Halifax and the Bank of Scotland will survive on the high street after the HBOS merger with Lloyds TSB completes.
The two banking groups will combine as a single entity in January 2009 to create the largest network of bank branches in the UK. Lloyds TSB says it is committed to a multi-brand strategy, and will therefore keep two of the strongest HBOS brands, Halifax and Bank of Scotland.
It has not yet confirmed whether HBOS’ other brands – including Intelligent Finance, Scottish Widows and former mutual Birmingham Midshires – will survive the merger.
Lloyds TSB says it is working on a “detailed review” of the new group's portfolio of brands, which will not be completed for some time. Until then, there will be no change to any of the current brands, customers, branches or staff.
Eric Daniels, group chief executive at Lloyds TSB, says: "Lloyds TSB is committed to a multi-brand strategy for its banking business.
“We believe that our brands are the strongest in the UK retail financial services sector and we are very focused on growing and developing them.”
Although some of HBOS’ retail presence on the high street will continue after January 2009, its corporate banking business is likely to be brought under the Lloyds TSB brand. This is expected to take between two or three years.