Judo Capital (JDO) H2 2025 earnings summary

Executive summary

• Achieved 16% lending growth to $12.5bn, nearly double sector growth, and 24% increase in statutory NPAT to $86.4m year-over-year, driven by regional expansion, customer-led value proposition, and technology replatforming.

• Transitioned from building and scaling to optimizing the bank, focusing on operating leverage, productivity improvements, and sector-leading NPS scores.

• Expanded to 31 locations, adding 10 new sites in FY25, and increased relationship bankers to 161.

• Completed major technology re-platforming, enhancing scalability, operational efficiency, and enabling product innovation.

Financial highlights

• Underlying profit before tax (PBT) rose 14% to $125.6m year-over-year; statutory NPAT up 24% to $86.4m.

• Net interest margin (NIM) for FY25 was 2.93%, with 2H25 NIM at 3.04%, both above guidance.

• Cost-to-income (CTI) ratio improved to 52.4% for the year, dropping to 48% in the second half.

• Lending growth of 16% year-over-year, with gross loans and advances (GLA) reaching $12.5bn.

• Deposit book grew to over $10bn, with direct channel deposits at 71% of total.

Outlook and guidance

• FY26 PBT guidance of $180m–$190m, reflecting 43–51% growth, with continued operating leverage expected.

• Targeting GLA of $14.2bn–$14.7bn by June FY26; NIM expected between 3.00%–3.10%.

• CTI ratio expected to remain below 50% in FY26, with ROE progressing toward low-to-mid teens.

• Cost of risk forecasted at 60–65bps, a modest improvement.

• Continued focus on banker productivity, new product launches, regional/agri expansion, and funding diversification.