Highlights

  • Profit before tax rose 53% year-on-year to AUD 86.5 million, with statutory net profit after tax increasing 46% to AUD 59.9 million.
  • Gross loans and advances grew to AUD 13.4 billion, up 15% year-on-year, with updated FY26 guidance of AUD 14.4 billion to AUD 14.7 billion.
  • FY26 PBT guidance reaffirmed at AUD 180 million to AUD 190 million, with second-half net interest margin expected to improve to around 3.15%.

Judo Capital Holdings Limited (ASX:JDO) has reported its financial results for the half year ended 31 December 2025, delivering higher earnings and continued loan book expansion. The specialist SME lender recorded profit before tax (PBT) of AUD 86.5 million, representing a 53% increase compared with the previous corresponding period.

Shares in Judo were trading at AUD 1.95, up 5.51% on the day and 11.71% higher over six months as of 17 February 2026.

Earnings Growth Driven by Loan Expansion

For the first half of FY26, Judo reported statutory net profit after tax (NPAT) of AUD 59.9 million, up 32% on the prior half and 46% compared with 1H25. Profit before tax rose to AUD 86.5 million, supported by continued growth in lending and a stable net interest margin (NIM) of 3.03%.

Gross loans and advances (GLA) increased 7% over the half to AUD 13.4 billion and 15% year-on-year. Deposits climbed to AUD 10.9 billion, up 21% from the previous corresponding period.

Earnings per share rose to 5.4 cents, while annualised return on equity reached 6.9%, compared with 5.1% a year earlier.

Operating Leverage and Margin Outlook

Judo reported an improvement in its cost-to-income (CTI) ratio to 48.5%, down 890 basis points from the previous corresponding period. The bank expects further improvement in the second half of FY26 as scale benefits continue.

Net interest margin remained broadly stable at 3.03% for the half. Guidance for 2H26 NIM has been upgraded to approximately 3.15%, supported by improved funding costs on new term deposits and optimisation of wholesale funding programs.

The Common Equity Tier 1 (CET1) ratio stood at 12.6%, while the Total Capital ratio was 16.9%. In October 2025, the bank completed a AUD 150 million Tier 2 capital issuance.

Lending Momentum and Product Expansion

Judo achieved record monthly gross originations in December 2025, supported by 167 relationship bankers across its network. Growth was recorded across metropolitan, regional and agribusiness segments.

The bank expanded its deposit offering in October 2025 with the launch of an intermediated at-call savings account and plans to introduce a direct online at-call savings product later in the year.

Asset quality remained in line with FY26 guidance, although the ratio of customers more than 90 days past due increased modestly due to a limited number of exposures across various sectors.

FY26 Guidance Reaffirmed

Judo reaffirmed its FY26 PBT guidance range of AUD 180 million to AUD 190 million. The bank expects GLA to reach between AUD 14.4 billion and AUD 14.7 billion by year-end.

Cost of risk guidance remains at 60–65 basis points of average GLA, with continued portfolio growth and macroeconomic stability assumed in forecasts.

Judo Capital’s 1H26 result highlights continued earnings growth, expansion in lending and deposits, and improved operating metrics. With upgraded loan guidance and reaffirmed profit expectations, the bank enters the second half of FY26 focused on scaling its SME franchise, expanding product offerings and maintaining capital levels to support ongoing growth.

Frequently Asked Questions (FAQ)

  1. What were Judo Bank’s key profit figures for 1H26?
    Judo reported profit before tax of AUD 86.5 million and statutory net profit after tax of AUD 59.9 million for the half year ended 31 December 2025.
  2. How much did Judo’s loan book grow?
    Gross loans and advances increased to AUD 13.4 billion, representing 7% growth over the half and 15% year-on-year.
  3. What is Judo’s FY26 outlook?
    The bank reaffirmed FY26 PBT guidance of AUD 180 million to AUD 190 million and updated GLA guidance to AUD 14.4 billion–AUD 14.7 billion, with second-half NIM expected to be around 3.15%.