MA Financial Group Ltd (ASX: MAF) shares are pushing higher on Tuesday after a new release to the market.
The stock is up 3.58% to $7.52 in afternoon trade, while the S&P/ASX 300 Index (ASX: XKO) is down 0.3% to 8,859 points.
That gain comes against a weaker backdrop, with the shares still down around 31% this year.
The bounce follows an extended period of selling pressure.
Here's what was released.
Image source: Getty Images
A mixed quarter, but momentum in key areas
MA Financial's first-quarter update points to a business still growing, but not without some offsets.
Assets under management (AUM) rose 44% year on year to $14.8 billion, driven by inflows and recent acquisitions.
However, total AUM slipped 3% over the quarter. That was largely tied to the removal of the Marion Shopping Centre mandate, which reduced fee revenue.
That aside, AUM held relatively steady.
The company also flagged strong transactional activity within its asset management division, supporting performance fees during the period.
Flows into unlisted funds remained steady, coming from both high-net-worth and retail investors.
Lending and platform growth continues
The lending and technology side of the business is still expanding quickly.
MA Money's loan book increased 138% year on year to $6.2 billion, including a $1 billion increase over the quarter.
Finsure, its mortgage aggregation platform, continues to scale. Managed loans reached $179 billion, up 27% over the year.
Broker numbers also climbed, with more than 4,200 now on the platform.
That growth is translating into higher loan volumes. March alone delivered $11 billion in gross applications.
The group's Middle platform is also processing more than $1 billion in home loan applications each week, pointing to rising usage across the network.
Transaction activity adds another layer
Corporate advisory and capital markets activity remained active through the quarter.
The business worked across a number of deals, including advisory roles and capital raisings tied to resource and financial assets.
Within asset management, several transactions stood out.
The MA Redcape Hotel Fund is progressing acquisitions, while the Marina Fund added the Gold Coast City Marina, expanding its portfolio.
There was also progress within the aged care strategy, with a sale agreement expected to deliver a pre-tax gain and return capital to investors.
What I think about the share price
This looks more like selling easing than a clear turnaround.
There is still a gap between how the business is performing and how the market is pricing it.
Growth across lending and platform assets is clear, and AUM has stepped up over the year. But the quarter also shows how earnings can shift when mandates change, or deal activity slows.
That likely helped drive the sell-off earlier this year.
At current levels, the stock is trading well below where it sat only a few months ago.
If the company can keep scaling its lending book and maintain consistent inflows, earnings should continue to build.
The next step is seeing that come through in a more consistent run of results.
