The Paragon Group of Companies PLC (the group) announced a strategic reorganisation of the group to accelerate its transformation into a diversified specialist banking institution. This reorganisation will increase operational and financial efficiency, enhancing engagement and delivery to customers and business partners and will increase the group's capacity to meet its ambitious growth plans. As part of the reorganisation, the group also intends to change its name to Paragon Banking Group PLC and to refresh its branding. A series of actions have been taken to simplify the group's corporate structure: 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; 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 actions reflect the group's strategy to source the majority of its funding from the retail deposit market, whilst utilising other sources opportunistically. 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.

The group has adopted a new, streamlined management structure, with specific responsibilities as follows: 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. All of the above changes are effective from September 20, 2017. The new management structure brings a more simple and effective governance structure which will enhance operational efficiency and optimise the speed of decision-making.