Wednesday 21 February 2018

Paragon Group of Companies embarks on major shake-up

The lender is overhauling its top team and pushing through a rebrand that will change the company’s name to Paragon Banking Group.

Aerial view of London
Aerial view of London

By Ben Woods, Press Association Chief City Correspondent

The Paragon Group of Companies has launched an organisational shake-up in a bid to become a more efficient and diversified bank.

The lender is overhauling its top team and pushing through a rebrand that will change the company’s name to Paragon Banking Group.

The move is designed to drive growth by making its corporate structure more simple, with its lending and operating activities, and the majority of its loan portfolios, being shifted beneath Paragon Bank.

However, the changes have sparked the exit of Paragon Bank chairman Stephen Blaney.

Paragon chief executive Nigel Terrington said: “This revised organisational structure and the financial efficiency from aligning the vast majority of the group’s business lines under the bank will help optimise funding and capital over time, thereby delivering improved competitiveness for customers, supporting greater capacity for growth and enhancing shareholder returns.”

The FTSE 250 firm said the change reflected its intent to rake in the majority of its funding from the retail deposit market.

It added that the group’s holding company had sold investments in Paragon Finance, and some “origination companies”, to Paragon Bank.

The overhaul will see Fiona Clutterbuck take over as chairwoman of the remuneration committee from Alan Fletcher, who will step down from being an independent non-executive director in February.

Finlay Williamson will take over from Ms Clutterbuck as chairman of the risk and compliance committee, while Patrick Newberry, Barbara Ridpath and Graeme Yorston have joined as non-executive directors.

Paragon chairman Bob Dench said: “I would like to thank Stephen Blaney for his leadership of the bank’s board during the important initial phase and for his support through the transition process over the past year.

“The reorganisation announced today will enhance the group’s governance and means that we have the optimal structure to support our strategy.

“In addition, bringing more of Paragon’s business into the banking framework will make it easier for customers to understand who we are and how we are funded.”

Share in the firm were up more than 1% during morning trading on the London Stock Exchange.

Press Association

Promoted Links

Today's news headlines, directly to your inbox every morning.

Promoted Links

Editors Choice

Also in World News