Australian Finance Group (AFG) H2 2025 earnings summary

Executive summary

• Achieved robust FY2025 results with 21% NPAT growth to $35 million, driven by strong broker network expansion, manufacturing division growth, and disciplined capital allocation, delivering a total shareholder return of 203% since 2015.

• Broker network expanded to over 4,200 active brokers, representing one in six Australian brokers and a 77% national broker market share.

• Investments in technology and broker services, including BrokerEngine Plus, drove efficiency gains and higher broker engagement.

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

• Strategic investments in broking groups and technology upgrades are expected to drive future growth.

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; distribution EBITDA up 10% to $68 million and manufacturing EBITDA up 53% to $16 million.

• Residential settlements rose 15% to $63.5 billion, with the residential loan book exceeding $211 billion; AFG Securities' loan book reached a record $5.5 billion, up 23%.

• Commercial settlements increased 14% to over $5 billion; asset finance business increased 9% to $3.5 billion.

• Fully franked dividends totaled 9.1 cents per share for the year, with a final dividend of 5.3 cps 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.

• Initial equity investments in broking groups anticipated to be earnings accretive in FY26, with a strong pipeline for future opportunities.

• Positive momentum into FY2026, with strong activity in Victoria and New South Wales and record July 2025 residential lodgements up 25% year-over-year.