LONDON (dpa-AFX) - Paragon Group Of Companies plc. (PAG.L) said that it intends to change its name to Paragon Banking Group PLC and to refresh its branding, as part of reorganisation of the Group to accelerate its transformation into a diversified specialist banking institution. The Group has adopted a new, streamlined management structure, with specific responsibilities. The changes are effective from 20 September 2017.
The Group's holding company, following PRA and FCA approval, has sold investments in Paragon Finance PLC and certain legacy origination companies to Paragon Bank PLC. All of the changes are effective from 20 September 2017.
As a consequence, all the Group's lending and operating activities, together with substantially all its loan portfolios including the Group's SPVs, now sit below Paragon Bank within the Group structure, with the exception of Idem Capital and certain other, non-material, entities.
All the Group's employees are now employed by Paragon Bank or one of its operating subsidiaries.
These changes will mean that Paragon Bank no longer requires substantial periodic capital injections from the Group, as it will be self-sustaining and consistently profitable. Over time, they are also expected to have a favourable impact on the Group's cash requirements and working capital cycle.
Patrick Newberry and Finlay Williamson join the Group Board, currently Non-Executive Directors of Paragon Bank PLC. Finlay becomes Chairman of the Risk & Compliance Committee, in place of Fiona Clutterbuck, and a member of the Audit Committee, and Patrick becomes a member of the Audit, Risk & Compliance and Nomination Committees.
Fiona Clutterbuck becomes Chairman of the Remuneration Committee, taking over from Alan Fletcher who will cease to be an independent non-executive director in February 2018.
Barbara Ridpath and Graeme Yorston join as Non-Executive Directors and become members of the Audit Committee and the Risk & Compliance Committee.
Stephen Blaney, formerly Chairman of Paragon Bank, leaves the business after leading the Bank's Board during its initial growth phase.
Executive and Non-Executive Directors of the Group Board now also constitute the Board of Paragon Bank.
Copyright RTT News/dpa-AFX