Challenger bank seeing solid SME loan book growth
Judo Bank’s loan book grew by 7% to $13.4 billion in the six months to 31 December, with total deposits hitting $10.9 billion.
Ten years into its lifespan as the self-titled “Australia’s first SME specialist business bank”, Judo Bank’s profitability continues to rise, with its net interest margin (NIM) showing a remarkably wide spread of 3.03% in the reporting period.
Furthermore, the bank expects its NIM to grow to 3.15% in the second half of its financial year. Previous guidance was set at 3.1%.
For contrast, major lenders like Westpac tend to operate at a NIM of 2% or less. NAB, Australia’s largest business bank with a 28% share of the SME lending market, delivered a 1.74% NIM in its latest full-year results.
Judo Bank enjoyed a record month of originations in December 2025 while maintaining a stable CET1 capital ratio (a key measure of liquidity) of 12.6%.
“Today’s result demonstrates that Judo continues to successfully execute against its clear and simple strategy. We are on track to achieving our existing FY26 guidance for significant profit growth, and realising the operating leverage inherent in our business model,” said chief executive and managing director Chris Bayliss (pictured)
Top-line results saw Judo Bank grow its statutory net profit after tax (NPAT) by 46% year on year to $59.9 million.
Judo Bank had 1,682 accredited brokers under its belt at the end of the reporting period, up from 1,563 in June 2025.
