Judo Bank shares collapsed by approximately 40% in early afternoon trade, falling to 93 cents and erasing roughly $400 million from the company’s market capitalization.
The sharp repricing followed the lender’s disclosure that three significant loans had gone bad in recent weeks, prompting a stark profit warning for investors.
The ASX-listed business lender cited deteriorating economic conditions as a key driver behind the unexpected credit losses.
The revelation of these specific defaults has shaken investor confidence, leading to a rapid reassessment of the bank’s risk profile and near-term profitability.
The sell-off reflects broader concerns about credit quality in the current macroeconomic environment.
This development marks a significant shift for Judo Bank, which has previously positioned itself as a specialist in business lending.