• Statutory net profit after tax (NPAT) up 70% to $40.9m
• Underlying profit before tax (PBT) up 33% to $56.7m
• Gross loans and advances (GLA) growth of 9% to $11.6bn, 2x sector growth

Judo Capital Holdings Limited (ASX:JDO) ('Judo Bank', 'Judo' or 'the bank') today reported strong financial and operating performance for the half year ended 31 December 2024. Statutory net profit after tax (NPAT) was $40.9m, up 70%, while underlying profit before tax (PBT) was up 33% to $56.7m, supported by continued scaling of the loan book, prudent cost management and a lower cost of risk. Gross loans and advances (GLA) grew 9% to $11.6bn, reflecting 2x sector growth. Net interest margin (NIM) was 2.81%, in-line with guidance, with 2H25 and FY25 NIM guidance upgraded to the top end of the previously provided ranges. Credit quality metrics remained stable, with 90+ day arrears and impaired loans at 2.30% of GLA. The bank's Common Equity Tier 1 (CET1) ratio was a strong 13.8%, supported by increasing profit growth. Judo reconfirmed FY25 guidance of targeting 15% growth in PBT, with significant operating leverage expected to emerge in 2H25 and beyond. The bank's regional expansion strategy continues, with 15 additional relationship bankers joining since June, now totalling 159. Judo's award-winning term deposit franchise grew to $9bn, up 9%, as the bank progresses towards its at-scale target of 75% deposit funding.

Judo has provided FY25 guidance, with GLA expected to reach $12.7bn - $13.0bn (at-scale target of $15bn - $20bn), NIM to improve to the upper end of 2.90% - 3.00% in 2H25 and exit FY25 at >3% (at-scale target >3%), cost-to-income ratio to be broadly stable vs FY24, and cost of risk to be broadly stable vs FY24 at 50bps of GLA. The bank is targeting 15% growth in PBT vs FY24, with a low- to mid-teens ROE.

Business conditions are varied, with some sectors facing continued challenges. However, overall, businesses are adjusting to higher rates and credit demand is strong. SMEs may benefit from a fall in the RBA cash rate, through increased consumer cash flows and lower business funding costs. Judo is well positioned to continue supporting Australian SMEs, whilst scaling to become a world-class SME business bank which delivers a low-to-mid teens ROE.