Judo Capital (JDO) H2 2025 earnings summary

Executive summary

• Achieved 16% lending growth to $12.5bn, nearly double sector growth, and 20% increase in statutory NPAT to $86.4m year-over-year.

• Transitioned from building and scaling to optimizing the bank, focusing on operating leverage and productivity improvements.

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

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

• Maintained strong employee engagement (JEDI 71) and high customer NPS scores (Lending NPS +53, Deposit NPS +67).

Financial highlights

• Underlying profit before tax (PBT) rose 14% to $125.6 million year-over-year.

• Net interest margin (NIM) for FY25 was 2.93%, with second half 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.

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

• ROE increased by 80 basis points to 5.3% year-over-year.

Outlook and guidance

• FY26 PBT guidance of $180–$190 million, reflecting 43–51% growth.

• Targeting GLA of $14.2–$14.7 billion by June FY26.

• NIM expected between 3% and 3.1% for FY26, with improvement in the second half.

• CTI ratio expected to remain below 50% in FY26.

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