Judo Reaffirms FY27 PBT Guidance of $210 to 220 Million

Judo Capital used its AGM addresses to give a first-quarter FY27 trading update and to reaffirm its full-year profit guidance, while flagging softer conditions among small and medium-sized business borrowers.

Gross loans and advances were almost $15.1 billion at 30 September 2026 and deposits increased to $12.5 billion. The pipeline of applications, approved and accepted loans was $1.9 billion in September with margins in the mid-4% range. The CEO says the bank is seeing caution from SMEs due to the economy, interest rate rises and Budget changes, beyond normal seasonality. Blended lending margins were 4.1% over 1-month BBSW in the quarter and front book margin was stable at 4.2%, while blended deposit margins were 73bps over 1-month BBSW. Net interest margin was consistent with full year guidance. 90+ days past due and impaired loans increased to 3.16% from 2.90% at June 2026, which Judo says remains below its through-the-cycle assumption. The CET1 ratio was 12.0% (June 2026: 12.4%). Judo says it remains on track for FY27 guidance of profit before tax of $210 to 220 million.

The addresses do not give a net interest margin figure for the quarter. Management says asset quality remains an area of close focus, and the chair acknowledged the share price decline that followed the earlier market update.