Looking for a quality S&P/ASX 200 Index (ASX: XJO) bank stock to add to your portfolio?
You may want to consider Judo Capital Holdings Ltd (ASX: JDO).
The Judo Capital share price is up 1.5% in afternoon trade today, with shares changing hands for $1.70 apiece.
While that leaves the Judo share price down 8.1% in 2025, shares remain up 27.0% since this time last year.
And Ord Minnett's Tony Paterno believes the ASX 200 bank stock could run higher from here (courtesy of The Bull).
Image source: Getty Images
Should I buy the ASX 200 bank stock today?
"This Australian lender focuses on small and medium size enterprises," said Paterno, who has a buy recommendation on the ASX 200 bank stock.
As for the first reason Judo is a buy, he said, "Judo continues to successfully execute its strategy."
Paterno added:
It's prudently growing its loan and deposit books. The company reported a net profit after tax of $40.9 million in the first half of fiscal year 2025, up 70% on the prior corresponding period.
The second reason Judo could outperform in the year ahead is the improving outlook for its net interest margin (NIM).
According to Paterno:
It's rebuilding its net interest margin amid delivering operating leverage and maintaining asset quality. Judo upgraded its net interest margin guidance to the top end of previously provided ranges in the second half and for full year 2025.
And the third reason to consider buying the ASX 200 bank is for potential share price gains.
"The company offers upside potential if it can meet its targets," Paterno said.
How has Judo been tracking?
Judo reported its half-year results on 18 February.
Atop the big profit boost Paterno cited above, the ASX 200 bank stock achieved 9% year-on-year growth in its gross loans and advances (GLA) to $11.6 billion, which, according to Judo, was double the sector growth rate.
NIM of 2.81% was in line with guidance, and Judo's strong Common Equity Tier 1 (CET1) ratio of 13.8% was supported by the bank's increasing profit growth.
Judo also re-confirmed its full-year FY 2025 guidance of targeting 15% growth in profits before tax.
Commenting on the half-year results and the bank's outlook on the day, Judo CEO Chris Bayliss 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.
