The Lloyds TSB brand is to disappear from the Scottish high street to be replaced by Bank of Scotland after the company takes over HBOS.

Lloyds TSB yesterday confirmed the news revealed by The Herald on Thursday that the enlarged group's trading identity north of the border will be Bank of Scotland, although no decision has been taken about use of the Bank of Scotland corporate brand outside Scotland.

The combination, as Lloyds Banking Group, will take effect from January 19, providing the deal is approved by HBOS shareholders.

But SNP MSP Alex Neil said: "The announcement... looks like nothing more than Lloyds TSB trying to bribe HBOS shareholders before their vote next Friday."

Lloyds TSB said yesterday that Bank of Scotland will be used north of the border for retail and corporate business and the Lloyds TSB name phased out over the next two to three years.

Lloyds TSB currently has 185 branches north of the border and HBOS 320, although some could close as the company seeks £1.5bn of savings. South of the border the Halifax brand, the other part of HBOS, will operate alongside Lloyds TSB.

The corporate banking business in England and Wales will use the Lloyds TSB brand.

Archie Kane, who runs Lloyds TSB's insurance and investments businesses, will represent Lloyds Banking Group in Scotland from the current HBOS offices on The Mound in Edinburgh but will retain an office at Lloyds TSB's London HQ.

He said: "The combined group will have a very strong presence in Scotland. Bank of Scotland is an iconic brand which we look forward to developing even more in the years to come."

Asked if Kane, who currently oversees Lloyds TSB's Edinburgh-based insurance arm Scottish Widows, will spend more time north of the border after the merger, a spokeswoman said: "He will spend the majority of his time in Scotland although I'm not sure whether that will necessarily be more than at the moment."

Kane will be supported by a Scottish executive committee. The future of Susan Rice, Lloyds TSB Scotland's chief executive since 2000, will be confirmed before Christmas.

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