Brief History

The Governor and Company of the Bank of Scotland was established by an Act of the Parliament of Scotland on 17 July 1695, the Act for erecting a Bank in Scotland, opening for business in February 1696. Although established soon after the Bank of England (1694), the Bank of Scotland was a very different institution. Where the Bank of England was established specifically to finance defence spending by the English government, the Bank of Scotland was established by the Scottish government to support Scottish business, and was prohibited from lending to the government without parliamentary approval.

The arrival of North Sea Oil to Scotland in the 1970s allowed the Bank of Scotland to expand into the energy sector. The Bank later used this expertise in energy finance to expand internationally. The first international office opened in Houston, Texas, followed by more in the United States, Moscow and Singapore.

In 2001, the Bank of Scotland and the Halifax agreed a merger to form HBOS. The headquarters was to stay in Edinburgh, and both bank’s brands would continue to be used.

Corporate structure

The Bank has several subsidiaries and brands including:

• Halifax
• Intelligent Finance
• Birmingham Midshires
• Bank of Scotland Corporate (including the former Capital Bank)
• Banco Halifax Hispania
• Sainsbury’s Bank (50% joint venture with retailer Sainsburys)
• Bank of Scotland Investment Services
• Bank of Scotland Private Banking
• HBOS Financial Services Ltd
• HBOS Insurance & Investment Group Ltd
• HBOS Treasury Services plc
• Halifax Ireland
• Bank of Scotland (Netherlands)