SHAREHOLDERS in the Halifax can expect an average windfall of £217 as the bank undertakes a major restructuring programme.

The operation involves the bank returning £1.5 billion in cash to its 3.6 million shareholders in a major share transfer scheme - one of the largest returns of capital ever undertaken in the UK.

Any purchases by the bank of its shares will be in addition to the £745 million buy-back programme undertaken by the group last year.

The announcement came asHalifax announced record mortgage lending for the full year of £14.2 billion, up 18 per cent from 1997.

Pre-tax profit for the year to December 31 increased to £1.71 billion, up from £1.65 billion the previous year.

Deputy chief executive Gren Folwell said the windfall deal was the result of surplus capital at the bank.

"It is a win-win situation for shareholders who have stayed with the bank. It improves the price earnings ratio of the shares and improves the rate of the share itself," he said.

The return of capital is part of a restructuring programme that will see Halifax create a new holdingcompany to oversee the operation of the group.

Shares in Halifax plc will be exchanged for shares in a new holding company on the basis of 37 new shares for every 40 they hold.

Shareholders will also receive 62p for every share they hold. On the basis that the average number of shares held in the Halifax is 350, an ordinary shareholder would receive a payment of £217 on the transfer.

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