Banking brands to remain after planned HBOS rescue

Major banking brands Lloyds TSB, Halifax and Bank of Scotland will all remain on the British high street after the planned HBOS rescue, Lloyds TSB said today.

The banking giant said Lloyds TSB and Halifax would operate alongside each other in England and Wales, while Bank of Scotland would become the group’s brand in Scotland.

But there was no update on potential branch closures or the impact on staff of the takeover plans.

Lloyds said it would not give further details until it had finished a detailed review on the “size and shape” of the branch networks.

Eric Daniels, Lloyds TSB group chief executive, said: “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.”

The deal would create the UK’s biggest bank, set to be called Lloyds Banking Group, with about 145,000 staff and 3,000 branches.

Lloyds shareholders overwhelmingly backed the takeover last month, but HBOS investors have yet to approve the deal. They will get the chance to have their say next Friday, although the vote comes amid mounting opposition to the deal in Scotland.

The Competition Appeal Tribunal will next week reportedly hear a legal challenge lodged by an alliance of Scottish businessmen, HBOS account holders and investors – with a ruling potentially before the HBOS shareholder meeting.

The takeover is set to complete in January if it gets the go-ahead.