In a final pitch, the bank saw presentations from three Scottish agencies - Newhaven, The Union and 1576.
In 2006, HBOS made the decision to move the retail portion of its Bank of Scotland account north of the border in a bid to reposition itself as a local bank.
The company historically used Delaney Lund Knox Warren & Partners to adapt and rebadge its existing English advertising work for the Scottish market.
However, because of the proliferation of digital channels, it quickly became apparent to the Scottish viewers that they were just seeing reworked ads.
Jonathan Shinton, a partner at Newhaven Communications, said: "The pitch process was intensive and the bank wanted us to be able to produce a strategy that differentiated the identity of the brand from its rivals, while using its Scottish heritage to connect with its consumers."
Steve Griffiths, the head of Bank of Scotland marketing, said: "Throughout the process, we have placed a strong emphasis on delivering innovative and exciting campaigns. We're looking forward to working with Newhaven, it is a Scottish agency with a great understanding of Scottish consumers."
DLKW will continue to work on every other section of the HBOS account, which includes card services, corporate and financial advice.