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Highlights

  • In H1FY24, AFG's total revenue rose by 8.33% year-on-year to AUD 569 million.
  • the company's net profit after tax (NPAT) fell by nearly 34% compared to the same period last year.
  • AFG expects to release its full-year 2024 results on Friday, 30 August 2024.

Australian Finance Group Limited (ASX: AFG) is engaged in mortgage origination and lending business. It manages its business from two segments: Aggregation and AFG Home Loans (AFGHL).

In H1FY24, AFG's total revenue rose by 8.33% year-on-year to AUD 569 million, up from AUD 525.2 million in the previous corresponding period (pcp). This revenue growth was bolstered by increased securitisation interest income and higher commissions. However, despite the positive revenue performance, the company's net profit after tax (NPAT) fell by nearly 34% compared to the same period last year, dropping to AUD 14.5 million from AUD 21.9 million. This decline in NPAT was primarily attributed to higher interest rates.

As per the lending data released by the Australian Bureau of Statistics (ABS) on 02 August 2024, new housing loans increased by 1.3% month over month to AUD 29.2bn in June. The value of new owner-occupier loans saw 0.5% MoM growth to AUD 18.2bn, while new investor loans grew by 2.7% to AUD 11.0bn.

Recent business update

AFG expects to release its full-year 2024 results on Friday, 30 August 2024.

Outlook

In Q4FY24, AFG achieved a notable milestone with AUD 23.31 billion in mortgage finance, marking the highest lodgement volume since Q2FY22. During this period, the average loan size also saw a substantial increase, rising by nearly AUD 12,000 from the previous quarter to reach AUD 640,605. Additionally, total investor loan lodgements surged by 16%, equating to an increase of AUD 1 billion compared to Q4FY23.

Stock performance

The stock price of AFG has surged by 9.09% and 11.42% in the past month and the past three months, respectively. However, the stock price has declined by around 11.11% in the past six months. The stock’s 52 high price is AUD 1.86 as recorded on 15 Aug 2023, and the 52-week low price is AUD 1.27 as recorded on 27 October 2023. The last trading price of AFG as of 16 August was AUD 1.56.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 16 August 2024. The reference data in this article has been partly sourced from REFINITIV.