Select Committee on Treasury Appendices to the Minutes of Evidence


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

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