Judo Capital shares plunge 41% to historic low after slashing profit guidance
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More news: Judo Capital shares are tracking its biggest one-day fall on record after the bank slashed its FY26 profit guidance following a deterioration in asset quality that has significantly lifted its provisioning charges.
Shares crashed 40.6% to 91 cents at 11:46am AEST.
Judo Capital downgrades FY26 profit guidance on deteriorating asset quality
The news: Judo Capital has downgraded its FY26 profit before tax (PBT) guidance to a range of $163 million to $169 million, down from the previously guided $180 million to $190 million, citing a deterioration in asset quality across customer exposures that has lifted its total cost of risk and provisioning charges.
The numbers: The bank reported gross loans and advances exceeding $14.4 billion as of 24 June, with expectations to reach $14.6 billion to $14.7 billion by 30 June.
Net interest margin is projected to be above 3.2% in the second quarter, slightly outperforming previous guidance of 3.1%.
The cost-to-income ratio for the second half is expected to track below 48.5%, in line with prior forecasts.
Judo expects to deliver PBT of between $210 million and $220 million in FY27.
The context: CEO Chris Bayliss stated that recent credit outcomes have been driven by a small number of customers whom the bank is actively working with. He added that these exposures deteriorated subsequent to a customer-by-customer review and reflect recent, borrower-specific developments.
What they said: “We have a proven customer value proposition, are profitable and well capitalised, and have a clear path to achieving a return on equity in the low-to-mid teens,” Bayliss said.
The source: ASX
