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Judo shares leap, one day after being downgraded from buy to sell

James Eyers
James EyersSenior Reporter

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Judo Bank shares surged on Tuesday morning after it clarified the margin squeeze from the roll-off of cheap, post-pandemic funding and declared business lending volumes had grown by three times the market average in its first half.

The additional clarity on the 2024 targets sent the stock up 18 per cent to $1.10 at lunchtime, providing some relief to investors, who had watched Judo fall 30 per cent over 2023. This was mostly because of fears about the margin headwind from its refinancing of $2.8 billion of special RBA facilities with more expensive deposits and warehouse funding.

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James Eyers writes on banking, payments and fintech. He is a former legal and investment banking editor at the AFR, has degrees in commerce and law from UNSW, and is co-author of Buy now, pay later: The extraordinary story of Afterpay Connect with James on Twitter. Email James at jeyers@afr.com.au

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    Original URL: https://www.afr.com/companies/financial-services/judo-spikes-as-it-clarifies-margin-impact-when-cheap-funding-rolls-off-20240123-p5ezcy