Judo Capital Holdings Limited · ASX:JDO
Judo Capital — Investor Day (June 2025)
47 slides from Judo Capital's investor day presentation, Jun 3, 2025
Slide 1: ASX Announcement: Judo 2025 Investor Day
ASX Announcement. 3 June 2025 Judo 2025 Investor Day Judo Capital Holdings Limited (ASX:JDO) (“Judo Bank”, “Judo” or “bank”) is today holding an investor day in Sydney. The investor presentation follows this announcement. CEO Chris Bayliss said he welcomed the opportunity to provide an update on Jud
Slide 2: Boldly backing business. Investor Day 2025
Darwin NT Boldly backing Mackay QLD Rockhampton business. WA Sunshine Coast Brisbane Gold Coast SA Northern Rivers NSW Tamworth Coffs Harbour Perth Dubbo Port Macquarie Newcastle Orange Parramatta Bunbury Adelaide Mildura Sydney Mt Gambier Canberra VIC Albury Bendigo Shepparton Ballarat Melbourne Ge
Slide 3: Agenda
Agenda. 9.00-9.05 Welcome Yien Hong, Chief Legal and Commercial Officer 9.05-9.20 Judo’s strategy and customer value proposition Chris Bayliss, Chief Executive Officer 9.20-9.35 TAM and growth opportunities Frank Versace, Chief Strategy and Growth Officer 9.35-9.50 Employee value proposition Jess La
Slide 4: Chris Bayliss
Chris Bayliss Chief Executive Officer 3 2025 Investor Day
Slide 5: FY25 guidance
FY25 guidance. Unchanged from 1 May trading update Metric Detail FY25 Target Strong lending growth to continue, supported by investments in new regions GLA and segments. $12.4bn - $12.6bn Spot GLA1: $12.0bn; Spot AAA Pipeline: $1.9bn Gradual improvement of NIM in 2H25 NIM • 2H25 NIM at upper end of
Slide 6: A bank free of legacy. Our vision of building a world-class SME business bank
A bank free of legacy. world-class Our SME vision ofbank. business building a world-class SME business bank Judo’s superior economics are only possible starting with a blank piece of paper: • No legacy products • No legacy sales culture • No legacy bricks and mortar • No legacy technology and proces
Slide 7: Judo's proven, sustainable, competitive advantage
Judo’s proven, sustainable, competitive advantage. CVP purposely defined for SMEs What SMEs value1 Service 40% Product 22% Judgement Speed Relationship-led ‘Smarter’ ‘Faster’ ‘Stronger’ Image & Reputation 19% • Judgement-based lending • Quality decisions at speed • Long-lasting relationship with exp
Slide 8: The Judo Journey
The Judo Journey. Loan book ($bn) Term deposits ($bn) 11.6 10.7 8.9 9.0 8.2 6.1 6.0 4.1 3.5 2.5 June-21 Jun-22 Jun-23 Jun-24 Dec-24 June-21 Jun-22 Jun-23 Jun-24 Dec-24 Intermediated middle markets term deposits Intermediated SMSF/retail term deposits Business loans Equipment loans Home loans Line of
Slide 9: Judo strategy on a page
Judo strategy on a page. Our Vision To be a world class SME business bank Become a Achieve sector Sector leading, The pre-eminent Preferred partner true scale leading through the cycle employer for for commercial Our challenger bank profitability customer NPS SME bankers brokers Aspiration Strategic
Slide 10: A bank run by experienced bankers
A bank run by experienced bankers. Chris Bayliss Andrew Leslie Renée Roberts Frank Versace Razz Fornarino Jess Lantieri Yien Hong Chief Executive Officer Chief Financial Officer Chief Risk Officer Chief Strategy and Chief Operating Officer Chief People and Chief Legal and Growth Officer Culture Offi
Slide 11: Frank Versace
Frank Versace Chief Strategy & Growth Officer 10 2025 Investor Day
Slide 12: Computer says no, judgement says yes
Computer says no, judgement says yes. Probability-based modelling has created a gap for Judo’s judgement-based lending Judo’s strategic positioning in SME lending High Centralised credit assessment probability of default models cumben t banks f the in ion o Private osit p lenders l ca ori Hist Type
Slide 13: Our TAM has continued to expand
Our TAM has continued to expand. A bigger market creates greater opportunity to achieve growth at the desired economics SME TAM has grown, entering higher ROE segments SME Total Addressable Market • Strong system growth with business credit growth surging post COVID-19 Increased credit demand from S
Slide 14: Lending growth opportunities
Lending growth opportunities. Unlocking growth through further TAM penetration In-flight initiatives Expanding SME product offerings • Continued expansion and penetration of new regions and Enhance core locations 6% 7% business • Increased flexibility and features of existing products to 6% further
Slide 15: Expanding deposit product offerings
Expanding deposit product offerings. Significant opportunity to double Judo’s deposit TAM Estimated deposit TAM1 • Doubling estimated deposit TAM • Two new products to be offered − Business Online Savings Accounts – high rate, no account conditions $1.2tn $1.0tn − High Interest Online Savings Accoun
Slide 16: Strategic partnerships with commercial brokers
Strategic partnerships with commercial brokers. Lack of legacy distribution means we do not suffer from channel conflict Judo only accredits brokers that truly understand Broker market dynamics1 Judo’s tripartite relationship commercial lending 7% • Judo only accredits the top 7% of brokers in Austr
Slide 17: Jess Lantieri
Jess Lantieri Chief People and Culture Officer 16 2025 Investor Day
Slide 18: Culture is fundamental to Judo's success
Culture is fundamental to Judo’s success. An award-winning place to work 17 2025 Investor Day 17
Slide 19: The leading destination for SME business bankers
The leading destination for SME business bankers. Empowering bankers to support SME customers Employing great bankers is fundamental to Judo’s Bankers and analysts business model 159 Metro Agri / regional 144 • Alignment with Judo’s culture 115 123 13 21 2 7 • Focus on credit capability 87 57 64 138
Slide 20: Highly engaged workforce, low attrition rate
Highly engaged workforce, low attrition rate. High engagement correlates to performance and low attrition JEDI Employee Engagement1 • High levels of engagement among Judo’s business bankers • Industry-first weekly measurement of engagement (JEDI) 85 • Voluntary attrition rate remains stable and low
Slide 21: Panel discussion
Panel discussion Moderator: George Obeid, Chief Third Party Officer 20 2025 Investor Day
Slide 22: Morning tea break
Morning tea break. 2025 Investor Day 21
Slide 23: Renée Roberts
Renée Roberts Chief Risk Officer 22 2025 Investor Day
Slide 24: A banking licence is a privilege and a responsibility
A banking licence is a privilege and a responsibility. Judo’s Risk Management Framework Regulators Balance sheet & APRA Credit risk liquidity risk RBA Tech, data and Strategic risk cyber risk ASIC Operational risk Compliance and AUSTRAC regulatory risk ASX ESG risk Reputation risk OAIC 23 2025 Inves
Slide 25: Strategic approach to credit risk (not sales!)
Strategic approach to credit risk (not sales!). A framework built from a blank sheet of paper that cannot be replicated Judgement-based approach to Specialisation in SME banking transactional level credit decisions Portfolio management and Experienced, empowered concentration limits business bankers
Slide 26: Bottom-up & top-down approach to managing risk
Bottom-up & top-down approach to managing risk. Confidence in our at-scale through-the-cycle COR assumption of 50bps Judo’s business model works through all parts of the cycle Proactive Strong asset 4Cs approach to Low ratio of management of management credit assessment customers to bankers existing
Slide 27: Razz Fornarino
Razz Fornarino Chief Operating Officer 26 2025 Investor Day
Slide 28: Judo is ready to optimise
Judo is ready to optimise. The tactical Build and Scale phases are now behind us Completed Build Scale Optimise Organisational priorities: Organisational priorities: Organisational priorities: Prove the market Scale operations • Invest in smarter, faster, stronger opportunity exists Increase reliabi
Slide 29: Judo's investment in core systems is complete
Judo's investment in core systems is complete. Successful migration from sub-scale, tactical platforms to best in-class, strategic solutions Platform Platform Completion Benefits Profile of technology investment spend ($m) Lending & Streamlining the origination deposit nCino Apr-23 process for custo
Slide 30: Judo's purpose-built technology platform
Judo’s purpose-built technology platform. A modern, cloud based, flexible technology stack for a full-scale bank Judo’s modern technology platform Complex, legacy IT systems Backbase Customer digital services Moody’s nCino Credit risk Origination engine platform Thought Machine Core lending and depo
Slide 31: Our near-term priorities
Our near-term priorities. Focus on banker enablement by optimising our technology investments • Digitise documents via a customer portal • Rebuild loan modification and • Build API's across all external sources into margin change process Judo’s CRM / Origination Platform Creating • Streamline annual
Slide 32: AI for Judo
AI for Judo. Targeted approach to enhance judgement-based lending Competitive advantage Opportunity areas Examples of AI solution in consideration Pilot AI use cases that enhance Pre-visit Manual data collection • Use AI to automate online data Judo’s relationship-led reports and analysis hindering
Slide 33: Andrew Leslie
Andrew Leslie Chief Financial Officer 32 2025 Investor Day
Slide 34: Strong pathway to at-scale NIM of >3%
Strong pathway to at-scale NIM of >3%. Multiple tailwinds supporting NIM expansion over the medium term NIM drivers Medium-term drivers At-scale assumptions Core lending margins benefiting from new lending in the mid-4s % Lending margin ~mid 4%s over Lending 1m BBSW Warehouse lending margin ~4%, hig
Slide 35: Focus on portfolio economics
Focus on portfolio economics. Blended lending margin improvement reflects disciplined pricing for risk • Disciplined approach to pricing, reflecting risk Lending portfolio by margin over BBSW (Jun-23 vs May-25) and funding costs • Blended margins reflect the average of the portfolio, with spreads be
Slide 36: Continued evolution of the funding stack
Continued evolution of the funding stack. Progressing towards at-scale funding stack through enhanced capability and flexibility Judo’s funding stack Strengthening and expanding Judo’s deposit franchise 11% 11% 11% ~10% ~10% 18% ~20% ~15% • Strong, growing term deposit franchise, at ~$9.6bn (May-25)
Slide 37: Cost trajectory supports operating leverage
Cost trajectory supports operating leverage. CTI improvement driven by strong revenue growth and prudent cost management Core build costs are largely behind us Operating expenses1 • Non-customer facing areas reaching maturity FY25 • Core technology capex investments largely completed 105.8 110.7 115
Slide 38: Multiple levers to deliver operating leverage
Multiple levers to deliver operating leverage. Operating leverage levers Market Other Cost TAM NIM share revenue growth • Expanded TAM • Unique CVP • Disciplined pricing • Warehouse lending • Simple business for risk model • System growth • Differentiated broker • Partner with Private proposition •
Slide 39: Operating leverage clearly emerging
Operating leverage clearly emerging. Progress to at-scale ROE at low-to-mid teens PBT1 ($m) FY25 guidance FY26 guidance • Noting the operating environment remains volatile, Judo continues to target FY25 PBT growth of 15% vs FY241 FY25 guidance 108 110 FY26 guidance 59 • Assuming stable economic cond
Slide 40: Chris Bayliss
Chris Bayliss Chief Executive Officer 39 2025 Investor Day
Slide 41: Service profit chain
Service profit chain. Empowered employees deliver positive customer outcomes and drive return on equity Engaged Satisfied Growth ROE employees customers of the bank low-to-mid teens The leading Sector leading, Become a Achieve sector employer for SME through the cycle true scale leading profitabilit
Slide 42: Clear pathway to sector leading returns
Clear pathway to sector leading returns. Targeting ROE in the low-to-mid teens at scale Lending $15 - $20bn • More than 4 times system growth since IPO, now 1.5% of total addressable market1 portfolio • Successful expansion into the agribusiness and regional segment • Expanding the TAM with new prod
Slide 43: Conclusion
Conclusion. • Judo’s superior economics are only possible starting with a blank piece of paper • We have a clear, sustainable, competitive advantage • The execution risk associated with building the bank is largely behind us. We are focused on optimising the bank • Judo is the leading destination fo
Slide 44: Q&A Session
Q&A Session. 2025 Investor Day 43
Slide 45: Glossary
Glossary. $ Dollar amounts, in Australian dollars unless stated otherwise NCDs Negotiable certificates of deposit AAA pipeline Loans in application, approved and accepted status, but not yet settled NII Net interest income ADI Authorised deposit-taking institution NIM Net interest income (NII) / ave
Slide 46: Thank you
Thank you. 2025 Investor Day 45
Slide 47: 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 3 June 2025. It is information given in summary form only and does not purport to be complete. It does not c