The Judo Capital Holdings Ltd (ASX: JDO) share price is in focus today after the specialist business lender reported a 32% jump in net profit after tax (NPAT) to $59.9 million for the half year ended 31 December 2025, alongside 7% growth in its loan book.
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What did Judo Capital report?
- Statutory NPAT of $59.9 million, up 32% on the prior half and 46% year-on-year
- Profit before tax (PBT) rose to $86.5 million, up 26% half on half and 53% on the prior corresponding period
- Gross loans and advances (GLA) grew 7% since June to $13.4 billion, 15% higher year on year
- Net interest margin (NIM) held steady at 3.03%, with 2H26 NIM guidance upgraded to around 3.15%
- Cost-to-income (CTI) ratio improved to 48.5%, 890 basis points lower than a year ago
- Capital position remains strong, with CET1 ratio at 12.6%
What else do investors need to know?
Judo continues to grow its lending at rates above the broader banking system, supported by a customer-led value proposition and productivity gains. The bank's deposit base also hit a new high of $10.9 billion, boosted by the launch of an intermediated at-call savings account, with further product innovation planned.
Asset quality remains stable, though there was a small rise in accounts more than 90 days past due, which the bank says relates to a handful of exposures across several sectors. Judo successfully completed a $150 million Tier 2 capital issue in October, underpinning continued growth without the need for more core equity.
What did Judo Capital management say?
CEO and Managing Director Chris Bayliss said:
Today's result demonstrates that Judo continues to successfully execute against its clear and simple strategy. We are on track to achieving our existing FY26 guidance for significant profit growth, and realising the operating leverage inherent in our business model… Our passion to support SMEs continues to guide everything we do, and I'm very confident about the strength of our business as we move into the second half of the year and beyond.
What's next for Judo Capital?
Judo reaffirmed its FY26 guidance, expecting profit before tax to land between $180 million and $190 million, and upgraded its loan growth range to $14.4–$14.7 billion. Management is targeting ongoing productivity improvements, further product launches, and deepening its focus in regional and agribusiness lending.
The bank expects operating leverage to improve further in the second half of FY26, with a cost-to-income ratio below 50% and an anticipated return on equity in the low-to-mid teens as it continues to scale.
Judo Capital share price snapshot
Over the past 12 months, Judo Capital shares have declined 5%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.
