Listed mortgage aggregator AFG has recorded strong growth in commercial loans, particularly in the last three months of the financial year.
The company yesterday reported a pro forma net profit after tax (NPAT) result of $19.3 million for the 2015 financial year, approximately 8.4 per cent ahead of prospectus forecasts of $17.8 million, and an increase of 19.8 per cent compared with the pro forma $16.1 million in the 2014 financial year.
AFG managing director Brett McKeon said the 2015 result was underpinned by another strong period of settlement growth primarily by the group’s residential mortgage business but also by its commercial mortgage business.
“We have grown our residential settlements year-on-year by 19 per cent and our commercial settlements increased by 23 per cent, both of which represent record years of settlements,” Mr McKeon said.
“AFG enters the new financial year in a strong position with a combined residential and commercial loan book of $107 billion.”
The last three months in particular were very strong in terms of settlement volumes for the commercial business, giving rise to overall year-on-year settlement growth of $450 million or 23 per cent, according to a company statement.
“Of this growth, around nine per cent was due to an increased average loan size, which grew to just over $0.8 million during the 2015 financial year,” it said.
The surge in commercial mortgage settlements was strongest in Victoria, followed by NSW and Queensland.
Victoria has the highest number of AFG brokers in Australia at 636, compared to 616 in NSW, 519 in Queensland, 474 in WA and 149 in South Australia.
AFG said yesterday that growing its commercial mortgage broking business was a central part of its overall growth strategy.
The Adviser's upcoming New Revenue Streams Boot Camp is the perfect opportunity for brokers to sharpen their skills and expand their offering. Be sure to register for the events, which will be held in Sydney and Melbourne on 27 and 29 October respectively.
This exciting new initiative by The Adviser is presented in partnership with NAB Broker, Suncorp Bank and FAST, and is aimed at brokers looking to add additional revenue streams to their business in today’s changing market.
Tickets are strictly limited so get in quick to secure yours today! Click here to register now.
James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.
He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.
He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.
James holds a BA (Hons) in English Literature and an MA in Journalism.
Technology is becoming an increasingly important area of investment for brokers as their jobs get more and more burdensome. Tas Bindi speaks to broking industry leaders about the tools they use to support and advance their business.
The Adviser’s Commercial & Business Writers 2019, sponsored by Thinktank, recognises the best-performing brokers in the commercial property and business lending sectors. Tas Bindi finds out how the leading brokers stay on top of their game.
Find out how Nathan Smith, owner of Sutherland Shire-based brokerage Birdie Wealth, battled through redundancy and established his own award-winning brokerage.