BankWest, a subsidiary of UK high street banking giant HBOS, has announced that it is launching an initiative in Australia that aims to open more than 160 new branches on the east coast of the country over the next three to four years. This expansion program will be the largest ever branch expansion scheme undertaken in Australia.
The company revealed that it expects to spend GBP160 million during the first year of the project, to be funded by HBOS Australia, the parent company of BankWest. HBOS expects the expansion program to reach more than 11 million potential customers, as well as help create 3,000 new jobs in Australia.
According to the Financial Times, the banking group will almost double its branch presence in Australia on completion of the program, where it currently has 86 branches in western Australia and only four branches in eastern Australia.
The expansion program is in line with the group’s international expansion strategy, and will aim to lure customers away from the country’s four largest banks, National Australia Bank, Westpac, the Commonwealth Bank and ANZ, to enhance its own position in the market. According to HBOS, between them, these four institutions have a total market share of 70%.
David Willis, chief executive of HBOS Australia, stated: We are in a position to move into this new phase in our growth strategy because of our success over the past four years.
Andy Hornby, chief executive of HBOS, added: Australia is one of the fastest growing of the major, developed economies. Its prospects are very good. BankWest’s major expansion is about a better deal for Australian customers and enhanced returns for our shareholders.