Media Release: COG Financial Services reports resilient H1 FY2025 growth despite challenges
Despite a difficult operating environment, Australia’s largest asset finance services business, COG Financial Services Limited (ASX:COG), has delivered resilient growth in H1 FY2025, with revenue up seven per cent to $251 million. Strong contributions from its network of brokers, particularly in asset finance and novated leasing, helped drive the group’s solid performance. Combined with strategic acquisitions and continued growth in assets under management, COG is well positioned for future expansion.
“COG’s novated leasing and salary packaging segments continue to deliver outstanding results, while asset finance aggregation also performed strongly, with Net Assets Financed totaling $4.2 billion in the first half,” says Mark Rayson, Head of COG Aggregation. “This impressive figure was achieved despite the reduction of the instant asset write-off tax incentive, prevailing economic conditions and softer activity, particularly in the consumer lending sector.
"In a challenging market, we’re proud to continue driving growth while providing our brokers with the services, product options, and support they need to succeed. By equipping them with the right resources and opportunities, we are sustaining our momentum and reinforcing our reputation as a reliable industry partner. Despite a decrease in average deal size, brokers have increased the volume of loans to the COG lender panel by three percent, leading to a six percent rise in the number of transactions processed."
Damian Mantini, Head of Strategic Partnerships at Platform Finance, a wholly owned subsidiary of COG offering specialist support and processing services for brokers outside of asset finance, says: ‘With over 8,500 accredited brokers in our network, engagement remains high, and we processed more than 6,900 deals in the first half alone – that’s one every 10 minutes. Our focus on key partnerships and innovative solutions is fueling this growth, enabling brokers to expand their offerings and better serve their clients. As the market evolves, we’re committed to staying ahead of the curve and continuing to deliver value to our network.”
Other notable Platform Finance highlights include:
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Four per cent increase in total settlements through our lender panel
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Despite inflation, average deal sizes decreased by 1.7 per cent, suggesting that clients are increasingly seeking more economical options
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A new lead every seven minutes
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Four per cent rise in income paid to brokers
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75 per cent surge in brokers onboarded – with 679 new brokers in H1 FY2025 compared to 387 in the previous corresponding period
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Three per cent growth in commercial loans and five per cent growth in personal loans
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Ten per cent increase in lenders used
Strategic growth and strong financial position
Across the broader COG business, assets under finance grew 13 per cent to $967 million compared to the same period in FY24, while NPATA grew three per cent, reflecting the reduced contribution from COG’s discontinued TL Commercial operating lease business. Additionally, the number of lender accreditations across the group during the half year reached a record 2,983, marking the highest number ever achieved. “This growth in accreditations underscores our continued commitment to expanding our network and strengthening relationships with key partners in the industry,” says Rayson.
COG also made strategic acquisitions during the year, including the salary packaging business Community Salary Packaging through its Paywise Pty Ltd subsidiary and the mortgage finance broking business Cap Coast Home Loans (CCHL) through DLV (Qld) Pty Ltd.
“Such acquisitions are central to our growth strategy,” adds Rayson. “They enhance our service offering, strengthen our market position, and enable us to provide greater value to our brokers and clients as we scale our business. With a strong balance sheet and unrestricted cash of $83.7 million as of December 31, 2024, we are well-positioned to drive further earnings growth, both organically and by pursuing targeted acquisitions. This includes continuing our heavy investment in cyber security and our COG Connect broker platform. Additionally, we are focused on expanding our retail fixed income product and maintaining effective capital management to support future growth and investments.”