Yes what you have raised is correct. The binge that the big banks have fostered on the market to win market share, with cash backs/discounts, has lead to a major decrease in loans written by our brokers. We will be relying on the historical long term "book" of loans, written over the last 10-15 years to soften the blow for FY22-23 profits. Broker forecasts have been saying for quite some time that the eps will drop significantly from FY21-22 to FY22-23, as detailed in the table below.
AFG Earnings & Dividends Forecast (cents per share) 1 Curr 2023 2024 2025 2 EPS 23.1 16.4 18.3 3 DPS 16.6 12.3 12.2 11.9
This is why the share price has dropped from around $2.40 - $2.60 to $1.50 - $1.80 over the last 18 months. However prospective investors should not be too alarmed. The forecast yield at current prices is still around 7% fully franked, with growth to return in coming years. The share price will probably move lower as this information and the coming FY23 results are digested - a good time to consider share purchases if you are looking for good yield and some future growth.
All in my own opinion, and DYOR.
Cheers Westwind
Ann: AFG June 2023 Qtr Index, page-7
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Last
$1.64 |
Change
0.065(4.14%) |
Mkt cap ! $442.7M | |||
| Open | High | Low | Value | Volume |
| $1.57 | $1.64 | $1.57 | $370.5K | 228.3K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 616 | $1.57 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.64 | 8076 | 4 |
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| Last trade - 16.10pm 07/11/2024 (20 minute delay) ? |
| AFG (ASX) Chart |