Judo (ASX:JDO) share price flat despite climbing loan book

What’s up with Judo shares today?

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The S&P/ASX 200 Index (ASX: XJO) is having a fairly average start to the trading week this Monday, with the ASX 200 currently down by 0.2% to 7,442 points. The Judo Capital Holdings Ltd (ASX: JDO) is faring slightly better though, if you can even say that. Judo shares are currently sitting at $2.29 each, flat for the day so far.

Judo is one of the newest ASX shares on the share market. It only began publically-listed life exactly a week ago on 1 November. As my Fool colleague Mitchell noted at the time, this was a rather momentous occasion in ASX history. Judo became the first ASX bank in 3 decades to join the ASX boards.

It’s charting an unusual course in the ASX banking sector. Judo aims to cater to the niche small and medium-sized enterprise (SME) business banking space. So don’t expect residential mortgages, savings accounts or credit cards from this bank, at least in the traditional sense.

Last week, Judo underwent its initial public offering (IPO) at an offer price of $2.10 a share. As we covered at the time, midday of its first day saw Judo rise a healthy 2.86% to $2.1 a share. The next day saw this bank rise by another 5%, and by Wednesday Judo had hit $2.55 a share, a good 21% above its IPO price.

But the days following have seen Judo shares come back to earth. Its current share price of $2.29 is almost in the middle of its IPO price and its new high watermark.

Judo share price flat on Monday despite loan book growth

It appears that the ASX announcement Judo made this morning hasn’t changed too many opinions on the company. This morning, Judo released its monthly loan book update. This showed that Judo now has $4.37 billion in gross loans and advances (GLAs) on its books, as of 31 October. That’s up 5.3% over the $4.15 billion from 30 September, and a pleasing 24.1% above the $3.52 billion this bank had in GLAs on 30 June.

Additionally, Judo also offered up some guidance for this figure going forward. It stated that:

Judo’s pro forma forecast for GLAs at the end of the FY22 period is $6.0 billion. Judo does not expect lending growth to be linear throughout the financial year, consistent with industry seasonality.

These statistics don’t seem to have done too much for investors sentiment today though, seeing as the Judo share price remains flat at $2.29 a share. At this price, Judo Capital has a market capitalisation of $2.53 billion.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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