Earnings

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Mortgage broker Australian Finance Group (ASX: AFG) ended the financial year 2016 with a net profit after tax (NPAT) of $22.6 million, well ahead of its own outlook of $19.7 million.
The company grew its loan book to $120.4 billion, up 12.6 percent on the prior period. 
The company said its profit was up 48 percent compared with $15.3 million from continuing operations in FY2015. It attributed the rise in profit to more residential and commercial settlements, better securitisation margins and increased sales of its self-branded products
The company’s managing director, Brett McKeon, said the result “was underpinned by another strong period of growth for our residential business, with settlements increasing by 8% to $33.84 billion”. 
He also said that the broker market penetration of the Australian mortgage market was at more than 52%, which means a more important role for AFG.
AFG said its final dividend was 5.4 cents per share, a yield of 8.4% per share based on its closing share price at 30 June 2016.
The broker expects good growth in both residential and commercial settlements on the eastern seaboard, particularly in Victoria and Queensland.  
“The company has a residential loan book of $114.7 billion generating ongoing trail commission and AFG’s own securitized loan book has seen improved net interest margin driving solid returns across the financial year. The FY2016 Securities loan book of $1.043 billion is up from $1.020 billion at 30 June 2015.”
“Our Commercial loan book grew very well during the year as more small to medium sized businesses recognized the value a commercial broker can deliver. Commercial settlements grew by 15% year on year to reach $2.76 billion, exceeding the prospectus FY2016 target of $2.45 billion. We expect this trend to continue, predominately in asset lending,” said McKeon.
“Our own AFG Home Loans business also outperformed internal expectations. From a prospectus forecast of $1.30 billion in settlements of white label products, we rounded out the financial year at $1.44 billion. This was driven by the move from a soft launch to full rollout of our Edge product, and the more recent addition of the new Icon home loan. These have been well received by our broker network with the products delivering more choice, competitive pricing and excellent service to our brokers and their customers.”
Earlier this month, AFG entered into an alliance with fintech company Biz2Credit Inc which will give it access to Biz2Credit’s patented analytics and financial services technology to allow small business borrowers access to more options and faster access to capital.
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Mortgage firm AFG posts a net profit of $22.6 million in first year after listing

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Lendlease delivered profit after tax for the half year ended 31 December 2015 of $353.8 million, declaring earnings per stapled security of 60.9 cents, up 12 percent.
Compared to the corresponding period's profit after tax of $315.6 million the December half-year figures are up 12 percent.
Lendlease Group chief executive officer and managing director, Steve McCann said the development pipeline grew to $46.6 billion, with approximately 75 percent represented by urbanisation related projects.
"During the half we had strong sales momentum at residential projects at Victoria Harbour in Melbourne and Elephant &amp; Castle in London and we secured planning approvals for a new urban regeneration project in Chicago,” McCann said.
“In the last six months we have settled over 650 apartments, with non-settlement at less than 1 percent versus our historic average of less than 3 percent. We maintain a disciplined approach to delivery risk and pre sales.
“Our Australian Engineering business has secured a number of key contracts during the half including the Gateway Upgrade North and Kingsford Smith Drive in Brisbane and last week we were announced as preferred on the D9 Level Crossings Removal in Melbourne with our alliance partners... the business is well placed to secure a growing pipeline of infrastructure works.”
For the half year ended 31 December 20151:
Profit after tax of $353.8 million and earnings per stapled security of 60.9 cents, up 12 percent
Interim distribution of 30.0 cents per stapled security, unfranked.
Record pre sold revenue $5.4 billion2 across residential apartments and communities, up 49 percent
$46.6 billion estimated development pipeline end value, up 15 percent
$18.6 billion construction backlog revenue, up 19 percent
$22.0 billion funds under management, up 26 percent
Strong balance sheet with $1.6 billion of cash and undrawn facilities
Return on equity of 13.4 percent
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