Judo Bank posted a 34% year-on-year increase in net profit for the fiscal year ending June 2026, driven by margin expansion and cost reductions.
The Australian challenger bank reported net profit of A$340 million, up from A$254 million in FY25, according to preliminary financial results released on Tuesday. Net interest margins widened to 3.10% from 2.85% a year earlier, reflecting improved asset pricing and a shift in the loan mix.
Total operating expenses fell 5% to A$720 million, supported by efficiency gains in technology and administrative functions. The bank’s cost-to-income ratio improved to 58% from 65% in FY25, signaling stronger operational leverage.
Judo Bank’s asset base grew 8% to A$32.5 billion, with loans and advances increasing to A$24.8 billion. The lender attributed the growth to sustained demand in commercial lending and residential mortgages, particularly in the SME segment.
The results underscore Judo Bank’s progress in scaling its operations while maintaining discipline on costs. The bank has not yet provided detailed guidance for FY27 but noted that macroeconomic conditions remain supportive of its core lending activities.
Shares in Judo Bank were not actively traded at the time of the announcement, as the company is privately held.
