A bigger, more productive AFG broker network has driven record half-year flows, sharpening the group’s growth pivot.
Australian Finance Group (AFG), the ASX-listed aggregator, has reported record volumes in its first-half of the financial year 2026 (1H26) and a larger loan book, underpinned by a growing broker network and a deliberate shift towards higher-margin manufacturing.
AFG said brokers lodged $62 billion of home loans in the six months to 31 December 2025, with $31.6 billion written in the December quarter alone – the highest quarterly figure in the group’s history.
Residential settlements over 1H26 rose 19 per cent to just under $38 billion, up from $31.6 billion in 2H25.
The surge in activity pushed AFG’s residential loan book to $223.7 billion by the end of the half, up 6 per cent from $210.5 billion at 30 June 2025.
Commercial settlements also climbed, reaching $3.1 billion for the half, a 25 per cent increase on the prior period.
The commercial loan book expanded 13 per cent over the same period to $16.6 billion, from $14.8 billion.
Across all segments, AFG’s total loan book grew to $240.3 billion, up from $225.3 billion, building on the record base set in the full-year result.
Proprietary products accelerate as mix shifts
The lending arms of AFG also saw an acceleration in growth over the half.
AFG Home Loans (AFGHL) - its white-label arm which also includes AFG Securities - settled $2.53 billion of residential volume in 1H26, a 26 per cent lift on the $2.01 billion written in 2H25, despite white label settlements falling 19 per cent to $600 million (from $737 million).
Meanwhile, AFG Securities settlements surged 52 per cent to $1.93 billion (from $1.27 billion), highlighting a clear tilt towards the securitised product suite.
This is partly due to the group shiting its earning mix to higher margin products under AFG Securities - which the group said is "expected to play a growing role within AFG Home Loans portfolio".
The split is mirrored in the loan book, with the AFGHL book reaching $12.15 billion (up around 3 per cent), while white label balances slipped 5 per cent to $7.90 billion. AFG Securities’ book, in the mean time, grew 14 per cent over the half to $6.25 billion - up 23 per cent on 1H25.
Net interest margin in the securitised business increased by 11 basis points to 124 bps – the highest level since FY18.
Broker network expands, productivity climbs
AFG’s active broker network increased by 4 per cent over the half to approximately 4,300, with 91 new broker groups joining the platform.
The group said one in nine residential mortgages in Australia were now written by an AFG broker.
Residential lodgements per broker climbed to $19 million, up from $16 million in 1H25 – a 22 per cent lift reflecting higher volumes and larger average loan sizes.
Gross profit per broker rose 15 per cent to $42,000, supported by higher throughput and a greater contribution from value-add services and in-house lending.
Subscription income – largely from technology tools such as BrokerEngine and other broker services – increased 11 per cent to $11 million.
AFG CEO David Bailey said the broker channel remained central to the group’s strategy.
“AFG’s broker network continues to expand with one in nine residential loans nationwide now written through an AFG broker,” he said.
“Our strategic priorities remain clear – expanding and enhancing the broker network, offering advanced technology solutions and delivering higher margin products. Our model is one of shared success.”
Strong January as brokers generate ‘record lodgement in pipeline’
The aggregation group highlighted a strong start to the second half, pointing to record-breaking January activity on top of the high December quarter lodgements.
Residential lodgements in January 2026 were up 23 per cent on January 2025, with AFGHL lodgements up 56 per cent and AFG Securities up 99 per cent nationally.
Bailey said the latest figures showed the broker channel’s growing importance as a primary distribution path for lenders.
“As the broker channel continues to grow in importance as a primary distribution pathway for home lending, AFG is well positioned to benefit,” he said.
Earnings lift and broker investment push
Overall, the aggregator's net profit after tax for 1H26 rose 46 per cent year on year to $22.4 million, while underlying gross profit increased 16 per cent to $78.8 million.
AFG said “record residential settlements” were driving margin expansion, adding $1.9 million to gross profit.
AFG also continued to build out its broker equity strategy.
The group completed five strategic broker investments to date – three in the first half alone – and seven secondary investments, all of which it said were delivering earnings growth and expanding AFG’s reach.
AFG reiterated that it intended to invest in 35 brokerages by 2029.
Bailey said the broker investment program was gaining traction as part of AFG’s broader growth plans.
“The Broker Investment program is gaining momentum, with five strategic broker group investments completed to date – all delivering earnings growth and expanding AFG’s reach,” he said.
[Related: AFG lands record $1.2bn prime RMBS transaction]
