EX-99.1 2 d72749dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

 

 

Visa Inc. Reports Fiscal First Quarter 2016 Results

 

 

 

•   GAAP quarterly net income of $1.9 billion or $0.80 per share including non-cash, non-operating income related to the revaluation of the Visa Europe put option

 

•   Adjusted quarterly net income of $1.7 billion or $0.69 per share excluding the revaluation of the Visa Europe put option

San Francisco, CA, January 28, 2016 – Visa Inc. (NYSE: V) today announced financial results for the Company’s fiscal first quarter 2016. GAAP net income for the quarter, inclusive of non-cash, non-operating income related to an adjustment in the Company’s fair value of its Visa Europe put option, was $1.9 billion, or $0.80 per share. All references to earnings per share assume fully-diluted class A share count unless otherwise noted.

Excluding the $255 million non-cash, non-operating income recorded upon remeasurement of the Visa Europe put option, adjusted net income for the quarter was $1.7 billion, an increase of 7% over the prior year, or $0.69 per share, an increase of 10% over the prior year. The change in the fair value of the Visa Europe put option was triggered by the amendment of the put option in connection with the Visa Europe Transaction Agreement. The Company’s adjusted quarterly net income, effective income tax rate and earnings per share are non-GAAP financial measures that are reconciled to their most directly comparable GAAP measure in the accompanying financial tables.

Net operating revenue in the fiscal first quarter of 2016 was $3.6 billion, an increase of 5% nominally or 8% on a constant dollar basis over the prior year, driven by growth in service revenues, data processing revenues and international transaction revenues. Currency rate shifts versus the prior year negatively impacted reported net operating revenue growth by approximately 3 percentage points.

“We continue to be pleased with our financial performance given the uneven global economy and the ongoing negative effects of the strong U.S. dollar. While we continue to see relatively strong payments volume growth, these factors have meaningfully reduced our cross-border volume and revenue growth. While these headwinds do not appear to be abating in the short-term as we had hoped, the fundamentals of our business remain strong and our long-term growth trajectory remains intact as we navigate through this uncertain environment,” said Charlie Scharf, Chief Executive Officer of Visa Inc.

 

1

Fiscal First Quarter 2016 Financial Highlights:

Payments volume growth, on a constant dollar basis, for the three months ended September 30, 2015, on which fiscal first quarter service revenue is recognized, was 12% over the prior year at $1.3 trillion.

Payments volume growth, on a constant dollar basis, for the three months ended December 31, 2015, was 11% over the prior year at $1.3 trillion.

Cross-border volume growth, on a constant dollar basis, was 4% for the three months ended December 31, 2015.

Total processed transactions, which represent transactions processed by VisaNet, for the three months ended December 31, 2015, were 19.0 billion, an 8% increase over the prior year.

Fiscal first quarter 2016 service revenues were $1.6 billion, an increase of 7% 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 7% over the prior year to $1.5 billion. International transaction revenues grew 6% over the prior year to $1.0 billion. Other revenues were $198 million, a decrease of 3% over the prior year. Client incentives, which are a contra revenue item, were $788 million and represent 18.1% of gross revenues.

Total operating expenses were $1.2 billion for the quarter, a 2% increase over the prior year, as the Company took the necessary steps to prioritize cost controls given an increasingly challenging macro-economic environment.

The Company recognized interest expense of $24 million for the quarter ended December 31, 2015 as a result of the issuance of approximately $16.0 billion of fixed-rate senior notes.

 

2

For the quarter ended December 31, 2015, the GAAP effective tax rate was 26.4% and the adjusted effective tax rate was 29.3%.

Cash, cash equivalents, and available-for-sale investment securities were $24.8 billion at December 31, 2015.

The weighted-average number of diluted shares of class A common stock outstanding was 2.4 billion for the quarter ended December 31, 2015.

Notable Events:

On December 14, 2015, the Company issued fixed-rate senior notes in an aggregate principal amount of $16.0 billion with maturities ranging between 2 and 30 years, and interest rates from 1.20% to 4.30%. The weighted average interest rate is 3.08% and the weighted average maturity of the notes is 13 years. Among other things, the proceeds will be used to fund the up-front cash consideration of the purchase price for the planned acquisition of Visa Europe Limited.

During the three months ended December 31, 2015, the Company repurchased 25.7 million shares of class A common stock, at an average price of $78.52 per share, using $2.0 billion of cash on hand. The Company has $5.8 billion of remaining funds, authorized by the board of directors, available for share repurchase under the current programs as of December 31, 2015.

Financial Outlook for Fiscal Full-Year 2016:

While the Company is not changing its financial outlook for the fiscal full-year, continued moderating cross-border volume growth and subdued domestic activity across our geographies could ultimately affect our results. Current guidance is outlined below:

 

  •   Annual net revenue growth: High single-digit to low double-digit range on a constant dollar basis, with an expectation of about three percentage points of negative foreign currency impact;

 

  •   Client incentives as a percent of gross revenues: 17.5% to 18.5% range;

 

  •   Annual operating margin: Mid 60s;

 

  •   Adjusted effective tax rate: Low 30s;

 

3

  •   Annual adjusted diluted class A common stock earnings per share growth: Low-end of the mid-teens range on a constant dollar basis, with an expectation of about four percentage points of negative foreign currency impact; and

 

  •   Annual free cash flow: About $7 billion.

Note: The financial outlook for fiscal full-year 2016 does not include any impact from the Visa Europe transaction, including interest expense from the $16.0 billion issuance of fixed-rate senior notes of about $125 million per quarter.

Fiscal First Quarter 2016 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 Inc. (NYSE: V) 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 65,000 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, pay ahead of time with prepaid or pay 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 “estimates,” “expectation,” “outlook”, “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, tax rate, earnings per share, 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 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.

 

4

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:

 

  •   increased regulation of fees, transaction routing, payment card practices or other aspects of the payments industry in the United States, including new or revised regulations issued under the Dodd-Frank Wall Street Reform and Consumer Protection Act;

 

  •   increased regulation in jurisdictions outside of the United States;

 

  •   increased government support of national payment networks outside the United States; and

 

  •   increased regulation of 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, the United States and in other advanced and emerging markets;

 

  •   general economic, political and social conditions in mature and emerging markets globally;

 

  •   general stock market fluctuations which may impact consumer spending;

 

  •   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;

 

•   the transaction with Visa Europe may not be consummated on the terms currently contemplated or at all;

 

•   Visa Europe’s business may not be successfully integrated with our business or we may not achieve the anticipated benefits of the transaction;

 

•   the costs and risks associated with the transaction with Visa Europe;

 

•   matters arising in connection with Visa Europe’s or our efforts to comply with and satisfy applicable regulatory approvals and closing conditions relating to the transaction;

 

•   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 more fully described in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended September 30, 2015, and our subsequent reports on Forms 10-Q and 8-K.

 

5

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.

Contacts:

Investor Relations: Jack Carsky or Victoria Hyde-Dunn, 650-432-7644, ir@visa.com

Media Relations: Connie Kim, 212-521-3962, globalmedia@visa.com

 

6

VISA INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

     December 31,
2015		     September 30,
2015		  
     (in millions, except par value data)  

Assets

     

Cash and cash equivalents

    $ 12,837      $ 3,518   

Restricted cash—litigation escrow

      1,061        1,072   

Investment securities:

     

Trading

      80        66   

Available-for-sale

      8,428        2,431   

Settlement receivable

      443        408   

Accounts receivable

      922        847   

Customer collateral

      1,041        1,023   

Current portion of client incentives

      414        303   

Prepaid expenses and other current assets

      247        353   
  

 

 

    

 

 

  

Total current assets

      25,473        10,021   

Investment securities, available-for-sale

      3,487        3,384   

Client incentives

      128        110   

Property, equipment and technology, net

      1,884        1,888   

Other assets

      832        778   

Intangible assets, net

      11,348        11,361   

Goodwill

      11,825        11,825   
  

 

 

    

 

 

  

Total assets

    $ 54,977      $ 39,367   
  

 

 

    

 

 

  

Liabilities

     

Accounts payable

    $ 118      $ 127   

Settlement payable

      744        780   

Customer collateral

      1,041        1,023   

Accrued compensation and benefits

      317        503   

Client incentives

      1,116        1,049   

Accrued liabilities

      1,009        849   

Accrued litigation

      1,012        1,024   
  

 

 

    

 

 

  

Total current liabilities

      5,357        5,355   

Long-term debt

      15,877        —     

Deferred tax liabilities

      3,344        3,273   

Other liabilities

      923        897   
  

 

 

    

 

 

  

Total liabilities

      25,501        9,525   
  

 

 

    

 

 

  

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, 1,926 and 1,950 shares issued and outstanding at December 31, 2015 and September 30, 2015, respectively

      —          —     

Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at December 31, 2015 and September 30, 2015

      —          —     

Class C common stock, $0.0001 par value, 1,097 shares authorized, 19 and 20 shares issued and outstanding at December 31, 2015 and September 30, 2015, respectively

      —          —     

Additional paid-in capital

      17,824        18,073   

Accumulated income

      11,701        11,843   

Accumulated other comprehensive loss, net:

     

Investment securities, available-for-sale

      23        5   

Defined benefit pension and other postretirement plans

      (131 )      (161 ) 

Derivative instruments classified as cash flow hedges

      60        83   

Foreign currency translation adjustments

      (1 )      (1 ) 
  

 

 

    

 

 

  

Total accumulated other comprehensive loss, net

      (49 )      (74 ) 
  

 

 

    

 

 

  

Total equity

      29,476        29,842   
  

 

 

    

 

 

  

Total liabilities and equity

    $ 54,977      $ 39,367   
  

 

 

    

 

 

  

VISA INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

 

     Three Months Ended
December 31,		  
     2015     2014  
     (in millions, except per share data)  

Operating Revenues

     

Service revenues

    $ 1,645      $ 1,538   

Data processing revenues

      1,479        1,383   

International transaction revenues

      1,031        970   

Other revenues

      198        204   

Client incentives

      (788 )      (713 ) 
  

 

 

    

 

 

  

Total operating revenues

      3,565        3,382   
  

 

 

    

 

 

  

Operating Expenses

     

Personnel

      499        509   

Marketing

      194        205   

Network and processing

      128        114   

Professional fees

      72        70   

Depreciation and amortization

      120        120   

General and administrative

      156        126   
  

 

 

    

 

 

  

Total operating expenses

      1,169        1,144   
  

 

 

    

 

 

  

Operating income

      2,396        2,238   

Non-operating Income

     

Interest expense

      (29 )      (3 ) 

Other

      272        27   
  

 

 

    

 

 

  

Total non-operating income

      243        24   
  

 

 

    

 

 

  

Income before income taxes

      2,639        2,262   

Income tax provision

      698        693   
  

 

 

    

 

 

  

Net income

    $ 1,941      $ 1,569   
  

 

 

    

 

 

  

Basic earnings per share

     

Class A common stock

    $ 0.80      $ 0.63   
  

 

 

    

 

 

  

Class B common stock

    $ 1.32      $ 1.05   
  

 

 

    

 

 

  

Class C common stock

    $ 3.20      $ 2.54   
  

 

 

    

 

 

  

Basic weighted-average shares outstanding

     

Class A common stock

      1,937        1,974   
  

 

 

    

 

 

  

Class B common stock

      245        245   
  

 

 

    

 

 

  

Class C common stock

      20        22   
  

 

 

    

 

 

  

Diluted earnings per share

     

Class A common stock

    $ 0.80      $ 0.63   
  

 

 

    

 

 

  

Class B common stock

    $ 1.32      $ 1.04   
  

 

 

    

 

 

  

Class C common stock

    $ 3.20      $ 2.53   
  

 

 

    

 

 

  

Diluted weighted-average shares outstanding

     

Class A common stock

      2,430        2,478   
  

 

 

    

 

 

  

Class B common stock

      245        245   
  

 

 

    

 

 

  

Class C common stock

      20        22   
  

 

 

    

 

 

  

VISA INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

     Three Months Ended
December 31,		  
     2015     2014  
     (in millions)  

Operating Activities

     

Net income

    $ 1,941      $ 1,569   

Adjustments to reconcile net income to net cash provided by operating activities:

     

Amortization of client incentives

      788        713   

Fair value adjustment for the Visa Europe put option

      (255 )      —     

Share-based compensation

      39        45   

Excess tax benefit for share-based compensation

      (36 )      (58 ) 

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

      120        120   

Deferred income taxes

      45        97   

Other

      5        (19 ) 

Change in operating assets and liabilities:

     

Settlement receivable

      (35 )      286   

Accounts receivable

      (75 )      (78 ) 

Client incentives

      (850 )      (687 ) 

Other assets

      23        (141 ) 

Accounts payable

      —          10   

Settlement payable

      (36 )      (477 ) 

Accrued and other liabilities

      317        484   

Accrued litigation

      (12 )      (103 ) 
  

 

 

    

 

 

  

Net cash provided by operating activities

      1,979        1,761   
  

 

 

    

 

 

  

Investing Activities

     

Purchases of property, equipment, technology and intangible assets

      (126 )      (104 ) 

Investment securities, available-for-sale:

     

Purchases

      (6,803 )      (758 ) 

Proceeds from maturities and sales

      739        226   

Purchases of / contributions to other investments

      (8 )      —     

Proceeds / distributions from other investments

      4        —     
  

 

 

    

 

 

  

Net cash used in investing activities

      (6,194 )      (636 ) 
  

 

 

    

 

 

  

Financing Activities

     

Repurchase of class A common stock

      (2,015 )      (803 ) 

Dividends paid

      (340 )      (297 ) 

Proceeds from issuance of senior notes

      15,971        —     

Debt issuance costs

      (77 )      —     

Payments from litigation escrow account—U.S. retrospective responsibility plan

      11        100   

Cash proceeds from issuance of common stock under employee equity plans

      29        30   

Restricted stock and performance-based shares settled in cash for taxes

      (81 )      (100 ) 

Excess tax benefit for share-based compensation

      36        58   
  

 

 

    

 

 

  

Net cash provided by (used in) financing activities

      13,534        (1,012 ) 
  

 

 

    

 

 

  

Effect of exchange rate changes on cash and cash equivalents

      —          1   
  

 

 

    

 

 

  

Increase in cash and cash equivalents

      9,319        114   

Cash and cash equivalents at beginning of year

      3,518        1,971   
  

 

 

    

 

 

  

Cash and cash equivalents at end of period

    $ 12,837      $ 2,085   
  

 

 

    

 

 

  

Supplemental Disclosure

     

Income taxes paid, net of refunds

    $ 79      $ 57   

Accruals related to purchases of property, equipment, technology and intangible assets

    $ 40      $ 21   

VISA INC.

FISCAL 2016 AND 2015 QUARTERLY RESULTS OF OPERATIONS

(UNAUDITED)

 

     Fiscal 2016
Quarter Ended		     Fiscal 2015 Quarter Ended  
     December 31,
2015		     September 30,
2015		         June 30,    
2015		         March 31,    
2015		     December 31,
2014		  
     (in millions)  

Operating Revenues

           

Service revenues

    $ 1,645      $ 1,637      $ 1,550      $ 1,577      $ 1,538   

Data processing revenues

      1,479        1,429        1,400        1,340        1,383   

International transaction revenues

      1,031        1,091        1,039        964        970   

Other revenues

      198        216        199        204        204   

Client incentives

      (788 )      (802 )      (670 )      (676 )      (713 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total operating revenues

      3,565        3,571        3,518        3,409        3,382   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating Expenses

           

Personnel

      499        521        566        483        509   

Marketing

      194        253        224        190        205   

Network and processing

      128        134        117        109        114   

Professional fees

      72        107        82        77        70   

Depreciation and amortization

      120        119        130        125        120   

General and administrative

      156        143        137        141        126   

Litigation provision

      —          11        —          3        —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total operating expenses

      1,169        1,288        1,256        1,128        1,144   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating income

      2,396        2,283        2,262        2,281        2,238   

Non-operating Income (Expense)

           

Interest expense

      (29 )      —          8        (7 )      (3 ) 

Other

      272        —          (102 )      8        27   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total non-operating income (expense)

      243        —          (94 )      1        24   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

      2,639        2,283        2,168        2,282        2,262   

Income tax provision

      698        771        471        732        693   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income

    $ 1,941      $ 1,512      $ 1,697      $ 1,550      $ 1,569   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

VISA INC.

RECONCILIATION OF NON-GAAP FINANCIAL RESULTS

(UNAUDITED)

During the first quarter of fiscal 2016, we recorded a decrease of $255 million in the fair value of the Visa Europe put option, resulting in the recognition of non-cash, non-operating income that we do not believe is indicative of our operating performance. As such, we believe the presentation of adjusted financial results provides a clearer understanding of our operating performance for the current period presented. This amount is not subject to income tax and therefore has no impact on our reported income tax provision. There was no comparable adjustment recorded for the three months ended December 31, 2014. Adjusted net income, effective income tax rate and diluted earnings per share are non-GAAP financial measures and should not be relied upon as substitutes for measures calculated in accordance with U.S. GAAP. The following table reconciles our as-reported net income, effective income tax rate and diluted earnings per share, which are calculated in accordance with U.S. GAAP, to our respective non-GAAP adjusted financial measures for the three months ended December 31, 2015:

 

     Three Months Ended December 31, 2015  
     Net Income     Effective Income Tax
Rate(1)		      Diluted Earnings per
Share(1)		  
     (in millions, except percentages and per share data)  

As reported

    $ 1,941        26%       $ 0.80   

Revaluation of Visa Europe put option

      (255 )      3%         (0.10 ) 
  

 

 

    

 

 

     

 

 

  

As adjusted

    $ 1,686        29%       $ 0.69   
  

 

 

    

 

 

     

 

 

  

Diluted weighted-average shares outstanding, as reported

           2,430   

 

(1) Figures in the table may not recalculate exactly due to rounding. Effective income tax rate and diluted earnings per share figures are calculated based on unrounded numbers.

LOGO

Operational Performance Data

The tables below provide information regarding the available operational results for the 3 months ended December 31, 2015, as well as the prior four quarterly reporting periods and the 12 months ended December 31, 2015 and 2014, for cards carrying the Visa, Visa Electron and Interlink brands.

1. Branded Volume and Transactions

The 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.

 

    For the 3 Months Ended December 31, 2015    
    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

   $ 526        3.0%        10.9%      $ 387        7.9%        15.7%        4,894      $ 139        -8.5%        -0.5%      1,039  

Canada

     59        -10.8%        4.9%        55        -11.1%        4.6%        720        5        -6.8%        9.7%      11  

CEMEA

     227        -13.8%        4.8%        60        -7.0%        11.5%        2,097        167        -16.0%        2.7%      1,234  

LAC

     237        -17.1%        10.3%        89        -17.6%        14.2%        2,912        147        -16.7%        8.1%      1,173  

US          

     841        8.9%        8.9%        713        9.5%        9.5%        14,033        128        5.5%        5.5%      934  
 

 

 

        

 

 

        

 

 

    

 

 

        

 

  

Visa Inc.

     1,890        -0.4%        9.0%        1,305        4.8%        11.5%        24,656        586        -10.4%        3.9%      4,392  

Visa Credit Programs

                        

US

   $ 372        9.2%        9.2%      $ 358        9.2%        9.2%        4,393      $ 14        7.9%        7.9%      17  

International

     504        -1.3%        12.1%        470        0.5%        13.5%        6,490        34        -20.3%        -3.9%      164  
 

 

 

        

 

 

        

 

 

    

 

 

        

 

  

Visa Inc.

     876        2.9%        10.8%        827        4.1%        11.6%        10,883        49        -13.7%        -0.7%      181  

Visa Debit Programs

                        

US

   $ 469        8.7%        8.7%      $ 355        9.8%        9.8%        9,640      $ 113        5.2%        5.2%      917  

International

     546        -11.4%        6.4%        122        -3.5%        15.6%        4,133        424        -13.5%        4.0%      3,293  
 

 

 

        

 

 

        

 

 

    

 

 

        

 

  

Visa Inc.

     1,014        -3.1%        7.5%        477        6.1%        11.3%        13,773        537        -10.1%        4.3%      4,210  
    For the 3 Months Ended September 30, 2015
    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

   $ 510        0.8%        11.2%      $ 372        5.7%        16.6%        4,674      $ 138        -10.3%        -1.2%      1,029   738   835

Canada

     58        -12.0%        5.2%        54        -12.1%        5.1%        698        5        -11.3%        6.0%      12   43   50

CEMEA

     232        -17.1%        9.4%        61        -9.9%        17.1%        1,914        171        -19.4%        6.9%      1,195   333   321

LAC

     227        -17.5%        11.2%        85        -18.1%        14.0%        2,702        142        -17.2%        9.6%      1,093   415   451

US          

     822        8.7%        8.7%        693        9.7%        9.7%        13,658        129        3.9%        3.9%      959   630   802
 

 

 

        

 

 

        

 

 

    

 

 

        

 

  

 

  

 

Visa Inc.

     1,850        -1.8%        9.7%        1,265        4.0%        12.1%        23,647        585        -12.3%        4.8%      4,287   2,158   2,459

Visa Credit Programs

                          

US

   $ 359        9.9%        9.9%      $ 345        10.2%        10.2%        4,224      $ 14        2.9%        2.9%      18   250   329

International

     491        -2.7%        14.1%        456        -0.3%        15.6%        6,211        35        -25.3%        -2.3%      164   499   558
 

 

 

        

 

 

        

 

 

    

 

 

        

 

  

 

  

 

Visa Inc.

     850        2.3%        12.3%        800        3.9%        13.2%        10,435        50        -18.9%        -0.8%      181   749   887

Visa Debit Programs

                          

US

   $ 463        7.9%        7.9%      $ 349        9.2%        9.2%        9,434      $ 115        4.0%        4.0%      941   380   473

International

     537        -13.8%        7.2%        116        -8.7%        13.1%        3,777        420        -15.1%        5.7%      3,164   1,029   1,099
 

 

 

        

 

 

        

 

 

    

 

 

        

 

  

 

  

 

Visa Inc.

     1,000        -5.0%        7.5%        465        4.1%        10.1%        13,212        535        -11.7%        5.4%      4,105   1,410   1,572

Operational Performance Data

 

 

    For the 3 Months Ended June 30, 2015  
    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

   $ 510        4.3%        10.9%      $ 364        7.9%        15.3%        4,394      $ 145        -3.8%        1.1%        1,003        725        822   

Canada

     62        -5.0%        6.0%        57        -5.3%        5.7%        679        5        -2.5%        8.9%        12        42        49   

CEMEA

     238        -13.8%        7.3%        61        -6.0%        15.3%        1,783        177        -16.3%        4.8%        1,195        332        321   

LAC

     237        -10.9%        11.6%        89        -12.4%        12.5%        2,595        148        -10.0%        11.1%        1,072        420        451   

US          

     810        8.0%        8.0%        683        8.8%        8.8%        13,265        126        3.8%        3.8%        951        628        798   
 

 

 

        

 

 

        

 

 

    

 

 

        

 

 

    

 

 

    

 

 

  

Visa Inc.

     1,855        0.6%        9.1%        1,254        5.3%        11.0%        22,717        602        -8.0%        5.1%        4,232        2,145        2,441   

Visa Credit Programs

                          

US

   $ 352        11.3%        11.3%      $ 339        11.7%        11.7%        4,072      $ 13        3.5%        3.5%        16        246        323   

International

     490        0.6%        12.9%        453        3.0%        14.5%        5,915        37        -21.7%        -3.8%        160        496        554   
 

 

 

        

 

 

        

 

 

    

 

 

        

 

 

    

 

 

    

 

 

  

Visa Inc.

     843        4.8%        12.2%        792        6.5%        13.3%        9,988        51        -16.3%        -2.0%        176        742        876   

Visa Debit Programs

                          

US

   $ 457        5.6%        5.6%      $ 344        6.1%        6.1%        9,192      $ 113        3.8%        3.8%        935        382        476   

International

     555        -8.6%        7.4%        117        -4.7%        11.3%        3,537        438        -9.6%        6.4%        3,121        1,021        1,089   
 

 

 

        

 

 

        

 

 

    

 

 

        

 

 

    

 

 

    

 

 

  

Visa Inc.

     1,013        -2.7%        6.6%        462        3.2%        7.4%        12,729        551        -7.1%        5.9%        4,056        1,404        1,565   
    For the 3 Months Ended March 31, 2015  
    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

   $ 495        2.9%        8.6%      $ 343        4.8%        11.6%        4,092      $ 152        -1.2%        2.4%        986        711        809   

Canada

     54        -5.0%        7.1%        49        -5.3%        6.8%        602        5        -1.7%        10.9%        12        42        49   

CEMEA

     212        -16.0%        11.8%        54        -8.2%        19.9%        1,615        158        -18.4%        9.3%        1,121        329        323   

LAC

     243        -2.9%        13.4%        93        -1.4%        15.7%        2,529        149        -3.8%        12.1%        1,043        417        450   

US          

     748        8.4%        8.4%        628        9.2%        9.2%        12,206        120        4.3%        4.3%        890        620        789   
 

 

 

        

 

 

        

 

 

    

 

 

        

 

 

    

 

 

    

 

 

  

Visa Inc.

     1,751        1.2%        9.5%        1,168        5.4%        10.8%        21,044        584        -6.2%        7.0%        4,052        2,120        2,420   

Visa Credit Programs

                          

US

   $ 316        12.3%        12.3%      $ 303        12.3%        12.3%        3,623      $ 13        12.1%        12.1%        15        241        318   

International

     463        0.0%        11.5%        428        2.7%        12.8%        5,533        35        -24.2%        -2.6%        153        489        546   
 

 

 

        

 

 

        

 

 

    

 

 

        

 

 

    

 

 

    

 

 

  

Visa Inc.

     779        4.6%        11.8%        731        6.4%        12.6%        9,156        48        -16.8%        1.0%        168        730        864   

Visa Debit Programs

                          

US

   $ 433        5.8%        5.8%      $ 325        6.5%        6.5%        8,583      $ 107        3.4%        3.4%        875        379        471   

International

     540        -6.4%        9.4%        111        -3.7%        11.9%        3,306        429        -7.0%        8.7%        3,009        1,011        1,085   
 

 

 

        

 

 

        

 

 

    

 

 

        

 

 

    

 

 

    

 

 

  

Visa Inc.

     972        -1.3%        7.7%        437        3.7%        7.9%        11,889        536        -5.1%        7.6%        3,884        1,390        1,556   
    For the 3 Months Ended December 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

   $ 511        3.6%        7.9%      $ 359        5.8%        10.8%        4,186      $ 152        -1.4%        1.7%        974        698        797   

Canada

     66        -0.1%        8.7%        62        -0.1%        8.7%        671        5        0.2%        9.0%        11        42        49   

CEMEA

     264        -7.8%        15.5%        65        3.2%        26.1%        1,616        199        -10.9%        12.4%        1,213        325        321   

LAC

     285        -0.6%        12.9%        109        -1.3%        12.6%        2,683        177        -0.2%        13.0%        1,130        414        452   

US          

     772        9.4%        9.4%        651        10.2%        10.2%        12,595        121        5.2%        5.2%        916        611        782   
 

 

 

        

 

 

        

 

 

    

 

 

        

 

 

    

 

 

    

 

 

  

Visa Inc.

     1,898        3.3%        10.1%        1,245        6.9%        11.1%        21,750        654        -3.1%        8.1%        4,243        2,089        2,401   

Visa Credit Programs

                          

US

   $ 341        13.7%        13.7%      $ 327        13.9%        13.9%        3,957      $ 13        9.2%        9.2%        16        236        313   

International

     510        1.6%        10.6%        467        3.9%        11.7%        5,769        43        -18.3%        -1.2%        173        485        543   
 

 

 

        

 

 

        

 

 

    

 

 

        

 

 

    

 

 

    

 

 

  

Visa Inc.

     851        6.1%        11.9%        795        7.8%        12.7%        9,725        56        -13.1%        1.4%        189        721        857   

Visa Debit Programs

                          

US

   $ 431        6.2%        6.2%      $ 324        6.6%        6.6%        8,638      $ 108        4.7%        4.7%        899        374        469   

International

     616        -2.3%        10.8%        126        2.3%        14.4%        3,387        490        -3.4%        9.9%        3,155        994        1,076   
 

 

 

        

 

 

        

 

 

    

 

 

        

 

 

    

 

 

    

 

 

  

Visa Inc.

     1,047        1.0%        8.6%        450        5.4%        8.5%        12,025        597        -2.0%        8.8%        4,054        1,368        1,545   

 

Operational Performance Data

 

 

    For the 12 Months Ended December 31, 2015      
    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

   $ 2,041        2.8%        10.4%      $ 1,467        6.6%        14.8%        18,055      $ 574        -6.0%        0.5%      4,055  

Canada

     233        -8.4%        5.8%        214        -8.6%        5.5%        2,699        19        -5.7%        8.8%      46  

CEMEA

     909        -15.2%        8.2%        236        -7.8%        15.8%        7,410        673        -17.5%        5.8%      4,746  

LAC

     943        -12.4%        11.6%        357        -12.7%        14.1%        10,738        587        -12.2%        10.2%      4,381  

US          

     3,221        8.5%        8.5%        2,718        9.3%        9.3%        53,162        503        4.4%        4.4%      3,734  
 

 

 

        

 

 

        

 

 

    

 

 

        

 

  

Visa Inc.

     7,346        -0.1%        9.3%        4,991        4.9%        11.3%        92,064        2,355        -9.3%        5.2%      16,962  

Visa Credit Programs

                        

US

   $ 1,399        10.6%        10.6%      $ 1,344        10.8%        10.8%        16,312      $ 55        6.4%        6.4%      66  

International

     1,948        -0.9%        12.6%        1,807        1.4%        14.1%        24,149        142        -22.9%        -3.2%      641  
 

 

 

        

 

 

        

 

 

    

 

 

        

 

  

Visa Inc.

     3,347        3.6%        11.8%        3,151        5.2%        12.7%        40,461        197        -16.5%        -0.7%      707  

Visa Debit Programs

                        

US

   $ 1,822        7.0%        7.0%      $ 1,374        7.9%        7.9%        36,850      $ 448        4.1%        4.1%      3,668  

International

     2,177        -10.1%        7.6%        467        -5.2%        13.0%        14,753        1,711        -11.4%        6.2%      12,588  
 

 

 

        

 

 

        

 

 

    

 

 

        

 

  

Visa Inc.

     3,999        -3.1%        7.3%        1,840        4.3%        9.2%        51,602        2,159        -8.6%        5.8%      16,255  
    For the 12 Months Ended December 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

   $ 1,986        6.7%        9.5%      $ 1,376        9.8%        12.6%        15,581      $ 610        0.1%        3.3%      3,722   698     797   

Canada

     254        0.8%        8.4%        234        0.8%        8.5%        2,500        20        0.6%        8.1%      46   42     49   

CEMEA

     1,071        1.4%        14.6%        256        13.6%        25.9%        5,743        816        -1.9%        11.4%      4,670   325     321   

LAC

     1,077        -0.1%        11.6%        408        0.4%        12.8%        9,939        668        -0.4%        10.9%      4,183   414     452   

US          

     2,968        9.0%        9.0%        2,486        9.7%        9.7%        48,273        482        5.5%        5.5%      3,687   611     782   
 

 

 

        

 

 

        

 

 

    

 

 

        

 

  

 

  

 

 

  

Visa Inc.

     7,356        5.5%        10.1%        4,760        8.6%        11.3%        82,036        2,596        0.3%        7.8%      16,308   2,089     2,401   

Visa Credit Programs

                          

US

   $ 1,265        12.3%        12.3%      $ 1,213        12.5%        12.5%        14,412      $ 52        7.8%        7.8%     

64

  

236

     313   

International

     1,966        4.8%        10.6%        1,782        6.4%        11.7%        21,750        184        -8.8%        -0.1%     

709

  

485

     543   
 

 

 

        

 

 

        

 

 

    

 

 

        

 

  

 

  

 

 

  

Visa Inc.

     3,231        7.6%        11.3%        2,995        8.8%        12.0%        36,163        235        -5.6%        1.8%     

773

  

721

     857   

Visa Debit Programs

                          

US

   $ 1,703        6.7%        6.7%      $ 1,273        7.2%        7.2%        33,861      $ 430        5.3%        5.3%     

3,623

  

374

     469   

International

     2,423        2.1%        11.4%        492        11.3%        20.4%        12,013        1,930        0.0%        9.3%     

11,912

  

994

     1,076   
 

 

 

        

 

 

        

 

 

    

 

 

        

 

  

 

  

 

 

  

Visa Inc.

     4,126        3.9%        9.2%        1,765        8.3%        10.1%        45,874        2,361        0.9%        8.4%     

15,535

  

1,368

     1,545   

 

Operational Performance Data

 

 

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, 2015

    -4%     4%

Sep 30, 2015

    -4%     5%

Jun 30, 2015

    0%     8%

Mar 31, 2015

    2%     8%

Dec 31, 2014

    4%     8%

12 Months Ended

     

Dec 31, 2015

    -2%     6%

Dec 31, 2014

    6%     8%

3. Visa Processed Transactions

The table below represents transactions involving Visa, Visa Electron, Interlink and PLUS cards processed on Visa’s networks.

 

Period

    Processed
Transactions
        (millions)        		        Growth    

3 Months Ended

      

Dec 31, 2015

    18,986      8%

Sep 30, 2015

    18,365      8%

Jun 30, 2015

    18,024      8%

Mar 31, 2015

    16,980    11%

Dec 31, 2014

    17,599    10%

12 Months Ended

      

Dec 31, 2015

    72,355      9%

Dec 31, 2014

    66,607    10%

 

Operational Performance Data

 

 

Footnote

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. Prior period updates, if any, are not material.

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.