Judo Capital (JDO) investor relations material

Executive summary

• Delivered strong financial performance in FY26, with pre-provision profit up 42%, PBT up 34% to $168.1m, and ROE improving by 110bps to 6.4%, supported by robust lending and deposit growth, improved NIM, and significant operating leverage despite higher impairment provisions.

• Lending book grew 18% to $14.7bn, deposits increased 24% to $12.2bn, now 71% of total funding, and portfolio remains diversified with a focus on SME lending.

• Strategic investments in technology, broker relationships, and product innovation drove above-system growth and sector-leading customer satisfaction, with the Broker Black Belt program contributing to strong GLA growth and asset quality.

• Maintained high confidence in the business model, focusing on sustainable ROE in the low to mid-teens and continued execution of strategic priorities.

Financial highlights

• Pre-provision profit rose 42% year-over-year to AUD 286 million; PBT up 34% to $168.1m; NPAT up 29% to $111.1m; EPS up 29% to 9.9cps; ROE up 110bps to 6.4%.

• NIM improved by 20bps to 3.13% for FY26, with a second-half print of 3.23%.

• Cost-to-income ratio improved from 52.4% to 45.3%, the lowest in the sector, down 710bps year-over-year.

• Impairment expense increased to $117.7m (88bps of average GLA), driven by specific provisions on a few exposures.

• CET1 ratio remained strong at 12.4%, above the management operating range.

Outlook and guidance

• FY27 guidance: NIM expected to remain broadly stable at ~3.13%; cost-to-income ratio to continue improving; cost of risk to be broadly consistent with FY26.

• PBT guidance for FY27 is $210–$220m (25–31% growth), with ROE expected to reach circa 8% and a long-term goal of low to mid-teens at scale.

• Continued focus on disciplined above-system loan growth, margin management, productivity, and capital efficiency.

• Economic growth expected to moderate in FY27 amid higher rates and geopolitical risks, but SME credit demand remains healthy.