CGI and National Bank of Canada sign long-term service agreement

Rhea-AI Summary

CGI (NYSE: GIB) (TSX: GIB.A) has announced the renewal of its partnership with National Bank of Canada for 10 years. The partnership will focus on delivering technology services and market-leading solutions to enhance client experience and drive operational excellence. This agreement strengthens the 20-plus year partnership between the organizations, with CGI delivering banking insights, expertise, and a portfolio of services including business consulting, innovative project development, systems integration, and wealth and payment solutions.

Insights

Financial Analyst

The extension of the partnership between CGI and the National Bank of Canada for a decade is a significant indicator of CGI's robust position in the financial services sector. This long-term commitment suggests a stable revenue stream for CGI and reflects confidence in its ability to deliver valuable technology services. The partnership's focus on enhancing client experience and operational excellence is expected to contribute to the bank's competitive edge, potentially leading to increased customer retention and acquisition.

From an investment perspective, such strategic alliances often result in improved earnings visibility and can positively influence CGI's stock valuation. Additionally, the partnership may lead to cross-selling opportunities and expansion of CGI's service offerings, which would diversify and strengthen its revenue base. The market typically responds favorably to announcements indicating long-term business stability and growth prospects.

Market Research Analyst

In the context of digital transformation within the financial services industry, CGI's renewed partnership with the National Bank of Canada is a testament to its competitive market position. The demand for innovative project development, systems integration and wealth and payment solutions is growing as banks seek to modernize their operations and improve customer experience. CGI's ability to secure a decade-long agreement reflects the company's adaptability and commitment to evolving industry needs.

The partnership is likely to enhance CGI's brand reputation and could serve as a case study to attract similar deals with other institutions, potentially leading to market share growth. Stakeholders should monitor CGI's performance metrics closely, as successful execution of this partnership can set a precedent for future contracts and partnerships within the industry.

Technology Consultant

The digital transformation in banking is a critical area of growth, with institutions seeking to leverage technology to stay competitive. CGI's continued partnership with the National Bank of Canada highlights its expertise in delivering technology solutions that align with the bank's strategic objectives. This includes the integration of advanced digital platforms and services that can streamline operations and enhance the customer journey.

As financial institutions increasingly rely on technology partners to navigate the complexities of digital innovation, CGI's role in this transformation is crucial. Their ability to deliver a comprehensive portfolio of services, from business consulting to payment solutions, positions them as an integral player in the financial technology space. This partnership could serve as a catalyst for CGI's further growth in the FinTech market.

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www.cgi.com/newsroom

The renewed partnership will help the Bank advance its digital transformation

MONTRÉAL, Jan. 25, 2024 /PRNewswire/ - CGI (NYSE: GIB) (TSX: GIB.A) announces today that National Bank of Canada has renewed its partnership with CGI for 10 years. CGI will deliver a wide range of technology services and market-leading solutions to help the Bank further enhance its client experience and drive operational excellence.

"CGI is a trusted partner in the financial services sector," says Julie Levesque, Executive Vice-President - Technology and Operations, National Bank of Canada. "We value CGI's expertise and commitment to excellence that will play an important role in our ongoing efforts to meet the evolving needs of our clients and stay at the forefront of the financial services industry."

The agreement strengthens the 20-plus year partnership between the organizations, with CGI delivering banking insights, expertise and a portfolio of services including business consulting, innovative project development, systems integration, and wealth and payment solutions.

"We are delighted to continue our journey with National Bank of Canada," says Michael Godin, CGI Senior Vice-President, Greater Montréal. "This agreement exemplifies the trust National Bank of Canada has in CGI's capabilities and we look forward to bringing the best of CGI globally to help the Bank accelerate its transformation."

With four decades of experience in the financial services industry, CGI serves leading financial institutions across the globe, including 15 of the top 20 banks. As the banking world rapidly changes, CGI helps banks adapt, future-proof, and outperform the competition, driving customer value and continuous growth. For more information about CGI's services in the banking sector, visit cgi.com.

About CGI

Founded in 1976, CGI is among the largest independent IT and business consulting services firms in the world. With 91,500 consultants and professionals across the globe, CGI delivers an end-to-end portfolio of capabilities, from strategic IT and business consulting to systems integration, managed IT and business process services and intellectual property solutions. CGI works with clients through a local relationship model complemented by a global delivery network that helps clients digitally transform their organizations and accelerate results. CGI Fiscal 2023 reported revenue is $14.30 billion and CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB). Learn more at cgi.com.

Forward-looking information and statements

This press release contains "forward-looking information" within the meaning of Canadian securities laws and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other applicable United States safe harbours. All such forward-looking information and statements are made and disclosed in reliance upon the safe harbour provisions of applicable Canadian and United States securities laws. Forward-looking information and statements include all information and statements regarding CGI's intentions, plans, expectations, beliefs, objectives, future performance, and strategy, as well as any other information or statements that relate to future events or circumstances and which do not directly and exclusively relate to historical facts. Forward-looking information and statements often but not always use words such as "believe", "estimate", "expect", "intend", "anticipate", "foresee", "plan", "predict", "project", "aim", "seek", "strive", "potential", "continue", "target", "may", "might", "could", "should", and similar expressions and variations thereof. These information and statements are based on our perception of historic trends, current conditions and expected future developments, as well as other assumptions, both general and specific, that we believe are appropriate in the circumstances. Such information and statements are, however, by their very nature, subject to inherent risks and uncertainties, of which many are beyond the control of CGI, and which give rise to the possibility that actual results could differ materially from our expectations expressed in, or implied by, such forward-looking information or forward-looking statements. These risks and uncertainties include but are not restricted to: risks related to the market such as the level of business activity of our clients, which is affected by economic and political conditions, additional external risks (such as pandemics, armed conflict, climate-related issues and inflation) and our ability to negotiate new contracts; risks related to our industry such as competition and our ability to develop and expand our services, to penetrate new markets, and to protect our intellectual property rights; risks related to our business such as risks associated with our growth strategy, including the integration of new operations, financial and operational risks inherent in worldwide operations, foreign exchange risks, income tax laws and other tax programs, the termination, modification, delay or suspension of our contractual agreements, our expectations regarding future revenue resulting from bookings and backlog, our ability to attract and retain qualified employees, to negotiate favourable contractual terms, to deliver our services and to collect receivables, to disclose, manage and implement environmental, social and governance (ESG) initiatives and standards, and to achieve ESG commitments and targets, including without limitation, our commitment to net-zero carbon emissions by 2030, as well as the reputational and financial risks attendant to cybersecurity breaches and other incidents, and financial risks such as liquidity needs and requirements, maintenance of financial ratios, interest rate fluctuations and the discontinuation of major interest rate benchmarks and changes in creditworthiness and credit ratings; as well as other risks identified or incorporated by reference in this press release, in CGI's annual MD&A and in other documents that we make public, including our filings with the Canadian Securities Administrators (on SEDAR+ at www.sedarplus.ca) and the U.S. Securities and Exchange Commission (on EDGAR at www.sec.gov). Unless otherwise stated, the forward-looking information and statements contained in this press release are made as of the date hereof and CGI disclaims any intention or obligation to publicly update or revise any forward-looking information or forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. While we believe that our assumptions on which these forward-looking information and forward-looking statements are based were reasonable as at the date of this press release, readers are cautioned not to place undue reliance on these forward-looking information or statements. Furthermore, readers are reminded that forward-looking information and statements are presented for the sole purpose of assisting investors and others in understanding our objectives, strategic priorities and business outlook as well as our anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes. Further information on the risks that could cause our actual results to differ significantly from our current expectations may be found in the section titled Risk Environment of CGI's annual MD&A, which is incorporated by reference in this cautionary statement. We also caution readers that the above-mentioned risks and the risks disclosed in CGI's annual MD&A and other documents and filings are not the only ones that could affect us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial could also have a material adverse effect on our financial position, financial performance, cash flows, business or reputation.

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SOURCE CGI Inc.

FAQ

What is the renewed partnership between CGI and National Bank of Canada about?

The renewed partnership between CGI and National Bank of Canada aims to deliver technology services and market-leading solutions to enhance client experience and drive operational excellence.

How long is the renewed partnership between CGI and National Bank of Canada?

The renewed partnership between CGI and National Bank of Canada is for 10 years.

What services will CGI deliver as part of the renewed partnership with National Bank of Canada?

CGI will deliver banking insights, expertise, and a portfolio of services including business consulting, innovative project development, systems integration, and wealth and payment solutions as part of the renewed partnership with National Bank of Canada.

What is CGI's experience in the financial services industry?

CGI has four decades of experience in the financial services industry and serves leading financial institutions across the globe, including 15 of the top 20 banks.