Australian Finance Group (AFG) investor relations material

Executive summary

• Delivered record first half FY26 performance, with underlying NPATA up 43% to $24m and reported NPAT up 46% to $22.4m, driven by disciplined strategy, broker network expansion, and technology investments.

• Residential settlements increased 19% to $38b, AFG Securities' closing book grew 24% to $6.3b, and gross profit per broker climbed 15% to $42k.

• Broker network expanded to 4,300 active brokers, now writing one in nine Australian residential mortgages, with increased productivity and engagement.

• Technology investments, especially BrokerEngine+, are enhancing broker efficiency and recurring revenue.

• Cost to income ratio improved by 8 percentage points to 56%.

Financial highlights

• Gross profit up 16% to $78.8m; EBITDA up 43% to $35.6m; ROE improved to 21%.

• Net cash from operating activities increased 50% to $20.3m; cash conversion at 85%.

• Fully franked interim dividend of 4.7cps declared, with a payout ratio of 60% of adjusted NPAT.

• Distribution segment gross profit up 5% to $58m; subscription income up 11% to $11m.

• Manufacturing segment gross profit up 62% to $21m; NIM increased to 124bps, up 11bps.

Outlook and guidance

• Strong January and February lodgements support expectations for accelerated second half earnings, with residential up 23% and AFG Securities up 99% year-over-year.

• Higher margin mix, improved NIM, and growing subscription income expected to drive further momentum.

• Confident in ability to deliver sustainable long-term value and earnings growth.

• Broker Investments pipeline building as the market is established.

• Exit NIM at 126bps, with improved near-term confidence and seasonally lower second half opex.