Judo Capital : APRA Basel III Pillar 3 - Dec 2021

ASX ANNOUNCEMENT

28 February 2022

For personal use only

APRA BASEL III PILLAR 3 DISCLOSURE

Judo Capital Holdings Limited (ASX: JDO) ("Judo") today released its Basel III Pillar 3 report for the quarter ended 31 December 2021, as required by APRA Prudential Standard APS 330: Public Disclosure.

Judo advises that its Basel III Pillar 3 report has been prepared using APRA's prescribed definitions. APRA definitions for certain items may differ to the IFRS and management definitions used for the preparation of interim and full year financial reports and associated investor material.

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Authorised for release by Yien Hong, Company Secretary.

MEDIA ENQUIRIES:

William Roberts (Cannings): 0431 318 893 / [e-mail]

ANALYST ENQUIRIES:

Andrew Dempster: 0497 799 960 / [e-mail]

About Judo Bank: Judo Bank is Australia's first purpose-built challenger bank for small and medium-sized businesses (SMEs) and the first fully licensed Australian bank to IPO in 25 years. Judo was founded by a small group of experienced lending professionals and its purpose is to be the most trusted SME business bank in Australia. The company's relationship-led lending model, which brings back the craft of relationship banking, is enabled by its legacy free, digital, cloud-based technology architecture. Lending products are originated and distributed through direct and third-party channels and are funded by deposits, wholesale debt and regulatory capital.

Judo Capital Holdings Limited | ABN 71 612 862 727 | Level 3, 40 City Road, Southbank, VIC 3006 | www.judo.bank

Basel III Pillar 3.

Quarter ended

31 December 2021 onlyuse

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Contents.

1.	Capital Structure
2.	Main Features of Capital Instruments
personalForuse only
3.	Capital Adequacy
4.	Credit Risk
5.	Securitisation

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This report has been prepared by Judo Bank Pty Ltd to meet its disclosure requirements under the Australian Prudential Regulation Authority's (APRA) Prudential Standard APS 330: Public Disclosure. It has been prepared using quarter ended 31 December 2021 data at the consolidated Judo Group level (level 2) including the authorised Non-Operating Holding Company, Judo Capital Holdings Limited.

Basel III Pillar 3

1.  Capital Structure.

only		December 2021	September 2021
	$m	$m
Common Equity Tier 1 Capital
Paid-up ordinary shares (net of capital raising costs)	1,513.3	1,168.7
Reserves	(28.5)	4.9
Regulatory retained earning including current year earnings and GRCL top up	(105.9)	(89.1)
		Total Common Equity Tier 1 Capital	1,379.1	1,084.5
		Regulatory Adjustments
		Deferred Tax Assets	(62.2)	(35.1)
		Goodwill and Intangibles	(17.3)	(16.6)
use	(6.1)	(7.5)
		Deferred expenditure
personal	Cash-flow hedge reserve	(4.6)	(2.5)
Other deductions	0.0	(2.3)
Total regulatory adjustments	(90.2)	(64.0)
Net common equity Tier 1 Capital	1,288.9	1,020.5
T tal Tier 1 Capital	1,288.9	1,020.5
Tier 2 Capital
Tier 2 Capital instruments	50.0	50.0
General Reserve for Credit Losses	34.6	30.0
Total Tier 2 Capital	84.6	80.0
Total Capital	1,373.5	1,100.5
		2.  Main Features of Capital Instruments.
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Judo Bank's main features of capital instruments are updated on an ongoing basis and are available at the Regulatory Disclosures section of the judo.bank website at the following address https://www.judo.bank/asx-announcements

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3.  Capital Adequacy.

only	December 2021	September 2021
	Risk Weighted Assets Level 2	$m	$m
	Subject to the Standardised Approach
	Government	0.0	0.0
	Bank	111.5	62.8
	Residential Mortgages	1,420.8	1,114.2
	Other retail	0.0	0.0
use	3,378.9	3,062.8
	Corporate(1)
	Other	31.6	39.3
	Total On and Off-Balance Sheet Exposures	4,942.8	4,279.1
	Securitisation Exposures	0.0	0.0
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	Market Risk Exposures	0.0	0.0
	Operational Risk Exposures	577.5	452.6
	Total Risk Weighted Assets	5,520.3	4,731.7
	Note:
	(1) Includes commercial lending and leasing.
	Capital Ratios Level 2
	Common Equity Tier 1	23.3%	21.6%
	Tier 1	23.3%	21.6%
	Total Capital	24.9%	23.3%

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