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The major aggregation group has reported record settlement volumes in its latest half-year results.
Australian Finance Group (AFG) has released its financial results for the first half of the financial year ending 30 June 2025 (FY25), with record settlement volumes contributing to positive growth for the aggregation group.
In the six months to 31 December 2024, the AFG broker network was credited with a record $31.1 billion in residential settlements, representing a 13 per cent increase on the previous corresponding period.
This figure left AFG’s total residential loan book sitting around $204 billion, a 4 per cent year-on-year increase.
Meanwhile, AFG also reported a record $1.8 billion in asset finance settlements across its broker network, representing a 12 per cent increase on the settlement volume reported in the first half of FY24.
Commercial settlements rose 24 per cent year on year to $2.5 billion, while settlements at Thinktank, the ASX-listed aggregation group’s white label arm, were up 34 per cent to $96 million.
These increases in settlement volumes contributed to $626 million in first-half revenue for the major aggregation group (up 11 per cent).
Record broker numbers
Meanwhile, the aggregators’ broker network continued to grow, building on the momentum noted during the most recent reporting period.
AFG’s broker network surpassed 4,100 for the first time ever during the first half of FY25, representing a 7 per cent net increase (4,110 brokers in total).
During this reporting period, AFG acquired minority holdings in Empower Wealth Group and Lifespan Mortgage Services as part of this new program of direct investments in “successful growth-oriented brokerages”.
As noted in the aggregator’s investor presentation, the 4,110 figure can be extrapolated to signify one in six Australian brokers is now an AFG broker, one in 10 residential mortgages are written by an AFG broker, and more than 550,000 borrowers are serviced by AFG brokers every year.
Speaking to The Adviser, David Bailey, AFG CEO, noted the work the aggregator had done to support the broker channel.
“Our commitment to our brokers is one of shared success – when they grow, we grow,” Bailey said.
“AFG has undertaken significant investments in driving efficiencies for our brokers, this can be seen in our delivery of new technology, compliance, diversification initiatives and adjacent opportunities for our network.”
AFG’s investment in the BrokerEngine – the aggregator took a 70 per cent stake in the business in 2021, which steadily increased to full ownership last year – provides one such example.
The aggregator’s investor presentation said that 46 per cent of brokers had subscribed to the enhanced BrokerEngine Plus platform during the first half of FY25, compared to 31 per cent in the first half of FY24.
“The investment in BrokerEngine and the development of BrokerEngine Plus is aimed at helping brokers with productivity,” Bailey said.
“We have found our brokers are saving an average of 1.5 hours per deal, streamlining the process for them and ensuring a seamless customer experience. Every minute saved in processing is time a broker can spend helping their customers and working on building their businesses.”
‘Platform for growth’
Bailey also commented on the aggregator’s forward outlook, saying the past six months had solidified a “platform for growth”.
“Looking ahead, favourable market conditions, an expanding distribution footprint, enhanced technology offerings and increased loan book size instil confidence in AFG’s upward earnings trajectory,” Bailey said.
“AFG’s strong balance sheet and cash generating assets combined with our capital allocation strategy positions us well as we head into the second half.
“Major technology projects have been rolled out and our Broker Investments program is successfully underway, with further opportunities in the pipeline.
“Our commitment to delivering value to our shareholders through consistent execution of our strategy and capitalising on market opportunities remains on track. We look forward to continuing this positive momentum.”
[Related: AFG settles record volume in FY24]
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