• Strong 3Q26 financial performance with lending growth, stable asset quality, and disciplined cost management
• Increased collective provisions to address economic uncertainty, with FY26 cost of risk guidance of 70-75bps
• Reaffirmed FY26 profit before tax guidance of $180m-$190m, albeit towards the lower end

Judo Capital Holdings Limited (ASX:JDO) provided an update on its year-to-date trading performance, asset quality, and outlook for the remainder of FY26. The bank delivered strong financial performance in 3Q26 while maintaining its focus on supporting customers. Judo's lending growth, net interest margins, and operating expenses all remain on track to meet existing guidance, resulting in the bank reaffirming guidance for FY26 profit before tax of between $180m - $190m, inclusive of a top-up to its collective provision in response to current economic conditions. The bank's gross loans and advances (GLA) at 31 March was $13.8bn, supported by high levels of originations and lower attrition. Judo's Q3 net interest margin (NIM) was ~3.15%, up from 3.03% in 1H26, and in-line with existing 2H26 NIM guidance. The bank continued to build its at-call savings franchise, with the combined balance of the two new at-call savings products now exceeding $1.1bn. Total deposits increased to $11.5bn at 31 March. Operating expenses remained well-managed, and Judo maintained a strong capital position, with CET1 at 31 March of 12.6%. Judo's asset quality trends have remained stable, with 90-days-past-due and impaired loans at 2.65% of GLA as of 31 March. However, in light of ongoing geopolitical uncertainty and increased market volatility, the bank has increased its provision for expected credit losses, with a top-up of its economic overlay. As a result, Judo's collective provisions coverage will be 94bps of GLA as of 31 March 2026, and the bank's FY26 cost of risk is now expected to be between 70bps - 75bps of average GLA.

FY26 profit before tax of $180m - $190m

Judo expects to continue strong lending growth, with GLA of $14.4bn - $14.7bn, NIM at the upper end of 3.00% - 3.10%, and a cost-to-income ratio below 50%. The bank's at-scale cost of risk assumption remains unchanged at 50bps of average GLA.