Judo Capital Holdings experienced a significant drop in its share price Thursday, losing almost 50% of its market value in early trading. The decline followed the Australian lender’s revised earnings forecast for 2026, which was lowered due to increased specific provisions. These provisions span multiple sectors, indicating a worsening outlook for loan performance. The company cited a challenging economic environment as a contributing factor to the need for higher reserves against potential loan losses. Investors reacted negatively to the news, triggering a sell-off of Judo Capital shares. The revised forecast signals potential difficulties for the lender in achieving its previously anticipated profitability targets. This downturn raises questions about the health of the Australian lending market and its sensitivity to economic headwinds.