Judo Bank posted a higher-than-expected profit for the first half of its 2026 fiscal year, driving a 9% rise in its shares on Tuesday.
The Australian challenger bank reported a statutory net profit after tax of A$152 million for the six months to December 31, up 18% from the same period a year earlier. Underlying profit, which excludes one-off items, increased 15% to A$148 million. Revenue rose 12% to A$421 million, supported by growth in lending and fee income.
Judo Bank’s chief executive, Joseph Healy, attributed the performance to strong demand for business lending and a continued focus on customer acquisition. The bank’s loan book expanded 11% year-over-year, with commercial lending driving most of the growth. Net interest margin remained stable at 2.10%, while operating expenses increased 9% due to investments in technology and compliance.
The lender’s shares closed 9.2% higher at A$3.85, outperforming the broader S&P/ASX 200 index, which was up 0.4% on the day. Analysts noted the results as a positive sign for Australia’s mid-tier banking sector, which has faced margin pressures amid rising funding costs.
Judo Bank, which specializes in business banking and specialist lending, has expanded its loan portfolio by 25% over the past two years. The bank plans to maintain its growth strategy while managing risk in a tightening credit environment.
