Judo bank shares lift after posting 24% full-year profit growth
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More news: Shares in Judo Capital were among the biggest gainers around midday after the neobank delivered strong full-year profit results driven by lower-than-expected costs.
At 12:19pm AEST, Judo Capital shares were up 4.1% to $1.82.
UBS analysts said that “the business is tracking in line [with] expectations and we remain constructive around the investment case”.
Jarden analysts noted that FY26 guidance for net interest margin of 3% to 3.1% “implies an upgrade to consensus” of 3.03% by Visible Alpha. E&P Financial Group analyst Olivier Coulon flagged that second-half opex came in 6% below consensus expectations.
Judo bank sees 24% rise in full-year profit, eyes strong FY26 growth
The news: Neobank Judo Capital reported a 24% surge in statutory net profit after tax for the 2025 financial year, as the company continued to scale its loan book and improve its net interest margin (NIM).
The numbers: Net profit after tax totalled $86.4 million, up 24% from $69.9 million in FY24.
Gross loans and advances hit $12.5 billion, up 16% or 2 times system growth on the back of Judo's expansion into regional areas.
Deposits reached $9.9 billion, up 20% as a result of direct channel growth.
Net interest margins came in at 2.93% after a strong second half result that was above guidance.
Judo's common tier one equity ratio fell from 14.7% to 13.1%, as a result of lending and profit growth.
The bank guided profit before tax for the next financial year at between $180 million and $190 million. It listed its FY26 targets as growing the GLA book to $14.2 billion to $14.7 billion, pushing net interest margins over 3%, and pushing cost to income ratios below 50%.
The context: Judo CEO Chris Bayliss said his team had built the bank, scaled the bank and was in the third stage of optimisation, having overhauled its systems.
"We have shifted our focus to enhancing our core SME lending franchise, expanding our product suite, and optimising funding, capital, and costs. I'm very pleased with the momentum in our technology and operations teams, who are now working to increase the capacity of our relationship bankers and support the development of new products," Bayliss said.
"We are well on our way to achieving our at-scale ROE in the low to mid-teens, and we remain confident in demonstrating meaningful progress towards this goal in FY26, as the inherent benefits of scale in our model, combined with a larger balance sheet, are expected to drive significant profit growth."
The sources: ASX, Jarden research, UBS research, E&P Financial Group research
