AFG Home Loans sees return to growth, while brokerage investments expected to be earnings-accretive in year ahead
Aggregator and non-bank lender AFG’s broker network hit a record high of more than 4,200 brokers in its 2025 financial year, according to annual results published on Wednesday.
The ASX-listed group increased residential settlements by 15% to $63 billion in the year ending 30 June.
Commenting on the results, chief executive David Bailey (pictured) hailed “the return to favourable conditions” for its high-margin mortgage manufacturing segment.
Following a decline in volumes in the 2024 financial year, AFG Home Loans reclaimed lost ground and then some with a more than 8% increase in volumes to $13.6 billion.
AFG is eyeing up a greater share of the white-label home loan market in the year ahead, as NAB’s white-label Advantedge product seeks an exit.
“The recent exit of NAB’s Advantedge presents a growth opportunity for AFG Securities,” the results stated.
Bailey added: “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.”
Read more: Did NAB herald the end of white label mortgages? Not likely
AFG’s heavy investment in its own home loan products has received criticism over conflict of interest after removing competing lenders from its aggregation panel earlier this year, something the group robustly rebukes.
“I don’t think there can be (a conflict), because the aggregator and the manufacturer are not involved in the choice of product with the end client,” AFG’s general manager industry and partnership development Mark Hewitt recently told MPA.
“In making that decision to remove the lenders from the panel, we looked very closely at the duplication of products that existed, and a lot of lenders were offering very similar products and services,” said Hewitt, adding that with around 90 lenders on panel, “there’s an extensive amount of choice”.
By its own estimations, AFG commands an 11.6% share of the non-bank lending market among its brokerage network, up from 9.6% in 2024.
Brokerage investment keys to growth
AFG is also optimistic about its broker investments program. The group has made three equity investments into brokerages, including one from competing aggregator outsource Financial.
With a strong pipeline of future opportunities emerging, we have confidence that this segment can represent a new avenue of earnings growth,” said Bailey.
Group-wide, AFG’s net profit after tax increased 21% to $35 million.
The results paint a picture of a diversified financing business pursuing aggressive 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,” said Bailey.
