The Danish CSD, VP Securities Services (VP), earned a profit on ordinary activities of DKK 43.2 million out of a net turnover of DKK 129.5 million in the first half of the year. The final profit amounts to DKK 45.8 million before tax.
VP estimates that the profit for the year will amount to DKK 74 million, which is an upward adjustment compared to the expectations stated in the 2003 annual report in which VP anticipated a lower profit on ordinary activities compared to 2003, partly because of the costs of renovating systems.
“The result is very satisfactory, especially as VP has charged considerable strategic IT investments to the operations,” says the Chairman of VP’s Board of Directors, Sven Lystbk. “It is of great importance that VP’s IT platform is continuously developed in order to gear VP to handle both existing and new assignments such as the development of an electronic title registration system for real property. The basic service, clearing of securities, has risen considerably due to the increased turnover of shares and bonds. It is, however, very pleasant that the strong interim result to a high degree is due to the development of new business areas. To mention one, this applies to VP’s new financial information service, vp.FACT, which is becoming increasingly successful in Scandinavia”, says VP’s President & CEO, Johannes Luef. vp.FACT is sold to Danish and Scandinavian banks, brokers, credit institutions and investment companies.”