MA Financial’s Strategic Investments Weigh on Statutory EPS Despite Underlying Gains

Strong Financial Momentum Across MA Financial

MA Financial Group has delivered a compelling first half performance for 2025, showcasing broad-based growth across its core businesses. The group reported underlying revenue of $163.4 million, a 21% increase year-on-year, alongside a 26% rise in underlying earnings per share to 14.0 cents. This growth was underpinned by a 31% surge in assets under management (AUM) to $12.7 billion, including $1.9 billion from the anticipated acquisition of IP Generation, set to complete in September.

The company’s lending platforms, Finsure and MA Money, have been standout performers. Finsure’s managed loans grew 28% to $155 billion, with its technology platform now facilitating approximately one in every nine new home loans in Australia. Meanwhile, MA Money’s loan book more than doubled, expanding 134% to $3.3 billion, supported by an improved net interest margin and a shift to profitability with $4 million underlying EBITDA.

Strategic Investments Fuel Growth and Diversification

MA Financial’s strategy of nurturing new business lines before scaling them is paying dividends. The group continues to invest in expanding its US private credit platform and diversifying distribution channels across Asia-Pacific. While these investments have temporarily weighed on statutory earnings; reflected in a 44% drop in statutory EPS due to one-off acquisition and capital raising costs; the underlying business momentum remains strong.

Corporate Advisory and Equities also contributed positively, with advisory fees rising 19% to $26.1 million amid increased M&A and capital structure activity. Although equity commissions softened, the transaction pipeline remains robust, signaling further fee growth potential in the second half.

Outlook, Accelerating Earnings and Continued Expansion

Looking ahead, MA Financial expects materially higher earnings in the second half of 2025, driven by sustained fund inflows, improved recurring revenue margins in asset management, and ongoing growth in lending platforms. The group is actively pursuing over $1 billion in real estate assets through exclusive due diligence and is advancing capital raising efforts for its MA Redcape Hotel Fund, which targets a 17% annual return over two years.

With a fully franked interim dividend of 6 cents per share declared, consistent with the prior year, MA Financial signals confidence in its growth trajectory. The company’s integrated ecosystem; spanning asset management, lending technology, and advisory services; positions it well to capitalize on favourable macroeconomic trends and evolving market opportunities.