Further memorandum from HBOS plc
During his appearance before the Treasury Select
Committee on 18 June 2002, our Chief Executive James Crosby promised
that someone would write to the Committee with the answers to
questions he was unable to answer on the day.
Here are the answers to those questions:
The percentage of our credit card
customers who pay off in full their monthly bill and therefore
incur no charges is 29 per cent. In other words, almost one third
of our customers enjoy an interest-free credit every month.
Approximately 63 per cent of HBOS
personal current account customers receive 2 per cent credit interest.
On an annual basis this costs HBOS approximately £37 million.
(In contrast, virtually all of the Big Four's current account
customers receive 0.1 per cent on interest on credit balances
generally up to £100,000.)
Based on the most recent period available
(January 2002 to June 2002) approximately 0.05 per cent of Halifax
current account holders switched to one of our competitors. We
take great pride in this very low figure as it underlines the
competitiveness of our offering.
22 July 2002