LBC Express Holdings, Inc. said on Monday a board director in one of its subsidiaries was temporarily disqualified by the Bangko Sentral ng Pilipinas (BSP) from becoming a director or official of any financial institution.
“(LBC Express Holdings) was advised by LBC Express, Inc. that its director, Santiago G. Araneta, received a letter from the BSP regarding the approval by the Monetary Board of a resolution temporarily disqualifying Mr. Araneta from becoming a director and/or officer in any BSP-supervised financial institution,” the company said in a disclosure to the stock exchange.
LBC Express said the disqualification was related to the closure of LBC Development Bank, Inc. (LBC Bank), where Mr. Araneta was a director.
“The involvement of Mr. Araneta, if any, in the closure and the acts that led to the same is currently being evaluated by the BSP. Pending completion of such evaluation, it appears that the BSP has imposed such temporary disqualification,” the listed company said.
In 2011, the BSP Monetary Board ordered the closure of LBC Bank, which affected some 33,191 accounts with an estimated total deposit worth P5.95 billion.
In 2016, the Philippine Deposit Insurance Corp. (PDIC) filed a complaint with the Department of Justice against LBC Express owners for estafa and violation of the PDIC Charter, which led the bank to lose P1.8 billion.
Parent company LBC Express Holdings reported a 71% increase in net income during the nine-month period to P1.265 billion, as revenues rose 27% to P9.658 billion. — Denise A. Valdez