Judo Capital Holdings (ASX:JDO) said third-quarter lending growth, net interest margins, and operating expenses remain on track, reaffirming fiscal year 2026 profit before tax guidance of AU$180 million to AU$190 million, albeit toward the lower end, inclusive of a top-up to its collective provision in response to current economic conditions, according to a Thursday Australian bourse filing.

The bank's third-quarter net interest margin (NIM) rose to about 3.15% from 3.03% in the first half of the fiscal year, in line with existing second-half NIM guidance, with gross loans and advances (GLA) growing to AU$13.8 billion on March 31 from AU$13.4 billion on December 2025, the filing added.

Attrition improved to 15% annualized in the third quarter, down from 33% in the second quarter, driven by lower levels of external refinances and discretionary paydowns, while total deposits increased to AU$11.5 billion at March 31, the filing added.

Common equity tier one (CET1) capital remained at 12.6% at March 31, unchanged from December 2025, with 90-day-past-due and impaired loans at 2.65% of GLA, a slight improvement from 2.66% in December 2025, the filing added.

Full fiscal year guidance includes NIM at the upper end of 3% to 3.1%, a cost-to-income ratio below 50%, and GLA of AU$14.4 billion to AU$14.7 billion, with new term deposit pricing expected to normalize to within 80 to 90 basis points over one-month bank bill swap rate (BBSW) by the end of the fiscal year, it added.