Judo Capital (JDO) H1 2025 earnings summary

Executive summary

• Statutory net profit after tax rose 70% to $40.9m for 1H25, driven by strong loan book growth, lower credit impairment charges, and prudent cost management.

• Underlying profit before tax increased 33% to $56.7m, reflecting continued scaling, improved operating leverage, and robust asset quality.

• Lending growth annualised at 18%, more than double sector growth, with gross originations reaching a record $2.3bn in December, supported by regional expansion and a relationship-based model.

• Regional expansion continued, with five new locations and 15 new bankers added, now operating in 26 locations nationally.

• Maintained market-leading NPS and high employee engagement.

Financial highlights

• Gross loans and advances grew 9% to $11.6bn, with deposits also up 9% to $9.0bn, term deposits now 66% of funding.

• Net interest margin (NIM) was 2.81%, with lending margins on new business above 450bps and front-book margin at 4.7%.

• Operating expenses rose 4% to $115.4m; cost-to-income ratio (CTI) at 57.4%, up slightly due to NIM pressure.

• Impairment expense fell to $28.8m (0.51% of average GLA), with provision coverage stable at 1.37%.

• CET1 capital ratio at 13.8%, with total capital ratio steady at 17.5%.

Outlook and guidance

• FY25 guidance targets GLA of $12.7bn–$13.0bn, 15% PBT growth, and low- to mid-teens ROE at scale.

• NIM guidance upgraded to the top end of 2.90%–3.00% for 2H25 and 2.80%–2.90% for FY25, with Jun-25 exit NIM at 3%.

• CTI ratio expected to improve in 2H25 as cost growth slows; cost of risk guidance unchanged at 50bps of GLA.

• Lending growth to be primarily funded by deposits, with no plans for additional core equity issuance.

• Continued focus on regional expansion, warehouse lending, and new SME products to drive growth.