Full Year 2024 Judo Capital Holdings Ltd Earnings Call Transcript
Key Points
- Judo Capital Holdings Ltd (ASX:JDO) reported strong lending growth, with the loan book exceeding $10 billion.
- The company successfully repaid the term funding facility, which has been a significant tailwind for profitability and capital.
- Judo Capital Holdings Ltd (ASX:JDO) achieved a net interest margin (NIM) at the top end of their guidance, with an exit NIM of 3% expected by June 2025.
- The company continued its regional expansion, opening four new locations and adding 21 bankers during the year.
- Judo Capital Holdings Ltd (ASX:JDO) maintained a strong capital position with a CET1 ratio of 14.7% and plans to optimize its capital stack further.
- The cost of risk was at the top end of expectations, with an impairment expense of $70 million.
- The 90 days past due and impaired ratio increased to 2.31% of GLAs, reflecting some asset quality challenges.
- Operating expenses grew by 13% due to higher employee, IT, and amortization costs.
- The company faces increased competition from major banks and private credit firms in specific segments of the SME lending market.
- Judo Capital Holdings Ltd (ASX:JDO) has a high reliance on broker-introduced loans, which could impact profitability if broker commissions increase.
Good morning, and welcome to the Judo Bank results briefing for the full year ended 30 of June 2024. My name is Andrew Dempster, I'm the General Manager of Investor Relations for Judo. I'd like to begin by acknowledging the traditional owners of the land that we are meeting on today and pay my request to elders past and present. Our result material was lodged with the ASX this morning and the material is also available on the Investors section of the Judo website.
We're very pleased to be joining you today for our first result video webcast. For today's agenda, we'll first hear from our CEO, Chris Bayliss, who will run, who'll provide an update on our performance and strategy; our CFO, Andrew Leslie, will then discuss our financials in detail. And after, and then, Chris will return to discuss the operating environment, as well as the outlook. After the formal presentation, there will be time for Q&A.
On that note, I'll hand over to Chris.
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