Australian Finance Group Ltd (ASX:AFG)

The Australian Finance Group Ltd (AFG) FY26 Half Year Results Investor Presentation highlights a strong performance with a 43% increase in profit to $24 million for the first half of FY26, driven by record outcomes across different segments. AFG has continued its growth trajectory with an 11% increase in subscription income, now contributing 20% to distribution gross profit, and a significant uplift in broker services income for the eighth consecutive year. The group's operating expenses rose by $0.7 million, mainly due to technology enhancements and broker engagement strategies. AFG Securities experienced a notable growth, with a 99% increase in lodgement. The transition towards AFG Securities products with higher margins is seen, as white label volumes reduce. AFG's strong financial position is reinforced by a net cash from operating activities of $20 million, up by 50%, and an underlying return on equity of 21%. The interim dividend for FY26 is set at 4.7 cents per share, with a payout ratio target of between 50% to 70% of adjusted NPAT. The company is focused on leveraging its network scale and investing in high-return segments to reinforce its position in the lending ecosystem.