AFG champions broker market share at FY22 AGM – The Adviser
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Western Australia-based aggregator Australian Finance Group Restricted (AFG) has praised its continued dealer base progress and outlined it had completed the monetary 12 months 2022 with greater than 3,700 brokers underneath its membership, the aggregator confirmed at its annual common assembly (AGM) held on Friday (25 November).
AFG’s chair, Tony Gill, highlighted that throughout the previous 12 months, mortgage brokers had continued to dominate the residential mortgage market and that “they’re now chargeable for nearly 70 per cent of residence lending flows.”
The recognition of the channel has benefitted the expansion of the corporate, too.
Key AFG highlights for FY22 included:
– “File” residential settlements of $59.4 billion, up 36 per cent on FY21
– AFG Securities guide progress of 41 per cent to $4.8 billion
– Twenty per cent progress in normalised NPATA to $61.3million
Moreover, earnings related to AFG’s Thinktank funding continued to “develop strongly” and have been up 16 per cent to $6.1 million in the course of the 12 months, with the corporate’s Fintelligence and BrokerEngine acquisitions additionally performing “above our preliminary expectations,” Mr Gill defined.
He commented: “I’m happy to report that AFG delivered one other wonderful working efficiency in the course of the 2022 monetary 12 months with total volumes and key strategic investments delivering progress in underlying earnings and dividends.”
“This was achieved on the again of robust demand for our mortgage broking and lending providers in the course of the 2022 monetary 12 months, and the Firm’s ongoing diversification technique throughout enterprise traces and lessons.
“This technique has centered on constructing dealer market share throughout numerous asset lessons, and rising margins by way of growth into white label, direct and funding lending.
“Importantly, the extent of exercise within the enterprise has remained resilient because the RBA commenced a lot anticipated rate of interest will increase,” My Gill acknowledged.
RMBS program help regionally and globally
Mr Gill mentioned that the “extraordinary progress” of the previous two years will in fact be impacted by the altering macroeconomic surroundings globally.
As governments internationally transfer to curb quickly rising inflation, debtors should now face growing rates of interest and extra value pressures on their family budgets, he outlined.
“This altering surroundings poses each challenges and alternatives for AFG.” he acknowledged.
Although market sentiment has turned unfavourable on the housing, discretionary spending and lending sectors, Mr Gill reminded that you will need to word the residential mortgage market has traditionally carried out strongly during times of rising rates of interest and, “our technique has us properly positioned to climate this stage of the cycle.”
“We now have been more than happy with the help each onshore and internationally, for our RMBS program,” he added.
“AFG issued $1.7 billion of paper to the market in FY22 and a further $1 billion just lately in September. An excellent consequence that’s testomony to the truth that AFG Securities presents an distinctive lending various with industry-leading credit score high quality.
“It’s recognised as offering a sound funding alternative to the securitisation market,” he concluded.
[Related: Brokers encouraged to donate to AFG charity fund]
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