AFG has reported a profit of $51.3 million for the financial year just finished, breaking their record for their most successful year.
Their profits were only half the story: residential settlements were up 28% to $43.63 billion, driven by a huge take up in the broker channel that AFG claim now sees 1 in 11 residential home loans going through them.
AFG Home Loans, the white label product, also managed $2.1 billion in settlements, up 18% year on year.
Between AFG Home Loans and their commercial lending arm, the aggregator now has a loan book of $175.7 billion, 8% up on their last results.
“This is a record profit for the company reflecting the hard work of our staff and our brokers who now count in excess of 3,050,” said AFG CEO David Bailey in their ASX statement.
“It represents another step change in the development of AFG. This past year has once again shown the resilience of our business and the core role our brokers play in delivering a competitive lending market and a service sought after by Australians building wealth in the residential market and in business enterprises across the country.”
“Our brokers have experienced record demand for their services to Australian borrowers. Our core residential business increased by 28% this year to deliver $43.6 billion in settlements.”
“The success of our lending business, AFG Home Loans, and, in particular, our own securitised home loan products, remains a highlight. Despite a pandemic-initiated slowdown in settlements in the first quarter of FY21, the AFG Securities business has reported an excellent full year of settlements and at the end of the financial year has a loan book of $3.4 billion.”
“Since the end of the first quarter, momentum in this business has built, and importantly, lodgements in the second half were up 82% on the previous half. Whist the Commercial lending market has been hit the hardest by COVID restrictions, activity in this sector also increased in the second half of FY21.”
“Settlements for the full year were in line with FY20 however commercial mortgage settlements were up 23% in the second half of the year compared to the prior period. Our investment in
commercial lender ThinkTank is also contributing strongly, with a $5.3m contribution to profit reflecting an increase of 130%.”
“With the country once again grappling with lockdowns in many states AFG is pleased to note we are not seeing high numbers of hardship requests come through AFG Securities’ business.”
“We do of course remain aware of the risks the shutdowns may have on the financial wellbeing of our customers and stand ready to respond if necessary, with supportive programs in place while customers get back on their feet.”
