NEW JOBS - AUSTRALIAN BANKING SECTOR

03.08.2007(16:49): Commitment to 160-branch expansion reaffirmed by HBOS Australia

HBOS Australia has reaffirmed its commitment to almost tripling its presence in the country in spite of the likely short-term impact upon its bottom line.

This week, the overseas subdivision of the Scottish banking giant revealed that underlying pre-tax profits grew to AUS $368 million in the six months to June 2007, as opposed to AUS $316 million 12 months earlier, reports the Australian Associated Press.

But in July 2007, the company announced plans to create 160 new branches under the BankWest brand to complement HBOS Australia's 94 existing sites.

And while acknowledging that the expansion will "lead to a significant decline in the rate of profit growth", the company's chief executive David Willis said that the positive financial figures over the last three year have "given us a lot of confidence to embark on the next stage".

Some 125 high street branches and 35 business-orientated facilities are to be opened in total by HBOS Australia, with some scheduled to open before the end of 2007.

It is expected that the development will create thousands of new jobs in the Australian banking sector.