Australian Finance Group (ASX:AFG) has reported solid performance despite facing pressures from a competitive mortgage market in FY24. Revenue for the year reached $1.07 billion, reflecting a 7.2% growth from the prior year. However, the group’s net profit after tax (NPAT) fell to $29.0 million, down 22% year-on-year, primarily due to tighter margins in its manufacturing segment.
Addressing shareholders at the company’s 2024 Annual General Meeting, CEO David Bailey highlighted the resilience of the housing market and the company’s ability to capture value through its growing broker network. “We have continued to grow our distribution network, with over 4,000 brokers now operating under AFG, securing a record high 74% share of new home loans in Australia,” Bailey stated.
The group’s distribution business performed particularly well, with earnings growing by 20%. AFG Securities, the company’s non-bank lending arm, also returned to growth in the second half of FY24, with its loan book expanding by 14% to $4.8 billion.
Looking ahead, AFG remains optimistic about further growth in FY25, bolstered by strong credit quality and strategic investments in technology aimed at improving broker efficiency. The company is also positioning itself to benefit from any future structural changes in the Australian mortgage market.