Exhibit 99.1

 

 

 

Visa Inc. Posts Strong Fiscal Third Quarter 2012 Earnings Results and Authorizes New $1 Billion Share Repurchase Program

 

 

 

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Adjusted quarterly net income of $1.1 billion or $1.56 per diluted class A common share excluding a litigation provision and related tax benefit

 

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GAAP quarterly net loss of $1.8 billion inclusive of a litigation provision of $4.1 billion covered under the Company’s Retrospective Responsibility Plan

 

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The Company authorized a new $1 billion share repurchase program and deposited $150 million into the litigation escrow

SAN FRANCISCO, CA, July 25, 2012 – Visa Inc. (NYSE: V) today announced financial results for the Company’s fiscal third quarter 2012 ended June 30, 2012. On a GAAP basis, the Company reported a net loss of $1.8 billion, inclusive of a litigation provision of $4.1 billion, related to the previously announced settlement agreement in the Multi-District Litigation case. Visa’s share will be paid from the previously funded litigation escrow account established pursuant to the Company’s Retrospective Responsibility Plan.

Excluding the litigation provision of $4.1 billion and related tax benefit, adjusted net income for the quarter was $1.1 billion, or $1.56 per diluted class A common share, an increase of 25% over the prior year on an adjusted basis. The adjusted weighted-average number of diluted class A common shares outstanding during the third quarter was 675 million. The Company’s adjusted quarterly net income per share of class A common stock is a non-GAAP financial measure that is reconciled to its most directly comparable GAAP measure in the accompanying financial tables.

GAAP net operating revenue in the fiscal third quarter of 2012 was $2.6 billion, an increase of 10% over the prior year and driven by strong double-digit growth in service revenues, data processing revenues and international transaction revenues. There was no significant impact on current quarter results related to the strengthening or weakening of the U.S. dollar over the prior year.

“Visa once again reported solid global growth in payments volume, cross border transactions and processed transactions outside the U.S., executing on our strategy of growing the electronification of payments worldwide. We are pleased that we were able to come to a resolution in the merchant litigation which was acceptable to most parties while ensuring the long-term health of the U.S. payments industry,” said Joseph Saunders, chairman and chief executive officer of Visa Inc. “As we look forward, we remain focused on launching new payment solutions and products for our financial and merchant partners and consumers, while supporting the Visa brand and the advancement of electronic payments.”

 

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Fiscal Third Quarter 2012 Financial Highlights:

Payments volume growth, on a constant dollar basis, for the three months ended March 31, 2012, on which fiscal third quarter service revenue is recognized, was a positive 11% over the prior year at $958 billion.

Payments volume growth, on a constant dollar basis, for the three months ended June 30, 2012, was a positive 6% over the prior year at $979 billion.

Cross-border volume growth, on a constant dollar basis, was a positive 14% for the three months ended June 30, 2012.

Total processed transactions, which represent transactions processed by VisaNet, for the three months ended June 30, 2012, were 13.1 billion, a positive 1% increase over the prior year.

Fiscal third quarter 2012 service revenues were $1.2 billion, an increase of 15% 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 17% over the prior year to $1.0 billion. International transaction revenues, which are driven by cross-border activity, grew 13% over the prior year to $748 million. Other revenues, which include the Visa Europe licensing fee, were $175 million, a 7% increase over the prior year. Client incentives, which are a contra revenue item, were $614 million and represent 19% of gross revenues.

The Company recorded a $4.1 billion pre-tax provision, or $2.9 billion on an after-tax basis, in the fiscal third quarter of 2012. This represents the Company’s financial portion in the settlement of the Multi-District Litigation case.

Excluding the litigation provision, total operating expenses increased 10% to $1.1 billion during the fiscal third quarter, primarily due to higher personnel expense and professional fees associated with investments in technology projects to support our growth initiatives.

Cash, cash equivalents, restricted cash, and available-for-sale investment securities were $9.4 billion at June 30, 2012.

Excluding the litigation provision and the related tax benefit, the Company’s adjusted effective tax rate was 29.2% for the quarter ended June 30, 2012. The Company’s adjusted effective tax rate is a non-GAAP financial measure that is reconciled to its most directly comparable GAAP measure in the accompanying financial tables.

 

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Notable Events:

During the three months ended June 30, 2012, the Company repurchased approximately 4.0 million class A common shares, at an average price of $115.51 per share, for a total cost of $461 million.

As announced on July 13, 2012, the Company, MasterCard and U.S. financial institution defendants signed a memorandum of understanding to enter into a settlement agreement to resolve the Class Plaintiffs’ claims in the Multi-District Litigation case, and announced an agreement in principle to settle with the individual plaintiffs whose claims were consolidated into the case for pre-trial purposes. The proposed settlement payments for both the Class and individual claims would be approximately $6.6 billion, of which Visa’s share would represent approximately $4.4 billion. Visa’s share will be paid from the litigation escrow account established pursuant to the Company’s Retrospective Responsibility Plan.

As announced on July 19, 2012, 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 September 4, 2012, to all holders of record of the Company’s class A, class B and class C common stock as of August 17, 2012.

The Company’s Board of Directors has authorized a new $1 billion class A share repurchase program. The authorization will be in place through July 2013, and is subject to further change at the discretion of the Board.

On July 24, 2012, the Company deposited $150 million into the litigation escrow account previously established under its Retrospective Responsibility Plan. Under the terms of the plan, when the Company funds the litigation escrow account, the value of the Company’s class B shares – which are held by U.S. financial institutions and their affiliates and successors – is correspondingly adjusted via a reduction in the class B shareholders’ as-converted share count. The $150 million deposit by the Company reduced the number of common shares outstanding on an as-converted basis from 104,452,843 to 103,257,583. The funding calculations were conducted in accordance with the Company’s certificate of incorporation using the volume-weighted average price over the 3-day pricing period from July 19, 2012, through July 23, 2012. As a result of the deposit, the conversion rate applicable to the Company’s class B common stock has decreased from 0.4254 to 0.4206 as of July 24, 2012.

 

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Financial Outlook:

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

 

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Adjusted annual diluted class A common stock earnings per share growth in the low twenties*.

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

 

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Annual net revenue growth in the low double digits;

 

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Client incentives as a percent of gross revenues: 17% to 18% range;

 

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Marketing expenses: Under $1 billion;

 

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Adjusted annual operating margin of about 60%*;

 

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Adjusted tax rate: 33% to 34% range*;

 

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Capital expenditures $350 million to $400 million range; and

 

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Annual free cash flow greater than $4 billion.

*Financial Outlook excludes (i) the impact of the litigation provision and related tax benefit recorded in Q3 2012; and (ii) a non-cash benefit related to the remeasurement of deferred tax liabilities recorded in the tax provision during Q2 2012. These deferred tax liabilities are primarily associated with indefinite-lived intangible assets recorded as part of Visa’s October 2007 reorganization. Including the net impact of the litigation provision and remeasurement of deferred tax liabilities, the annual GAAP tax rate is expected to be between 30 – 31%.

Fiscal Third 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.

 

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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,” “subject to,” and similar references to the future. Examples of such forward-looking statements include, but are not limited to, statements we make about the settlement of the multi-district interchange litigation 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:

 

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the impact of new laws, regulations and marketplace barriers, including:

 

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rules capping debit interchange reimbursement fees promulgated under the U.S. Wall Street Reform and Consumer Protection Act, or the Reform Act;

 

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rules under the Reform Act expanding issuers’ and merchants’ choice among debit payment networks;

 

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U.S. government and other parties’ reactions to the changes we have made to our business in response to the Reform Act;

 

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increased regulation outside the United States and in other product categories; and

 

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rules about consumer privacy and data use and security;

 

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developments in current or future litigation or government enforcement, including interchange, antitrust and tax disputes, and also including our failure to satisfy the conditions necessary to make the multi-district litigation settlements effective;

 

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economic factors, such as:

 

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an increase or spread of the current European crisis involving sovereign debt and the euro;

 

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other global economic, political and health conditions;

 

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cross-border activity and currency exchange rates; and

 

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material changes in our clients’ performance compared to our estimates;

 

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industry developments, such as competitive pressure, rapid technological developments, and disintermediation from the payments value stream;

 

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system developments, such as:

 

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disruption of our transaction processing systems or the inability to process transactions efficiently;

 

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account data breaches or increased fraudulent or other illegal activities involving our cards; and

 

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issues arising at Visa Europe, including failure to maintain interoperability between our systems;

 

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costs arising if Visa Europe were to exercise its right to require us to acquire all of its outstanding stock;

 

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loss of organizational effectiveness or key employees;

 

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failure to integrate recent acquisitions successfully or to effectively launch new products and businesses;

 

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changes in accounting principles or treatments; and

the other factors discussed under the heading “Risk Factors” in our most recent Annual Report on Form 10-K on file with the U.S. Securities and Exchange Commission. You should not place undue reliance on such statements. Unless required to do so by law, we do not intend to update or revise any forward-looking statement, because of new information or future developments or otherwise.

Contacts:

Investor Relations: Jack Carsky or Victoria Hyde-Dunn, 415-932-2213, ir@visa.com

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

 

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VISA INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

 

		Three Months Ended June 30,								Nine Months Ended June 30,
		2012				2011				2012				2011
		(in millions, except per share data)
Operating Revenues
Service revenues		$	1,216			$	1,055			$	3,608			$	3,156
Data processing revenues			1,040				886				2,913				2,553
International transaction revenues			748				662				2,229				1,916
Other revenues			175				167				532				484
Client incentives			(614	)			(448	)			(1,592	)			(1,304	)
Total operating revenues			2,565				2,322				7,690				6,805
Operating Expenses
Personnel			435				363				1,255				1,071
Network and processing			102				91				303				251
Marketing			242				251				602				631
Professional fees			99				84				251				222
Depreciation and amortization			84				74				244				211
General and administrative			112				114				320				319
Litigation provision			4,098				—				4,098				6
Total operating expenses			5,172				977				7,073				2,711
Operating (loss) income			(2,607	)			1,345				617				4,094
Other Income (Expense)
Interest expense			(11	)			(11	)			(28	)			(19	)
Investment income, net			12				88				31				107
Other			(1	)			121				(1	)			120
Total other income			—				198				2				208
(Loss) Income before income taxes			(2,607	)			1,543				619				4,302
Income tax (benefit) provision			(768	)			539				139				1,534
Net (loss) income including non-controlling interest			(1,839	)			1,004				480				2,768
Loss attributable to non-controlling interest			—				1				2				2
Net (loss) income attributable to Visa Inc.		$	(1,839	)		$	1,005			$	482			$	2,770
Basic (loss) earnings per share
Class A common stock		$	(2.74	)		$	1.43			$	0.71			$	3.90
Class B common stock		$	(1.16	)		$	0.70			$	0.32			$	1.97
Class C common stock		$	(2.74	)		$	1.43			$	0.71			$	3.90
Basic weighted-average shares outstanding
Class A common stock			525				521				523				506
Class B common stock			245				245				245				245
Class C common stock			40				59				43				78
Diluted (loss) earnings per share
Class A common stock		$	(2.74	)		$	1.43			$	0.71			$	3.89
Class B common stock		$	(1.16	)		$	0.70			$	0.32			$	1.96
Class C common stock		$	(2.74	)		$	1.43			$	0.71			$	3.89
Diluted weighted-average shares outstanding
Class A common stock			672				704				681				712
Class B common stock			245				245				245				245
Class C common stock			40				59				43				78

 

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VISA INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

		June 30, 2012				September 30, 2011
		(in millions, except par value data)
Assets
Cash and cash equivalents		$	1,558			$	2,127
Restricted cash - litigation escrow			4,282				2,857
Investment securities
Trading			63				57
Available-for-sale			682				1,214
Settlement receivable			443				412
Accounts receivable			793				560
Customer collateral			886				931
Current portion of client incentives			224				278
Deferred tax assets			1,645				489
Prepaid expenses and other current assets			323				265
Total current assets			10,899				9,190
Investment securities, available-for-sale			2,923				711
Client incentives			97				85
Property, equipment and technology, net			1,581				1,541
Other assets			123				129
Intangible assets, net			11,437				11,436
Goodwill			11,681				11,668
Total assets		$	38,741			$	34,760
Liabilities
Accounts payable		$	111			$	169
Settlement payable			747				449
Customer collateral			886				931
Accrued compensation and benefits			389				387
Client incentives			763				528
Accrued liabilities			574				562
Accrued litigation			4,384				425
Total current liabilities			7,854				3,451
Deferred tax liabilities			3,944				4,205
Other liabilities			785				667
Total liabilities			12,583				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, 527 and 520 shares issued and outstanding at June 30, 2012, and September 30, 2011, respectively			—				—
Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at June 30, 2012 and September 30, 2011			—				—
Class C common stock, $0.0001 par value, 1,097 shares authorized, 38 and 47 shares issued and outstanding at June 30, 2012, and September 30, 2011, respectively			—				—
Additional paid-in capital			19,922				19,907
Accumulated income			6,411				6,706
Accumulated other comprehensive income (loss), net
Investment securities, available-for-sale			1				—
Defined benefit pension and other postretirement plans			(189	)			(186	)
Derivative instruments classified as cash flow hedges			25				18
Foreign currency translation adjustments			(12	)			(8	)
Total accumulated other comprehensive loss, net			(175	)			(176	)
Total equity			26,158				26,437
Total liabilities and equity		$	38,741			$	34,760

 

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VISA INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

		Nine Months Ended June 30,
		2012				2011
		(in millions)
Operating Activities
Net income including non-controlling interest		$	480			$	2,768
Adjustments to reconcile net income including non-controlling interest to net cash provided by (used in) operating activities:
Amortization of client incentives			1,592				1,304
Fair Value adjustment for the Visa Europe Put Option			—				(122	)
Share-based compensation			112				122
Excess tax benefit for share-based compensation			(42	)			(12	)
Depreciation and amortization of intangible assets and property, equipment and technology			244				211
Litigation provision and accretion			4,099				15
Deferred income taxes			(1,427	)			169
Other			(34	)			(107	)
Change in operating assets and liabilities:
Trading securities			(6	)			(5	)
Settlement receivable			(31	)			3
Accounts receivable			(231	)			(70	)
Client incentives			(1,315	)			(1,144	)
Other assets			(35	)			30
Accounts payable			(58	)			(47	)
Settlement payable			298				52
Accrued compensation and benefits			—				(37	)
Accrued and other liabilities			134				74
Accrued litigation			(140	)			(200	)
Net cash provided by operating activities			3,640				3,004
Investing Activities
Purchases of property, equipment and technology			(235	)			(236	)
Proceeds from disposal of property, equipment and technology			2				—
Purchases of intangible assets			(35	)			—
Investment securities, available-for-sale:
Purchases			(3,326	)			(50	)
Proceeds from sales and maturities			1,640				35
Purchases of / contributions to other investments			(9	)			(10	)
Proceeds / distributions from other investments			23				104
Acquisitions, net of cash received of $17 and $22, respectively			(3	)			(268	)
Net cash used in investing activities			(1,943	)			(425	)
Financing Activities
Repurchase of class A common stock			(536	)			(1,600	)
Dividends paid			(448	)			(320	)
Deposits into litigation escrow account—retrospective responsibility plan			(1,565	)			(1,200	)
Payment from litigation escrow account—retrospective responsibility plan			140				210
Cash proceeds from exercise of stock options			111				63
Excess tax benefit for share-based compensation			42				12
Principal payments on debt			—				(9	)
Principal payments on capital lease obligations			(6	)			(10	)
Net cash used in financing activities			(2,262	)			(2,854	)
Effect of exchange rate changes on cash and cash equivalents			(4	)			8
Decrease in cash and cash equivalents			(569	)			(267	)
Cash and cash equivalents at beginning of year			2,127				3,867
Cash and cash equivalents at end of period		$	1,558			$	3,600
Supplemental Disclosure of Cash Flow Information
Income taxes paid, net of refunds		$	1,575			$	1,251
Amounts included in accounts payable and accrued and other liabilities related to purchases of intangible assets and property, equipment and technology		$	85			$	17
Interest payment on debt		$	—			$	2

 

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VISA INC.

FISCAL 2011 AND 2012 QUARTERLY RESULTS OF OPERATIONS

(UNAUDITED)

 

		Fiscal 2011 Quarter Ended								Fiscal 2012 Quarter Ended
		June 30, 2011				September 30, 2011				December 31, 2011				March 31, 2012				June 30, 2012
		(in millions)
Operating Revenues
Service revenues		$	1,055			$	1,105			$	1,151			$	1,241			$	1,216
Data processing revenues			886				925				951				922				1,040
International transaction revenues			662				758				748				733				748
Other revenues			167				171				178				179				175
Client incentives			(448	)			(576	)			(481	)			(497	)			(614	)
Total operating revenues			2,322				2,383				2,547				2,578				2,565
Operating Expenses
Personnel			363				388				389				431				435
Network and processing			91				106				98				103				102
Marketing			251				239				190				170				242
Professional fees			84				115				70				82				99
Depreciation and amortization			74				77				80				80				84
General and administrative			114				95				102				106				112
Litigation provision			—				1				—				—				4,098
Total operating expenses			977				1,021				929				972				5,172
Operating income (loss)			1,345				1,362				1,618				1,606				(2,607	)
Other Income (Expense)
Interest expense			(11	)			(13	)			(10	)			(7	)			(11	)
Investment income, net			88				1				10				9				12
Other			121				4				(1	)			1				(1	)
Total other income (expense)			198				(8	)			(1	)			3				—
Income (loss) before income taxes			1,543				1,354				1,617				1,609				(2,607	)
Income tax provision (benefit)			539				476				590				317				(768	)
Net income (loss) including non-controlling interest			1,004				878				1,027				1,292				(1,839	)
Loss attributable to non-controlling interest			1				2				2				—				—
Net income (loss) attributable to Visa Inc.		$	1,005			$	880			$	1,029			$	1,292			$	(1,839	)

 

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VISA INC.

Reconciliation of Non-GAAP Financial Results

US$ in millions, except margin ratio and per share data

During the third quarter of fiscal 2012, we recorded a provision related to litigation subject to the retrospective responsibility plan of $4.1 billion and related tax benefits (“litigation provision adjustment”). Additionally, our reported financial results for the nine months ended June 30, 2012 benefited from a one-time non-cash adjustment of $208 million related to the remeasurement of our net deferred tax liabilities (“deferred tax adjustment”) recorded in our income tax provision during the three months ended March 31, 2012. The deferred tax adjustment has no cash impact to us.

During the third quarter of fiscal 2011, we recorded a decrease of $122 million in the fair value of the Visa Europe put option (“revaluation of the Visa Europe put option”), which resulted in the recognition of non-cash, non-operating other income in our financial results. These amounts are not subject to income tax and therefore have no impact on our reported income tax provision. We believe the presentation of adjusted financial results excluding the litigation provision adjustment, the deferred tax adjustment, and the revaluation of the Visa Europe put option provides a clearer understanding of our operating performance for the respective periods.

 

		Three Months Ended June 30,
		Operating expenses								Operating margin(1)								Net (loss) income attributable to Visa Inc.								Diluted (loss) earnings per share(2)
		2012				2011				2012				2011				2012				2011				2012				2011
As reported		$	5,172			$	977				(102	)%			58	%		$	(1,839	)		$	1,005			$	(2.74	)		$	1.43
Litigation provision			(4,098	)			—				NM				—				2,894	(3)			—				4.30				—
Revaluation of Visa Europe put option			—				—				—				—				—				(122	)			—				(0.17	)
Adjusted		$	1,074			$	977				58	%			58	%		$	1,055			$	883			$	1.56			$	1.26
Diluted weighted-average shares outstanding(4)																											675				704
		Nine Months Ended June 30,
		Operating expenses								Operating margin(1)								Net income attributable to Visa Inc.								Diluted earnings per  share(2)
		2012				2011				2012				2011				2012				2011				2012				2011
As reported		$	7,073			$	2,711				8	%			60	%		$	482			$	2,770			$	0.71			$	3.89
Litigation provision			(4,098	)			—				53	%			—				2,894	(3)			—				4.25				—
Impact of deferred tax adjustment			—				—				—				—				(208	)			—				(0.30	)			—
Revaluation of Visa Europe put option			—				—				—				—				—				(122	)			—				(0.17	)
Adjusted		$	2,975			$	2,711				61	%			60	%		$	3,168			$	2,648			$	4.66			$	3.72
Diluted weighted-average shares outstanding (as reported)																											681				712

 

(1)	Operating margin is calculated as operating (loss) income divided by total operating revenues.

(2)	Diluted (loss) earnings per share figures calculated based on whole numbers, not rounded numbers.

(3)	The litigation provision adjustment to net (loss) income attributable to Visa Inc. is shown net of tax. The tax impact is determined by applying applicable federal and state tax rates to the litigation provision and applying related reserves for uncertain tax positions.

(4)	For the three months ended June 30, 2012, the computation of adjusted diluted earnings per share included the effect of 3 million incremental dilutive shares, which were excluded from the computation of reported diluted loss per share as they are considered anti-dilutive when applied to a net loss.

 

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VISA INC.

Reconciliation of Non-GAAP Financial Results

US$ in millions, except effective tax rate

The following table presents our adjusted effective income tax rates for the three and nine months ended June 30, 2012, which excludes the impact of the covered litigation provision of $4.1 billion recorded in the third quarter of fiscal 2012, and the one-time, non-cash benefit, of $208 million, resulting from the remeasurement of our net deferred tax liabilities in the second quarter of fiscal 2012. We believe the presentation of our adjusted effective income tax rates provides a clearer understanding of our operating performance for these periods. We believe the covered litigation provision and the one-time non-cash adjustment to remeasure our deferred taxes recorded in our effective income tax rates are not indicative of our financial performance in the current or future periods.

 

		Three Months Ended June, 30, 2012				Nine Months Ended June, 30, 2012
		Effective tax rate(1)
As reported			29.5	%			22.4	%
Litigation Provision			(0.3	%)			6.1	%
Remeasurement of deferred tax liabilities			—				4.4	%
Adjusted			29.2	%			32.9	%

 

(1)	Effective income tax rate calculated based on whole numbers, not rounded numbers.

 

11

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Operational Performance Data

The tables below provide information regarding the available operational results for the 3 months ended June 30, 2012, as well as the prior four quarterly reporting periods and the 12 months ended June 30, 2012 and 2011, 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, 2012
		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		$	412				8.7	%			11.1	%		$	277				11.4	%			12.9	%			2,988			$	135				3.6	%			7.6	%			651
Canada			62				3.5	%			8.1	%			57				3.7	%			8.3	%			513				5				1.7	%			6.2	%			12
CEMEA			232				13.4	%			22.4	%			45				29.8	%			40.7	%			745				187				10.1	%			18.7	%			1,083
LAC			246				0.7	%			16.5	%			88				3.0	%			19.8	%			2,066				158				-0.6	%			14.8	%			964
US			618				-0.9	%			-0.9	%			512				-1.1	%			-1.1	%			10,036				106				0.1	%			0.1	%			861
Visa Inc.			1,570				3.9	%			8.1	%			979				4.0	%			6.3	%			16,349				591				3.7	%			11.2	%			3,570
Visa Credit Programs
US		$	256				9.3	%			9.3	%		$	246				9.8	%			9.8	%			2,880			$	11				-0.6	%			-0.6	%			15
Rest of World			426				6.6	%			11.1	%			379				8.8	%			13.2	%			4,426				48				-8.2	%			-2.7	%			191
Visa Inc.			682				7.6	%			10.4	%			624				9.2	%			11.8	%			7,306				58				-6.9	%			-2.3	%			206
Visa Debit Programs
US		$	362				-7.1	%			-7.1	%		$	266				-9.4	%			-9.4	%			7,157			$	95				0.2	%			0.2	%			846
Rest of World			526				7.8	%			18.0	%			88				17.1	%			28.5	%			1,887				438				6.1	%			16.1	%			2,518
Visa Inc.			888				1.2	%			6.3	%			355				-4.0	%			-2.3	%			9,044				533				5.0	%			12.9	%			3,364

 

		For the 3 Months Ended March 31, 2012
		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		$	408				16.0	%			14.3	%		$	269				16.6	%			14.0	%			2,874			$	139				14.7	%			14.8	%			637				530				631
Canada			56				6.8	%			8.8	%			51				6.9	%			8.9	%			463				5				5.6	%			7.6	%			10				24				32
CEMEA			211				19.1	%			24.1	%			40				33.3	%			39.7	%			665				171				16.1	%			20.9	%			1,015				250				251
LAC			251				13.2	%			18.9	%			90				16.9	%			22.8	%			2,016				161				11.2	%			16.8	%			953				391				420
US			615				6.9	%			6.9	%			508				6.5	%			6.5	%			10,115				108				8.8	%			8.8	%			880				536				691
Visa Inc.			1,541				11.8	%			12.9	%			958				11.1	%			11.2	%			16,134				584				12.9	%			15.8	%			3,495				1,732				2,025
Visa Credit Programs
US		$	234				11.8	%			11.8	%		$	223				12.1	%			12.1	%			2,599			$	10				5.5	%			5.5	%			15				205				265
Rest of World			411				13.1	%			12.9	%			365				14.9	%			14.4	%			4,229				47				0.8	%			2.4	%			182				453				513
Visa Inc.			645				12.6	%			12.5	%			588				13.8	%			13.5	%			6,829				57				1.6	%			2.9	%			197				658				778
Visa Debit Programs
US		$	382				4.0	%			4.0	%		$	284				2.4	%			2.4	%			7,516			$	97				9.1	%			9.1	%			865				331				426
Rest of World			515				17.1	%			21.0	%			85				25.9	%			29.5	%			1,790				429				15.5	%			19.4	%			2,433				742				820
Visa Inc.			897				11.2	%			13.1	%			370				7.0	%			7.6	%			9,306				527				14.3	%			17.4	%			3,299				1,074				1,246

 

12

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Operational Performance 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)				Accounts (millions)				Cards (millions)
All Visa Credit & Debit
Asia Pacific		$	409				13.2	%			11.5	%		$	276				15.1	%			12.0	%			2,948			$	133				9.5	%			10.3	%			621				519				613
Canada			60				4.1	%			5.6	%			56				4.7	%			6.2	%			500				5				-2.2	%			-0.8	%			10				27				36
CEMEA			221				20.1	%			25.0	%			39				29.1	%			36.6	%			643				182				18.3	%			22.8	%			1,066				241				243
LAC			263				13.0	%			19.1	%			93				14.7	%			20.7	%			2,068				169				12.1	%			18.3	%			998				383				414
US			635				7.4	%			7.4	%			529				7.3	%			7.3	%			10,608				106				7.9	%			7.9	%			879				552				704
Visa Inc.			1,588				11.3	%			12.4	%			993				10.6	%			10.6	%			16,768				595				12.4	%			15.5	%			3,574				1,722				2,011
Visa Credit Programs
US		$	248				9.7	%			9.7	%		$	237				9.7	%			9.7	%			2,808			$	11				10.4	%			10.4	%			16				203				263
Rest of World			430				12.8	%			12.2	%			379				13.5	%			12.7	%			4,366				51				7.7	%			9.1	%			189				456				516
Visa Inc.			678				11.6	%			11.3	%			616				12.0	%			11.5	%			7,174				63				8.2	%			9.3	%			205				659				779
Visa Debit Programs
US		$	387				5.9	%			5.9	%		$	292				5.4	%			5.4	%			7,800			$	95				7.6	%			7.6	%			863				349				441
Rest of World			523				15.1	%			19.3	%			85				20.3	%			24.4	%			1,793				438				14.1	%			18.4	%			2,506				714				791
Visa Inc.			910				11.0	%			13.2	%			377				8.4	%			9.1	%			9,593				533				12.9	%			16.3	%			3,369				1,063				1,232

 

		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				23.1	%			13.9	%		$	272				28.2	%			17.4	%			2,888			$	130				13.6	%			7.1	%			626				509				602
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				9.1	%			9.1	%			517				9.1	%			9.1	%			10,487				109				9.0	%			9.0	%			907				509				655
Visa Inc.			1,550				17.4	%			13.7	%			971				17.0	%			13.4	%			16,337				579				18.0	%			14.2	%			3,470				1,657				1,934
Visa Credit Programs
US		$	241				11.1	%			11.1	%		$	229				10.3	%			10.3	%			2,664			$	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	%			6,883				64				21.2	%			15.8	%			200				654				774
Visa Debit Programs
US		$	385				7.9	%			7.9	%		$	288				8.2	%			8.2	%			7,822			$	97				7.0	%			7.0	%			889				308				394
Rest of World			504				23.2	%			18.2	%			85				39.6	%			32.2	%			1,632				419				20.4	%			15.7	%			2,381				695				766
Visa Inc.			888				16.1	%			13.5	%			373				14.0	%			12.8	%			9,454				515				17.6	%			14.0	%			3,270				1,003				1,160

 

		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	%			13.5	%		$	248				25.5	%			15.1	%			2,758			$	131				17.6	%			10.7	%			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	%			26.9	%			35				41.6	%			35.7	%			532				170				30.5	%			25.3	%			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			624				10.0	%			10.0	%			518				10.4	%			10.4	%			10,417				106				8.2	%			8.2	%			902				499				654
Visa Inc.			1,512				19.1	%			14.6	%			941				17.4	%			13.4	%			15,997				570				22.2	%			16.6	%			3,415				1,615				1,906
Visa Credit Programs
US		$	235				9.5	%			9.5	%		$	224				9.9	%			9.9	%			2,570			$	11				2.1	%			2.1	%			17				199				258
Rest of World			400				25.0	%			15.6	%			348				25.3	%			15.8	%			4,042				52				22.6	%			14.4	%			179				448				509
Visa Inc.			634				18.8	%			13.2	%			572				18.8	%			13.3	%			6,612				62				18.6	%			12.0	%			196				647				766
Visa Debit Programs
US		$	389				10.3	%			10.3	%		$	294				10.8	%			10.8	%			7,847			$	95				8.9	%			8.9	%			885				301				397
Rest of World			488				27.8	%			20.6	%			75				36.6	%			27.4	%			1,538				413				26.3	%			19.5	%			2,334				667				744
Visa Inc.			877				19.4	%			15.6	%			369				15.2	%			13.6	%			9,385				508				22.6	%			17.2	%			3,219				968				1,140

 

13

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Operational Performance Data

 

 

 

		For the 12 Months Ended June 30, 2012
		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		$	1,631				15.0	%			12.6	%		$	1,094				17.5	%			14.0	%			11,698			$	537				10.2	%			9.9	%			2,534
Canada			239				7.1	%			7.5	%			219				7.3	%			7.7	%			1,964				20				4.4	%			4.9	%			42
CEMEA			876				20.1	%			24.6	%			161				32.5	%			38.4	%			2,623				715				17.6	%			21.9	%			4,162
LAC			1,009				11.8	%			17.8	%			360				15.4	%			21.8	%			8,056				648				9.9	%			15.7	%			3,844
US			2,495				5.5	%			5.5	%			2,066				5.3	%			5.3	%			41,247				429				6.3	%			6.3	%			3,527
Visa Inc.			6,250				10.8	%			11.7	%			3,900				10.5	%			10.3	%			65,588				2,350				11.5	%			14.1	%			14,109
Visa Credit Programs
US		$	980				10.4	%			10.4	%		$	935				10.4	%			10.4	%			10,952			$	45				10.3	%			10.3	%			64
Rest of World			1,688				13.8	%			12.9	%			1,491				15.2	%			14.0	%			17,239				197				4.4	%			5.4	%			744
Visa Inc.			2,668				12.6	%			12.0	%			2,426				13.3	%			12.6	%			28,192				242				5.5	%			6.3	%			808
Visa Debit Programs
US		$	1,515				2.5	%			2.5	%		$	1,131				1.4	%			1.4	%			30,295			$	384				5.9	%			5.9	%			3,463
Rest of World			2,067				15.4	%			19.1	%			343				25.1	%			28.6	%			7,102				1,724				13.7	%			17.4	%			9,838
Visa Inc.			3,582				9.6	%			11.5	%			1,474				6.1	%			6.6	%			37,396				2,108				12.2	%			15.1	%			13,302

 

		For the 12 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		$	1,419				17.8	%			11.4	%		$	931				20.6	%			13.6	%			10,836			$	488				12.7	%			7.3	%			2,363				495				588
Canada			224				12.1	%			7.5	%			204				11.8	%			7.1	%			1,810				20				16.1	%			11.3	%			38				25				34
CEMEA			729				26.8	%			25.4	%			122				33.9	%			31.7	%			1,911				607				25.4	%			24.2	%			3,714				230				232
LAC			902				25.6	%			20.6	%			312				30.0	%			25.8	%			7,013				590				23.4	%			18.0	%			3,558				365				398
US			2,365				11.2	%			11.2	%			1,962				11.9	%			11.9	%			39,763				404				7.8	%			7.8	%			3,470				499				654
Visa Inc.			5,639				16.9	%			14.1	%			3,531				16.2	%			13.7	%			61,332				2,108				18.0	%			14.7	%			13,143				1,615				1,906
Visa Credit Programs
US		$	887				6.4	%			6.4	%		$	846				8.3	%			8.3	%			9,819			$	41				-21.3	%			-21.3	%			65				199				258
Rest of World			1,483				19.8	%			13.8	%			1,295				19.8	%			13.7	%			15,710				188				20.2	%			14.7	%			665				448				509
Visa Inc.			2,370				14.4	%			10.9	%			2,141				15.0	%			11.5	%			25,529				229				9.9	%			6.0	%			730				647				766
Visa Debit Programs
US		$	1,478				14.3	%			14.3	%		$	1,115				14.9	%			14.9	%			29,943			$	363				12.4	%			12.4	%			3,405				301				397
Rest of World			1,791				22.7	%			18.5	%			275				34.0	%			28.7	%			5,859				1,516				20.8	%			16.8	%			9,008				667				744
Visa Inc.			3,269				18.7	%			16.5	%			1,390				18.2	%			17.3	%			35,803				1,879				19.1	%			15.9	%			12,413				968				1,140

 

14

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Operational Performance Data

 

 

 

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.

 

15

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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
Jun 30, 2012			10	%			14	%
Mar 31, 2012			15	%			16	%
Dec 31, 2011			12	%			13	%
Sep 30, 2011			19	%			15	%
Jun 30, 2011			20	%			14	%
12 Months Ended
Jun 30, 2012			14	%			15	%
Jun 30, 2011			17	%			14	%

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, 2012			13,113				1	%
Mar 31, 2012			13,038				8	%
Dec 31, 2011			13,600				8	%
Sep 30, 2011			13,263				9	%
Jun 30, 2011			13,038				11	%
12 Months Ended
Jun 30, 2012			53,014				7	%
Jun 30, 2011			49,778				14	%

 

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Operational Performance Data

 

 

 

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, 2012			1,303				25	%
Mar 31, 2012			1,281				26	%
Dec 31, 2011			1,235				25	%
Sep 30, 2011			1,088				31	%
Jun 30, 2011			1,045				38	%
12 Months Ended
Jun 30, 2012			4,907				27	%
Jun 30, 2011			3,879				38	%

 

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