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judo.bank

Founded Year

2016

Stage

IPO | IPO

Total Raised

$1.687B

Date of IPO

11/3/2021

About Judo Bank

Judo Bank is a specialist lender, purpose-built to provide Australia's Small to Medium Enterprise's (SMEs) with the funding and service they need.

Judo Bank Headquarters Location

Level 3 40 City Road

Melbourne, Victoria, 3006,

Australia

+61 390813110

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Research containing Judo Bank

Get data-driven expert analysis from the CB Insights Intelligence Unit.

CB Insights Intelligence Analysts have mentioned Judo Bank in 4 CB Insights research briefs, most recently on Jul 6, 2022.

Expert Collections containing Judo Bank

Expert Collections are analyst-curated lists that highlight the companies you need to know in the most important technology spaces.

Judo Bank is included in 4 Expert Collections, including Banking.

B

Banking

968 items

D

Digital Lending

1,697 items

This collection contains companies that provide alternative means for obtaining a loan for personal or business use and companies that provide software to lenders for the application, underwriting, funding or loan collection process.

S

SMB Fintech

1,145 items

F

Fintech

3,444 items

Excludes US-based companies

Latest Judo Bank News

Judo Bank’s bizarre lesson in banking

Aug 25, 2022

Share Strange as it may sound, one of the competitive advantages enjoyed by business lending specialist Judo Capital Holdings, which owns Judo Bank, is its strategic decision not to sell mortgages. This means chief executive Joseph Healy is not carrying the anticompetitive capital punishment imposed by the Australian Prudential Regulation Authority on regional banks chock-full of residential mortgages. Judo Bank’s Joseph Healy says he has delivered a “black belt” fiscal 2022 financial result. David Rowe As a specialist business lender, Healy and his team of 115 business bankers can walk into a meeting with a new business borrower with almost the same capital weighting as the big four banks. Healy has to carry the burden of a BBB minus credit rating compared with the AA ratings of the big four banks, but this is not as bad as the heavy capital disadvantage imposed on regional banks for writing a mortgage. APRA’s uneven policing of the risk weighting to mortgages means that a residential mortgage with a 40 per cent loan-to-value ratio requires about 10 per cent in capital from one of the big four and about 35 per cent in capital from a regional bank. Advertisement David Murray highlighted this disadvantage in his financial system inquiry in 2014 and recommended the playing field be levelled. But APRA and Treasury have done nothing about it. If anything, APRA has made the risk-weighted capital problem for regionals even worse, according to a regional banker familiar with APRA’s obsession with the advanced methodology for credit assessment. Healy says the capital weighting difference for regionals “does create a distortion in the market”. “It does weaken competitive pressure in the marketplace, there’s no question about that,” he says. “But the whole risk-weighting determination is a black art that creates a competitive advantage in favour of the major banks.” Judo’s 2022 financial results released on Thursday showed a pro forma profit before tax of $15.6 million, more than double the original prospectus profit forecast of $7.4 million. The closely watched credit metrics were in line with forecasts. Impairments of $25.4 million were below the prospectus target of $28.5 million. Total provisions rose to $55 million because of growth in the collective provision and provision coverage of 91 basis points was just ahead of the forecast of 90 basis points. Advertisement The bank boosted loans and advances by 73 per cent to $6.1 billion and more than doubled net interest income to $169.8 million. The bank’s underlying net interest margin of 2.79 per cent was up 20 basis points, and Healy says it will reach 3 per cent by the end of this year and be more than 3 per cent by June next year. Healy has aggressive targets for improving the bank’s efficiency as measured by the cost-to-income ratio. He wants to cut this ratio to about 60 per cent from 73 per cent through a combination of higher revenue and lower costs. “As a bank that was built from a PowerPoint five years ago we are not burdened by legacy systems,” Healy says. “We don’t have the legacy in terms of compliance and technology and infrastructure assets, which plague the industry. The burden of legacy is something that Judo has avoided.” Judo has managed to compete effectively with the major banks in lending to small and medium-sized businesses while promising a net interest margin about 100 to 125 basis points higher than the major banks. Much of that can be attributed to the decision by the founders to target a segment of the market that has a level playing field relative to the situation faced by the regional banks competing with the big four on mortgages. Chanticleer assumes the Australian Competition and Consumer Commission will explore this bizarre competitive distortion as part of its analysis of the ANZ Banking Group’s takeover of Suncorp Bank. Tony Boyd is the Chanticleer columnist. He has more than 35 years' experience as a finance journalist. Connect with Tony on Twitter . Email Tony at tony.boyd@afr.com Save

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Judo Bank Rank

  • When was Judo Bank founded?

    Judo Bank was founded in 2016.

  • Where is Judo Bank's headquarters?

    Judo Bank's headquarters is located at Level 3, Melbourne.

  • What is Judo Bank's latest funding round?

    Judo Bank's latest funding round is IPO.

  • How much did Judo Bank raise?

    Judo Bank raised a total of $1.687B.

  • Who are the investors of Judo Bank?

    Investors of Judo Bank include Myer Family Investments, OPTrust, Abu Dhabi Capital Group, Ironbridge Capital, Tikehau Capital and 14 more.

  • Who are Judo Bank's competitors?

    Competitors of Judo Bank include Volt Bank and 3 more.

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