ISCOVER
The SME lender has more than doubled its loan book in three years.
Healthy loan book growth helped Judo Bank generate bumper pre-tax profits for the full year ending 30 June 2025.
In its FY2025 financial results, the small and medium-sized enterprise (SME) lender reported 16 per cent year-on-year growth in its lending book to reach a $12.5 billion balance at the financial year’s end.
The result means Judo has more than doubled its loan book in just three years.
Business lending rose 17.3 per cent year on year to $9.6 billion, making up 77 per cent of the lending book, up from 76 per cent a year before.
Home loans grew 1.3 per cent over the year to $1.16 billion, making up 9 per cent share of gross loans and advances, down from an 11 per cent share in June 2024.
The bank was working with 1,563 brokers at year end, up from 1,352 in the previous financial year.
Judo attributed growth to its customer value proposition and regional expansion, which it said resonated well with regional SME customers.
The challenger bank added 10 new locations in FY25, taking the total number to 31 nationally.
Deposits jumped 20 per cent over the year to reach $9.9 billion, driven by robust growth in the direct channel.
Loan book growth helped drive Judo’s underlying profit before tax of $125.6 million, up 14 per cent on the previous year. Annual net profit after tax rose 24 per cent to $86.4 million, driven by growth in loans and deposits.
Speaking to The Adviser about the bank’s results, chief third-party officer, George Obeid, said: “I’m pleased that Judo Bank has achieved a solid result for the 2025 financial year. Our broker network is a key supporter to Judo achieving above system growth, with our third-party network consistently contributing circa 75 per cent of new lending.
“We continue to engage with like-minded brokers that appreciate a tripartite approach to relationship management supported by common sense lending solutions that result in an industry-leading customer NPS and broker activation rate.
“We are continuing to invest in the broker channel with both staff and initiatives to ensure our growing network receive premium service and support, as more brokers seek speed and flexibility for their clients – this has become all the more important with the increasing number of brokers undertaking commercial lending with numbers growing 15 per cent in the 6 months to October last year.
“Judo’s growing support of regional and agribusiness customers has been alongside strong broker growth in this sector as incumbent lenders have reduced on-the-ground support for customers. Brokers are increasingly stepping in to fill the void and connecting customers with lenders on the ground who will provide them with practical judgment-based solutions and support.”
Looking ahead, Judo Bank CEO and managing director Chris Bayliss was upbeat.
“Judo has delivered another solid set of results for FY25, while achieving several major operational milestones that will allow us to continue to successfully execute our strategy in FY26 and beyond,” he said.
“We have shifted our focus to enhancing our core SME lending franchise, expanding our product suite, and optimising funding, capital, and costs. I’m very pleased with the momentum in our technology and operations teams, who are now working to increase the capacity of our relationship bankers and support the development of new products.
“On the funding side, the introduction of new deposit products in FY26 will broaden our offering, reduce reliance on term deposits and give us flexibility to lower our funding costs.”
In June, Judo revealed plans to tweak its broker proposition – including ‘tweaking’ its commission model – and grow its product range.
Judo Bank is the latest lender to publish information on its recent financial performance, with National Australia Bank (NAB) this week reporting its highest ever monthly business lending growth for June, with the major seeing business lending balances rise by $4.6 billion.
[Related: Judo to evolve broker proposition, expand products]
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