Judo Capital Holdings Limited · ASX:JDO
Judo Capital — FY2025 Earnings Presentation
35 slides from Judo Capital's earnings presentation, Aug 19, 2025
Slide 1: 2025 Full Year Result
Darwin NT Mackay QLD Rockhampton 2025 Full Year Result. WA Toowoomba Sunshine Coast Brisbane Gold Coast 19 August 2025 SA Northern Rivers NSW Tamworth Coffs Harbour Perth Dubbo Port Macquarie Riverland Newcastle Orange Parramatta Bunbury Adelaide Mildura Sydney Mt Gambier Canberra VIC Albury Bendigo
Slide 2: CEO Updates
CEO Updates. Chris Bayliss Chief Executive Officer & Managing Director 2 FY25 Result Presentation
Slide 3: Service profit chain
Service profit chain. Empowered employees and satisfied customers to drive ROE towards our at-scale target Lending NPS2 GLA growth JEDI Employee Engagement1 +53 FY24: +59 16% FY24: 20% ROE improvement 71 Deposit NPS3 Deposit growth 80bps FY24: 72 +67 FY24: +66 20% FY24: 38% FY24: (60bps) Targeting R
Slide 4: FY25 financial highlights
FY25 financial highlights. Operating leverage clearly emerging in 2H25 Metric Details FY25 Results FY25 guidance1 GLA 16% lending growth, ~2x sector growth2 $12.5bn $12.4bn - $12.6bn Tailwinds from lending, liquidity and wholesale funding Upper end of NIM 2.93% 2H25 NIM of 3.04%, up 23bps from 1H25
Slide 5: Scaling the bank, driven by our purpose
Scaling the bank, driven by our purpose. Technology re-platforming complete; Building blocks in place for continued growth FY22 FY23 FY24 FY25 15 locations 18 locations 21 locations 31 locations 115 relationship bankers 123 relationship bankers 144 relationship bankers 161 relationship bankers 1,000
Slide 6: Strong growth in core SME lending franchise
Strong growth in core SME lending franchise. Consistent, disciplined approach to scaling the loan book Quarterly GLAs ($bn) • Growth driven by Judo’s differentiated CVP and regional 12.5 expansion 11.3 11.6 11.7 10.7 9.8 8.9 9.4 9.7 • Blended lending margin stabilised in 2H25 (key driver of NIM) 8.0
Slide 7: Strong deposit franchise
Strong deposit franchise. New deposit products to improve funding diversification and price Deposit balance ($bn) 9.9 8.2 • Deposit balances now exceed $10bn1 6.0 4.1 • Brand awareness driving growth in direct channel 2.5 • Rollover rates increasing; price sensitivity reducing Jun-21 Jun-22 Jun-23 J
Slide 8: Stable credit quality
Stable credit quality. Relationship-led model working through all parts of the economic cycle 90+ DPD and Impaired Assets (% of GLA)1 2.34% 2.46% 2.43% 2.31% 2.30% • 90+DPD and Impaired Assets have remained stable, below at-scale thesis • Additions and resolutions are largely balanced • FY25 write-o
Slide 9: CFO Update
CFO Update. Andrew Leslie Chief Financial Officer 9 FY25 Result Presentation
Slide 10: FY25 result
FY25 result. Profit or Loss Statement ($m) FY25 FY24 Change Income 422.9 396.7 7% Operating Expenses (221.8) (216.5) 2% Profit Before Impairment 201.1 180.2 12% Impairment Expense (75.5) (70.1) 8% Profit Before Tax1 125.6 110.1 14% Non-recurring Costs2 - (5.8) n.m. Statutory Profit Before Tax 125.6
Slide 11: NIM – 2H25 vs 1H25
NIM – 2H25 vs 1H25. Tailwinds from lending, liquidity and wholesale funding 1H25 to 2H25 NIM movement (%) 0.09% 3.04% 0.10% (0.01%) 0.06% 2.81% (0.01%) Improved Treasury Falling RBA Elevated Improved lending portfolio cash rate deposit funding mix margins and optimisation largely offset margins and
Slide 12: FY26 NIM drivers
FY26 NIM drivers. NIM improvements in 2H26 FY26 NIM 3.00% - 3.10% 3.3 3.1 Exit NIM: 2.93% 2.9 Key drivers Key drivers 2.7 1H26 NIM expected to be modestly 2H26 NIM expected to benefit from 2.5 lower than 2H25 due to current improved funding costs and mix 3.04% market conditions for deposit and ~3.0%
Slide 13: Term deposit margins remain volatile
Term deposit margins remain volatile. Disconnect between headline pricing and swap rates driving TD margin volatility Judo’s indicative hedged 1-year TD rate (daily)1,2 1.5% FY26 • Judo’s TD margins are a function of headline rates 1.3% and swap rates 1.1% • Headline TD rates have fallen; the swap c
Slide 14: Continued progress to at-scale funding stack
Continued progress to at-scale funding stack. Direct TD franchise continues to mature; wholesale funding optimisation ongoing Judo’s funding stack (%) • TDs increased to 68% of total funding, as Judo dynamically 12% 11% 11% ~10% balanced funding requirements with market pricing ~15% • Direct retail
Slide 15: Operating expenses
Operating expenses. FY25 CTI improvement reflecting operating leverage Underlying operating expenses ($m) and CTI (%)1 • Modest increase in employee costs 54.6% 52.4% 50.0% – Continued recruitment of relationship bankers 250.0 216.5 221.8 30.0% – Enabling function areas reaching maturity 200.0 46.7
Slide 16: Impairment expense and provisioning
Impairment expense and provisioning. Impairment expense ($m) Prudent provisioning ($m) 74bps 72bps 1.00% 1.05% 0.95% 1.50% 66bps 250 83 70 1.00% 200 185.8 0.50% 73 50 6.0 0.00% 149.1 63 150 107.5 4.2 -0.50% 30 53 112.0 -1.00% 100 5.0 43 10 108.8 -1.50% 75.5 70.1 83.7 -2.00% 33 -10 50 54.6 67.8 -2.50
Slide 17: Capital
Capital. Judo remains well capitalised 1H25 to 2H25 CET1 movement (%) • Strong Jun-25 CET1 ratio at 13.1% 13.8% (0.9%) 0.4% (0.1%) 13.1% (0.1%) (0.0%) • Improving profitability continues to support organic capital generation • No plans to issue additional core equity to achieve target at-scale loan
Slide 18: Conclusion and Outlook
Conclusion and Outlook. Chris Bayliss Chief Executive Officer & Managing Director 18 FY25 Result Presentation
Slide 19: Judo strategy
Judo strategy. Our vision To be a world class SME business bank Become a Achieve sector Sector leading The pre-eminent Preferred partner true scale leading customer NPS employer for for commercial Our challenger bank profitability SME bankers brokers aspiration Strategic ENHANCE OUR GROW OUR TAM OPT
Slide 20: Conditions for SMEs are improving
Conditions for SMEs are improving. Annual growth in non-financial business credit (%)1 • Demand for credit remains robust 15 • Business confidence has improved, although some sectors still face pressure • Lower rates may boost business and consumer 10 spending Long term average 6% • Some uncertainty
Slide 21: FY26 strategic focus
FY26 strategic focus. Continuing to execute our multi-year strategy, leveraging established foundations Operating landscape Recent investments providing scale and optionality to grow Scale & strengthen lending Optimise funding, capital & ROE • RBA easing cycle • Enabling stronger, faster, smarter CV
Slide 22: Optimising technology foundations
Optimising technology foundations. Focusing on banker enablement to deliver Judo’s unique CVP Judgement Speed Relationships ‘Smarter’ ‘Faster’ ‘Stronger’ • Streamline annual review and • Rebuild loan modification and • Equip bankers with data and renewals process margin change process insights to tr
Slide 23: Operating leverage trajectory to continue
Operating leverage trajectory to continue. Progress to at-scale ROE at low-to-mid teens PBT1 ($m) $180m - $190m • Clear evidence of operating leverage as Judo continues to scale • Strong top-line growth to continue, driven by growth in 126 110 lending and other operating income 108 • FY26 opex incre
Slide 24: FY26 guidance
FY26 guidance. Momentum in operating leverage to continue Metric Detail FY26 Target Metrics at-scale Strong lending growth to continue, supported by investments in GLA growth, productivity and ongoing penetration into regional and $14.2bn – $14.7bn $15bn – $20bn agribusiness lending FY26 NIM expecte
Slide 25: Conclusion
Conclusion. • Delivered solid financial results and made significant progress on strategic priorities in FY25 • FY26 focus on optimising, demonstrating operating leverage, and progressing towards at-scale ROE • Multiple opportunities to drive lending growth and other operating income • Exploring opt
Slide 26: Questions
Questions. 26 FY25 Result Presentation
Slide 27: Appendix
Appendix. 27 FY25 Result Presentation
Slide 28: Loan book characteristics
Loan book characteristics. Judo’s loan book over time ($bn) 12.5 6% 11.6 10.7 9.7 38% 8.9 7.5 6.1 4.8 94% 62% 3.5 2.6 1.8 Floating Fixed Interest Only Principal & Interest Jun-20 Dec-20 Jun-21 Dec-21 Jun-22 Dec-22 Jun-23 Dec-23 Jun-24 Dec-24 Jun-25 Business loans Equipment loans Home loans Line of c
Slide 29: Spreads between headline rates and swap rates
Spreads between headline rates and swap rates. Swap curve movements have been the primary driver of volatility in hedged TD margins Spread from 1-year TD to 1-year swap rate1,2 (%) 1.5 1 0.5 0 -0.5 Sep-20 qtr spreads June-23 qtr spreads Dec-24 qtr spreads Jun-25 qtr spreads Majors: 64bps Majors: 28b
Slide 30: Deposit margins – illustrative examples
Deposit margins – illustrative examples. Spot 1-year hedged TD margins1 (%) Judo’s hedged TD margin reflects the headline TD rate, less the 1-year swap rate, plus the basis swap cost to 1-month 1 Jul 24 31 Dec 24 30 Jun 25 14 Aug 25 • Deposits are swapped to 1- Judo’s 1-year headline rate 5.25% 5.00
Slide 31: Credit quality key metrics
Credit quality key metrics. Customer groups Gross Loans and % of Gross Loans and % of Fully / Partially % 90+DPD and 90+DPD and Sectors Advances ($M) Advances Secured Impaired2 Impaired2 Dec-24 Jun-25 Dec-24 Jun-25 Dec-24 Jun-25 Dec-24 Jun-25 Dec-24 Jun-25 Rental, hiring and real estate services 2,8
Slide 32: Key asset quality ratios over time
Key asset quality ratios over time. Non-performing loans / GLA (%)1 3.41% 0.01% 3.18% 2.93% 0.04% 2.85% 2.90% 0.01% 2.72% 0.94% 0.35% 0.02% 0.71% 0.51% 0.60% 0.39% 0.97% 1.31% 1.21% 1.31% 1.23% 1.48% 90+ DPD and impaired assets 1.60% 1.10% 1.03% 1.07% 1.15% 0.95% Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 J
Slide 33: Judo’s hedging profile
Judo’s hedging profile. Lower interest rate risk through hedging. Reduced NIM volatility with ITOC As at 30 June 2025, Judo had an ITOC tenor of 3 years with $1bn of capital hedged (total equity of $1.7bn) Judo’s hedging profile as at Jun-25 ($m) Judo’s ITOC portfolio (%) AUD $m 15,000 4.6% 4.4% 10,
Slide 34: Glossary
Glossary. $ Dollar amounts, in Australian dollars unless stated otherwise NII Net interest income AAA pipeline Loans in application, approved and accepted status, but not yet settled NIM Net interest income (NII) / average month-end closing balance of interest-earning assets APRA Australian Prudenti
Slide 35: Important information
Important information. This presentation is provided by Judo Capital Holdings Limited ABN 71 612 862 727 and its controlled entities (variously, "Judo", “us”, “we” or “our”) and is current at 19 August 2025. It is information given in summary form only and does not purport to be complete. It does no