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 technology operations.
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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