Insights

Australian Finance Group (ASX:AFG) share price gains on FY21 profit boost

The ASX mortgage broking group released its FY21 results this morning.
The post Australian Finance Group (ASX:AFG) share price gains on FY21 profit boost appeared first on The Motley Fool Australia. –

The Australian Finance Group Ltd (ASX: AFG) share price is edging higher in late morning trade, up 0.84%, having earlier posted gains of 4%.

At time of writing, the Australian Finance Group share price is exchanging hands at $2.99 apiece.

Below we take a look at the ASX mortgage broking group’s full year financial results for the year ending 30 June, 2021 (FY21).

Australian Finance Group share price lifts on FY21 results

Total revenue increased 11% year-on-year to $767.1 million
Underlying net profit after tax (NPAT) of $49.6 million, up 37% from the $36.3 million reported in FY20
Net cash from operating activities increased 45% to $58.6 million
Declared a final dividend 7.4 cents per share, up 57% from FY20 final dividend

What happened during the reporting period for the company?

Australian Finance Group credited its 11% increase in revenue to settlement and loan book growth across its business.

The company reported a 28% increase in residential settlements to $43.6 billion. It said first home buyers and upgraders were driving the growth, powered by low interest rates, government stimulus and a better economic outlook.

AFG Securities settlements of $1.35 billion were roughly equal to the prior year, with the loan book increasing by 17% to $3.4 billion. The company said its combined residential and commercial loan book of $175.7 billion was up 8% from FY20.

Australian Finance Group’s broker numbers were also on the up, reaching more than 3,050 as at 30 June.

During the year, the company continued to roll out its new platform, CRM “built on enterprise-grade technology”. AFG said plans were underway for a staged migration of each broker across its network to the new platform.

In FY21, Australian Finance Group also acquired an 8% stake in neobank Volt. The company said that Volt’s innovative technology would help it deliver “streamlined digital solutions for our brokers and their customers”.

On the subject of environmental, social, and corporate governance (ESG) metrics, AFG advised it was making significant progress in its approach and reporting.

What did management say?

Commenting on the results, Australian Finance Group CEO David Bailey said:

This is a record profit for the company reflecting the hard work of our staff and our brokers who now count in excess of 3,050… This past year has once again shown the resilience of our business and the core role our brokers play in delivering a competitive lending market and a service sought after by Australians building wealth in the residential market and in business enterprises across the country.

Our brokers have experienced record demand for their services to Australian borrowers. Our core residential business increased by 28% this year to deliver $43.6 billion in settlements.

What’s next for Australian Finance Group?

Looking ahead, AFG said it was well-placed to continue delivering growth for its shareholders while offering choice and competition for Aussie mortgage customers.

As at 30 June, the company held cash and other financial investments of $282 million.

Bailey said AFG remained alert to the risks and challenges posed by the ongoing COVID-19 pandemic, but is confident the company was “well-equipped to respond”.

“As a major aggregator, AFG is well-placed to participate in the increased preference by Australian consumers to access home loan products through a broker,” he said.

The Australian Finance Group share price is up 56% over the past 12 months.

The post Australian Finance Group (ASX:AFG) share price gains on FY21 profit boost appeared first on The Motley Fool Australia.

Should you invest $1,000 in Australian Finance Group right now?

Before you consider Australian Finance Group, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Australian Finance Group wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

These recent ASX IPOs have just reported for the first time. How’d they go?

Why the ClearVue (ASX:CPV) share price is soaring 25% this week
CV Check (ASX: CV1) share price gains on FY21 earnings
Why is the Coles (ASX:COL) share price down 5% this week?
Sonic Healthcare (ASX:SHL) share price hits record high at $43.43

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!