JDO - Judo Capital Holdings

[UMike]

So they beat Prospectus forecasts .... Why aren't they then close to Prospectus Share Price?

(Edit: Sorry not expecting a conclusive answer. More statement like)

 

[InsvestoBoy]

So they beat Prospectus forecasts .... Why aren't they then close to Prospectus Share Price?

(Edit: Sorry not expecting a conclusive answer. More statement like)

Looks like they raised IPO money at ~1.7 x book value...currently trading just a tad under book value now.

Seems right for a bank that went from 3.9c EPS to -0.8c EPS YoY.

Premium to book is reserved for banks that the market believes can get a positive ROE/ROA.

 

[UMike]

Half Year Results Announcement: Tuesday 21 February 2023
Not quite sure how it has been for SME's over this past half year.
Yet they are up 14% YTD (ASX up 4.5%)

Looking at lightening my exposure to them. But (rating Agencies) consensus seems positive with them.

 

[Dona Ferentes]

Judo Bank’s first half profit jumped by over 300 per cent to $53.2 million.

• Underlying net interest margin climbed 72 basis points to 3.56 per cent, supported by improved term deposit margins and rates leverage.
• Reported gross loans and advances of $7.5 billion for the half, up 23 per cent on pcp,
• Net interest income of $163 million, 69 per cent higher than the pcp.
• Remains on track to achieve its FY23 guidance

 

[UMike]

Ha Ha.
Left the SMSF order open. Got rid of 'em.

Still holding in the personal.

JDO is looking steady.... If not good.
Not sure how recession proof they are though.

 

[UMike]

F@#K it

Might buy it back again 2 days later 2G cheaper. Strange times.

 

[frugal.rock]

I did....

 

[frugal.rock]

Judo wins over angry bank customers as profit jumps

CEO Joseph Healy says Judo’s profit jumped 300 per cent from the previous half, putting it in a good place to weather any downturn.

www.afr.com

 

[UMike]

Back in again in the SMSF.

Funny times.

Hoping JDO will benefit from all the calls by "experts" to shop around.

 

[Dona Ferentes]

JDO under a bit of pressure with current banking conniptions, as analysts put the smaller players under the microscope.

At the launch of of their book, co-written with David Hornery, co-founder of Judo Bank, and called Black Belt, A masterclass for start-ups and entrepreneurs , Joseph Healy spoke on the SVB crisis.

.....
“Banking start-ups or finance company start-ups face a unique set of risks that really require people with deep domain experience in my view,” Healy says.

“My understanding is the Silicon Valley Bank became much more fixated on becoming a tech company and on ESG. They were more focused on being a technology company first and a bank second.

“They made extensive use of external consultants, and management just wasn’t across the risks in the business.”

Healy says it is fortunate that Australia has a “very different banking system than that which exists in the United States”.

“Ours is fundamentally different – it is well-regulated, well-capitalised and has strong liquidity. And, you know, in the US, what the smaller banks have been doing is heavily lobbying in Washington to try and relax some of the regulatory oversight that was introduced after the global financial crisis.

“Rather than building up the risk management and resilience of their banks, the bankers in the US spent much more time lobbying for relaxing regulation. In the case of Silicon Valley Bank, they lost sight that they were, in fact, a bank and not a technology company.”