The Judo Capital Holdings Ltd (ASX: JDO) share price is taking off today.
Shares in the S&P/ASX 200 Index (ASX: XJO) challenger bank stock closed yesterday trading for $1.85. In earlier trade, shares leapt to $2.07 each, up 11.9%. After some likely profit-taking, in later morning trade on Tuesday, shares are swapping hands for $2.01 apiece, up 8.7%.
For some context, the ASX 200 is up 0.3% at this same time.
Here’s what’s piquing investor interest today.
Judo share price leaps on profit and earnings growth
Before market open this morning, the ASX 200 bank released its half-year results, covering the six months to 31 December (H1 FY 2026).
And investors are sending the Judo share price soaring after the company reported a 46% year-on-year increase in earnings per share (EPS) to 5.4 cents per share.
In other strong growth metrics, Judo reported a 15% year-on-year increase in gross loans and advances (GLA) to $13.4 billion. GLA were up 7% from H2 FY 2025.
And the bank reported a net interest margin (NIM) for the half of 3.03%, broadly in line with the prior half and up 0.22% from last year. Pleasingly, management upgraded their guidance for the second half-year NIM to approximately 3.15%.
And the Judo share price certainly looks to be catching some added tailwinds with the bank achieving a statutory net profit after tax (NPAT) of $59.9 million, up 46% from H1 FY 2025. Profit before tax (PBT) of $86.5 million was up 53%.
Management credited the strong profit result to continued scaling of the loan book, a stable NIM, and a lower cost of risk.
Looking ahead, the ASX 200 bank reaffirmed its full-year FY 2026 guidance of PBT in the range of $180 million to $190 million, indicating an even stronger second half to come.
What did management say?
Commenting on the results sending the Judo share price soaring today, CEO Chris Bayliss said:
Today’s result demonstrates that Judo continues to successfully execute against its clear and simple strategy. We are on track to achieving our existing FY26 guidance for significant profit growth and realising the operating leverage inherent in our business model.
As for the big boost in loans, Bayliss added:
A strong SME lending franchise, combined with our ability to stay nimble in a competitive market, has seen our lending book continue to grow above system. This momentum is being further supported by emerging productivity gains and banker enablement initiatives as we continue to expand into regional and agribusiness lending.
The post Why is the Judo share price surging 12% on Tuesday? appeared first on The Motley Fool Australia.
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Motley Fool contributor Bernd Struben 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.