AUS
NZ
UK
CA
USA
IND
Highlights
- Judo Capital’s share price up 13% to AUD2.20 after impressive earnings report.
- Underlying profit before tax grows 33%, while statutory NPAT increases by 70%.
- Record AUD2.3 billion in new lending achieved, doubling sector growth.
Judo Capital Holdings Ltd (ASX:JDO) has seen its share price surge by 13%, reaching AUD2.20, following the release of the company’s impressive half-year results for the six months ending December 31, 2024. The performance reflects the company’s robust growth in both profit and lending, marking a positive outlook for its continued success in the Australian small business lending sector.
For the period, Judo Capital reported a significant 33% increase in underlying profit before tax (PBT), totaling AUD56.7 million. In addition, the company saw a remarkable 70% jump in statutory net profit after tax (NPAT), which reached AUD40.9 million. This surge in profitability is largely attributed to the company’s continued growth in gross loans and advances, which rose 9% to AUD11.6 billion, double the sector’s growth rate.
The increase in loans was driven by Judo Capital’s market-leading net interest margin (NIM), which stood at 2.81%, reflecting strong profitability on its lending book. This is a key indicator of the bank’s effective management of its lending portfolio and its ability to generate returns for shareholders.
Judo Capital’s CEO, Chris Bayliss, expressed his satisfaction with the company’s half-year performance, highlighting the momentum the business has gained. “This result demonstrates that we continue to execute our clear and simple strategy to scale our bank and meet the needs of more Australian SMEs. Our business has strong momentum which positions us well to deliver a significant uplift in earnings in 2H25, through improved NIM and growth in our loan book,” said Bayliss.
One of the standout achievements for Judo Capital in this period was the record AUD2.3 billion in new lending. This achievement underscores the company’s strong position in the market and its ability to attract and service a growing number of small and medium-sized enterprises (SMEs). The company’s unique value proposition, which focuses on delivering tailored and flexible lending solutions to SMEs, has resonated well with its target market, as evidenced by its market-leading Net Promoter Score (NPS).
Additionally, Judo Capital is making significant progress in its regional expansion strategy, which has contributed to its strong growth in net lending. The company’s ability to deliver growth at double the sector rate while maintaining strong margins positions it well for continued success as it scales its operations across the country.
Judo Capital’s impressive performance outpaces the broader financial sector, showcasing the strength of its business model and its ability to meet the needs of Australian SMEs. With strong growth in both profits and new lending, Judo Capital is well-positioned to continue delivering solid results in the second half of FY 2025, as it focuses on expanding its loan book and further improving its NIM.
