Halifax Bank of Scotland is Britain's biggest provider of home loans. -- PHOTO: AFP
LONDON - TROUBLED British bank HBOS announced on Tuesday it would sell its Australian banking business to Commonwealth Bank of Australia for US$2 billion (S$2.93 billion).
It said the sale of Bank of Western Australia and St Andrew's Australia Pty would 'further enhance the group's capital position and reduce the group's wholesale funding requirements'.
The deal, which is subject to approval by Australian regulators, comes after HBOS shares fell 41.5 per cent on Tuesday during a day of turmoil for British banks.
HBOS - Britain's biggest provider of home loans - faced collapse owing to massive write-downs caused by the US subprime home loan crisis and resulting credit crunch, and agreed to a merger with rival Lloyds TSB last month. -- AFP
