The growth rate in lending at Judo Bank has halved, with the bank facing up to the need to manage the stress in its $11 billion business lending book, and better screen new applicants.
Growth in lending assets at Judo had averaged 34 per cent over the last three years, but the latest monthly APRA data shows this growth rate is now 17 per cent, over the year to April.
In a bleak trading update for the March 2025 quarter, released a month ago, Judo said “Net [lending] growth for the third quarter was subdued, reflecting normal seasonality, as well as higher run-off primarily due to the residual impacts of proactive portfolio management undertaken during the first half of 2025” the bank said.
“Runoff has remain elevated as we look to manage the existing book to maintain NIM” Andrew Leslie, the CFO, told an analysts briefing at the time.
Judo said in the trading update that growth in lending was “expected to be lower than guidance provided at the first half result, given market uncertainty impacting customers [combined with] the slower initial ramp up of warehouse lending, and balancing growth and economics.”
And even lower still, if the APRA April lending data is any guide.