Halifax (bank)
From Free net encyclopedia
The Halifax is a commercial bank in the United Kingdom, part of the HBOS Group. Prior to 1997, it was the UK's largest building society, known as the Halifax Building Society. The Halifax is the UK's largest provider of residential mortgages and saving accounts. It is named after the town of Halifax, West Yorkshire where it retains its headquarters.
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History
Building Society
The Halifax was formed in 1853 in Halifax, West Yorkshire as the The Halifax Permanent Benefit Building and Investment Society. The idea was thought up in a meeting room situated above The Old Cock pub close to the original Building Society building. Unlike many UK building societies, the Halifax choose an organic form of growth, and proceeded to open branches throughout the UK. By 1913, it was the largest building society in the UK. In 1928, it merged with Halifax Equitable Building Society, then the second largest building society and was renamed Halifax Building Society.
The society grew in size throughout the 20th century, and remained the UK's largest building society. The deregulation of the financial services industry in the 1980s, saw the passing of the Building Societies Act 1986 which allowed societies greater financial freedoms, and diversification into other markets. Accordingly the Halifax acquired an estate agents to complement its mortgage business. In 1996 it acquired Clerical Medical Fund Managers.
The distinguished diamond shaped head office building (used on marketing material during the 80s and 90s) was extended in to Collinsons. Planning permission was first refused because the masonic hall that once stood was a listed building, but only the front of the building was listed. To get around the planning permission problems, the new Collinsons building was built around the front of the old building front. The old front of the masonic hall can be seen through the windows of the Trinity Road building.
Demutalisation
The deregulation also allowed building societies to demutualise, and became public limited companies instead of mutually owned organisations, owned by the customers who borrowed and saved with the society. In 1995, the Halifax announced it was to merge with the Leeds Permanent Building Society and convert to a plc. The Halifax floated on the London Stock Exchange on June 2, 1997. Over 7.5 million customers of the Society became shareholders of the new bank, the largest extension of shareholders in UK history.
In 1999, the Halifax acquired the Birmingham Midshires Building Society.
HBOS
In 2001, Halifax agreed a mutli billion pound merger with the Bank of Scotland. The new bank, renamed, Halifax Bank of Scotland (HBOS) was to be headquartered in Edinburgh, but retain both bank names. However in Scotland, the Halifax was amalgamated with the Bank of Scotland, and is only used for branding mortgages.
TV adverts
Halifax pioneered an innovative approach to bank adverts in 2000, when it allowed its staff to star in adverts, singing popular songs with the words changed to reflect financial services products. Halifax worker, Howard Brown is the regular star of the adverts. Following the merger with the Bank of Scotland, this practice has continued, with the Bank of Scotland also allowing its staff to take part.