Halifax sees record number switch to the bank

Lloyds, which is 39 per cent owned by the Government, said underlying profits leapt to £1.5bn from £497m a year earlier and lending returned to growth thanks to stronger business borrowing.

Profits were boosted as bad debts plunged by 40 per cent to £1bn and after it slashed costs by another six per cent.

Halifax, which was taken over by Lloyds at the height of the banking crisis when it was part of HBOS, said its focus as a challenger bank to the big four had boosted sales.

David Nicholson, managing director for Halifax, said that 300,000 customers switched to Halifax in 2012.

But in the first two months of 2013, 66,000 customers switched their main bank accounts to Halifax. If this level was to continue it would result in 400,000 customers switching over to Halifax this year.

“We have ambitions to increase main current account numbers by seven per cent this year,” said Mr Nicholson.

As from today, Halifax is lowering the amount customers need to pay into its current account from £1,000 to £750 a month. Anyone switching with a monthly salary of £750 or over will be paid £100 when joining Halifax and will earn £5 a month as long as they stay in credit.

“We’re lowering it to £750 because we want to make sure we are appealing to the mass market,” said Mr Nicholson.

“We’re not doing an HSBC and saying we’re a premier bank, we’re mainstream.”

Halifax’s Savers Prize Draw has now notched up 1.5 million customers 18 months after it launched.

The June super draw will pay out five prizes of £250,000.

Lloyds’ chief executive Antonio Horta-Osorio said the group has made substantial progress during the quarter.

He added he is focused on improving its performance and he has not held talks with the Government or UK Financial Investments (UKFI), which manages Britain’s stake, about a share sale.

“It’s management’s job to operationally prepare the bank as well as possible in order for shareholders to decide about privatisation.

“It is ultimately up to UKFI and the Treasury to decide on that and we have not been holding discussions with them in that regard,” he said.

The Government said that no date has been set for the sale of shares.