CEO Joseph Healy says its profit jumped 300 per cent from the previous half, putting in a good place to weather any downturn.
Judo Bank boss Joseph Healy says the neobank will meet its targets by picking up disgruntled customers from the big banks even as appetite for credit from small and medium enterprise businesses slows., after reporting a 23 per cent jump to $7.5 billion in the first half, ahead of expectations and lifting its shares 8 per cent in early trade.
SME credit growth is tipped to hit 3 per cent in 2023 depending on the speed with which inflation is brought under control, Judo said. Judo’s first-half profit was $53.2 million before tax, up from $12.6 million in the second half of 2022. Its underlying net interest margins expanded to 3.56 per cent from 2.84 per cent, as interest rates surged.Citi analyst Brendan Sproules said strong performance in term deposit spreads meant Judo beat expectations, but he flagged slowing demand for credit would hurt margins.
Mr Healy said the neobank’s focus on banker-to-customer ratios meant the small- and medium-enterprise-focused bank was prepared to weather any coming downturn. “We are now generating a significant profit, and we have achieved this outcome in our short five years – faster than any other new bank.”
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