News Details

Visa Inc. Posts Strong Fiscal First Quarter 2012 Earnings Results and Authorizes New $500 Million Share Repurchase Program

02/08/2012

SAN FRANCISCO, Feb. 8, 2012 /PRNewswire/ --

  • Quarterly net income of $1.0 billion or $1.49 per share of diluted class A common stock
  • Total as-converted class A common stock was reduced by 16.2 million shares, which was funded from $1.6 billion of the Company's operating cash on hand
  • Authorized a new $500 million class A share repurchase program

Visa Inc. (NYSE: V) today announced financial results for the Company's fiscal first quarter 2012 ended December 31, 2011. Net income for the quarter was $1.0 billion, or $1.49 per share of diluted class A common stock, an increase of 21% over the prior year.   The weighted-average number of diluted class A common stock outstanding was 690 million.  

Net operating revenue in the first quarter of fiscal 2012 was $2.5 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 core businesses drove a strong start to fiscal 2012.  We achieved solid financial and operational performance as we continued to benefit from the secular shift to electronic payments.  Consumers' desire to use our products is evident in the strong growth we see outside the U.S. and the resiliency we are seeing in the U.S. in the wake of debit regulation," said Joe Saunders , chairman and chief executive officer.  "We are in the midst of executing on our strategy to address the new landscape in the United States and we are pleased with the early results of our efforts."

"We remain intensely focused on further growing our international business, partnering with financial institutions, merchants, technology providers and governments," said Saunders.  "At the same time, we are moving forward on our innovation strategy and are working side by side with our financial institution and merchant clients to deliver the products and solutions that best drive our mutual success."

Fiscal First Quarter 2012 Financial Highlights:

Payments volume growth, on a constant dollar basis, for the three months ended September 30, 2011, on which fiscal first quarter service revenue is recognized, was a positive 13% over the prior year at $971 billion.

Payments volume growth, on a constant dollar basis, for the three months ended December 31, 2011, was a positive 11% over the prior year at $994 billion.

Cross-border volume growth, on a constant dollar basis, was a positive 13% for the three months ended December 31, 2011.

Total processed transactions, which represent transactions processed by VisaNet, for the three months ended December 31, 2011, were 13.6 billion, a positive 8% increase over the prior year.

Fiscal first quarter 2012 service revenues were $1.2 billion, an increase of 14% 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 13% over the prior year to $951 million. International transaction revenues, which are driven by cross-border activity, grew 19% over the prior year to $748 million. Other revenues, which include the Visa Europe licensing fee, were $178 million, an 11% increase over the prior year. Client incentives, which are a contra revenue item, were $481 million and represent 16% of gross revenues.

Total operating expenses were $929 million for the quarter, a 7% increase over the prior year.  

Cash, cash equivalents, restricted cash, and available-for-sale investment securities were $7.9 billion at December 31, 2011.

Visa's effective tax rate was 36% for the quarter ended December 31, 2011.

Notable Events:

Total as-converted class A common stock was reduced by 16.2 million shares during the three months ended December 31, 2011, which was funded from $1.6 billion of our operating cash on hand. Of the $1.6 billion, $75 million was used to repurchase class A common stock in the open market. In addition, we deposited $1.57 billion from our operating cash into the litigation escrow account previously established under the retrospective responsibility plan. This deposit has the same economic effect on earnings per share as repurchasing the Company's class A common stock as it reduces the as-converted class B common stock share count. The deposit reduced by an equivalent amount funds previously allocated to the amended July 2011 share repurchase program, which had no remaining authorized funds as of December 31, 2011.

Today, the Company announced that its Board of Directors has authorized a new $500 million class A share repurchase program. The authorization will be in place through February 1, 2013, and is subject to further change at the discretion of the Board.

On January 31, 2012, the Company held its 2012 annual meeting of stockholders. Stockholders approved all the proposals enumerated in the Company's proxy statement.

The Board of Directors declared a quarterly dividend in the aggregate amount of $0.22 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 6, 2012, to all holders of record of the Company's class A, class B and class C common stock as of February 17, 2012.

Financial Outlook:

Visa Inc. updates its financial outlook for the following metrics through 2012:

  • Annual net revenue growth in the low double digits; and
  • Adjusted annual diluted class A common stock earnings per share growth in the high teens.

Visa Inc. affirms its financial outlook for the following metrics for 2012:

  • Client incentives as a percent of gross revenues: 17% to 18% range;
  • Marketing expenses: Under $1 billion;  
  • Annual operating margin of about 60%;
  • Adjusted tax rate: 33% to 34% range*;
  • Capital expenditures $350 million to $400 million range; and
  • Annual free cash flow greater than $4 billion.

* Financial Outlook excludes the impact of possible non-cash revaluation of deferred tax liabilities, which could decrease the GAAP tax rate to 30 to 31%.  These deferred tax liabilities are primarily associated with indefinite-lived intangible assets recorded as part of Visa's October 2007 reorganization.   

Fiscal First Quarter 2012 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 "continue," "could," "may," "potential," and similar references to the future. Examples of such forward-looking statements include, but are not limited to, statements we make about our strategy and its execution and about our revenue, earnings per share, incentive payments, expenses, operating margin, tax rate, capital expenditures and 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, including:
    • rules capping debit interchange reimbursement fees under the U.S. Wall Street Reform and Consumer Protection Act, or the Reform Act;
    • rules under the Reform Act expanding issuers' and retailers' choice among debit payment networks;
    • increased regulation outside the United States and in other product categories; and
    • rules about consumer privacy and data use and security;
  • developments in current or future litigation or government enforcement, including interchange, antitrust and tax disputes;
  • economic factors, such as:
    • an increase or spread of the current European crisis involving sovereign debt and the euro;
    • other global economic, political and health conditions;
    • cross-border activity and currency exchange rates; and
    • material changes in our clients' performance compared to our estimates;
  • 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 breaches 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 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 recent acquisitions successfully or to effectively launch new products and businesses;
  • changes in accounting principles or treatments; and

the other factors discussed in our most recent Annual Report on Form 10−K. 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 Anson Villaluz , 415-932-2213, ir@visa.com
Media Relations: Will Valentine , 415-932-2564, globalmedia@visa.com

 VISA INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)






Three Months Ended
December 31,


2011


2010


(in millions, except per share data)

Operating Revenues








Service revenues

$ 1,151


$ 1,008

Data processing revenues

951


844

International transaction revenues

748


630

Other revenues

178


161

Client incentives

(481)


(405)

Total operating revenues

2,547


2,238





Operating Expenses




Personnel

389


357

Network and processing

98


80

Marketing

190


197

Professional fees

70


61

Depreciation and amortization

80


67

General and administrative

102


110

Total operating expenses

929


872





Operating income

1,618


1,366





Other Income (Expense)




Interest expense

(10)


4

Investment income, net

10


10

Other

(1)


2

Total other (expense) income

(1)


16





Income before income taxes

1,617


1,382

Income tax provision

590


498

Net income including non-controlling interest

1,027


884

Loss attributable to non-controlling interest

2


-

Net income attributable to Visa Inc.

$ 1,029


$    884





Basic earnings per share




  Class A common stock

$   1.50


$   1.23

  Class B common stock

$   0.73


$   0.63

  Class C common stock

$   1.50


$   1.23





Basic weighted-average shares outstanding




  Class A common stock

520


494

  Class B common stock

245


245

  Class C common stock

46


94





Diluted earnings per share




  Class A common stock

$   1.49


$   1.23

  Class B common stock

$   0.73


$   0.63

  Class C common stock

$   1.49


$   1.23





Diluted weighted-average shares outstanding




  Class A common stock

690


719

  Class B common stock

245


245

  Class C common stock

46


94



 VISA INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)



December 31,


September 30,


2011


2011


(in millions, except par value data)

Assets




Cash and cash equivalents

$            1,942


$              2,127

Restricted cash—litigation escrow

4,352


2,857

Investment securities




   Trading

65


57

   Available-for-sale

734


1,214

Settlement receivable

509


412

Accounts receivable

629


560

Customer collateral

908


931

Current portion of client incentives

206


278

Deferred tax assets

461


489

Prepaid expenses and other current assets

172


265





Total current assets

9,978


9,190





Investment securities, available-for-sale

899


711

Client incentives

106


85

Property, equipment and technology, net

1,542


1,541

Other assets

121


129

Intangible assets, net

11,454


11,436

Goodwill

11,668


11,668





Total assets

$          35,768


$            34,760









Liabilities




Accounts payable

$                 87


$                 169

Settlement payable

426


449

Customer collateral

908


931

Accrued compensation and benefits

259


387

Client incentives

615


528

Accrued liabilities

886


562

Accrued litigation

356


425





Total current liabilities

3,537


3,451





Deferred tax liabilities

4,212


4,205

Other liabilities

718


667





Total liabilities

8,467


8,323









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, 524 and 520 shares issued and outstanding at December 31, 2011, and September 30, 2011, respectively

-


-

Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at December 31, 2011 and September 30, 2011

-


-

Class C common stock, $0.0001 par value, 1,097 shares authorized, 44 and 47 shares issued and outstanding at December 31, 2011, and September 30, 2011, respectively

-


-

Additional paid-in capital

19,929


19,907

Accumulated income

7,544


6,706

Accumulated other comprehensive income (loss), net




   Investment securities, available-for-sale

1


-

   Defined benefit pension and other postretirement plans

(183)


(186)

   Derivative instruments classified as cash flow hedges

18


18

   Foreign currency translation adjustments

(8)


(8)

Total accumulated other comprehensive loss, net

(172)


(176)

Total equity

27,301


26,437









Total liabilities and equity

$          35,768


$            34,760



 VISA INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)






Three Months Ended December 31,


2011


2010


(in millions)

Operating Activities








Net income including non-controlling interest

$ 1,027


$    884

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




      Amortization of client incentives

481


405

      Share-based compensation

38


48

      Excess tax benefit for share-based compensation

(18)


(7)

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

80


67

      Deferred income taxes

34


82

      Other

(37)


(18)

Change in operating assets and liabilities:




      Trading securities

(8)


(9)

      Settlement receivable

(97)


(104)

      Accounts receivable

(69)


(51)

      Client incentives

(343)


(357)

      Other assets

122


57

      Accounts payable

(82)


(42)

      Settlement payable

(23)


24

      Accrued compensation and benefits

(128)


(129)

      Accrued and other liabilities

379


227

      Accrued litigation

(70)


(71)





Net cash provided by operating activities

1,286


1,006





Investing Activities








Purchases of property, equipment and technology

(66)


(75)

Proceeds from disposal of property, equipment and technology

2


-

Purchases of intangible assets

(35)


-

Investment securities, available-for-sale:




     Purchases

(933)


-

     Proceeds from sales and maturities

1,224


-

Purchases of / contributions to other investments

(2)


-

Proceeds / distributions from other investments

4


2





Net cash provided by (used in) investing activities

194


(73)





Financing Activities








Repurchase of class A common stock

(75)


(306)

Dividends paid

(152)


(108)

Deposits into litigation escrow account—retrospective responsibility plan

(1,565)


(800)

Payments from litigation escrow account—retrospective responsibility plan

70


70

Cash proceeds from exercise of stock options

44


26

Excess tax benefit for share-based compensation

18


7

Principal payments on debt

-


(3)

Principal payments on capital lease obligations

(5)


(7)





Net cash used in financing activities

(1,665)


(1,121)





Effect of exchange rate changes on cash and cash equivalents

-


5





Decrease in cash and cash equivalents

(185)


(183)

Cash and cash equivalents at beginning of year

2,127


3,867





Cash and cash equivalents at end of period

$ 1,942


$ 3,684





Supplemental Disclosure of Cash Flow Information








Income taxes paid, net of refunds

$      57


$      29

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

$      42


$      17

Interest payment on debt

$         -


$        1



VISA INC.

FISCAL 2011 AND 2012 QUARTERLY RESULTS OF OPERATIONS

(UNAUDITED)












Fiscal 2011 Quarter Ended


Fiscal 2012
Quarter Ended


December 31,
2010


March 31,
2011


June 30,
2011


September 30,
2011


December 31,
2011


(in millions)





Operating Revenues










Service revenues

$                 1,008


$         1,093


$       1,055


$              1,105


$                    1,151

Data processing revenues

844


823


886


925


951

International transaction revenues

630


624


662


758


748

Other revenues

161


156


167


171


178

Client incentives

(405)


(451)


(448)


(576)


(481)

Total operating revenues

2,238


2,245


2,322


2,383


2,547











Operating Expenses










Personnel

357


351


363


388


389

Network and processing

80


80


91


106


98

Marketing

197


183


251


239


190

Professional fees

61


77


84


115


70

Depreciation and amortization

67


70


74


77


80

General and administrative

110


95


114


95


102

Litigation provision

-


6


-


1


-

Total operating expenses

872


862


977


1,021


929











Operating income

1,366


1,383


1,345


1,362


1,618











Other Income (Expense)










Interest income (expense)

4


(12)


(11)


(13)


(10)

Investment income, net

10


9


88


1


10

Other

2


(3)


121


4


(1)

Total other income (expense)

16


(6)


198


(8)


(1)











Income before income taxes

1,382


1,377


1,543


1,354


1,617

Income tax provision

498


497


539


476


590

Net income including non-controlling interest

884


880


1,004


878


1,027

Loss attributable to non-controlling interest

-


1


1


2


2

Net income attributable to Visa Inc.

$                    884


$            881


$       1,005


$                 880


$                    1,029



Operational Performance Data

The tables below provide information regarding the available operational results for the 3 months ended December 31, 2011, as well as the prior four quarterly reporting periods and the 12 months ended December 31, 2011 and 2010, for cards carrying the Visa, Visa Electron and Interlink brands.  Also included is a table with information on the number of billable transactions processed on Visa Inc.'s CyberSource network.  

1. Branded Volume and Transactions

The tables present total volume, payments volume, and cash volume, and the number of payments transactions, cash transactions, accounts and cards for cards carrying the Visa, Visa Electron and Interlink brands. Card counts include PLUS proprietary cards. Nominal and constant dollar growth rates over prior years are provided for volume-based data.



For the 3 Months Ended December 31, 2011


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

$409

13.0%

11.3%

$275

14.8%

11.7%

2,949

$133

9.7%

10.4%

621

Canada

61

6.1%

7.5%

57

6.7%

8.1%

503

5

-0.1%

1.2%

10

CEMEA

220

19.4%

24.3%

39

30.3%

37.9%

631

180

17.2%

21.7%

1,060

LAC

264

13.4%

19.5%

94

15.9%

21.9%

2,084

169

12.1%

18.2%

998

US         

635

7.3%

7.3%

529

7.3%

7.3%

10,605

106

7.7%

7.7%

877

Visa Inc.

1,588

11.3%

12.4%

994

10.8%

10.8%

16,773

594

12.1%

15.2%

3,566













Visa Credit Programs












US

$248

9.7%

9.7%

$237

9.6%

9.6%

2,807

$11

10.4%

10.4%

16

Rest of World

431

13.1%

12.5%

380

13.8%

13.0%

4,378

51

8.0%

9.4%

189

Visa Inc.

680

11.8%

11.5%

617

12.2%

11.7%

7,185

63

8.4%

9.6%

205













Visa Debit Programs












US

$387

5.9%

5.9%

$292

5.4%

5.4%

7,798

$95

7.4%

7.4%

861

Rest of World

522

14.9%

19.1%

86

21.1%

25.2%

1,789

436

13.7%

18.0%

2,500

Visa Inc.

909

10.9%

13.1%

378

8.6%

9.3%

9,588

531

12.5%

15.9%

3,361


















For the 3 Months Ended September 30, 2011


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

$402

23.2%

13.9%

$272

28.3%

17.5%

2,893

$130

13.6%

7.1%

626

509

601

Canada

61

14.6%

7.6%

56

14.7%

7.7%

489

5

13.5%

6.6%

10

26

35

CEMEA

212

29.7%

27.2%

37

38.8%

36.1%

569

175

28.0%

25.5%

998

241

239

LAC

249

22.4%

16.7%

89

30.0%

23.8%

1,905

160

18.5%

13.1%

929

372

403

US         

626

9.0%

9.0%

517

9.1%

9.1%

10,483

109

9.0%

9.0%

906

507

653

Visa Inc.

1,550

17.4%

13.7%

971

17.0%

13.4%

16,339

579

18.0%

14.2%

3,469

1,654

1,930















Visa Credit Programs














US

$241

11.0%

11.0%

$229

10.3%

10.3%

2,663

$13

26.5%

26.5%

18

201

261

Rest of World

421

24.4%

15.6%

369

25.0%

15.9%

4,219

51

20.0%

13.4%

182

453

513

Visa Inc.

662

19.2%

13.9%

598

19.0%

13.7%

6,882

64

21.2%

15.8%

200

653

774















Visa Debit Programs














US

$385

7.8%

7.8%

$288

8.1%

8.1%

7,821

$97

7.0%

7.0%

888

306

392

Rest of World

504

23.3%

18.2%

85

39.8%

32.4%

1,637

419

20.4%

15.7%

2,381

695

765

Visa Inc.

888

16.1%

13.5%

373

14.0%

12.8%

9,457

515

17.6%

14.0%

3,269

1,001

1,157




















For the 3 Months Ended June 30, 2011


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

$379

22.7%

13.2%

$248

25.5%

14.8%

2,758

$131

17.6%

10.4%

599

495

588

Canada

60

13.6%

7.7%

55

14.0%

8.0%

473

5

9.9%

4.2%

10

25

34

CEMEA

204

32.3%

27.0%

35

41.6%

35.5%

532

170

30.5%

25.4%

992

230

232

LAC

244

31.8%

22.9%

85

37.1%

27.7%

1,817

159

29.1%

20.5%

912

365

398

US         

623

9.9%

9.9%

518

10.3%

10.3%

10,410

106

8.1%

8.1%

901

499

652

Visa Inc.

1,511

19.1%

14.7%

941

17.3%

13.5%

15,990

570

22.2%

16.8%

3,414

1,614

1,904















Visa Credit Programs














US

$234

9.4%

9.4%

$224

9.8%

9.8%

2,569

$11

2.1%

2.1%

17

199

258

Rest of World

400

25.0%

15.7%

348

25.3%

15.8%

4,042

52

22.6%

15.3%

179

448

509

Visa Inc.

634

18.8%

13.3%

572

18.8%

13.4%

6,610

62

18.5%

12.8%

196

647

766















Visa Debit Programs














US

$389

10.2%

10.2%

$294

10.7%

10.7%

7,841

$95

8.9%

8.9%

885

300

394

Rest of World

488

27.8%

20.5%

75

36.6%

27.3%

1,538

413

26.3%

19.4%

2,334

667

744

Visa Inc.

877

19.4%

15.7%

369

15.1%

13.7%

9,379

508

22.6%

17.3%

3,219

967

1,138


















For the 3 Months Ended March 31, 2011


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

$352

18.7%

12.4%

$230

18.5%

11.8%

2,629

$121

19.0%

13.5%

578

476

573

Canada

52

12.3%

7.3%

48

11.4%

6.5%

420

5

21.2%

15.8%

9

25

33

CEMEA

177

26.5%

24.9%

30

33.8%

31.2%

483

147

25.1%

23.7%

906

226

225

LAC

222

26.8%

20.5%

77

32.5%

25.9%

1,740

145

23.9%

17.8%

860

360

389

US         

576

11.1%

11.1%

477

11.6%

11.6%

9,579

99

8.9%

8.9%

839

504

649

Visa Inc.

1,379

17.2%

14.3%

862

15.7%

13.1%

14,851

517

19.9%

16.5%

3,193

1,592

1,869















Visa Credit Programs














US

$209

7.6%

7.6%

$199

9.1%

9.1%

2,282

$10

-16.4%

-16.4%

15

197

256

Rest of World

364

19.2%

13.2%

318

19.1%

12.9%

3,825

46

19.9%

15.5%

163

444

504

Visa Inc.

573

14.7%

11.1%

517

15.1%

11.4%

6,107

56

11.5%

8.3%

177

641

760















Visa Debit Programs














US

$367

13.2%

13.2%

$278

13.4%

13.4%

7,297

$89

12.6%

12.6%

824

307

393

Rest of World

439

24.4%

19.9%

68

31.8%

26.1%

1,448

372

23.2%

18.9%

2,192

644

715

Visa Inc.

806

19.0%

16.8%

345

16.6%

15.7%

8,744

461

21.0%

17.6%

3,016

950

1,109























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)

Accounts

(millions)

Cards

(millions)















All Visa Credit & Debit














Asia Pacific

$361

13.6%

8.2%

$240

21.9%

15.4%

2,767

$121

0.2%

-4.1%

591

473

571

Canada

58

12.1%

7.6%

53

11.3%

6.8%

467

5

22.8%

17.9%

9

25

33

CEMEA

184

25.6%

26.3%

30

32.8%

31.8%

478

154

24.3%

25.3%

955

219

222

LAC

233

21.4%

19.0%

81

26.0%

25.8%

1,822

151

19.1%

15.7%

914

358

387

US         

592

11.5%

11.5%

493

12.5%

12.5%

9,997

99

7.0%

7.0%

852

529

686

Visa Inc.

1,427

15.3%

13.2%

898

16.5%

14.5%

15,532

530

13.2%

11.1%

3,321

1,604

1,898















Visa Credit Programs














US

$226

5.4%

5.4%

$216

7.6%

7.6%

2,534

$10

-26.7%

-26.7%

16

205

267

Rest of World

381

20.1%

15.1%

334

19.8%

14.7%

4,008

48

22.6%

17.9%

167

442

503

Visa Inc.

608

14.2%

11.3%

550

14.7%

11.8%

6,542

58

9.5%

6.3%

183

647

770















Visa Debit Programs














US

$365

15.7%

15.7%

$277

16.6%

16.6%

7,464

$88

13.1%

13.1%

835

324

419

Rest of World

454

16.5%

13.9%

71

33.3%

30.0%

1,526

384

13.8%

11.4%

2,302

633

709

Visa Inc.

820

16.1%

14.7%

348

19.6%

19.0%

8,989

472

13.7%

11.7%

3,138

957

1,128




















For the 12 Months Ended December 31, 2011


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

$1,542

19.2%

12.7%

$1,027

21.5%

14.0%

11,229

$515

14.8%

10.3%

2,424

Canada

235

11.5%

7.5%

215

11.6%

7.6%

1,885

20

10.6%

6.6%

40

CEMEA

814

26.7%

25.9%

141

35.9%

35.3%

2,215

672

24.9%

24.0%

3,957

LAC

979

22.9%

19.8%

346

27.9%

24.7%

7,546

633

20.3%

17.3%

3,699

US         

2,460

9.3%

9.3%

2,040

9.5%

9.5%

41,077

420

8.4%

8.4%

3,523

Visa Inc.

6,029

16.1%

13.7%

3,768

15.1%

12.6%

63,953

2,260

17.8%

15.6%

13,642













Visa Credit Programs












US

$933

9.5%

9.5%

$888

9.7%

9.7%

10,320

$45

4.8%

4.8%

65

Rest of World

1,616

20.2%

14.3%

1,415

20.6%

14.4%

16,463

201

17.3%

13.3%

713

Visa Inc.

2,548

16.0%

12.5%

2,303

16.2%

12.6%

26,784

245

14.8%

11.7%

778













Visa Debit Programs












US

$1,527

9.2%

9.2%

$1,152

9.3%

9.3%

30,757

$375

8.9%

8.9%

3,458

Rest of World

1,953

22.2%

19.4%

314

31.8%

27.8%

6,412

1,639

20.5%

17.9%

9,407

Visa Inc.

3,480

16.1%

14.7%

1,465

13.4%

12.8%

37,169

2,015

18.2%

16.1%

12,865


















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)

Accounts

(millions)

Cards

(millions)















All Visa Credit & Debit














Asia Pacific

$1,293

19.0%

11.1%

$845

22.1%

13.4%

10,488

$449

13.5%

6.9%

2,319

473

571

Canada

211

16.6%

7.1%

192

17.1%

7.6%

1,739

18

11.6%

1.3%

36

25

33

CEMEA

642

26.1%

23.7%

104

31.5%

27.7%

1,647

538

25.2%

23.0%

3,438

219

222

LAC

796

25.1%

17.9%

270

27.9%

22.9%

6,411

526

23.6%

15.5%

3,454

358

387

US         

2,251

11.7%

11.7%

1,863

13.1%

13.1%

37,845

387

5.3%

5.3%

3,340

529

686

Visa Inc.

5,193

17.3%

13.6%

3,275

17.2%

14.0%

58,129

1,919

17.3%

12.9%

12,588

1,604

1,898















Visa Credit Programs














US

$852

2.6%

2.6%

$809

5.9%

5.9%

9,431

$43

-35.8%

-35.8%

66

205

267

Rest of World

1,344

20.3%

12.3%

1,173

20.4%

12.5%

14,981

171

19.3%

11.2%

616

442

503

Visa Inc.

2,196

12.7%

8.5%

1,983

14.0%

9.8%

24,412

214

1.9%

-2.6%

683

647

770















Visa Debit Programs














US

$1,399

18.1%

18.1%

$1,054

19.4%

19.4%

28,415

$345

14.3%

14.3%

3,274

324

419

Rest of World

1,598

23.3%

17.5%

238

38.5%

30.7%

5,302

1,360

21.0%

15.5%

8,631

633

709

Visa Inc.

2,997

20.8%

17.8%

1,292

22.5%

21.4%

33,717

1,705

19.6%

15.3%

11,905

957

1,128


















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, 2011

12%

13%

Sep 30, 2011

19%

15%

Jun 30, 2011

20%

14%

Mar 31, 2011

16%

13%

Dec 31, 2010

16%

15%




12 Months Ended



Dec 31, 2011

17%

14%

Dec 31, 2010

18%

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



Dec 31, 2011

13,600

8%

Sep 30, 2011

13,263

9%

Jun 30, 2011

13,038

11%

Mar 31, 2011

12,040

13%

Dec 31, 2010

12,580

15%




12 Months Ended



Dec 31, 2011

51,941

10%

Dec 31, 2010

47,067

15%




4. CyberSource Transactions

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


Period

Billable

Transactions

(millions)

Growth




3 Months Ended



Dec 31, 2011

1,235

25%

Sep 30, 2011

1,088

31%

Jun 30, 2011

1,045

38%

Mar 31, 2011

1,018

38%

Dec 31, 2010

987

40%




12 Months Ended



Dec 31, 2011

4,385

32%

Dec 31, 2010

3,312

35%




SOURCE Visa Inc.