The newly merged Bendigo and Adelaide Bank (BAB) today
said its IT costs over the past six months had continued to rise as
it continued its drive to integrate the pairs' previously separate
Financial statements released today revealed the bank's IT
costs rose to $27.8 million for the six months to 31 December,
up 35 per cent on the same period 12 months earlier. The total for
the six months to June 2008 was $23.6 million.
The bank said the rise was due to the inclusion of Adelaide
Bank's costs, but also due to increased computer hardware leasing,
data communications and "software maintenance costs flowing from
growth in the network and upgrade of systems". The bank's
communications and postage category also rose 24 per cent to $16.8
million, again mostly due to the merger.
In associated documents, the bank said it saw continued
investment in technology, service and delivery options as an
important factor going forward.
Following the merger, Bendigo and Adelaide Bank is one of the
nation's larger mid-tier banks. Its technology division is led by
chief information officer Andrew Watts, a long-time IT executive
with the pre-merger Bendigo Bank.
The news comes as similar results at the Commonwealth Bank of Australia revealed the much larger bank was slashing its IT spend for the second half-year in a row.
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