Investments in new computer systems at the Commonwealth Bank of Australia (CBA) pushed total IT spending up to A$985 million in 2006.
The bank has reported a three per cent year-on-year rise in IT costs following escalating investment in computers which wiped out gains made from recent cuts to operating costs.
The rise in IT costs came despite CBA completing some major projects during the year, including the rollout of CommSee - a customer management system that was developed internally - across its 1000-strong branch network and seven call centres.
The bank is currently renegotiating its original US$3 billion IT outsourcing contract with EDS which is due to expire next year.
CBA has so far finalised a new five year mainframe and mid-range outsourcing contract with EDS Australia, which is worth around US$350 million, but is still negotiating other parts of the deal.