Judo Eclipses A$9 Billion in Lending
(17 July 2023 – Australia) Judo Bank’s balance of gross loans and advances (GLAs) has exceeded A$9 billion, on track to hit management’s A$15–20 billion target.
Ahead of reporting FY23 financial results on 24 August 2023, Judo recorded its strongest ever month of growth in June with A$478 million growth in GLAs. Momentum in settlements continued into the new financial year as the bank’s balance of GLAs exceeded $9 billion, consistent with the group’s FY23 guidance.
“We are very pleased to have reached a lending book of over A$9 billion whilst maintaining strong credit underwriting standards. The bank’s applications, accepted and approved pipeline of loans also remains strong at A$1.5 billion. We believe our unique relationship-based approach to SME banking, underpinned by our strong team of experienced bankers, positions us well in the current environment to continue our progress towards being a scale player in Australian banking” commented Judo Bank CEO Joseph Healy.
Operating for over seven years, Judo Bank revealed pre-tax profits in the nine months to March 31of A$86.7 million, exceeding 2021/22 FY profits of A$15.6 million. In May Judo Bank promised to drive costs significantly lower than the majors where earnings continued to be anchored, seeking to halve its cost-to-income ratio as it expands GLAs.
The group reported that recent major investments in automation and artificial intelligence (AI) will provide customers with insights they could not ascertain independently, scaling up to challenge “industrialised” Big Four SME lending offerings.
“When we started Judo a number of years ago, we really focused our capital on establishing the ‘relationship’ bank, hiring our bankers, improving the customer value proposition in market. But going forward, now, we’re going to be bringing the technologies that scale the bank, and that really does give our efficiencies back, from our customer support teams to our operations teams, to our corporate functions and our bankers” stated Judo Bank’s COO Lisa Frazier.
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