Australia's Judo Holdings slips on cautious FY24 outlook

Judo Capital Holdings

24/08/2023 03:25

** Shares of Judo Capital Holdings Ltd  JDO.AX  down as much
as 15.8% to A$1.1, their lowest since June 27
    ** The banking products and services co posts FY pretax
profit of A$107.5 mln ($69.57 mln)
    ** A well-executed result, in our view, but attention will
be entirely focused on FY24 - Citi
    ** Brokerage says exceptionally strong lending growth often
sparks future asset quality fears for investors; flags
weaker-than-expected outlook
    ** The Australian economy remains resilient, however, there
are some ongoing risks from the impact of high interest rates
and inflation, with some sectors likely to be more impacted than
others - Judo 
    ** "Disclosures today reveal that Judo expects a
unquantified, but seemingly material NIM reduction in FY24, as
it raises funds to repay the facility in June 2024. This is
likely to lead to consensus earnings downgrades in FY24," Citi
says
    ** JDO stock down 4.5% this year, as of last close 
    
    ($1 = 1.5451 Australian dollars)

 (Reporting by Aishwarya Nair in Bengaluru)
 ((Aishwarya.Nair@thomsonreuters.com; +91-9167838937 Twitter: https://twitter.com/Aishwaryartrs
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