Judo Capital has reported a strong first half, with cash profit reaching $60 million, slightly surpassing UBS expectations, according to UBS analyst John Storey. Judo Capital is an Australian bank focused on providing lending solutions to small and medium-sized businesses. The company aims to support Australian businesses with tailored financial products and relationship-based banking.
Net interest income saw a 9.9 per cent increase, climbing to $236 million, driven by loan book expansion and consistent margins. The net interest margin (NIM) remained strong at 3.03 per cent, exceeding management’s targets. While costs rose 11.9 per cent compared to the previous half, the year-on-year increase was contained at 3.2 per cent, bolstering a cash return-on-equity of 6.9 per cent.
Storey highlighted that these results reinforce Judo Capital’s position as a high-growth challenger bank. Management has slightly revised its FY26 guidance upwards for gross loans, NIM, and profit before tax (PBT). UBS maintains a “buy” rating on Judo Capital’s stock, setting a share price target of $2.20, encouraged by the company’s robust momentum heading into the second half of the fiscal year.
The positive earnings report spurred investor confidence, with Judo Capital’s shares experiencing a 3.9 per cent increase in afternoon trading on the ASX.
