MA Financial Group (MAF) H2 2024 earnings summary

Executive summary

• Gross fund inflows reached AUD 2.7 billion (up 27%), with AUM up 12% to AUD 10.3 billion and strong domestic channel growth; MA Money's loan book surged 155% to AUD 2.1 billion, turning profitable in 2H24, and Finsure managed loans rose 26% to AUD 139 billion.

• Underlying NPAT rose 1% to AUD 42.1 million, with underlying EPS up 1% to 26.1c; statutory NPAT increased 47% to AUD 41.8 million, and 2H24 EPS was 35% higher than 1H24.

• Corporate advisory revenue increased 16% as market activity improved late in the year, with improved ECM activity and selective hiring in new sectors.

• Material investment in platform, technology, and brand to support future growth, including international expansion and new product launches.

• Full year fully franked dividend maintained at 20c per share.

Financial highlights

• Underlying revenue rose 14% to AUD 307 million; statutory revenue up 47% to AUD 576.7 million; recurring revenue comprised 62% of underlying revenue.

• Underlying EBITDA increased 7% to AUD 87.1 million; statutory EBITDA up 84% to AUD 320.7 million.

• Group EBITDA margin was 28.4% for FY 2024; adjusted for strategic spend, margin was close to 35%.

• Underlying ROE 10.7%, up 0.2 pps year-over-year; basic statutory EPS up 46% to 26.0c.

• Cash and undrawn facilities at year-end totaled AUD 120 million, supporting growth flexibility.

Outlook and guidance

• FY 2025 expected to see continued growth, with recurring margin to improve to the second half FY 2024 run rate; transaction-based revenue remains uncertain and below trend.

• MA Money is on track for AUD 15–20 million NPAT in FY 2026, with growth in FY 2025 expected to be non-linear due to front-ended investment.

• Strategic investment spend to reduce to AUD 10 million in FY 2025, with AUD 8 million earmarked for the U.S. private credit platform.

• AUM target of AUD 15 billion by FY 2026, with current AUM at around AUD 11 billion including pending allocations.

• Focus on expanding US Private Credit platform and Singapore distribution; continued investment in scalable growth platforms.