Halifax remains unsure of plans

HALIFAX has not reached a final decision on whether to pull out of the Irish market and is continuing to review its operations.

Lloyds, which owns Halifax, is understood to have got instruction from the British Treasury to cease lending in Ireland and repatriate assets.

The move is the result of a group review which was started after the British government came to the rescue of Bank of Scotland Ireland’s Edinburgh-based parent bank, HBOS, last September by forcing it to merge with Lloyds TSB.

In August 2006 BOSI announced it was changing the name of its Irish branches to Halifax.

A spokeswoman for Halifax refused to comment on the speculation over the company’s plans.

However an industry source said Halifax has been “effectively out of the market for some time and has stated as much with its excessive borrowing costs of 7% and greater”.

Earlier this year BOSI said its retail arm, Halifax, performed well in 2008, attracting two-in-every five new credit card customers.

The bank also recently launched an expensive advertising campaign with Irish actor Colm Meaney in an effort to drive more business.

BOSI’s entry into the retail banking market came following the purchase of 54 ESB stores for €120 million.