Appears have been profitable since September 2020 or about 15 months after obtaining the unrestricted banking licence.
They only mention the following.:
Profit and loss performance – scaling to profitability Judo recorded its first monthly net profit result in September 2020, which continued throughout the remainder of the year. The net profit result before tax for FY21 saw a loss of $4.3 million (FY20: $50.8 million), including approximately $3 million in one-off items recognised at year end.
The underlying performance of the business has been strong, with cash profit closing at $9.4 million and net profit after tax closing at $28.8 million (driven by tax assets recognised on prior year losses).
Total revenue increased to $89.8 million in FY21 (FY20: $28.3 million) with significant growth across interest income in line with loan book growth, while interest expense increased in line with growth in the term deposit book and debt funding.
Judo’s net interest margin (NIM) has increased over consecutive months as lending margins continue to benefit from the superior customer value proposition we offer. Our funding costs have reduced in line with market, and were also influenced by various funding initiatives undertaken during the year, as well as utilisation of the RBA’s TFF.
Operating expenses grew by 51% to $84.1 million (FY20: $55.6 million) reflecting the significant investment made in people, core banking technology assets and risk management infrastructure required to support our strategic business priorities. Total FTE employees increased in FY21 to 320 (FY20: 197), as relationship bankers were onboarded to manage our growing SME customer base.
This growth saw us move to monthly profitability for the first time in September last year; something we are very proud of achieving within less than two years of receiving our banking licence.
In addition to our impressive growth, we have continued to strengthen our financial position with successful capital raisings completed in December 2020 and June 2021. The recent capital raisings, including the issuance of our inaugural $50 million Tier 2 capital subordinated debt security, demonstrate the significant support and belief our investors have in us.
Alongside strong deposit growth and diversification of our funding sources, Judo was able to participate in the Term Funding Facility (TFF), which provided access to $2.9 billion in low-cost funding that has supported healthy liquidity levels and further reduced our cost of funds. Both capital and liquidity initiatives have proven to be particularly critical during times of uncertainty and have set us up well to maintain momentum into FY22. Strong momentum in lending growth FY21 saw a substantial growth in our lending activity, increasing our loan book by $1.7 billion to finish FY21 at $3.5 billion (FY20: $1.8 billion). The momentum was supported by Judo’s expanding national footprint and greater investment in our relationship banking teams.
During FY21, third-party brokers continued to be an important source of originations for Judo (approximately 73%). We were also pleased with the growth of lending opportunities originated through our direct offerings as Judo’s brand and reputation gain more prominence in the market.
NOV Price at posting:
43.0¢ Sentiment: Buy Disclosure: Held
