The merger became effective within four months. The new operation has retained both the Halifax and Bank of Scotland brands and plans to become the pro-competition champion in UK financial services.
HBOS Retail Banking is one of five divisions of the company created out of the merger.
The Retail Banking division operates through five consumer brands serving 20 million people: Halifax, Bank of Scotland, Birmingham Midshires, The Mortgage Business and Intelligent Finance. More than a quarter of the British population have a relationship with at least one of these brands.
In August 2001, HBOS appointed Philip Hanson, general manager of group marketing at Halifax, as head of marketing at HBOS Retail. Halifax Retail chief executive Andy Hornby, to whom Hanson reports, became chief executive of HBOS Retail in July 2001.
The two were behind Halifax's TV ads through Delaney Lund Knox Warren (DLKW), which feature staff members singing about the benefits of the bank.
In October 2001 HBOS awarded its £5m above-the-line account for Bank of Scotland to DLKW following a three-way pitch.
November 2001 saw HBOS appoint Norwich Union's head of customer development, Howard Silby, to fill the newly created role of head of CRM, marketing and customer relations.
His appointment completed the marketing structure put in place at the bank following the merger.
In December 2001, BBJ won the £22m consolidated media account for HBOS, ending Zenith Media's 13-year relationship with the Halifax brand. The result followed a pitch for the business between Zenith and the Carat group, represented by BBJ and Feather Brooksbank, the incumbent on the £5m Bank of Scotland account.
BBJ's London office will run the account, with additional planning and buying from Feather Brooksbank in the Scottish market.
February 2002 saw HBOS hand the £8m advertising account for Bank of Scotland business banking to DLKW, ending speculation that it planned to scrap the Bank of Scotland brand. The rumours began when the Bank of Scotland used a similar TV ad campaign to Halifax.
HBOS had previously said that marketing for the two brands would be kept separate.
The Halifax's latest ad in its series using staff member Howard Brown teams him up with his counterpart from the Bank of Scotland, Angela Anderson to sing the Frank and Nancy Sinatra 60s classic Somethin' Stupid.
Group Operating income £6,869m
Pre-tax profits £3,007m
Employees c. 61,000
(Figures for year to 30 Dec 2001)
Advertising agency Delaney Lund Knox Warren
BBJ, Feather Brooksbank
Philip Hanson, head of marketing
Annual advertising spend (year to March 2002 for Halifax only):
Direct mail £18,456,574
Source: ACNielsen MMS
The Mound, Edinburgh EH1 1YZ
Tel: 0131 470 2000
Fax: 0131 243 5437
Web site: www.hbosplc.com