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Australian Finance Group (AFG) saw its net profit after tax (NPAT) rise by an annualised 10.4% to $33.3m in FY2017. The growth rise came amid a debt-free balance sheet and the strength of AFG’s distribution capability with residential settlements of $35.3bn representing growth of 3%.
AFG CEO David Bailey also credited the company’s diversified earnings through the core residential and commercial aggregation business and the higher margin AFG Home Loans business line. “The earnings diversification strategy of AFGHL continues to deliver results for shareholders with settlements of $3.2 billion, up 20% on FY2017,” he said.
The past year saw the company acquire a significant stake in commercial SME lender Think Tank Group and the continuing roll out of its AFG Business platform.
Amidst tighter lending conditions and greater industry scrutiny arising from the royal commission, Bailey said the firm will continue to work closely with government, regulators and industry partners to ensure momentum-based decisions do not drive unintended negative consequences for Australian borrowers.
“With competition and consumers at the core of our business AFG will continue to be a first-choice partner for lenders and broking groups. AFG has 50 lenders on its panel with more than 40% of residential borrowings going to lenders other than the four major banks, and AFG remains committed to ensuring choice and competition remains for all Australian consumers,” said Bailey.
“The industry will continue to evolve and as an agile business in the sector with access to broad distribution and funding and building blocks in place, the future will provide opportunities for AFG and I look forward to another successful year for the company,” he added.
