MA Financial AUM surges 44% in 1H26

MA Financial Group posted a positive half year to 30 June 2026, with assets under management (AUM) increasing by 44% to $15.5 billion, attributed to significant activity levels in core real estate.

The strong performance led to an increase of underlying earnings per share to 20.3 cents per share on the previously corresponding period when excluding large net asset realisations.

Including the large net asset realisations of $15.5 million in net gains, the underlying earnings per share was up by 96%, MA Financial said.

AUM revenue was up 32% to $121.3 million, driven by improved transaction and performance fees, while a record high 72% of underlying revenue (excluding large notable items) came from sources that were recurring in nature, the group noted.

The expansion of its asset management business into New Zealand has also started to deliver with New Zealand AUM surpassing NZ$100 million ($83m) post balance date.

Meanwhile, underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) was $68.2 million, up 43% on 1H25, but expenses also edged higher by 27%, reflecting the addition of IP Generation last year.

Additionally, MA Financial declared a fully franked interim dividend increase of 33% to 8 cents per share.

The company also believes FY26's earnings will be materially higher than FY25, with seasonal earnings skewed towards the current half-year.

Across the six months to December end, it is expecting approximately $500 million of real estate to be exchanged or progressed through advanced due diligence, while a further $500 million of hospitality assets are due to settle in the period from its Redcape Hospitality business.

Fund flow momentum continues to build with an additional $449 million of gross fund inflows (net inflows $166 million) achieved in the first six weeks post June 30.

Speaking to Financial Standard, joint chief executive Chris Wyke explained the delay of transactions is a result of the cadence of transaction in corporate advisory generally does not "fall neatly" in a half-year period.

"It just so happened that announcements and final deal terms were reached a handful of weeks after the balance date," he said.

"I don't think it's necessarily reflective of any specific market conditions. In fact, market conditions for deal doing are becoming more stable and certain in what has been a disruptive global environment over the last year or so.

"We're starting to see transactions firm up, but the delay over the period is the natural cadence of deal doing timetables."

Although corporate advisory and equity fees were down 5% on 1H25 due to "lengthened" deal execution timelines pushing a number of transactions into the second half. MA Financial said since June 30, the momentum has been strong, with $25 million anticipated of fees on already announced transactions.

Further, residential mortgages also provided "strong growth" for the business, with an upgraded guidance now available for MA Money, anticipated to deliver around $25-$30 million in net profit after tax (NPAT) in FY26, while the mortgage aggregation platform Finsure grew managed loans to $193 billion.

Lending and technology revenue grew 56% to $67.5 million, reflecting accelerated growth in MA Money's and Finsure's loan books.

Wyke said the growth in the residential market came a little bit as a "surprise", pointing to several headwinds against the market but remained satisfied with how the performance turned out.

The business benefitted from its scale and highly diversified revenue streams to deliver underlying earnings per share growth of 96% on 1H25, or 45% growth when allowing for the exclusion of large notable items that related to asset sales in the period.

Joint chief executive Julian Biggins said the overall results were aligned with expectations and reflected the perks of being a diversified business.

"The contributors [for the business] have been stronger. Some had some headwinds, but overall, the business delivered a great result, and that's the strength of the diversified business," he said.

He also shed some lights on the new three-year strategic targets for the firm.

"[The new three-year strategy targets] were a refresh of the targets for another three years on the same basis," Biggins explained.

"We like to set a medium or a long-term view around how to build the business, and we like to talk in that language to the market and set our goals... It shows that there is still a significant growth opportunity within the business divisions that we have and if you roll that forward, there will also be significant upside for all stakeholders."