Australian Finance : AFG 1H FY22 Investor Presentation
February 24, 2022 at 10:31 pm
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ersonal use only
HY22 results
Diversified business model continuing to deliver growth in profitability and excellent shareholder returns
only• Strong financial performance for the half with growing confidence for the balance of the financial year
• Excellent growth in our own branded products with a strong trend emerging of an increased
proportion of higher margin products
• Acquisition of Fintelligence brings forward our opportunity to drive future margin enhancement in a
new asset class
use
•
Diversification strategy will drive organic growth. Acquisition opportunities will continue to be
stringently assessed to ensure commensurate returns and the addition of real earnings value
•
Mortgage brokers now the dominant channel at 67% market share. Customers value the competition,
choice and convenience a broker provides. AFG is well placed to continue to capitalise on this trend
• Strong cash flow generating capability empowering the confidence to enhance historical dividend ersonalpolicy to a record interim dividend of 7.0 cents per share - an increase of 19% on HY21
• Both major political parties supportive of existing broker remuneration model
• AFG's growing digital ecosystem will significantly accelerate value creation, delivering value to our broker network, our lender partners, and our customers
• $630 million market cap and a strong balance sheet. $225m in net cash1 and other financial assets
1. Includes $84m unrestricted cash and $52m debt facility
2 HY22 RESULTS
H I G H L I G H T S
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HY22 results
Compared to HY21
Delivering excellent growth across the business
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H A L F Y E A R R E S U L T S
Operating Update
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Settlements / Loan Books
Settlements
1H22
1H21
$000's
$000's
Residential
30,773,638
20,915,896
47%
AFGHL
2,798,428
1,474,237
90%
White Label1
1,496,353
1,028,183
46%
AFG Securities1
1,302,176
446,053
192%
Commercial
1,771,327
966,562
83%
AFG Business
145,980
91,838
59%
Thinktank
127,073
65,458
94%
Leasing and Asset finance
420,864
310,962
35%
Fintelligence
513,441
-
Loan Book
1H22
1H21
Residential
173,785,739
160,014,400
9%
AFGHL
12,176,158
10,675,124
14%
White Label1
8,147,725
7,710,331
6%
AFG Securities1
4,028,433
2,964,794
36%
Commercial
9,952,816
8,721,209
14%
1. Is a subset of AFGHL
Residential settlements up 47% to $30.8 billion. Increasing activity in the investor market and customers upgrading or refinancing are supporting this growth
AFG Securities continues to accelerate, with a loan book of over $4 billion at December 2021, up 36% on December 2020
AFG Securities settlements increased by 192% to $1.3 billion
AFG Home Loans white label products up 46%
Commercial and AFG Business volumes were up 83% and 59% respectively as the confidence in this sector returns
Thinktank volumes increased 94% to $127 million
5 HY22 RESULTS
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AFG - Australian Finance Group Ltd. published this content on 24 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 February 2022 22:27:37 UTC.
Australian Finance Group Limited is an Australia-based mortgage broking and financial solutions company. The Companyâs principal activities include mortgage origination and lending. The Companyâs segments include distribution, manufacturing, and central. The distribution segment refers to the core aggregation services through AFG and Fintelligence in which these entities act as a mortgage broker that provides its contracted brokers with administrative and infrastructure support as well as access to a panel of lenders. It also includes White Label AFG Home Loans Commissions. The manufacturing segment refers to AFG Securities mortgages (Securitized loans issued by AFG Securities Pty Ltd) that are distributed through the Companyâs broker network. The manufacturing segment also includes AFGâs investment in Thinktank (commercial and residential). Its products include Suite360 Platform, Commercial and Business Broking, Analytics and Business Data and SMART Marketing Platform.