Shares in challenger bank Shawbrook crash after impairment charge
Shares in challenger bank Shawbrook have crashed by more than 14% after it was hit with a £9 million impairment charge.
The firm said the financial blow came after it spotted "irregularities" in one office within its asset finance business where some loans broke its lending rules.
It said the charge would impact its pre-tax profits for the year.
The firm also announced that its director of strategy, Dylan Minto, would become interim chief financial officer after Tom Wood resigned.
Mr Wood, who joined Shawbrook in 2012 and helped launch its stock market floatation last year, will step down on June 30.
Chief executive Steve Pateman said: "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."
He added: "Whilst the additional impairment charge arising from these irregularities will impact pre-tax profit for the year, performance is otherwise in line with our expectations."
Mr Wood said after a "very intense couple of years" he needed to make more time for his family.