26/02/2016 - 14:28

AFG loan book passes $114bn

26/02/2016 - 14:28

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Mortgage broking wholesaler Australian Finance Group has continued its growth run with an increase in profit for the six months to December.

AFG loan book passes $114bn
Brett McKeon says AFG's core businesses have been performing strongly.

Mortgage broking wholesaler Australian Finance Group has continued its growth run with an increase in profit for the six months to December.

Perth-based AFG announced today a 27 per cent increase in half-year net profit to $11.7 million alongside an 11.4 per cent rise in revenue to $281.4 million.

The result was achieved through increases settlements, improved securitisation margins and growth in AFG’s own-branded products.

Managing director Brett McKeon said the company’s loan book has now grown to $114 billion.

“Our core residential and commercial businesses both posted solid growth on the same period in 2015,” he said.

“Residential settlements for the first-half were $17.7 billion, up 16 per cent on the corresponding period last year.

“Our commercial business also performed well with $1.4 billion in settlements – up 35 per cent on the first half of 2015.”

Mr McKeon said the company had achieved consistent growth in both residential and commercial settlements in the past five years.

“Our half-year results are further evidence of the positive outlook for the broker distribution channel in the Australian market,” he said.

“The key drivers of the broker value proposition are policy, pricing and service - the right policy for the borrower’s individual circumstances, at the right price, with the lender that can provide the best service to meet the needs of their customer.”

AFG shares closed 1 per cent lower to 99 cents each.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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