MA Financial Group Limited (the Group; MA Financial; ASX: MAF) is pleased to present its financial results for the 12 months to 31 December 2023 (FY23):

Operational highlights

• Record annual gross fund inflows of $1.94 billion, up 27% on FY22
• Assets under management (AUM) up 18% on FY22 to $9.2 billion
• Recurring revenue up 23% on FY22 to $178 million
• Finsure managed loans up 21% on FY22 to $110 billion
• Loan book grew 150% on FY22 to $983 million driven by the accelerating growth of MA Money
• Increase in recurring revenue partially offset lower market related Corporate Advisory, performance fee revenue and planned strategic investment in future growth.

Financial result

• Underlying revenue, down 11% on FY22 to $270 million
• Underlying earnings per share (EPS) down 32% on FY22 to 26.0 cents (Statutory EPS down 36% to 17.8 cents)
• Fully franked final dividend of 14 cents per share, in line with 2H22. The full year dividend of 20 cents per share is in line with FY22, reflecting the Group’s strong capital position, ongoing platform growth and positive medium-term earnings outlook.

Watch this short video to hear from our Joint CEOs

MA Financial today announced its full year result for 2023, highlighted by strong growth in the Group’s recurring revenue streams, record fund inflows, ongoing growth in Finsure and accelerating loan volume growth for MA Money. Significant strategic investment in growth initiatives during the year are showing promising results. This investment represented a 5 cents per share negative earnings impact in FY23. The challenging macro environment resulted in lower transactional activity and reduced the value of some assets, impacting performance fees and corporate advisory revenue.

Although Underlying revenue of $269.9 million was down 11% on FY22, the 23% growth in Group recurring revenue was very significant. In FY23 recurring revenue represented 66% of Underlying revenue versus 48% in FY22, highlighting the significantly improved composition of earnings in the period.

FY23 Underlying Net Profit After Tax of $41.6 million and Underlying EPS of 26.0 cents were both down 32% on FY22. Importantly, this was delivered whilst making a material investment in future growth, a strategy that has served the Group well over time. This strategic expense included investing in the growth of MA Money, expanding the Group's Private Credit business into the United States, opening new distribution channels in Singapore and Japan, plus investment in the growth of the MA brand. A stronger and more recognised brand will assist all areas of our business.  

Asset Management delivered 80% of the Group’s EBITDA (before Corporate costs), with an improved earnings mix as recurring revenue grew by 22% or $27.7 million offset by a $44 million decline in performance fees relative to an elevated contribution in FY22 and lower realised gains on investments.

Asset Management received record gross fund inflows of $1.94 billion in FY23, up 27% on FY22. Investor interest in the Group’s Private Credit funds was very strong and the launch of the MA Marina Fund, represents scalable new alternative asset class for the business. The strong client inflows lifted AUM to $9.2 billion at year end.

The Group’s strategic development of a Residential Lending Marketplace within the Lending & Technology division continued to build momentum. Finsure grew its managed loans by 21% on FY22 to $110 billion, as it added almost 500 net new brokers to its platform during the year. Finsure now services 3,129 brokers and continues to materially grow its market share. December was a record month with $4.5 billion of loan settlements.

Following the launch of its new product set early in the year, MA Money continues to build momentum in the Australian residential mortgage market. MA Money grew its loan book by 244% on FY22 to $829 million with growth in loan settlements accelerating over the year. We are extremely pleased with the growth and prospects for MA Money so soon after its launch as a brand.

Corporate Advisory & Equities (CA&E) EBITDA was down 51%, as difficult macroeconomic conditions and market volatility impacted equity capital markets (ECM) activity and increased execution risks and timing on advisory transactions. Post balance date the transactional environment has shown some signs of improvement allowing several deals to close on which work was largely completed in FY23.

The Board has maintained a fully franked final dividend of 14 cents per share. The full year dividend of 20 cents per share is in line with FY22.

Since listing at $2.35 per share in 2017, MA Financial will have paid to its shareholders an aggregate of 92 cents per share in fully franked dividends.

Joint CEOs Julian Biggins and Chris Wyke said:

“We are very pleased with the strong underlying momentum being experienced across the business that sees the Group very much on track to deliver on its FY26 business targets.

MA Financial now manages in excess of $110 billion in loans alongside our $9.2 billion in assets under management. Finsure’s managed loans and MA Money’s loan book all demonstrated accelerating growth over the year. This positions the business well for strong earnings growth in the years ahead.

Despite the challenging economic backdrop, we continue to see the benefits of our diversified business model, and our intentional strategy to build a business that can deliver for investors through the economic cycle. We continued to strategically invest during FY23 in building several highly scalable business platforms in Australia and offshore that will help us to deliver on our significant growth ambitions over the medium term.”

Additional resources

• Full FY23 result materials - Shareholder Centre
• FY23 media release.