Report
EUR 93.06
For Business Accounts Only
Judo Bank (JB) focuses on lending to small and medium-sized enterprises (SMEs) in Australia. It also offers a range of personal term deposit products to consumers.
Due to the lack of financing that SMEs face, JB filled a gap in the market and has been riding a strong tailwind as seen from its loan book and consumer deposits growing about 15x and 27x, respectively, from FY19 to FY21.
Valuation looks expensive based on reported pro-forma FY21 book value but assuming that it continues to grow, its FY22 P/B ratio looks more reasonable, albeit still expensive if we take ROE into consideration. That said, JB is still growing fast and has the highest NIM.
In this note, we take a brief look at financials, operating metrics, and share our thoughts on valuation.
Judo Bank IPO - Built a niche in the market by helping SMEs
Judo Bank is looking to raise about US$483m by selling a mix of primary and secondary shares.Judo Bank (JB) focuses on lending to small and medium-sized enterprises (SMEs) in Australia. It also offers a range of personal term deposit products to consumers.
Due to the lack of financing that SMEs face, JB filled a gap in the market and has been riding a strong tailwind as seen from its loan book and consumer deposits growing about 15x and 27x, respectively, from FY19 to FY21.
Valuation looks expensive based on reported pro-forma FY21 book value but assuming that it continues to grow, its FY22 P/B ratio looks more reasonable, albeit still expensive if we take ROE into consideration. That said, JB is still growing fast and has the highest NIM.
In this note, we take a brief look at financials, operating metrics, and share our thoughts on valuation.
Underlying
Judo Bank
Provider
Aequitas Research
Aequitas Research is a leading ECM research firm with a focus on IPOs and placements/follow-on offerings across the Asia Pacific with deal size of over USD100m.
Since 2015, we have covered 400+ IPOs and 450+ placements with a hit rate of 73% and 65%, respectively. We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic analysis.
Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis. We also provide a more quant driven analysis on placement/follow-on offerings.
Markets that we cover include:
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Zhen Zhou Toh
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