News Details

FOSTER CITY, Calif.--(BUSINESS WIRE)-- Visa Inc. (NYSE: V) today announced financial results for the Company’s fiscal third quarter 2014. Net income for the quarter was $1.4 billion, an increase of 11% over the prior year, or $2.17 per share, an increase of 15% over the prior year. All references to earnings per share assume fully-diluted class A share count unless otherwise noted.

Net operating revenue in the fiscal third quarter of 2014 was $3.2 billion, an increase of 5% nominally or 7% on a constant dollar basis over the prior year, driven by solid growth in service revenue and data processing revenues. The strengthening of the U.S. dollar versus the prior year quarter negatively impacted net operating revenue growth by 2 percentage points.

“We are pleased to report 15% earnings per share growth in the face of a continued, subdued global economy,” said Charlie Scharf, Chief Executive Officer of Visa Inc. “As expected, revenue growth was affected by a strong U.S. dollar and tepid growth from cross-border transactions. More importantly, global payments volume and processed transactions remained healthy and strong. While some of the headwinds will likely continue in the short-term, we are confident our investments in products such as Visa Checkout, new technologies like tokenization, and new relationships with financial institutions and merchants will continue to drive double-digit revenue growth over the long-term.”

Fiscal Third Quarter 2014 Financial Highlights:

Payments volume growth, on a constant dollar basis, for the three months ended March 31, 2014, on which fiscal third quarter service revenue is recognized, was 12% over the prior year at $1.1 trillion.

Payments volume growth, on a constant dollar basis, for the three months ended June 30, 2014, was 11% over the prior year at $1.2 trillion.

Cross-border volume growth, on a constant dollar basis, was 7% for the three months ended June 30, 2014.

Total processed transactions, which represent transactions processed by VisaNet, for the three months ended June 30, 2014, were 16.7 billion, an 11% increase over the prior year.

Fiscal third quarter 2014 service revenues were $1.4 billion, an increase of 9% over the prior year, and are recognized based on payments volume in the prior quarter. All other revenue categories are recognized based on current quarter activity. Data processing revenues rose 11% over the prior year to $1.3 billion. International transaction revenues grew 1% over the prior year to $860 million. Other revenues, which include the Visa Europe licensing fee, were $195 million, an increase of 9% over the prior year. Client incentives, which are a contra revenue item, were $638 million and represent 16.8% of gross revenues.

Total operating expenses were $1.1 billion for the quarter, a 3% decrease over the prior year, primarily related to a reduction in personnel, marketing expense and professional fees.

The effective tax rate was 33.0% for the quarter ended June 30, 2014.

Cash, cash equivalents, and available-for-sale investment securities were $6.8 billion at June 30, 2014.

The weighted-average number of diluted shares of class A common stock outstanding was 628 million for the quarter ended June 30, 2014.

Notable Events:

During the three months ended June 30, 2014, the Company repurchased 5.6 million shares of class A common stock, at an average price of $207.13 per share, using $1.2 billion of cash on hand. At June 30, 2014, the Company had $1.9 billion of remaining funds, authorized by the board of directors, available for share repurchase under the current program.

On July 23, 2014, the board of directors declared a quarterly cash dividend of $0.40 per share of class A common stock (determined in the case of class B and class C common stock on an as-converted basis) payable on September 3, 2014, to all holders of record of the Company’s class A, class B and class C common stock as of August 15, 2014.

Financial Outlook:

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

• Annual operating margin: Low to mid 60s; and
• Annual free cash flow: About $5 billion.

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

• Annual net revenue growth: Constant revenue growth in the 9-10% range, with an expectation of two percentage points of negative foreign currency impact;
• Client incentives as a percent of gross revenues: Around 17%;
• Tax rate: 30-31% range; and
• Annual diluted class A common stock earnings per share growth: 17.5-18.5% range.

Fiscal Third Quarter 2014 Earnings Results Conference Call Details:

Visa’s executive management team will host a live audio webcast beginning at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) today to discuss the financial results and business highlights. All interested parties are invited to listen to the live webcast at http://investor.visa.com. A replay of the webcast will be available on the Visa Investor Relations website for 30 days. Investor information, including supplemental financial information, is available on Visa Inc.’s Investor Relations website at http://investor.visa.com.

About Visa

Visa is a global payments technology company that connects consumers, businesses, financial institutions, and governments in more than 200 countries and territories to fast, secure and reliable electronic payments. We operate one of the world’s most advanced processing networks — VisaNet — that is capable of handling more than 47,000 transaction messages a second, with fraud protection for consumers and assured payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa’s innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, ahead of time with prepaid or later with credit products. For more information, visit usa.visa.com/about-visa, visacorporate.tumblr.com and @VisaNews.

Forward-Looking Statements:

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are identified by words such as "believes," "estimates," "expects," "intends," "may," "projects," "could," "should," "will," "will continue" and other similar expressions. Examples of forward-looking statements include, but are not limited to, statements we make about our revenue, client incentives, operating margin, earnings per share, free cash flow, tax rate and the growth of those items.

By their nature, forward-looking statements: (i) speak only as of the date they are made; (ii) are not statements of historical fact or guarantees of future performance; and (iii) are subject to risks, uncertainties, assumptions or changes in circumstances that are difficult to predict or quantify. Therefore, actual results could differ materially and adversely from our forward-looking statements due to a variety of factors, including the following:

• the impact of laws, regulations and marketplace barriers, including:
  • rules capping debit interchange reimbursement rates and expanding financial institutions’ and merchants’ choices among debit payment networks promulgated under the Dodd-Frank Wall Street Reform and Consumer Protection Act;
  • increased regulation in jurisdictions outside of the United States and in other product categories;
  • increased government support of national payment networks outside the United States; and
  • increased regulation on consumer privacy, data use and security;
• developments in litigation and government enforcement, including those affecting interchange reimbursement fees, antitrust and tax;
• new lawsuits, investigations or proceedings, or changes to our potential exposure in connection with pending lawsuits, investigations or proceedings;
• economic factors, such as:
  • economic fragility in the Eurozone and in the United States;
  • general economic, political and social conditions in mature and emerging markets globally;
  • material changes in cross-border activity, foreign exchange controls and fluctuations in currency exchange rates; and
  • material changes in our financial institution clients' performance compared to our estimates;
• industry developments, such as competitive pressure, rapid technological developments, and disintermediation from our payments network;
• system developments, such as:
  • disruption of our transaction processing systems or the inability to process transactions efficiently;
  • account data breaches or increased fraudulent or other illegal activities involving Visa-branded cards or payment products; and
  • failure to maintain systems interoperability with Visa Europe;
• costs arising if Visa Europe were to exercise its right to require us to acquire all of its outstanding stock;
• the loss of organizational effectiveness or key employees;
• the failure to integrate acquisitions successfully or to effectively develop new products and businesses;
• natural disasters, terrorist attacks, military or political conflicts, and public health emergencies; and

various other factors, including those contained in our Annual Report on Form 10-K for the year ended September 30, 2013 and our other filings with the U.S. Securities and Exchange Commission. You should not place undue reliance on such statements. Except as required by law, we do not intend to update or revise any forward–looking statements as a result of new information, future developments or otherwise.

VISA INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
	June 30, 2014					September 30, 2013
	(in millions, except par value data)
Assets
Cash and cash equivalents	$	2,058				$	2,186
Restricted cash—litigation escrow		1,105					49
Investment securities:
Trading		86					75
Available-for-sale		1,920					1,994
Income tax receivable		26					142
Settlement receivable		775					799
Accounts receivable		824					761
Customer collateral		936					866
Current portion of client incentives		221					282
Deferred tax assets		830					481
Prepaid expenses and other current assets		244					187
Total current assets		9,025					7,822
Investment securities, available-for-sale		2,798					2,760
Client incentives		84					89
Property, equipment and technology, net		1,772					1,732
Other assets		828					521
Intangible assets, net		11,427					11,351
Goodwill		11,741					11,681
Total assets	$	37,675				$	35,956
Liabilities
Accounts payable	$	101				$	184
Settlement payable		1,307					1,225
Customer collateral		936					866
Accrued compensation and benefits		398					523
Client incentives		902					919
Accrued liabilities		610					613
Accrued litigation		1,060					5
Total current liabilities		5,314					4,335
Deferred tax liabilities		4,170					4,149
Other liabilities		905					602
Total liabilities		10,389					9,086
Equity
Preferred stock, $0.0001 par value, 25 shares authorized and none issued		—					—
Class A common stock, $0.0001 par value, 2,001,622 shares authorized, 496 and 508 shares issued and outstanding at June 30, 2014 and September 30, 2013, respectively		—					—
Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at June 30, 2014 and September 30, 2013		—					—
Class C common stock, $0.0001 par value, 1,097 shares authorized, 25 and 27 shares issued and outstanding at June 30, 2014 and September 30, 2013, respectively		—					—
Additional paid-in capital		18,393					18,875
Accumulated income		8,909					7,974
Accumulated other comprehensive income (loss), net:
Investment securities, available-for-sale		58					59
Defined benefit pension and other postretirement plans		(68	)				(60	)
Derivative instruments classified as cash flow hedges		(5	)				23
Foreign currency translation adjustments		(1	)				(1	)
Total accumulated other comprehensive (loss) income, net		(16	)				21
Total equity		27,286					26,870
Total liabilities and equity	$	37,675				$	35,956

VISA INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
				Three Months Ended June 30,														Nine Months Ended June 30,
				2014							2013							2014							2013
				(in millions, except per share data)
Operating Revenues
Service revenues				$	1,417						$	1,298						$	4,298						$	3,967
Data processing revenues					1,321							1,191							3,819							3,456
International transaction revenues					860							854							2,622							2,490
Other revenues					195							179							558							533
Client incentives					(638	)						(521	)						(1,824	)						(1,641	)
Total operating revenues					3,155							3,001							9,473							8,805
Operating Expenses
Personnel					463							493							1,379							1,433
Marketing					228							252							659							640
Network and processing					127							117							379							346
Professional fees					82							103							234							282
Depreciation and amortization					109							101							323							291
General and administrative					126							108							354							322
Litigation provision					—							(1	)						—							3
Total operating expenses					1,135							1,173							3,328							3,317
Operating income					2,020							1,828							6,145							5,488
Non-operating income					10							5							29							3
Income before income taxes					2,030							1,833							6,174							5,491
Income tax provision					670							608							1,809							1,703
Net income				$	1,360						$	1,225						$	4,365						$	3,788
Basic earnings per share
Class A common stock				$	2.17						$	1.89						$	6.91						$	5.76
Class B common stock				$	0.91						$	0.79						$	2.91						$	2.42
Class C common stock				$	2.17						$	1.89						$	6.91						$	5.76
Basic weighted-average shares outstanding
Class A common stock					496							515							500							524
Class B common stock					245							245							245							245
Class C common stock					26							28							26							29
Diluted earnings per share
Class A common stock				$	2.17						$	1.88						$	6.89						$	5.74
Class B common stock				$	0.91						$	0.79						$	2.90						$	2.41
Class C common stock				$	2.17						$	1.88						$	6.89						$	5.74
Diluted weighted-average shares outstanding
Class A common stock					628							651							633							660
Class B common stock					245							245							245							245
Class C common stock					26							28							26							29

VISA INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
				Nine Months Ended June 30,
				2014						2013
				(in millions)
Operating Activities
Net income				$	4,365					$	3,788
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Amortization of client incentives					1,824						1,641
Share-based compensation					130						139
Excess tax benefit for share-based compensation					(82	)					(64	)
Depreciation and amortization of property, equipment, technology and intangible assets					323						291
Deferred income taxes					(358	)					1,562
Other					10						42
Change in operating assets and liabilities:
Income tax receivable					116						(421	)
Settlement receivable					24						(5	)
Accounts receivable					(55	)					(56	)
Client incentives					(1,775	)					(1,700	)
Other assets					(434	)					(310	)
Accounts payable					(86	)					5
Settlement payable					82						98
Accrued and other liabilities					273						351
Accrued litigation					1,055						(4,384	)
Net cash provided by operating activities					5,412						977
Investing Activities
Purchases of property, equipment, technology and intangible assets					(326	)					(333	)
Investment securities, available-for-sale:
Purchases					(1,842	)					(2,789	)
Proceeds from sales and maturities					1,863						1,767
Acquisition, net of cash received of $25					(134	)					—
Purchases of / contributions to other investments					(3	)					(3	)
Proceeds / distributions from other investments					—						4
Net cash used in investing activities					(442	)					(1,354	)
Financing Activities
Repurchase of class A common stock					(3,362	)					(4,054	)
Dividends paid					(758	)					(653	)
(Return to) payments from litigation escrow account—retrospective responsibility plan					(1,056	)					4,383
Cash proceeds from exercise of stock options					81						98
Restricted stock and performance-based shares settled in cash for taxes					(85	)					(64	)
Excess tax benefit for share-based compensation					82						64
Payment for earn-out related to PlaySpan acquisition					—						(12	)
Principal payments on capital lease obligations					—						(6	)
Net cash used in financing activities					(5,098	)					(244	)
Decrease in cash and cash equivalents					(128	)					(621	)
Cash and cash equivalents at beginning of year					2,186						2,074
Cash and cash equivalents at end of period				$	2,058					$	1,453
Supplemental Disclosure
Income taxes paid, net of refunds				$	1,943					$	478
Non-cash accruals related to purchases of property, equipment, technology and intangible assets				$	42					$	27

VISA INC.
FISCAL 2014 AND 2013 QUARTERLY RESULTS OF OPERATIONS
(UNAUDITED)
		Fiscal 2014 Quarter Ended																			Fiscal 2013 Quarter Ended
		June 30, 2014						March 31, 2014						December 31, 2013							September 30, 2013						June 30, 2013
														(in millions)
Operating Revenues
Service revenues		$	1,417					$	1,462					$	1,419						$	1,385					$	1,298
Data processing revenues			1,321						1,234						1,264							1,186						1,191
International transaction revenues			860						871						891							899						854
Other revenues			195						183						180							183						179
Client incentives			(638	)					(587	)					(599	)						(680	)					(521	)
Total operating revenues			3,155						3,163						3,155							2,973						3,001
Operating Expenses
Personnel			463						446						470							499						493
Marketing			228						245						186							236						252
Network and processing			127						120						132							122						117
Professional fees			82						77						75							130						103
Depreciation and amortization			109						107						107							106						101
General and administrative			126						120						108							129						108
Litigation provision			—						—						—							—						(1	)
Total operating expenses			1,135						1,115						1,078							1,222						1,173
Operating income			2,020						2,048						2,077							1,751						1,828
Non-operating income			10						13						6							15						5
Income before income taxes			2,030						2,061						2,083							1,766						1,833
Income tax provision			670						463						676							574						608
Net income		$	1,360					$	1,598					$	1,407						$	1,192					$	1,225

Operational Performance Data

The tables below provide information regarding the available operational results for the 3 months ended June 30, 2014, as well as the prior four quarterly reporting periods and the 12 months ended June 30, 2014 and 2013, for cards carrying the Visa, Visa Electron and Interlink brands. Also included is a table with information on the number of billable transactions processed on Visa Inc.’s CyberSource network.

1. Branded Volume and Transactions

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

		For the 3 Months Ended June 30, 2014
		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		$487		6.8%		9.3%		$337		11.0%		12.2%		3,832		$150		-1.7%		3.1%		908
Canada		64		0.0%		7.1%		59		0.7%		7.8%		623		5		-8.0%		-1.5%		12
CEMEA		277		5.2%		14.0%		65		18.6%		27.3%		1,398		212		1.6%		10.5%		1,192
LAC		266		-1.3%		9.7%		101		0.5%		12.6%		2,405		165		-2.3%		8.0%		1,013
US		748		9.1%		9.1%		627		9.8%		9.8%		12,221		122		5.7%		5.7%		939
Visa Inc.		1,843		6.0%		9.9%		1,190		9.2%		11.5%		20,480		653		0.5%		7.1%		4,064
Visa Credit Programs
US		$316		12.0%		12.0%		$303		12.2%		12.2%		3,572		$13		8.3%		8.3%		16
International		487		5.3%		9.7%		440		6.8%		10.9%		5,373		47		-6.9%		-0.4%		183
Visa Inc.		803		7.9%		10.6%		743		9.0%		11.4%		8,945		60		-4.1%		1.3%		199
Visa Debit Programs
US		$432		7.1%		7.1%		$323		7.7%		7.7%		8,649		$109		5.4%		5.4%		923
International		607		2.8%		11.0%		123		15.4%		23.1%		2,886		484		0.0%		8.3%		2,942
Visa Inc.		1,039		4.5%		9.3%		447		9.7%		11.6%		11,535		592		0.9%		7.7%		3,865

		For the 3 Months Ended March 31, 2014
		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		$481		7.0%		11.5%		$327		10.8%		14.9%		3,574		$153		-0.3%		5.0%		878		642		738
Canada		57		0.8%		10.3%		52		0.7%		10.1%		552		5		2.3%		11.9%		11		34		44
CEMEA		252		4.1%		14.1%		59		16.4%		28.0%		1,252		194		0.9%		10.5%		1,105		306		307
LAC		250		-4.7%		11.4%		95		-4.0%		13.9%		2,367		155		-5.1%		9.9%		984		411		439
US		690		8.0%		8.0%		575		8.5%		8.5%		11,140		115		5.2%		5.2%		876		568		733
Visa Inc.		1,729		4.9%		10.4%		1,108		8.0%		11.8%		18,885		622		-0.2%		7.9%		3,854		1,960		2,261
Visa Credit Programs
US		$281		10.2%		10.2%		$269		10.6%		10.6%		3,148		$12		1.4%		1.4%		14		215		289
International		463		4.9%		12.2%		417		5.9%		13.2%		5,069		46		-3.9%		4.1%		176		474		533
Visa Inc.		744		6.8%		11.5%		687		7.7%		12.2%		8,217		57		-2.8%		3.6%		191		688		822
Visa Debit Programs
US		$409		6.5%		6.5%		$305		6.8%		6.8%		7,992		$103		5.6%		5.6%		861		353		444
International		577		1.4%		11.9%		115		13.1%		24.8%		2,677		461		-1.1%		9.0%		2,802		919		994
Visa Inc.		985		3.5%		9.6%		421		8.4%		11.2%		10,668		565		0.0%		8.4%		3,663		1,272		1,438

		For the 3 Months Ended December 31, 2013
		Total Volume ($ billions)		Growth (Nominal USD)		Growth (Constant USD)		Payments Volume ($ billions)		Growth (Nominal USD)		Growth (Constant USD)		Payments Transactions (millions)		Cash Volume ($ billions)		Growth (Nominal USD)		Growth (Constant USD)		Cash Transactions (millions)		Accounts (millions)		Cards (millions)
All Visa Credit & Debit
Asia Pacific		$493		7.5%		12.7%		$339		8.3%		14.2%		3,677		$154		5.8%		9.5%		890		622		721
Canada		66		-0.1%		5.5%		62		-0.2%		5.5%		609		5		0.3%		6.0%		11		33		43
CEMEA		286		9.4%		13.3%		62		23.2%		28.7%		1,233		223		6.0%		9.6%		1,176		300		300
LAC		287		1.9%		10.8%		110		5.5%		15.9%		2,506		177		-0.2%		7.8%		1,066		407		437
US		706		7.8%		7.8%		591		8.5%		8.5%		11,590		115		4.3%		4.3%		895		564		727
Visa Inc.		1,838		6.7%		10.3%		1,164		8.3%		11.5%		19,615		674		3.9%		8.1%		4,038		1,926		2,228
Visa Credit Programs
US		$300		9.3%		9.3%		$288		9.6%		9.6%		3,447		$12		2.6%		2.6%		16		216		288
International		502		5.1%		11.5%		450		5.7%		12.5%		5,294		53		0.4%		4.1%		196		472		531
Visa Inc.		802		6.6%		10.7%		737		7.2%		11.3%		8,740		65		0.8%		3.8%		213		688		819
Visa Debit Programs
US		$406		6.7%		6.7%		$303		7.5%		7.5%		8,143		$103		4.5%		4.5%		879		348		439
International		630		6.7%		12.2%		124		18.1%		24.7%		2,731		506		4.2%		9.5%		2,947		890		970
Visa Inc.		1,036		6.7%		10.0%		427		10.4%		11.9%		10,875		609		4.3%		8.6%		3,826		1,238		1,409

		For the 3 Months Ended September 30, 2013
		Total Volume ($ billions)		Growth (Nominal USD)		Growth (Constant USD)		Payments Volume ($ billions)		Growth (Nominal USD)		Growth (Constant USD)		Payments Transactions (millions)		Cash Volume ($ billions)		Growth (Nominal USD)		Growth (Constant USD)		Cash Transactions (millions)		Accounts (millions)		Cards (millions)
All Visa Credit & Debit
Asia Pacific		$464		8.2%		13.6%		$314		8.5%		14.7%		3,558		$150		7.5%		11.2%		854		610		710
Canada		65		4.6%		9.4%		60		4.8%		9.6%		602		5		2.3%		7.0%		12		32		41
CEMEA		265		12.2%		16.1%		57		26.8%		32.7%		1,121		207		8.8%		12.2%		1,120		296		294
LAC		259		1.6%		11.8%		98		4.4%		16.0%		2,348		161		0.0%		9.4%		998		403		431
US		692		9.3%		9.3%		575		10.3%		10.3%		11,402		117		4.8%		4.8%		928		545		713
Visa Inc.		1,745		8.0%		11.8%		1,105		9.6%		13.0%		19,030		640		5.4%		9.8%		3,912		1,886		2,189
Visa Credit Programs
US		$290		10.9%		10.9%		$277		11.0%		11.0%		3,324		$12		8.2%		8.2%		16		210		285
International		470		6.3%		12.9%		420		6.9%		14.0%		5,138		50		1.8%		5.1%		196		468		526
Visa Inc.		760		8.0%		12.2%		697		8.5%		12.8%		8,462		63		3.0%		5.7%		212		678		811
Visa Debit Programs
US		$402		8.2%		8.2%		$298		9.6%		9.6%		8,077		$104		4.4%		4.4%		912		335		428
International		582		7.9%		13.9%		109		17.7%		24.9%		2,491		473		5.9%		11.6%		2,788		873		949
Visa Inc.		984		8.0%		11.5%		407		11.7%		13.3%		10,568		577		5.6%		10.3%		3,700		1,208		1,377

		For the 3 Months Ended June 30, 2013
		Total Volume ($ billions)		Growth (Nominal USD)		Growth (Constant USD)		Payments Volume ($ billions)		Growth (Nominal USD)		Growth (Constant USD)		Payments Transactions (millions)		Cash Volume ($ billions)		Growth (Nominal USD)		Growth (Constant USD)		Cash Transactions (millions)		Accounts (millions)		Cards (millions)
All Visa Credit & Debit
Asia Pacific		$456		10.6%		12.9%		$304		9.7%		13.5%		3,354		$152		12.4%		11.6%		818		592		692
Canada		64		5.1%		5.8%		59		5.5%		6.2%		568		5		0.7%		1.3%		11		31		40
CEMEA		263		13.4%		15.7%		55		28.1%		31.6%		1,047		208		10.0%		12.1%		1,147		291		289
LAC		270		9.4%		11.8%		101		13.1%		16.9%		2,305		169		7.4%		9.0%		975		401		430
US		686		10.4%		10.4%		571		11.3%		11.3%		11,217		115		5.8%		5.8%		906		538		702
Visa Inc.		1,739		10.5%		11.8%		1,089		11.4%		12.9%		18,491		650		9.0%		9.9%		3,857		1,853		2,153
Visa Credit Programs
US		$282		10.1%		10.1%		$270		10.0%		10.0%		3,187		$12		11.6%		11.6%		15		206		280
International		463		8.2%		11.4%		412		8.7%		12.3%		4,915		51		4.2%		4.3%		199		466		525
Visa Inc.		745		8.9%		10.9%		682		9.3%		11.4%		8,102		63		5.5%		5.7%		214		672		805
Visa Debit Programs
US		$404		10.6%		10.6%		$300		12.5%		12.5%		8,031		$103		5.2%		5.2%		891		332		422
International		591		12.6%		14.0%		107		23.9%		25.9%		2,359		484		10.4%		11.6%		2,752		848		926
Visa Inc.		994		11.8%		12.5%		407		15.3%		15.6%		10,389		587		9.4%		10.3%		3,643		1,180		1,348

		For the 12 Months Ended June 30, 2014
		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		$1,925		7.3%		11.7%		$1,319		9.6%		14.0%		14,641		$606		2.7%		7.1%		3,530
Canada		253		1.3%		7.9%		233		1.5%		8.1%		2,386		20		-1.0%		5.5%		46
CEMEA		1,079		7.7%		14.3%		244		21.1%		29.1%		5,004		836		4.3%		10.7%		4,593
LAC		1,062		-0.6%		10.9%		403		1.6%		14.6%		9,626		659		-1.9%		8.7%		4,060
US		2,836		8.6%		8.6%		2,368		9.3%		9.3%		46,352		468		5.0%		5.0%		3,638
Visa Inc.		7,155		6.4%		10.6%		4,566		8.8%		11.9%		78,010		2,589		2.4%		8.2%		15,868
Visa Credit Programs
US		$1,187		10.6%		10.6%		$1,138		10.9%		10.9%		13,491		$49		5.1%		5.1%		63
International		1,923		5.4%		11.6%		1,727		6.3%		12.6%		20,873		196		-2.1%		3.2%		751
Visa Inc.		3,110		7.3%		11.2%		2,865		8.1%		11.9%		34,364		245		-0.8%		3.6%		814
Visa Debit Programs
US		$1,649		7.1%		7.1%		$1,230		7.9%		7.9%		32,861		$419		5.0%		5.0%		3,575
International		2,396		4.7%		12.2%		472		16.0%		24.4%		10,784		1,924		2.2%		9.6%		11,479
Visa Inc.		4,045		5.6%		10.1%		1,702		10.0%		12.0%		43,646		2,344		2.7%		8.7%		15,054

		For the 12 Months Ended June 30, 2013
		Total Volume ($ billions)		Growth (Nominal USD)		Growth (Constant USD)		Payments Volume ($ billions)		Growth (Nominal USD)		Growth (Constant USD)		Payments Transactions (millions)		Cash Volume ($ billions)		Growth (Nominal USD)		Growth (Constant USD)		Cash Transactions (millions)		Accounts (millions)		Cards (millions)
All Visa Credit & Debit
Asia Pacific		$1,793		9.9%		11.5%		$1,203		9.9%		12.0%		12,850		$591		9.9%		10.4%		3,020		592		692
Canada		249		4.6%		4.3%		229		5.3%		4.9%		2,146		20		-2.6%		-2.8%		43		31		40
CEMEA		1,003		14.6%		17.8%		201		27.7%		32.1%		3,687		801		11.7%		14.7%		4,435		291		289
LAC		1,068		5.8%		13.7%		397		9.0%		18.4%		9,097		671		4.0%		11.0%		3,856		401		430
US		2,613		4.4%		4.4%		2,167		4.8%		4.8%		42,557		446		2.1%		2.1%		3,531		538		702
Visa Inc.		6,726		7.5%		9.4%		4,197		7.6%		9.0%		70,337		2,529		7.3%		10.1%		14,884		1,853		2,153
Visa Credit Programs
US		$1,073		9.5%		9.5%		$1,026		9.8%		9.8%		12,140		$47		4.0%		4.0%		61		206		280
International		1,824		7.8%		10.5%		1,624		8.7%		11.7%		18,967		200		1.1%		1.5%		766		466		525
Visa Inc.		2,897		8.4%		10.1%		2,650		9.1%		10.9%		31,106		247		1.6%		2.0%		826		672		805
Visa Debit Programs
US		$1,540		1.0%		1.0%		$1,140		0.8%		0.8%		30,417		$399		1.8%		1.8%		3,470		332		422
International		2,289		11.0%		15.2%		406		19.6%		24.4%		8,814		1,883		9.3%		13.4%		10,588		848		926
Visa Inc.		3,829		6.8%		8.8%		1,547		5.1%		5.8%		39,231		2,282		7.9%		11.0%		14,058		1,180		1,348

Footnote

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

Payments volume represents the aggregate dollar amount of purchases made with cards carrying the Visa, Visa Electron and Interlink brands for the relevant period; and cash volume represents the aggregate dollar amount of cash disbursements obtained with these cards for the relevant period and includes the impact of balance transfers and convenience checks; but excludes proprietary PLUS volume. Total volume represents payments volume plus cash volume.

Visa payment products are comprised of credit and debit programs, and data relating to each program is included in the tables. Debit programs include Visa’s signature based and Interlink (PIN) debit programs.

The data presented is based on results reported quarterly by Visa’s financial institution clients on their operating certificates. Estimates may be utilized if data is unavailable. On occasion, previously presented information may be updated.

Visa’s CEMEA region is comprised of countries in Central Europe, the Middle East and Africa. Effective with the 3 months ended September 2013, Croatia moved from the CEMEA region to Visa Europe. Several European Union countries in Central Europe, Israel and Turkey are not included in CEMEA. LAC is comprised of countries in Central and South America and the Caribbean. International includes Asia Pacific, Canada, CEMEA and LAC.

Information denominated in U.S. dollars is calculated by applying an established U.S. dollar/local currency exchange rate for each local currency in which Visa Inc. volumes are reported (“Nominal USD”). These exchange rates are calculated on a quarterly basis using the established exchange rate for each quarter. To eliminate the impact of foreign currency fluctuations against the U.S. dollar in measuring performance, Visa Inc. also reports year-over-year growth in total volume, payments volume and cash volume on the basis of local currency information (“Constant USD”). This presentation represents Visa’s historical methodology which may be subject to review and refinement.

2. Cross Border Volume

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

Period						Growth (Nominal USD)					Growth (Constant USD)
3 Months Ended
Jun 30, 2014						6%					7%
Mar 31, 2014						5%					8%
Dec 31, 2013						11%					12%
Sep 30, 2013						9%					11%
Jun 30, 2013						11%					11%
12 Months Ended
Jun 30, 2014						8%					9%
Jun 30, 2013						9%					11%

3. Visa Processed Transactions

The table below represents transactions involving Visa, Visa Electron, Interlink and PLUS cards processed on Visa’s networks. CyberSource transactions are not included in this table, and are reported in the next section.

Period						Processed Transactions (millions)					Growth
3 Months Ended
Jun 30, 2014						16,662					11%
Mar 31, 2014						15,354					11%
Dec 31, 2013						15,985					13%
Sep 30, 2013						15,491					14%
Jun 30, 2013						14,972					14%
12 Months Ended
Jun 30, 2014						63,492					12%
Jun 30, 2013						56,554					7%

4. CyberSource Transactions

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

Period						Billable Transactions (millions)					Growth
3 Months Ended
Jun 30, 2014						1,890					15%
Mar 31, 2014						1,859					16%
Dec 31, 2013						1,894					20%
Sep 30, 2013						1,696					24%
Jun 30, 2013						1,648					27%
12 Months Ended
Jun 30, 2014						7,340					18%
Jun 30, 2013						6,199					26%

Source: Visa Inc.