Judo Capital’s loan book tops $13.4bn in FY26 update

The Judo Capital Holdings Ltd (ASX: JDO) share price is in focus today after the bank reported its gross loans and advances hit approximately $13.4 billion as of 31 December 2025, showing continued growth during the first half of FY26.

What did Judo Capital report?

• Gross loans and advances (GLAs) reached ~$13.4 billion as at 31 December 2025
• Growth consistent with management’s expectations and guidance
• On track for FY26 GLA guidance of $14.2–$14.7 billion
• Profit before tax guidance for FY26 maintained at $180–$190 million (FY25: $125.6 million)
• Full half-year results (1H26) due 17 February 2026

What else do investors need to know?

Judo continues to focus its growth on relationship-based lending to small and medium-sized enterprises (SMEs), which has helped the bank maintain good business momentum and customer engagement. Management noted that monthly loan growth can vary, but the overall pace remains disciplined as Judo targets sustainable economic outcomes.

The update highlights Judo’s confidence in delivering significant operating leverage over the coming year. With the 1H26 results announcement set for mid-February, investors will be keen to see how growth and profitability targets are progressing, especially considering uncertain economic conditions.

What did Judo Capital Holdings management say?

Judo Capital CEO Chris Bayliss said:

We are pleased to have delivered strong loan growth in the first half of FY26, in line with our expectations. Our relationship-led value proposition continues to resonate with SME customers, and we are seeing good momentum across our business.

While our monthly growth can vary, we continue to manage our overall pace of lending growth while also achieving sustainable economics. We remain on track to achieve our existing FY26 GLA guidance of $14.2b to $14.7b.

Judo will demonstrate significant operating leverage in FY26, and we remain on track to achieve our existing guidance for Profit Before Tax of between $180m to $190m, up from $125.6m in FY25.

What’s next for Judo Capital?

Judo is aiming to achieve total loans and advances of $14.2–$14.7 billion in FY26 while also boosting profit before tax to up to $190 million. The bank says it is demonstrating operating leverage, suggesting improved efficiency as the business grows in size.

Investors can look forward to more detail when Judo releases its 1H26 results on 17 February 2026. The company’s progress on these milestones—and how it navigates the SME lending environment—will be key areas to watch in the coming months.

Judo Capital share price snapshot

Over the past 12 months, Judo Capital shares have declined 7%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

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The post Judo Capital’s loan book tops $13.4bn in FY26 update appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.