Judo Capital expects $122M risk cost
- Judo Capital updated its financial year 2026 asset quality and trading forecasts due to rising provision costs.
- The company forecasts its full-year cost of risk to reach between $116 million and $122 million.
- Management stated that the update follows specific provision increases for three business exposures across different economic sectors.
Judo Capital (ASX:JDO) or Judo Bank, updated its financial year 2026 forecasts, predicting a cost of risk up to $122 million.
The company stated that its expected profit before tax of $163 million to $169 million reflects roughly 30% growth from last year.
The rising costs stem from individual customer developments that required specific provision increases across three distinct industry sectors.
Gross loans and advances reached over $14.4 billion on June 24 and are expected to hit $14.6 billion to $14.7 billion by June 30.
Following the announcement, the Judo Capital Holdings share price was up at $1.54.
Net interest margin for the second half is now forecast to exceed 3.2%, which sits above previous company guidance of approximately 3.15%.
The bank also noted that its financial year 2027 profit before tax is expected to grow another 30% to between $210 million and $220 million.
