Judo Capital Holdings Limited (ASX:JDO), known as Judo Bank, today presented at the 2026 Macquarie Australia Conference, outlining its robust performance and reaffirming its financial year 2026 guidance. Judo Bank is an Australian challenger bank that primarily serves small and medium-sized enterprises (SMEs) with lending solutions, complemented by a range of deposit products for individuals and businesses. Chief Executive Officer Chris Bayliss detailed strong Q3 lending growth, supported by high originations and improved attrition, which stood at 15% (annualised). The bank reported a resilient blended lending margin of 4.2% for the quarter, with new lending margins matching this figure. Additionally, Judo’s AAA pipeline stood at $2.2 billion as of March 2026, with an average margin of 4.3%.
The bank’s deposit franchise also demonstrated strong performance, with the launch of the Direct Online Savings Account (DOSA) in February 2026 and the Intermediated Savings Account (ISA) in October 2025 contributing to at-call savings product balances exceeding $1.1 billion. This strategy helped achieve a blended deposit cost of 74 basis points in Q3. Judo reported its Q3 Net Interest Margin (NIM) at approximately 3.15%, an increase from 3.03% in the first half of FY26, aligning with its second-half NIM guidance.
Regarding credit quality and capital, Judo observed a stable asset quality trend, with 90+ days past due and impaired assets at 2.65% in March 2026, slightly down from 2.66% in December 2025. The bank prudently increased its Expected Credit Loss (ECL) provision by adding an economic overlay for sectors sensitive to fuel prices and broader economic conditions, resulting in a collective provision of 94 basis points of Gross Loans and Advances (GLA). Despite this, Judo maintained a strong Common Equity Tier 1 (CET1) ratio of 12.6% in March 2026 and reaffirmed its FY26 guidance, expecting GLA between $14.4 billion and $14.7 billion, NIM at the upper end of 3.00% – 3.10%, and profit before tax in the lower end of $180 million – $190 million.
