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Edited Transcript of AFG.AX earnings conference call or presentation 23-Aug-19 12:00am GMT

Full Year 2019 Australian Finance Group Ltd Earnings Call

Sep 9, 2019 (Thomson StreetEvents) -- Edited Transcript of Australian Finance Group Ltd earnings conference call or presentation Friday, August 23, 2019 at 12:00:00am GMT

TEXT version of Transcript

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Corporate Participants

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* Ben Jenkins

Australian Finance Group Limited - CFO

* David Bailey

Australian Finance Group Limited - CEO

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Conference Call Participants

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* Azib Khan

Morgans Financial Limited, Research Division - Senior Banks Analyst

* Oliver Stevens

Hartleys Research - Industrial Analyst

* Tim Lawson

Macquarie Research - Division Director of Australian Insurance and Diversified Financial Market Research

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Presentation

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Operator [1]

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Ladies and gentlemen, thank you for standing by. Welcome to the investor briefing for AFG 2019 full year results announcement. (Operator Instructions) Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your first speaker today, Mr. David Bailey, CEO. Thank you. Please go ahead.

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David Bailey, Australian Finance Group Limited - CEO [2]

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Thank you. Thank you very much.

With me is Ben Jenkins, our CFO. So what I'll do today is actually go through the presentation and then leave plenty of time for questions, which generally are generated off the back of the presentation.

So 2019 results. I actually was pleased to announce an underlying NPAT of $28.6 million, which is up 2% on the prior year. The reported return on equity has remained constant at 33%. The results have been underpinned by a couple of factors. FY residential settlements of $31.3 billion, showing a residential trail book up by 7% to $147.4 billion. Ordinary dividends per share are up to $0.059 per share for the final, driving a terrific outcome for shareholders.

Most importantly and one of the major highlights from my perspective has been the growth in the AFG Securities business, which demonstrated settlements being up by 108% to $1.06 billion, which now takes our loan book under AFG Securities to $2.06 billion, which is an increase of 50%. Of course, one of the other highlights of the financial year was our merger with Connective, which we announced last week, and we are very, very excited about that proposition moving forward.

Turning the page, we can see that total revenue has increased by 7% to $660 million. That's being driven by predominantly a growth in the AFG Securities business, together with longer loan lives demonstrated across the marketplace. Underlying profit increased by 2%, which I believe is a strong result in what has been a challenging market in terms of the housing market. We've continued to invest in growing the AFG Securities book during the financial year, and that's going to be providing a strong platform for future earnings. We have continued to demonstrate strong cash flow generation, which is supporting the dividend payout ratio evidenced in today's results.

Well, just turn the page, I'll talk about our strategy. And the strategy has remained consistent over the last couple of years, and that's really having the bedrock of the technology, customer and choice and the broker distribution network and then moving up in terms of asset vertical -- lending verticals across the industry. And it is further emphasized with -- once you overlay the Connective transaction. So it's all about future-proofing manufacturing, continuing to lock in long-term higher manufacturing margin and as well as ongoing product diversification.

We're ongoing -- looking at the transforming aggregation. We have a strong core distribution network which provides choice and competition, and we're focused on growing market share for brokers. Brokers and customer needs are evolving. We recognize that, and we have an ongoing focus on technology to deliver value for both. We continue to wish to be an aggregator of choice for brokers, leading in compliance, governance and naturally independent -- we're very proud of our independence.

The strategic and market outlook. We believe we are well positioned for future growth opportunities. We continue to have a capital-light strong balance sheet with no debt. We have an established distribution network. Choice and competition to drive good customer outcomes is part of our mantra. We generate strong cash flow. Ongoing investment in technology will drive -- help drive our earnings diversification strategy.

We overlay that with the current market outlook. The dynamics are continuing to be supportive of the broker core position. The product market -- well, the market for mortgages continues to be complex. RBA has implemented 2 interest rate decreases and APRA -- recent change in the approvals in the lowering of the serviceability floor should allow us -- has been able to demonstrate an increased level of engagement with brokers in more recent times.

It's been a challenging market, and settlements are -- were low, 11% lower than financial year '18. So the loan growth -- book growth remains solid, which really demonstrates the natural hedge which the loan book is for our business. When settlements are likely softer, loan lives generally are pushed out, which helps underpin the financial results.

More importantly, on the back of that, the Home Loans settlements were 2% lower. That's significantly better than the broader market, which was 11%. And more importantly, the AFG Home Loans book continues to grow, and it's up by 25%. As predicted or highlighted in previous presentations, we are seeing an ongoing shift from AFG Home Loans towards AFG Securities. So the settlements achieved of being up 108% is very, very pleasing for us.

Commercial loan book has risen by 6% to $8 billion. And we have achieved strong growth in AFG Business settlements, which is up -- has now achieved $130 million. And in addition, Thinktank, which is our 30 -- we have a 30% interest, our white label had settlements up 93% to $89 million.

AFG Home Loans, you can see there on the next page, demonstrated strong loan book growth. There is a change in mix towards AFG's funded products. So you can see our funded products there are Retro and Link in the separate box there. What this actually means is that over time, we're actually building an ongoing loan book which will drive future income and future growth for the business. It does change the impact on -- it does have an impact on the P&L, which Ben will touch on. In terms of white label income, it's recognized as settlement, whilst -- while RMBS or our own funded lines generate income over the life of the loan. So the investment in the AFG Securities program does provide us some future earning platform for growth.

The next page really talks about AFG Securities, which really is talking about us providing another product and more choice to the consumers in the marketplace. Our Link product, which is our near-prime product launched in 2018, we achieved lodgments of $345 million. And off the back of that, obviously there's a pipeline there of $345 million. We've achieved $171 million in FY '19, which is up from $69 million lodged and $23 million in FY '18 when, you remember, it was an early -- it was a more recent addition to our stable. So the securities settlements are up 108%, and that is probably the big differentiator in our results for the financial year.

We continue to be focused on book growth during the year. So our net interest margin was lower in FY '19, and that was also impacted by sustained adverse BBSW pricing. We are seeing a turnaround in that over the last couple of months, and that will position us well for the forthcoming quarter.

Most importantly, if we talk about AFG Securities from my perspective, the growth has been achieved whilst maintaining the quality of the book. So over half of the book has an LVR of less than 70%. And the highlight for me is talking -- when I look at the results, is talking about those lines in arrears. We only have 13 lines in arrears across the $2 billion book, which is a testament to the credit and underwriting perspective, but also our position in the market in terms of how we perceive the market and how we can use our information and data to identify the right lending opportunities for us.

Moving across, I'm going to talk to -- briefly to AFG Commercial powered by Thinktank. We've been extremely pleased with our relationship with Thinktank. We think both businesses have benefited from the relationship and that 30% interest -- investment in Thinktank. Importantly, we're seeing growth in the settlement numbers to $89 million for the year. The number of brokers lodging AFG Commercial deals has grown from 50 in FY '18 to 186 in FY '19. So you can see, there's a high level of engagement across our broker force who are all looking to experience a different type of more commercial mortgage product. Our equity interest has delivered earnings of around about $1.5 million in FY '19. So it continues to perform well from our perspective and also is able to increase its footprint across a number of other aggregators in the marketplace.

AFG Business. We did talk about the launch of AFG Business. It has been in pilot mode. We are now in full operation mode. We achieved in FY '19 $130 million. We have 22 lenders on that panel. So what we are doing is bringing choice to -- and competition to the SME market in a similar way that brokers have brought choice and competition to the residential market. And that's a market -- the SME market is a market which is prying out the competition and choice and access to capital. So the expanding -- the panel delivered that further choice and a broader product offering. We continue to invest in Commercial sales and we have a number of brokers who have increased the use of the platform from 18 in FY '18 to 198 in FY '19. At the back half of the year, we launched -- we had our asset finance product. We have 5 lenders on that platform. And we're seeing some good early engagement with that platform.

Our technology is -- if you go back to our original strategy page, our technology is one of the bedrock for our overall strategy. And so we are continuing to update our core broker platform with the latest technology capabilities for brokers' growth, efficiency and customer management. It's supporting the execution of the business strategy to attract and retain brokers and grow future product capabilities.

The next few pages talk about the Connective transaction now. These have taken from the presentation we made last week. I wasn't proposing to go into too much detail in those other than to say we continue to be excited about the proposition. And I think the financial results of the underpinning key performance indicators of the AFG business, particularly around AFG Business as well as our AFG Securities business, helps reinstate why the Connective transaction is also exciting for us moving forward.

I'd like to pass across to Ben now, who will talk a little bit about some of the financial information.

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Ben Jenkins, Australian Finance Group Limited - CFO [3]

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Thank you, David, and good morning, everyone.

Just moving across now to Slide 16 with our summary cash flow statement there. Net cash flows from operating activities in FY '19 were around about $28 million, in line with just the underlying profits, so showing a continued good conversion of underlying profit into cash flows. The FY '18 number was stronger. As we called out last year, I think that's positively impacted by working capital movement driven by timing grant, commission payments. But as you can see in FY '19, we continued to deliver good cash flow from the business and we maintain a capital-light business model, which will allow us to provide ongoing investment and generate future growth into the business moving forward. The other thing that the strong cash flows of the business has been able to do is to deliver increased dividend each year for the last 3 years despite some pretty strong headwinds in the industry, as can be seen in the chart on that page, at the bottom of Page 16.

Moving over to the summary balance sheet. AFG continues to maintain a strong debt-free balance sheet, which provides a good platform for us to grow in the future, both organically or through inorganic opportunities like the Connective transaction.

The other piece in place around the balance sheet, as you can see, the increase in the AFG Securities residential mortgages. It continues to grow. And as Dave mentioned, it's now up to just over $2 billion. This will continue to drive growth in future years as we generate an interest margin off that loan book as opposed to the white label program which recognizes the income upfront. Cash is obviously collected over the future years.

The net NPV of the trail book net asset continues to grow though, which is pleasing. It's now up to $93 million before tax and it's -- we're looking also to continue to provide strong cash flows and base for future growth, which is pleasing.

Moving over to Slide 18. We included the reconciliation here showing the impact of our trail book accounting in the year and a reconciliation between underlying profit after tax and reported profit after tax and the contribution of that white label uplift -- trail book uplift I should say. You can see there in the table the key assumptions around the trail book accounting, but loan lives have extended again off the back of tightening credit conditions in the market and staying on the book for slightly longer. This has driven some of the uplift in the trail book net asset over the last 12 months.

Turning to Slide 19 and other income. Within other income, service fees and other income has increased around 7% in FY '19. It's largely driven by an increase in the provision of services to brokers, including compliance services, marketing and other items that we provide.

The FY '16 and '17 numbers that you can see there, which are quite high, included Volume Bonus Income of around $4 million and $3 million, respectively, which volume bonuses subsequent to the ASIC review has been removed from the industry. So this means that the majority of other income now is going to be based on higher-quality earnings relating to monthly fees and provides a strong stable base for future periods.

Moving now to July 2019 trading. Total residential settlements -- sorry, lodgements are up 6% on July 2019 with increases in each state across the nation, which is the first time in a number of periods where we have seen the increase in lodgements across the nation, which is really pleasing. And AFG Securities, in particular, was up 49% year-on-year.

I'll now hand back to David to wrap up. David?

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David Bailey, Australian Finance Group Limited - CEO [4]

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Thanks, Ben.

Look, from my perspective, I think the FY '19 result does demonstrate the robust nature of the business, which the market has been challenging over the last 12 months and there has been a number of headwinds. We do think our investment in growing the AFG Securities book will hold us in good stead and provide a strong platform for future earnings. Our AFG Business platform is gaining traction. It is a slow burn. It is something which is not a 12-month, 24-month real driver of financial performance, but it is something which we're starting to see a real -- some real cut-through on. Our investment in Thinktank has been validated and continues to validate in terms of positioning us for growth and strong relationships with a number of aggregators. Our ongoing investment in technology to increase the value proposition to brokers and provide good customer outcomes to facilitate efficient growth of key strategic initiatives is underpinning our overall strategy. We are seeing -- as Ben indicated, we are seeing some -- the changes in the market have been leading to increased lending activity, but importantly, the complexity remains. So we think brokers continue to be the best option for consumers to sort through and identify the most appropriate loan for them moving forward. And the cash flow generation abilities of the business really positions us for future growth. AFG Securities is one aspect. We are very excited and anticipate that, hopefully, the merger of Connective allows us to take that next strategic step into our business. And in summary, I think you will see that the key was the trading result is up on last year, and marginally, that the key performance indicators which position us for growth to take advantage of an increase in level of activity within the housing market should push us into a strong and stable year ahead.

So with that, I might just conclude and open up to questions.

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Questions and Answers

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Operator [1]

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(Operator Instructions) Your first question comes from the line of Tim Lawson from Macquarie.

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Tim Lawson, Macquarie Research - Division Director of Australian Insurance and Diversified Financial Market Research [2]

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Just specifically around the July trading on the AFG securitization, you're calling out plus -- I think it's 49%. Just can you talk through that in the context from looking back into that model, it's -- that book was about 11% of -- so that was about 11% of volumes -- lodgement volumes last July. Now it's been a bit lower since the third-party funding rates have changed. Can you just talk about the size of that growth? And what's in the context of 11% in the PCP and the third-party funding rating changes?

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David Bailey, Australian Finance Group Limited - CEO [3]

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Yes. So I think it's something that has been a strategy we've looked at for a while now to try and change the mix of around about your Home Loans product away from the white label to a degree into AFG Securities, which provides us (inaudible) over a period of time. So there's been a real focus on improving that product and adding parts to it to make it more attractive to brokers and consumers. So overall, the percentage of AFG Home Loans as a percentage of revenue hasn't changed significantly, but the mix has moved more towards AFG Securities.

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Tim Lawson, Macquarie Research - Division Director of Australian Insurance and Diversified Financial Market Research [4]

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So I mean, it's a large percentage. Was it a small amount of that 11% of (inaudible)? So is it a bit flattering? Or is it -- I mean how much risk are you looking at?

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David Bailey, Australian Finance Group Limited - CEO [5]

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Tim, I think one of the key parts of that July result is that, as Ben indicated, the number achieved from AFG Securities in July '18 was not as significant as it was in this 2019, so that 49% is coming off a lower base for one better term. The AFG Home Loans numbers in total were down, as you can see, for July. And in my view, that was more around timing with some of our white label providers. So towards the back half of July, we had the Edge product coming with a fixed rate product, which was matching the 2.99% that Westpac were providing, and Adelaide Bank came in and offered something similar. So it's always a month of 2 halves. So I'm not concerned, I'm not overly stressed about July's AFG Home Loans number.

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Tim Lawson, Macquarie Research - Division Director of Australian Insurance and Diversified Financial Market Research [6]

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Yes, okay. And just to confirm, the suite of volume bonuses, are they fully cycled now? Is there anything that -- there's none of that anymore going forward?

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David Bailey, Australian Finance Group Limited - CEO [7]

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No, there's no volume bonuses. And I think that's an important call out in terms of the results, Tim. If you look at how that business has -- how that other income line has evolved over a 5- year period, volume bonuses faced a couple of years ago, the quality of the earnings...

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Tim Lawson, Macquarie Research - Division Director of Australian Insurance and Diversified Financial Market Research [8]

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Yes. There's nothing in 2019 for that also?

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David Bailey, Australian Finance Group Limited - CEO [9]

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Yes, that's right.

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Operator [10]

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Next question comes from the line of Azib Khan from Morgans Financial.

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Azib Khan, Morgans Financial Limited, Research Division - Senior Banks Analyst [11]

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David and Ben, a few questions from me. I might just do them one at a time to keep it easier. So firstly, on the margin, it looks like you mentioned second half margin to be about 121 basis points. And whilst that looks like a -- that's a good improvement from 113 in the first half, if I just focus on that 121 and if I adjust that for your trail and upfront commissions that you pay out, then net of those commissions, I'm making them in the second half to be closer to about 90 basis points. So that's still a pretty skinny margin. And that makes me think that the pricing on your AFG Securities products is at the pointy end of the market. Is that the case? And is it -- to what extent is sharp pricing driving the strong growth that's coming through AFG Securities?

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Ben Jenkins, Australian Finance Group Limited - CFO [12]

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Yes, the BBSW, I guess, recovery was only late in the half. And we, as I said, we've made a conscious decision to invest in that book and grow volumes there. So we've absorbed a big portion of that cash to be able to spread over the year. I guess the other thing to point out is the growth is driven by a couple of things. One, you need to be reasonably sharp on price, and the other is around credit consistency and turnaround times and speed of delivery back to brokers and consumers. So it's a combination of those 3 things driving the growth.

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David Bailey, Australian Finance Group Limited - CEO [13]

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I think what we've found over the last 6 to 12 months with AFG Securities is that, and it's something that's been quite prevalent across the marketplace, is that those organizations which can make a consistent credit decision and turnaround the product in a reasonable time frame are the ones that are getting the flow. And you can see that through the rise of not necessarily the nonmajors in terms of flow, it included -- a bit more nimble to adjust some of those regulatory changes and levels of interpretations around responsible lending. And what we've seen is that we've been a recipient of that. And what then happens as the broker tries the product, likes the product, likes the experience and will recommend that product again. So yes, you do need to be at the shaper end. Suffice to say we are comfortable with our NIM moving forward, but it was a strategic decision rather than upright and generate more margin. At the time, the view was to grow the book.

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Azib Khan, Morgans Financial Limited, Research Division - Senior Banks Analyst [14]

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So just on that, David, I mean, how are AFGS' turnaround times, how do they compare with the major banks at the moment? Because a lot of the major banks, through their pop channels, they're claiming to be at -- whether turnaround on standard loans in about 1 day and through the broker channel in about 2 days. How does that compare with AFGS?

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David Bailey, Australian Finance Group Limited - CEO [15]

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We'd be in the top quartile, Azib. Yes, something like that.

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Azib Khan, Morgans Financial Limited, Research Division - Senior Banks Analyst [16]

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Yes. So just back on the NIM. So I appreciate that the benefit from the reduction in the swap spread came through late in the half. And bearing in mind that you're keeping your pricing sharp there, you still have margin tailwinds of great pricing that you conducted, I think, on 2 occasions in the half. And you've introduced the higher margin Link product, which is a tailwind for your margins. So bearing that in mind, the improvement in the NIM still is a bit lower than what I thought would be the case. So you had 8 bps in NIM improvement from the first half to the second half. I thought it would have been a bit more than maybe some of those benefits are coming through late in the second half. Can you give us an indication of where your exit margin was in the second half?

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Ben Jenkins, Australian Finance Group Limited - CFO [17]

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That's not something that we publicly disclose. It's -- that's not something we can call out. Suffice to say that the biggest of the benefits did flow through quite late in the half.

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Azib Khan, Morgans Financial Limited, Research Division - Senior Banks Analyst [18]

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Yes. Okay. So the AFG Icon product, that was targeting a more affluent customer base. Now that, that product has been discontinued, are you going to look to develop your own securitized product to target that segment of the market? Or do you think you can just do without that product?

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David Bailey, Australian Finance Group Limited - CEO [19]

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We will constantly test the market and touch the market as to where some of that flow can go. At the time of Icon withdrawing from the marketplace, it wasn't driving a large volume through to the AFG Home Loans branded franchise. The -- what we've seen is that we have had a number of -- in terms of the Advantedge book and Adelaide Bank provide a higher level of engagement around that type of product and -- but it's something we are constantly looking at, Azib.

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Azib Khan, Morgans Financial Limited, Research Division - Senior Banks Analyst [20]

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Okay. And in terms of AFG Business, is that -- so you're generating decent growth there now in terms of settlements. Is that now close to breaking even?

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Ben Jenkins, Australian Finance Group Limited - CFO [21]

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It's getting closer, let's say. Yes, if it maintains its current trajectory, then it should be at that point -- at some point towards the end of this year, I would have thought.

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Operator [22]

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Our next question comes from the line of Oliver Stevens from Hartleys.

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Oliver Stevens, Hartleys Research - Industrial Analyst [23]

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Just a question on Thinktank. Obviously, it's going pretty well. Just wondering how you think about the investment there, particularly when you consider other listed ones like Prospa, sort of $600 million, $700 million market cap. I know the product is slightly different, but any thoughts on that?

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David Bailey, Australian Finance Group Limited - CEO [24]

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(inaudible) [but Thinktank broad], but suffice to say it is a vastly, vastly different proposition to a Prospa and a Prospa-type business. It is a commercial mortgage product, so it's fully secured. Its capability is growing. It's providing a different type of option for a small business enterprise. Suffice to say we are quietly confident that, that business will grow with our systems. And in terms of technology plays, we think the AFG Business platform can help grow that in a reasonable clip, but yes, I think it's probably a little premature to start comparing it to a Prospa market cap at this stage, Oliver.

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Operator [25]

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(Operator Instructions) We have a follow-up questions from Mr. Tim Lawson from Macquarie.

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Tim Lawson, Macquarie Research - Division Director of Australian Insurance and Diversified Financial Market Research [26]

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Just in terms of the -- this -- to the increase in volumes that we're seeing in July, so this shift a bit back to sort of refi, the rights and procedure conversion or speed and amount of conversion you're getting from lodgement to settlement, is that changing at all?

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David Bailey, Australian Finance Group Limited - CEO [27]

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I think as we've touched on the turnaround times, 1 day and 2 days, it depends on how you define those, whether it's -- look, I think what we're seeing is that broker's more comfortable with how a loan will be assessed and reviewed in respective lenders. And that in itself provides a better quality of level of application coming in because they know the information that's required. I think the other piece is that they've actually just had time to get used to it. And so the customers are more well prepared for, I don't want to use the word inquisition, but the review from a credit department that -- and some of the questions that are coming out. So our conversion rate is improving. We're seeing slight improvement in those conversion rates, but I think it's still got to wash through the system still.

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Ben Jenkins, Australian Finance Group Limited - CFO [28]

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It's probably also worth pointing out to know the July lodgments take 3 to 4 months to flow through the settlements in the books. So if you reverse back 12 months, the lodgement period in around April to June '18 was quite strong. And that said, the settlement is for July to September FY '19. So the uptick in lodgments in July will take a little while to flow through the system.

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Tim Lawson, Macquarie Research - Division Director of Australian Insurance and Diversified Financial Market Research [29]

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Yes. And then just on a couple of your assumptions in your trail book accounting, you just moved slightly longer at the top end of average loan life. Is that just in terms of people taking a little bit longer to pay a loan, as simple as that? Or is there something else going on in terms of mix there?

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David Bailey, Australian Finance Group Limited - CEO [30]

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So that's really driven by loans staying on the books longer, so not refinancing or discharging out. It was probably driven as much as anything else in the first half of the year, whether it's being tied to credit conditions and harder for people to move and potentially with property prices coming down, the East Coast renaissance to mobile refinance as well. So there has been a small shift in the average loan life there.

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Tim Lawson, Macquarie Research - Division Director of Australian Insurance and Diversified Financial Market Research [31]

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Yes. And then on the percentage paid to members, just digging up that 93.4 to 93.8 over the year, just any sort of comments you'd make on front book versus back book pricing and current trends?

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Ben Jenkins, Australian Finance Group Limited - CFO [32]

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Yes, that's more driven by our payout ratio to broker. And that's the competitive pressures in the market, which we've talked about for a while. It's something that we're conscious of and actively trying to manage.

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Operator [33]

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Our follow-up question is from the line of Azib Khan from Morgans Financial.

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Azib Khan, Morgans Financial Limited, Research Division - Senior Banks Analyst [34]

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Just one more for me. So various data sources are showing an uptick in 90-day arrears at the system-level and across -- in -- and by state. And particularly, WA looks like it continues to trend up now. At the national level and a lot of the states that those arrears percentages in absolute terms remain -- will remain less than 1%, sometimes considerably lower than 1% depending on the state. But I would just be interested to know, it didn't seem in that you are one of the largest aggregators in the country. What are you seeing in terms of the stress in mortgage, the trends in mortgage stress? I've known your book, the AFG Securities, before it's pretty pristine. I mean you've talked about, I think, only a handful of loans being in arrears, going 13 loans I think you said are greater than 30 days. But more broadly, what sort of trends are you seeing in terms of mortgage stress?

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David Bailey, Australian Finance Group Limited - CEO [35]

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We're actually not picking up a lot of the noise. We obviously got those usual suspects in West Australia in particular and some of the places in North of Queensland. So we're not actually picking up either through our -- through the data that we receive, but the data we receive is really driven off trail payments. And so trail payments, say if a loan goes into arrears, over 60 days in arrears, so we're not actually noticing any changes or drips in any of that. And anecdotally, we're not getting feedback from brokers around the number of customers that are in some sort of duress. So yes.

Maybe the shortest and easiest way of saying is that whilst we are aware that some organizations that you've referred to are indicating some levels of stress, we're not really seeing that level at this point in time. I'm not saying it doesn't exist, but the areas that we're aware of are the corridors of Perth in some of the newer mortgage build spaces and obviously down in (inaudible) ways, et cetera, et cetera. But in Queensland, it's the usual suspects up there in terms of mining-related and/or tourism-related regions.

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Operator [36]

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(Operator Instructions) We appear to have no more questions on the line. I would like to hand the call back to the management for closing.

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David Bailey, Australian Finance Group Limited - CEO [37]

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Thank you very much. Appreciate everyone joining today. We are on the road in the next couple of weeks and, hopefully, to be able to catch up with a lot of you then. But appreciate your time. Thank you.

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Operator [38]

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Ladies and gentlemen, that does conclude the conference for today. Thank you for your participation. You may now disconnect your lines.