The Judo Capital Holdings Ltd (ASX:JDO) share price is in focus after the bank reaffirmed its FY26 profit before tax guidance, aiming for $180–$190 million, despite increasing its collective provision in response to economic uncertainties. Strong Q3 lending growth and a higher net interest margin (NIM) also stood out this quarter.
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What did Judo Capital report?
- Gross loans and advances reached $13.8 billion at 31 March, up from $13.4 billion at December 2025
- Net interest margin (NIM) rose to approximately 3.15% for Q3, up from 3.03% in 1H26
- Total deposits increased to $11.5 billion, with the blended cost of deposits at 0.74% over 1‑month BBSW
- Operating expenses remained in line with previous guidance
- Collective provisions coverage increased to 0.94% of loans as at March, up from 0.89% in December
- Profit before tax guidance reaffirmed at $180–$190 million for FY26
What else do investors need to know?
Judo's asset quality remained stable with 90-days-past-due and impaired loans at 2.65% of gross loans, slightly improving from 2.66% in December. The bank completed a detailed review of its loan portfolio and decided to strengthen its forward-looking provision, especially for sectors sensitive to economic shifts like agriculture and transport.
Judo's new savings products, launched over the past two quarters, have already accumulated over $1.1 billion in balances. The cost of funding remains below historical averages, but deposit pricing is expected to normalise by year-end.
What did Judo Capital management say?
CEO Chris Bayliss said:
Judo continues to give its full support to Australian small and medium-sized enterprises as they navigate heightened volatility in the operating environment. Our unique relationship-led approach and low ratio of customers to bankers means we are close to our customers, and we are well positioned to understand and support their individual lending needs.
What's next for Judo Capital?
Judo reaffirmed its full-year guidance, though now sees profit before tax landing towards the lower end of the $180–$190 million range after its prudent increase to provisions. The bank plans to keep investing in new growth initiatives and deeper penetration into regional and agribusiness lending.
With a healthy capital position and ongoing focus on disciplined cost management, Judo is positioning itself for sustainable growth. Management is targeting a net interest margin at the upper end of guidance and expects funding costs to gradually rise to more typical levels by the end of FY26.
Judo Capital share price snapshot
Over the past 12 months, Judo Capital shares have declined 21%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 10% over the same period.
