ANZ Bank will spend $118 million on core banking systems integration in New Zealand this year, it reported today.
The bank was five months into adopting New Zealand subsidiary The National Bank’s FIS Systematics platform across both networks, and expected to complete integration by late 2011.
In its half-year report (pdf), released this morning, ANZ National chief David Hisco reported spending NZ$141 million ($108 million) on the project in the six months ending 31 March.
The bank expected to incur further project costs of around $10 million in the second half of the year.
The project was announced last November, with an aim to reduce “duplicated time and wasted effort” involved in running two banking IT systems (pdf).
Hisco today said ANZ would deliver “further operational efficiencies and improved service levels and business outcomes” from systems integration and a simplified regional management structure.
The bank also reported spending $36 million in H1 2011 on converting the technology and processes of acquired Royal Bank of Scotland businesses in Asia to those of ANZ.
Integration was on track for completion by September, it said, forecasting further costs of $30 million to $40 million, net of tax.
Compared with half-year results ending in September 2010 and March 2010, ANZ today said its computer costs were up 15 percent due to contractor costs and technology projects.
ANZ said this period’s $108 million ANZ National technology project cost $75 million after tax. ANZ posted a profit of $2.66 billion for the half.
The bank’s chief executive Mike Smith told ABC News he was pleased with the result, and the impact of the global financial crisis had washed through the economy.
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Issue: 347 | March 2016