PSE Circular for Brokers No. 566-99

March 23, 1999 PSE CIRCULAR FOR BROKERS NO. 566-99 SECURITIES AND EXCHANGE COMMISSION SEC FORM 11-C CURRENT REPORT UNDER SECTION 11 OF THE REVISED SECURITIES ACT (RSA) AND RSA RULE 11 (a)-1(B)(3) THEREUNDER 1. Date of Report: 22 March 1999 (reporting performance of period ending 31 December 1998) 2. SEC 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 incorporation or organization 6. (SEC Use only) Industry Classification Code 7. 24th Floor Philippine Stock Exchange Centre, Exchange Road, Ortigas Center, Pasig City 1605 Address of Principal Office Postal Code 8. (632) 634-5911 Registrant's telephone number, including area code 9. Not Applicable Former name or former address, if changed since last report 10. Securities registered pursuant to Sections 4 and 8 of the RSA Title of Each Class Number of Shares of Common Stock Outstanding and Amount of Debt Outstanding Common Stock P 1 par value 338,000,000 11. Indicate the item numbers reported herein: 9 b SIGNATURES Pursuant to the requirements of the Revised Securities Act, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized: cdlex Bankard Inc. (SGD.) FELIX L. SINCOEGUE AVP/Deputy Financial Controller 1998 Bankard Net Income UP 15% Nineteen ninety-eight was a challenging year for Bankard, Inc. However, in spite of the Asian crisis, operating performance was better than 1997 with a net income of P93.7 million versus 1997's P81 million, a 15% growth over the previous year. This was largely brought about by the reduction of NPL's, improved operating efficiency, and an uneroded revenue base due to strong brand equity. Continuing its tradition for card product innovation and building on its family of smart cards, Bankard launched Bankard MF1 in 1998 the first credit card in the country that offers the best convenience features of a credit card and an electronic stored-value cash card. Bankard MF1can be used wherever credit cards are accepted and unlike other cards, also at outlets that don't usually accept credit cards at fast-food outlets and movie houses. And just like a regular wallet, if the stored cash value is depleted or used up, Bankard MF1 can be reloaded with a cash value from P100 to P10,000 at the Bankard Main Office or at any Bankard Reloading Center. In line with Bankard's commitment to world-class service quality, last year saw two major customer-care programs enhanced. Bankard Online, the company's official website, was redesigned into an online magazine and renamed Bankard Webzine to make it more visually engaging and interesting both to cardmembers and to the international audience. Bankard Webzine features articles from AHEAD, Bankard's cardmember magazine, on travel, lifestyle and major issues of the day. An innovative feature of the site is the inclusion of an online customer service e-mail. Bankard Phone Center moved closer toward the maximization of its Integrated Voice Response System (IVRS) by fully integrating the VIP Center and the different regional Bankard Cardmember Centers with BankardPhone Interactive and by adding a toll- fee 1-800 number for cardmembers to use. As always, Bankard is dedicated to making its social responsibility fully become an integral part of its business philosophy. To this end, it has held yearly three programs that variously address the general public, streetchildren and its cardmembers. Last year, Bankard Ticketcharge presented a special edition in celebration of the Philippine Centennial, the Bankard Centennial Performing Arts Season, which was open for free to students, public school teachers and senior citizens, its continuing program to bring back to school streetchildren through Children Have A Right to Good Education (C.H.A.R.G.E.), a fund-raising campaign through cardmember pledges and donations, was extended to Tuloy sa Don Bosco Foundation, Aksyon Agad Foundation, and its permanent beneficiary The Blessed Laura Vicua Foundation. Finally, the Bankard's Best, the Nation's Best paid tribute to professional excellence by recognizing cardmembers who have excelled in their chosen fields. Last year's awardees were Asian Institute of Management president Felipe B. Alfonso for management education, Carmen "Baby" J. Barredo for the performing arts, Department of Trade and Industry secretary Cesar B. Bautista for global trade competitiveness, and former president Corazon Aquino for government. This year is awardees are journalist Maximo Soliven, publisher Grace Glory Go and UNIFEM president Olga Severino-Martel, former Central Bank governor Jose Cuisia and exporter Cora Jacob. cdll This year, Bankard, Inc. will continue to move toward advanced-technology based card products; for instance, via the full conversion of its local brand, Bankard, to the multifunction smart card Bankard MF1 and the revitalization of its Bankard One and Bankard E-Cash programs. The company's product and service delivery will get a huge boost from state-of-the-art technology with the signing up of the SEMA Group of France and the United Kingdom, an integrated-backroom-solutions service provider for card companies worldwide, and Fair Isaac, an International developer of advanced credit-scoring technology. The entry of SEMA and Fair Isaac will be complemented by the company's migration to its new headquarters at the PCIBank Robinsons Galleria Tower in the second quarter. The new systems backbone and premises will enable more efficient workflow and better service delivery to its cardmembers, a step forward towards our vision of bringing our service quality to world standards. Bankard is an affiliate of PCIBank.