AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights:
- Judo Capital Holdings Limited (ASX:JDO) released its 1H2023 results on Tuesday.
- The bank’s profit after income tax was at AU$36.1 million, up from AU$8.4 million in the six months ended 30 June 2022.
- As per the company’s FY2023 guidance, interest revenue in the second half of the current fiscal will be higher than in the first half.
Judo Capital Holdings (ASX:JDO), the promoter of small and medium business-focused Judo Bank, released its 1H2023 results ended 31 December last year on Tuesday, 21 February 2023.
JDO shares reacted positively and ended 4.51% higher at AU$1.505 on Tuesday. Including today's gains, JDO shares have advanced nearly 9% year to date.
| Company Name | Market Price (AU$) |
Market Cap (AU$) |
Yearly Return (%) |
Dividend Yield (%) |
PE Ratio (x) |
YTD (%) |
52W High (%) |
52W Low (%) |
|
|---|---|---|---|---|---|---|---|---|---|
| JUDOCAPHOL FPO [JDO] | 1.505 | 1.664B | -27.27 | NA | NA | 8.68 | 2.00 | 1.04 | |
*Data powered by Morningstar®. Data delayed 20 minutes unless otherwise indicated. Read More
as of 21/02/2023, 05:37:02 PM AEDT
In 1H2023, Judo Capital’s statutory operating income from ordinary activities was up 145% to AU$244 million, while profit after income tax was at AU$36.1 million, up from AU$8.4 million in June 2022. The jump in profit was supported by higher net interest income (NII), which surged 69% over the half year to 30 June 2022 to AU$163 million, driven by loan growth and expansion in net interest margin (NIM).
The lender’s NIM for the reporting period increased by 100 basis points to 3.56%, higher than the bank's 1HFY23 guidance range of 3.3-3.5%. Gross loans and advances (GLAs) as of 31 December last year stood at AU$7.5 billion, rising 23%.
Joseph Hearly, CEO and co-founder of Judo Capital, named its 1HFY23 earnings as “black belt” results.
Net tangible assets per share for 1H2023 was AU$1.27, increased from AU$1.25 in pcp. Cash and cash equivalents on 31 December last year were AU$793.4 million.
Gross loans and advances (GLAs) as of 31 December last year stood at AU$7.5 billion, rising 23%.
During 1H2023, the cost-to-income ratio (CTI) was noted at 54%, an enhancement of 17%-point, propelled by robust progress in net interest income and the emerging leverage of the bank’s operating model through people and technology.
Judo Capital’s dividend policy
Judo Capital does not intend to pay any dividends in the near future as it aims to reinvest the cash generated by its business to fuel future growth.
Judo Capital FY2023 guidance
The bank said it is on track to achieve its guidance for FY23, and interest revenue in the second half of the current fiscal is going to be higher than the first half on account of higher credit offtake.
FY2023 guidance for GLAs is above AU$9 billion, propelled by strong ongoing growth within risk appetite, steered by its relationship-led customer value proposition. For FY2023, the bank expects underlying NIM of 3.1 – 3.3% in 2H23, with term deposit margins increasing to around 85 bps. CTI is anticipated to be less than 60%. The second half of FY2023’s CTI is expected to increase 2-3% HoH, propelled by normalising underlying NIM and ongoing investment in progress.
FY2023’s cost of risk is expected to be between AU$50- AU$60 million. It is steered by loan growth, elevated provision coverage, and prospective write-offs. While FY2023 return on equity is expected to fall between low to mid-single digits showing continued growth towards main business metrics at scale.
