Oslo Børs VPS Holding 2nd Quarter 2017

Oslo Børs VPS Holding reports a profit of NOK 114 million for the second quarter of 2017 (NOK 82 million) and a profit of NOK 201 million (NOK 130 million) for the first six months of the year.

A more detailed presentation by business areas is provided in the quarterly report (enclosed).

Like the first quarter, the second quarter was characterised by high levels of activity in the primary markets for both equities and fixed income issues. The level of activity in the secondary market for equities was somewhat lower than in the second quarter of 2016.

Reported revenue for the second quarter of 2017 was NOK 259 million, which is NOK 23 million higher than in the second quarter of 2016. Revenue related to listing and registration was in total NOK 26 million higher than in the second quarter of 2016, NOK 2 million of which amount relates to the consolidation of NOTC with effect from the second quarter of 2017. Revenue related to the trading and settlement of equities and fixed income issues was in line with the second quarter of 2016, while revenue related to trading in derivatives was NOK 3 million lower than in the second quarter of 2016. Revenue from the mutual funds area was NOK 2 million higher than in the second quarter of 2016. Reported revenue for the first six months of 2017 was NOK 48 million higher than in the first six months of 2016, with revenue related to listing and registration NOK 48 million higher in the first six months of 2017 than in the same period last year. 

Operating expenses before capitalisation of internal costs, depreciation and amortisation of excess value amounted to NOK 121 million in the second quarter of 2017, an increase of NOK 4 million from the second quarter of 2016. Operating expenses before capitalisation of internal costs, depreciation and amortisation of excess value for the first six months of 2017 were NOK 12 million higher than in the first six months of 2016. The increase principally relates to the modernisation program at VPS, trading system projects at Oslo Børs and the financial sector tax.

Net financial income for the second quarter of 2017 totalled NOK 21 million, an increase of NOK 15 million from the same period in 2016. Net financial income for the first six months of 2017 was also NOK 15 million higher than in the first six months of 2016. The group's acquisition of the remaining 50% of NOTC AS - and its change to a wholly owned subsidiary company from a joint venture - meant that under IFRS the group's previous equity stake in NOTC had to be re-measured. This led to income of NOK 14.6 million being recognised in the quarter, and that net financial income in the quarter has increased accordingly. 

Oslo Børs VPS Holding will - in line with the Oslo Børs Code of Practice for IR - continue to prepare and publish quarterly interim reports. There will be presentations in connection with the second and fourth quarters. The company will as before be available for questions in connection with its quarterly reports.

Operating expenses for 2017 before capitalisation of internal costs, depreciation and amortisation are expected to be in excess of NOK 500 million. This includes expenses in 2017 in relation to a MiFID II version of Oslo Børs' trading system Millennium Exchange, adapting VPS' systems to the EU's CSD Regulation (CSDR), the financial sector tax that was approved by the Norwegian Parliament in December 2016, and the change of CEO at VPS. The financial sector tax consists of an extra payroll tax of 5% on the salaries and other remuneration received by financial sector employees in addition to the corporation tax rate remaining at 25% for financial sector companies.

The group's operating revenue varies in line with the level of activity in the securities market. Oslo Børs VPS is committed to offering a range of products and a pricing structure that are competitive and that encourage active use of the group's services. Oslo Børs VPS anticipates that its marketplace activities will continue to face intense competition, and it also expects increasing competition for the group's post-trade activities. 

For further information, please contact:
CFO Geir Heggem, tel. +47 22 34 17 22 / +47 952 38 811
EVP Corporate Communications Per Eikrem, tel. +47 22 34 17 40 / +47 930 60 000

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