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Aggregator Australian Finance Group Ltd (AFG) has achieved a record-breaking recruitment drive, surpassing 4,000 brokers in its network for the first time as revealed in its annual results for the financial year 2024.
Additionally, residential settlements grew 3 per cent with combined total settlements of $63 billion and a residential trail book hitting $200 billion. According to AFG, final quarter lodgements were the highest Q4 on record.
AFG CEO David Bailey said on the group’s results: “We have had a record year in recruitment of brokers to the group.
“The value AFG delivers to our brokers drives that growth.”
With cash rates settling into an extended hold, other macro factors saw credit growth in both residential and commercial markets lift, the group said.
“Favourable conditions are expected to persist into FY25, which, when combined with increasing broker share in these markets, positions AFG well,” the report said.
“The continued solid performance of our investments in the Fintelligence and BrokerEngine businesses contributed a gross profit increase of 12 per cent year on year,” Bailey said.
“Fintelligence settlements were up 22 per cent and our total leasing and asset finance settlements surpassed $3 billion.”
According to Bailey, AFG is “on the brink” of completing the integration of the BrokerEngine platform into the group’s technology suite.
“Our investment has enabled us to scale this technology, improving efficiency in broker operations and allowing them to provide seamless, compliant services to their clients,” he said.
“It’s rewarding to see our strategic vision for this investment coming to fruition delivering a best-in-market platform for our brokers and further scalability for AFG.”
Furthermore, the financial results showed that AFG Securities’ loan book closed at $4.4 billion, up 8 per cent on six months ago (up $0.3 billion in 2H24).
The group said that the loan book quality “remains sound”, with no losses recorded.
Bailey said AFG’s net interest margin (NIM) was “understandably” affected by intense competition and historically high warehouse prices.
“Funding costs are now starting to improve; however, we will elect to reinvest these improvements into customer pricing to remain competitive and expand our loan book. This strategy will yield benefits in future periods as our NIM begins to recover,” Bailey said.
AFG’s investment into Think Tank Group Ltd (Thinktank) was reportedly similarly affected by challenging market conditions, which resulted in a decreased profit contribution from $4 million to $2 million.
“The Thinktank loan book grew to $5.8 billion, and we have confidence the business will also benefit from a more favourable lending environment in FY25,” Bailey said.
[RELATED: Brokers break quarterly record in lodgements]
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