Judo Capital (JDO) H2 2024 earnings summary

Executive summary

• FY24 results met or exceeded guidance, with profit before tax of $104M (statutory) and $110.1M (underlying, up 2% YoY), driven by robust loan book growth and prudent cost management.

• Loan book closed at $10.7bn, up 20% YoY, representing three times system growth and at the top end of guidance.

• NIM finished at 2.94%, above guidance, with moderation due to funding mix shift and TFF refinancing; improvement expected in FY25.

• Regional expansion continued, with four new locations and 21 bankers added in FY24; further expansion planned for FY25.

• Maintains focus on SME lending, with strong regional expansion and new product initiatives.

Financial highlights

• Underlying PBT: $110.1M, up 2% YoY; statutory PBT: $104M.

• Loan book grew by $1.8B YoY to $10.7B; deposits increased 38% YoY to $8.2bn.

• NIM for FY24: 2.94% (down 35bps YoY, but above guidance); 2H NIM: 2.85%.

• CTI stable at 54.6%–55%, at the lower end of guidance.

• Impairment expense: $70.1M (72bps of GLAs); provision coverage increased to 1.39%.

Outlook and guidance

• FY25 guidance: 15% PBT growth, loan book to reach $12.7bn–$13bn, NIM 2.8–2.9% (exit NIM ~3%).

• CTI and cost of risk expected to remain broadly stable; significant operating leverage expected in 2H25.

• Lending growth to be supported by 10 new locations and 20 additional bankers in FY25.

• Targeting low- to mid-teens ROE at scale.

• Continued regional expansion and focus on adjacent SME products and warehouse lending.