Judo Capital (JDO) H2 2024 earnings summary

Executive summary

• Achieved strong FY24 financial performance with profit before tax of $104 million, or $110.1 million excluding one-off costs, up 2% year-over-year.

• Loan book reached $10.7 billion, up 20% year-over-year and three times system growth.

• Regional expansion included four new locations and 21 bankers, with plans for over 10 new locations and 20 bankers in FY25.

• Transitioned funding stack by repaying the TFF, increasing deposit funding to 64% of the funding stack.

• Maintained strong culture and high employee engagement, supporting industry-leading NPS and growth.

Financial highlights

• Net Interest Margin (NIM) for FY24 was 2.94%, four basis points above guidance; second half NIM was 2.85%.

• Cost-to-income ratio (CTI) at 54.6%–55%, at the lower end of guidance.

• Impairment expense was AUD 70.1 million (72 bps of GLAs), with provision coverage at 1.39% of GLAs.

• Write-offs totaled AUD 30.9 million, covering 13 customers.

• CET1 ratio ended at 14.7%, sector leading.

Outlook and guidance

• FY25 guidance: profit before tax growth of 15%, lending growth above system with GLAs targeted at $12.7–$13 billion by June 2025.

• NIM expected to be 2.8–2.9% for FY25, with a June 2025 exit NIM of 3%.

• CTI and cost of risk expected to remain broadly stable; ROE to improve, with significant operating leverage in the second half.

• Continued focus on regional expansion, adjacent segments, and new SME products to drive growth and ROE.