AFG founder Malcolm Watkins calls it quits from board after 32 years

Australian Finance Group co-founder Malcolm Watkins is stepping down from the mortgage wholesaler’s board, ending a near 32-year tenure with the $500 million company.

He retains a 5.4 per cent stake in AFG worth $27m at Wednesday’s share price.

Mr Watkins noted that AFG had grown from a startup into a successful listed company that now accounted for one in every nine residential mortgages written in the country.

“The role mortgage brokers play in delivering genuine competition and choice for Australian consumers is vital, and I am proud of the leadership role myself and AFG has taken in advocating for the industry,” he said.

Mr Watkins founded AFG in 1994 along with Brett McKeon, Kevin Mathews and the late Brad McGougan, playing a leading role in the development of the technology used by its 4300 affiliated mortgage brokers.

The group listed on the Australian Securities Exchange in 2015 after a $140 million float that saw the three surviving founders and the family of Mr McGougan share nearly $80m from a selldown of their shareholdings.

Mr Watkins transitioned to a non-executive director role in 2022.

Mr McKeon is the last of the founders on the AFG board, having stepped down as managing director in 2017 in favour of then chief financial David Bailey, who remains at the company’s helm.

AFG’s chair, former Australian Securities and Investments Commission boss Greg Medcraft, said Mr Watkins “has been fundamental to the success of AFG from day one”.

“During his time as an executive director, Malcolm was responsible for the company’s technology development programs, electronic delivery systems and national marketing operations,” Mr Medcraft said.

AFG on Monday reported record interim net earnings of $22.4m, up 46 per cent, supporting payment of a fully franked interim dividend of 4.7¢ a share.