Full Year 2024 Australian Finance Group Ltd Earnings Call Transcript
Key Points
- Australian Finance Group Ltd (ASX:AFG) celebrated its 30th anniversary, highlighting its long-standing presence and experience in the financial services industry.
- The company has a robust broker network with over 4,000 brokers, contributing to a record high residential loan book of $200 billion.
- AFG Securities book returned to growth, reaching $4.4 billion, indicating a positive trend in their manufacturing segment.
- The company achieved a $54.1 million distribution earnings, up 20%, and a 13% increase in broker subscription.
- AFG has successfully reduced operating expenses by $3 million, showcasing effective cost management.
- Net Profit After Tax (NPAT) was down $8 million to $29 million, reflecting challenges in the manufacturing segment.
- The manufacturing segment's earnings were materially down, with a significant reduction in return on equity to 12%.
- The average Net Interest Margin (NIM) for FY24 was 113 basis points, indicating pressure on profitability.
- The company experienced increased arrears, although still in line with major bank averages, indicating some credit risk.
- White label volumes were down 30% due to partners focusing on their proprietary channels, impacting overall performance.
Thanks very much, and good morning, everyone. I'm here today in Perth with our CFO, Luca Pietropiccolo. You'll hear from Luca shortly. In the interim, what I might do is just walk through at relative pace some of the highlights within the presentation itself, and then Luca will talk about the financials, and I'll come back and do a little bit of a wrap-up around that with some commentary around what we're seeing in the market at the moment.
So before I get started, I will just call out the pages I am on within the presentation and hopefully you can follow along. So moving to page 3 straight away.
So 2024 represents 30 years for AFG. So it's our 30-year birthday and it's a business which has grown from success to success since it started in the early days within Perth, Western Australia. So those 30 years gives us experience in financial services, and it's proven through -- it's a business model which has been proven through the different market cycles we've been experiencing.
We now have over 4,000 brokers
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