Bank of Queensland (BOQ) has signed a new five-year IT services contract with long standing supplier HP, which will underpin the organisation's strategic transformation plan.
Up until recently four suppliers were in contention for the contract. HP Enterprise Services, which has been supplying IT to the bank since 2002, was again chosen following an "extensive selection and due diligence process," the bank said in its FY14 results announcement this morning.
The new agreement will enable BOQ to reduce the complexity of its IT environment, and standardise and improve the delivery of IT services across the organisation. It will also increase the speed and quality of project delivery, and reduce overall IT operating costs, the bank said.
BOQ's operating expenses grew 6 per cent during FY14 due to investments in frontline capabilities to open more distribution channels. These included the expansion of the BOQ's business banking capability, creating of a broker support network, and mobile banking unit.
"There has been a significant investment in productivity improvement such as the digitisation of the back office, which will be implemented in 2015," said acting CEO, Jon Sutton.
Meanwhile, BOQ reported a statutory profit after tax of $260.5 million for FY14, up 40 per cent on the year earlier. Cash earnings after tax were up 20 per cent to $301.2 million.
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