The Judo Capital Holdings Ltd (ASX: JDO) share price is in focus today after the specialist business lender reported strong Q3 lending growth and robust deposit franchise performance at the Macquarie Australia Conference.
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What did Judo Capital report?
- Gross loans and advances (GLA) reached $13.8 billion as at March 2026, up from $12.9 billion at December 2025
- Quarterly lending margin (NIM) improved to ~3.15%, up from 3.03% in 1H26
- Attrition decreased to 15% annualised in Q3, indicating higher customer retention
- Deposit balances grew to a record $11.5 billion
- Common equity tier 1 (CET1) capital ratio held firm at 12.6%
- Collective provisioning increased to 94bps of GLA, reflecting prudent credit management
What else do investors need to know?
The launch of Judo's Direct Online Savings Account in February 2026 has seen at-call savings balances top $1.1 billion, strengthening its deposit base. The bank's AAA pipeline sits at $2.2 billion, with an average margin of 4.3%, pointing to continued lending momentum.
Judo has reviewed its lending portfolio on a client-by-client basis, as a response to ongoing geopolitical and economic uncertainty, ensuring most customers remain in strong financial health. Increased expected credit loss (ECL) provisioning, particularly in sectors affected by fuel prices and economic trends, demonstrates a cautious approach to risk.
What's next for Judo Capital?
Judo reaffirmed its FY26 guidance, targeting GLA of $14.4–$14.7 billion and a NIM at the upper end of 3.00%–3.10%. The bank expects its cost-to-income ratio to further improve in the second half of FY26, and its cost of risk to remain within 70–75bps of average loans.
Management remains confident Judo can support ongoing lending growth and become capital self-sustaining, supported by a strong CET1 ratio and other capital management levers like securitisation.
Judo Capital share price snapshot
Over the past 12 months, Judo Capital shares have declined 3%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.
