Judo Capital Holdings Limited (ASX:JDO) has reaffirmed its financial guidance for the 2026 fiscal year, maintaining its profit before tax target of between A$180 million and A$190 million despite ongoing economic uncertainties. The Australian-based specialist lender provided this update on April 24, 2026, detailing its performance through the third quarter of the fiscal year while emphasizing continued focus on supporting its customer base.
The company reported strong financial performance in the third quarter of 2026, with lending growth, stable asset quality and disciplined cost management contributing to its results. Gross loans and advances reached A$13.8 billion as of March 31, 2026, driven by high levels of loan originations and lower customer attrition rates. This growth in lending activity has been a key factor in the company’s ability to maintain its financial trajectory.
Judo Capital’s net interest margin showed improvement during the reporting period, increasing to approximately 3.15% in the third quarter of 2026 from 3.03% recorded in the first half of the fiscal year. This figure aligns with the company’s existing guidance for the second half of 2026, reflecting effective management of its interest-earning assets and funding costs.
The specialist lender has continued to expand its at-call savings offerings, with the combined balance of its two recent at-call savings products now exceeding A$1.1 billion. Total customer deposits grew to A$11.5 billion by the end of March 2026, demonstrating sustained momentum in its retail funding strategy. This growth in deposits supports the company’s lending activities and provides a stable foundation for its balance sheet.
Operating expenses have remained well-controlled throughout the period, with the company maintaining disciplined cost management practices. Judo Capital also reported maintaining a strong capital position, with its Common Equity Tier 1 (CET1) capital ratio standing at 12.6% as of March 31, 2026. This capital ratio exceeds regulatory minimums and provides a buffer against potential economic headwinds.
Asset quality trends have remained stable, with the company reporting consistent levels of 90-days-past-due and impaired loans. In response to prevailing economic conditions, Judo Capital has increased its collective provisions to address potential future credit losses. The company has set its cost of risk guidance for the 2026 fiscal year at 70-75 basis points, reflecting a prudent approach to provisioning amid economic uncertainty.
The reaffirmation of the A$180 million to A$190 million profit before tax guidance indicates the company’s confidence in its ability to navigate the current economic environment while delivering sustainable financial performance. This guidance range incorporates the impact of the increased collective provisions, which were implemented as a precautionary measure against potential deterioration in asset quality.
Judo Capital’s update comes as the company continues to operate within the competitive Australian financial services landscape, focusing on its specialist lending model that serves specific customer segments. The company’s approach emphasizes relationship-based lending and tailored financial solutions for its target market.
The company’s financial update provides transparency into its performance metrics and strategic direction for the remainder of the 2026 fiscal year. Stakeholders can assess the company’s progress against its stated objectives and evaluate its positioning for future periods based on the disclosed financial metrics and strategic initiatives.
As Judo Capital progresses through the remainder of its 2026 fiscal year, the company will continue to monitor economic indicators and adjust its strategies as necessary to maintain financial stability and support its customer base. The reaffirmed guidance suggests confidence in the company’s underlying business model and its ability to execute its strategic plan.
The company’s next major financial update is expected to coincide with the release of its full-year 2026 financial results, which will provide a comprehensive overview of its performance for the entire fiscal year. Investors and analysts will be watching for confirmation of whether the company achieves its profit before tax guidance range and how it manages the balance between growth, risk management, and profitability.
For ongoing updates on Judo Capital’s financial performance and strategic developments, stakeholders are encouraged to monitor the company’s official announcements through the Australian Securities Exchange (ASX) platform and its investor relations channels.
