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AFG grows book to $140bn

AFG grows book to $140bn

The major aggregator has recorded 11 per cent growth in its combined residential and commercial loan book over the first half of FY2018.

AFG’s combined book is now valued at $140.8 billion, with its residential mortgage book valued at $133.6 billion, after home loan settlements grew by 6 per cent over the period.

The aggregator recorded an underlying NPAT of $14.4 million, up by 11 per cent on the same period last financial year.

AFG Home Loans (AFGHL) continued to deliver positive financial growth, and settlements grew by 31 per cent to $1.62 billion. The AFGHL loan book has reached $6.5 billion, an increase of 40 per cent on the same period last year.

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AFG Securities completed a successful $350 million residential mortgage-backed securities (RMBS) issue in October 2017, which underlined the performance of the AFG Securities business.

“The securitisation program is an important contributor to the company’s overall growth strategy,” AFG CEO David Bailey said.

“We are delighted to see the success of this issue further validating the AFG Securities business model. It represents another vital alternative for AFG brokers to access competitively priced mortgage products for all Australian borrowers.

“The constant regulator-enforced changes, together with our deep understanding of the market, mean AFG Securities is well placed to identify opportunities in this sector.”

Mr Bailey noted that there have been a number of enquiries into the mortgage industry, some of which are still ongoing.

“AFG has actively participated in these and we will continue to do so to ensure [that] the positive contribution brokers make is recognised,” the CEO said.

“Significant regulatory activity has meant the lending market remains complex. Products are split between lending profiles, rules and pricing bands. Changes are more frequent, and the assistance required to navigate these changes and ensure a fit for individual circumstances means the role of a mortgage broker becomes even more vital.”

AFG grows book to $140bn
mortgagebusiness

 

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