Judo Capital Holdings Ltd's stock plummeted 5.07% during intraday trading on Friday, marking a significant decline for the Australian financial services company.

The sharp drop followed the company's business update which included a reaffirmation of its FY26 profit before tax guidance of A$180 million to A$190 million. While the update showed a positive trend in net interest margin, rising to about 3.15% in the third quarter from 3.03% in the first half of FY26, investors appeared focused on the company's projected cost of risk between 70 to 75 basis points of average gross loans and advances.

The company also reported a CET1 ratio of 12.6% as of March 31 and expects its full-year net interest margin to be at the upper end of the 3.00% to 3.10% range. Despite these generally positive metrics, the market reaction suggests concerns about the elevated cost of risk projections may have outweighed other favorable aspects of the update.