Willis expects more bank takeovers

David Willis, the former chief executive of HBOS Australia, said in an exit interview with the Herald Sun that he believes more bank mergers are in the pipeline in 2009.

Willis' employment with HBOS ended yesterday, following the decision of Lloyds TSB - the new owner of HBOS - to sell the BankWest business to Commonwealth Bank, a transaction finalised on December 19.

Jack Dykes, the CEO of BOS International will take over as Australian country head in Australia for HBOS and Lloyds.

Willis told the newspaper that "Funding issues, impaired loans and capital management are all creating a challenging environment for the sector and the regional banks in particular.

"In light of these pressures I think there will be further consolidation in the first half of 2009."

He did not elaborate on targets, though Bank of Queensland announced a strategic review last month that sounds like it is seeking a buyer, while Suncorp in October was seeking to sell its banking business and may yet elect to do so.