Australian Finance Group (AFG) investor relations material

Executive summary

• Achieved record half-year results for HY26, with underlying NPATA up 43% to $24m and reported NPAT up 46% to $22.4m, driven by disciplined strategy, broker network expansion to over 4,300 active brokers, and technology investments like BrokerEngine+.

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

• Subscription income advanced 11% to $11m, with recurring earnings now accounting for 74% of income.

• High-margin manufacturing through AFG Securities and strategic investments in broker groups and technology are driving improved net interest margins and sustainable value creation.

• Strong financial foundations with $715m in H1 revenue and $183m in liquid assets.

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 4.7c per share declared.

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

• 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, with ongoing investment in broker support, technology, and higher margin products.