AFG’s Record Growth Faces Test Amid Market and Rate Changes
Australian Finance Group Ltd (AFG) has reported record FY25 results, with net profit after tax rising 21% to $35 million, driven by strong growth across its broker network and manufacturing division.
- Net profit after tax up 21% to $35 million
- Manufacturing division earnings grow 53%, distribution up 10%
- Residential settlements increase 15% to $63 billion
- Broker network expands to over 4,200 active brokers
- Fully franked final dividend of 5.3 cents per share declared
Record Earnings Reflect Strategic Strength
Australian Finance Group Ltd (ASX – AFG) has delivered a standout financial year for 2025, posting a 21% increase in net profit after tax to $35 million. This robust performance was underpinned by strong contributions from its broker network, a resurgent manufacturing division, and growing broker services income.
The company’s residential settlements surged 15% to $63 billion, pushing the total residential loan book beyond $210 billion. This growth highlights the enduring strength of AFG’s mortgage broking model amid a dynamic economic environment.
Broker Network Expansion and Technology Upgrades
AFG’s broker network now boasts over 4,200 active brokers, representing one in six Australian brokers. This expansion is a key driver of the company’s growth, supported by technology enhancements such as the rollout of BrokerEngine Plus, which has improved broker workflow and engagement. High net promoter scores indicate strong broker satisfaction and operational efficiency.
Additionally, AFG’s broker services segment continues to evolve, offering compliance, marketing, and business management tools that bolster regulatory confidence and broker productivity.
Manufacturing Division and Strategic Investments
The manufacturing division saw earnings jump 53%, with AFG Securities achieving a record loan book of $5.5 billion, up 23%. This rebound reflects favourable market conditions and a positive outlook amid the current interest rate reduction cycle.
AFG has also made strategic equity investments in broking groups, including those outside its traditional cohort, signaling a new avenue for earnings growth expected to contribute positively in FY26. The company’s stake in Thinktank, a related business, saw earnings rise 24% year on year, further diversifying income streams.
Outlook and Dividend
With a fully franked final dividend of 5.3 cents per share, bringing the total for the year to 9.1 cents, AFG demonstrates confidence in its financial health and future prospects. CEO David Bailey highlighted the company’s strong momentum entering FY26, supported by a robust balance sheet, ongoing innovation, and a favourable economic backdrop marked by falling interest rates and sustained borrower demand.
AFG’s diversified model and commitment to empowering brokers position it well to capitalize on continued growth opportunities in Australia’s housing finance market.
Bottom Line?
AFG’s record FY25 results set a strong foundation, but investors will watch closely how new broker investments and market shifts shape FY26.
Questions in the middle?
- How will AFG’s equity investments in broking groups impact earnings beyond FY26?
- Can the broker network expansion sustain growth amid evolving regulatory and market conditions?
- What risks could arise if interest rates or property markets shift unexpectedly?
