Conditions are as good as they have ever been for mortgage brokers and mortgage aggregators.

So AFG should be doing well, and it and it isn’t.

Net profit fell $8.3 million to $29.0 million, “reflecting the intense competitive conditions for mortgages in Australia, particularly during the first half of the year” chair Greg Medcraft wrote in the 2024 annual report.

“Our distribution business has seen a rise in profits, and our timely delivery on several technology initiatives will see us maintain our position as a frontrunner in the market” Medcraft said.

Being competitive, CEO David Bailey said, “has proven challenging in FY2-24. When the major banks were ferociously competing for business with their structural funding advantages, we stepped back from the market. 

“We used this opportunity to refocus our attention to investing in technology to improve the broker and customer experience and deliver long term efficiency gains. 

“Now that the lenders’ Term Funding Facility income streams have been repaid, deposit rates are slowly lifting and front book to back book pricing differentials are no longer as stark. Non-banks are once again becoming competitive, and their market shares are beginning to reflect that rebalance. 

“AFG Securities’ book has now returned to growth, with strong settlements flowing through. Through our broker network, our AFG Securities products are achieving three times the volume of our nearest non-bank competitor.”