MERGER partners Halifax and Bank of Scotland have set a target date of September 10 for the creation of new bank HBOS.

The timetable for the completion of the alliance will see both companies stage extraordinary general meetings at the end of next month.

The update came as the pair announced upbeat trading statements and the names of ten non-executive directors due to serve on the HBOS board.

Five directors from each board have been chosen, including Bank of Scotland's former British Railways Board chairman Sir Bob Reid and Charles Dunstone, a Halifax director and the boss of retailer Carphone Warehouse.

Others include Sir Ronald Garrick, chairman of the engineering group Weir, and Lord Simpson of Dunkeld, a former chief executive of Lucas Industries.

The timetable will see Bank of Scotland shareholders vote on the merger at the Edinburgh Conference Centre, on July 24. Halifax will follow suit at the Sheffield Arena, the following day.

Shareholders should receive documentation relating to the deal next week.

The completion is set for September 10, although the date is not set in stone.

However, customers are unlikely to notice any difference as the banks intend to retain their existing identities on the high street.

Bank of Scotland and Halifax confirmed their £28bn merger plan last month, claiming the alliance would create the country's fifth largest bank, and a threat to the domination of the "Big Four" banks.

Both banks showed yesterday how the merger had not been a distraction, as they posted strong trading statements.

Bank of Scotland said it had seen "robust business growth" across the group in the three months to May 31.

It added that income growth continued to exceed the growth in operating expenses.

Halifax said that it was exceeding its targets for the year, with sales growth expected across its range of products.

Halifax boss James Crosby will be chief executive of the new group, with Halifax chairman Lord Stevenson keeping the same role at HBOS.

The corporate headquarters will be at Bank of Scotland's existing head office, in Edinburgh.