Strong growth in residential and commercial settlements has pushed AFG’s loans book past $110 billion.
According to the ASX-listed broker network’s FY2016 half-year results, residential settlements reached $17.7 billion, up 16% on the corresponding period last year. The commercial business settled $1.4 billion, up 35% on the first half of 2015.
The group’s total loan book is currently sitting at $114 billion.
“AFG’s continued recruitment of top performing brokers across the country is testament to our key strategy of delivering market leading technology and support to our geographically diverse network,” AFG managing director, Brett McKeon said.
“The past five years has seen consistent growth in both residential and commercial settlements, particularly in the country’s biggest markets – New South Wales and Victoria.”
The first half-year also saw AFG’s own-brand mortgages, AFG Home Loans, contribute a $2.4 million profit before tax. This result reflects 79% profit before tax of full year AFG Home Loans forecast in the company’s Prospectus.
“Our half year results are further evidence of the positive outlook for the broker distribution channel in the Australian market. The key drivers of the broker value proposition are policy, pricing and service – the right policy for the borrower’s individual circumstances, at the right price, with the lender that can provide the best service to meet the needs of their customer,” McKeon said.
“This capability is unique to the broker channel and Australian consumers are voting with their feet. More than half of all Australians taking out a mortgage are doing so with the help of a mortgage broker, and AFG is at the forefront of that movement.”
AFG’s delivered a net profit after tax of $11.7 million, up 27% on the first half FY2015. AFG shareholders will be paid a fully franked interim dividend of 3c per share.