Shawbrook says it will book a £9m impairment charge in the second quarter and that chief financial officer Tom Wood is resigning.
The charge is due to “irregularities” in the asset finance part of the challenger bank’s business finance arm, according to Stock Exchange filings.
The statement says: “The irregularities, which have now been rectified, were the result of a number of loans being underwritten in our asset finance business that did not meet the business’s strict lending criteria.
“This control breach was identified by the group’s upgraded risk management systems and controls, which were implemented following significant investment through 2015 and H1 2016.”
Wood joined Shawbrook in 2012 and will leave on June 30.
Director of strategy Dylan Minto will become interim CFO.
Shawbrook chief executive Steve Pateman says: “Shawbrook has come a long way in a short period and Tom has played an important part in the development of the bank, including helping it to achieve a successful IPO. He leaves with our appreciation and best wishes for the future.”
Wood says: “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.”