Australian Finance Group (AFG) H2 2025 earnings summary

Executive summary

• Achieved robust full-year results for FY2025, demonstrating resilience and growth amid challenging economic conditions with rising rates and inflation.

• Record broker network growth, with over 4,200 brokers and a 77% broker market share nationally, enhanced by technology adoption and increased scale in diversified business lines.

• Diversified income base, with 75% annuity-style income and significant contributions from commercial lending, asset finance, and proprietary loan manufacturing.

• Investments in technology and broker services drove efficiency gains and higher broker engagement.

• Achieved a total shareholder return of 203% since listing in 2015.

Financial highlights

• Underlying NPAT was $40.8 million; statutory NPAT up 21% to $35 million year-over-year.

• Gross profit increased 12% to $142.9 million, with distribution EBITDA up 10% to $68 million and manufacturing EBITDA up 53% to $16 million.

• Residential mortgage book grew 5% to $211 billion; AFG Securities book up 23% to $5.5 billion.

• Subscription income rose 13% to $21 million; underlying gross profit per broker rose 13% to $38k.

• Fully franked final dividend of 5.3cps declared.

Outlook and guidance

• Multiple cash rate reductions forecast, supporting strong residential and commercial outlook.

• Broker market share expected to rise toward 80% as industry consolidation continues.

• FY2026 dividend payout ratio set at 50–70% of adjusted NPAT, balancing reinvestment and shareholder returns.

• July 2025 saw record residential lodgements, up 25% year-over-year, indicating strong momentum into FY26.

• Medium-term aspirations include 8% CAGR in residential settlements, 35 broker investments, and AFG Securities book target of $9bn by FY29.