Shawbrook finds breaches in asset finance arm, CFO resigns
Challenger bank Shawbrook disclosed today that it expected to book an additional Â£9 million impairment charge in the second trading quarter due to 'irregularities' in its asset finance business, and that chief financial officer (CFO) Tom Wood has resigned.
The charge relates to some loans being underwritten in that division which did not match its lending criteria, Shawbrook said. It sparked a 28 per cent slump in the bank’s shares early today, but they were later trading down 15 per cent at 139p.
The bank, 75 per cent of whose lending is to small and medium-sized businesses, raised £90m when it floated on the stock market in April 2015.
But the latest resignation means that Shawbrook has seen a change of chairman, chief executive and finance chief since going public. Sir George Mathewson, a former boss of Royal Bank of Scotland, stepped down as chairman last summer to be replaced by Iain Cornish, the former chief of Yorkshire Building Society.
Steve Pateman, head of UK banking at Santander, replaced Richard Pyman as Shawbrook chief executive last January, the latter having been on temporary leave of absence since May due to illness.
The bank said today that Dylan Minto, director of strategy, would become interim CFO. It praised Wood’s “important contribution” to the bank.
Wood, who will leave this Thursday, said in the group’s statement that he wanted to spend more time with his family. Shawbrook said it had now upgraded its risk management systems.