HBOS cuts 425 jobs in UK

HBOS, the UK parent of BankWest, has reportedly confirmed it will axe 425 jobs and close one of its five mortgage brands to new business in order to cut costs.

The Financial Times reported that the bank was aiming to reduce duplication between brands.

Last month HBOS reported a 56 per cent fall in net profits for the first half of 2008 due to credit crunch turbulence, while earnings at its Australian arm dipped 12 per cent.

The financial report followed a disastrous $8 billion rights issue where 92 per cent of HBOS shareholders shunned the raising.

The latest news from HBOS follows an earlier announcement from the bank which said it was considering disposals or winding down businesses.

Over the past few months, there has been speculation that BankWest could be sold off however HBOS Australia chief executive David Willis last month hosed down the rumours.