Judo Bank shares plummet nearly 40% after revealing bad business debts
The specialist small business lender revealed a cluster of bad loans on its books and flagged increasing costs to manage lending risks.
Shares in Judo Bank plunged nearly 40% on Thursday, after the specialist small business lender revealed a cluster of bad loans on its books and flagged increasing costs to manage lending risks.
The ASX-listed lender insisted three bad loans, which only turned in recent weeks, were the result of “customer-specific” developments.
But the news nevertheless sent shockwaves through the markets, given fears of a broader economic slowdown affecting Judo Bank’s small business borrowers.
The three loans originated in entirely different sectors of the economy, and only emerged after a customer-by-customer review undertaken earlier this year, according to a statement Judo Bank shared with the market.
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