Judo Capital reports $168.1M full year profit
- Judo Capital reported a full-year profit before tax of $168.1 million for the period ended June 30, representing a 34% increase from the prior year.
- The company's share price rose following the earnings release as lending volumes and margins exceeded earlier guidance metrics.
- Management reaffirmed its fiscal year 2027 profit before tax guidance range of $210 million to $220 million, supported by disciplined lending expansion.
Judo Capital (ASX:JDO) or Judo Bank, reported a profit before tax of $168.1 million for the 2026 fiscal year, marking a 34% hike from $125.6 million in the 2025 financial year.
The result reflects continued growth in the loan book, strong NIM performance and the delivery of operating leverage, partly offset by higher impairment expenses.
Net interest margin increased to 3.13%, up 20 basis points from FY25. Judo's lending book grew 18% to end the year at $14.7 billion, at the top end of FY26 guidance, and well above system growth.
Impairment expense increased during the year to $117.7 million, at the low end of the revised guidance provided in June.
Deposits increased 24% to $12.2 billion, representing 71% of total funding.
"While the increase in specific provisions late in the year was disappointing, the underlying performance of the bank has remained strong, with record revenue, continued operating leverage, strong deposit growth and lending at the top end of guidance," said Judo Bank CEO Chris Bayliss.
The bank aims to achieve a return on equity of approximately 8% in the upcoming financial year as part of its ongoing operational strategy.
Following the announcement, the Judo Capital share price was up at $1.04.
The company notes that economic growth is expected to moderate in FY27 as higher interest rates weigh on activity and geopolitics remains a risk, particularly for energy prices.
Management reaffirmed its fiscal year 2027 profit before tax guidance range of $210 million to $220 million, supported by disciplined lending expansion.
