Judo Bank (JDO) $2.10

JDO +8.53%: Impressed on a solid 1^st half result, delivering in-line net interest margins (NIM) for the period and maintaining guidance for FY25.

• 1H25 profit-before-tax of $56.7m, ~9% ahead of consensus estimates
• Gross loans & advances to customers $11.65bn, +20% y/y

1H25 NIM of 2.81% was largely in-line with market expectations of 2.82-2.84%. JDO has maintained guidance for a gradual improvement in the second half, although has firmed to be at the ‘upper end’ of the existing 2.80-2.90% range.

The shares had run hard into the result, so the positive move up was significant, we suspect there may be some pressure on the share price in the short-term. The quality of the loan book needs consideration, not to be compared to the big four. That being said, NIM has been the focus for banks broadly this reporting season, and JDO outperformed there.