Shawbrook to take £9m charge following irregularities in asset finance division

Shawbrook Group will take a £9m impairment charge after finding "irregularities" in asset finance book.

Shawbrook said a number of loans were underwritten in its asset finance business that did not match its lending criteria.

The problems were identified after the group upgraded its risk management systems and controls earlier this year.

Steve Pateman (pictured), chief executive at Shawbrook Bank, said: "While this is extremely disappointing, the irregularities were identified by the upgraded risk management systems and controls we implemented earlier this year," said chief executive .

"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."

The news could see Shawbrook facing further losses in the stock market. Following the vote to leave the EU Shawbrook saw its shares fall by 45% and could now be set for a further fall.