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An extra 500 brokers joined Finsure in 2022 and aided MA Financial Group’s overall full-year result, the group has confirmed.
MA Financial Group has underscored its “ability to grow through market cycles” given its “strength and diversity”, after announcing a record FY22 result on Thursday (23 February).
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Results for the 12 months to 31 December 2022 (FY22) highlighted that Finsure managed loans were up 37 per cent on FY21 to $91 billion.
Further wins in the period headlined by dividends up 18 per cent to 20 cents per share (CPS) included: “record underlying revenue”, up 41 per cent on FY21 to $302 million; and "record underlying earnings” per share (EPS) up 29 per cent on FY21 to 38.3¢ (statutory EPS up 26 per cent to 28.0¢).
Its FY22 gross fund inflows of $1.5 billion were driven by “strong flows into credit funds”, and its assets under management (AUM) were up 13 per cent on FY21 to $7.8 billion ($8.0 billion in February 2023).
Ultimately, underlying revenue of $301.8 million was up 41 per cent on FY21 driven by “a strong performance by the group’s asset-management business,” MA Financial confirmed.
Commenting on the results, joint chief executives Julian Biggins and Chris Wyke said: “We are very pleased with how the business has performed, delivering a record financial result in 2022 alongside continued investment into future growth.
“This performance reflects our deliberate strategy to build a diversified business that can grow through market cycles.
“Particularly pleasing is the growth and performance of the credit investing business.
“Client inflows into credit funds almost doubled to $1.1 billion in 2022.
“Our expertise in originating and management of credit assets has proved attractive with clients seeking to benefit from higher yielding investment funds.
“We believe credit fund investing will continue to benefit from structural and demographic growth drivers for some time yet.”
Finsure absorption pays off
In February 2022, MA Financial acquired residential mortgage aggregator Finsure, a business with in excess of $86 billion in managed loans at the time, MA Financial explained.
“Our lending division funds high-quality loan portfolios and operates differentiated lending platforms,” it stated.
“Our lending platforms focus on residential mortgage lending and specialty finance, which includes legal disbursement funding.
“We invest in loan portfolios, including providing asset-backed funding for non-bank and bank loans in Australia and the United States,” it added.
The company highlighted that through its lending platforms, MA Financial provides a range of legal funding solutions, including: disbursement funding, refinancing of existing disbursement borrowings, settlement advance funding and family law funding.
Chris Wyke, commented specifically on the Finsure-derived achievement: “Under our ownership, Finsure’s performance in the year exceeded expectations, growing broker numbers by 24 per cent to 2,640 and increasing its managed loans by 37 per cent, from $66.5 billion to $91.0 billion.
“There are now 350,000 borrowers, over 80 lenders, and more than 4,500 products on offer.
“Following the acquisition, we also invested significantly in our residential mortgage lender, MA Money, boosting the range of residential loan products and services on offer to drive growth.
“We have already secured $20 million of loan settlements in the first three weeks of February and over $80 million of applications currently outstanding.
[Related: Finsure sale completes]
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