MA news
MA Financial delivers 1H24 financial result
Architectural detail of a cream curved building against a blue sky background
Published 22 August 2024
Share article

MA Financial Group Limited (the Group; MA Financial; ASX: MAF) is pleased to present its financial results for the 6 months to 30 June 2024:

Operational highlights

  • Record first half gross fund inflows of $1.1 billion, up 16% on 1H23 (up 33% ex. institutional)
  • Assets under management (AUM) up 13% on 1H23 to $9.7 billion
  • Finsure managed loans up 22% on 1H23 to $121 billion
  • MA Money loan book grew 231% on 1H23 to $1.4 billion ($1.6 billion at Aug 2024). Improved net interest margin (NIM) and expected to hit run rate break-even by October 2024
  • Corporate Advisory revenue up 12% on 1H23 to $22 million
  • Announced two significant institutional initiatives:
    • $1 billion Australian Real Estate Credit vehicle with global growth investor Warburg Pincus
    • $1 billion strategic financing partnership with Humm Group's Flexicommercial unit
  • Earnings headwind from growth investment spending anticipated to slow materially in 2H24, driven largely by MA Money growth. Given strong momentum across the business Underlying EPS is anticipated to be materially higher in 2H24 than 1H24

Financial results

  • Underlying Revenue of $134.5 million up 5% on 1H23. Recurring revenue up 7% on 1H23 and represents 66% of total Underlying Revenue
  • Underlying EBITDA of $38.3 million, down 16% on 1H23. Expenses up 16% largely due to strategic investment spend
  • Underlying earnings per share (EPS) of 11.1 cents, down 27% on 1H23. (Statutory EPS down 22% to 8.4 cents)
  • Fully franked interim dividend of 6 cents per share, payable on 18 September 2024.

Earnings impact of growth focussed investment diminishing as MA Money delivers

MA Financial today announced its first half result for 2024, highlighted by recurring revenue growth, record first half fund inflows, ongoing growth in Finsure and accelerating loan volume growth and NIM expansion for MA Money.

Despite growth in Underlying Revenue by 5% to $134.5 million, Group Underlying EBITDA of $38.3 million was down 16% on 1H23. This reduction reflects the impact of investment in future growth, including scaling the MA Money platform, expanding the Group’s Private Credit business into the United States and investing in the growth of the MA brand.  Strategic investment in growth initiatives represented an $8.6 million drag on EBITDA during the half (equivalent to Underlying EPS of 4 cents) in line with previous expectations. This impact is anticipated to approximately halve in 2H24, as MA Money reaches profitability following strong loan book growth and steady NIM improvement.

1H24 Underlying Net Profit After Tax (NPAT) of $17.8 million and Underlying EPS of 11.1 cents were both down 27% on 1H23. The larger decline in NPAT was largely due to a 37% increase in net interest expense, as the Group refinanced debt maturities with a successful $70 million public note issuance in 1H24.

The Board has declared a fully franked interim dividend of 6 cents per share, in line with 1H23. Since listing at $2.35 per share in 2017, MA Financial will have paid to its shareholders an aggregate of 98 cents per share in fully franked dividends.

Joint CEOs Julian Biggins and Chris Wyke said:

“We are very pleased to announce two major initiatives today including the launch of a new institutional Real Estate Credit vehicle with Warburg Pincus and the establishment of a strategic partnership with Humm Group. These relationships are expected to significantly broaden the reach of MA Financial and continue to build on the strong foundations that our teams have built over the past 15 years.

Underlying EPS in 2H24 is expected to be materially higher than 1H24 as MA Money transitions to a profitable monthly earnings contribution and our established businesses continue to grow. We believe that the Group is in great shape and ready to deliver strong earnings growth into the future.”

To access full 1H24 result materials, visit our Shareholder centre

Personal information collection statement
©2023 MA Asset Management (Hong Kong) Limited, all rights reserved. All facts and figures are current as at 30 June 2024.
This webpage is issued by MA Asset Management (Hong Kong) Limited (BR No.: 72294841 SFC CE No.: BQW293) (MAAM HK). MAAM HK is licenced by the Securities & Futures Commission of Hong Kong (SFC) for Type 1 (dealing in securities) regulated activity. MAAM HK is a wholly owned subsidiary of MA Financial Group Limited (MA Financial). MAAM HK’s business operations involves the marketing of funds issued by MA Financial and/or other collective investment schemes to professional investors only (as defined under the Securities and Futures Ordinance of Hong Kong (Cap. 571) (SFO)) in Hong Kong. As distributor only, MAAM HK does not have any intention to establish any client relationship with any person that intends to subscribe for units in the collective investment schemes it distributes. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before making any investment decision in relation to any financial product referenced on this website (or otherwise) you should consider obtaining professional investment advice that takes into account your personal circumstances and should read the current information memorandum for the any relevant financial product. Any investment in a financial product on this website (or otherwise) is subject to the terms and conditions contained in the relevant information memorandum. Any investment in a financial product on this website, or any document accessible from this website should not be construed as investment advice or relied upon in making an investment decision. Information on this website does not constitute an offer or an invitation in any jurisdiction where, or to any person to whom, it would be unlawful to make such an offer or invitation. Neither MAAM HK nor any member of the MA Financial group guarantees repayment of capital or any particular rate of return from any product. Past performance is not a reliable indicator of future performance. Neither MAAM HK nor any member of the MA Financial Group Limited group gives any representation or warranty as to the currency, reliability, completeness or accuracy of the information contained on this website. All opinions and estimates included on this website are provided as at the website creation date and are subject to change without notice. Neither MAAM HK nor any member of the MA Financial Group Limited group make any representation or warranty, express or implied, that the information and materials contained on this website are up to date, accurate or complete. To the maximum extent permitted by law, neither MAAM HK nor any other person will be liable for any for any loss or claim resulting from or in connection with the website and any information contained herein.