HBOS is a major bank . It is the holding company for Bank of Scotland plc , which operates the Bank of Scotland and Halifax brands in the UK , as well as HBOS Australia and HBOS Insurance & Investment Group Limited , the group 's insurance division . HBOS was formed by the 2001 merger of Halifax plc and the Governor and Company of the Bank of Scotland , and the formation of HBOS was heralded as creating a fifth force in British banking as it created a company of comparable size and stature to the established Big Four UK retail banks .