Aggregator records record annual settlement growth

by Julia Corderoy28 Aug 2015
A listed aggregator has announced a 19.8% jump in its pro forma net profit after tax (NPAT), underpinned by strong growth in residential and commercial loan settlements.

AFG has reported a pro forma NPAT of $19.3 million for the 2015 financial year. This result is 8.4% ahead if the aggregator’s prospectus forecasts of $17.8 million and an increase of 19.8% compared with the pro forma $16.1 achieved in the 2014 financial year.

AFG managing director, Brett McKeon says the result was under pinned by record growth in both residential and commercial settlements.

“We have grown our residential settlements year on year by 19% and our commercial settlements increased by 23%, both of which represent record years of settlements.  

“AFG now enters the new financial year in a strong position with a combined residential and commercial loan book of $107 billion, which includes better than forecast growth from our white label AFG Home Loans products.”

The aggregator more than tripled its settlement forecast for its AFG Home Loans’ Edge product over the year, settling over $460 million. 

McKeon says he has a positive outlook for the year ahead, despite the multitude of changes the industry has faced this year, including the crackdown in investment lending and increases to capital adequacy for banks.

“This, in our view, has introduced another level of complexity to the Australian mortgage market and this translates into an environment where consumers are even more in need of a broker’s assistance to ensure they are making the correct financing decision for their individual circumstances.”