Australia's Judo Bank Reports FY2025 Net Profit of A$86.4 Million as Loan Book Grows to A$12.5 Billion

Judo Capital Holdings, the parent company of Australian challenger bank Judo Bank, reported statutory net profit after tax of $86.4 million for the financial year ended 30 June 2025, a 24% increase on the prior corresponding period.

The bank's loan book grew 16% over the financial year to reach $12.5 billion. The Reserve Bank of Australia began lowering interest rates in February 2025. Underlying profit before tax came in at $125.6 million, a 14% year-on-year improvement.

REVENUE AND MARGINS

Revenue of AU$347.4 million grew 6.4% year-on-year. Profit margins improved to 25% from 21% in the prior financial year.

Judo Bank was founded to serve Australian SMEs. The bank assigns each SME borrower a dedicated banker who is responsible for understanding the business in depth and structuring lending solutions accordingly. The bank argues that this approach generates better credit outcomes for both borrowers and the institution compared with algorithm-driven models that may overlook the nuances of individual business situations.

BACKGROUND AND OUTLOOK

Judo received its banking licence from the Australian Prudential Regulation Authority in 2019 and listed on the Australian Securities Exchange in 2021. The country's banking sector has historically been dominated by four major lenders.

For FY26, Judo guided to profit before tax of A$180-190 million and a loan book of A$14.2-14.7 billion.