3 ASX 300 financial shares climbing on earnings updates

These financial shares are rallying after the companies posted strong results this earnings season.

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Key points

  • These three ASX 300 financial shares are in the green today 
  • These companies all reported positive earnings results 
  • Most of these companies had a positive outlook for FY23 and beyond

The S&P/ASX 200 Financials Index (ASX: XFJ) is up 0.61% today, making a modest gain.

However, as the earnings season continues, some companies that are part of this index are far exceeding the average as they report their FY22 results.

Here are three ASX financial shares that are rallying today.

Judo Capital Holdings Ltd (ASX: JDO)

The Judo Capital share price is up 7.13% to $1.31 at the time of writing. Earlier today, the shares reached a high of $1.335.

Judo Capital stated it exceeded forecasts for many of its key financial metrics in its FY22 results.

Its statutory net loss after tax was $7.7 million, beating its forecast of a $10.2 million loss. In FY21, it recorded a statutory net profit of $28.7 million.

Its net interest income also grew significantly during the reporting period, rising to $169.8 million, or a 101% increase.

The SME lending specialist also grew its lending portfolio to $6.1 billion. It forecasted a $6 billion growth in the prior period.

Judo Capital gave guidance for FY23, noting that gross loans and advances should reach approximately $9 billion. The company expects to benefit from rising interest rates in the near future.

No dividend was declared.

MA Financial Group Ltd (ASX: MAF)

The MA Financial share price is up 1.48% today. Shares in the ASX financial services group are trading for $6.19 each at the moment. Earlier, they reached an intraday high of $6.27 each.

MA Financial reported its 1H FY22 results this morning, noting strong top line and bottom line growth year over year (yoy).

Underlying revenue increased 54% to $146.2 million while underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) grew 64% to $49.6 million. Its underlying net profit after tax (NPAT) grew 58% to $28.1 million.

MA Financial gave guidance for 2H FY22, noting that it expects earnings per share (EPS) growth of 30% to 40% from FY21. The company's strong outlook is supported by its growth momentum, expected pipeline of fund inflows from clients, and its strong cash balance of $113 million to support strategy execution.

The company will pay a six-cent interim dividend per share for the reporting period. This is up 20% on the five cents paid in the prior corresponding period.

Insignia Financial Ltd (ASX: IFL)

The Insignia Financial share price is up 11.2% today. Shares in the ASX financial services company are trading for $3.53 at the time of writing. At the market open, the share price was $3.29.

Insignia Financial announced its full-year results for FY22 this morning. It reported notable increases in its gross margin and underlying earnings. Gross margin increased 102.8% to $1.48 billion, while EBITDA increased 71.9% to $388.5 million. Underlying profit after tax (UNPAT) surged to $244 million.

A fully franked dividend of 11.8 cents per share was announced for a payout ratio of 66% of UNPAT. The dividend has a record date of 8 September and a payment date of 29 September.

The company also announced its outlook for FY23, stating that gross margin is expected to contract between 1.5 to 2.5 basis points due to platform repricing and its product mix. However, the company's EBITDA margin is expected to be in line with results observed in FY22 at 11 basis points.

Motley Fool contributor Matthew Farley has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Judo Capital Holdings Limited. 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 Scott Phillips.

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