Half Year 2026 Judo Capital Holdings Ltd Earnings Call Transcript
Key Points
- Judo Capital Holdings Ltd (ASX:JDO) reported a strong financial performance with a profit before tax of $86.5 million, up 26% from the prior half.
- The company achieved a significant increase in earnings per share, up 46% year on year, demonstrating strong operating leverage.
- Judo Capital Holdings Ltd has successfully expanded its loan book to $13.4 billion, with diversified growth across regions and sectors.
- The company has maintained a sector-leading Net Promoter Score (NPS) for both lending and deposits, reflecting high customer satisfaction.
- Judo Capital Holdings Ltd has upgraded its net interest margin (NIM) guidance for the second half of FY26 to 3.15%, driven by improved funding costs.
- Attrition rates remain elevated, with the company experiencing a 25-30% attrition rate in the short term, above their long-term target of 20%.
- The cost-to-income ratio increased slightly by 60 basis points to 48.5% in the first half of FY26, although it remains below the prior corresponding period.
- The company faces challenges in maintaining its collective provision coverage, which has decreased due to strong lending growth and changes in the book mix.
- Judo Capital Holdings Ltd's return on equity (ROE) is currently at 6.9%, which is below the double-digit target they aim to achieve.
- The company is still reliant on term deposits as a primary source of funding, which could be impacted by competitive pressures in the market.
Good morning and welcome to the Judo Ba first half, 26 results webcast.
My name's Andrew Dempster, I'm the GM of strategy and investor relations at Judo.
I'd like to begin today by acknowledging the traditional owners of the land from which we all are joining today, and we're going to follow our usual format this morning.
Firstly, we're going to hear from CEO Chris Bayliss, who will give an overview of our performance.
Secondly
Our CFO Andrew Leslie will give an update on our detailed financial performance.
And then Chris will return to discuss the outlook and guidance
We'll then open up the lines for Q&A.
And also let you know that our documents have been lodged with the AX this morning.
The webcast is going to be recorded and will be available later today on our website.
On that note, I'll now hand to Chris.
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