MA Financial Group (MAF) H2 2024 earnings summary

Executive summary

• Gross flows into investment strategies reached AUD 2.7 billion in FY 2024, up 27% year-over-year, with strong domestic channel growth and a significant AUD 500 million subscription into the real estate credit vehicle.

• MA Money's loan book surged 155% to AUD 2.1 billion, turning a profit in the second half, while Finsure expanded market share and broker count, reinforcing its competitive edge.

• Asset management AUM rose 12% to AUD 10.3 billion, excluding pending allocations, and all divisions reported strong operating metrics and momentum.

• 2H24 EPS up 35% on 1H24, reflecting accelerating momentum across business segments.

• Material investment in platform, technology, and brand to support future growth.

Financial highlights

• Underlying revenue rose 14% to $306.6m; statutory revenue up 47% to $576.7m year-over-year.

• Group EBITDA margin was 28.4% for FY 2024, but adjusted for strategic spend, it would be close to 35%.

• Finsure's managed loan book increased 26% to AUD 139 billion; MA Money's loan book grew 1.5x; corporate advisory revenue rose 16% despite an 8% lower headcount.

• Recurring margin in asset management increased to 161 basis points in the second half, reflecting real estate credit deployment.

• NIM for MA Money improved to 1.3%, in line with expectations.

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.

• Corporate Advisory revenue expected at lower end of $1.1–1.3m per executive as platform grows.