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

- 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

- 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

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

Jul 25, 2012, 16:05 ET from Visa Inc.

SAN FRANCISCO, July 25, 2012 /PRNewswire/ -- 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."

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.

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.

Financial Outlook:

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

  • 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:

  • Annual net revenue growth in the low double digits;
  • Client incentives as a percent of gross revenues: 17% to 18% range;
  • Marketing expenses: Under $1 billion;
  • Adjusted annual operating margin of about 60%*;
  • Adjusted tax rate: 33% to 34% range*;
  • Capital expenditures $350 million to $400 million range; and
  • 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.

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:

  • the impact of new laws, regulations and marketplace barriers, including:
    • rules capping debit interchange reimbursement fees promulgated under the U.S. Wall Street Reform and Consumer Protection Act, or the Reform Act;
    • rules under the Reform Act expanding issuers' and merchants' choice among debit payment networks;
    • U.S. government and other parties' reactions to the changes we have made to our business in response to the Reform Act;
    • increased regulation outside the United States and in other product categories; and
    • rules about consumer privacy and data use and security;
  • 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;
  • economic factors, such as:
    • an increase or spread of the current European crisis involving sovereign debt and the euro;
    • other global economic, political and health conditions;
    • cross-border activity and currency exchange rates; and
    • material changes in our clients' performance compared to our estimates;
  • industry developments, such as competitive pressure, rapid technological developments, and disintermediation from the payments value stream;
  • 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 our cards; and
    • issues arising at Visa Europe, including failure to maintain interoperability between our systems;
  • costs arising if Visa Europe were to exercise its right to require us to acquire all of its outstanding stock;
  • loss of organizational effectiveness or key employees;
  • failure to integrate recent acquisitions successfully or to effectively launch new products and businesses;
  • 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

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

VISA INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

June 30,

September 30,

2012

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

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

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)

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.

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)

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.

 

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

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%