ISCOVER
The major aggregation group has attributed its FY25 results to “strong execution” across its strategic priorities.
Australian Finance Group (AFG) has reported record broker lodgement and settlement volumes for the financial year ending 30 June 2025 (FY25), according to results released by the ASX-listed aggregator on Wednesday, 27 August.
Residential lodgements climbed 18 per cent in FY25 to a record $101 billion, while settlements rose 15 per cent to $63 billion.
This saw AFG’s total residential loan book hit $210 billion, representing a 5 per cent year-on-year increase.
FY25 also saw an increase in commercial mortgage settlements, which rose 14 per cent to $5.0 billion, while the loan book expanded 12 per cent to $14.7 billion.
AFG’s total commercial mortgage loan book grew 11 per cent year on year to $13.2 billion.
Broker recruitment
The group’s broker network also hit a record high in FY25, with more than 4,200 active brokers now writing loans through AFG or Fintelligence, the asset finance aggregator it acquired in 2024.
This represented a 5 per cent year-on-year increase, with AFG noting that retiring brokers are creating a strong acquisition pipeline for large broker investment groups.
During the reporting period, AFG announced strategic partnerships with Sydney-based Loan Path Finance, Melbourne-headquartered Empower Wealth Group, and Western Australian-based Lifespan Mortgage Services.
David Bailey, AFG CEO, said the aggregator expected that these investments would also help boost earnings in the next financial year.
“With a strong pipeline of future opportunities emerging, we have confidence that this segment can represent a new avenue of earnings growth,” he added.
AFG is expecting to have 35 equity broker investments by FY29.
Diversified offering
The ASX-listed group also reported strong growth across its in-house offerings, including its white-label brand, AFG Home Loans, and its wholesale lending arm, AFG Securities.
Settlements for AFG Home Loans rose 23 per cent year on year to $4.3 billion, while its total loan book rebounded from a softer FY24 to climb 8 per cent to $13.8 billion.
The aggregator also highlighted growth opportunities for this segment presented by the exit of the major white label funder Advantedge brand (which is being subsumed by National Australia Bank (NAB)).
AFG Securities recorded its highest settlement volumes since FY22, up 65 per cent year on year to $2.7 billion, while its total book grew 23 per cent to $5.4 billion.
It now holds around 4.3 per cent of market share, the largest proportion since FY22 (which itself benefited from an abnormal funding market post-COVID-19).
Thinktank, the non-bank lender that AFG owns a 32 per cent share in, also saw its loan book grow 17 per cent over FY25, to $6.8 billion.
Bailey said the aggregator’s business model had demonstrated resilience in a constantly changing economic landscape.
“The return to favourable conditions for our manufacturing division has underscored the strength of AFG Securities, while our supplementary white label offerings continue to enhance our overall proposition,” he said.
“With a manufacturing loan book of $5.5 billion and an economic environment which is conducive to growth in property prices, we anticipate trading conditions for AFG Securities will continue to be positive in the current rate reduction cycle.”
Bullish outlook
Overall, Bailey projected a bullish outlook for the group, noting that Australia’s housing finance market is poised for continued momentum, supported by full employment, ongoing supply constraints and sustained borrower demand.
“With interest rates falling, the environment is conducive to increased home loan activity. The strength of the broker channel remains a key driver, with borrowers continuing to seek personalised service, tailored lending solutions, and competitive alternatives,” he said.
Indeed, the AFG financial results show that lodgements in the final quarter of the year were up 19 per cent to $28 billion, with July 2025 setting AFG’s highest residential lodgement month on record of over $10 billion.
The group is aspiring to have an 8 per cent compound annual growth rate to FY29.
AFG Securities lodgements were also up 15 per cent in July 2025 when compared to July 2024.
This growth is setting up momentum for a strong FY26 – particularly given expectations that rates will continue to fall this year, according to the aggregator.
AFG expects the AFG Securities book to hit $9 billion by FY29, delivering a higher margin for the group.
Bailey also highlighted AFG’s investments in technology enhancements to improve broker workflows and customer experiences, as well as the importance of product diversification in supporting further volume growth.
“The investments we’ve made in innovation, partnerships, and competitive lending solutions are already delivering results, and we see significant opportunities for continued strong earnings growth in the year ahead. With our unwavering commitment to empowering brokers, delivering value to customers, and generating sustainable returns for shareholders, we are well-positioned to continue building on our success.”
Overall, AFG reported a 26 per cent increase in earnings before interest, tax and amortisation (EBITDA) of $56.2 million and a net profit after tax (NPAT) of $25 million – up 21 per cent.
Its income streams from subscriptions rose 13 per cent over the year, to $21 million, due to continued growth in take-up of BrokerEngine and additional broker services.
AFG noted that broker needs are evolving and suggested that the group “has the balance sheet position to continue to invest in the broker proposition to meet evolving needs - extending [its] advantage for growth-focused brokers”.
[Related: AFG settles record volume in FY24]
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