Judo Bank Shares Slide on Growth Revision Amid ASX 200 Volatility

May 01, 2025 05:44 PM AEST | By Team Kalkine Media

Judo Bank Shares Slide on Growth Revision Amid ASX 200 Volatility — Image source: Shutterstock

Expense Pressures and Strategic Adjustments

In addition to revising its growth outlook, Judo Capital also signaled a rise in provisions against potential bad debts, which will contribute to an increase in third-quarter operating expenses. Key drivers behind the expense uplift include wage inflation, amortisation of intangible assets, and strategic investments aimed at supporting long-term growth.

Despite these challenges, the bank reaffirmed its full-year profit growth target of 15% and noted that it still expects its net interest margin (NIM) for the second half of the fiscal year to reach the higher end of its 2.9% to 3% guidance. However, management warned that any further reductions in the cash rate before June 30 could place downward pressure on margins.

The announcement arrived just ahead of the company’s scheduled presentation at the Macquarie investment conference next week, prompting speculation that the downgrade was strategically timed. While some market participants had already noted signs of subdued loan growth, the official update brought those concerns to the forefront.

This market development comes at a critical juncture for the Australian banking sector, as major players like Westpac (ASX:WBC), National Australia Bank (ASX:NAB), and ANZ Group Holdings (ASX:ANZ) are all set to report interim results in the coming week. Analysts will closely monitor how broader economic tensions and trade uncertainties are affecting business banking across the sector.

Investors interested in exploring more resilient segments of the market during volatile periods may consider diversified opportunities across the S&P/ASX 200, or look into reliable ASX dividend stocks for stable income generation.

As market volatility continues to challenge forecasting across the financial sector, investor attention remains fixed on upcoming bank earnings and the broader implications for credit growth and margin sustainability throughout 2025.

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