In This Article:
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Revenue: Not explicitly mentioned.
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Net Income (NPAT): $29 million, down $8 million.
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Distribution Earnings: $54.1 million, up 20%.
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Broker Subscription Increase: 13%.
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Fintelligence Gross Profit: Increased by 7%.
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Operating Expenses: Reduced by $3 million.
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Residential Loan Book: $200 billion.
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AFG Securities Book: $4.4 billion, up 8% from December 2023.
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Asset Finance Business Settlements: Grew by 21% to $3 billion.
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Commercial Settlements: Up 18% to $4.5 billion.
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Dividend: $0.04 per share, 60% payout ratio.
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Cash and Liquid Assets: $190 million.
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Cash Conversion Ratio: 107%.
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Gross Profit from Distribution Business: $106 million, 78% of total gross profit.
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Average NIM for FY24: 113 basis points.
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Loan Book Growth: 8% compared to December 2023.
Release Date: August 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Australian Finance Group Ltd (ASX:AFG) celebrated its 30th anniversary, highlighting its long-standing presence and experience in the financial services industry.
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The company has a robust broker network with over 4,000 brokers, contributing to a record high residential loan book of $200 billion.
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AFG Securities book returned to growth, reaching $4.4 billion, indicating a positive trend in their manufacturing segment.
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The company achieved a $54.1 million distribution earnings, up 20%, and a 13% increase in broker subscription.
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AFG has successfully reduced operating expenses by $3 million, showcasing effective cost management.
Negative Points
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Net Profit After Tax (NPAT) was down $8 million to $29 million, reflecting challenges in the manufacturing segment.
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The manufacturing segment's earnings were materially down, with a significant reduction in return on equity to 12%.
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The average Net Interest Margin (NIM) for FY24 was 113 basis points, indicating pressure on profitability.
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The company experienced increased arrears, although still in line with major bank averages, indicating some credit risk.
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White label volumes were down 30% due to partners focusing on their proprietary channels, impacting overall performance.
Q & A Highlights
Q: Can you expand on the hubbing strategy for transitioning older brokers to new brokers? A: We've spent considerable time researching and examining the market. We have an active pipeline of opportunities and are progressing through various stages of due diligence and formal documentation. We aim to achieve our first couple of investments in the next six months. - David Bailey, CEO