Lending irregularities cost Shawbrook £9m

The Group says the control breach was identified by its upgraded risk management systems and controls, which would prevent the recurrence of such irregularities in the future.

CEO Steve Pateman said that whilst the additional impairment charge will impact pre-tax profit for the year, "performance is otherwise in line with our expectations". 

Pateman added: “While this is extremely disappointing, the irregularities were identified by the upgraded risk management systems and controls we implemented earlier this year. They have been investigated thoroughly and appropriate action has been taken. 
 
“Since the year end we have simplified our business model into three divisions with clear management lines, implemented an upgraded risk management framework and are confident that our disciplined approach to risk is fully embedded across the business. 

In a separate announcement, Shawbrook also reported the resignation of director Tom Wood. 
 
Tom joined Shawbrook in 2012 and helped guide the Company through its IPO and first year as a quoted company. He will leave the Company on 30th June and a search for his successor is underway.
 
Dylan Minto, who is currently Director of Strategy, will become interim CFO. 
 
Tom Wood commented: "After a hugely enjoyable four years with Shawbrook, and the immense privilege of leading the Group for a period of time post the IPO, I have decided that after a very intense couple of years I need to make more time for my family. I have seen little of them in the past two years.

"I am confident that the next steps in the Shawbrook journey under the leadership of Steve, the Board and the senior team will be as successful as the first years of the Group."