WBC-NZ Banking Group Disclosure Statement – 31 Mar 2018

Disclosure Statement
Westpac Banking
Corporation –
New Zealand
Banking Group
For the six months ended 31 March 2018

Contents
General information 1
Directors’ and the Chief Executive Officer, NZ Branch’s statement 3
Income statement 4
Statement of comprehensive income 4
Balance sheet 5
Statement of changes in equity 6
Statement of cash flows 7
Notes to the financial statements 8
Note 1 Statement of accounting policies 8
Note 2 Non-interest income 8
Note 3 Impairment charges/(benefits) 8
Note 4 Loans 9
Note 5 Asset quality 10
Note 6 Financial assets pledged as collateral 10
Note 7 Deposits and other borrowings 11
Note 8 Other financial liabilities at fair value through income statement 11
Note 9 Debt issues 11
Note 10 Related entities 11
Note 11 Fair value of financial assets and financial liabilities 12
Note 12 Credit related commitments, contingent assets and contingent liabilities 15
Note 13 Segment reporting 16
Note 14 Insurance business 17
Note 15 Risk management 17
15.1 Credit risk 17
15.2 Liquidity risk 18
15.3 Market risk 19
Note 16 Concentration of funding 21
Note 17 Concentration of credit exposures 22
Note 18 Overseas Bank and Overseas Banking Group capital adequacy 23
Note 19 Other information on the Overseas Banking Group 24
Conditions of registration 25
Independent auditor’s review report 26

Westpac Banking Corporation - New Zealand Banking Group
1
General information
Certain information contained in this Disclosure Statement is required by the Registered Bank Disclosure Statements (Overseas Incorporated Registered
Banks) Order 2014 (‘Order’).
In this Disclosure Statement, reference is made to five main reporting groups:
–Westpac Banking Corporation (otherwise referred to as the ‘Overseas Bank’) – refers to the worldwide business of Westpac Banking Corporation
excluding its controlled entities;
–Westpac Banking Corporation Group (otherwise referred to as the ‘Overseas Banking Group’) – refers to the total worldwide business of Westpac
Banking Corporation including its controlled entities;
–Westpac Banking Corporation New Zealand Branch (otherwise referred to as the ‘NZ Branch’) – refers to the New Zealand Branch of Westpac
Banking Corporation (trading as Westpac);
–Westpac New Zealand Limited (otherwise referred to as ‘Westpac New Zealand’) – refers to a locally incorporated subsidiary of the Overseas Bank
(carrying on the Overseas Bank’s New Zealand consumer, business and institutional banking operations); and
–Westpac Banking Corporation – New Zealand Banking Group (otherwise referred to as the ‘NZ Banking Group’) – refers to the New Zealand
operations of Westpac Banking Corporation Group including those entities whose business is required to be reported in the financial statements of
the Overseas Banking Group’s New Zealand business.
Words and phrases not defined in this Disclosure Statement, but defined by the Order, have the meaning given by the Order when used in this
Disclosure Statement.
Limits on material financial support by the ultimate parent bank
On 19 November 2015, the Australian Prudential Regulation Authority (‘APRA’) informed the Overseas Bank that its Extended Licensed Entity (‘ELE’)
non-equity exposures to New Zealand banking subsidiaries is to transition to be below a limit of 5% of the Overseas Bank’s Level 1 Tier 1 capital, as part
of an initiative to reduce Australian bank non-equity exposure to their respective New Zealand banking subsidiaries and branches.
The ELE consists of the Overseas Bank and its subsidiary entities that have been approved by APRA to be included in the ELE for the purposes of
measuring capital adequacy.
APRA has allowed a period of five years commencing on 1 January 2016 to transition to be less than the 5% limit. Exposures for the purposes of this limit
include all committed, non-intraday, non-equity exposures including derivatives and off-balance sheet exposures. For the purposes of assessing this
exposure, the 5% limit excludes equity investments and holdings of capital instruments in New Zealand banking subsidiaries.
While the limit and associated conditions do not apply to the ELE’s non-equity exposures to the NZ Branch (which is within the ELE), the limit and
associated conditions do apply to the NZ Branch’s non-equity exposures to the rest of the NZ Banking Group other than Westpac New Zealand Group
Limited. As at 31 March 2018, the ELE’s non-equity exposures to New Zealand banking subsidiaries affected by the limit were below 5% of Level 1 Tier 1
capital of the Overseas Bank.
APRA has also confirmed the terms on which the Overseas Bank ‘may provide contingent funding support to a New Zealand banking subsidiary during
times of financial stress’. APRA has confirmed that, at this time, only covered bonds meet its criteria for contingent funding arrangements.
Directors
The Directors of the Overseas Bank at the time this Disclosure Statement was signed were:
Lindsay Philip Maxsted, DipBus (Gordon), FCA, FAICD – Chairman
Brian Charles Hartzer, BA, CFA – Managing Director & Chief Executive Officer
Nerida Frances Caesar, BCom, MBA, GAICD
Ewen Graham Wolseley Crouch AM, BEc (Hons.), LLB, FAICD
Catriona Alison Deans, BA, MBA, GAICD
Craig William Dunn, BCom, FCA
Peter John Oswin Hawkins, BCA (Hons.), SF Fin, FAIM, ACA (NZ), FAICD
Peter Ralph Marriott, BEc (Hons.), FCA
Peter Stanley Nash, BCom, FCA, F Fin
Changes to Directorate
Robert George Elstone ceased to be a director on 8 December 2017. On 7 February 2018, the Overseas Bank announced the appointment of Peter
Stanley Nash to its Board of Directors (the ‘Board’) effective 7 March 2018. There have been no other changes in the composition of the Board since 30
September 2017.
Chief Executive Officer, NZ Branch
Karen Lee Silk, B.Com
Responsible person
All the Directors named above have authorised in writing David Alexander McLean, Chief Executive, Westpac New Zealand to sign this Disclosure
Statement on the Directors’ behalf in accordance with section 82 of the Reserve Bank of New Zealand Act 1989 (‘Reserve Bank Act’).

Westpac Banking Corporation - New Zealand Banking Group2
Credit ratings
The Overseas Bank has the following credit ratings with respect to its long-term senior unsecured obligations, including obligations payable in New
Zealand in New Zealand dollars, as at the date the Directors signed this Disclosure Statement:
Rating Agency Current Credit Rating Rating Outlook
Fitch Ratings AA- Stable
Moody’s Investors Service Aa3 Stable
S&P Global Ratings AA- Negative
Disclosure statements of the NZ Banking Group and the financial statements of the Overseas Bank and the Overseas
Banking Group
Disclosure Statements of the NZ Banking Group for the last five years are available, free of charge, at the internet address www.westpac.co.nz. A printed
copy will also be made available, free of charge, upon request and will be dispatched by the end of the second working day after the day on which the
request is made.
The most recently published financial statements of the Overseas Bank and the Overseas Banking Group are for the year ended 30 September 2017 and
for the six months ended 31 March 2018, respectively, and can be accessed at the internet address www.westpac.com.au.
Guarantee arrangements
No material obligations of the Overseas Bank that relate to the NZ Branch are guaranteed as at the date the Directors and Chief Executive Officer, NZ
Branch signed this Disclosure Statement.
Auditor
PricewaterhouseCoopers
PricewaterhouseCoopers Tower
188 Quay Street
Auckland, New Zealand
Other material matters
Certain matters relating to the business or affairs of the Overseas Bank and the NZ Banking Group have been disclosed on the New Zealand and/or
Australian stock exchanges.
On 3 May 2018 the Financial Markets Authority (‘FMA’) and the Reserve Bank of New Zealand (‘Reserve Bank’) sent a letter to the chief executives of
New Zealand’s registered banks (including Westpac New Zealand) requesting information on what work had been undertaken in each bank to identify
and address any conduct and culture issues. This was in response to the Australian Royal Commission into misconduct in banking, superannuation and
other financial services. The purpose of the request was to understand how New Zealand banks had obtained assurance that misconduct of the type
highlighted in Australia is not taking place in New Zealand. Westpac New Zealand responded to this request on 18 May 2018. The FMA and the Reserve
Bank sent a similar letter to life insurers on 24 May 2018. The outcome of these engagements may lead to further scrutiny of the financial services
industry in New Zealand.
There are no other matters relating to the business or affairs of the Overseas Bank and the NZ Banking Group which are not contained elsewhere in the
Disclosure Statement and which would, if disclosed, materially affect the decision of a person to subscribe for debt securities of which the Overseas
Bank or any member of the NZ Banking Group is the issuer.
General information (continued)

Westpac Banking Corporation - New Zealand Banking Group
3
Directors’ and the Chief Executive Officer,
NZ Branch’s statement
Each Director of the Overseas Bank and the Chief Executive Officer, NZ Branch, believe, after due enquiry, that, as at the date on which this Disclosure
Statement is signed, the Disclosure Statement:
(a) contains all the information that is required by the Order; and
(b) is not false or misleading.
Each Director of the Overseas Bank and the Chief Executive Officer, NZ Branch, believe, after due enquiry, that, over the six months ended 31 March 2018:
(a) the Overseas Bank has complied with all conditions of registration imposed on it pursuant to section 74 of the Reserve Bank Act; and
(b) the NZ Branch and other members of the NZ Banking Group had systems in place to monitor and control adequately the material risks of relevant
members of the NZ Banking Group, including credit risk, concentration of credit risk, interest rate risk, currency risk, equity risk, liquidity risk and
other business risks and that those systems were being properly applied. For this purpose, a relevant member of the NZ Banking Group means a
member of the NZ Banking Group that is not a member of Westpac New Zealand’s banking group, as defined in Westpac New Zealand’s Disclosure
Statement for the six months ended 31 March 2018.
This Disclosure Statement has been signed on behalf of all of the Directors by David Alexander McLean, Chief Executive, Westpac New Zealand, and by
Karen Lee Silk as Chief Executive Officer, NZ Branch.
DA McLean
KL Silk
Dated this 29th day of May 2018
Janice Dawson

Westpac Banking Corporation - New Zealand Banking Group4
Income statement for the six months ended 31 March 2018
NZ BANKING GROUP
$ millionsNote
Six Months
Ended
31 Mar 18
Unaudited
Six Months
Ended
31 Mar 17
Unaudited
Year
Ended
30 Sep 17
Audited
Interest income2,008 1,973 3,981
Interest expense(1,065)(1,110)(2,193)
Net interest income943 863 1,788
Non-interest income2285 319 625
Net operating income before operating expenses and impairment charges1,228 1,182 2,413
Operating expenses(487)(490)(1,006)
Impairment (charges)/benefits3(27)36 76
Profit before income tax714 728 1,483
Income tax expense(201)(206)(424)
Net profit for the period/year513 522 1,059
The above income statement should be read in conjunction with the accompanying notes.
Statement of comprehensive income for the six months ended 31 March 2018
NZ BANKING GROUP
$ millions
Six Months
Ended
31 Mar 18
Unaudited
Six Months
Ended
31 Mar 17
Unaudited
Year
Ended
30 Sep 17
Audited
Net profit for the period/year 513 522 1,059
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Gains/(losses) on available-for-sale securities:
Recognised in equity 2 9 11
Gains/(losses) on cash flow hedging instruments:
Recognised in equity (18) (5) (58)
Transferred to income statement 32 57 104
Income tax on items taken to or transferred from equity:
Available-for-sale securities reserve (1) (3) (3)
Cash flow hedge reserve (4) (15) (13)
Items that will be not be reclassified subsequently to profit or loss
Remeasurement of defined benefit obligation recognised in equity (net of tax) (2) 10 10
Other comprehensive income for the period/year (net of tax) 9 53 51
Total comprehensive income for the period/year 522 575 1,110
The above statement of comprehensive income should be read in conjunction with the accompanying notes.

Westpac Banking Corporation - New Zealand Banking Group
5
Balance sheet as at 31 March 2018
NZ BANKING GROUP
$ millionsNote
31 Mar 18
Unaudited
31 Mar 17
Unaudited
30 Sep 17
Audited
Assets
Cash and balances with central banks 2,131 1,534 1,761
Receivables due from other financial institutions 620 800 471
Other assets 465 417 423
Trading securities and financial assets designated at fair value 3,497 3,691 3,949
Derivative financial instruments 3,533 3,518 3,420
Available-for-sale securities 3,555 3,818 4,087
Loans4, 5 79,557 76,948 77,681
Life insurance assets 280 275 304
Due from related entities 1,628 595 2,623
Property and equipment 140 145 146
Deferred tax assets 139 142 136
Intangible assets 671 650 665
Total assets 96,216 92,533 95,666
Liabilities
Payables due to other financial institutions 1,170 841 1,043
Other liabilities 661 692 635
Deposits and other borrowings 7 62,183 58,429 58,998
Other financial liabilities at fair value through income statement8 384 290 302
Derivative financial instruments 3,107 4,195 3,475
Due to related entities 2,599 3,469 3,646
Debt issues9 14,970 15,803 16,729
Current tax liabilities 41 19 88
Provisions 90 81 97
Loan capital 2,730 1,138 2,822
Total liabilities 87,935 84,957 8 7,8 3 5
Net assets 8,281 7, 5 7 6 7,831
Head office account
Branch capital 1,300 1,300 1,300
Retained profits 783 699 740
Total head office account 2,083 1,999 2,040
NZ Banking Group equity
Share capital 143 143 143
Reserves (53) (62) (64)
Retained profits 6,108 5,496 5,712
Total NZ Banking Group equity 6,198 5,577 5,791
Total equity attributable to the owners of the NZ Banking Group 8,281 7, 5 7 6 7,831
Interest earning and discount bearing assets 90,454 8 7,0 2 7 90,225
Interest and discount bearing liabilities 77,498 74,089 7 7,6 1 1
The above balance sheet should be read in conjunction with the accompanying notes.

Westpac Banking Corporation - New Zealand Banking Group6
Statement of changes in equity for the six months ended 31 March 2018
NZ BANKING GROUP
NZ BRANCHOTHER MEMBERS OF THE NZ BANKING GROUP
Head Office AccountReserves
$ millions
Branch
Capital
Retained
Profits
Share
Capital
Available-
for-sale
Securities
Reserve
Cash Flow
Hedge
Reserve
Retained
Profits
Total
Equity
As at 1 October 2016 (Audited)1,300 613 143 1 (106) 5,086 7,0 3 7
Six months ended 31 March 2017 (Unaudited)
Net profit for the period - 86 - - - 436 522
Net gains/(losses) from changes in fair value - - - 9 (5) - 4
Income tax effect - - - (3)1 - (2)
Transferred to income statement - - - - 57 - 57
Income tax effect - - - - (16) - (16)
Remeasurement of defined benefit obligations - - - - - 13 13
Income tax effect - - - - - (3) (3)
Total comprehensive income for the six
months ended 31 March 2017
- 86 - 6 37 446 575
Transactions with owners:
Dividends paid on ordinary shares - - - - - (36) (36)
As at 31 March 2017 (Unaudited)1,300 699 143 7 (69) 5,496 7, 5 7 6
As at 1 October 2016 (Audited)1,300 613 143 1 (106) 5,086 7,0 3 7
Year ended 30 September 2017 (Audited)
Net profit for the year - 127 - - - 932 1,059
Net gains/(losses) from changes in fair value - - - 11 (58) - (47)
Income tax effect - - - (3)16 - 13
Transferred to income statement - - - - 104 - 104
Income tax effect - - - - (29) - (29)
Remeasurement of defined benefit obligations - - - - - 14 14
Income tax effect - - - - - (4) (4)
Total comprehensive income for the year
ended 30 September 2017
- 127 - 8 33 942 1,110
Transactions with owners:
Dividends paid on ordinary shares - - - - - (316) (316)
As at 30 September 2017 (Audited) 1,300 740 143 9 (73) 5,712 7,831
Six months ended 31 March 2018 (Unaudited)
Net profit for the period - 43 - - - 470 513
Net gains/(losses) from changes in fair value - - - 2 (18) - (16)
Income tax effect - - - (1)5 - 4
Transferred to income statement - - - - 32 - 32
Income tax effect - - - - (9) - (9)
Remeasurement of defined benefit obligations - - - - - (3) (3)
Income tax effect - - - - - 1 1
Total comprehensive income for the six
months ended 31 March 2018
- 43 - 1 10 468 522
Transactions with owners:
Dividends paid on ordinary shares
(refer to Note 10)
- - - - - (72) (72)
As at 31 March 2018 (Unaudited)1,300 783 143 10 (63) 6,108 8,281
The above statement of changes in equity should be read in conjunction with the accompanying notes.

Westpac Banking Corporation - New Zealand Banking Group
7
Statement of cash flows for the six months ended 31 March 2018
NZ BANKING GROUP
$ millions
Six Months
Ended
31 Mar 18
Unaudited
Six Months
Ended
31 Mar 17
Unaudited
Year
Ended
30 Sep 17
Audited
Cash flows from operating activities
Interest income received 2,002 1,982 3,968
Interest expense paid (1,120) (1,152) (2,182)
Non-interest income received256 285 641
Operating expenses paid (472) (439) (887)
Income tax paid (254) (253) (397)
Cash flows from operating activities before changes in operating assets and liabilities412 423 1,143
Net (increase)/decrease in:
Receivables due from other financial institutions 156 19 355
Other assets (24) (2) (17)
Trading securities and financial assets designated at fair value 507 279 11
Loans (1,912) (1,383) (2,090)
Due from related entities 1,112 465 (1,689)
Net increase/(decrease) in:
Payables due to other financial institutions 127 225 427
Other liabilities 11 86 7
Deposits and other borrowings 3,185 (362) 207
Other financial liabilities at fair value through income statement 82 (286) (274)
Due to related entities
1
(884) 133 849
Net movement in external and related entity derivative financial instruments (220) (361) (902)
Net cash provided by/(used in) operating activities 2,552 (764) (1,973)
Cash flows from investing activities
Purchase of available-for-sale securities - (128) (533)
Proceeds from available-for-sale securities 499 30 162
Net movement in life insurance assets 24 (6) (35)
Purchase of capitalised computer software (30) (26) (64)
Purchase of property and equipment (16) (7) (31)
Net cash provided by/(used in) investing activities 477 (137) (501)
Cash flows from financing activities
Net movement in due to related entities
1
(217) (20) (437)
Proceeds from debt issues 550 5,644 7,490
Repayments of debt issues (2,615) (4,650) (5,698)
Issue of loan capital (net of transaction fees) - - 1,706
Dividends paid to ordinary shareholders (72) (36) (316)
Net cash provided by/(used in) financing activities (2,354) 938 2,745
Net increase/(decrease) in cash and cash equivalents 675 37 271
Cash and cash equivalents at beginning of the period/year 1,801 1,530 1,530
Cash and cash equivalents at end of the period/year 2,476 1,567 1,801
Cash and cash equivalents at end of the period/year comprise:
Cash on hand 381 215 282
Balances with central banks 1,750 1,319 1,479
Receivables due from other financial institutions classified as cash and cash equivalents 345 33 40
Cash and cash equivalents at end of the period/year 2,476 1,567 1,801
1
Certain comparatives have been revised for consistency. The reclassification was made to better reflect the NZ Banking Group’s cash flows from operating and financing
activities and has no effect on the balance sheet or income statement.
The above statement of cash flows should be read in conjunction with the accompanying notes.

Westpac Banking Corporation - New Zealand Banking Group8
Notes to the financial statementsNotes to the financial statements
Note 1 Statement of accounting policies
These condensed consolidated interim financial statements (‘financial statements’) have been prepared and presented in accordance with the
Registered Bank Disclosure Statements (Overseas Incorporated Registered Banks) Order 2014 (‘Order’) and Generally Accepted Accounting Practice,
as appropriate for for-profit entities, and the New Zealand equivalent to International Accounting Standard 34 Interim Financial Reporting and should
be read in conjunction with the Disclosure Statement for the year ended 30 September 2017. These financial statements comply with International
Accounting Standard 34 Interim Financial Reporting as issued by the International Accounting Standards Board.
Basis of preparation
These financial statements have been prepared under the historical cost convention, as modified by applying fair value accounting to available-for-sale
securities and financial assets and financial liabilities (including derivative instruments) measured at fair value through income statement or in other
comprehensive income. The going concern concept has been applied.
All amounts in these financial statements have been rounded to the nearest million dollars unless otherwise stated.
The same accounting policies and methods of computation have been followed in preparing these financial statements as were used in preparing the
financial statements for the year ended 30 September 2017.
The areas of judgment, estimates and assumptions in these financial statements, including the key sources of estimation uncertainty, are consistent
with those in the financial statements for the year ended 30 September 2017.
Comparative information has been revised where appropriate to conform to changes in presentation in the current reporting period and to enhance
comparability. Where there has been a material restatement of comparative information the nature of, and the reason for, the restatement is disclosed
in the relevant note.
Note 2 Non-interest income
NZ BANKING GROUP
$ millions
Six Months
Ended
31 Mar 18
Unaudited
Six Months
Ended
31 Mar 17
Unaudited
Year
Ended
30 Sep 17
Audited
Fees and commissions 157 154 330
Wealth management and insurance income 75 54 130
Trading income 43 110 158
Net ineffectiveness on qualifying hedges 4 (7) (10)
Other non-interest income 6 8 17
Total non-interest income 285 319 625
Note 3 Impairment charges/(benefits)
NZ BANKING GROUP
$ millions
Six Months
Ended
31 Mar 18
Unaudited
Six Months
Ended
31 Mar 17
Unaudited
Year
Ended
30 Sep 17
Audited
Individually assessed provisions raised 19 9 18
Reversal of previously recognised impairment charges (4) (48) (67)
Collectively assessed provisions raised/(released)5 (8) (56)
Bad debts written-off/(recovered) directly to the income statement 7 11 29
Total impairment charges/(benefits)27 (36) (76)

9
Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group
Note 4 Loans
NZ BANKING GROUP
$ millions
31 Mar 18
Unaudited
31 Mar 17
Unaudited
30 Sep 17
Audited
Overdrafts 1,236 1,184 1,296
Credit card outstandings 1,548 1,492 1,518
Money market loans 1,228 1,362 1,250
Term loans:
Housing 47,907 46,245 46,943
Non-housing 26,780 25,718 25,780
Other 1,234 1,345 1,244
Total gross loans 79,933 7 7, 3 4 6 78,031
Provisions for impairment charges on loans (376) (398) (350)
Total net loans 79,557 76,948 77,681
As at 31 March 2018, $7,539 million of housing loans, accrued interest (representing accrued interest on the outstanding housing loans) and cash
(representing collections of principal and interest from the underlying housing loans), were used by the NZ Banking Group to secure the obligations of
Westpac Securities NZ Limited (‘WSNZL’) under Westpac New Zealand’s Global Covered Bond Programme (‘CB Programme’) (31 March 2017: $7,539
million, 30 September 2017: $7,535 million). These pledged assets were not derecognised from the NZ Banking Group’s balance sheet in accordance
with the accounting policies outlined in Note 1 to the financial statements included in the Disclosure Statement for the year ended 30 September 2017.
As at 31 March 2018, the New Zealand dollar equivalent of bonds issued by WSNZL under the CB Programme was $5,506 million (31 March 2017: $3,399
million, 30 September 2017: $5,246 million).

Westpac Banking Corporation - New Zealand Banking Group10
Notes to the financial statements
Note 5 Asset quality
NZ BANKING GROUP
$ millions
31 Mar 18
Unaudited
Neither past due nor impaired 78,427
Past due but not impaired assets
Less than 30 days past due 977
At least 30 days but less than 60 days past due 160
At least 60 days but less than 90 days past due 71
At least 90 days past due 100
Total past due assets not impaired 1,308
Individually impaired assets
1
Balance at beginning of the period 173
Additions 58
Amounts written off (2)
Returned to performing or repaid (31)
Balance at end of the period 198
Total gross loans
2
79,933
Individually assessed provisions
Balance at beginning of the period 48
Impairment charges/(benefits):
New provisions 19
Reversal of previously recognised impairment charges (4)
Amounts written off (2)
Balance at end of the period 61
Collectively assessed provisions
Balance at beginning of the period 332
Impairment charges/(benefits) 5
Interest adjustments 14
Balance at end of the period 351
Total provisions for impairment charges on loans and credit commitments 412
Provision for credit commitments (36)
Total provisions for impairment charges on loans 376
Total net loans 79,557
1
The NZ Banking Group had undrawn commitments of $5 million (31 March 2017: $8 million, 30 September 2017: $4 million) to counterparties for whom drawn balances
are classified as individually impaired assets as at 31 March 2018.
2
The NZ Banking Group did not have other assets under administration as at 31 March 2018.
Note 6 Financial assets pledged as collateral
The NZ Banking Group is required to provide collateral to other financial institutions, as part of standard terms, to secure liabilities. In addition to assets
supporting the CB Programme disclosed in Note 4, the carrying value of these financial assets pledged as collateral is:
NZ BANKING GROUP
$ millions
31 Mar 18
Unaudited
31 Mar 17
Unaudited
30 Sep 17
Audited
Cash 272 767 430
Securities pledged under repurchase agreements:
Available-for-sale securities - - 19
Trading securities and financial assets designated at fair value 211 124 216
Total amount pledged to secure liabilities (excluding CB Programme) 483 891 665

11
Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group
Note 7 Deposits and other borrowings
NZ BANKING GROUP
$ millions
31 Mar 18
Unaudited
31 Mar 17
Unaudited
30 Sep 17
Audited
Certificates of deposit 555 1,617 593
Non-interest bearing, repayable at call 5,869 5,081 5,274
Other interest bearing:
At call 24,164 23,894 23,117
Term 31,595 2 7,8 3 7 30,014
Total deposits and other borrowings 62,183 58,429 58,998
The NZ Branch held no retail deposits from individuals as at 31 March 2018 (31 March 2017: nil, 30 September 2017: nil).
Deposits and other borrowings have been prepared under both the historical cost convention and by applying fair value accounting to certain products.
Refer to Note 11 for further details.
Note 8 Other financial liabilities at fair value through income statement
NZ BANKING GROUP
$ millions
31 Mar 18
Unaudited
31 Mar 17
Unaudited
30 Sep 17
Audited
Securities sold short 173 166 67
Security repurchase agreements 211 124 235
Total other financial liabilities at fair value through income statement 384 290 302
Note 9 Debt issues
NZ BANKING GROUP
$ millions
31 Mar 18
Unaudited
31 Mar 17
Unaudited
30 Sep 17
Audited
Short-term debt
Commercial paper 590 2,398 1,642
Total short-term debt 590 2,398 1,642
Long-term debt
Non-domestic medium-term notes 5,835 6,908 6,628
Covered bonds 5,487 3,386 5,236
Domestic medium-term notes 3,058 3,111 3,223
Total long-term debt 14,380 13,405 15,087
Total debt issues 14,970 15,803 16,729
Debt issues have been prepared under both the historical cost convention and by applying fair value accounting to certain products. Refer to Note 11
for further details.
Note 10 Related entities
Controlled entities of the NZ Banking Group are set out in Note 25 to the financial statements included in the Disclosure Statement for the year ended
30 September 2017. There have been no changes to the controlled entities during the period.
The total liabilities of the NZ Branch, net of amounts due to related entities as at 31 March 2018, amounted to $5,826 million (31 March 2017: $4,337
million, 30 September 2017: $5,981 million).
In November 2017, the NZ Branch repaid $200 million of funding owing to the Overseas Bank.
On 26 March 2018, $72 million of dividends were declared and paid by the following entities:
–Westpac Group Investment-NZ-Limited declared and paid a dividend of $4 million to Westpac Overseas Holdings Pty Limited;
–BT Financial Group (NZ) Limited declared and paid a dividend of $10 million to Westpac Equity Holdings Pty Limited; and
–Westpac Financial Services Group-NZ- Limited declared and paid a dividend of $58 million to Westpac Equity Holdings Pty Limited.

Westpac Banking Corporation - New Zealand Banking Group12
Notes to the financial statements
Note 11 Fair value of financial assets and financial liabilities
Fair Valuation Control Framework
The NZ Banking Group uses a Fair Valuation Control Framework where the fair value is either determined or validated by a function independent of the
transaction. This framework formalises the policies and procedures used to achieve compliance with relevant accounting, industry and regulatory
standards. The framework includes specific controls relating to:
–the revaluation of financial instruments;
–independent price verification;
–fair value adjustments; and
–financial reporting.
A key element of the Framework is the Revaluation Committee, comprising senior valuation specialists from within the Overseas Banking Group. The
Revaluation Committee reviews the application of the agreed policies and procedures to assess that a fair value measurement basis has been applied.
The method of determining fair value differs depending on the information available.
Fair value hierarchy
A financial instrument’s categorisation within the valuation hierarchy is based on the lowest level input that is significant to the fair value measurement.
The NZ Banking Group categorises all fair value instruments according to the hierarchy described below.
Valuation techniques
The NZ Banking Group applies market accepted valuation techniques in determining the fair valuation of over-the-counter derivatives. This includes
credit valuation adjustments and funding valuation adjustments, which incorporates credit risk and funding costs and benefits that arise in relation to
uncollateralised derivative positions, respectively.
The specific valuation techniques, the observability of the inputs used in valuation models and the subsequent classification for each significant product
category are outlined below.
Financial instruments measured at fair value
Level 1 instruments
The fair value of financial instruments traded in active markets based on recent unadjusted quoted prices. These prices are based on actual arm’s
length basis transactions.
The valuations of Level 1 instruments require little or no management judgment.
InstrumentBalance sheet categoryIncludes:Valuation technique
Exchange traded
products
Derivative financial
instruments
Exchange traded
interest rate futures
- derivative financial
instruments
These instruments are traded in liquid, active markets
where prices are readily observable. No modelling or
assumptions are used in the valuation.
Due from related entities
Due to related entities
Foreign exchange
products
Derivative financial
instruments
FX spot contracts
Non-asset backed
debt instruments
Trading securities and
financial assets designated at
fair value
New Zealand
Government bonds
Available-for-sale securities
Other financial liabilities at
fair value through income
statement
Level 2 instruments
The fair value for financial instruments that are not actively traded are determined using valuation techniques which maximise the use of observable
market prices. Valuation techniques include:
–the use of market standard discounting methodologies;
–option pricing models; and
–other valuation techniques widely used and accepted by market participants.

13
Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group
InstrumentBalance sheet categoryIncludes:Valuation technique
Interest rate
products
Derivative financial
instruments
Interest rate swaps and
options - derivative financial
instruments
Industry standard valuation models are used to
calculate the expected future value of payments by
product, which is discounted back to a present value.
The model’s interest rate inputs are benchmark
interest rates and active broker quoted interest rates
in the swap, bond and futures markets. Interest rate
volatilities are sourced from brokers and consensus
data providers.
Due from related entities
Due to related entities
Foreign exchange
products
Derivative financial
instruments
FX swaps and FX forward
contracts - derivative financial
instruments
Derived from market observable inputs or
consensus pricing providers using industry standard
models.
Due from related entities
Due to related entities
Asset backed debt
instruments
Trading securities and
financial assets designated at
fair value
Asset backed securities
Valued using an industry approach to value floating
rate debt with prepayment features. The main
inputs to the model are the trading margin and
the weighted average life of the security. These
inputs are sourced from a consensus data provider.
If consensus prices are not available these are
classified as Level 3 instruments.
Available-for-sale securities
Non-asset backed
debt instruments
Trading securities and
financial assets designated at
fair value
Local authority and NZ
public securities, other bank
issued certificates of deposit,
commercial paper, other
government securities, off-shore
securities and corporate bonds
Valued using observable market prices which are
sourced from consensus pricing services, broker
quotes or inter-dealer prices.
Available-for-sale securities
Other financial liabilities at
fair value through income
statement
Security repurchase agreements
and reverse repurchase
agreements over non-asset
backed debt securities with
third parties
Deposits and
other borrowings
at fair value
Deposits and other
borrowings
Certificates of deposit
Discounted cash flow using market rates offered for
deposits of similar remaining maturities.
Debt issues at fair
value
Debt issuesCommercial paper
Discounted cash flows, using a discount rate which
reflects the terms of the instrument and the timing
of  cash flows adjusted for market observable
changes in the Overseas Bank’s implied credit
worthiness.
Life insurance
assets
Life insurance assets
Local authority securities,
investment grade corporate
bonds and units in unlisted unit
trusts
Valued using observable market prices or other
widely used and accepted valuation techniques
utilising observable market inputs.
Level 3 instruments
Financial instruments valued where at least one input that could have a significant effect on the instrument’s valuation is not based on observable
market data due to illiquidity or complexity of the product. These inputs are generally derived and extrapolated from other relevant market data and
calibrated against current market trends and historical transactions.
These valuations are calculated using a high degree of management judgment.
InstrumentBalance sheet categoryIncludes:Valuation technique
Asset backed debt
instruments
Trading securities and
financial assets designated at
fair value
Residential mortgage-
backed securities
(‘RMBS’) and certain
other asset backed
securities
RMBS are classified as Level 3 as consensus prices are
not available as valuation inputs. Quotes by a third party
broker or lead manager are used to derive the fair value for
these instruments.
Interest rate
derivatives
Derivative financial
instruments
Non-vanilla interest
rate (inflation indexed)
derivatives and long-
dated NZD caps
Valued using industry standard valuation models
utilising observable market inputs which are determined
separately for each parameter. Where unobservable,
inputs will be set with reference to an observable proxy.
Note 11 Fair value of financial assets and financial liabilities (continued)

Westpac Banking Corporation - New Zealand Banking Group14
Notes to the financial statements
The table below summarises the attribution of financial instruments measured at fair value on a recurring basis to the fair value hierarchy:
NZ BANKING GROUP
31 Mar 18 (Unaudited)
$ millionsLevel 1Level 2Level 3 Total
Financial assets measured at fair value
Trading securities and financial assets designated at fair value 54 3,443 - 3,497
Derivative financial instruments - 3,533 - 3,533
Available-for-sale securities 1,183 2,372 - 3,555
Life insurance assets - 280 - 280
Due from related entities - 535 - 535
Total financial assets measured at fair value 1,237 10,163 - 11,400
Financial liabilities measured at fair value
Deposits and other borrowings at fair value - 555 - 555
Other financial liabilities at fair value through income statement 165 219 - 384
Derivative financial instruments - 3,107 - 3,107
Due to related entities 2 628 - 630
Debt issues at fair value - 590 - 590
Total financial liabilities measured at fair value 167 5,099 - 5,266
NZ BANKING GROUP
31 Mar 17 (Unaudited)
$ millionsLevel 1Level 2Level 3
1
Tot a l
Financial assets measured at fair value
Trading securities and financial assets designated at fair value 747 2,863 81 3,691
Derivative financial instruments - 3,515 3 3,518
Available-for-sale securities 1,573 2,245 - 3,818
Life insurance assets - 275 - 275
Due from related entities 4 532 - 536
Total financial assets measured at fair value 2,324 9,430 84 11,838
Financial liabilities measured at fair value
Deposits and other borrowings at fair value - 1,617 - 1,617
Other financial liabilities at fair value through income statement 91 199 - 290
Derivative financial instruments - 4,195 - 4,195
Due to related entities 4 693 - 697
Debt issues at fair value - 2,398 - 2,398
Total financial liabilities measured at fair value 95 9,102 - 9,197
NZ BANKING GROUP
30 Sep 17 (Audited)
$ millionsLevel 1Level 2Level 3
1
Tot a l
Financial assets measured at fair value
Trading securities and financial assets designated at fair value 91 3,800 58 3,949
Derivative financial instruments 1 3,419 - 3,420
Available-for-sale securities 1,556 2,531 - 4,087
Life insurance assets - 304 - 304
Due from related entities 1 409 - 410
Total financial assets measured at fair value 1,649 10,463 58 12,170
Financial liabilities measured at fair value
Deposits and other borrowings at fair value - 593 - 593
Other financial liabilities at fair value through income statement 39 263 - 302
Derivative financial instruments - 3,475 - 3,475
Due to related entities 1 574 - 575
Debt issues at fair value - 1,642 - 1,642
Total financial liabilities measured at fair value 40 6,547 - 6,587
1
Balances within this category of the fair value hierarchy are not considered material to the total trading securities and financial assets designated at fair value and
derivative financial instrument balances.
Note 11 Fair value of financial assets and financial liabilities (continued)

15
Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group
There were no material amounts of changes in fair value estimated using a valuation technique incorporating significant non-observable inputs that
were recognised in the income statement or the statement of comprehensive income of the NZ Banking Group during the six months ended 31 March
2018 (31 March 2017: no material changes in fair value, 30 September 2017: no material changes in fair value).
Analysis of movements between fair value hierarchy levels
During the period, there were no material transfers between levels of the fair value hierarchy (31 March 2017: no material transfers between levels, 30
September 2017: no material transfers between levels).
Financial instruments not measured at fair value
The following table summarises the estimated fair value of the NZ Banking Group’s financial instruments not measured at fair value:
NZ BANKING GROUP
31 Mar 18 (Unaudited)31 Mar 17 (Unaudited)30 Sep 17 (Unaudited)
$ millions
Carrying
Amount Fair Value
Carrying
Amount Fair Value
Carrying
Amount Fair Value
Financial assets
Cash and balances with central banks 2,131 2,131 1,534 1,534 1,761 1,761
Receivables due from other financial institutions 620 620 800 800 471 471
Other assets 396 396 359 359 378 378
Loans 79,557 79,638 76,948 76,968 77,681 7 7,7 1 7
Due from related entities 1,093 1,093 59 59 2,213 2,213
Total 83,797 83,878 79,700 79,720 82,504 82,540
Financial liabilities
Payables due to other financial institutions 1,170 1,170 841 841 1,043 1,043
Other liabilities 532 532 583 583 521 521
Deposits and other borrowings 61,628 61,666 56,812 56,850 58,405 58,450
Due to related entities 1,969 1,980 2,772 2,786 3,071 3,084
Debt issues 14,380 14,522 13,405 13,554 15,087 15,259
Loan capital 2,730 2,773 1,138 1,187 2,822 2,921
Total 82,409 82,643 75,551 75,801 80,949 81,278
A detailed description of how fair value is derived for financial instruments not measured at fair value is disclosed in Note 27 of the financial statements
included in the Disclosure Statement for the year ended 30 September 2017.
Note 12 Credit related commitments, contingent assets and contingent liabilities
NZ BANKING GROUP
$ millions
31 Mar 18
Unaudited
31 Mar 17
Unaudited
30 Sep 17
Audited
Letters of credit and guarantees 1,067 1,181 1,041
Commitments to extend credit 25,119 24,665 25,111
Other 10 25 10
Total undrawn credit commitments 26,196 25,871 26,162
Contingent assets
The credit commitments shown in the table above also constitute contingent assets. These commitments would be classified as loans on the balance
sheet on the contingent event occurring.
Contingent liabilities
The NZ Banking Group has contingent liabilities in respect of actual and potential claims and proceedings. An assessment of the NZ Banking Group’s likely
loss in respect of these matters has been made on a case-by-case basis and provision has been made in these financial statements where appropriate.
Additional information relating to any provision or contingent liability has not been provided where disclosure of such information might be expected to
seriously prejudice the position of the NZ Banking Group.
Note 11 Fair value of financial assets and financial liabilities (continued)

Westpac Banking Corporation - New Zealand Banking Group16
Notes to the financial statements
Note 13 Segment reporting
The NZ Banking Group operates predominantly in the consumer banking and wealth, commercial, corporate and institutional banking and investments
and insurance sectors within New Zealand. On this basis, no geographical segment reporting is provided.
The operating segment results have been presented on a management reporting basis and consequently internal charges and transfer pricing
adjustments have been reflected in the performance of each operating segment. Intersegment pricing is determined on a cost recovery basis.
The NZ Banking Group does not rely on any single major customer for its revenue base.
Comparative information for the six months ended 31 March 2017 and the year ended 30 September 2017 has been restated following changes to the
allocation of certain costs and as a result of the Overseas Bank updating its capital allocation framework. Comparative information has been restated
to ensure consistent presentation with the current reporting period. The revised presentation has no impact on total profit before income tax for the six
months ended 31 March 2017 or the year ended 30 September 2017.
The NZ Banking Group’s operating segments are defined by the customers they serve and the services they provide. The NZ Banking Group has identified
the following main operating segments:
–Consumer Banking and Wealth provides financial services predominantly for individuals;
–Commercial, Corporate and Institutional Banking provides a broad range of financial services for commercial, corporate, property finance,
agricultural, institutional and government customers, and the supply of derivatives and risk management products to the entire Westpac customer
base in New Zealand; and
–Investments and Insurance provides funds management and insurance services.
Reconciling items primarily represent:
–business units that do not meet the definition of operating segments under NZ IFRS 8 Operating Segments (‘NZ IFRS’ refers to applicable New Zealand
equivalents to International Financial Reporting Standards);
–elimination entries on consolidation/aggregation of the results, assets and liabilities of the NZ Banking Group’s controlled entities in the preparation
of the aggregated financial statements of the NZ Banking Group; and
–results of certain business units excluded for management reporting purposes, but included within the aggregated financial statements of the NZ
Banking Group for statutory financial reporting purposes.
NZ BANKING GROUP
$ millions
Consumer
Banking and
Wealth
Commercial,
Corporate and
Institutional
Investments
and
Insurance
Reconciling
ItemsTotal
Six months ended 31 March 2018 (Unaudited)
Net interest income567 359 - 17 943
Non-interest income96 137 69 (17) 285
Net operating income before operating expenses and
impairment charges
663 496 69 - 1,228
Operating expenses(342)(125)(15)(5) (487)
Impairment (charges)/benefits(28)1 - - (27)
Profit before income tax293 372 54 (5) 714
Total gross loans45,735 34,183 - 15 79,933
Total deposits and other borrowings35,259 26,369 - 555 62,183
Six months ended 31 March 2017 (Unaudited)
Net interest income508 352 1 2 863
Non-interest income118 160 61 (20) 319
Net operating income before operating expenses and
impairment charges
626 512 62 (18) 1,182
Operating expenses(366)(124)(14)14 (490)
Impairment (charges)/benefits(20)56 - - 36
Profit before income tax240 444 48 (4) 728
Total gross loans43,824 33,480 - 42 7 7, 3 4 6
Total deposits and other borrowings33,670 23,142 - 1,617 58,429
Year ended 30 September 2017 (Unaudited)
Net interest income1,053 717 1 17 1,788
Non-interest income219 288 131 (13) 625
Net operating income before operating expenses and
impairment charges
1,272 1,005 132 4 2,413
Operating expenses(708)(250)(29)(19) (1,006)
Impairment (charges)/benefits(34)97 - 13 76
Profit before income tax530 852 103 (2) 1,483
Total gross loans44,707 33,294 - 30 78,031
Total deposits and other borrowings34,044 24,361 - 593 58,998

17
Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group
Note 14 Insurance business
The following table presents the aggregate amount of the NZ Banking Group’s insurance business conducted through one of its controlled entities,
Westpac Life-NZ- Limited, calculated in accordance with the Overseas Bank’s (the registered bank) conditions of registration as at the reporting date:
NZ BANKING GROUP
$ millions
31 Mar 18
Unaudited
Total assets of insurance business 194
As a percentage of total consolidated assets of the NZ Banking Group0.20%
Note 15 Risk management
15.1 Credit risk
The NZ Banking Group’s residential mortgages by loan-to-value ratio (‘LVR’) as at 31 March 2018 (Unaudited)
LVRs are calculated as the current exposure divided by the NZ Banking Group’s valuation of the residential security at origination.
For loans originated from 1 January 2008, the NZ Banking Group utilises data from its loan system. For loans originated prior to 1 January 2008, the
origination valuation is not separately recorded and is therefore not available for disclosure. For these loans, the NZ Banking Group utilises its dynamic
LVR process to estimate an origination valuation.
Exposures for which no LVR is available have been included in the ‘Exceeds 90%’ category in accordance with the requirements of the Order.
NZ BANKING GROUP
31 Mar 18
LVR range ($ millions)
Does not
exceed 60%
Exceeds 60%
and not 70%
Exceeds 70%
and not 80%
Exceeds 80%
and not 90% Exceeds 90% Total
On-balance sheet exposures19,828 11,465 11,956 2,846 1,631 47,726
Undrawn commitments and other off-balance
sheet exposures
5,039 1,223 898 119 184 7,463
Value of exposures 24,867 12,688 12,854 2,965 1,815 55,189
NZ Banking Group’s reconciliation of residential mortgage-related amounts (Unaudited)
The table below provides the NZ Banking Group’s reconciliation between any amounts disclosed in this Disclosure Statement that relate to mortgages
on residential property.
NZ BANKING GROUP
$ millions31 Mar 18
Term loans - Housing (as disclosed in Note 4) 47,907
Reconciling items:
Unamortised deferred fees and expenses (166)
Fair value hedge adjustments (15)
Value of undrawn commitments and other off-balance sheet amounts relating to residential mortgages 9,933
Undrawn at default
1
(2,470)
Residential mortgages by LVR 55,189
1
Estimate of the amount of committed exposure not expected to be drawn by the customer at the time of default.

Westpac Banking Corporation - New Zealand Banking Group18
Notes to the financial statements
15.2 Liquidity risk
Liquid assets (Unaudited)
The table below shows the NZ Banking Group’s holding of liquid assets and represents the key liquidity information provided to management. Liquid
assets include high quality assets readily convertible to cash to meet the NZ Banking Group’s liquidity requirements. In management’s opinion, liquidity
is sufficient to meet the NZ Banking Group’s present requirements.
NZ BANKING GROUP
$ millions31 Mar 18
Cash and balances with central banks 2,131
Receivables due from other financial institutions 345
Supranational securities 1,458
NZ Government securities 1,574
NZ public securities 1,301
NZ corporate securities 2,000
Residential mortgage-backed securities 3,950
Total liquid assets 12,759
Contractual maturity of financial liabilities (Unaudited)
The table below presents cash flows associated with financial liabilities, payable at the balance sheet date, by remaining contractual maturity. The
amounts disclosed in the table are the future contractual undiscounted cash flows, whereas the NZ Banking Group manages inherent liquidity risk
based on expected cash flows.
Cash flows associated with these financial liabilities include both principal payments as well as fixed or variable interest payments incorporated into
the relevant coupon period. Principal payments reflect the earliest contractual maturity date. Derivative liabilities designated for hedging purposes are
expected to be held for their remaining contractual lives, and reflect gross cash flows over the remaining contractual term.
Derivatives held for trading and certain liabilities classified in other financial liabilities at fair value through income statement are not managed for
liquidity purposes on the basis of their contractual maturity, and accordingly these liabilities are presented in either the on demand or up to 1 month
columns. Only the financial instruments that the NZ Banking Group manages based on their contractual maturity are presented on a contractual
undiscounted basis in the following table.
Note 15 Risk management (continued)

19
Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group
NZ BANKING GROUP
31 Mar 18
$ millions
On
Demand
Up to
1 Month
Over
1 Month
and Up to
3 Months
Over
3 Months
and Up to
1 Year
Over
1 Year
and Up to
5 Years
Over
5 Years Total
Financial liabilities
Payables due to other financial institutions 713 457 - - - - 1,170
Other liabilities - 212 - - - - 212
Deposits and other borrowings 29,048 5,471 11,637 14,657 2,094 - 62,907
Other financial liabilities at fair value through income statement 173 211 - - - - 384
Derivative financial instruments:
Held for trading 2,530 - - - - - 2,530
Held for hedging purposes (net settled) - 24 63 107 183 70 447
Held for hedging purposes (gross settled):
Cash outflow - 6 14 206 1,881 596 2,703
Cash inflow - - - (159) (1,606) (547) (2,312)
Due to related entities:
Non-derivative balances 1,665 - 3 9 328 - 2,005
Derivative financial instruments:
Held for trading 539 - - - - - 539
Held for hedging purposes (gross settled):
Cash outflow - - 18 55 1,652 - 1,725
Cash inflow - - (17) (48) (1,548) - (1,613)
Debt issues - 10 412 1,725 12,708 995 15,850
Loan capital - - 14 40 229 3,017 3,300
Total undiscounted financial liabilities 34,668 6,391 12,144 16,592 15,921 4,131 89,847
Total contingent liabilities and commitments
Letters of credit and guarantees 1,067 - - - - - 1,067
Commitments to extend credit 25,119 - - - - - 25,119
Other commitments 10 - - - - - 10
Total undiscounted contingent liabilities and commitments 26,196 - - - - - 26,196
15.3 Market risk
Market risk notional capital charges (Unaudited)
The NZ Banking Group’s aggregate market risk exposure is derived in accordance with the Reserve Bank of New Zealand document ‘Capital Adequacy
Framework (Standardised Approach) (BS2A)’(‘BS2A’) and is calculated on a six monthly basis. The end-of-period aggregate market risk exposure is
calculated from the period end balance sheet information.
For each category of market risk, the NZ Banking Group’s peak end-of-day aggregate capital charge is derived by determining the maximum over the
six months ended 31 March 2018 of the aggregate capital charge for that category of market risk at the close of each business day derived in accordance
with BS2A.
The following table provides a summary of the NZ Banking Group’s notional capital charges by risk type as at the reporting date and the peak end-of-day
notional capital charges by risk type for the six months ended 31 March 2018:
Note 15 Risk management (continued)

Westpac Banking Corporation - New Zealand Banking Group20
Notes to the financial statements
NZ BANKING GROUP
31 Mar 18
$ millions Implied Risk-weighted Exposure Notional Capital Charge
End-of-period
Interest rate risk 3,216 257
Foreign currency risk 28 2
Equity risk - -
3,244 259
Peak end-of-day
Interest rate risk 4,466 357
Foreign currency risk 61 5
Equity risk - -
Interest rate sensitivity (Unaudited)
The following table presents a breakdown of the earlier of the contractual repricing date or maturity date of the NZ Banking Group’s net asset position
as at 31 March 2018. The NZ Banking Group uses this contractual repricing information as a base, which is then altered to take account of consumer
behaviour, to manage its interest rate risk.
NZ BANKING GROUP
31 Mar 18
$ millions
Up to 3
Months
Over 3
Months
and
Up to 6
Months
Over 6
Months
and
Up to
1 Year
Over
1 Year
and
Up to 2
Years
Over
2 Years
Non-
interest
Bearing Total
Financial assets
Cash and balances with central banks 1,750 - - - - 381 2,131
Receivables due from other financial institutions 617 - - - - 3 620
Other assets - - - - - 396 396
Trading securities and financial assets designated at fair value 2,742 376 40 6 333 - 3,497
Derivative financial instruments - - - - - 3,533 3,533
Available-for-sale securities - - 1,406 761 1,388 - 3,555
Loans 43,361 5,415 11,050 14,511 5,596 (376) 79,557
Life insurance assets5 - 1 - - 274 280
Due from related entities 1,088 - - - 8 532 1,628
Total financial assets 49,563 5,791 12,497 15,278 7,325 4,743 95,197
Non-financial assets 1,019
Total assets 96,216
Financial liabilities
Payables due to other financial institutions 1,168 - - - - 2 1,170
Other liabilities - - - - - 532 532
Deposits and other borrowings 40,065 8,227 6,058 1,320 644 5,869 62,183
Other financial liabilties at fair value through income statement 384 - - - - - 384
Derivative financial instruments - - - - - 3,107 3,107
Due to related entities 1,932 - - - - 667 2,599
Debt issues4,288 1,327 - 1,617 7,738 - 14,970
Loan capital 1,106 - - - 1,624 - 2,730
Total financial liabilities 48,943 9,554 6,058 2,937 10,006 10,177 87,675
Non-financial liabilities 260
Total liabilities 87,935
On-balance sheet interest rate repricing gap 620 (3,763)6,439 12,341 (2,681)
Net derivative notional principals
Net interest rate contracts (notional):
Receivable/(payable)12,614 (1,263)(5,977)(11,708)6,334
Net interest rate repricing gap 13,234 (5,026)462 633 3,653
Note 15 Risk management (continued)

21
Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group
Note 16 Concentration of funding
NZ BANKING GROUP
$ millions
31 Mar 18
Unaudited
Funding consists of
Payables due to other financial institutions 1,170
Deposits and other borrowings 62,183
Other financial liabilities at fair value through income statement 384
Due to related entities
1
1,956
Debt issues
2
14,970
Loan capital 2,730
Total funding 83,393
Analysis of funding by geographical areas
2
New Zealand 61,858
Australia 3,091
United Kingdom8,376
United States of America 2,828
Other 7,240
Total funding 83,393
Analysis of funding by industry sector
Accommodation, cafes and restaurants 366
Agriculture 1,370
Construction 1,643
Finance and insurance 31,768
Forestry and fishing 188
Government, administration and defence 2,026
Manufacturing 1,602
Mining 72
Property services and business services 5,793
Services 4,310
Trade 1,787
Transport and storage 848
Utilities 556
Households 25,353
Other 3,755
Subtotal 81,437
Due to related entities
1
1,956
Total funding 83,393
1
Amounts due to related entities, as presented above, are in respect of deposits and borrowings and exclude amounts which relate to derivatives and other liabilities.
2
The geographic region used for debt issues is based on the nature of the debt programmes. The nature of the debt programmes is used as a proxy for the location of
the original purchaser. Where the nature of the debt programme does not necessarily represent an appropriate proxy, the debt issues are classified as ‘Other’. These
instruments may have subsequently been on-sold.
Australian and New Zealand Standard Industrial Classification (‘ANZSIC’) has been used as the basis for disclosing industry sectors.

Westpac Banking Corporation - New Zealand Banking Group22
Notes to the financial statements
Note 17 Concentration of credit exposures
NZ BANKING GROUP
$ millions
31 Mar 18
Unaudited
On-balance sheet credit exposures consists of
Cash and balances with central banks 2,131
Receivables due from other financial institutions 620
Other assets 396
Trading securities and financial assets designated at fair value 3,497
Derivative financial instruments 3,533
Available-for-sale securities 3,555
Loans 79,557
Life insurance assets 5
Due from related entities 1,628
Total on-balance sheet credit exposures 94,922
Analysis of on-balance sheet credit exposures by industry sector
Accommodation, cafes and restaurants 407
Agriculture 8,205
Construction 518
Finance and insurance 9,209
Forestry and fishing 411
Government, administration and defence 6,635
Manufacturing 2,507
Mining 167
Property 6,621
Property services and business services 1,302
Services 1,831
Trade 2,160
Transport and storage 1,205
Utilities 2,429
Retail lending 49,958
Other 1
Subtotal 93,566
Provisions for impairment charges on loans (376)
Due from related entities 1,628
Other assets 104
Total on-balance sheet credit exposures 94,922
Off-balance sheet credit exposures consists of
Credit risk-related instruments 26,196
Total off-balance sheet credit exposures 26,196
Analysis of off-balance sheet credit exposures by industry sector
Accommodation, cafes and restaurants 100
Agriculture 545
Construction 667
Finance and insurance 1,731
Forestry and fishing 138
Government, administration and defence 746
Manufacturing 1,684
Mining 168
Property 1,560
Property services and business services 563
Services 689
Trade 2,053
Transport and storage 783
Utilities 1,599
Retail lending 13,170
Total off-balance sheet credit exposures 26,196
ANZSIC has been used as the basis for disclosing industry sectors.

23
Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group
Note 18 Overseas Bank and Overseas Banking Group capital adequacy
The table below represents the capital adequacy calculation for the Overseas Banking Group and Overseas Bank based on the Australian Prudential
Regulation Authority’s (‘APRA’) application of the Basel III capital adequacy framework.
%
31 Mar 18
Unaudited
31 Mar 17
Unaudited
Overseas Banking Group (excluding entities specifically excluded by APRA regulations)
1,2
Common Equity Tier 1 capital ratio 10.5 10.0
Additional Tier 1 capital ratio 2.3 1.7
Tier 1 capital ratio 12.8 11.7
Tier 2 capital ratio 2.0 2.3
Total regulatory capital ratio 14.8 14.0
Overseas Bank (Extended Licensed Entity)
1,3
Common Equity Tier 1 capital ratio 10.4 10.2
Additional Tier 1 capital ratio 2.4 1.8
Tier 1 capital ratio 12.8 12.0
Tier 2 capital ratio 2.1 2.6
Total regulatory capital ratio 14.9 14.6
1
The capital ratios represent information mandated by APRA. The capital ratios of the Overseas Banking Group are publicly available in the Overseas Banking Group’s
Pillar 3 report. This information is made available to users via the Overseas Bank’s website (www.westpac.com.au).
2
Overseas Banking Group (excluding entities specifically excluded by APRA regulations) comprises the consolidation of the Overseas Bank and its subsidiary entities except
those entities specifically excluded by APRA regulations for the purposes of measuring capital adequacy (Level 2). The head of the Level 2 group is the Overseas Bank.
3
Overseas Bank (Extended Licensed Entity) comprises the Overseas Bank and its subsidiary entities that have been approved by APRA as being part of a single Extended
Licensed Entity for the purposes of measuring capital adequacy (Level 1).
Under APRA’s Prudential Standards, Australian authorised deposit taking institutions (‘ADI’), including the Overseas Banking Group are required to
maintain minimum ratios of capital to risk weighted assets (‘RWA’), as determined by APRA. For the calculation of RWAs, the Overseas Banking Group
is accredited by APRA to apply advanced models permitted by the Basel III global capital adequacy regime. The Overseas Banking Group uses the
Advanced Internal Ratings Based (‘Advanced IRB’) approach for credit risk, the Advanced Measurement Approach (‘AMA’) for operational risk and
the internal model approach for interest rate risk in the banking book for calculating regulatory capital. APRA’s prudential standards are generally
consistent with the International Regulatory Framework for Banks, also known as Basel III, issued by the Basel Committee on Banking Supervision
(‘BCBS’), except where APRA has exercised certain discretions.
The Overseas Banking Group is required to disclose additional detailed information on its risk management practices and capital adequacy on a
quarterly basis. This information is made available to users via the Overseas Banking Group’s website (www.westpac.com.au).
The Overseas Banking Group (excluding entities specifically excluded by APRA regulations), and the Overseas Bank (Extended Licensed Entity as defined
by APRA), exceeded the minimum capital adequacy requirements as specified by APRA as at 31 March 2018.

Westpac Banking Corporation - New Zealand Banking Group24
Notes to the financial statements
Note 19 Other information on the Overseas Banking Group
Other information on the Overseas Banking Group is from the most recently published financial statements of the Overseas Banking Group for the six
months ended 31 March 2018.
Profitability31 Mar 18 Unaudited
Net profit after tax for the six months ended 31 March 2018 (A$ millions) 4,200
Net profit after tax for the 12 month period to 31 March 2018 as a percentage of average total assets 1.0%
Total assets and equity31 Mar 18 Unaudited
Total assets (A$ millions) 871,855
Percentage change in total assets over the 12 months ended 31 March 20183.8%
Total equity (A$ millions) 62,665
Asset quality31 Mar 18 Unaudited
Total individually impaired assets
1, 2
(A$ millions) 1,535
Total individually impaired assets expressed as a percentage of total assets0.2%
Total individual credit impairment allowance
3
(A$ millions) 699
Total individual credit impairment allowance expressed as a percentage of total individually impaired assets45.5%
Total collective credit impairment allowance
3
(A$ millions) 2,694
1
Total individually impaired assets are before allowances for credit impairment loss and net of interest held in suspense. Total individually impaired assets includes A$722
million of assets which are determined to be impaired, but which are not individually significant, and therefore have been grouped into pools of assets for the purpose
of collectively calculating an impairment provision.
2
Non-financial assets have not been acquired through the enforcement of security.
3
Total individual credit impairment allowance and total collective credit impairment allowance both include A$228 million of credit impairment allowance that has been
calculated collectively on groups of assets which have been determined to be impaired, but which are not individually significant.

Westpac Banking Corporation - New Zealand Banking Group
25
Conditions of registration
Westpac New Zealand conditions of registration
Westpac New Zealand has disclosed matters of non-compliance with its conditions of registration in Westpac New Zealand’s Disclosure Statement for
the six months ended 31 March 2018.
These matters have no impact on the compliance by the Overseas Bank with its conditions of registration.
Changes to conditions of registration
On 19 December 2017, the Reserve Bank advised the Overseas Bank on changes to its conditions of registration to give effect to the Reserve Bank’s
further changes to the LVR restrictions, which ease those restrictions. These changes to the conditions of registration came into effect from 1 January
2018, being:
(a) a limit of 5 per cent on new lending carried out in the relevant measurement period for residential property investment applies where the LVR is
greater than 65 per cent (previously, the required LVR was 60 per cent), and
(b) a limit of 15 percent (previously, the required limit was 10 per cent) on new non-residential property investment lending carried out in the
measurement period applies where the LVR is greater than 80 per cent (previously, the required limit was 10 per cent).

Westpac Banking Corporation - New Zealand Banking Group26
PricewaterhouseCoopers, 188 Quay Street, Private Bag 92162, Auckland 1142, New Zealand
T: +64 (9) 355 8000, F: +64 (9) 355 8001, www.pwc.com/nz
Independent auditor’s review report
To the Directors of Westpac Banking Corporation
Report on the financial statements
We have reviewed pages 4 to 24 of the Disclosure Statement for the six months ended 31 March 2018 (the
“Disclosure Statement”) of Westpac Banking Corporation – New Zealand Branch (the “Branch”), which includes
the financial statements required by Clause 26 of the Registered Bank Disclosure Statements (Overseas
Incorporated Registered Banks) Order 2014 (as amended) (the “Order”) and the supplementary information
required by Schedules 5, 7, 9, 12 and 14 of the Order. The financial statements comprise the balance sheet as at 31
March 2018, the income statement, the statement of comprehensive income, the statement of changes in equity
and the statement of cash flows for the six months then ended, and the notes to the financial statements that
include a statement of accounting policies, and selected explanatory notes for the NZ Banking Group. The NZ
Banking Group comprises the New Zealand operations of Westpac Banking Corporation.
Directors’ responsibility for the financial statements
The Directors of Westpac Banking Corporation (the “Directors”) are responsible on behalf of Westpac
Banking Corporation, for the preparation and presentation of the Disclosure Statement, which includes
financial statements prepared in accordance with Clause 26 of the Order and for such internal controls as the
Directors determine are necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In addition, the Directors are responsible, on behalf of Westpac Banking Corporation, for the preparation and
presentation of supplementary information in the Disclosure Statement which complies with Schedules 3, 5, 7, 9,
12 and 14 of the Order.
Our responsibility
Our responsibility is to express the following conclusions on the financial statements and supplementary
information presented by the Directors based on our review:
•in relation to the financial statements (excluding the supplementary information) whether, in our opinion
on the basis of the procedures performed by us, anything has come to our attention that would cause us to
believe that the financial statements have not been prepared, in all material respects, in accordance with
New Zealand Equivalent to International Accounting Standard 34: Interim Financial Reporting (NZ IAS 34)
and International Accounting Standard 34: Interim Financial Reporting (IAS 34);
•in relation to the supplementary information (excluding the supplementary information relating to credit
and market risk exposures and capital adequacy) whether, in our opinion on the basis of the procedures
performed by us, anything has come to our attention that would cause us to believe that the supplementary
information does not fairly state the matters to which it relates in accordance with Schedules 5, 7, 12 and 14 of
the Order; and
•in relation to the supplementary information relating to credit and market risk exposures and capital
adequacy whether, in our opinion on the basis of the procedures performed by us, anything has come to our
attention that would cause us to believe that the supplementary information is not, in all material respects,
disclosed in accordance with Schedule 9 of the Order.
We conducted our review in accordance with the New Zealand Standard on Review Engagements 2410: Review of
Financial Statements Performed by the Independent Auditor of the Entity (NZ SRE 2410). As the auditor of the
NZ Banking Group, NZ SRE 2410 requires that we comply with the ethical requirements relevant to the audit of
the annual financial statements.

Westpac Banking Corporation - New Zealand Banking Group
27
Independent auditor’s review report (continued)
A review in accordance with NZ SRE 2410 is a limited assurance engagement. The auditor performs procedures,
primarily consisting of making enquiries, primarily of persons responsible for financial and accounting matters,
and applying analytical and other review procedures. The procedures performed in a review are substantially
less than those performed in an audit conducted in accordance with International Standards on Auditing
(New Zealand) and International Standards on Auditing. Accordingly, we do not express an audit opinion on the
financial statements and supplementary information.
We are independent of the NZ Banking Group. Our firm carries out other services for the NZ Banking Group
in the areas of other assurance and agreed procedures. In addition, certain partners and employees of our firm
may deal with the NZ Banking Group on normal terms within the ordinary course of trading activities of the NZ
Banking Group. These matters have not impaired our independence as auditor of the NZ Banking Group.
Conclusion
We have examined the financial statements and supplementary information and based on our review, nothing has
come to our attention that causes us to believe that:
a)t he financial statements on pages 4 to 24 (excluding the supplementary information) have not been prepared
in all material respects, in accordance with NZ IAS 34 and IAS 34;
b)t he supplementary information prescribed by Schedules 5, 7, 12 and 14 of the Order, does not fairly state the
matters to which it relates in accordance with those Schedules; and
c)t he supplementary information relating to credit and market risk exposures and capital adequacy prescribed
by Schedule 9 of the Order is not, in all material respects disclosed in accordance with Schedule 9 of the
Order.
Who we report to
This report is made solely to the Directors, as a body. Our review work has been undertaken so that we might
state those matters which we are required to state to them in our review report and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Westpac Banking
Corporation and the Directors, as a body, for our review procedures, for this report, or for the conclusions we
have formed.
For and on behalf of:
Auckland
Chartered Accountant
29 May 2018

westpac.co.nz
JN15967-2 04-18