The Australian Finance Group Ltd (ASX: AFG) share price is in focus today after the company reported FY26 profit up 39% to $49 million, with EBITDA surging 32% and residential lending settlements growing by 18% to $75 billion.
What did Australian Finance Group report?
- Reported NPAT rose to $49 million, up 39% year on year
- EBITDA increased 32% to $74.4 million
- Residential lending settlements grew 18% to $75 billion
- Asset finance settlements were up 19%, reaching $4.3 billion
- Final dividend of 4.8 cents per share, total DPS 9.5 cents (up 4%)
- Net interest margin expanded 9 basis points to 1.25%
What else do investors need to know?
Australian Finance Group has broadened its earnings base, with recurring and diversified income streams now making up 78% of its mix, helping to cushion short-term mortgage market volatility. BrokerEngine subscribers climbed 19% to 4,400, and broker services subscription income rose 13% to $24 million, now representing 23% of Distribution earnings.
The company invested $21 million to drive further growth, including technology, new funding, and minority stakes in broker businesses. AFG’s balance sheet remains strong with $63 million in unrestricted cash and a 94% cash conversion rate, while a share buy-back of up to $15 million was announced in June 2026.
What’s next for Australian Finance Group?
AFG expects continued EBITDA uplift into FY27, with around $13 million in annualised benefit already embedded from recent investments. The group is maintaining focus on margin discipline, funding diversity, and efficiency gains, with further investments in systems, automation, and artificial intelligence planned to support productivity and future growth.
While residential activity has softened in the last two months, AFG sees long-term demand for brokers and competitive lending options supporting its position. The company aims to increase the share of broker service income and expand its AFG Securities loan book, tracking towards FY29 aspirations.
Australian Finance Group share price snapshot
Over the 12 months, Australian Finance Group shares have declined 36%, trailing the All Ordinaries Index (ASX: XJO), which has risen 1% over the same period.
The post Australian Finance Group reports FY26 profit growth and expanded earnings base appeared first on The Motley Fool Australia.
Should you invest $1,000 in Australian Finance Group right now?
Before you buy Australian Finance Group shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Australian Finance Group wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
* Returns as of 1 August 2026
.custom-cta-button p {
margin-bottom: 0 !important;
}
More reading
Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.