Judo Bank is making waves in the competitive landscape of Australian business lending, challenging the dominance of the big four banks. The lender’s net profit after tax reached nearly $60 million in the six months to December, marking a 32 per cent increase compared to the prior half-year and a 46 per cent rise from the same period a year ago. Judo Bank specialises in providing loans and financial services to small and medium-sized businesses, offering a relationship-focused approach to banking. Co-founded in 2016, Judo received its banking licence in 2019.
The lender has experienced growth above the sector average, with gross loans and advances reaching $13.4 billion, reflecting a 7 per cent increase over the half-year and a 15 per cent increase year-on-year. Due to a positive outlook for the next six months, Judo has revised its guidance for the 2026 financial year upwards, now projecting between $14.4 billion and $14.7 billion, an increase from the previous range of $14.2 billion to $14.7 billion.
Net interest margin, a key profitability metric, remained stable at 3.03 per cent. The bank anticipates this margin will improve to 3.15 per cent in the next six months, an increase from its earlier guidance of 3.10 per cent. Ahead of the half-year accounts, analysts had anticipated strong results from Judo.
Macquarie analysts gave Judo an “outperform” rating prior to the results. Among the seven most prominent banks in Australia, only National Australia Bank, another business-focused lender, received an “outperform” rating. Westpac, Bendigo, and Commonwealth Bank of Australia were rated “underperform,” while Bank of Queensland and Australia and New Zealand Banking Group received a “neutral” rating.
