MA Financial Group Ltd (“the Group”; ASX: MAF) is pleased to present its financial results for the six months to 30 June 2022 (1H22).
Key highlights
- Underlying earnings per share (EPS) up 42% on 1H21 to 17.6 cents
- Statutory EPS up 29% on 1H21 to 12.9 cents
- Assets under management (AUM) up 18% on 1H21 to $7.2 billion
- 1H22 gross fund inflows of $570 million, slightly down from $603 million in 1H21
- Significant growth and investment in Lending business:
- 91% growth in loan portfolio to $718 million since 1H21
- Finsure loan book on platform up 26% to $84 billion since Dec 21
- Corporate Advisory revenue of $27.8 million, up 12% on 1H21
- Interim dividend of 6 cents per share, up 20% on 1H21
- Reaffirm FY22 guidance. Underlying EPS expected to be up 30% to 40%1 on FY21.
MA Financial Group today announced a record first half result. The result highlights the diversity of the business and its ability to grow despite challenging market conditions.
Underlying Revenue of $146.2 million was up 54% on 1H21 with increased contributions from each division. Asset Management grew Underlying Revenue by 58% on 1H21 underpinned by strong transaction and performance fees and growth in base management fees. Gross fund inflows of $574 million were highlighted by strong inflows into the Group’s credit funds.
The Group’s Lending division broadened its capability with the successful integration of Finsure. MA Financial’s Loan Book increased by 91% on 1H21 to $718 million, driven by strong organic growth and the acquisition of the remaining 52.5% of residential lender MKM in March.
Corporate Advisory & Equities benefited from solid M&A activity, led by the Group’s role advising Consolidated Press Holdings (CPH) on its stake in Crown Resorts, and broadened capability following strategic investments in talent.
1H22 Underlying Net Profit After Tax of $28.1 million and Underlying EPS of 17.6 cents were up 58% and 42% on 1H21 respectively. The Group continues to focus on balancing ongoing attractive operating margins and profitability with investment in people, technology and brand which we believe are key drivers of long-term growth.
The Board declared a fully franked interim dividend of 6 cents per share, up 20% on 1H21. This reflects the Group’s strong capital position and consistency of earnings underpinned by the continued growth in revenues that are recurring in nature.
Joint CEOs Julian Biggins and Chris Wyke said:
“Today’s record result illustrates the benefit of our diversified business. Our Asset Management credit funds, our Hospitality assets and our Lending business all achieved growth in a rising interest rate environment, and our Corporate Advisory business continues to deliver on its strong transaction pipeline.
We’re especially thrilled to deliver this result while continuing to invest in our capability and platform, including the acquisition of Finsure, Australia’s fastest growing mortgage aggregator. Finsure has exceeded our expectations in 1H22, adding over 280 new brokers and increasing its loan book on platform by 26% to $84 billion.”
Result materials
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1. This forecast is subject to market conditions, deal completion rates and timing, no material regulatory changes and no further significant COVID-19 related disruptions.
