National aggregator
Australian Finance Group (
AFG) has updated its profit estimates for the 2017 financial year using updated data about its
AFG Home Loans business.
The firm now estimates that net profit after tax will lie between $37m and $37.8m for FY17 after previous forecasts suggested a profit of around $25.5m.
This increased financial estimate comes with AFG Home Loans’ white label mortgage products maturing during the six months prior to 30 June 2017. With this added information, the aggregator has since provided an updated estimate for future trail revenue relating to these white label products.
The aggregator estimates that movement in FY17 within its AFG Home Loans trail book will lie between $3.1m and $3.4m. This is in addition to initial recognition of the value of the trail book which lies between $8.4m and $8.9m since AFG established its home loans business two years ago.
“Under accounting standards, we need to recognise the value of the home loans white label book,” CEO
David Bailey told
Australian Broker. “We previously haven’t been able to recognise that value because we haven’t had an actuarial history.”
AFG receives trail from these white label products from Advantedge, Macquarie and
Adelaide Bank which fund AFG Home Loans.
“This offsets the cost of distribution and manufacture,” he said.
The aggregator’s current trail book now sits at $127bn including trail generated from the AFG Home Loans book of white label products.
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