Executive Office#20 ML QUEZON St.,

City Subd., San Pablo City 4000

Telephone #: +63 49 562 4309

Fax #: +63 49 562 0009

San Pablo BranchM. Paulino St., San

Pablo CityTelephone #: +63 49

562 7660Fax #: +63 49 800 3598

Mogpog BranchMarket Site, Mogpog,

MarinduqueTelefax #: +63 42 332

3079

Masbate BranchM. L Quezon St.

Masbate, Masbate City

Telephone #: +63 56 333 2973

Fax #: +63 56 333 3908

Torrijos BranchCor. Quezon and

Padre Burgos Sts. Torrijos, Marinduque

Telephone #: +63 921 546 4950

Telefax #: +63 42 321 2022

Gasan BranchBrgy. Uno, Gasan,

MarinduqueTelefax #: +63 42 342

1288

Bay BranchJ.P. Rizal St., San

Agustin, Bay Laguna

Telefax #: +63 49 536 7265

Dolores BranchBagong Anyo,

Dolores QuezonTelephone #: +63 42

565 6239Fax #: +63 42 565 6917

Dimasalang BranchPoblacion

Dimasalang, Masbate

Telephone #: +63 56 588 0129

Cataingan BranchGen. Luna St.,cor

Mabini St. Poblacion Cataingan, Masbate

Telephone #: +63 56 588 0128

Las Piñas BranchBrgy. E. Aldana Real

St. Las Piñas CityTelefax #: +63 2 820

8059

La Trinidad BranchKM 4 Balili, La

Trinidad BenguetTelephone #: +63 74

309 3515Telefax #: +63 74 309

3514

Calapan BranchSan Miguel Milex

Bldg. M. Leuterio St. cor Fallarme St. San Vicente East Calapan City

Telefax #: +63 43 288 1629

Pinamalayan BranchCor. Mabini &

Quezon Sts., Zone 3, Pinamalayan, Oriental Mindoro

Telefax #: +63 43 284 3523

Sipocot BranchSan Juan Avenue,

Brgy. North Centro, Sipocot, Camarines sur

Telefax #: +63 54 450 6439

San Jose, Occidental Mindoro Branch

Bonifacio St., San Jose, Occidental Mindoro

Telefax #: +63 43 491 1449

Culasi BranchCadiao St., Poblacion,

Culasi, AntiqueTelefax #: +63 36 277

8635

Davao BranchDoor 2, Caredo Bldg.,

Magallanes St., Brgy. 2-A, Davao City

Telefax #: +63 82 224 0572

Lucena BranchMagallanes St.,

Poblacion, Lucena City

Telefax #: +63 42 373 5345

Gumaca BranchPoblacion, Gumaca,

QuezonTelefax #: +63 42 421

1765

Tacloban Branch141 - C. Avenida

Veteranos St., Tacloban City

Telefax #: +63 53 321 8110

San Jose, Antique Branch

Gen. Fullon St., Brgy.8 San Jose Antique

Telefax #: +63 36 540 8990

Iloilo BranchR.T.G Bldg., Quezon

St., Iloilo CityTelefax #: +63 33 338

4322Sablayan BranchP. Urieta St. Sablayan

Occidental Mindoro

Miag-ao BranchTajanlangit St., Miag-

ao, IloiloTelefax #: +63 33 315

2031

Roxas BranchS4J Arcade, Arnaldo

Boulevard, Roxas City, Capiz

Telefax #: +63 36 621 4587

Mamburao BranchRizal St. Barangay

1 Mamburao Occidental Mindoro

Telefax #: +63 43 711 1751

Naga BranchGround Floor DMG

Bldg. Peñafrancia St. Brgy. San Francisco Naga City

Telefax #: +63 54 472 5803

Mulanay BranchSan Carlos St., cor

Rizal St., Poblacion 4, Mulanay Quezon

Telefax #: +63 42 319 7390

Makati BranchKalayaan Avenue,

Guadalupe Nuevo, Makati City

Telefax #: +63 2 882 7245

Daet BranchMagallanes cor. J.

Lukban St., Daet, Camarines Norte

Telephone #: +63 54 441 5493

Passi BranchSan Juan Street,

Poblacion, Ilawod, Passi City, Iloilo

Telefax #: +63 33 311 6264

Estancia BranchBrgy. Tabu-an,

Estancia, IloiloTelefax #: +63 42 304

8375

CARD Bank Directory

“Sa CARd matatag ang bukas”

CARD BANKBOARD OF DIRECTORS

Dr. Jaime Aristotle B. AlipMs. Dolores M. TorresMs. Lorenza dT. Bañez

Ms. Ma. Luisa P. CadaingDr. Gilberto M. Llanto

Ms. Severa DioknoMs. Lolindia A. del Mundo

RISK MANAGEMENT COMMITTEE MEMBERS:

Ms. Dolores M. Torres - ChairmanMs. Lorenza dT. Bañez

Ms. Severa Diokno

SAVINGS MOBILIZATION COMMITTEE MEMBERS:

Ms. Glenda C. Magpantay - Chairman

Ms. Lolindia A. del MundoMs. Severa Diokno

AUDIT COMMITTEE MEMBERS:Dr. Gilberto Llanto – Chairman

Dr. Jaime Aristotle B. AlipMs. Ma . Luisa P. CadaingMs. Lolindia del MundoMs. Marivic M. Austria

GOVENANCE COMMITTEE MEMBERS:

Ms. Lolindia del Mundo – Chairman

Ms. Ma. Luisa P. CadaingDr. Jaime Aristotle B. Alip

Dr. Gilberto M. Llanto

SIHAY (Cells). The cover’s main character is a plant-like emblem which depicts movement and flexibility. It is named SIHAY, which

means cells. Just like any other plant composed of cells as

building blocks, CARD MRI has its seven mutually reinforcing

institutions working and fusing together in one mission – service to

the people. The ‘seven’ tendrils continuously move upward

representing CARD’s outreach in its 23 years of existence. Like a plant, CARD MRI continuously grows and

reaches more marginalized Filipinos with proper nourishment

from its people. The base is likened to a ripple, representing the ripple

effect of development. CARD being a development institution believes

that through empowering individuals and their families,

genuine social transformation can be achieved. It also embodies a strong

foundation, rooted on its vision of being the global leader in the

microfinance industry owned and led by the members. Sihay is inspired by Teginef/A Dream Play, staged at UP Los Baños in March.

The play depicted the emergence of life from cells, just like CARD which embodies the fusion of the fundamental elements (the seven mutually reinforcing institutions) and building a strong organization.

CARD also believes that it is when people collaborate that we create great things and great communities.

As one of the institutions that compose the CARD MRIs and in support to its mission, CARD Bank envisions building a sustainable financial institution owned, managed and conrolled by the landless rural women by providing continued access to financial services to an expanding client base by organizing and empowering landless rural women and by instilling the values of discipline, hardwork and saving in an athmospehereof mutual respect.

To provide banking services especially designed for landless rural workers by bringing bank services to community sites and accommodating the least financial transactions within their affordability.

To provide non-collateralized loans to non-bankable but viable projects.

Vision

Mission

Cover Design: SIHAY

Abu DhabiXpressMoneyAustraliaWorld Vision AustraliaBangladeshAssociation for Social

Advancement (ASA)Grameen BankGrameen Trust (GT)CambodiaAnkor Microfinance Kampuchea

(AMK)Cambodian Health Committee

(CHC)CREDIT MFI Seilanithih Ltd.Vision FundCanadaCanadian Cooperative Association

(CCA)FrancePlanet FinanceGermanyGerman Savings Bank

Foundation (GBSF)MisereorSparkasse EssenIndiaActivists for Social Alternatives

(ASA)CASHPORMicrosaveIndonesiaCRS IndonesiaInternational Finance Corporation

(IFC)Bank Purba DanartaJapanAsian Community Trust (ACT)Japan Center for International

Exchange (JCIE)Imai Memorial Charitable TrustNihon Fukushi UniversityNice Heart FoundationNissan-Roren FoundationRisho Kosei-Kai Foundation

(RKK)RKK Fund for PeaceAsia Ocenia Association (AOA)LaosMFCLuxembourgADAMalaysiaCASHPORNetherlandsCORDAIDING BankOikoCreditNew ZealandEmbassy of New Zealand PhilippinesADJESUMAgricultural Credit and Policy

Council (ACPC)Ahon sa Hirap Inc. (ASHI)Alalay sa Kaunlaran Inc. (ASKI)Asian ActuaryAsian Institute of Management

(AIM)AusAIDAyala FoundationBanco de OroBangko Sentral ng Pilipinas (BSP)Bank of the Philippine Islands

(BPI)Bank of the Philippine Islands and

Mitsui Sumitomo Insurance (BPI/MS)

Bank of the Philippine Islands- Asset Management

Benigno Aquino Foundation, Inc.BINHI, Inc.Brokenshire CollegeCatholic Relief Services (CRS)Center for Community

Transformation (CCT)Chevron Geothermal Philippine

Holdings, Inc.ChinabankCitibankCitigroup Corporate Investment

and BankingCITO Foundation

Community Economic Ventures, Inc. (CEV)

CRS LINKSCRS PhilippinesCRS-Microfinance Alliance FundCRS-RISE, Inc.Department of Agrarian Reform

(DAR)Department of Agrarian Reform

Development Assistance Program (DARDAP)

Department of Trade and Industrv, Region IV

Deutsche Bank AGDevelopment Bank of the

Philippines (DBP)Dinagat Island Development

FoundationForemost Metro Commercial and

Industrial Services, Inc.Foundation for Sustainable

Society, Inc. (FSSI)Fundacion CODESPAFundacion SantiagoGlobe TelecomGlobal Trainers, Inc.Globe Telecom-GXchange, Inc.

(GXI)Grameen FoundationGulf BankHongkong Shanghai Banking

Corporation (HSBC) Ltd.Insurance CommissionInternational Finance Corporation

(IFC)Japan Embassy ProgramKabalikat sa Maunlad na Buhay,

Inc. (KMBI)Kasagana-Ka Development

InstituteKFI Center for Community

Development Foundation, Inc. (KCCDFI)

Laguna TravelexLand Bank of the Philippines

(LBP)Life Bank (RB Maasin)LOBEMCOMetrobankMetropolitan Bank and Trust

Company (MBTC)Microfinance Council of the

Philippines, Inc. (MCPI)MicropadalaMicro Ventures, Inc. (MVI)MILAMDEC Development

FoundationMultinational Investment

BancorporationNational Anti Poverty Commission

(NAPC)National Confederation of

Cooperatives (NATTCO)National Livelihood Support Fund

(NLSF)Negros Women for Tomorrow

Foundation (NWTF)Netherlands Embassy ProgramOikoCreditPDAP, Canadian International

Development AgencyPeace and Equity Foundation

(PEF)People’s Credit Finance

Corporation (PCFC)People’s Alternative Livelihood

Foundation of Sorsogon, Inc. (PALFSI)

Philam CarePhilHealthPhilippine Business for Social

Progress (PBSP)Philippine Development

Assistance Program (PDAP)Philippine National Reinsurance

(PhiINARE)Philippine-Australian Community

Assistance Program (PACAP)Pilipinas Shell Foundation, Inc.PinoyMe FoundationPioneer Intercontinental

Insurance, Inc.Plan InternationalPlanters Development Bank

(PDB)Presidential Management Staff

(PMS)Punla sa Tao Foundation, Inc.Quidan-Kaisahan Pag-Inupdanay,

Inc.Responsible Investment for

Solidarity and Empowerment (RISE) Financing Company, Inc.

Risk Management Solutions, Inc. (RIMANSI)

Rotary Club of MakatiRural Bank of Talisayan, Inc.Rural Bankers Association of the

Philippines (RBAP)SAKLAW Foundation, Inc.SEARCASecurity BankSERVIAMUSSmall Business Guarantee and

Finance CorporationSoutheast Asia Interdisciplinary

Development Institute (SAIDI)Travel SpecialistTulay sa Pag-unlad, Inc. (TSPI)

Development Corp.Tulungan sa Tubigan Foundation

(TSTF)United Coconut Planters Bank

(UCPB)United Nations Development

Program (UNDP)Upland Marketing Foundation, Inc.USWAG Development

Foundation, Inc.Mr. Washington Z. SyCipWorld Vision Development

Foundation, Inc.Zuellig FoundationSingaporeAlDHANTUC IncomeUnited KingdomInternational Cooperative and

Mutual Insurance Federation (ICMIF)ThailandAsia Pacific Rural and Agricultural

Credit Association (APRACA)Bank for Agriculture and

Agricultural Cooperatives (BAAC)

USAConsultative Group to Assist the

Poorest (CGAP), World BankFreedom From Hunger (FFH)Give2AsiaGrameen FoundationMs. Janet McKinley and Mr.

George MillerMr. Joe Higdon and Ms. Ellen

SuddowMs. Doris StiversOXFAM AmericaRocking Moon FoundationSEEP NetworkSouthern New Hampshire

University (SNHU)St. Luke’s Methodist Church The International Alliance for

Women (TIAW)UNCDFWomen’s World BankingVietnamTYMVietnam Women’s Union

preferred provider program (ppp) PARTNERS

CARD MRI, in its holistic approach to poverty alleviation recognizes the need of its members for health protection, hence the creation of the Preferred Provider Program (PPP). Here, doctors from the community are engaged to become CARD

partners and give consultation discounts to its members. CARD takes off from the idea that healthy people are more productive, thus are able to create or find sources of income and make wise use of the small loans they are gaining from microfinance.

In this campaign, CARD Bank, Inc. contributes much through providing the list of prospective community doctors near its branches in which the PPP team works out. Today, PPP already has 151 partner doctors to whom CARD Bank members get discounts bearing their Healthy Pinoy green cards.

PARTNERSDr. Eugene BernabeDr. Juanita C. MarquezDr. Nerissa Ricardo- CordovaDr. Conrado C. BukidDr. Socreates Excelsius A.

CalamiganDr. Esther B. VergaraDr. Elchor CaralianDr. Rolando Padre Dr. Hector CalibusoDr. Shirlene G. ReblezaDr. Bryan G. MacalindongDr. John Bunyan U. Calamigan

IIIDr. John Bunyan U. Calamigan

IDr. Giovanni Excelsis C. PenaDr. Maritess meollo- AlegreFormento-Cabalu ClinicIdeal Vision - Dr. Mary O. ChanDr. Stella T. VilladorDr. Wilbert AbuelEZ Clinical Laboratory c/o Dr.

Joselito PinedaDr. Amabelle V. CruzMaria Graciela Derada-de LeonDr. Rosario Obleada-IgualdaDr. Roy B. RoxasDr. Nenita TanDr. Aldrin NadresDr. Teresita Farol-NadresDr. Cornelia Vidal TenaDr. Ma. Corazon Ginalyn

LaborteDr. Mena P. de LeonDr. Ana Mia SolerDr. Remedios MaligayaDr. Avelina Magnaye BrionesDr. Catherine Pasumbal- LimDr. Angelica Joy J. GonzalesDr. May O. Galan-VillanuevaDr. Joseph R. VillasantaDr. Ma. Lourdes C. GuerraDr. Almira Mangunay-AguilarDr. Cecille Lim-MabesaDr. Genoveva Jubilo-AsuncionDr. Marites Olviga-LucidoDr. Isabel P. MendozaDr. Herminigildo SiatDr. Alexander P. IbayDr. Antonio ParaisoDr. Cristina E. SazonDr. Vanessa PlestadoDr. Connie PlestadoRogen’s Clinical LaboratoryDr. Ditas Margarita C. ArgosinoDr. Asuncion B. RañesesDr. Maria Rosario HernandezDr. Joel E. AragoDr. Aires C. VillapandoDr. Leovigildo R. LeopandoDr. Michelle Uy-TanDr. Teodora AbadDr. Maribel EsposDr. Jelaine VargasDr. Helen Uy-LimDr. Jonalyn FormentoDr. Romane Jesus PilarDr. Renato VergaraDr. Donato FerrerDr. Orlando Pariñas

Dr. Vivian Perez HusanaDr. Eileen Francisco PasambaDr. Allan HilarioDr. Ma. Mylene Verdan-PilarDr. Ma. Teresa Lee-TanDr. Tiongwa Edmundo TanDr. Richard ArgullaDr. Alfred RacelaDr. Honorata PañebeDr. Raiza RizzaManila-PorteDr. Carlos TapanDr. Felipe ReaDr. Marilou ReyDr. Bessie AyalaDr. Acmad Marc MangotaraDr. Aleli M. EdranDr. Elma dela Cruz-MaxinoDr. Javierto ReynosoDr. Sheryll NovelaDr. Augustina CabangonDr. Rolando CustodioDr. Lilia Reforma-CustodioDr. Daisy P. LlamasaresDr. Connie Caig-ZetaDr. Teofista OjedaDr. Aristotle AranasDr. Shelly May BertoDr. Darlene l. DolorDr. Thelma M. GalitDr. Marilyn Umali-TejadaDr. Roberto T. BeriñaDr. Rosito S. BascuñaDr. Manuel B. Avila Jr.Dr. Lilian P. DychincoDr. Carlos D. GonzalesDr. Luvimin S. ArcillaDr. Roy Santiago A. PalmaDr. Maria Lourdes D. MitraDr. Maria Nimfa R. VergaraPeter Paul Medical CenterEmil-Joanna HospitalHoly Rosary HospitalSoler General HospitalRosalie D. Navarro, RMDr. Maria Belen I. Badiola-

LozadaDr. Edwina SantiagoDr. Donald Daniel de PaduaDr. Dean Ezel BaracolDr. Israel Percy SajiseDr. Orville OcampoDr. Dennis PahudDr. Jocelyn TababaDr. Vergel EusebioDr. Jedeane AragonDr. Eric Emmanuel AragonDr. Resa De JesusDr. Sharon Ann GorosinDr. Ronaldo LapitanDr. Amado GurangoDr. Jesusa BelloDr. Rommel MontesDr. Ma. Cecille Añonuevo- CruzDr. Emmanuel LanticanDr. Almira OniaDr. Marie Judith EusebioDr. Eleanor Jeanette MasaDr. Lafayette Ang-SantoDr. Jamie AlcasidDr. Salvador VillanuevaDr. Christine Marie EbuengaDr. Francisco TuralbaDr. Rhodora OcampoDr. Erwin EslavaDr. Anthony Charles DalmacioDr. Samuel TanDr. Rita Marie VergaraDr. Francis Xavier FloresDr. Edwin S. AcebedoDr. Nora PenalozaDr. Letty Go Ang Sam AnzuresDr. John Bunyan Calamigan Jr.Dr. Ronald E. FloresDr. Douren A. EspinaDr. Donna Cecilia B. De VeyraDr. Kimberly Queen C. DadizonDr. Tito L. Alerre

CARD

BAN

K AN

NU

AL REPO

RT 2009

CARD MRI PARTNERS

9

CONEXINE 1 MILLION:

Doubling the Dose, Intensifying the Cure 1

Poverty is a vicious societal illness which cannot be cured by one medicine alone. A panacea is yet to be discovered and we could not just sit and wait until it is done. We at CARD believe that winning over poverty needs a synergistic movement participated by the integral players of society – economists, academe, artists, environmentalists, public and private society, business community … people.

CARD MRI joins this crusade with our 23 years of contributions to microfinance. In all our strife and triumphs is the unrelenting contribution of CARD Bank, Inc. as one of CARD MRI’s primary institutions. Back then, we dreamed of a bank owned and managed by our poor members; CARD Bank has made it happen.

CARD Bank stamps a comprehensive contribution to our OUTREACH and it has continued its EXPANSION even up to the ‘untouched’ grounds. It has rippled throughout the archipelago touching not only the grounds but the hearts of our much-valued clients. Its expertise in microloans and microsavings provisions has penetrated the global lens receiving more demands for technical assistance from our partners in Southeast Asia.

My support will remain as we gear up for more quality products and services along with the continuous improvement of what’s in existence. Together we will bring your battleship to higher, tougher grounds as push onwards and create a dent in this vicious cycle of poverty.

With this, I give my heartfelt salute to the management and staff of CARD Bank for unceasingly working with us in this mission to alleviate poverty. Let’s be more excited for the years to come! Prepare on doubling our dose and intensifying our cure.

Pagpupugay!

Dr. Jaime Aristotle B. AlipFounder and Managing Director

Here comes the end of 2009 and the beginning of another year’s crusade against poverty. As one of the seven mutually reinforcing institutions of CARD MRI, enabling the dreams of our poor Filipino fellows through realistic and quality banking services remain to be our main thrust.

This year, we gain grounds with our microfinance clients reaching a total of 381, 495 indicating a 51% increase from the previous year; our portfolio kicked at 51% increase amounting to Php1.4 billion loan outstanding with a very good portfolio quality of 1.87% portfolio-at-risk of one day; and with savings enormously increasing with a year end balance of Php 1.2 billion. All these and more importantly, the bank’s consistent quality financial performance adhering to both Bangko Sentral ng Pilipinas and microfinance international standards.

Being true to our mission, CARD Bank consistently dare the roads less traveled with new branches and other banking offices being established in the farthest of the regions. This move will never cease as long as we can identify poor families needing access to CARD Bank’s products and servcies. This leads to the opening of five more branches in Mulanay, Daet, Estancia, Passi and we even dared the elite Makati. This is the very expression that our quality products and services can be at par with that of the cosmopolitan’s but our focus remains biased to the underserved.

We put our utmost trust to our socially and economically challenged members; no holding back, no giving up. They are the very reason of our endurance in this complex battle; and the assurance of support from the other six mutually reinforcing institutions of CARD makes every endeavor possible. Of course, we give back the gratitude to our Board of Directors especially our Chairman, Dr. Jaime Aristotle B. Alip for being a constant inspiration and guide in all these undertakings.

As well, we are lucky to have a line of great people supporting and working with us. The Bangko Sentral ng Pilipinas, has always been in full effort to ensure that their policies enable the visions of microfinance to reach wider range of Filipinos needing it. Our valued depositors and the entire membership for keeping the trust in CARD Bank.

We also extend our heartfelt appreciation to our member-stockholders who have proven to the world that the poor can make it happen. Yes, we made it happen. Together, we will continue this crusade and infect CARD habits to more Filipinos and beyond.

Above all, we thank the Almighty God for the blessings and learnings that keep flooding us. We humbly dedicate everything in Your name.

May the Good Lord continue to bestow His holiness to the bank, its board of directors, staff and all other individuals we ncounter in every step of the way.

Let’s continue serving the PEOPLE!

DOLORES M. TORRESPresident and CEO

CARD Bank, Inc.(A Microfinance-Oriented Bank)

STATEMENTS OF CHANGES IN EQUITY

Preferred Stock Common Stock Deposit for Future Stock Subscription

SurplusTotal

Balance at January 1, 2009 P49, 912,800 P67,400,236 P38,143,469 P37,968,363 P193, 424,868

Total comprehensive incomeCollection of subscriptions receivableDeposit for future subscription - preferred stockCash dividends

--87,200

----

--8,917,664

----

--

38,139--

67,240,617--

--(16,000,000)

67,240,6179,004,864

38,139(16,000,000)

Balance at December 31, 2009 P50,000,000 P76,317,900 P38,181,608 P89,208,980 P253,708,488

Balance at January 1, 2008Total comprehensive incomeCollection of subscriptions receivableDeposit for future subscription - preferred stockDeposit for future subscription - common stockCash dividends

P49,884,100--

28,700

--

----

P47,950,933--

19,449,303

--

----

P------

22,335,069

15,808,400--

P36,498,34220,460,749

--

--

--(18,990,728)

P134,333,37520,460,74919,478,003

22,335,069

15,808,400(18,990,728)

Balance at December 31, 2008 P49, 912,800 P67,400,236 P38,143,469 P37,968,363 P193, 424,868

STATEMENTS OF CASH FLOWSYears Ended December 31

2009 2008

CASH FLOWS FROM OPERATING ACTIVITIES

Income before income taxAdjustments for: Provision for credit losses Depreciation and amortization Loss on disposal of property and equipmentChanges in operating assets and liabilities: Increase in amounts of: Loans and receivables Other assets Deposit liabilities Other liabilities

P94,072,627

19,366,15223,878,873

--

(506,772,508)(22,989,698)486,188,73930,671,985

P33,045,280

13,850,95213,856,690

710,534

(432, 893,392)(6,740,052)

294,821,04334,041,177

Net cash provided by (used in) operationsIncome taxes paid

124,416,170(18,513,155)

(49,307,768)(5,510,556)

Net cash provided by (used in) operating activities 105,903,015 (54,818,324)

CASH FLOWS FROM INVESTING ACTIVITIESAcquisitions of: Held-to-maturity investments Property and equipment Proceeds from maturity of held-to-maturity investmentsProceeds from disposal of property and equipment

(250,504,499)(45,744,233)100,534,078

7,617,293

(91,499,857)(43,675,630) 27,699,091

--

Net cash used in investing activities (188,097,361) (107,476,396)

CASH FLOWS FROM FINANCING ACTIVITIESAvailment of bills payableSettlement of bills payableProceeds from Collection of subscriptions receivable - common stock Collection of subscriptions receivable - preferred stock Deposit for future stock subscriptionDividends paid

372, 304,124(156,064,973)

8,917,66487,20038,139

(15,967,116)

173,497,997(49,124,000)

19,449,30328,700

38,143,469(18,891,311)

Net cash provided by financing activities 209,315,038 163,104,158

NET INCREASE IN CASH AND CASH EQUIVALENTS 127,120,693 809,438

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF YEARCash and other cash itemsDue from Bangko Sentral ng PilipinasDue from other banks

P10,828,57916,357,21841,504,480

P7,728,70410,100,76050,051,375

68,690,277 67,880,839

CASH AND CASH EQUIVALENTS AT THE END OF YEARCash and other cash itemsDue from Bangko Sentral ng PilipinasDue from other banks

10,442,4195,264,925

180,103,626

10,828,57916,357,21841,504,480

P195,810,970 P68,690,277

OPERATIONAL CASH FLOWS FROM INTEREST AND DIVIDENDS

Interest receivedInterest paidDividend received

P633,014,63258,008,480

--

P394,717,06034,496,215

400

Audited Financial Statements complete with Notes are available upon request.

8

Women’s World Banking, the largest global network of leading microfinance institutions and banks dedicated to the economic empowerment of women, has announced its first ever loan guarantee in Asia to support a $1.6 million loan by Standard Chartered Bank Philippines to WWB network member, CARD Bank.

The loan, given by Standard Chartered Bank, is the bank’s first microfinance loan in Southeast Asia. It also marks the first time CARD Bank has received a commercial loan from a foreign bank. (Microfinance Monitor)

On May 20, 2009, CARD Bank Tacloban held its first stockholders’ convention. It is the first convention in Visayas Region.

On June 29, 2009, CARD Bank opened its 29th branch to expand its microfinance and banking services in the business district of Makati. Besides being a leading bank in rural finance, CARD Bank is also at par with commercial banks in the Metropolis.

In September, CARD Bank opened two more branches making it six branches in Panay Island to saturate the provision of microfinance and banking services in the island. CARD Bank is also in tandem with MAHP unit in carrying out health programs for its clients in Bondoc Peninsula.

ON MICROSAVINGS

Towards the end of 2009, CARD Bank is already moving the gears towards intensifying the savings mobilization project. It has gained support from Bill and Melinda Gates Foundation through Grameen Foundation USA. This move is still in line with CARD Bank’s mission to promote the culture of saving among low and middle-income Filipinos.

Indeed there are a lot of reasons to be excited. In 2010, the team will be starting the Marketing Strategy Workshop with the Senior Management to aid the pilot-test of the microsavings project to San Pablo City in Laguna, and Dolores and Lucena City in Quezon. This also comes with the installation of Automated Teller’s Machines (ATMs) in the pilot areas. By doing so, CARD Bank will be training Savings Associates (SAs) and Customer Service Associates (CSAs) to be assigned in the areas of coverage.

Daring Less Travelled Horizons-- CARD Bank, Inc.

Photo by : Karl Grobl

CARD Bank, Inc.(A Microfinance-Oriented Bank)BALANCE SHEETS December 31

2009 2008

ASSETS

Cash and Other Cash ItemsDue from Bangko Sentral ng PilipinasDue from Other BanksLoans and Receivables Held-to-Maturity Investments Property and EquipmentDeferred Tax AssetOther Assets

P10,442,4195,264,925

180,103,6261,453,847,611

255,271,96373,789,4061,832,870

59,990,481

P10,828,57916,357,21841,504,480

966,441,255105,301,54259,541,3395,071,271

37,000,783

P2,040,543,301 P1,242,046,467

LIABILITIES AND EQUITY

LiabilitiesDeposit Liabilities

DemandSavings

P36,861,3781,247,838,862

P172,405798,339,096

1,284,700,240 798,511,501

Bills PayableIncome Tax PayableOther Liabilities

405,734,49017,167,35179,232,732

189,495,33912,086,89648,527,863

1,786,834,813 1,048,621,599

Equity Capital Stock

Preferred StockCommon StockDeposit for Future Stock Subscription

50,000,00076,317,90038,181,608

49,912,80067,400,23638,143,469

164,449,508 155,456,505

Surplus 89,208, 980 37,968,363

253,708,488 193,424,868

P2,040,543,301 P1,242,046,467

STATEMENTS OF COMPREHENSIVE INCOMEYears Ended December 31

2009 2008

INTEREST INCOME ON

Loans and Receivables Held-to-Maturity InvestmentsDue from Other Banks

P632,979,136 12,381,013 3,592,838

P392,344,140 3,226,787 4,810,928

34,607,926 400,381,855

INTEREST EXPENSE ON

Deposit LiabilitiesBills Payable

39,351,667 18,828,916

------------------58,180,583

29,998,7417,875,866

------------------37,874,607

NET INTEREST INCOME 590,772,404 362,507,248

Loan fees and CommissionMiscellaneous

13,8644,358,309

780,6212,233,963

TOTAL OPERATING INCOME 595,144,577 365,521,832

OTHER EXPENSES

Compensation and Fringe BenefitsTransporation and TravelTaxes and LicensesStationery and Office SuppliesOccupancyDepreciation and AmortizationProvision for Credit LossesSecurity, Messengerial and JanitorialInsuranceMember’s Training and DevelopmentEmployee TrainingsPower, Light and WaterRepairs and MaintenanceProgram Monitoring and EvaluationPostage, Telephone and CableProfessional FeesMiscellaneous

227,653,52343,089,85637,543,63429,000,10627,544,49123,878,87319,366,15216,720,26415,167,04411,569,93511,088,6417,650,2856,731,7386,208,7305,559,4951,352,070

10,947,113

167,941,04224,214,62322,670,44414,062,90319,063,42913,856,69013,850,95210,880,9879,831,8984,663,2689,733,5405,819,7363,767,729

820,9353,962,9141,018,1616,317,301

TOTAL OPERATING EXPENSES 501,071,950 332,476,552

INCOME BEFORE INCOME TAX 94,072,627 33,045,280

PROVISION FOR INCOME TAX 26,832,010 12,584,531

NET INCOME 67,240,617 20,460,749

OTHER COMPREHENSIVE INCOME ---- ----

TOTAL COMPREHENSIVE INCOME P67,240,617 P20,460,749

Audited Financial Statements complete with Notes are available upon request.2 7

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KEY FIGURES Accomplishments by CARD BANK(as of 31 December 2009)

CARD BANKNo. of Borrowers: 365, 645No. of Savers: 381, 495Amount of Loans Disbursed: P 4.007 billionLoan Portfolio: P 1.440 billionSavings Balance: P 1.284 billionPAR 1: 1.87%Total Assets: P 1.440 billionOperational Self Sufficiency: 108.13%Financial Self Sufficiency: 106.60%

CARD Bank Inc., in its will to contribute in the CONEXINE 1M campaign of CARD MRI has intensified its outreach bustle. Its clients enormously boosted at 51% increase from the previous year. Through the years, CARD Bank has maintained an excellent performance in terms of financial and operational sufficiency and sustanability.

Indicators 2008 2009 Inc./Dec. % Inc./Dec.Number of Total Clients 252,215 381,495 129,280 51%- Borrowers 232,948 365,645 132,697 57%- Savers 252,215 381,495 129,280 51%Savings Balance Php798,511,502 Php1,284,700,240 486,188,738 61%Loan Portfolio Php956,255,337 Php1,440,562,520 484,307,183 51%PAR Rate (1 day past due 1.7% 1.87% 0.17% 10%Repayment Rate 99.30 99.49% 0.19% 0.19%Areas of Coverage 14 14 0 0%No. of Branches 27 32 5 19%No. of Other Banking Offices 165 221 56 34%

CARD Bank, Inc.A Microfinance-oriented Rural Bank

Comparative Accomplishment for the Years ended 2008-2009

PAR 1

0.00%

5.00%

10.00%

15.00%

2005 2006 2007 2008 2009

PAR 1

9.83%6.72%

3.20%1.70% 1.87%

Total Clients

-100,000200,000300,000400,000500,000

2005 2006 2007 2008 2009

Total Clients

Percentage47, 808 68,838

131,878

252,215

381,495

Active Loan Clients

-

100,000

200,000

300,000

400,000

2005 2006 2007 2008 2009

Active Loan Clients

Percentage

31,479 52,747117,195

232,948

365,645

Savings Deposit

-

500,000,000.00

1,000,000,000.00

1,500,000,000.00

2005 2006 2007 2008 2009

Savings Deposit

Percentage

262,842,096 302,238,049491,522,859

798,511,502

1,284,700,240

Loan Oustanding

-

500,000,000

1,000,000,000

1,500,000,000

2,000,000,000

2005 2006 20072008 2009

Loan Outstanding

Percentage

275,760,408348,164,808

547,594,278

956,255,337

1,440,562,520

Financial StatementsSyCip Gorres Velayo & Co.6760 Ayala Avenue1226 Makati CityPhilippines

Phone: (632) 891 0307 Fax: (632) 819 0872www.sgv.com.ph

BOA/PRC Reg. No. 0001SEC Accreditation No. 0012-FR-1

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INDEPENDENT AUDITOR’S REPORT

The Stockholders and the Board of DirectorsCARD Bank, Inc.A Microfinance-Oriented Rural Bank20 M.L. Quezon St., City SubdivisionSan Pablo City, Laguna

We have audited the accompanying financial statements of CARD Bank Inc. , a Microfinance-Oriented Rural Bank, which comprise the balance sheets as of December 31, 2009 and 2008, and the statements of comrehensive income, statements of changes in equity and statements of cashflows for the years then ended, and a summary of significant accounting policies and other explanatory notes.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with Philippine Financial Reporting Standards. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor’s Responsibility

Our responsibility is to express opinion on these financial statements based on our audits. We conducted our audits in accordance with Philippine Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence that we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financials statements present fairly, in all material respects, the financial position of CARD Bank, Inc., A Microfinance-Oriented Rural Bank as of December 31, 2009 and 2008, and its financial performance and its cash flows for the years then ended in accordance with Philippine Financial Reporting Standards.

SYCIP GORRES VELAYO & CO.

Janeth T. NuñezPartnerCPA Certificate No. 111092SEC Accreditation No. 0853-ATax Identification No. 900-322-673PTR. No. 2087557, January 4, 2010, Makati City

March 20, 2010

EXPANSION TO REMOTE AREASThe goal is to reach numbers, hence CARD Bank, together with its fittest army launched its ship to further expansion. This year, five (5) more branches were opened bringing microfinance and banking services in the remotest and less traveled roads.

Name of Branch Province Region Date OpenedMulanay Quezon IV A 25 May 2009Makati -- NCR 29 June 2009Daet Camarines Norte V 27 July 2009

Estancia Iloilo VI 7 September 2009Passi Iloilo VI 7 September 2009

STOCKHOLDERS’ CONVENTIONIn a typical social lens, a ‘poor individual’ owning share of stocks in a bank is rather unusual, to say more, strange. Yet in the spectacles CARD has upheld, the poor are given the chance to actually become part-owners of a bank! The Stockholders’ Convention is a much valued annual event of CARD MRI as it brings together stockholders and staff promoting stronger relations among them. This is the very expression of its appreciation to CARD member-stockholders, who truly are the owners and managers of their own resources. In this event, the stockholders also receive the most recent, most accurate information they must have. It is also when the stockholders get the chance to showcase their talents as they render unit or branch performances. Selected members also share their experiences as stockholders and CARD members in general.

Name of Area No. of Stockholders

Amount of Stockholdings

Bay 275 1,609,800 .00Bicol 762 1,640,200 .00Dolores 303 1,829,400 .00Laguna Area - NGO 240 417,200 .00Lucena 164 877,400 .00Occidental Mindoro 1433 3,414,000 .00Oriental Mindoro 1385 5,966,200 .00Marinduque 593 2,135,200 .00Masbate 377 2,559,800 .00Quezon 580 1,778,400 .00Cainta Rizal 1 1,000 .00SPC 653 2,429,400 .00Tacloban 57 153,000.00TOTAL 6823 24,811,000.00

STOCKHOLDINGS UPDATE AS OF DECEMBER 31, 2009

STAFF DEVELOPMENTMuch to its pride is CARD Bank’s continued support to staff capacity building and development. The institution believes much on human investment, and that an institution’s reflection is its competent and seasoned human resources.

This year, CARD Bank family salutes the graduates of Master of Science in International Community Economic Development at Southern New Hampshire University (SNHU), August 2009: Ms. Glenda C. Magpantay, Assistant Vice President for Operations and Ms. Maria Sharon D. Roxas, Head Office Cashier.

The fanfare also extends to the graduates of Master of Arts in Organizational Development at the Southeast Asia Inter-disciplinary Development Institute (SAIDI), August 2009: Ms. Lerma L. Lailo, Office & Admin. Support Manager and Rizaline Manalo, Regional Head.

May your honors stand tall, and your hearts remain humble.

SCALING UP POVERTY REDUCTION WHILE ENSURING PROFITABILITYAnd yes! All the harwork has finally paid off. January 2009 marks a very momentous event for CARD Bank President/CEO, Dolores M. Torres and CARD NGO Executive Director, Flordeliza L. Sarmiento as they publicly launch the product of their sweat and sleepless nights at the Asian Institute of Management (AIM) -- their book, “Scaling Up Poverty Reduction while Ensuring Profitability Strategic Management Approcahes of CARD, Inc. and CARD Bank, Inc.”

This book illustrates how CARD MRI, particularly, its leading institutions -- CARD, Inc. and CARD Bank, Inc. -- adhere to the Key Principles of Microfinance developed by the Consulatative Group to Assist the Poorest (CGAP) in 2004. It also shows how the two institutions continue to offer and develop a variety of relevant financial services to the poor. As well, the ways on how both CARD, Inc. and CARD Bank, Inc. pursued sustainability and managed growth in terms of outreach and financial portfolio.

Indeed, this book lays another feather on the hats of these two institutions and CARD MRI as a whole. We extend our warmest congratulations! We are so proud of you both!

Glenda C. Magpantay Maria Sharon D. Roxas Lerma L. Lailo Rizaline Manalo

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