MA Financial Group’s Revenue Hits $558.5M, Underlying Profit Up 27%

Financial Highlights and Profit Discrepancies

MA Financial Group has delivered a mixed half-year performance for the period ending 30 June 2025. The company’s revenue surged by 30% to $558.5 million, reflecting strong operational momentum across its business segments. However, this top-line growth contrasts with a 44% decline in statutory net profit after tax, which fell to $7.6 million from $13.5 million in the prior corresponding period.

This divergence is explained by the company’s use of underlying financial measures, which exclude certain acquisition and transaction costs, unrealised investment gains or losses, and other non-cash accounting adjustments. On this basis, underlying net profit after tax actually increased by 27% to $22.6 million, underscoring the solid core earnings power of the business.

Segment Performance, Lending & Technology Leads Growth

The Lending & Technology segment was a standout, with underlying revenue rising 63% to $43.3 million. This growth was driven by a 134% expansion in MA Money’s loan book, which reached $3.3 billion, and a 17% increase in mortgage brokers on the Finsure platform. Improved net interest margins further boosted profitability in this segment.

Meanwhile, the Asset Management division, which contributes the majority of underlying EBITDA, saw a modest 10% revenue increase to $92.2 million. This was tempered by softer transaction fees and timing of fund deployments. Corporate Advisory & Equities also posted a 15% revenue rise, benefiting from a strong pipeline of mergers and acquisitions advisory mandates despite subdued equity capital markets activity.

Strategic Acquisition and Balance Sheet Strength

In a significant strategic move, MA Financial Group announced the acquisition of IP Generation Pty Ltd, a specialist real estate investment firm managing close to $2 billion in shopping centres. The transaction, expected to complete in the second half of 2025, aims to bolster the Group’s real estate capabilities and diversify its asset base.

The Group’s balance sheet remains robust, with total assets rising to $8.47 billion and net assets standing at $407.6 million. The company continues to manage capital prudently, maintaining strong liquidity and optimising debt and equity balances to support growth and withstand economic shocks.

Dividend and Outlook

Reflecting confidence in ongoing cash flows, the Directors declared a fully franked interim dividend of 6.0 cents per share, payable in September 2025. The Group’s outlook appears cautiously optimistic, with a strong transaction pipeline in Corporate Advisory & Equities and continued momentum in Lending & Technology expected to underpin future earnings growth.

Investors will be watching closely how the integration of IP Generation unfolds and whether the underlying profit growth can translate into improved statutory earnings in the coming periods.