3 ASX financial shares diving over 8% on earnings updates

These financial shares are under pressure on Thursday following their results releases.

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The financial sector has been a difficult place to be for investors on Thursday.

A number of ASX financial shares have tumbled deep into the red following the release of their respective results.

Here's a summary of what is happening today:

Humm Group Ltd (ASX: HUM)

The Humm share price is down 8% to 45 cents. This morning, this ASX financial share revealed a 53% decline in cash net profit after tax to $24.1 million. This was driven by a poor performance from its consumer finance business, which went from a cash profit of $22.4 million in FY 2022 to a $10.9 million loss this financial year. This offset profit growth in the commercial finance business and overshadowed the announcement of a $10 million share buyback. A fully franked dividend of 1 cents per share was declared, bringing its FY 2023 dividend to 2 cents per share.

Insignia Financial Ltd (ASX: IFL)

The Insignia share price is down almost 11% to $2.60. This follows the release of the ASX financial share's full-year results. Insignia, previously known as IOOF, reported a 15% decline in underlying net profit after tax to $191 million. Management advised that its profits were impacted by lower average funds under management and administration and strategic repricing decisions. A final dividend of 9.3 cents was declared, which is down 21% from the prior corresponding period.

Judo Capital Holdings Ltd (ASX: JDO)

The Judo Capital share price has fallen 17% to $1.05. Investors have been selling this small business lender's shares despite it posting a sevenfold increase in FY 2023 profit before tax to $107.5 million. Also failing to appease the market was a 74 basis points increase in the ASX financial share's underlying net interest margin to 3.53%. In response to the result, Goldman Sachs commented: "We note that JDO's FY23 pre-tax profit came in at A$107.5 mn which was 0.7% higher than GSe but -2.6% lower than company compiled consensus (CCC) estimates." Concerns over margin headwinds and asset quality deterioration may also be weighing on its shares.

Motley Fool contributor James Mickleboro 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 Goldman Sachs Group and Judo Capital. The Motley Fool Australia has recommended Humm Group. 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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