Exhibit 99.1

 

 

 

Visa Inc. Reports Fiscal First Quarter 2013 Net Income of $1.3 billion or $1.93 per diluted share and Authorizes New $1.75 Billion Share Repurchase Program

 

 

 

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Broad-based net revenue growth of 12%

 

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Earnings per share of $1.93 includes a catch-up tax benefit effect of approximately $0.11 per share

 

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New share repurchase authorization on top of remainder at December 31, 2012 brings outstanding authorization to about $2.9 billion

Foster City, CA, February 6, 2013 – Visa Inc. (NYSE: V) today announced financial results for the Company’s fiscal first quarter 2013 ended December 31, 2012. Net income for the quarter was $1.3 billion, an increase of 26% over the prior year, or $1.93 per share, an increase of 30% over the prior year. These results included a catch-up tax benefit effect resulting from new guidance on apportionment rules from the State of California, are consistent with our full-year tax and earnings per share guidance, and represent about 11 cents of earnings per share for the quarter. All references to earnings per share assume fully diluted class A share count unless otherwise noted.

Net operating revenue in the first quarter of fiscal 2013 was $2.8 billion, an increase of 12% over the prior year, driven by strong 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 again delivered a strong quarter of revenue and earnings driven by success across our global franchise,” said Charlie Scharf, Chief Executive Officer. “Our results include significant continued investments in our core business, accelerating international expansion and the deployment of next-generation payment solutions for the benefit of our financial institution and merchant partners.” Added Scharf, “We have been committed to using our capital wisely and that includes returning capital to stockholders through dividends and share repurchases. The board’s decision to increase Visa’s repurchase authorization continues that commitment, supported by confidence we have in our future.”

Fiscal First Quarter 2013 Financial Highlights:

Payments volume growth, on a constant dollar basis, for the three months ended September 30, 2012, on which fiscal first quarter service revenue is recognized, was 6% over the prior year at $1.0 trillion.

 

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Payments volume growth, on a constant dollar basis, for the three months ended December 31, 2012, was 9% over the prior year at $1.1 trillion.

Cross-border volume growth, on a constant dollar basis, was 11% for the three months ended December 31, 2012.

Total processed transactions, which represent transactions processed by VisaNet, for the three months ended December 31, 2012, were 14.2 billion, a 4% increase over the prior year.

Fiscal first quarter 2013 service revenues were $1.3 billion, an increase of 13% 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 $1.1 billion. International transaction revenues, which are driven by cross-border activity, grew 8% over the prior year to $805 million. Other revenues, which include the Visa Europe licensing fee, were $179 million, a 1% increase over the prior year. Client incentives, which are a contra revenue item, were $553 million and represent 16% of gross revenues.

Total operating expenses were $1.0 billion for the quarter, a 13% increase over the prior year, primarily due to higher personnel and professional fees associated with investments in technology projects to support our growth initiatives.

The effective tax rate was 28.2% for the quarter ended December 31, 2012. This rate was positively impacted by a tax benefit recognized during the quarter as a result of new guidance issued by the State of California regarding apportionment rules for years prior to fiscal 2012.

Cash, cash equivalents, and available-for-sale investment securities were $6.1 billion at December 31, 2012.

The weighted-average number of diluted class A common stock outstanding was 669 million.

Notable Events:

Under the terms of the class settlement agreement in the Multidistrict Litigation Proceedings (MDL) 1720, in December 2012, the Company paid approximately $4.0 billion from the litigation escrow account into a settlement fund established pursuant to the definitive class settlement agreement. Additionally, in October 2012, the Company made a payment of $350 million to the individual plaintiffs’ settlement fund.

 

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During the three months ended December 31, 2012, the Company repurchased approximately 9 million shares of class A common stock, at an average price of $145.40 per share, using $1.3 billion of cash on hand.

The Company’s Board of Directors has authorized a new $1.75 billion class A share repurchase program. The authorization will be in place through January 2014, and is subject to further change at the discretion of the Board.

As announced on January 30, 2013 the Board of Directors declared a quarterly dividend in the aggregate amount of $0.33 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 5, 2013, to all holders of record of the Company’s class A, class B and class C common stock as of February 15, 2013.

On January 30, 2013, the Company held its 2013 annual meeting of stockholders during which holders of the Company’s class A common stock at the close of business on December 4, 2012 voted on the four proposals enumerated in the Company’s proxy statement. All of management’s proposals were approved, but the single stockholder proposal failed to pass.

Financial Outlook:

Visa Inc. updates its financial outlook for the following metric for fiscal 2013:

 

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Annual free cash flow: About $6 billion. This increase is attributable to tax benefits to be realized during fiscal 2013 related to non-recurring litigation escrow payments of approximately $4.4 billion made during the fiscal first quarter.

Visa Inc. affirms its financial outlook for the following metrics for fiscal 2013:

 

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Annual net revenue growth: Low double digits;

 

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Client incentives as a percent of gross revenues: 18% to 18.5% range;

 

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Marketing expenses: Under $1 billion;

 

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Annual operating margin: About 60%;

 

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Tax rate: 30% to 32% range;

 

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Adjusted annual diluted class A common stock earnings per share growth: High teens; and

 

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Capital expenditures: $425 million to $475 million range.

 

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Fiscal First Quarter 2013 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. 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 24,000 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 http://www.corporate.visa.com.

Forward Looking Statements:

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by the terms “continue,” “expect,” “will,” and similar references to the future. Examples of such forward-looking statements include, but are not limited to, statements we make 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 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 Dodd-Frank Act;

 

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rules under the Dodd-Frank Act expanding issuers’ and merchants’ choice among debit payment networks;

 

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

 

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

 

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rules about consumer privacy and data use and security;

 

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developments in litigation and government enforcement, including:

 

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those affecting interchange reimbursement fees, antitrust and tax; and

 

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our failure to satisfy the conditions necessary to make the multidistrict litigation settlement 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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the failure to raise the “debt ceiling” in the United States and its repercussions;

 

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cross-border activity and currency exchange rates;

 

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

 

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other global economic, political and health conditions;

 

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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 and liquidity needs 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 acquisitions successfully or to effectively launch new products and businesses; 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, 650-432-7644, ir@visa.com

Media Relations: Will Valentine, 650-432-2990, globalmedia@visa.com

 

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VISA INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

		December 31, 2012				September 30, 2012
		(in millions, except par value data)
Assets
Cash and cash equivalents		$	1,334			$	2,074
Restricted cash - litigation escrow			49				4,432
Investment securities
Trading			74				66
Available-for-sale			1,377				677
Income tax receivable			1,341				179
Settlement receivable			859				454
Accounts receivable			801				723
Customer collateral			819				823
Current portion of client incentives			168				209
Deferred tax assets			389				2,027
Prepaid expenses and other current assets			176				122
Total current assets			7,387				11,786
Investment securities, available-for-sale			3,401				3,283
Client incentives			40				58
Property, equipment and technology, net			1,641				1,634
Other assets			306				151
Intangible assets, net			11,403				11,420
Goodwill			11,681				11,681
Total assets		$	35,859			$	40,013
Liabilities
Accounts payable		$	114			$	152
Settlement payable			1,072				719
Customer collateral			819				823
Accrued compensation and benefits			288				460
Client incentives			871				830
Accrued liabilities			578				584
Accrued litigation			5				4,386
Total current liabilities			3,747				7,954
Deferred tax liabilities			4,057				4,058
Other liabilities			467				371
Total liabilities			8,271				12,383
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, 530 and 535 shares issued and outstanding at December 31, 2012, and September 30, 2012, respectively			—				—
Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at December 31, 2012, and September 30, 2012			—				—
Class C common stock, $0.0001 par value, 1,097 shares authorized, 29 and 31 shares issued and outstanding at December 31, 2012, and September 30, 2012, respectively			—				—
Additional paid-in capital			19,728				19,992
Accumulated income			7,997				7,809
Accumulated other comprehensive income (loss), net
Investment securities, available-for-sale			34				3
Defined benefit pension and other postretirement plans			(184	)			(186	)
Derivative instruments classified as cash flow hedges			14				13
Foreign currency translation adjustments			(1	)			(1	)
Total accumulated other comprehensive loss, net			(137	)			(171	)
Total equity			27,588				27,630
Total liabilities and equity		$	35,859			$	40,013

 

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VISA INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

 

		Three Months Ended December 31,
		2012				2011
		(in millions, except per share data)
Operating Revenues
Service revenues		$	1,300			$	1,151
Data processing revenues			1,115				951
International transaction revenues			805				748
Other revenues			179				178
Client incentives			(553	)			(481	)
Total operating revenues			2,846				2,547
Operating Expenses
Personnel			454				389
Marketing			193				190
Network and processing			110				98
Professional fees			88				70
Depreciation and amortization			92				80
General and administrative			106				102
Litigation provision			3				—
Total operating expenses			1,046				929
Operating income			1,800				1,618
Non-operating income (expense)			1				(1	)
Income before income taxes			1,801				1,617
Income tax provision			508				590
Net income including non-controlling interest			1,293				1,027
Loss attributable to non-controlling interest			—				2
Net income attributable to Visa Inc.		$	1,293			$	1,029
Basic earnings per share
Class A common stock		$	1.94			$	1.50
Class B common stock		$	0.82			$	0.73
Class C common stock		$	1.94			$	1.50
Basic weighted-average shares outstanding
Class A common stock			531				520
Class B common stock			245				245
Class C common stock			30				46
Diluted earnings per share
Class A common stock		$	1.93			$	1.49
Class B common stock		$	0.81			$	0.73
Class C common stock		$	1.93			$	1.49
Diluted weighted-average shares outstanding
Class A common stock			669				690
Class B common stock			245				245
Class C common stock			30				46

 

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VISA INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

		Three Months Ended December 31,
		2012				2011
		(in millions)
Operating Activities
Net income including non-controlling interest		$	1,293			$	1,027
Adjustments to reconcile net income including non-controlling interest to net cash provided by (used in) operating activities:
Amortization of client incentives			553				481
Share-based compensation			48				38
Excess tax benefit for share-based compensation			(50	)			(18	)
Depreciation and amortization of property, equipment, technology and intangible assets			92				80
Deferred income taxes			1,622				34
Other			12				(37	)
Change in operating assets and liabilities:
Income tax receivable			(1,162	)			112
Settlement receivable			(405	)			(97	)
Accounts receivable			(78	)			(69	)
Client incentives			(453	)			(343	)
Other assets			(228	)			2
Accounts payable			1				(82	)
Settlement payable			353				(23	)
Accrued and other liabilities			(38	)			251
Accrued litigation			(4,384	)			(70	)
Net cash (used in) provided by operating activities			(2,824	)			1,286
Investing Activities
Purchases of property, equipment, technology and intangible assets			(100	)			(101	)
Proceeds from disposal of property, equipment and technology			—				2
Investment securities, available-for-sale:
Purchases			(1,184	)			(933	)
Proceeds from sales and maturities			418				1,224
Net distributions from other investments			1				2
Net cash (used in) provided by investing activities			(865	)			194
Financing Activities
Repurchase of class A common stock			(1,253	)			(75	)
Dividends paid			(220	)			(152	)
Deposits into litigation escrow account—retrospective responsibility plan			—				(1,565	)
Payments from litigation escrow account—retrospective responsibility plan			4,383				70
Cash proceeds from exercise of stock options			70				44
Restricted stock and performance shares settled in cash for taxes			(64	)			—
Excess tax benefit for share-based compensation			50				18
Payment for earn-out related to PlaySpan acquisition			(12	)			—
Principal payments on capital lease obligations			(5	)			(5	)
Net cash provided by (used in) financing activities			2,949				(1,665	)
Decrease in cash and cash equivalents			(740	)			(185	)
Cash and cash equivalents at beginning of year			2,074				2,127
Cash and cash equivalents at end of period		$	1,334			$	1,942
Supplemental Disclosure of Cash Flow Information
Income taxes paid, net of refunds		$	45			$	57
Amounts included in accounts payable and accrued and other liabilities related to purchases of property, equipment, technology and intangible assets		$	33			$	42

 

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VISA INC.

FISCAL 2013 AND 2012 QUARTERLY RESULTS OF OPERATIONS

(UNAUDITED)

 

		Fiscal 2013 Quarter Ended				Fiscal 2012 Quarter Ended
		December 31, 2012				September 30, 2012				June 30, 2012				March 31, 2012				December 31, 2011
		(in millions)
Operating Revenues
Service revenues		$	1,300			$	1,264			$	1,216			$	1,241			$	1,151
Data processing revenues			1,115				1,062				1,040				922				951
International transaction revenues			805				796				748				733				748
Other revenues			179				172				175				179				178
Client incentives			(553	)			(563	)			(614	)			(497	)			(481	)
Total operating revenues			2,846				2,731				2,565				2,578				2,547
Operating Expenses
Personnel			454				471				435				431				389
Marketing			193				271				242				170				190
Network and processing			110				111				102				103				98
Professional fees			88				134				99				82				70
Depreciation and amortization			92				89				84				80				80
General and administrative			106				131				112				106				102
Litigation provision			3				2				4,098				—				—
Total operating expenses			1,046				1,209				5,172				972				929
Operating income (loss)			1,800				1,522				(2,607	)			1,606				1,618
Non-operating income (expense)			1				66				—				3				(1	)
Income (loss) before income taxes			1,801				1,588				(2,607	)			1,609				1,617
Income tax provision (benefit)			508				(74	)			(768	)			317				590
Net income (loss) including non-controlling interest			1,293				1,662				(1,839	)			1,292				1,027
Loss attributable to non-controlling interest			—				—				—				—				2
Net income (loss) attributable to Visa Inc.		$	1,293			$	1,662			$	(1,839	)		$	1,292			$	1,029

 

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Operational Performance Data

The tables below provide information regarding the available operational results for the 3 months ended December 31, 2012, as well as the prior four quarterly reporting periods and the 12 months ended December 31, 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 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)
All Visa Credit & Debit
Asia Pacific		$	458				11.9	%			11.5	%		$	313				13.4	%			12.5	%			3,269			$	145				8.8	%			9.2	%			764
Canada			66				10.3	%			6.5	%			62				11.0	%			7.1	%			559				5				2.2	%			-1.3	%			11
CEMEA			265				20.1	%			21.6	%			52				34.1	%			36.7	%			930				213				17.1	%			18.4	%			1,164
LAC			256				-2.7	%			4.9	%			104				11.7	%			21.8	%			2,393				152				-10.6	%			-4.2	%			973
US			652				2.7	%			2.7	%			544				2.8	%			2.8	%			10,630				108				2.2	%			2.2	%			861
Visa Inc.			1,697				6.9	%			8.1	%			1,075				8.2	%			8.7	%			17,781				623				4.6	%			7.0	%			3,772
Visa Credit Programs
US		$	274				10.4	%			10.4	%		$	262				10.7	%			10.7	%			3,124			$	12				4.4	%			4.4	%			16
Rest of World			478				11.0	%			11.2	%			425				12.2	%			12.6	%			4,862				53				2.3	%			1.0	%			201
Visa Inc.			752				10.8	%			10.9	%			687				11.6	%			11.9	%			7,985				64				2.7	%			1.6	%			217
Visa Debit Programs
US		$	378				-2.3	%			-2.3	%		$	282				-3.6	%			-3.6	%			7,506			$	97				1.9	%			1.9	%			845
Rest of World			568				8.6	%			12.3	%			106				24.7	%			29.1	%			2,290				462				5.5	%			9.0	%			2,710
Visa Inc.			946				4.0	%			6.0	%			388				2.8	%			3.6	%			9,796				558				4.8	%			7.7	%			3,555
		For the 3 Months Ended September 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)				Accounts (millions)				Cards (millions)
All Visa Credit & Debit
Asia Pacific		$	429				6.7	%			9.2	%		$	290				6.5	%			8.2	%			3,115			$	139				7.3	%			11.5	%			693				558				659
Canada			62				2.3	%			3.7	%			57				2.8	%			4.3	%			528				5				-3.7	%			-2.3	%			11				27				35
CEMEA			238				11.9	%			18.9	%			47				27.0	%			35.6	%			805				191				8.8	%			15.4	%			1,070				264				265
LAC			239				-4.1	%			9.8	%			92				3.5	%			19.8	%			2,165				147				-8.3	%			4.2	%			909				395				424
US			632				1.0	%			1.0	%			521				0.8	%			0.8	%			10,320				111				1.7	%			1.7	%			886				540				698
Visa Inc.			1,600				3.2	%			6.9	%			1,008				3.8	%			5.9	%			16,932				592				2.3	%			8.7	%			3,569				1,783				2,081
Visa Credit Programs
US		$	261				8.2	%			8.2	%		$	250				9.2	%			9.2	%			2,976			$	11				-10.1	%			-10.1	%			16				213				273
Rest of World			441				4.9	%			8.9	%			392				6.2	%			10.1	%			4,593				49				-3.9	%			0.1	%			190				455				515
Visa Inc.			703				6.1	%			8.6	%			642				7.3	%			9.7	%			7,570				61				-5.1	%			-2.0	%			206				669				788
Visa Debit Programs
US		$	371				-3.6	%			-3.6	%		$	271				-5.8	%			-5.8	%			7,344			$	99				3.3	%			3.3	%			870				327				425
Rest of World			526				4.6	%			13.2	%			95				11.4	%			20.2	%			2,019				432				3.2	%			11.8	%			2,493				788				868
Visa Inc.			897				1.1	%			5.6	%			366				-1.9	%			-0.2	%			9,363				531				3.2	%			10.1	%			3,363				1,114				1,293

 

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Operational Performance 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)				Accounts (millions)				Cards (millions)
All Visa Credit & Debit
Asia Pacific		$	413				8.8	%			11.2	%		$	277				11.5	%			13.0	%			3,001			$	136				3.6	%			7.6	%			651				537				645
Canada			61				1.8	%			6.3	%			56				1.9	%			6.4	%			513				5				0.8	%			5.2	%			11				25				33
CEMEA			234				14.4	%			23.4	%			45				28.4	%			39.2	%			751				189				11.5	%			20.2	%			1,088				256				258
LAC			244				-0.3	%			15.4	%			88				3.2	%			19.9	%			2,055				155				-2.1	%			13.0	%			961				385				415
US			619				-0.7	%			-0.7	%			512				-1.1	%			-1.1	%			10,007				107				1.5	%			1.5	%			861				528				687
Visa Inc.			1,570				3.9	%			8.1	%			978				3.9	%			6.2	%			16,327				592				3.9	%			11.5	%			3,572				1,731				2,037
Visa Credit Programs
US		$	256				9.2	%			9.2	%		$	246				9.7	%			9.7	%			2,880			$	11				-0.4	%			-0.4	%			15				209				265
Rest of World			426				6.7	%			11.2	%			378				8.5	%			12.9	%			4,437				49				-5.6	%			0.0	%			192				451				511
Visa Inc.			683				7.6	%			10.5	%			623				9.0	%			11.6	%			7,317				59				-4.7	%			-0.1	%			207				660				776
Visa Debit Programs
US		$	363				-6.6	%			-6.6	%		$	267				-9.3	%			-9.3	%			7,127			$	96				1.7	%			1.7	%			846				320				421
Rest of World			525				7.5	%			17.7	%			88				16.9	%			28.3	%			1,883				437				5.8	%			15.8	%			2,519				752				839
Visa Inc.			888				1.2	%			6.4	%			355				-4.0	%			-2.2	%			9,011				533				5.0	%			13.0	%			3,364				1,071				1,261
		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	%			14.2	%		$	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	%			7.5	%			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			616				7.0	%			7.0	%			508				6.5	%			6.5	%			10,118				108				9.3	%			9.3	%			880				536				680
Visa Inc.			1,541				11.8	%			12.9	%			958				11.1	%			11.2	%			16,137				584				13.0	%			15.9	%			3,495				1,731				2,013
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	%			6,828				57				1.6	%			2.9	%			197				658				778
Visa Debit Programs
US		$	382				4.2	%			4.2	%		$	284				2.4	%			2.4	%			7,519			$	97				9.7	%			9.7	%			865				330				414
Rest of World			515				17.1	%			21.0	%			85				26.0	%			29.5	%			1,790				429				15.5	%			19.4	%			2,433				742				820
Visa Inc.			897				11.2	%			13.2	%			370				7.0	%			7.6	%			9,309				527				14.4	%			17.5	%			3,299				1,073				1,235
		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	%			11.2	%		$	276				15.0	%			12.0	%			2,948			$	133				9.5	%			9.6	%			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	%			25.1	%			39				29.1	%			37.0	%			643				182				18.3	%			22.8	%			1,066				241				243
LAC			263				13.0	%			19.0	%			93				14.7	%			20.9	%			2,068				169				12.1	%			17.9	%			998				383				414
US			635				7.4	%			7.4	%			529				7.3	%			7.3	%			10,612				106				8.2	%			8.2	%			879				531				670
Visa Inc.			1,588				11.3	%			12.3	%			993				10.6	%			10.5	%			16,771				595				12.4	%			15.3	%			3,574				1,701				1,977
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	%			12.1	%			379				13.5	%			12.6	%			4,366				51				7.7	%			8.8	%			189				456				516
Visa Inc.			678				11.6	%			11.2	%			616				12.0	%			11.4	%			7,174				63				8.2	%			9.0	%			205				659				779
Visa Debit Programs
US		$	387				6.0	%			6.0	%		$	292				5.4	%			5.4	%			7,803			$	95				7.9	%			7.9	%			863				328				407
Rest of World			523				15.1	%			19.1	%			85				20.3	%			24.6	%			1,793				438				14.1	%			18.1	%			2,506				714				791
Visa Inc.			910				11.0	%			13.1	%			377				8.4	%			9.1	%			9,597				532				13.0	%			16.1	%			3,369				1,042				1,198

 

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Operational Performance Data

 

 

 

		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)
All Visa Credit & Debit
Asia Pacific		$	1,707				10.7	%			11.5	%		$	1,149				11.8	%			11.8	%			12,260			$	559				8.5	%			10.7	%			2,744
Canada			246				5.2	%			6.2	%			226				5.6	%			6.6	%			2,063				20				1.1	%			2.2	%			43
CEMEA			948				16.3	%			21.9	%			184				30.7	%			37.7	%			3,151				764				13.3	%			18.6	%			4,337
LAC			989				1.2	%			11.9	%			375				8.6	%			21.1	%			8,629				615				-2.9	%			7.0	%			3,795
US			2,519				2.4	%			2.4	%			2,085				2.2	%			2.2	%			41,076				434				3.5	%			3.5	%			3,488
Visa Inc.			6,409				6.3	%			8.9	%			4,018				6.7	%			7.9	%			67,178				2,391				5.8	%			10.6	%			14,408
Visa Credit Programs
US		$	1,025				9.9	%			9.9	%		$	981				10.4	%			10.4	%			11,579			$	44				-0.7	%			-0.7	%			62
Rest of World			1,757				8.8	%			11.0	%			1,559				10.3	%			12.4	%			18,121				197				-1.7	%			0.8	%			764
Visa Inc.			2,782				9.2	%			10.6	%			2,540				10.3	%			11.6	%			29,700				242				-1.5	%			0.6	%			827
Visa Debit Programs
US		$	1,494				-2.2	%			-2.2	%		$	1,104				-4.2	%			-4.2	%			29,497			$	389				4.1	%			4.1	%			3,426
Rest of World			2,134				9.2	%			15.8	%			374				19.5	%			26.6	%			7,981				1,760				7.2	%			13.8	%			10,155
Visa Inc.			3,627				4.2	%			7.7	%			1,478				0.9	%			2.1	%			37,478				2,149				6.6	%			11.9	%			13,581
		For the 12 Months Ended December 31, 2011
		Total Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Payments Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Payments Transactions (millions)				Cash Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Cash Transactions (millions)				Accounts (millions)				Cards (millions)
All Visa Credit & Debit
Asia Pacific		$	1,542				19.2	%			12.8	%		$	1,027				21.5	%			14.1	%			11,222			$	515				14.7	%			10.2	%			2,424				519				613
Canada			234				11.0	%			7.0	%			214				11.0	%			7.1	%			1,881				20				10.0	%			6.0	%			40				27				36
CEMEA			815				26.9	%			26.0	%			141				35.6	%			35.2	%			2,227				674				25.2	%			24.2	%			3,963				241				243
LAC			978				22.8	%			19.7	%			345				27.6	%			24.4	%			7,530				633				20.3	%			17.3	%			3,699				383				414
US			2,460				9.4	%			9.4	%			2,041				9.5	%			9.5	%			41,105				419				8.7	%			8.7	%			3,527				531				670
Visa Inc.			6,028				16.1	%			13.6	%			3,768				15.0	%			12.5	%			63,966				2,261				18.0	%			15.6	%			13,652				1,701				1,977
Visa Credit Programs
US		$	933				9.5	%			9.5	%		$	889				9.8	%			9.8	%			10,327			$	45				4.9	%			4.9	%			65				203				263
Rest of World			1,614				20.0	%			14.0	%			1,414				20.4	%			14.2	%			16,450				201				17.2	%			12.6	%			713				456				516
Visa Inc.			2,548				16.0	%			12.3	%			2,302				16.1	%			12.4	%			26,777				245				14.7	%			11.1	%			778				659				779
Visa Debit Programs
US		$	1,527				9.3	%			9.3	%		$	1,152				9.3	%			9.3	%			30,778			$	374				9.2	%			9.2	%			3,462				328				407
Rest of World			1,954				22.3	%			19.5	%			313				31.5	%			27.8	%			6,411				1,641				20.7	%			18.0	%			9,413				714				791
Visa Inc.			3,481				16.2	%			14.6	%			1,465				13.4	%			12.7	%			37,189				2,015				18.4	%			16.2	%			12,874				1,042				1,198

 

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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. 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.

 

13

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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
Dec 31, 2012			11	%			11	%
Sep 30, 2012			7	%			10	%
Jun 30, 2012			10	%			14	%
Mar 31, 2012			15	%			16	%
Dec 31, 2011			12	%			13	%
12 Months Ended
Dec 31, 2012			10	%			13	%
Dec 31, 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
Dec 31, 2012			14,159				4	%
Sep 30, 2012			13,573				2	%
Jun 30, 2012			13,113				1	%
Mar 31, 2012			13,038				8	%
Dec 31, 2011			13,600				8	%
12 Months Ended
Dec 31, 2012			53,883				4	%
Dec 31, 2011			51,941				10	%

 

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
Dec 31, 2012			1,581				28	%
Sep 30, 2012			1,363				25	%
Jun 30, 2012			1,303				25	%
Mar 31, 2012			1,281				26	%
Dec 31, 2011			1,235				25	%
12 Months Ended
Dec 31, 2012			5,527				26	%
Dec 31, 2011			4,385				32	%

 

15