The NAB had earlier announced the replacement of group chief information officer Ian Crouch with the executive general manager of financial services Australia, Ian MacDonald, as part of a management restructure designed to rebuild the NAB's reputation. Information technology sits in a support unit within the NAB, while a products unit is responsible for end-to-end product management and integration of risk, information technology and operational processes into products. The announcement follows the appointment last month of Michelle Tredenick as chief information officer for the NAB in Australia. They were down 3.2 percent at 401.75p, after touching 387.5p, their lowest for five years.
#BANK WRITEDOWN SOFTWARE#
The highly-publicised ISI project has been completely laid to rest, with the enterprise resource planning strategy "ceased" and implementation of further modules of the software "indefinitely deferred," the NAB said. Royal Bank of Scotland shares also remained under pressure on fears it may make a big writedown. Previously, the ISI program had been amortised over 10 years and a group bank teller platform, customer relationship management system in Australia and data warehouse over eight years.
The NAB also said it had reviewed software amortisation periods and reduced them to a maximum of five years. These actions, the NAB said, reduced the written down value of software on the balance sheet as at 30 September 2004 to AU$655 million. The recoverable amount of the ISI software was determined through a valuation methodology performed by an external party, the NAB said. The post-tax charge to the NAB's profit and loss totalled AU$307 million. Other software with a carrying value of AU$209 million - employed in the Financial Services operations in Australia, Europe and New Zealand, corporate and institutional banking and the Wealth Management operations in Europe and Australia - was also written off as a result of the review. The NAB said today that, after an extensive review, it had written down application software employed in the failed Integrated Systems Implementation (ISI) project, which had supported the enterprise resource planning strategy, by AU$200 million to its recoverable amount of AU$87 million. The National Australia Bank has taken a pre-tax writedown of AU$409 million on its software assets for the year as botched initiatives such as its notorious global enterprise resource planning project take their toll on the financial institution's full-year bottom line.
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