There have been a large number of results released to the market this morning.
Two ASX 200 financial shares that have caught the eye with their earnings updates are listed below.
Here's why investors are getting excited by these results:
HMC Capital Ltd (ASX: HMC)
The HMC Capital share price is up 10% to $10.93. Investors have been buying the buying the diversified alternative asset manager's shares after it delivered a very strong half year result.
HMC Capital reported a 240% increase in pre-tax operating earnings to $202.2 million and a 204% jump in pre-tax operating earnings per share to 51.9 cents.
Looking ahead, management expects a strong second half and is guiding to pre-tax operating earnings per share of 80 cents. It also notes that it is on target to pay a 12 cents per share distribution in FY 2025.
Goldman Sachs was impressed with the ASX 200 financial share's result. It said:
HMC reported 1H25 earnings of A$140.5 mn which were up significantly hoh and materially/+14.1% higher than GSe/VAe driven by stronger than expected management fees and investment income partially offset by higher than expected operating expenses. HMC announced an interim 1H25 dividend of A6.0c (100% franked, in-line with GSe/VAe).
Judo Capital Holdings Ltd (ASX: JDO)
The Judo Capital share price is up 13% to $2.20. This follows the release of the small business lender's half year results.
Judo Capital posted a 33% increase in underlying profit before tax to $56.7 million and a 70% jump in statutory net profit after tax to $40.9 million. This was underpinned by a 9% increase in gross loans and advances to $11.6 billion (2x sector growth) and net interest margin of 2.81%.
The ASX 200 financial share's CEO, Chris Bayliss, was pleased with the half. He said:
This result demonstrates that we continue to execute our clear and simple strategy to scale our bank and meet the needs of more Australian SMEs. Our business has strong momentum which positions us well to deliver a significant uplift in earnings in 2H25, through improved NIM and growth in our loan book.
This half, we have achieved a record of $2.3bn in new lending. Judo's unique customer value proposition continues to resonate with SMEs, demonstrated by our market-leading NPS score, and we are making great progress with our regional expansion strategy. This has underpinned our net lending growth of 2x the sector, at very strong margins.
