CfBANKARD'

AYGC Member

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22 December 2011

The Philippine StockExchange, Inc. Ayata Triangte PSE Plaza, Avenue, MakatiCity Ayata

ATTENTION: JANET ENCARNACION A. Department Head,Disclosure herewith we In compliance with the Exchange's requirement, are submitting 30,2011 Amended QuarterReport the periodendedSeptember 3'd for the 2011 No. of Circutar 3 Series (SEC 17-Q of Bankard, regarding Memorandum Inc. SEC | - Financiat Statements to Disctosures ltem refer to page8, Additional 2011. Please for our repty.

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B a n k a r d ,l n c . 3 l / F R o b i n s o n s - E q u i t a b l e T o w e q N o . 4 A D B A v e . c o r n e r P o v e d a S t r e e t , OrtigasCenter,Pasig City,Philippines 1605 P.O.Box 12519Ortigas,Pasig City

Total of 15 pages (including cover)

SEC Number 102165 File Number ______

_________________________________

BANKARD, INC.
_________________________________ 31st Floor, Robinsons-Equitable Tower, ADB Avenue corner Poveda St., Ortigas Center, Pasig City 1605 __________________________________________________ 688 - 1888 _____________________________ December 31 _____________________________ (Fiscal Year Ending) (Month & Day) SEC FORM 17 - Q QUARTERLY REPORT __________________________________________ (Form Type) Amended SEC Form 17-Q ____________________________________ Amendment Designation (if applicable)

September 30, 2011 _______________________ Period Ended Date

Not Applicable ________________________________________ (Secondary License Type and File Number)

SECURITIES AND EXCHANGE COMMISSION AMENDED SEC FORM 17-Q QUARTERLY REPORT PURSUANT TO SECTION 17 OF THE SECURITIES REGULATION CODE AND SRC RULE 17(2)(b) THEREUNDER 1. For the quarterly period ended September 30, 2011 2. Commission Identification Number 102165 3. BIR Tax Identification No. 000-803-498-000 4. Exact name of registrant as specified in its charter: BANKARD, INC. 5. Philippines Province, Country or other jurisdiction of 6. Industry Classification Code: incorporation or organization SEC Use Only)

7. 31st Floor Robinsons-Equitable Tower, ADB Avenue corner Poveda St., Ortigas Center, Pasig City 1605 Address of issuers principal office Postal Code 8. 632 / 688-1888 Registrant's telephone number, including area code 9. Former name, former address, and former fiscal year, if changed since last report 10. Securities registered pursuant to Sections 8 and 12 of the Code, or Sections 4 and 8 of the RSA Number of Shares of Common Stock Title of Each Class Outstanding and Amount of Debt Outstanding Common Stock, P1 par value 1,528,474,000 (as of 12/ 22/ 11)

11. Are any or all of these securities listed on the Philippine Stock Exchange. Yes [x] No [ ] 12. Indicate by check mark whether the registrant: (a) has filed all reports required to be filed by Section 17 of the Code and SRC Rule 17 thereunder or Sections 11 of the RSA and RSA Rule 11(a)-1 thereunder, and Sections 26 and 141 of the Corporation Code of the Philippines, during the preceding 12 months (or for shorter period the registrant was required to file such reports): Yes [x] No [ ] (b) has been subject to such filing requirements for the past 90 days Yes [x] No [ ]

3rd Quarter Report 2011

Table of Contents
Page No. Part I Item 1. Item 2. PART II SIGNATURES Aging of Accounts Receivables FINANCIAL INFORMATION Financial Statements Managements Discussion and Analysis of Financial Condition and Results of Operations OTHER INFORMATION 4 10 13 14 15

PART I - FINANCIAL INFORMATION Item 1 - Financial Statements

1/

BALANCE SHEETS
(Unaudited) September 30, 2011 (Audited) December 31, 2010

A S S E T S CURRENT ASSETS Cash and cash equivalents Credit card and other receivables - net Financial assets at fair value through profit or loss Prepayments and other current assets Total Current Assets NON-CURRENT ASSETS Property and equipment - net Other non-current assets - net Total Non-current Assets TOTAL ASSETS LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable and other accrued expenses Other current liabilities Total Current Liabilities EQUITY Capital stock Deposit on future stock subscription Additional paid-in capital Treasury shares - at cost Change in fair value of available-for-sale securities Retained earnings (deficit) Total Equity TOTAL LIABILITIES AND EQUITY P P 144,559,793 14,618,712 159,178,505 930,161,211 P 117,689,847 22,950,864 140,640,711 837,145,276 P 660,229,038 57,242,558 48,406,868 5,104,242 770,982,706 P 320,270,146 27,368,334 346,934,541 1,931,544 696,504,565

74,720,708 9,313,031 84,033,739 1,528,474,000 390,301,874 (37,875,581) (375,876) (1,034,396,945) 846,127,472 930,161,211 P

70,882,622 5,632,288 76,514,910 1,528,474,000 390,301,874 (37,875,581) (375,876) (1,119,894,051) 760,630,366 837,145,276

1/ The interim consolidated financial statements have been prepared in comformity with generally accepted accounting principles (GAAP) and reflect amounts that are based on the best estimates and informed judgment of management with appropriate consideration to materiality.

UNAUDITED INCOME STATEMENTS

3rd Quarter 2011 (July - September) 3rd Quarter 2010 (July - September) January 01 to September 30, 2011 January 01 to September 30, 2010

REVENUES Service Fee Reversal of impairment losses on credit card receivables Recoveries on accounts previously written-off Other revenues

75,906,226 6,694,186 9,031,066 10,672,349 102,303,827

69,791,990 8,570,150 8,332,529 15,243,057 101,937,726 39,866,974 6,329,900 1,440,480 920,015 5,062,669 45,185 2,010 10,381,022 64,048,254 37,889,472 2,764,806

220,040,246 19,322,469 26,277,154 23,500,877 289,140,746

193,916,338 26,102,246 28,059,247 36,486,108 284,563,939 117,888,535 24,945,099 3,944,447 1,777,027 14,231,945 197,246 2,010 23,388,552 186,374,861 98,189,078 7,381,376

COSTS AND EXPENSES Employee Benefits Management and professional fees Taxes and licenses Communication, light and water Occupancy and equipment-related expenses Supplies and subscriptions Bank and collection charges Other operating expenses

36,961,968 11,265,272 1,572,226 1,370,672 5,337,569 48,474 189,199 12,830,194 69,575,573

114,277,643 24,132,966 4,532,147 2,358,975 15,307,181 104,593 218,585 34,622,704 195,554,794 93,585,952 8,088,845 P P 85,497,107 0.06 P P

INCOME (LOSS) BEFORE TAX EXTRA-ORDINARY INCOME TAX EXPENSE (BENEFIT) NET INCOME (LOSS) Earnings (Loss) Per Share
Earnings (Loss) per share amounts were computed as follows: Net income / (loss) Divided by the weighted average number of outstanding common shares Earnings (Loss) per share P P

32,728,254 2,874,242 P P 29,854,013 0.02 P P

35,124,666 0.02

90,807,702 0.06

29,854,013 1,501,893,900 0.020

35,124,666 1,501,893,900

85,497,107 1,501,893,900

90,807,702 1,501,893,900

0.023

0.057

0.060

STATEMENT OF CHANGES IN EQUITY

(Unaudited) January 01, to September 30, 2011 (Unaudited) January 01, to September 30, 2010

CAPITAL STOCK - P1.00 par value Authorized - 2,000,000,000 shares Issued - 1,528,474,000 shares Outstanding - 1,501,893,900 shares

1,528,474,000

1,528,474,000

ADDITIONAL PAID-IN CAPITAL

390,301,874

390,301,874

TREASURY SHARES - At cost

(37,875,581)

(37,875,581)

FAIR VALUE GAIN (LOSS) ON AVAILABLE-FOR-SALE SECURITIES RETAINED EARNINGS (DEFICIT) Ratained Earnings Ratained Earnings, Adjustments Net income (loss) Balance at end of year

(375,876)

(609,550)

(603,541,148) (516,352,904) 85,497,107 (1,034,396,945)

(731,395,752) (516,352,904) 90,807,701 (1,156,940,954)

TOTAL EQUITY

846,127,472

723,349,789

STATEMENT OF CASH FLOWS

(Unaudited) July 01, to September 30, 2011 (Unaudited) July 01, to September 30, 2010 (Unaudited) January 01, to September 30, 2011 (Unaudited) January 01, to September 30, 2010

CASH FLOWS FROM OPERATING ACTIVITIES Income (Loss) before tax Adjustments for: Depreciation and amortization Non-cash income - VISA Reversals of capitalized expenses Interest income Operating income before working capital changes Decrease/(increase) in credit card and other receivables Decrease/(increase) in prepayments and other current assets Decrease/(increase) in prepayments and other non-current assets Increase/(decrease) in accounts payable and other accrued expenses Increase (decrease) in other current liabilities Cash used in operations Cash paid for income taxes Net Cash From (Used in) Operating Activities CASH FLOWS FROM INVESTING ACTIVITIES Increase/(decrease) in financial assets at fair value throug profit & loss Acquisitions of property and equipment Proceeds from sale of property and equipment Acquisitions of property and equipment Interest received Net Cash Used in Investing Activities NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD CASH AND CASH EQUIVALENTS AT END OF THE PERIOD

32,728,254 1,439,727

37,889,472 1,081,974

93,585,952 3,658,658

98,189,078 2,437,389

(7,565,222) 26,602,759 (7,154,106) 281,459 (570,932) 5,679,363 1,400,246 26,238,789 (1,499,119) 24,739,670

(2,645,843) 36,325,603 8,447,401 (297,863) (7,088,610) 16,712,661 1,532,101 55,631,293 (1,568,655) 54,062,638

(21,828,247) 75,416,363 (29,874,224) (7,035,531) 8,332,152 3,838,086 3,680,743 54,357,589 (4,226,013) 50,131,576

(27,085,977) 73,540,490 (8,777,838) (6,323,122) 120,852 30,074,740 3,111,460 91,746,582 (4,011,010) 87,735,572

5,712,590 (8,632,874) (61,246) 7,565,222 4,583,692

(47,778,360) (550,000) 2,645,843 (45,682,517)

298,527,673 (30,548,831) 20,227 21,828,247 289,827,316

(150,312,194) (8,537,351) (76,554,662) 27,085,977 (208,318,230)

29,323,362

8,380,121

339,958,892

(120,582,658)

630,905,676

337,301,533

320,270,146

466,264,312

660,229,038

345,681,654

660,229,038

345,681,654

Additional Disclosures to Item I - Financial Statements

NOTES TO FINANCIAL STATEMENTS FOR THE QUARTER ENDED SEPTEMBER 30, 2011 SEC REQUIREMENT Disclosure that the issuers interim financial report is in compliance with Generally Accepted Accounting Principles DISCLOSURE The interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the Philippines as set forth in the PFRSs and reflect amounts that are based on the best estimates and informed judgment of management with appropriate consideration to materiality.

The following information, as a minimum, should be disclosed in the notes to financial statements, if material and if not disclosed elsewhere in the interim financial report: A statement that the same accounting policies and methods of computation are followed in the interim financial statements as compared with the most recent annual financial statements or, if those policies or methods have been changed, a description of the nature and effect of the change The Company has consistently followed the same accounting policies and methods of computation for its interim financial statements as with its most recent annual financial statements. The Company has decided not to early adopt either PFRS 9 (2009) or PFRS 9 (2010) for the 2011 and 2012 annual financial reporting due to the deferment by the International Accounting Standards Board of the mandatory effectivity date of IFRS 9 from January 1, 2013 to January 1, 2015. The Company shall conduct early in 2012 another impact evaluation using the December 31, 2011 balances. The Company shall disclose in its March 31, 2012 interim financial statements if the company will decide to early adopt either PFRS 9 for its 2012 reporting. Refer to item G of Material Event/s and Uncertainties Please refer to managements discussion on the financial statements.

Explanatory comments about the seasonality or cyclicality of interim operations. The nature and amount of items affecting assets, liabilities, equity, net income, or cash flows that are unusual because of their nature, size, or incidents The nature and amount of changes in estimates of amounts reported in prior interim periods of the current financial year or changes in estimates of amounts reported in prior financial years, if those changes have a material effect in the current interim period 8

There are no changes in accounting estimates affecting this interim period.

 Issuances, repurchases, and repayments of debt and equity securities

The Board of Directors, in its meeting last July 19, 2011, approved the issuance of Bankard Inc.'s treasury shares relative to the minimum public ownership requirements of the Philippine Stock Exchange. The company holds 26,580,100 treasury shares. There were no dividends paid for ordinary or other shares as of 2nd quarter ending September 30, 2011. The Company is not required to disclose segment information in its annual financial statements.

Dividends paid (aggregate or per share) separately for ordinary shares and other shares

Segment revenue and segment result for business segments or geographical segments, whichever is the issuers primary basis of segment reporting. (This shall be provided only if the issuer is required to disclose segment information in its annual financial statements) Material events subsequent to the end of the interim period that have not been reflected in the financial statements for the interim period The effect of changes in the composition of the issuer during the interim period, including business combinations, acquisitions or disposals of subsidiaries and long-term investments, restructurings, and discontinuing operations Changes in contingent liabilities or contingent assets since the last annual balance sheet date Existence of material contingencies and any other events or transactions that are material to an understanding of the current interim period.

Nothing to disclose.

Please refer to managements discussion on the financial statements.

The Company does contingent assets or liabilities. Nothing to disclose.

not

have

any

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations INCOME STATEMENT The net income of Bankard, Inc. for the third quarter of 2011 posted a decrease of 15.0% from P35.1 million last year to P29.8 million this year due mainly to lower return on Bankards investment portfolio. Bankard generated total revenues of P102.3 million in the third quarter of 2011 versus last years P101.9 million boosted by the service fees posted at P75.9 million, registering a 8.8% increase from same period last year, and revenues from transactions acquired from CUP issued cards amounting to P2.6 million. Income from recoveries and collections of fully provisioned and previously written-off credit card receivables amounted to P15.7 million while gains from Bankards investment portfolio amounted to P5.3 million. Costs and expenses for the third quarter of 2011 totalled P69.6 million, 8.6% higher than same period last year. Expenses of Bankard consist mainly of manpower costs for servicing the credit card operations of Rizal Commercial Banking Corporation (RCBC). BALANCE SHEET Bankard, Inc.s total assets which amounted to P930.2 million as of September 30, 2011 registered an increase of 11.1% from P837.1 million as of December 31, 2010. Cash & cash equivalents increased by P339.9 million from P320.3 million as of December 31, 2010 to P660.2 million as of September 30, 2011 due to the shift of investment portfolio from Financial Assets at fair value through profit or loss to short-term investment. Financial Assets at fair value through profit or loss decreased to P48.4 million as of end of September 2011 from P346.9 million as of December 31, 2010. The fully provisioned credit card receivables are still in the Companys Balance Sheet amounting to P2.5 billion as of September 2011. Total Liabilities as of September 2011 were P84.0 million while the Equity account rose to P846.1 million as of September 2011 from P760.6million in December 2010 as a result of the profitable operations.

Discussion of the companys and its majority-owned subsidiaries top five (5) key performance indicators. It shall include a discussion of the manner by which the company calculates or identifies the indicators presented on a comparable basis. Key Performance Indicators 3Q 2011 Return on Assets (%) 1 Return on Equity (%) 2
1/ 2/

3Q 2010 17.5 19.9

13.1 14.3

YTD Sep 2011 13.0 14.2

YTD Sep 2010 16.2 18.1

Return on assets (ROA) was computed based on the ratio of annualized net income/(net loss) to average assets. Return on equity (ROE) was computed based on the ratio of annualized net income/(net loss) to average equity.

10

FINANCIAL RISK DISCLOSURE a. Assess the financial risk exposure of the company and its subsidiaries particularly on currency, interest, credit, market and liquidity risks. If any change thereof would materially affect the financial condition and results of operation of the Company, provide a discussion in the report on the qualitative and quantitative impact of such risks and include a description of any enhancement in the Companys risk management policies to address the same.

Bankards Investment Management Account (IMA) is exposed to financial risk through its financial asset. The principal financial assets of the Fund are Cash in Bank, Special Deposit Accounts with the Bangko Sentral ng Pilipinas (BSP SDA), Time deposits with Universal and Savings Banks, Government Treasury Notes at Fair Value thru Profit/Loss (FVPL). These open positions give rise to credit risks, interest rate risks and liquidity risks. The Funds overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Funds financial performance. The Fund manages credit risks by implementing a standard operating procedure in evaluating the credit quality of an issuer and setting limits for counterparties. Credit exposures are closely monitored so as to ensure that payments are made on time. Interest rate risks are managed by keeping the weighted average duration of the portfolio short. Treasury bond purchases are limited to highly traded issues to minimize liquidity risks.

b. Evaluate whether the company could provide clearer and more transparent disclosure regarding its financial instruments including but not limited to the following information: 1. A description of the financial instruments of the Company and the classification and measurements applied for each. If material in amount, provide detailed explanation on complex securities particularly on derivatives and their impact on the financial condition of the company. 2. the amount and description of the Companys investments in foreign securities 3. The significant judgments made in classifying a particular financial instrument in the fair value hierarchy 4. An explanation of how incorporated and considered valuation of assets or liabilities risk is in the Investment Management Account are classified in the Balance Sheet based on the nature of the placement, i.e. TCD placements with Banks Cash in Bank; Special Deposit accounts with BSP Due from BSP; FX Treasury Notes, Retail TBonds & SMB Bonds Financial Assets Held for Trading. They are measured at fair values at each reporting period and the corresponding amount of gains and losses are clearly identified in the financial statements. Not applicable. Not applicable. The fair values of available for sale of financial assets have been determined directly by reference to published/quoted prices in active market. Placements in non-tradable investments such as deposits are subject to loan loss provisions when cash flows are not received as they fall due. Price/interest risk of tradable notes is presumed to be reflected in the depreciation of observed market prices and will be reported as mark to market losses.

11

5. A comparison of the fair values as of date of the recent interim financial report and as of date of the preceding interim period, and the amount of gain/loss recognized for each of the said periods; 6. The criteria used to determine whether the market for a financial instrument is active or inactive, as defined under PAS 39Financial instruments

Dec. 10 Investment Management Account Income for the period P481.5M 27.0M

Sep 11 P485.6M 4.9M

A market is considered active when there are actual and regularly occurring market transactions on an arms length basis.

MATERIAL EVENT/S AND UNCERTAINTIES Aside from the above discussions: a. Any known trends, demands, commitments, events or uncertainties that will have a material impact on the issuers liquidity. Nothing to disclose b. Any events that will trigger direct or contingent financial obligation that is material to the company, including any default or acceleration of an obligation. Nothing to disclose c. All material off-balance sheet transactions, arrangements, obligations (including contingent obligations), and other relationships of the company with unconsolidated entities or other persons created during the reporting period. Nothing to disclose d. Any material commitments for capital expenditures, the general purpose of such commitments and the expected sources of funds for such expenditures. Bankard, Inc. invested in three (3) floors of the RCBC Savings Bank Building Project. The estimated amount of the investment of Bankard in this project is P305 million to be funded over the construction period. The project is estimated to be completed by second quarter of 2013. e. Any known trends, events or uncertainties that have had or that are reasonably expected to have a material favorable or unfavorable impact on net sales/revenues/income from continuing operations. Collection and recovery of fully provisioned and written-off credit card receivables left in the books of Bankard, Inc. is one of the revenue sources of the Company. Over time, these receivables for collection will run-down since the company is no longer engaged in the business of issuing credit card. The run-down of the credit card receivables will consequently affect future revenues that it derives from the collection of said credit card receivables. f. Any significant elements of income or loss that did not arise from the issuers continuing operations. Nothing to disclose 12

g. Any seasonal aspects that had a material effect on the financial condition or results of operations. The companys service fee income is affected by the seasonality of RCBCs credit card business which Bankard, Inc. services. The amount of service fee recognized is equivalent to the companys operating costs for processing RCBCs credit card transaction plus a certain percentage of the gross monthly revenues from the credit card issuing and merchant acquiring businesses. Any increase or decrease in gross billings and transactions affect the revenues of the card business and consequently the service fee income of the company.

PART II - OTHER INFORMATION

The issuer may, at its option, report under this item any information not previously reported in a report on SEC Form 17-C. If disclosure of such information is made under this Part II, it need not be repeated in a report on Form 17-C which would otherwise be required to be filed with respect to such information or in a subsequent report on Form 17-Q. Nothing to disclose

13

Spgg115.tnnSIGNATURES Pursuant the requirements the Securities Code,the issuer to Regutation of reportto be signed its behatfby the undersigned duly authorized. on thereunto lssuer: Date: duty caused this

BANKARD. INC. December 22,2011

B. OSCAR BIASON

& PRESIDENT

AVP/HEAD-FINANCIAL

14

AGING OF ACCOUNTS RECEIVABLE

As of September 30, 2011 (In million pesos)

Credit Card Receivables * Current Past Due Less than 180 days 180 days or more Total
* Fully-provisioned

25,485.4 25,485.4

15