Banks

HBOS, the UK's biggest mortgage lender, announced plans to cut 425 jobs and close one of its five mortgage brands to new business as it aims to streamline costs. The bank will stop writing new mortgage loans at its TMB division, a home loan provider in the self-build, self-certified and buy-to-let markets, from late August to reduce duplication between brands. HBOS, which recently reported a 72 per cent drop in first-half profits to £848m, will also stop offering conventional mortgages through its Intelligent Finance subsidiary. Royal Bank of Scotland's efforts to boost its capital reserves suffered a blow after it was forced to scrap the sale of operations in Australia and New Zealand when the last remaining bidder dropped out. Commonwealth Bank of Australia blamed uncertainty in world financial markets as it withdrew from talks to buy the business, valued by analysts at up to A$1bn (£464m).