HBOS agrees to sell Australian banking business

Troubled bank Halifax Bank of Scotland has agreed to sell its Australian banking business for £1.2bn (€1.5bn) in a bid to boost its balance sheet.

The bank said the sale of Bank of Western Australia Ltd and St Andrew’s Australia Pty Ltd would “further enhance the group’s capital position and reduce the group’s wholesale funding requirements.”

The retail, business banking, insurance and wealth management businesses will be sold to Commonwealth Bank of Australia subject to approval by Australian regulators.