Australian Finance Group Ltd. · ASX:AFG
Australian Finance — Macquarie Australia Virtual Conference 2020
16 slides from Australian Finance's conference presentation, May 5, 2020
Slide 1: Market Release
Market Release 5 May 2020 Market Announcements Office ASX Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam MACQUARIE CONFERENCE PRESENTATION The Company will address the Macquarie Australia Virtual Conference today. Attached is the accompanying presentation. Authorised for dis
Slide 2: Macquarie Conference Presentation 2020
2020 MACQUARIE CONFERENCE PRESENTATION
Slide 3: H1 FY20 results - Highlights
H1 FY20 results - Highlights H1 FY20 Residential Settlements flat with AFG Home Loans now $17.7M $18.3M $14.7M $16.9B services over 25,000 $16.7M $16.7M $14.4M Q2 lodgements and retail customers settlements are up 19% H1 FY18 H1 FY19 H1 FY20 H1 FY18 H1 FY19 H1 FY20 and 6% on last year Reported NPAT
Slide 4: Stable platform continues to support future growth
Stable platform continues to support future growth Over half of overall profit now generated outside traditional aggregation. Providing a stable platform for future growth Strengths of the business model: ⊲ Established and diversified network with 2,975+ Asset AFG AFG Commercial Finance brokers acro
Slide 5: AFG, AFGHL & AFGS
AFG, AFGHL & AFGS Loan book as at 31 December 2019 4
Slide 6: Strategic & market outlook
Strategic & market outlook AFG is well positioned to capture future growth opportunities. Disruption from COVID-19 will likely result in some market disruption in the short term, with the government implementing a number of initiatives to support lenders through the pandemic Well positioned for futu
Slide 7: AFG Mortgage index update
AFG Mortgage index update Record month to close the quarter as major lenders put their foot down ⊲ Largely driven by record low interest rates, brokers helped borrowers shore up their positions against the impacts of COVID-19 ahead of potential shutdowns Jan 2020 Feb 2020 Mar 2020 Q3 FY20 Q3 FY19 ⊲
Slide 8: April 2020 trading
April 2020 trading Comparison of April 2020 lodgements to April 2019 ⊲ Total residential lodgements $5.2 billion, up 34% on April 2019 with growth in all states, fuelled by a spike in refinance activity. It is noted credit activity in April 2019 was benign following the Royal Commission and in the l
Slide 9: Types of lodgements
Types of lodgements Significant shift in customer mix with refinancers increasing, and decreases for First Home Buyers and Upgraders Also a large increase in the percentage of lodgements choosing a fixed interest rate with the cash at 0.25% Customer type Fixed rate % 45% 35% 40% 30% 3 0 . 0 % 35% 30
Slide 10: Lending activity
Lending activity Majors taking back market share during COVID-19. Brokers playing a critical role in providing distribution and fulfilment in the absence of branch Major vs Non-Major Non-Major Market Share 100% 90% 80% 50% 70% 45% 40% 60% 35% 50% 30% 40% 25% 20% 30% 15% 20% 10% 10% 5% Q3 Q4 Q1 Q2 Q3
Slide 11: Lending activity
Lending activity Average loan size has marginally increased while the national average LVR has reduced slightly in April $800 National Average Loan Size National Loan to Value Ratio 74% $700 72% $600 70% $500 68% 66% $400 64% $300 62% $200 60% $100 58% 56% 54% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 12: Investor loans
Investor loans While the percentage of Investor loans is flat overall, the proportion of refinancing increased to offset lower new Investor loans Investor Loans % Investor Loans % per State 60% 60% 60% 50% 50% 50% 40% 40% 4 0% 30% 30% 3 0% 20% 20% 2 0% 10% 10% 1 0 % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 13: Continued investment in technology
Continued investment in technology ⊲ Supporting the execution of our strategy to attract & retain brokers - upgrading AFG’s core broker platform with the latest technology for growth, efficiency and customer management ⊲ Allows the option of online interaction between broker and customer ⊲ Improve p
Slide 14: In conclusion
In conclusion H1 FY20 result generally demonstrated the robust nature Investment in technology to update the core broker of the business driven by AFG’s earnings diversification platform with the latest technology capabilities for strategy. brokers’ growth, efficiency and customer management. Delive
Slide 15: Q&A Thank you
AFG Q&A Thank you
Slide 16: Important disclaimer
Important disclaimer This presentation contains general information which is current as at 4 May 2020. The information is intended to be a summary of Australian Finance Group Limited (AFG) and it its activities as at 31 December 2019, and does not purport to be complete in any respect. The informati
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