Judo Capital earnings: Lending up 16%, profit climbs in FY25

Judo Capital Holdings' FY25 earnings show robust lending growth and profit ahead of optimistic FY26 forecasts.

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Key points

  • Judo Capital Holdings reported a 16% growth in its lending book to $12.5 billion and a 14% rise in underlying profit before tax to $125.6 million for FY25.
  • The bank expanded its regional presence with 165 bankers at 31 locations, completed a major IT replatforming, and maintained a high Net Promoter Score of +53.
  • Judo aims for significant profit growth in FY26, with plans to launch new digital products and expand its lending operations while maintaining high credit standards.

The Judo Capital Holdings Ltd (ASX: JDO) share price is in focus as the company delivered strong lending growth of 16% to $12.5 billion and increased underlying profit before tax by 14% to $125.6 million for FY25.

What did Judo Capital Holdings report?

  • Lending book rose 16% over the year to $12.5 billion, outpacing system growth
  • Underlying profit before tax up 14% to $125.6 million
  • Deposit franchise grew to $10 billion, with $1.4 billion increase in direct retail balances
  • Common Equity Tier 1 (CET1) ratio of 13.1% at 30 June 2025
  • 90+ day past due and impaired loan ratio improved to 2.37% at 30 September 2025

What else do investors need to know?

Judo continues to expand its presence in regional and rural Australia, now boasting 165 bankers across 31 locations. The bank maintains industry-leading customer satisfaction, with a sector-best Net Promoter Score of +53, and has been recognised as an AFR BOSS Best Place to Work for the third consecutive year.

During the first quarter of FY26, gross loans and advances increased by $463 million to just over $12.9 billion. The AAA pipeline, representing applications approved and accepted, stands at a healthy $1.9 billion, supporting ongoing growth.

The bank's technological transformation is well underway, with major replatforming of its core systems completed, delivering better scalability and process improvements that should further empower its relationship bankers and boost efficiency.

What did Judo Capital Holdings management say?

Commenting on the result, CEO and Managing Director Chris Bayliss said:

We have a clear and simple strategy to be Australia's most trusted SME business bank, and our conviction in our strategy has never been stronger. No other bank has the combination of our pure-play SME-focus, our culture, and a platform that enables us to deliver our superior customer value proposition to the SME market, and in turn deliver sector-leading returns.

What's next for Judo Capital Holdings?

Looking ahead, Judo is aiming for FY26 profit before tax of $180–190 million, which would reflect around 50% growth over FY25's result. Management expects to see ongoing improvements in return on equity as the bank continues to scale and optimise its operations.

New digital products and deposit offerings are slated for rollout over the coming months. Judo's leadership is focused on leveraging its new IT platform, expanding its lending book, and maintaining high credit standards to support sustainable growth.

Judo Capital Holdings share price snapshot

Over the past 12 months, the Judo Capital Holdings share price has declined 15%, underperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.

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Motley Fool contributor Laura Stewart 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 Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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