HBOS, the UK banking corporation formed by the merger of Halifax and Bank of Scotland, has announced that it is looking to lower its expenditure levels even further by wiping GBP300 million off its costs by 2010.
HBOS is already reported to be one of the most cost-efficient banks in the UK with a cost to income ratio of just over 40%. However, the lender is now looking to lower that ratio to a percentage in the mid-thirties.
The group hopes to make the further savings by improving its buying methods, with more bulk buying, and by streamlining its IT systems.
HBOS management has pledged not to cut jobs or move operations offshore. Unions will be relieved to hear this, especially in the light of the recent announcement by Aviva that it plans to cut 4,000 jobs at its UK-based Norwich Union business over the coming years.