ISCOVER
COG Financial Services has credited record broker growth and diversification across SME and personal finance for driving wider group growth.
Asset finance group COG Financial Services (COG) has revealed record broker growth in its full-year financial results for the year ending 30 June, despite a marginal dip in net assets finance.
The group – which covers broking and aggregation businesses (such as COG Aggregation and Platform Finance), novated leasing (including CarSelect), asset management and lending (including Westlawn), and financial advisory (such as Centrepoint Alliance) – financed $8.4 billion in net assets over FY2025 through its aggregation businesses, a slight decline from $8.9 billion last year.
The dip was partly attributed to the end of the instant tax write-off incentive (which finished in June 2024).
The group’s finance broking and aggregation business posted a $10 million revenue contraction (4 per cent) to $233.2 million, attributed to tightened brokerage and volume-bonus incentive commission rates from financiers, coupled with slightly lower volumes.
The unit is generating organic growth in equipment finance, insurance broking, and through equity investment in brokers, COG said.
COG’s finance broking and aggregation arm had 1,792 brokers from 794 brokerages aggregating through it, making it Australia’s largest asset finance broker and aggregator.
For COG’s asset management and lending business, the largest profit contribution for the year was from peer-to-peer lending on property mortgage-backed business loans via its subsidiary Equity-One.
New leases and loans written in FY25 through the asset management and lending businesses totalled $106.9 million (down from the $152 million written in FY24).
COG reaffirms acquisitive growth plans
In its annual report, COG stated that the company plans to continue buying broking entities and novated leasing entities where there is a “strategic, cultural, and commercial fit” and is committed to a broker and novated lease accumulation strategy.
Commenting on the annual results, COG CEO Andrew Bennett said: “COG’s underlying performance [underlying net profit after tax] was up 4 per cent on the prior year after allowing for the diminished contribution of COG’s TL Commercial operating lease business in run-off.
“This is a pleasing result which affirms COG business model through different economic cycles. We remain encouraged by the continued strong momentum in the group’s novated leasing segment.”
Antony Robinson, COG’s chairman, noted that the group’s strategy was to “focus on building more broking capabilities”.
“That is true in the core broking business, in the peer-to-peer broking business of Equity-One and the salary packaging business unit where broking of novated leases is a principal driver of performance,” Robinson added.
“This, coupled with our small insurance broking business and lending business, gives us a wonderful diversity of earnings.”
Mark Rayson, head of COG Aggregation, said growth underscored the strength of COG’s business model.
“Last financial year was tough for many brokers, with reduced asset values and the end of government stimulus, but our network has continued to grow and diversify,” Rayson said.
“Brokers showed their strength by staying close to clients and maximising every opportunity. Through it all, COG has been a constant – providing the largest lender panel in the market along with the scale, stability and resources to help brokers navigate a challenging market and expand into new areas.”
Damian Mantini, head of strategic partnerships at Platform Finance, said the performance highlighted both broker resilience and appetite for diversification.
“Brokers are adapting to client demand by going wider – into SME, personal and other finance solutions – and Platform Finance is helping them make that transition,” Mantini said.
[Related: COG credits asset finance brokers for revenue rise]
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