{"id":759451,"date":"2026-06-25T13:51:17","date_gmt":"2026-06-25T13:51:17","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/759451\/"},"modified":"2026-06-25T13:51:17","modified_gmt":"2026-06-25T13:51:17","slug":"aussie-bank-plunges-in-value-as-loans-suddenly-go-bad-very-rapidly","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/759451\/","title":{"rendered":"Aussie bank plunges in value as loans suddenly go bad: ‘Very rapidly’"},"content":{"rendered":"\n

An Aussie bank has seen the valuation of its business on the Australian stock exchange<\/a> nearly halve in a single trading day. Judo Bank’s<\/a> share price plunged on Thursday after revealing bad debts to the market. <\/p>\n

The bank, which lends to small and medium businesses, said three loans had gone bad in recent weeks, stoking concerns about the state of the economy<\/a> and sending jitters through investors. One of the loans was to a business that had suddenly entered voluntary administration which caught the bank off guard as the business “deteriorated very rapidly”. <\/p>\n

“Judo’s cost of risk has been impacted primarily by specific provision increases for three exposures across different sectors that have recently emerged,” the bank said in an update to the ASX. <\/p>\n

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After the bank’s chief executive Chris Bayliss arranged a call with analysts this morning, the stock plunged more than 40 per cent. <\/p>\n

The small bank now has a market cap of just over $1 billion. <\/p>\n

Bayliss said the bad loans were specific to the borrowers, but pointed to the macro economic environment as playing a part in the troubles. <\/p>\n

“We continue to see strong underlying momentum in the business. Recent credit outcomes have been driven by a small number of customers, who we are actively working with. These exposures have deteriorated subsequent to the customer-by-customer review undertaken in the third quarter and reflect recent, borrower-specific developments,” he said in a statement. <\/p>\n

“While today’s update is partly a result of the macro environment, it is nevertheless disappointing. Regardless, we remain confident in the strength of our underlying business and the quality of the portfolio.” <\/p>\n

The bad loans were reportedly to companies in the property, financial planning and manufacturing sectors of the economy. On top of the bad credit, the company revealed a worse than expected outlook compared to what analysts expected for next year. <\/p>\n

The bank is due to deliver its financial year results on August 18. <\/p>\n

The broader ASX200 was down as the market opened this morning but bounced after the ABS reported the economy added a better-than-expected 40,300 jobs in May<\/a>, while the unemployment rate ticked down to 4.4 per cent, from 4.5 per cent. <\/p>\n

“For an economy that is supposed to be losing momentum, Australians are still working and still spending,” VanEck’s head of investments and capital markets, Russel Chesler told AAP. <\/p>\n

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