(16 June 2008 – Australia) HBOS has indicated that it is in Australia for the long term, committing to the BankWest business.Amid speculation that the Edinburgh based HBOS was looking to sell the Australian bank due to sub-prime related problems, retail chief Ian Corfield, said that the bank was completely committed to Australia for the long term.
Not only has there been verbal confirmation of their intention to stay, BankWest also recently announced the decision to make a significant investment into Victoria.
The bank announced that it will open 50 new branches across the state over the next 4 years.
The new stores, which are designed to complement the business banking presence in the state, will employ 700 new staff.
The bank said that the retail expansion complements BankWest’s already strong presence in business banking in the state, having been in Victoria for over 15 years and in 2006 moving their business banking headquarters to Melbourne.
BankWest said that the new stores are a continuation of its east coast expansion strategy, which is a clear indication of their long term intentions.
Corfield also looked to reassure customers of BankWest. He said that BankWest is completely safe as it is fully underwritten by HBOS. While BankWest is supported by its own balance sheet, it is also backed up by the balance sheet of its parent.