Australian Finance Group (AFG) H1 2025 earnings summary

Executive summary

• Achieved record settlements and lodgements in Residential and AFG Securities, with total settlement volume up 13% to $32bn compared to 1H24.

• Net profit after tax (NPAT) rose 6% year-over-year to $15.3m, with gross profit up 4% to $69.2m.

• Broker network expanded 7% to 4,110, now writing 1 in 10 Australian residential mortgages.

• Strategic investments and acquisitions expected to deliver $5–7m annualised EBITDA from H2 FY25.

• Strong balance sheet with $185m in investments and liquid assets, supporting ongoing growth.

Financial highlights

• Revenue increased 11% year-over-year to $626m; EBITDA up 3% to $24.6m.

• Residential mortgage book grew 4% to AUD 205 billion; distribution business contributed 82% of gross margin.

• Asset finance settlements up 12% to AUD 1.8 billion; AFG Securities book grew 23% to AUD 5.1 billion.

• Fully franked interim dividend of 3.8cps, with a yield of 4.9% for 1H25 and a 60% payout ratio.

• Unrestricted cash at AUD 55 million; liquid assets at AUD 185 million.

Outlook and guidance

• Expect stronger financial performance in the second half and into FY26, driven by technology investments and broker network growth.

• Medium-term aspiration for 8% CAGR in residential settlements and AFG Securities book to reach $9bn by FY29.

• Anticipate broker share of market to rise from 75% toward 80% as branch reductions continue.

• EBITDA uplift of AUD 5-7 million annualized expected from recent investments starting in 2H FY25.

• Dividend payout ratio policy to revert to 70–80% after FY25, following a temporary reduction.