Judo Capital Holdings (ASX:JDO) cash earnings for the first half of fiscal 2026 are expected to grow by 44% compared with the prior corresponding period, reaching AU$59 million, 1% below Visible Alpha's estimate, according to a Jefferies note on Tuesday.

The bank's net interest margin is expected to decline by 2 basis points half on half to 3.03%, one basis point above Visible Alpha consensus, Jefferies added.

Jefferies expects a common equity tier one capital ratio at 12.3%.

The investment firm said that key issues to monitor include the extent to which deposit funding costs support a net interest margin improvement in the second half of fiscal year 2026, confirmation of operating leverage from largely fixed cost structures, and trends in asset quality and credit performance.

Jefferies kept a buy rating on Judo Capital Holdings and reduced its price target to AU$2.29 from AU$2.30.