Australian Finance Group Ltd. · ASX:AFG

Australian Finance — FY2026 Earnings Presentation

35 slides from Australian Finance's earnings presentation, Aug 20, 2026

  1. Slide 1: Full Year Results FY26

    For personal use only FY26 | JUNE 2026 Full Year Results Profit growth and a broadening earnings base

  2. Slide 2: A vital part of Australia's lending infrastructure

    A vital part of Australia's lending infrastructure For personal use only AFG connects over 4,300 brokers with 80+ lenders across a broker channel that now writes 81% of new residential lending Distribution: Australia’s leading broker network Multiple earnings streams across the value chain Mortgages

  3. Slide 3: A capital-light distribution model with growing earnings and strong shareholder returns

    A capital-light distribution model, with growing earnings and strong For personal use only shareholder returns In a growing Australian finance market, AFG has multiple avenues for earnings expansion and a proven model over 32 years 1 THE CORE 2 THE GROWTH PLATFORM 3 RETURNS & CAPITAL DISCIPLINE A le

  4. Slide 4: FY26 Profit up 39%, with growth across the business

    F Y 2 6 H I G H L I G H T S FY26 Profit1 up 39%, with growth across the business For personal use only Distribution and Manufacturing contributing to increases in earnings and returns Distribution2 Manufacturing3 Residential settlements AFGS closing book Cash flow from operations +18% to $75bn +30%

  5. Slide 5: Progress against FY29 aspirations across the business

    Progress against FY29 aspirations1 across the business For personal use only Same 3 strategic pillars. Capital allocation framework and management experience delivering growth across the business HY25 FY26 FY29 ASPIRATION STRATEGIC PILLAR 1 Residential settlement growth 13% 18% 8% CAGR Grow our brok

  6. Slide 6: Financial update

    For personal use only FY26 RESULTS Financial update

  7. Slide 7: EBITDA up 32%, driven by a broader earnings base

    EBITDA up 32%, driven by a broader earnings base For personal use only Earnings uplift across segments, with improving cost efficiency, accelerating profit growth +39% EBITDA by segment Key financial metrics +$17m −$2m Variance Metric FY26 to FY25 $74.4m Gross profit1 $159m +12% Cost to income1, 2 5

  8. Slide 8: Broader earnings base increases resilience

    T H E C O R E Broader earnings base increases resilience For personal use only Most earnings are supported by existing books and diversified income rather than near-term mortgage flows SIGNIFICANT CHANGE IN AFG EARNINGS MIX EARNINGS DIRECTLY EXPOSED TO SHORT TERM VOLATILITY 10% ~10% Directly exposed

  9. Slide 9: Increasing returns across both Distribution and Manufacturing

    Increasing returns across both Distribution and Manufacturing For personal use only Gross profit per broker up 12% to $43k. Distribution contributes 68%1 of EBITDA. Manufacturing scaling at attractive returns. EARNINGS DRIVERS 2 Underlying gross profit per Distribution Gross profit $115m, up 2%. Gro

  10. Slide 10: NIM increased to 125bps, above the aspiration

    NIM increased to 125bps, above the aspiration1 For personal use only Record term issuances, improved warehouse economics and new funding sources supported FY26 margin expansion FY26 Net interest margin (bps) BBSW below cash rate by an average 5bps FY26 funding execution driving NIM expansion through

  11. Slide 11: Disciplined capital allocation, guided by principles

    Disciplined capital allocation, guided by 4 principles For personal use only Funding high growth options and returns to shareholders – supported by strong balance sheet and cash flow generation 1 FY26 capital application Continuous review / recycle capital Allocate to strategically aligned assets re

  12. Slide 12: AFG enters FY27 with earnings momentum embedded

    AFG enters FY27 with earnings momentum embedded For personal use only c.$13m of annualised EBITDA uplift1 from investments carries into H1 FY27, building on the 29% CAGR – delivering earnings growth and resilience Group EBITDA by half Investments deliver FY27 run-rate uplift 29% CAGR $39m FY26 FY27

  13. Slide 13: Market & operations update

    For personal use only FY26 RESULTS Market & operations update

  14. Slide 14: AFG is well positioned as larger broker groups continue to take share

    T H E C O R E AFG is well positioned as larger broker groups continue to take share For personal use only Broker channel expansion and consolidation favours larger groups, a segment where AFG is over-represented and growth is 2.5x faster Broker channel gaining share of +$650bn market1 Why AFG is pos

  15. Slide 15: Near-term activity has softened since mid-May

    T H E C O R E Near-term activity has softened since mid-May For personal use only Volumes have slowed in the last two months driven predominately by Investor activity. Market fundamentals remain, with 11% long-term growth1 VOLUME BY STATE2 EARLY POST-BUDGET TRADING2 Residential lodgements have slowe

  16. Slide 16: Better technology strengthens the value of the broker relationship

    G R O W T H P L A T F O R M Better technology strengthens the value of the broker relationship For personal use only AFG’s scale, lender connectivity and technology investment help brokers serve more customers and deliver a better experience Customers value Technology adds AFG has the scale broker g

  17. Slide 17: Diversification strengthens Distribution's resilience

    G R O W T H P L A T F O R M Diversification strengthens Distribution’s resilience For personal use only Earnings mix across products benefits customers, brokers and provides scale and further resilience across markets RESID ENT IAL ASSET FI NANC E & LE ASIN G DIVER SIF IED PRO DUC TS Long-term growt

  18. Slide 18: Broker services subscription income expands Distribution earnings

    G R O W T H P L A T F O R M Broker services subscription income expands Distribution earnings For personal use only Growing 14% pa, recurring Broker services income now represents 23% of Distribution earnings, tracking well to aspiration of 30% by FY29 Subscription income Services brokers use every

  19. Slide 19: Manufacturing: Book up 30% and record market share

    G R O W T H P L A T F O R M Manufacturing: Book up 30% and record market share For personal use only AFG funded residential lending continues to grow, supported by improved retention and continued product development AFG Securities loan book ($bn) AFG Securities market share $9bn • Settlements reach

  20. Slide 20: Credit quality maintained – excellent history of book performance

    G R O W T H P L A T F O R M For personal use only Credit quality maintained – excellent history of book performance 20 years of lending performance — a scaling book that is well provisioned and cycle-tested 1.7% <1bps $4.6m arrears (30+ days) including accounts in hardship lifetime losses on $19bn s

  21. Slide 21: Outlook

    For personal use only FY26 RESULTS Outlook

  22. Slide 22: AFG enters FY27 from a stronger earnings position

    O U T L O O K AFG enters FY27 from a stronger earnings position For personal use only A larger book, improved funding, growing broker share and prior investment underpin earnings growth through market cycles. Market outlook AFG outlook HOUSING RATES AND DELIVERING ON INVESTMENT DEMAND FUNDING ASPIRA

  23. Slide 23: Appendices

    For personal use only FY26 RESULTS Appendices

  24. Slide 24: A fairer financial future being delivered by an experienced executive team

    A fairer financial future being delivered by an experienced executive team For personal use only David Bailey, CEO Lisa Bevan, COO Luca Pietropiccolo, CFO 24 years 28 years 4 years Sam McCready, CDO Dom Di Gori, Exec GM Them Lam, Chief Distribution 21 years Consumer lending and Marketing Officer 26

  25. Slide 25: Settlements and Loan Book

    Settlements and Loan Book For personal use only Settlements ($m) FY26 FY25 FY24 FY26 v FY25 FY26 v FY24 Residential 74,955 63,464 55,181 18% 36% AFGHL 5,238 4,394 3,564 19% 47% 1 White Label 1,267 1,687 1,927 (25%) (34%) AFG Securities 1 3,971 2,707 1,637 47% 143% Commercial 6,279 5,059 4,453 24% 41

  26. Slide 26: Growth across the business

    Growth across the business For personal use only Earnings, returns and cash generation all improved in FY26 $m FY26 FY25 Variance Continuing earnings growth Gross profit 1 159.4 142.9 12% • Reported NPAT of $48.5m, up 39% Change in trail book future value (2.9) (3.7) 22% • Underlying RoE increased t

  27. Slide 27: Key metrics

    Key metrics 2H26 v 2H26 v For personal use only $m (unless otherwise stated) Units 2H26 1H26 2H25 1H26 2H25 Operating income Key movements Distribution 513.5 561.1 454.9 (8%) 13% • Distribution operating income is lower than H1 Manufacturing 206.1 172.8 169.0 19% 22% FY26 resulting from Trail book m

  28. Slide 28: Continued growth of subscription income broadens earnings

    D I S T R I B U T I O N Continued growth of subscription income broadens earnings For personal use only Growing returns in capital-light Distribution segment $m FY26 FY25 Variance Gross profit +2% to $115.2m | ROE 40% | 68% of Group EBITDA 1 Gross profit 115.2 113.3 2% Change in trail book future va

  29. Slide 29: Consistent book growth and scale efficiency delivering EBITDA +107%

    MANUFACTURING Consistent book growth and scale efficiency delivering EBITDA +107% For personal use only Record settlement market share driving book growth to $7.1bn while operational leverage accelerates earnings Gross profit +52% to $44.9m | ROE 30% | 32% of Group EBITDA $m FY26 FY25 Variance 1 Gro

  30. Slide 30: Reported NPAT to Underlying NPATA reconciliation

    Reported NPAT to Underlying NPATA reconciliation For personal use only Key movements • The trail commission adjustment represents the non- $m FY26 FY25 Variance cash change in the carrying value of the trailing Reported NPAT 48.5 35.0 13.5 commissions contract assets and liability. Additional inform

  31. Slide 31: AFG holds $185m in liquid assets and high performing investments

    AFG holds $185m in liquid assets and high performing investments For personal use only Key movements $m Jun 2026 Jun 2025 Variance • Net unrestricted cash position Unrestricted cash 62.6 63.7 (1.1) • Trail book net asset at $84m with the reduction representing increasing average payout ratio as well

  32. Slide 32: Trail book asset

    Trail book asset For personal use only The table below outlines key assumptions used to value trail commissions Key movements • Trailing commissions are received from lenders on settled Key Assumptions Jun 2026 Jun 2025 loans over the life of the loan based on the outstanding loan book balance Avera

  33. Slide 33: Summary Balance Sheet

    Summary Balance Sheet $m FY26 FY25 Variance For personal use only Assets Unrestricted cash 62.6 63.7 (1.1) Restricted cash 182.8 160.1 22.7 Key movements Trade and other receivables 13.2 15.2 (2.0) Other assets 6.1 4.5 1.6 • Unrestricted cash of $62.6m consists of cash at bank and Contract assets 1,

  34. Slide 34: AFG Securities – Loan quality

    AFG Securities – Loan quality For personal use only 2% 4% 3% 14% 10% 23% 22% 27% 12% 51% 16% 33% 24% 30% 29% 34

  35. Slide 35: Important Disclaimer

    Important Disclaimer For personal use only This presentation contains general information which is current as at 19 August 2026. The information is intended to be a summary of Australian Finance Group Ltd (AFG) and its activities as at 30 June 2026 and does not purport to be complete in any respect.

Australian Finance Group — FY2026 Earnings Presentation on 6ix