Judo Capital (JDO) H1 2025 earnings summary

Executive summary

• Underlying profit before tax rose 33% to AUD 56.7 million, with statutory net profit after tax up 70% to AUD 40.9 million, driven by lower impairment charges, non-recurring costs in the prior half, and a lower effective tax rate.

• Lending growth annualised at 18%, with gross loans and advances up 9% to AUD 11.6 billion, outpacing system growth and supported by regional and Agri expansion.

• Net interest margin (NIM) was 2.81%, with upgraded guidance to the top end of the range for both the second half and full year.

• Credit quality metrics remained stable, with 90+ days past due and impaired loans at 2.3%, and impairment expense down to AUD 28.8 million.

• Five new locations and 15 new business bankers were added, supporting regional expansion and future growth.

Financial highlights

• Statutory profit before tax was AUD 56.7 million, up 54% half-on-half; underlying PBT also AUD 56.7 million, up 33%.

• Net interest income reached AUD 193.0 million, up 1% half-on-half, with NIM at 2.81%.

• Gross originations hit a record AUD 2.3 billion in December; pipeline of approved and accepted loans at AUD 1.1 billion.

• Operating expenses rose 4% to AUD 115.4 million, with CTI ratio at 57.4%.

• Customer deposits grew 9% to AUD 9.0 billion, now 66% of total funding.

Outlook and guidance

• FY25 guidance targets GLA of AUD 12.7–13.0 billion, with lending growth to be funded mainly by deposits.

• NIM guidance upgraded to the top end of the range for both the second half and full year, with exit NIM for June 2025 expected to recover to 3%.

• CTI ratio expected to improve in the second half, with cost of risk guidance unchanged at 50bps of GLA.

• Targeting 15% underlying PBT growth and low- to mid-teens ROE at scale.

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