An aggregation group has celebrated its “very successful” full year result, attributing the positive outcome to growth across every division of the company.
AFG reported a net profit after tax of $38.1m for the full year to 30 June 2020, a 15.3% increase year on year, and a result CEO David Bailey says has proven the company’s resilience and strength regardless of the external operating environment.
“AFG’s investment in technology ensured our brokers were well positioned to rapidly adapt to this change and were able to continue to assist their customers through the lockdown,” said Bailey.
“Choice and competition are vital to an effective lending market. The major lenders have been aggressively competing for business and AFG brokers have been serving their customers by ensuring they are provided with the benefits of that competition.
“Additionally, banks closing branches and redirecting staff to assist with hardships has meant our brokers have been dealing with a substantial influx of customers looking to refinance loans to take advantage of record low interest rates and competitive offers from lenders.”
Yet even with having posted its strongest full year results to date, the group maintains “a cautious outlook.”
“The AFG Board and executive team are cognisant that while FY21 currently sees AFG performing ahead of expectation, the ongoing impact of COVID-19 on the community and on future residential market lending fundamentals mean that despite the company’s strength we remain concerned about the outlook for the property and mortgage markets,” said Bailey.
“With rising unemployment there is an expectation that some additional borrowers may enter hardship as government fiscal support programs and loan relief measures come to an end, or in the event that lockdowns are extended in Victoria or revisited in other parts of the country.
“It is difficult on any reasonable basis to confidently predict future financial performance. In line with previous years, the company will not provide any guidance on future performance.”
However, AFG confirmed its pipeline of business has remained strong to date, with various federal and state government incentives playing an important role in stimulating lending activity.