Judo Capital (JDO) Investor Day 2025 summary

Strategic priorities and business model

• Entering the optimization phase after building and scaling, focusing on enhancing the core SME business, expanding TAM, optimizing funding/capital/costs, and creating new growth avenues.

• Maintaining a simple, relationship-driven, legacy-free model with no legacy products, technology, or sales culture, and a focus on highly skilled, judgment-based bankers.

• Expanding product suite to include enhanced working capital, warehouse lending, and new deposit products such as business online savings accounts, to improve funding flexibility and reduce costs.

• Targeting growth in warehouse lending, agribusiness, and regional expansion, with a current market share below 2% and a TAM now estimated at AUD 814 billion.

• Aims for sector-leading profitability, customer NPS, and to be the pre-eminent employer for SME bankers, with 29 locations as of May 2025 and plans to add 10 new locations in FY25.

Financial guidance and performance

• FY25 guidance unchanged: targeting a loan book of AUD 12.4–12.6 billion, 2H25 NIM at the upper end of 2.90%–3.00%, and 15% PBT growth versus FY24.

• At-scale targets include a lending portfolio of AUD 15–20 billion, NIM above 3%, cost-to-income ratio approaching 30%, and ROE in the low-to-mid teens.

• Cost growth is slowing, with CTI expected to improve in 2H25; core build costs and tech capex largely completed.

• Deposit mix to reach about 75% of funding stack, with new savings products to diversify and lower funding costs.

• Operating leverage is emerging, with FY26 PBT growth targeted at 50% assuming stable conditions.

Risk management and credit approach

• Robust, purpose-built risk management framework, APRA-regulated, recently transitioned to mid-tier supervision, and focused on optimization.

• Credit risk managed through deep expertise, judgment-based lending, and close customer relationships, with an average of 28 customers per banker.

• Portfolio diversification prioritized, with conservative posture in commercial property and agri sectors, and proactive management of sector/geographic concentrations.

• Asset management team with significant experience supports customers in distress, aiming for early intervention and tailored solutions.

• No individual sales targets; bankers are empowered and incentivized based on credit skills and cultural fit, with a unique Black Belt scheme for lending authority.