Australian Finance Group Ltd. · ASX:AFG
Australian Finance — HY26 Earnings Presentation
39 slides from Australian Finance's earnings presentation, Feb 18, 2026
Slide 1: Half Year Results
HY26 | December 2025 Half Year Results
Slide 2: Presentation Outline
Presentation Outline Item Presenter Pages HY26 Highlights David Bailey 3–7 Financial update Luca Pietropiccolo 8 – 16 Market & operations update David Bailey 17 – 25 Outlook David Bailey 26 – 28 Q&A Appendices
Slide 3: AFG: The backbone of Manufacturing & Tech
AFG: The backbone of Manufacturing & Tech: Australian lending distribution ecosystem expansion Australia’s leading broker network and a growing lending platform 4,300 Active Brokers 1 in 9 Residential mortgages in Australia written by an AFG broker Aggregator of choice Brokers now • AFG Securities -
Slide 4: H1 FY26 Profit up 43% to $24m, record outcomes across the business
H1 FY26 Profit up 43% to $24m, record outcomes across 1 the business Residential Settlements AFGS Closing Book Gross Profit per Broker +19% +24% +15% to $38b to $6.3b to $42k Asset Finance Settlements AFGS Settlements Subscription Income +20% +34% +11% to $2.1b to $1.9b to $11m Broker Investments Ne
Slide 5: AFG Securities starts 2026 with 99% lodgement growth
AFG Securities starts 2026 with 99% lodgement growth Lodgement pipeline building into CY26 with double digit growth across the business Comparison of January lodgements January 2026 change on January 2025 Distribution • Residential lodgements up 23% on January 2025, with settlements also increasing
Slide 6: A business built to deliver through cycles
A business built to deliver through cycles Consistent execution across all 3 strategic pillars supports confidence in growing shareholder value STRATEGIC PILLAR 1 STRATEGIC PILLAR 2 STRATEGIC PILLAR 3 Grow our broker network Provide a market leading Deliver higher margin through technology propositi
Slide 7: Structural drivers underpin our confidence to deliver on our FY29 Aspiration
Structural drivers underpin our confidence to deliver on our FY29 Aspiration Industry consolidation | Scaled network | Resilient funding structures | Capital discipline Measure Dec ‘25 Current FY29 Aspiration STRATEGIC PILLAR 1 Residential settlement growth 13%1 19%1 8% CAGR Grow our broker network
Slide 8: Financial update
HY26 RESULTS Financial update
Slide 9: Earnings accelerating with operating leverage delivered
Earnings accelerating with operating leverage delivered AFG’s strategy delivers value to brokers and contributes to our positive earnings outlook Growth v HY25 EBITDA by segment Underlying gross profit per broker1, 2 ▲ 15% $42k pa 3% lift in gross profit per broker Distribution ▲ 8% to $36m +$1m bro
Slide 10: Delivering growth & strong returns across segments
Delivering growth & strong returns across segments Distribution Manufacturing Central services EBITDA HY26 $36 M +8% on HY25 $14 M +141% on HY25 -$15 M -2% on HY25 Underlying ROE Underlying ROE 37% 30%3 • Represents 72%1 of EBITDA • Record book growth driving higher NIM ($9m) • Includes various cent
Slide 11: Financial outcomes continue to strengthen
Financial outcomes continue to strengthen $m HY26 HY25 Variance Compelling earnings growth Gross profit 1, 2 78.8 68.2 16% • Reported NPAT of $22.4m, up 46% Change in trail book future value (0.7) (1.1) 34% • Underlying ROE increased to 21% Operating expenses 2 (50.1) (47.6) (5%) Operating leverage
Slide 12: 8 years of consecutive growth in subscription income
Distribution 8 years of consecutive growth in subscription income Growing the network and investing in our highest return segment $m HY26 HY25 Variance Gross profit +5% to $58m | ROE 37% | 72% of Group EBITDA Gross profit 1, 2 58.3 55.5 5% Steady growth Change in trail book future value (0.7) (1.1)
Slide 13: Strong earnings growth, delivering EBITDA +141%
Manufacturing Strong earnings growth, delivering EBITDA +141% Record book growth supported by improving operational leverage, delivering increasing returns 30% RoE $m HY26 HY25 Variance Growth Gross profit 1, 2 21.0 13.0 62% • +$6m net interest from book, from growth in book closing at $6.3b • +$3m
Slide 14: Highest NIM since FY18, greater near term certainty
AFG Securities: Highest NIM since FY18 , greater near term certainty 1 Record volume growth achieved while maintaining pricing discipline in the market and expanding NIM. While a cash rate increase cycle may impact BBSW spreads, the current funding market outlook remains positive NIM expansion to 12
Slide 15: Multiple earnings streams building into FY27
Multiple earnings streams building into FY27 Recent capital allocation delivering EBITDA growth of 43% Key investments translating into earnings uplift EBITDA HY26 annualised $35.6m Platform for further earnings growth +43% earnings uplift $31.3m BrokerEngine Plus • Broker Engine migration towards 9
Slide 16: Flexible financial position provides capacity for growth
Flexible financial position provides capacity for growth Cash generation : predictable and diversified cash flows • Trail commissions provides highly predictable and actuarially proven earnings $24m $22m $72m • Highly integrated broker services generate repeatable cashflows subscription Net interest
Slide 17: Market & operations update
HY26 RESULTS Market & operations update
Slide 18: Growing the network and generating greater value
Growing the network and generating greater value Product diversification continues to provide the platform for earnings to continue to build across our segments AFG Underlying Gross Profit Growing the network – active1 brokers increased 4% to 4,300 ($k per broker p.a.) • 91 new AFG broker groups rec
Slide 19: AFG brokers now write 1 in 9 mortgages
Distribution: AFG brokers now write 1 in 9 mortgages AFG’s over-indexing to large groups creates a structural advantage through consolidation and productivity Brokers increasing productivity Delivering growth above market1 Driving consistent book growth Residential lodgements per broker Residential
Slide 20: Earnings mix shifting toward higher margin products
Distribution: Earnings mix shifting toward higher margin products Diversified products & broker services underpin growth in Distribution gross profit per broker, up 3% AFG Home Loans1 transitioning towards AFG technology critical for the excellent Brokers increase take-up of valued higher margin AFG
Slide 21: The dominant channel, growing beyond 80% share
Distribution: The dominant channel, growing beyond 80% share Broker channel now clearly structurally embedded in Australia’s mortgage market – providing competition & choice Brokers remain the preferred channel Proprietary push hasn’t changed customer behaviour Why customers choose brokers Total bro
Slide 22: Record market share with credit quality maintained
Manufacturing: Record market share with credit quality maintained Disciplined processes and AFG’s 31 years’ experience delivering ongoing credit quality Accelerated book growth in H1 FY26 – reaching over $6 billion Portfolio quality maintained, with excellent loss history Settlements Closing book +2
Slide 23: Broker Investments Strategy Update
Broker Investments Strategy Update Targeted minority equity investments aligned to broker succession, scale and long-term growth Disciplined capital deployed at broker transition points compounds benefits as brokers grow and consolidate 23
Slide 24: 5 investments completed, 35 investments by FY29
5 investments completed, 35 investments by FY29 Early execution validating confidence in the expansion of the Broker Investments program over time Measured execution, with capital discipline Creating value over time Direct AFG Broker-led AFG network investments investments effects • 5 investments in
Slide 25: AFG structurally positioned for long term growth
AFG structurally positioned for long term growth Structural demand Sector fundamentals Population & employment growth Broker channel continues to expand Credit growth remains positive Funding costs below long-term average Macro fundamentals remain Finance sector maintains growth, supportive shaped b
Slide 26: Outlook
HY26 RESULTS Outlook
Slide 27: Strong 1H results are expected to accelerate
Near term: Strong 1H results are expected to accelerate Momentum in volumes, margin and mix supports a stronger second half earnings outcome Continued Volume Higher margin mix credit growth momentum building AFG’s broker productivity Jan ’26 lodgements1: New services & features will driving sustaine
Slide 28: Why invest in AFG?
Why invest in AFG? AFG is a scaled, embedded distribution network at the centre of Australia’s lending ecosystem Capital light Broadening Quality Enduring business earnings base earnings market dynamics Broker market share at 77%1 and Productivity, services and Majority of earnings are recurring Hou
Slide 29: Appendices
HY26 RESULTS Appendices
Slide 30: A fairer financial future being delivered by an experienced executive team
A fairer financial future being delivered by an experienced executive team David Bailey, CEO Lisa Bevan, COO Luca Pietropiccolo, CFO 23 years 27 years 3 years Sam McCready, CDO Dom Di Gori, Exec GM Them Lam, 20 years Consumer lending Head of Sales & Distribution 25 years 24 years Years denotes the y
Slide 31: Disciplined capital allocation delivering sustained shareholder value
Disciplined capital allocation delivering sustained shareholder value Focused reinvestment to capture growth opportunities, with capital allocation guided by 4 principles 1 Capital allocation framework Continuous review / recycle capital focused on maximising long term value and shareholder returns
Slide 32: Settlements and Loan Book
Settlements and Loan Book Settlements ($m) 1H26 2H25 1H25 1H26 v 2H25 1H26 v 1H25 Residential 37,956 31,624 31,840 20% 19% AFGHL 2,528 2,006 2,388 26% 6% White Label 1 600 737 950 (19%) (37%) AFG Securities 1 1,928 1,270 1,437 52% 34% Commercial 3,109 2,491 2,568 25% 21% Leasing and Asset finance 2
Slide 33: Key metrics
Key metrics $m (unless otherwise stated) Units 1H26 2H25 1H25 1H26 v 2H25 1H26 v 1H25 Operating income Distribution 561.1 454.9 479.6 23% 17% Key movements Manufacturing 172.8 169.0 161.3 2% 7% Central (18.9) (14.0) (15.3) (35%) (24%) • Distribution operating income up 17% on H1 FY25, with growth in
Slide 34: Reported NPAT to Underlying NPATA reconciliation
Reported NPAT to Underlying NPATA reconciliation Key movements $m 1H26 1H25 HY26 v HY25 Reported NPAT 22.4 15.3 7.1 • The trail commission adjustment represents the non-cash change in the carrying value of the Amortisation of acquired intangible assets 1.2 1.2 0.0 trailing commissions contract asset
Slide 35: AFG holds $183m in liquid assets and high performing investments
AFG holds $183m in liquid assets and high performing investments Key movements $m Dec 2025 Dec 2024 Variance Unrestricted cash 60.6 54.8 5.8 • Net unrestricted cash position Debt facility (59.9) (44.3) (15.6) • Trail book net asset at $86m with the reduction representing increasing average payout ra
Slide 36: Trail book asset
Trail book asset The table below outlines key assumptions used to value trail commissions Key movements Key Assumptions Dec 2025 Dec 2024 Average loan life Between 3.5 and 4.2 years Between 3.6 and 4.2 years • Trailing commissions are received from lenders on settled loans over the life of the loan
Slide 37: Summary Balance Sheet
Summary $m Dec 2025 Dec 2024 Variance Balance Sheet Assets Unrestricted cash 60.6 54.8 5.8 Restricted cash 176.0 115.7 60.3 Key movements Trade and other receivables 11.5 13.8 (2.3) Other assets 6.9 5.5 1.4 • Unrestricted cash, which consists of cash at bank and short Contract assets 1,236.2 1,170.9
Slide 38: AFG Securities – Loan quality
AFG Securities – Loan quality LVR Loan Balance Geographic distribution 1% 3% 5% 9% 22% 10% 23% 11% 16% 28% 53% 37% 29% 29% 24% LVR <70% LVR 70%-80% <$250k $250k - $500k LVR 80%-90% LVR >90% $500k - $750k $750k - $1m VIC NSW QLD WA SA ACT/TAS/NT >$1m 38
Slide 39: Important Disclaimer
Important Disclaimer This presentation contains general information which is current as at 17 February 2026. The information is intended to be a summary of Australian Finance Group Ltd (AFG) and its activities as at 31 December 2025 and does not purport to be complete in any respect. The information
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