Exhibit 99.1

 

 

 

Visa Inc. Reports Fiscal First Quarter 2014 Net Income of $1.4 billion or $2.20 per diluted share

 

 

 

•

Broad-based net revenue growth of 11%

 

•

Company repurchased 5.5 million shares during the quarter for $1.1 billion and has $4.2 billion in remaining authorization

Foster City, CA, January 30, 2014 – Visa Inc. (NYSE: V) today announced financial results for the Company’s fiscal first quarter 2014. Net income for the fiscal first quarter was $1.4 billion or $2.20 per share, an increase of 9% and 14%, respectively, over the prior year results. All references to earnings per share assume fully-diluted class A share count unless otherwise noted.

Net operating revenue in the fiscal first quarter of 2014 was $3.2 billion, an increase of 11% over the prior year, driven by strong growth in service revenues, data processing revenues and international transaction revenues. The strengthening of the U.S. dollar impacted net operating revenues by 2 percentage points of negative growth during the quarter.

“Visa delivered a strong fiscal first quarter, posting solid revenue, net income and earnings growth. We continue to focus on embracing new partners and new technology which will make our network the one of choice. We also continue to build services for issuers, acquirers and merchants to make our network a valuable asset for our clients,” said Charlie Scharf, Chief Executive Officer of Visa Inc.

“The recent series of data compromises are terribly unfortunate for everyone involved. However, the established and well understood rules that govern traditional networks coupled with the cooperation between merchants, financial institutions, and the networks have minimized the level of the monetary losses. But these incidents remind us of the need for all of us to continue to work together to secure payments from criminals. Visa is committed to ensuring our network operates at the highest level of security available and will continue to move the industry towards the adoption of new safeguards including EMV chip and tokenization. We also will work with all participants to look beyond these technologies,” added Scharf.

Fiscal First Quarter 2014 Financial Highlights:

Payments volume growth, on a constant dollar basis, for the three months ended September 30, 2013, on which fiscal first quarter service revenue is recognized, was 13% over the prior year at $1.1 trillion.

Payments volume growth, on a constant dollar basis, for the three months ended December 31, 2013, was 11% over the prior year at $1.2 trillion.

Cross-border volume growth, on a constant dollar basis, was 12% for the three months ended December 31, 2013.

Total processed transactions, which represent transactions processed by VisaNet, for the three months ended December 31, 2013, were 16.0 billion, a 13% increase over the prior year.

 

1

---

Fiscal first quarter 2014 service revenues were $1.4 billion, an increase of 9% over the prior year, and are recognized based on payments volume in the prior quarter. All other revenue categories are recognized based on current quarter activity. Data processing revenues rose 13% over the prior year to $1.3 billion. International transaction revenues, which are driven by cross-border volume, grew 11% over the prior year to $891 million. Other revenues, which include the Visa Europe licensing fee, were $180 million, flat over the prior year. Client incentives, which are a contra revenue item, were $599 million and represent 16.0% of gross revenues.

Total operating expenses were $1.1 billion for the quarter, a 3% increase over the prior year, primarily due to network and processing fees, personnel, and depreciation and amortization associated with investments in technology projects to support our global growth initiatives.

The effective tax rate was 32.4% for the quarter ended December 31, 2013.

Cash, cash equivalents, and available-for-sale investment securities were $7.0 billion at December 31, 2013.

The weighted-average number of diluted shares of class A common stock outstanding was 639 million for the quarter ended December 31, 2013.

Notable Events:

During the three months ended December 31, 2013, the Company repurchased 5.5 million shares of class A common stock, at an average price of $199.56 per share, using $1.1 billion of cash on hand. At December 31, 2013, the Company had $4.2 billion of remaining funds, authorized by the board of directors, available for share repurchase under the current program.

On January 29, 2014, the board of directors declared a quarterly cash dividend of $0.40 per share of class A common stock (determined in the case of class B and class C common stock on an as-converted basis) payable on March 4, 2014, to all holders of record of the Company’s class A, class B and class C common stock as of February 14, 2014.

In addition, On January 29, 2014, the Company held its 2014 annual meeting of stockholders during which holders of the Company’s class A common stock at the close of business on December 3, 2013, voted on the three proposals enumerated in the Company’s proxy statement. All of management’s proposals were approved.

 

2

---

Financial Outlook:

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

 

•

Annual net revenue growth: Low double-digits on a constant dollar basis, with an expectation of two percentage points of negative foreign currency impact;

 

•

Client incentives as a percent of gross revenues: 16.5% to 17.5% range;

 

•

Annual operating margin: Low 60s;

 

•

Annual diluted class A common stock earnings per share growth: Mid to high teens; and

 

•

Annual free cash flow: About $5 billion.

Fiscal First Quarter 2014 Earnings Results Conference Call Details:

Visa’s executive management team will host a live audio webcast beginning at 8:30 a.m. Eastern Time (5:30 a.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 47,000 transaction messages a second, with fraud protection for consumers and assured payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa’s innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, pay ahead of time with prepaid or pay later with credit products. For more information, visit corporate.visa.com and @VisaNews.

Forward-Looking Statements:

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

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

 

•

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

 

•

rules capping debit interchange reimbursement rates and expanding financial institutions’ and merchants’ choices among debit payment networks promulgated under the Dodd-Frank Wall Street Reform and Consumer Protection Act;

 

3

---

•

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

 

•

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

 

•

increased regulation on consumer privacy, data use and security;

 

•

developments in litigation and government enforcement, including those affecting interchange reimbursement fees, antitrust and tax;

 

•

new lawsuits, investigations or proceedings, or changes to our potential exposure in connection with pending lawsuits, investigations or proceedings;

 

•

economic factors, such as:

 

•

economic fragility in the Eurozone and in the United States;

 

•

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

 

•

material changes in cross-border activity, foreign exchange controls and fluctuations in currency exchange rates; and

 

•

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

 

•

industry developments, such as competitive pressure, rapid technological developments, and disintermediation from our payments network;

 

•

system developments, such as:

 

•

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

 

•

account data breaches or increased fraudulent or other illegal activities involving Visa-branded cards or payment products; and

 

•

failure to maintain systems interoperability with Visa Europe;

 

•

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

 

•

the loss of organizational effectiveness or key employees;

 

•

the failure to integrate acquisitions successfully or to effectively develop new products and businesses;

 

•

natural disasters, terrorist attacks, military or political conflicts, and public health emergencies; and

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

Contacts:

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

Media Relations: Paul Cohen, 650-432-2990, globalmedia@visa.com

 

4

---

VISA INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

		December 31, 2013				September 30, 2013
		(in millions, except par value data)
Assets
Cash and cash equivalents		$	2,121			$	2,186
Restricted cash — litigation escrow			49				49
Investment securities:
Trading			89				75
Available-for-sale			1,880				1,994
Income tax receivable			20				142
Settlement receivable			888				799
Accounts receivable			840				761
Customer collateral			886				866
Current portion of client incentives			235				282
Deferred tax assets			466				481
Prepaid expenses and other current assets			291				187
Total current assets			7,765				7,822
Investment securities, available-for-sale			3,040				2,760
Client incentives			98				89
Property, equipment and technology, net			1,746				1,732
Other assets			584				521
Intangible assets, net			11,334				11,351
Goodwill			11,681				11,681
Total assets		$	36,248			$	35,956
Liabilities
Accounts payable		$	101			$	184
Settlement payable			1,246				1,225
Customer collateral			886				866
Accrued compensation and benefits			337				523
Client incentives			864				919
Accrued liabilities			947				613
Accrued litigation			4				5
Total current liabilities			4,385				4,335
Deferred tax liabilities			4,160				4,149
Other liabilities			689				602
Total liabilities			9,234				9,086
Equity
Preferred stock, $0.0001 par value, 25 shares authorized and none issued			—				—
Class A common stock, $0.0001 par value, 2,001,622 shares authorized, 505 and 508 shares issued and outstanding at December 31, 2013 and September 30, 2013, respectively			—				—
Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at December 31, 2013 and September 30, 2013			—				—
Class C common stock, $0.0001 par value, 1,097 shares authorized, 26 and 27 shares issued and outstanding at December 31, 2013 and September 30, 2013, respectively			—				—
Additional paid-in capital			18,702				18,875
Accumulated income			8,269				7,974
Accumulated other comprehensive income (loss), net:
Investment securities, available-for-sale			70				59
Defined benefit pension and other postretirement plans			(60	)			(60	)
Derivative instruments classified as cash flow hedges			34				23
Foreign currency translation adjustments			(1	)			(1	)
Total accumulated other comprehensive income, net			43				21
Total equity			27,014				26,870
Total liabilities and equity		$	36,248			$	35,956

 

5

---

VISA INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

 

		Three Months Ended December  31,
		2013				2012
		(in millions, except per share data)
Operating Revenues
Service revenues		$	1,419			$	1,300
Data processing revenues			1,264				1,115
International transaction revenues			891				805
Other revenues			180				179
Client incentives			(599	)			(553	)
Total operating revenues			3,155				2,846
Operating Expenses
Personnel			470				454
Marketing			186				193
Network and processing			132				110
Professional fees			75				88
Depreciation and amortization			107				92
General and administrative			108				106
Litigation provision			—				3
Total operating expenses			1,078				1,046
Operating income			2,077				1,800
Non-operating income			6				1
Income before income taxes			2,083				1,801
Income tax provision			676				508
Net income		$	1,407			$	1,293
Basic earnings per share
Class A common stock		$	2.21			$	1.94
Class B common stock		$	0.93			$	0.82
Class C common stock		$	2.21			$	1.94
Basic weighted-average shares outstanding
Class A common stock			505				531
Class B common stock			245				245
Class C common stock			27				30
Diluted earnings per share
Class A common stock		$	2.20			$	1.93
Class B common stock		$	0.93			$	0.81
Class C common stock		$	2.20			$	1.93
Diluted weighted-average shares outstanding
Class A common stock			639				669
Class B common stock			245				245
Class C common stock			27				30

 

6

---

VISA INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

		Three Months Ended December 31,
		2013				2012
		(in millions)
Operating Activities
Net income		$	1,407			$	1,293
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Amortization of client incentives			599				553
Share-based compensation			45				48
Excess tax benefit for share-based compensation			(54	)			(50	)
Depreciation and amortization of property, equipment, technology and intangible assets			107				92
Deferred income taxes			19				1,622
Other			5				12
Change in operating assets and liabilities:
Income tax receivable			122				(1,162	)
Settlement receivable			(89	)			(405	)
Accounts receivable			(79	)			(78	)
Client incentives			(616	)			(453	)
Other assets			(199	)			(228	)
Accounts payable			(80	)			1
Settlement payable			21				353
Accrued and other liabilities			334				(38	)
Accrued litigation			(1	)			(4,384	)
Net cash provided by (used in) operating activities			1,541				(2,824	)
Investing Activities
Purchases of property, equipment, technology and intangible assets			(120	)			(100	)
Investment securities, available-for-sale:
Purchases			(754	)			(1,184	)
Proceeds from sales and maturities			600				418
Purchases of / contributions to other investments			(2	)			—
Proceeds / distributions from other investments			—				1
Net cash used in investing activities			(276	)			(865	)
Financing Activities
Repurchase of class A common stock			(1,091	)			(1,253	)
Dividends paid			(254	)			(220	)
Payments from litigation escrow account—retrospective responsibility plan			—				4,383
Cash proceeds from exercise of stock options			38				70
Restricted stock and performance shares settled in cash for taxes			(77	)			(64	)
Excess tax benefit for share-based compensation			54				50
Payments for earn-out related to PlaySpan acquisition			—				(12	)
Principal payments on capital lease obligations			—				(5	)
Net cash (used in) provided by financing activities			(1,330	)			2,949
Decrease in cash and cash equivalents			(65	)			(740	)
Cash and cash equivalents at beginning of year			2,186				2,074
Cash and cash equivalents at end of period		$	2,121			$	1,334
Supplemental Disclosure
Income taxes paid, net of refunds		$	96			$	45
Non-cash accruals related to purchases of property, equipment, technology and intangible assets		$	20			$	33

 

7

---

VISA INC.

FISCAL 2014 AND 2013 QUARTERLY RESULTS OF OPERATIONS

(UNAUDITED)

 

		Fiscal 2014 Quarter Ended				Fiscal 2013 Quarter Ended
		December 31, 2013				September 30, 2013				June 30, 2013				March 31, 2013				December 31, 2012
		(in millions)
Operating Revenues
Service revenues		$	1,419			$	1,385			$	1,298			$	1,369			$	1,300
Data processing revenues			1,264				1,186				1,191				1,150				1,115
International transaction revenues			891				899				854				831				805
Other revenues			180				183				179				175				179
Client incentives			(599	)			(680	)			(521	)			(567	)			(553	)
Total operating revenues			3,155				2,973				3,001				2,958				2,846
Operating Expenses
Personnel			470				499				493				486				454
Marketing			186				236				252				195				193
Network and processing			132				122				117				119				110
Professional fees			75				130				103				91				88
Depreciation and amortization			107				106				101				98				92
General and administrative			108				129				108				108				106
Litigation provision			—				—				(1	)			1				3
Total operating expenses			1,078				1,222				1,173				1,098				1,046
Operating income			2,077				1,751				1,828				1,860				1,800
Non-operating income (expense)			6				15				5				(3	)			1
Income before income taxes			2,083				1,766				1,833				1,857				1,801
Income tax provision			676				574				608				587				508
Net income		$	1,407			$	1,192			$	1,225			$	1,270			$	1,293

 

8

---

 

Operational Performance Data

The tables below provide information regarding the available operational results for the 3 months ended December 31, 2013, as well as the prior four quarterly reporting periods and the 12 months ended December 31, 2013 and 2012, for cards carrying the Visa, Visa Electron and Interlink brands. Also included is a table with information on the number of billable transactions processed on Visa Inc.’s CyberSource network.

1. Branded Volume and Transactions

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

 

		For the 3 Months Ended December 31, 2013
		Total Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Payments Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Payments Transactions (millions)				Cash Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Cash Transactions (millions)
All Visa Credit & Debit
Asia Pacific		$	492				7.2	%			12.4	%		$	338				7.9	%			13.8	%			3,681			$	154				5.7	%			9.4	%			889
Canada			66				-0.3	%			5.3	%			61				-0.4	%			5.2	%			607				5				0.5	%			6.2	%			11
CEMEA			287				9.7	%			13.6	%			63				24.6	%			30.2	%			1,235				224				6.1	%			9.7	%			1,177
LAC			287				2.0	%			10.9	%			110				5.6	%			16.0	%			2,508				177				-0.2	%			7.9	%			1,066
US			704				7.4	%			7.4	%			590				8.3	%			8.3	%			11,541				114				3.3	%			3.3	%			884
Visa Inc.			1,836				6.5	%			10.1	%			1,163				8.2	%			11.4	%			19,571				673				3.8	%			8.0	%			4,026
Visa Credit Programs
US		$	300				9.2	%			9.2	%		$	287				9.5	%			9.5	%			3,434			$	12				2.5	%			2.5	%			16
International			502				5.0	%			11.3	%			449				5.5	%			12.2	%			5,298				53				0.5	%			4.2	%			196
Visa Inc.			801				6.5	%			10.5	%			736				7.0	%			11.2	%			8,732				65				0.9	%			3.8	%			212
Visa Debit Programs
US		$	404				6.2	%			6.2	%		$	303				7.2	%			7.2	%			8,107			$	102				3.3	%			3.3	%			867
International			631				6.8	%			12.3	%			124				18.6	%			25.2	%			2,733				507				4.3	%			9.5	%			2,946
Visa Inc.			1,035				6.6	%			9.8	%			427				10.3	%			11.8	%			10,839				608				4.1	%			8.4	%			3,814

 

		For the 3 Months Ended September 30, 2013
		Total Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Payments Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Payments Transactions (millions)				Cash Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Cash Transactions (millions)				Accounts (millions)				Cards (millions)
All Visa Credit & Debit
Asia Pacific		$	464				8.2	%			13.6	%		$	314				8.5	%			14.7	%			3,557			$	150				7.5	%			11.2	%			854				610				710
Canada			65				4.6	%			9.4	%			60				4.8	%			9.6	%			602				5				2.3	%			7.0	%			12				32				41
CEMEA			265				12.2	%			16.1	%			57				26.8	%			32.7	%			1,121				207				8.8	%			12.2	%			1,120				290				294
LAC			259				1.6	%			11.8	%			98				4.4	%			16.0	%			2,348				161				0.0	%			9.4	%			998				403				431
US			692				9.3	%			9.3	%			575				10.3	%			10.3	%			11,398				117				4.8	%			4.8	%			932				545				713
Visa Inc.			1,745				8.0	%			11.8	%			1,104				9.6	%			13.0	%			19,026				640				5.4	%			9.8	%			3,916				1,879				2,188
Visa Credit Programs
US		$	290				10.9	%			10.9	%		$	277				11.0	%			11.0	%			3,324			$	12				8.2	%			8.2	%			16				210				285
International			470				6.3	%			12.9	%			420				6.9	%			14.0	%			5,138				50				1.8	%			5.1	%			196				468				526
Visa Inc.			760				8.0	%			12.1	%			697				8.5	%			12.8	%			8,462				63				3.0	%			5.7	%			212				678				811
Visa Debit Programs
US		$	402				8.2	%			8.2	%		$	298				9.6	%			9.6	%			8,074			$	104				4.4	%			4.4	%			916				334				428
International			582				7.9	%			13.9	%			109				17.7	%			24.9	%			2,491				473				5.9	%			11.6	%			2,788				867				949
Visa Inc.			984				8.0	%			11.5	%			407				11.6	%			13.3	%			10,564				577				5.6	%			10.3	%			3,704				1,201				1,377

 

9

---

Operational Performance Data

 

 

 

 

		For the 3 Months Ended June 30, 2013
		Total Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Payments Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Payments Transactions (millions)				Cash Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Cash Transactions (millions)				Accounts (millions)				Cards (millions)
All Visa Credit & Debit
Asia Pacific		$	456				10.6	%			13.2	%		$	304				9.7	%			13.7	%			3,354			$	152				12.4	%			12.2	%			818				592				692
Canada			64				5.1	%			5.8	%			59				5.5	%			6.2	%			568				5				0.7	%			1.3	%			11				31				40
CEMEA			263				13.4	%			15.7	%			55				28.1	%			32.0	%			1,047				208				10.0	%			12.0	%			1,147				291				289
LAC			270				9.4	%			12.5	%			101				13.1	%			17.7	%			2,305				169				7.4	%			9.6	%			975				401				430
US			686				10.4	%			10.4	%			571				11.3	%			11.3	%			11,217				115				5.8	%			5.8	%			906				538				702
Visa Inc.			1,739				10.5	%			12.0	%			1,089				11.4	%			13.2	%			18,491				650				9.0	%			10.2	%			3,857				1,853				2,153
Visa Credit Programs
US		$	282				10.1	%			10.1	%		$	270				10.0	%			10.0	%			3,187			$	12				11.6	%			11.6	%			15				206				280
International			463				8.2	%			11.8	%			412				8.7	%			12.7	%			4,915				51				4.2	%			5.3	%			199				466				525
Visa Inc.			745				8.9	%			11.2	%			682				9.3	%			11.6	%			8,102				63				5.5	%			6.4	%			214				672				805
Visa Debit Programs
US		$	404				10.6	%			10.6	%		$	300				12.5	%			12.5	%			8,031			$	103				5.2	%			5.2	%			891				332				422
International			591				12.6	%			14.2	%			107				23.9	%			26.1	%			2,358				484				10.4	%			11.8	%			2,752				848				926
Visa Inc.			994				11.8	%			12.7	%			407				15.3	%			15.8	%			10,389				587				9.4	%			10.6	%			3,643				1,180				1,348

 

		For the 3 Months Ended March 31, 2013
		Total Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Payments Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Payments Transactions (millions)				Cash Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Cash Transactions (millions)				Accounts (millions)				Cards (millions)
All Visa Credit & Debit
Asia Pacific		$	449				10.1	%			12.2	%		$	295				9.9	%			12.8	%			3,116			$	154				10.6	%			11.2	%			755				581				682
Canada			56				0.3	%			0.5	%			51				1.3	%			1.5	%			489				5				-9.5	%			-9.3	%			10				29				38
CEMEA			242				15.2	%			17.4	%			50				28.1	%			31.8	%			932				192				12.3	%			14.1	%			1,070				278				277
LAC			262				5.0	%			12.7	%			99				8.5	%			18.0	%			2,240				164				2.9	%			9.7	%			926				402				431
US			639				3.5	%			3.5	%			530				4.3	%			4.3	%			10,359				110				0.0	%			0.0	%			847				535				700
Visa Inc.			1,649				7.0	%			9.0	%			1,026				7.1	%			8.8	%			17,135				623				6.8	%			9.3	%			3,608				1,825				2,128
Visa Credit Programs
US		$	255				9.2	%			9.2	%		$	244				9.1	%			9.1	%			2,843			$	12				13.3	%			13.3	%			14				206				278
International			441				7.1	%			10.4	%			394				7.7	%			11.4	%			4,582				48				2.0	%			2.5	%			181				462				522
Visa Inc.			697				7.9	%			10.0	%			638				8.2	%			10.5	%			7,425				59				4.1	%			4.4	%			196				668				801
Visa Debit Programs
US		$	384				0.0	%			0.0	%		$	286				0.5	%			0.5	%			7,516			$	98				-1.4	%			-1.4	%			832				329				421
International			568				11.1	%			14.8	%			102				21.2	%			26.0	%			2,195				466				9.1	%			12.6	%			2,580				828				906
Visa Inc.			952				6.4	%			8.3	%			388				5.3	%			6.2	%			9,711				564				7.1	%			9.9	%			3,412				1,157				1,327

 

		For the 3 Months Ended December 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		$	459				12.1	%			11.7	%		$	313				13.5	%			12.9	%			3,264			$	145				9.2	%			9.2	%			755				570				670
Canada			67				10.4	%			6.6	%			62				11.1	%			7.3	%			561				5				2.1	%			-1.4	%			11				28				38
CEMEA			261				18.6	%			20.1	%			51				31.5	%			34.1	%			917				211				15.9	%			17.1	%			1,148				273				272
LAC			282				6.9	%			14.7	%			104				10.7	%			20.1	%			2,372				178				4.8	%			11.8	%			1,014				402				431
US			655				2.8	%			2.8	%			545				3.0	%			3.0	%			10,640				110				2.1	%			2.1	%			876				528				693
Visa Inc.			1,723				8.4	%			9.4	%			1,075				8.2	%			8.5	%			17,754				649				8.6	%			10.9	%			3,802				1,801				2,104
Visa Credit Programs
US		$	274				10.5	%			10.5	%		$	262				10.8	%			10.8	%			3,131			$	12				4.2	%			4.2	%			16				204				277
International			478				10.8	%			11.1	%			425				12.0	%			12.6	%			4,860				52				2.3	%			0.4	%			196				460				518
Visa Inc.			752				10.7	%			10.8	%			688				11.5	%			11.8	%			7,991				64				2.6	%			1.1	%			212				663				795
Visa Debit Programs
US		$	381				-2.1	%			-2.1	%		$	282				-3.4	%			-3.4	%			7,509			$	98				1.8	%			1.8	%			860				324				416
International			591				13.1	%			16.7	%			105				23.7	%			27.9	%			2,254				486				11.0	%			14.6	%			2,731				813				893
Visa Inc.			971				6.6	%			8.3	%			387				2.7	%			3.2	%			9,763				584				9.3	%			12.1	%			3,591				1,138				1,309

 

10

---

Operational Performance Data

 

 

		For the 12 Months Ended December 31, 2013
		Total Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Payments Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Payments Transactions (millions)				Cash Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Cash Transactions (millions)
All Visa Credit & Debit
Asia Pacific		$	1,861				9.0	%			12.8	%		$	1,252				9.0	%			13.8	%			13,707			$	609				9.0	%			11.0	%			3,315
Canada			252				2.4	%			5.3	%			232				2.8	%			5.7	%			2,266				20				-1.5	%			1.1	%			44
CEMEA			1,057				12.5	%			15.6	%			226				26.8	%			31.6	%			4,334				831				9.1	%			11.9	%			4,514
LAC			1,078				4.4	%			11.9	%			407				7.8	%			16.9	%			9,402				671				2.4	%			9.1	%			3,965
US			2,720				7.7	%			7.7	%			2,265				8.6	%			8.6	%			44,514				455				3.5	%			3.5	%			3,569
Visa Inc.			6,969				8.0	%			10.7	%			4,382				9.1	%			11.6	%			74,223				2,586				6.2	%			9.3	%			15,406
Visa Credit Programs
US		$	1,127				9.9	%			9.9	%		$	1,079				9.9	%			9.9	%			12,788			$	48				8.7	%			8.7	%			62
International			1,876				6.6	%			11.6	%			1,675				7.2	%			12.6	%			19,933				201				2.1	%			4.3	%			772
Visa Inc.			3,003				7.8	%			11.0	%			2,753				8.2	%			11.5	%			32,720				249				3.3	%			5.1	%			834
Visa Debit Programs
US		$	1,594				6.2	%			6.2	%		$	1,187				7.3	%			7.3	%			31,727			$	407				2.9	%			2.9	%			3,506
International			2,372				9.5	%			13.7	%			442				20.2	%			25.5	%			9,776				1,930				7.3	%			11.3	%			11,066
Visa Inc.			3,966				8.1	%			10.6	%			1,629				10.6	%			11.7	%			41,503				2,337				6.5	%			9.8	%			14,573

 

		For the 12 Months Ended December 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		$	1,708				10.8	%			11.5	%		$	1,149				11.9	%			12.2	%			12,256			$	559				8.6	%			10.1	%			2,735				570				670
Canada			246				5.3	%			6.3	%			226				5.7	%			6.7	%			2,065				20				1.1	%			2.3	%			43				28				38
CEMEA			940				15.4	%			21.0	%			178				27.0	%			34.0	%			3,107				761				13.0	%			18.3	%			4,321				273				272
LAC			1,033				5.3	%			16.1	%			378				8.6	%			20.7	%			8,654				655				3.5	%			13.6	%			3,860				402				431
US			2,527				2.6	%			2.6	%			2,087				2.2	%			2.2	%			41,122				440				4.1	%			4.1	%			3,550				528				693
Visa Inc.			6,453				6.9	%			9.4	%			4,017				6.6	%			7.7	%			67,203				2,436				7.6	%			12.2	%			14,509				1,801				2,104
Visa Credit Programs
US		$	1,025				9.9	%			9.9	%		$	981				10.4	%			10.4	%			11,591			$	44				-0.5	%			-0.5	%			61				204				277
International			1,760				8.8	%			11.0	%			1,563				10.3	%			12.6	%			18,166				197				-1.7	%			0.2	%			759				460				518
Visa Inc.			2,785				9.2	%			10.6	%			2,544				10.4	%			11.7	%			29,757				241				-1.5	%			0.1	%			820				663				795
Visa Debit Programs
US		$	1,501				-1.9	%			-1.9	%		$	1,105				-4.1	%			-4.1	%			29,531			$	396				4.6	%			4.6	%			3,490				324				416
International			2,167				10.9	%			17.4	%			368				17.9	%			24.8	%			7,915				1,799				9.6	%			16.0	%			10,200				813				893
Visa Inc.			3,668				5.3	%			8.5	%			1,473				0.6	%			1.6	%			37,446				2,194				8.7	%			13.7	%			13,689				1,138				1,309

 

11

---

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

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

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

 

12

---

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, 2013				11	%				12	%
Sep 30, 2013				9	%				11	%
Jun 30, 2013				11	%				11	%
Mar 31, 2013				10	%				10	%
Dec 31, 2012				11	%				11	%
12 Months Ended
Dec 31, 2013				10	%				11	%
Dec 31, 2012				10	%				13	%

3. Visa Processed Transactions

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

 

Period		Processed Transactions       (millions)					Growth
3 Months Ended
Dec 31, 2013				15,985			13%
Sep 30, 2013				15,491			14%
Jun 30, 2013				14,972			14%
Mar 31, 2013				13,850			6%
Dec 31, 2012				14,159			4%
12 Months Ended
Dec 31, 2013				60,298			12%
Dec 31, 2012				53,883			4%

 

13

---

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
Dec 31, 2013				1,894			20%
Sep 30, 2013				1,696			24%
Jun 30, 2013				1,648			27%
Mar 31, 2013				1,608			25%
Dec 31, 2012				1,581			28%
12 Months Ended
Dec 31, 2013				6,846			24%
Dec 31, 2012				5,527			26%

 

14