payments volume, grew 14% over the prior year to $630 million. Other revenues, which include the Visa Europe licensing fee, were $161 million, a 15% decrease over the prior year. Client incentives, which are a contra revenue item, were $405 million and represents 15% of gross revenues.

Total operating expenses on a GAAP basis were $872 million for the quarter, a 17% increase over the prior year.

Cash, cash equivalents, restricted cash, and available-for-sale investment securities were $6.5 billion at December 31, 2010.

Visa's GAAP effective tax rate was 36% for quarter ended December 31, 2010.

Notable Events:

During the three months ended December31, 2010, the Company effectively repurchased approximately 15.3million shares at an average price of $72.08 per share, for a total cost of $1.1 billion. Of the $1.1 billion, $800 million of shares were effectively repurchased through the October funding of the litigation escrow account previously established under the Company's retrospective responsibility plan. On an as-converted basis, 11million shares of class A common stock were effectively repurchased at $72.74 per share. The balance of the repurchase, $306 million of class A common stock, was executed in the open market and totaled 4.3million shares at an average price of $70.40 per share. These purchases were made under the previously announced $1.0 billion share repurchase plan, as authorized by the Company's board of directors. At December31, 2010, the share repurchase plan had remaining authorized funds of $694 million.

As previously announced, on January 26, 2011, the Company's wholly-owned subsidiary, Visa International, sold its 10 percent stake in Visa Vale issuer CBSS to Banco do Brasil and Bradesco. CBSS will continue to issue Visa Vale prepaid cards in Brazil and Visa expects no disruption to cardholder service as a result of this transaction. Visa's proceeds from the sale were $103 million. The sale is subject to regulatory approval by Brazil's Conselho Administrativo de Defesa Economica.

On January 27, 2011, the Company held its 2011 annual meeting of stockholders. Among other proposals, stockholders approved the immediate declassification of the Board of Directors, approved implementation of a majority vote standard in uncontested elections of directors (effective at the 2012 annual meeting), approved compensation of the Company's named executive officers as described in the Company's proxy statement (on an advisory basis) and selected an annual advisory vote on executive compensation (on an advisory basis).

In addition, the Company announced that its Board of Directors had approved a class C share release program, in which all remaining 55 million class C shares will become eligible for sale on February 7, 2011.Class C shares sold in the public market upon release will automatically convert to class A common stock. The release of the class C shares will not increase the number of outstanding shares on an as-converted basis of the Company's common stock, and there will be no dilutive effect to the outstanding class A common stock share count on an as-converted basis. Also, 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 March 1, 2011, to all holders of record of the Company's class A, class B and class C common stock as of February 11, 2011.

Financial Outlook:

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

  • Annual net revenue growth: 11% to 15% range;
  • Client incentives as a percent of gross revenues: 16% to 16.5% range;
  • Marketing expenses: Less than $900 million;
  • Annual operating margin: About 60%;
  • GAAP tax rate: 36.5% to 37% range;
  • Annual diluted class A common stock earnings per share growth of greater than 20%;
  • Capital expenditures: Between $250-$275 million; and
  • Annual free cash flow in excess of $3 billion.

 

Fiscal First Quarter 2011 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 digital currency. Underpinning digital currency is one of the world's most advanced processing networks--VisaNet--that is capable of handling more than 20,000 transaction messages 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 "expect," "will," "continue" and similar references to the future. Examples of such forward-looking statements include, but are not limited to, statements we make about the disposition of Visa Vale, gross and net revenue, incentive payments, expenses, operating margin, tax rate, earnings per share, 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 new laws, regulations and marketplace barriers, particularly the Wall Street Reform and Consumer Protection Act, including those affecting:
    • issuers' and retailers' choice among debit payment networks;
    • debit interchange rates;
    • the spread of regulation of debit payments to credit and other product categories;
    • the spread of U.S. regulations to other countries;
    • consumer privacy and data use and security; and
    • designation as a systemically important payment system;
  • developments in current or future disputes and our ability to absorb their impact, including: interchange; currency conversion; and tax;
  • macroeconomic factors such as:
    • global economic, political, health environmental and other conditions;
    • cross-border activity and currency exchange rates; and
    • material changes in our clients' performance compared to our estimates;
  • industry and systemic developments, such as:
    • competitive pressure on client pricing and in the payments industry generally;
    • bank and merchant consolidation and their increased focus on payment card costs;
    • disintermediation from the payments value stream through government actions or bilateral agreements;
    • adverse changes in our relationships and reputation;
    • our clients' failure to fund settlement obligations we have guaranteed;
    • disruption of our transaction processing systems or the inability to process transactions efficiently;
    • rapid technological developments;
    • account data breaches and increased fraudulent and other illegal activity involving our cards; and
    • issues arising at Visa Europe, including failure to maintain interoperability between our 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;
  • failure to integrate successfully CyberSource or other acquisitions;
  • changes in accounting principles or treatment; and

 

the other factors discussed in our most recent Annual Report on Form 10--K and our most recent Quarterly Reports on Form 10--Q filed 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, 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
December 31,




2010


2009




(in millions, except per share data)


Operating Revenues






Service revenues


$ 1,008


$ 827


Data processing revenues


844


765


International transaction revenues


630


552


Other revenues


161


190


Client Incentives


(405)


(374)


Total operating revenues


2,238


1,960








Operating Expenses






Personnel


357


274


Network and processing


80


105


Marketing


197


216


Professional fees


61


51


Depreciation and amortization


67


62


General and administrative


110


78


Litigation provision


-


(43)


Total operating expenses


872


743








Operating income


1,366


1,217








Other Income (Expense)






Interest income (expense)


4


(16)


Investment income, net


10


5


Other


2


2


Total other income (expense)


16


(9)








Income before income taxes


1,382


1,208


Income tax provision


498


445


Net income attributable to Visa Inc.


$ 884


$ 763








Basic earnings per share






Class A common stock


$ 1.23


$ 1.03


Class B common stock


$ 0.63


$ 0.60


Class C common stock


$ 1.23


$ 1.03








Basic weighted average shares outstanding






Class A common stock


494


468


Class B common stock


245


245


Class C common stock


94


129








Diluted earnings per share






Class A common stock


$ 1.23


$ 1.02


Class B common stock


$ 0.63


$ 0.60


Class C common stock


$ 1.23


$ 1.02








Diluted weighted average shares outstanding






Class A common stock


719


745


Class B common stock


245


245


Class C common stock


94


129

VISA INC.

SELECTED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)






December 31,


September 30,


2010


2010


(in millions, except par value data)

Assets




Cash and cash equivalents

$ 3,684


$ 3,867

Restricted cash - litigation escrow

2,666


1,866

Investment securities




Trading

69


60

Available-for-sale

132


124

Settlement receivable

506


402

Accounts receivable

527


476

Customer collateral

883


899

Current portion of client incentives

164


175

Current portion of deferred tax assets

545


623

Prepaid expenses and other current assets

179


242





Total current assets

9,355


8,734





Restricted cash - litigation escrow

-


70

Investment securities, available-for-sale

13


24

Client incentives

114


101

Property, equipment and technology, net

1,380


1,357

Deferred tax assets




Other assets

217


197

Intangible assets, net

11,463


11,478

Goodwill

11,447


11,447





Total assets

$ 33,989


$ 33,408









Liabilities




Accounts payable

$ 95


$ 137

Settlement payable

430


406

Customer collateral

883


899

Accrued compensation and benefits

241


370

Client incentives

468


418

Accrued liabilities

920


625

Current portion of long-term debt

12


12

Current portion of accrued litigation

630


631





Total current liabilities

3,679


3,498





Long-term debt

29


32

Accrued litigation

-


66

Deferred tax liabilities

4,186


4,181

Other liabilities

551


617





Total liabilities

8,445


8,394









Equity




Preferred stock, $0.0001 par value, 25 shares authorized and none issued

$ -


$ -

Class A common stock, $0.0001 par value, 2,001,622 shares authorized, 495 and 493 shares issued and outstanding at December 31, 2010, and September 30, 2010, respectively

-


-

Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at December 31, 2010, and September 30, 2010

-


-

Class C common stock, $0.0001 par value, 1,097 shares authorized, 93 and 97 shares issued and outstanding at December 31, 2010, and September 30, 2010, respectively

-


-

Additional paid-in capital

20,668


20,794

Accumulated income

5,023


4,368

Accumulated other comprehensive loss, net




Investment securities, available-for-sale

2


3

Defined benefit pension and other postretirement plans

(114)


(115)

Derivative instruments classified as cash flow hedges

(44)


(40)

Foreign currency translation gain

6


1

Total accumulated other comprehensive loss, net

(150)


(151)





Total Visa Inc. stockholders' equity

25,541


25,011





Non-controlling interest

3


3

Total equity

25,544


25,014









Total liabilities and equity

$ 33,989


$ 33,408

VISA INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)




Three Months Ended December 31,










2010


2009




(in millions)


Operating Activities












Net income including non-controlling interest


$ 884


$ 763


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






Amortization of client incentives


405


374


Share-based compensation


48


32


Excess tax benefit for share-based compensation


(7)


(5)


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


67


62


Litigation provision and accretion


4


(33)


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


-


(1)


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


(1)


1


Deferred income taxes


82


102


Other


(21)


(12)


Change in operating assets and liabilities:






Trading securities


(9)


(9)


Settlement receivable


(104)


(131)


Accounts receivable


(51)


(92)


Client incentives


(357)


(378)


Other assets


57


137


Accounts payable


(42)


(69)


Settlement payable


24


(5)


Accrued compensation and benefits


(129)


(168)


Accrued and other liabilities


227


158


Accrued litigation


(71)


(755)








Net cash provided by (used in) operating activities


1,006


(29)








Investing Activities












Purchases of property, equipment and technology


(75)


(37)


Distributions from money market investment


-


19


Investment securities, available-for-sale:






Proceeds from sales and maturities


-


41


Purchases of / contributions to other investments


-


(1)


Proceeds / distributions from other investments


2


-


Net cash (used in) provided by investing activities


(73)


22








Financing Activities






Repurchase of class A common stock


(306)


(432)


Dividends paid


(108)


(93)


Funding of litigation escrow account - Retrospective Responsibility Plan


(800)


-


Payment from litigation escrow account - Retrospective Responsibility Plan


70


70


Cash proceeds from exercise of stock options


26


8


Excess tax benefit for share-based compensation


7


5


Principal payments on debt


(3)


(3)


Principal payments on capital lease obligations


(7)


(7)


Net cash used in financing activities


(1,121)


(452)


Effect of exchange rate changes on cash and cash equivalents


5


2


Decrease in cash and cash equivalents


(183)


(457)


Cash and cash equivalents at beginning of year


3,867


4,617


Cash and cash equivalents at end of period


$ 3,684


$ 4,160














Supplemental Disclosure of Cash Flow Information












Income taxes paid, net of refunds


$ 29


$ 25


Amounts included in accounts payable and accrued and other liabilities

related to purchases of property, equipment and technology


$ 17


$ 6


Interest payments on debt


$ 1


$ 1

Fiscal 2010 and 2011 Quarterly Results of Operations







US$ in millions











(unaudited)


























Fiscal 2010 Quarter Ended


Fiscal 2011
Quarter Ended




December 31,
2009


March 31,
2010


June 30,
2010


September 30,
2010


December 31,
2010














Operating Revenues












Service revenues


$ 827


$ 885


$ 873


$ 912


$ 1,008


Data processing revenues (1)


765


728


792


840


844


International transaction revenues


552


545


574


619


630


Other revenues (2)


190


173


183


167


161


Client incentives


(374)


(372)


(393)


(421)


(405)


Total operating revenues


1,960


1,959


2,029


2,117


2,238














Operating Expenses












Personnel


274


310


285


353


357


Network and processing (1)


105


98


103


119


80


Marketing (2)


216


238


277


233


197


Professional fees


51


50


77


108


61


Depreciation and amortization


62


62


63


78


67


General and administrative


78


77


87


117


110


Litigation provision


(43)


2


-


(4)


-


Total operating expenses


743


837


892


1,004


872














Operating income (1) (2)


1,217


1,122


1,137


1,113


1,366














Other Income (Expense)












Interest income (expense)


(16)


(28)


(13)


(15)


4


Investment income, net


5


23


1


20


10


Other


2


(4)


(3)


77


2


Total other income (expense)


(9)


(9)


(15)


82


16














Income before income taxes


1,208


1,113


1,122


1,195


1,382


Income tax provision


445


401


406


422


498


Net income including non-controlling interest


763


712


716


773


884


Loss attributable to non-controlling interest


-


1


-


1


-


Net income attributable to Visa Inc. (1) (2)


$ 763


$ 713


$ 716


$ 774


$ 884

























(1)

As previously announced, beginning in the first quarter of fiscal 2011, the Company changed its presentation for non-Visa transactions pass-through revenues and expenses from a gross reporting to a net reporting basis. Previously, pass-through revenues were recorded in data processing and related expenses were recorded in network and processing. This change in presentation does not impact operating income or net income attributable to Visa Inc. as revenue and expense amounts completely offset. On a quarterly basis, related fiscal 2010 revenues and expenses were $36 million in Q1, $31 million in Q2, $35 million in Q3 and $38 million in Q4. These amounts will not recur in fiscal 2011 as a result of this change in presentation.

(2)

As previously announced, as a result of certain contractual changes relating to our Visa Extras rewards platform, certain fiscal 2010 revenues recorded in other revenues, and expenses recorded in marketing, will not recur in fiscal 2011. These changes do not impact operating income or net income attributable to Visa Inc. as revenue and expense amounts completely offset. On a quarterly basis, related fiscal 2010 revenues and expenses were $31 million in Q1, $24 million in Q2, $27 million in Q3 and $7 million in Q4.

Operational Performance Data

The tables below provide information regarding the available operational results for the 3 months ended December 31, 2010, as well as the prior four quarterly reporting periods and the 12 months ended December 31, 2010 and 2009, for cards carrying the Visa, Visa Electron and Interlink brands. Included is a 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 December 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)













All Visa Credit & Debit












AsiaPacific

$360

13.1%

7.4%

$239

21.6%

15.0%

2,766

$120

-0.8%

-5.1%

581

Canada

58

12.3%

7.8%

53

11.3%

6.8%

470

5

24.4%

19.4%

9

CEMEA

184

25.8%

26.8%

30

33.7%

32.3%

475

154

24.3%

25.8%

955

LAC

233

21.7%

19.3%

82

26.9%

26.7%

1,898

151

19.1%

15.6%

920

US

591

11.5%

11.5%

493

12.4%

12.4%

9,988

98

7.0%

7.0%

849

Visa Inc.

1,426

15.2%

13.2%

897

16.5%

14.5%

15,597

528

13.0%

11.1%

3,314













Visa Credit Programs












US

$226

5.3%

5.3%

$216

7.6%

7.6%

2,533

$10

-26.7%

-26.7%

16

Restof

World

381

20.2%

15.3%

334

19.8%

14.7%

4,089

48

22.9%

18.9%

167

Visa Inc.

607

14.2%

11.4%

549

14.7%

11.8%

6,622

58

9.7%

7.1%

183













Visa Debit Programs












US

$365

15.7%

15.7%

$277

16.5%

16.5%

7,454

$88

13.0%

13.0%

833

Restof

World

453

16.2%

13.8%

71

33.3%

30.0%

1,521

383

13.5%

11.3%

2,298

Visa Inc.

818

16.0%

14.6%

348

19.6%

19.0%

8,975

470

13.4%

11.6%

3,131

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)

Accounts

(millions)

Cards

(millions)















All Visa Credit & Debit














AsiaPacific

$326

16.2%

11.9%

$212

16.2%

12.2%

2,681

$114

16.2%

11.4%

595

467

556

Canada

53

10.4%

7.4%

49

10.2%

7.2%

448

5

12.0%

8.9%

9

24

32

CEMEA

164

22.1%

23.3%

27

26.4%

27.5%

418

137

21.3%

22.4%

860

208

212

LAC

203

22.4%

20.2%

68

24.1%

23.9%

1,634

135

21.6%

18.4%

873

356

385

US

574

12.4%

12.4%

473

13.5%

13.5%

9,756

101

7.8%

7.8%

875

502

666

Visa Inc.

1,321

15.9%

14.5%

829

15.1%

13.9%

14,937

491

17.1%

15.4%

3,212

1,558

1,850















Visa Credit Programs














US

$218

3.6%

3.6%

$207

6.4%

6.4%

2,431

$11

-31.7%

-31.7%

17

209

269

Restof

World

338

14.6%

11.6%

295

14.5%

11.5%

3,835

43

15.3%

12.5%

157

439

501

Visa Inc.

556

10.0%

8.3%

502

11.0%

9.3%

6,266

54

1.4%

-0.4%

174

648

770















Visa Debit Programs














US

$356

18.6%

18.6%

$266

19.6%

19.6%

7,325

$90

15.7%

15.7%

858

293

397

Restof

World

409

22.2%

20.1%

61

34.2%

32.4%

1,346

348

20.3%

18.1%

2,180

616

683

Visa Inc.

765

20.5%

19.4%

327

22.1%

21.8%

8,671

438

19.3%

17.6%

3,038

910

1,081

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














AsiaPacific

$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%

9,512

97

4.8%

4.8%

855

497

675

Visa Inc.

1,268

17.3%

14.1%

802

16.8%

14.1%

14,438

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%

2,347

$10

-39.4%

-39.4%

17

210

274

Restof

World

320

18.7%

11.7%

277

18.6%

11.6%

3,679

42

19.3%

12.8%

155

436

499

Visa Inc.

534

11.5%

7.7%

481

12.9%

9.1%

6,026

53

0.2%

-3.6%

171

646

772















Visa Debit Programs














US

$352

19.1%

19.1%

$266

20.6%

20.6%

7,166

$87

14.8%

14.8%

838

287

402

Restof

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














AsiaPacific

$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%

8,569

91

2.2%

2.2%

755

509

685

Visa Inc.

1,176

21.5%

12.7%

745

20.9%

13.6%

13,209

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%

2,118

$12

-39.6%

-39.6%

16

217

280

Restof

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%

5,577

50

-2.2%

-11.4%

154

648

773















Visa Debit Programs














US

$324

19.0%

19.0%

$245

20.9%

20.9%

6,450

$79

13.6%

13.6%

738

292

405

Restof

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%

7,632

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














AsiaPacific

$318

30.6%

18.4%

$197

22.1%

10.0%

2,541

$121

47.4%

35.5%

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%

8.8%

23

20.9%

14.4%

353

124

6.4%

7.8%

794

192

196

LAC

191

33.0%

13.1%

64

37.5%

16.8%

1,516

127

30.9%

11.4%

873

331

359

US

530

5.0%

5.0%

438

7.3%

7.3%

8,754

92

-4.7%

-4.7%

759

511

691

Visa Inc.

1,238

15.6%

9.8%

770

14.2%

8.8%

13,595

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

-49.7%

-49.7%

19

227

297

Restof

World

317

19.5%

6.6%

278

22.0%

8.5%

3,611

39

3.7%

-5.3%

141

425

488

Visa Inc.

532

7.2%

0.8%

479

11.2%

4.4%

5,983

53

-19.1%

-22.9%

160

653

784















Visa Debit Programs














US

$316

15.0%

15.0%

$238

15.4%

15.4%

6,381

$78

13.5%

13.5%

740

283

394

Restof

World

390

30.2%

20.3%

53

43.1%

24.6%

1,230

337

28.4%

19.7%

2,104

564

630

Visa Inc.

706

22.9%

17.9%

291

19.7%

17.0%

7,611

415

25.3%

18.5%

2,845

847

1,024

For the 12 Months Ended December 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)













All Visa Credit & Debit












AsiaPacific

$1,292

18.8%

10.9%

$844

22.0%

13.4%

10,487

$448

13.2%

6.5%

2,309

Canada

211

16.7%

7.1%

192

17.1%

7.6%

1,739

18

12.0%

1.9%

36

CEMEA

643

26.2%

23.9%

104

31.7%

28.0%

1,644

538

25.2%

23.1%

3,438

LAC

796

25.1%

18.0%

270

28.0%

23.2%

6,487

526

23.7%

15.6%

3,460

US

2,250

11.7%

11.7%

1,863

13.1%

13.1%

37,824

387

5.5%

5.5%

3,334

Visa Inc.

5,191

17.3%

13.6%

3,273

17.2%

14.0%

58,181

1,917

17.3%

12.9%

12,577













Visa Credit Programs












US

$852

2.7%

2.7%

$809

5.9%

5.9%

9,429

$43

-34.9%

-34.9%

67

Restof

World

1,344

20.3%

12.5%

1,172

20.4%

12.6%

15,062

171

19.4%

11.9%

617

Visa Inc.

2,196

12.8%

8.5%

1,982

14.0%

9.8%

24,491

214

2.3%

-2.2%

683













Visa Debit Programs












US

$1,398

18.1%

18.1%

$1,053

19.3%

19.3%

28,395

$344

14.3%

14.3%

3,267

Restof

World

1,597

23.3%

17.5%

238

38.5%

30.9%

5,294

1,359

20.9%

15.4%

8,627

Visa Inc.

2,995

20.8%

17.7%

1,292

22.5%

21.3%

33,690

1,703

19.5%

15.2%

11,894

For the 12 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














AsiaPacific

$1,087

10.0%

12.5%

$692

7.1%

9.0%

9,508

$396

15.5%

19.1%

2,189

442

531

Canada

181

-5.0%

-1.4%

164

-2.8%

0.8%

1,585

16

-23.0%

-18.9%

35

24

31

CEMEA

509

-2.7%

9.8%

79

3.9%

10.3%

1,247

430

-3.8%

9.7%

2,925

192

196

LAC

636

6.0%

13.9%

211

9.1%

16.0%

5,468

425

4.5%

12.9%

3,261

331

359

US

2,014

-1.5%

-1.5%

1,647

0.3%

0.3%

32,951

367

-8.9%

-8.9%

2,997

511

691

Visa Inc.

4,427

1.9%

5.2%

2,793

2.5%

3.8%

50,758

1,634

0.8%

7.5%

11,407

1,500

1,808















Visa Credit Programs














US

$830

-12.9%

-12.9%

$764

-7.2%

-7.2%

9,040

$66

-49.3%

-49.3%

83

227

297

Rest of

World

1,117

2.3%

5.8%

974

4.3%

7.1%

13,472

144

-9.2%

-2.4%

549

425

488

Visa Inc.

1,947

-4.8%

-2.8%

1,738

-1.1%

0.5%

22,512

209

-27.3%

-23.6%

632

653

784















Visa Debit Programs














US

$1,184

8.5%

8.5%

$883

7.9%

7.9%

23,911

$301

10.2%

10.2%

2,914

283

394

Rest of

World

1,296

7.1%

16.3%

172

14.4%

21.4%

4,335

1,124

6.0%

15.5%

7,860

564

630

Visa Inc.

2,479

7.7%

12.5%

1,055

8.9%

10.0%

28,246

1,425

6.9%

14.4%

10,774

847

1,024

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. Effective with 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



Dec 31, 2010

16%

15%

Sep 30, 2010

16%

16%

Jun 30, 2010

20%

17%

Mar 31, 2010

19%

12%

Dec 31, 2009

8%

2%




12 Months Ended



Dec 31, 2010

18%

15%

Dec 31, 2009

(8%)

(4%)

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



Dec 31, 2010

12,580

15%

Sep 30, 2010

12,119

16%

Jun 30, 2010

11,721

14%

Mar 31, 2010

10,648

14%

Dec 31, 2009

10,924

12%




12 Months Ended



Dec 31, 2010

47,067

15%

Dec 31, 2009

41,012

9%

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



Dec 31, 2010

987

40%

Sep 30, 2010

829

36%

Jun 30, 2010

759

31%

Mar 31, 2010

738

34%

Dec 31, 2009

707

29%




12 Months Ended



Dec 31, 2010

3,312

35%

Dec 31, 2009

2,449

28%

SOURCE Visa Inc.