Judo Bank loan book reaches $10bn

The bank said that the $10 billion milestone is indicative of a 135 per cent increase in growth per annum since it received its banking licence from the Australian Prudential Regulation Authority (APRA).

Prior to the bank’s milestone, there was speculation that larger banks, including Bendigo Bank and Macquarie Bank, may be looking to acquire the SME lender following the approval of the ANZ-Suncorp merger in February this year.

Speaking with The Adviser, George Obeid, chief third party officer at Judo Bank, denied the rumour, stating: “Judo is not looking for a buyer.”

He said that the SME bank would instead continue to focus on the growth of its business, now that it has more than 135 bankers onboarded at Judo.

He commented: “We will continue to be very focused on the growth of our business. This is a great milestone that we’re looking to celebrate and our focus will be on the growth of our business going forward.”

Obeid said that brokers had been “pivotal” to the bank’s success since “day one”.

He continued that the bank’s “rigorous accreditation process” has enabled it to onboard experienced broker partners and “the right commercial acumen” to allow its team to identify the customers that align with its business.

Speaking on what Judo Bank has in store for brokers this year, Obeid said: “We will continue to broaden our reach into the market with our 18 locations that will ultimately enable brokers access to Judo, to support much-needed lending in the SME community.”

Judo Bank’s chief executive Chris Bayliss said that the bank had taken a judgement-based approach to SME lending while other banks “continue to restrict lending to good-quality SMEs”.

He continued: “We are dedicated to serving the needs of SMEs, who are vitally important to the continued growth of the Australian economy, yet remain underserved by the rest of the industry.”

According to the CEO, the bank’s term deposit balance has now reached $7.5 billion.

Commenting on the success of Judo Bank, Bayliss said: “The growth we have achieved since becoming an ADI is exceptional. We cannot find another bank that has achieved what we have achieved, starting from scratch, anywhere else in the world.”

The announcement came as Judo Bank’s financial results revealed it has been actively reducing its property investment exposure as a means of balancing its risk appetite.

[Related: SME bank pulls back from commercial property exposure]