Australian Finance Group posts $49M annual profit
- Australian Finance Group achieved a 39% boost in its annual net profit.
- The company's shares fell marginally during intraday trading to $1.54 following the announcement.
- Management attributed the earnings growth to its scaled distribution network and a shift towards recurring income streams.
Australian Finance Group (ASX:AFG) reported a full-year net profit of $49 million, up 39% year over year, as its distribution and manufacturing segments grew.
The FY26 result highlighted an improved underlying return on equity of 23% and a reduced cost-to-income ratio of 55%.
The AFG network grew to more than 4,300 brokers, writing 1 in 9 Australian mortgages and providing a vital distribution channel for lenders across the country.
“The broker channel reached 81% of the residential lending market in FY26, with one in nine Australian mortgages written by an AFG broker, positioning the Group strongly as more customers choose brokers,” said AFG CEO David Bailey.
The company stated its expanded network helped lift asset and commercial finance settlements by 19% to $4.3 billion.
With management forecasting broader product distribution, following the announcement the AFG share price was down at $1.56.
The board declared a final dividend of 4.8 cents per share, taking the full-year dividend to 9.5 cents per share.
The final dividend is payable on Oct. 1 to shareholders on record as of Sept. 1.
The firm noted that nearly 90% of its current earnings rely on recurring or diversified income streams.
Management stated that its brokers wrote one in nine Australian mortgages during the recent financial year.
