AFG appoints Chief Operating Officer

AFG (ASX: AFG) is expanding its management team with the appointment of its Chief Financial Officer David Bailey to the newly created role of Chief Operating Officer.  This appointment will assist in fast tracking some of the growth opportunities which AFG have been examining, whilst still retaining his skill set in the business.

Mr Bailey has been AFG’s CFO for over 11 years and in this time has gained an exceptional insight into the business operations of the Group.

“The introduction of a COO role to AFG’s management team will further expand our capacity and by moving David into this role we are able to utilise his depth of understanding of the business to focus on future opportunities for growth” said AFG Managing Director Brett McKeon.

“David was an integral part in the recent listing of the company and he will play an important role in the next exciting phase of AFG’s evolution.  Given his background, we recognise that it important for David to maintain a continued involvement in aspects of the business he already contributes to including investor and market relations.  David will also continue to take the lead role in our securitization business.”

“His ability to ensure a smooth transition into the business for a new CFO will be invaluable,” concluded Mr McKeon.

AFG will be conducting a nation-wide search to fill the role of Chief Financial Officer.

Download: AFG Media Release – COO appointment

AFG Mortgage Index – September Quarter 2015

Australian Finance Group (ASX: AFG) Mortgage Index has today reported the total value of home loans processed by AFG brokers for the September 2015 quarter was $14.161B, an increase of nearly 16% on the same period last year.

Brett McKeon, AFG Managing Director outlined the result: “A key driver of the strong result was activity from upgraders – owner occupiers changing properties. In the June quarter 28% of the loans we processed were for homeowners making a move but this lifted to 34% for the September quarter. This activity is consistent with the traditional spring buying season which is now well underway.

“With continued low interest rates and lender policy changes being made around investment and interest only lending, many borrowers are aware the market is changing and are seeking the help of an informed, professional broker.

A shift in requirements for lenders set down by APRA however is having an impact on total flows with investment lending for the quarter down from a 3 year average of 38% of total loans processed, to 33%.

“We have noticed in the latter part of the quarter that the percentage of our business comprised of investment lending stabilized at 32 – 33% so it appears that the last round of changes have now flowed through the system” Mr McKeon said.

With interest rates low and some commentators predicting there may be further falls, fixed home loans were at their lowest level for more than three years at 11.3% of total loans processed for the quarter.

The pricing and policy changes made by the majors saw the non-majors regain 2 % in market share in the investor space over the quarter, a further indication that borrowers are seeking a broker’s help.

Download full report: AFG MORTGAGE INDEX – SEPTEMBER QUARTER 2015