Higgins will be replaced by former Birmingham Midshires managing director Dan Watkins.
HBOS has undergone a re-structure which will see Anon UK director and former chief operating officer Philip Gore-Randall join the firm next month as chief operating officer.
In addition, former group finance director Mike Ellis is rejoining the group and the board in Septmeber to resume his previous responsibilities as finance director.
Ellis re-joins following current group finance director Phil Hodkinson’s decision to retire next April.
Chief executive for Insurance & Investment Jo Dawson will take responsibility with immediate effect for retail distribution – including the retail branch network, and HBOS’s other retail sales, intermediary and specialist banking teams – in addition to her existing insurance & investment responsibilities.
In an announcement to the London Stock Exchange, HBOS says: “Following these structural changes, Benny Higgins, chief executive of retail, has decided to leave the group. He will leave at the end of the year and will work with Jo Dawson and Dan Watkins in the interim period”