Treasure Chest | Sep 22 2021
FNArena's Treasure Chest reports on money making ideas from stockbrokers and other experts. Mortgage business Australian Finance Group is holding plenty of cash, which if used to acquire greater distribution could result in substantial share price upside, Morgans believes.
-Plenty of cash on the Australian Finance Group balance sheet at end-FY21
-Mortgage activity remains elevated despite new lockdowns
-Acquired distribution could translate into a substantial valuation lift
By Greg Peel
Australian Finance Group ((AFG)) operates a mortgage broking business in Australia in two segments: AFG Wholesale and AFG Home Loans. The company is involved in mortgage origination and management of home and commercial loans and distribution of own-branded home loan products. It also offers SME business loans for a wide range of operational requirements.