ASX-listed mortgage aggregator AFG has reported growth of 48% in FY2016, underpinned by strong uptake in commercial lending.
AFG reported a net profit after tax (NPAT) of $22.6 million for the financial year, an increase of 48% on the $15.3 million result in FY2015. The result was also 15.1% ahead of the aggregator’s Prospectus forecast of $19.7 million.
Residential settlements through its broker network were up 8%, to $33.84 billion, but the standout was the “exceptional year” for commercial lending. AFG’s commercial loan book grew 12.1% to $5.67 billion.
“Our Commercial loan book grew very well during the year as more small to medium sized businesses recognized the value a commercial broker can deliver,” AFG managing director Brett McKeon
Commercial settlements through its broker network grew by 15% year-on-year, to reach $2.76 billion. This exceeded the prospectus FY2016 target by 13%.
“We expect this trend to continue, predominately in asset lending,” McKeon said.
The aggregator also touted the growth in its AFG branded products.
“Our own AFG Home Loans business also outperformed internal expectations. From a prospectus forecast of $1.3 billion in settlements of white label products, we rounded out the financial year at $1.44 billion,” McKeon said.
“This was driven by the move from a soft launch to full rollout of our Edge product, and the more recent addition of the new Icon home loan. These have been well received by our broker network with the products delivering more choice, competitive pricing and excellent service to our brokers and their customers.”
Growth was also supported by a record year in the recruitment, which saw AFG lift broker numbers from just over 2,400 in 2015 to finish the financial year with over 2,650 active brokers. The aggregator also lifted the number of lenders on its panel to more than 45.