Australian Finance Group Ltd (ASX:AFG)

Full Year 2026 Australian Finance Group Ltd Earnings Call Transcript

Aug 19, 2026 / 12:00 AM GMT

Release Date Price: A$1.6 (+4.23%)

Transcript

Key Points

Positve

Net profit after tax increased 39% to $49 million, with growth across both distribution and manufacturing segments.
Underlying return on equity improved by 4 percentage points to 23%, and gross profit per broker rose 12% to $43,000.
AFG Securities loan book grew 30% to a record $7.1 billion, with EBITDA up 107% to $33 million, demonstrating strong operating leverage.
Subscription income grew 13% to $24 million, marking the eighth consecutive year of growth, and Broker Engine Plus subscribers rose 19% to 4,400.
The company enters FY27 with $13 million of annualized EBITDA uplift from existing investments, including a $10 million contribution from the larger securities book.
Credit quality remains sound with arrears at 1.7% and lifetime losses below one basis point, supported by a predominantly prime loan book.

Negative

Residential lodgement activity has softened since mid-May due to budget announcements, with volumes down about 16% year-on-year.
Refinance activity remains below long-term averages at around 15%, though expected to lift as front book/back book pricing widens.
The broker investments program is behind expectations, with only $6 million invested versus the FY29 aspiration of $35 million, and progress is expected to be back-ended.
Current indicative RMBS pricing is modestly wider than recent strong levels, and about two-thirds of warehouse facilities will be renewed in Q2 FY27, potentially impacting NIM.
The company has not yet seen first-time buyers return to the market, which could limit volume recovery.
Operating expenses in the distribution segment increased due to technology enhancements and broker engagement, though this is part of planned investment.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

AFG.AX - Australian Finance Group Ltd
Full Year 2026 Australian Finance Group Ltd Earnings Call
Aug 20, 2026 / 12:00AM GMT

=====================
Presentation
--------------------------------------------------------------------------------
Unidentified_1 [1]
--------------------------------------------------------------------------------
Good morning and thank you for joining us to discuss AFG's FY26 results. I'm pleased to open by saying this has been an excellent year for AFG, one that reinforces the direction we set for this business some time ago, broaden our earnings base, strengthen our lending platform and keep delivering for the broker network that is central to everything we do. Our net profit after tax was $49 million.

Up 39% on the prior year. Importantly, this growth was not driven by any single part of the business. Both our distribution and manufacturing segments contributed, and today only around 10% of AFG's earnings are directly exposed to short-term movements in residential lending volumes. With the remaining 90%

Already have an account? Log in

Get the full story

Subscribe Now

	Access to All Earning Calls and Stock Analysis
	30-Year Financial on one screen
	All-in-one Stock Screener with unlimited filters
	Customizable Stock Dashboard
	Real Time Insider Trading Transactions
	8,000+ Institutional investors’ 13F holdings
	Powerful Excel Add-in and Google sheets Add-on
	All data downloadable
	Quick customer support
	And much more...

7-Day Free Trial · Cancel Anytime

Subscription fee may be tax deductible.

Excellent

4.6 out of 5

Trustpilot

Research Tools

All-In-One Screener Stock Ideas Stock List Guru List Guru Real-Time Picks Insider List Insider Trades Economic Indicators Sector & Industry Performance DCF Calculator Calculators Discussion Board

Product

Pricing Plans Excel Add-In Google Sheets Add-on Data API Stock Comparison Table Manual of Stocks Instant Alerts Mobile App Newsletters Signup 中文

Education

Financial Glossary Tutorials FAQ Buffett Indicator Shiller P/E Yield Curve Today U.S. Inflation Rate Global Market Valuation Fed Net Liquidity Buffett Assets Allocation

Company

About GuruFocus Career Contact Us Advertise Term of Use Privacy Policy Referral Program Partner Program

Survey

We'd love to learn more about your experiences on GuruFocus.com and how we can improve!

Take Survey

Disclaimers

GuruFocus.com is not operated by a broker or a dealer. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes are provided by QuoteMedia, Inc. (CSI). Company fundamental data is provided by Morningstar. Analyst estimates data is sourced from both Refinitiv and Morningstar, with priority given to Refinitiv data. Data is updated daily.