Australian Finance Group Surges 46% Profit, Boosts Dividend Amid Broker Network Growth
Australian Finance Group Ltd has reported a robust half-year performance for FY26, with net profit soaring 46% and an interim dividend hike to 4.7 cents per share. The company’s strategic focus on expanding its broker network and proprietary technology underpins its growth.
- Revenue up 14.3% to AUD 715 million
- Net profit attributable to shareholders rises 46.4% to AUD 22.4 million
- Interim fully franked dividend increased to 4.7 cents per share
- Growth driven by Distribution and Manufacturing segments
- Strong balance sheet with net assets at AUD 231.4 million
Strong Financial Performance
Australian Finance Group Ltd (ASX, AFG) has delivered a compelling half-year financial result for the six months ending 31 December 2025. The company reported revenue of AUD 715 million, marking a 14.3% increase compared to the previous corresponding period. More notably, net profit attributable to shareholders surged by 46.4% to AUD 22.4 million, reflecting operational efficiencies and growth across its core business segments.
Underlying net profit after tax plus amortisation from continuing operations also rose significantly by 42.6%, underscoring the quality of earnings and the company’s ability to generate sustainable profitability.
Dividend Increase Signals Confidence
In line with its strong earnings, AFG declared an interim fully franked dividend of 4.7 cents per share, up from 3.8 cents in the prior period. This dividend reflects the company’s commitment to returning value to shareholders while maintaining a robust capital position. The dividend record date is set for 26 February 2026, with payment scheduled for 27 March 2026.
Business Segments Driving Growth
The company’s growth is anchored in its two main segments, Distribution and Manufacturing. The Distribution segment, which includes mortgage aggregation services and broker support, contributed 72% of EBITDA excluding central costs. This segment benefits from AFG’s extensive broker network of over 4,300 brokers, who originate approximately one in nine residential mortgages in Australia.
The Manufacturing segment, responsible for securitised loans and proprietary home loan products, accounted for 28% of EBITDA. This segment’s performance was bolstered by net interest margin gains and fees from its securitisation programme, as well as its 31.9% stake in Thinktank Group Pty Ltd, a specialist commercial lender.
Technology and Strategic Focus
AFG continues to invest in its proprietary technology platforms that connect lenders to borrowers and enhance broker efficiency. This technological edge supports the company’s strategic pillars, expanding the broker network, delivering market-leading technology solutions, and increasing margins through its distribution channels.
The Directors reaffirmed their confidence in the Group’s prospects and ability to meet its financial obligations, with no impairment indicators noted for goodwill or intangible assets. The balance sheet remains strong, with net assets increasing to AUD 231.4 million as at 31 December 2025.
Outlook and Market Position
While the company did not provide explicit forward guidance due to potential prejudice concerns, its half-year results and strategic initiatives suggest a positive trajectory. AFG’s role as a key aggregator in Australia’s mortgage market, combined with its direct lending capabilities, positions it well to capitalise on market opportunities.
Investors and analysts will be watching closely for insights from the scheduled investor briefing and conference call, which may shed further light on growth drivers and operational priorities for the remainder of FY26.
Bottom Line?
AFG’s strong half-year results and dividend increase underscore its growing influence in Australia’s mortgage broking and lending landscape, setting the stage for continued expansion.
Questions in the middle?
- How will AFG’s broker network expansion impact future revenue streams?
- What role will proprietary technology play in sustaining competitive advantage?
- How might changes in interest rates affect the Manufacturing segment’s securitisation margins?
