Judo Capital's shares slump after lender cuts annual earnings outlook (updated)

Judo Capital Holdings

25/06/2026 02:20

Recasts paragraph 1, adds details from paragraph 2 onwards
June 25 (Reuters) - Australian lender Judo Capital Holdings JDO.AX lost nearly half its market value in early trade on Thursday after cutting its 2026 earnings forecast, citing an increase in specific provisions across several sectors.
By 0036 GMT, the lender had shed about A$796.1 million ($548.67 million) in market value, with its shares tumbling more than 45% to their lowest level in nearly 29 months.
    The company now expects profit before tax for 2026 to be between A$163 million and A$169 million ($112.42 million-$116.56 million), below the A$180 million to A$190 million seen previously.
Judo Capital expects its annual cost of risk at A$116 million-A$122 million, with 90-days-past-due and impaired loans at roughly 3% of gross loans as of June 30.
"Recent credit outcomes have been driven by a small number of customers, who we are actively working with," CEO Chris Bayliss said.
"These exposures have deteriorated subsequent to the customer-by-customer review undertaken in the third quarter and reflect recent, borrower-specific developments," Bayliss said, adding that the bank continues to see strong underlying business momentum.
Judo Capital expects its measure of its spare cash, or common equity tier 1 ratio (CET1), to be about 12.4% at June-end, slightly lower than 12.6% reported at March 31.
The company, however, raised its net interest margin forecasts to over 3.2% for the second half of 2026, higher than earlier outlook of 3.15%, supported by favourable term deposit costs.

($1 = 1.4510 Australian dollars)


 (Reporting by Nichiket Sunil and Shivangi Lahiri in Bengaluru; Editing by Subhranshu Sahu and Sherry Jacob-Phillips)
 ((Nichiket.Sunil@thomsonreuters.com;))