Santander could take on Halifax agencies shed by Lloyds

Lloyds, which acquired the network of independent agencies with its acquisition of HBOS, said last week it would close its remaining 265 agencies by November.

Santander is understood to be considering taking on 50 to 60 of the agencies, which offer basic banking services typically from the offices of solicitors, estate agents and independent financial advisors.

It is thought the Spanish bank will add take-on agencies across the UK, to fill in gaps in its service, in areas such as Cornwall.

Lloyds said it was reviewing its agency or counter service in August. The agencies offer services such as deposits and withdrawals, and are a relic of Halifax's building society days.

It closed 121 counters late last year when it sold the Halifax Estate Agency chain to York's LSL Property Services. Of the remaining 265 agencies earmarked for closure, 61 are in Yorkshire.

People working at the agencies are not employed by Lloyds, and it is not clear how many jobs are affected by the closures.

While most banks are dropping agency services, Santander is understood to have warmed to the model after buying Bradford & Bingley's retail network and Alliance & Leicester during the credit crunch.

It has about 140 agencies from B&B, mainly in Yorkshire, and about 50 former A&L agencies in the Midlands .

Santander is keen to bolster its high street presence and has converted former Abbey and B&B branches to its brand. It is the only remaining bidder in the auction of 318 branches being sold by Royal Bank of Scotland after Yorkshire Bank owner National Australia Bank dropped out.