The group also revealed that it had also accepted the resignation of Tom Wood, Chief Financial Officer, who will leave the company at the end of the month.

The £9m charge is expected to be booked on impacted facilities of £14.7m, but Shawbrook has reassured investors by saying the irregularities were as a result of a number of loans being underwritten in its asset finance business that did not meet its strict lending criteria. This has since been rectified.

Shawbrook is confident that the upgraded risk management systems and controls will prevent a recurrence of this incident and Steve Pateman, CEO, said while this had been extremely disappointing, he was glad it had been investigated thoroughly and appropriate action had 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.

"While the additional impairment charge arising from these irregularities will impact pre-tax profit for the year, performance is otherwise in line with our expectations. 

“Our specialist and diversified market positioning provides a significant advantage as the group continues to grow strongly and deliver superior returns through a strong balance sheet, a stable funding platform and a clearly articulated strategy."

Dylan Minto, current Director of Strategy, will now become interim CFO as a result of Tom Wood’s departure.

“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,” commented Steve.

“He leaves with our appreciation and best wishes for the future.”

Shawbrook has already begun to look for a new permanent CFO, while Tom confirmed he decided to step down in order to spend more time with his family.

"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."