HBOS's BankWest expands with 160 Australia branches

BankWest will open 160 new branches to challenge the dominance of Australia's big four lenders in the first major strategic expansion by its parent group, Britain's HBOS.

HBOS said yesterday it plans to spend £160 million, this year and next year, to achieve at least half the expansion.

The programme will be completed in three to four years.

The rollout will enlarge BankWest's footprint to 250 branches, with all the new branches on the east coast, notably around Sydney, Melbourne and Brisbane. It currently has 86 branches in western Australia and just four in the east.

The move is the first major expansion by Andy Hornby, who took over as HBOS chief executive office a year ago and has targeted international expansion for Britain's fourth biggest bank, which earns about 85 per cent of its profits in Britain.

HBOS Australia made a profit of £278 million last year, up 24 per cent from the year before.

BankWest's expansion will add 3,000 new jobs and reach 11 million potential new customers, it said in a statement. It plans to open 125 retail branches and 35 branches for business customers.

"BankWest will concentrate on winning new customers, especially from the Big Four, which have a relationship with about 70 per cent of Australian customers," the statement added.

The Australian banking industry is dominated by the big four lenders - National Australia Bank Ltd., Commonwealth Bank of Australia Ltd., Australia and New Zealand Banking Group Ltd. And Westpac Banking Corp.