1Q19 Update

ASX
Release
MONDAY 18 FEBRUARY 2019

WESTPAC 1Q19 UPDATE AND PILLAR 3 REPORT
Westpac Banking Corporation has today released its Pillar 3 report for December
2018, along with slides providing further detail on asset quality, funding and capital.
Westpac has also announced that unaudited statutory net profit for the December
quarter 2018 (1Q19) was $1.95 billion, this compares to the quarterly average of
Second Half 2018 of statutory net profit of $1.95 bil lion.
Unaudited cash earnings
1
for 1Q19 was $2.04 billion. This compares to the quarterly
average of Second Half 2018 of $1.91 billion or $2.05 billion before remediation
charges.
Key trends within cash earnings over the quarter, relative to the quarterly average of
Second Half 2018, included:
• Net interest margins excluding Treasury and Markets were higher following
some repricing late in the 2018 financial year;
• The contribution from Treasury and Markets was lower as trading conditions
were weaker;
• The impairment charge was $204 million;
• Expenses were lower given the exit of the Hastings business and the absence
of additional costs associated with remediation;
• The quarter included $30 million (pre-tax) in insurance claims for Sydney
hailstorms. An additional $35 million (pre-tax) in claims costs (after reinsurance)
are expected from the recent Queensland floods in 2Q19; and
• No material remediation charges (or associated costs) were booked in 1Q19
although additional charges are likely to be incurred in 2Q19.
Westpac’s asset quality and capital remained strong. The Group’s common equity Tier
1 (CET1) capital ratio was 10.4% at 31 December 2018. The ratio was lower than the
10.6% reported for September 2018 after payment of Westpac’s final dividend (net of
DRP), which reduced the CET1 capital ratio by 69 bps. Excluding the dividend
payment, the CET1 capital ratio increased 49 basis points.
Stressed assets to total committed exposures (TCE) were little changed over the
quarter and no new individual loans over $10 million became impaired in 1Q19.
1
Cash earnings is a non-GAAP measure. Refer to Westpac’s Full Year 2018 Financial Results
announcement for details. Quarterly business trends excludes the impact of adopting new
accounting standards.

Australian mortgage delinquencies were 4 basis points higher over the quarter while
Australian unsecured delinquencies were also higher, up 10 basis points.
On 1 October 2018 Westpac adopted AASB 9 and AASB 15. The models for
implementation of these standards are still to be finalised and so current changes
associated with implementation are preliminary and may change. These will be
finalised with Westpac’s First Half 2019 results.
Some transitional impacts from the adoption of AASB 9 have included:
• An increase in collectively assessed provisions of $974 million;
• A reduction in retained earnings and an increase in deferred tax assets;
• A $3.9 billion reduction in risk weighted assets;
• A rise in reported stressed assets; and
• A 2 basis point increase in the CET1 capital ratio.

Prior to the announcement of Westpac’s First Half 2019 results on 6 May 2019, the
Group will release its First Half 2019 template which will provide further details of these
changes along with some other accounting and divisional changes. These changes
have no impact on the Group’s cash earnings but will impact the composition of
earnings and earnings across divisions.


For further information
Lucy Wilson
Media Relations
M. 0428 777 704
Andrew Bowden
Investor Relations
T. 02 8253 4008
M. 0438 284 863

1Q19 Update
Includes Capital,
Funding & Credit
Quality

18 February 2019
Westpac Banking Corporation | ABN 33 007 457 141
Financial results based on cash earnings unless otherwise stated. Refer to the 2018 Full Year
Investor Discussion Pack for definition.
This document should be read in conjunction with Westpac’s Pillar 3 Report December 2018,
incorporating the requirements of APS330. All comparisons in this document refer to 31
December 2018 compared to 30 September 2018 (unless otherwise stated)

Westpac Group 1Q19 Update
Summary of 1Q19
1 Remediation includes provisions for customer refunds and payments and associated costs and estimated litigation costs. 2 Internationally comparable methodology aligns with the APRA study titled ‘International
Capital Comparison Study’ dated 13 July 2015. 3 TCE is Total committed exposure. 4 The models for the implementation of these standards are still to be finalised and so current changes associated with
implementation are still preliminary and may change.
2
Overview
1Q19 cash earnings
(unaudited)
•1Q19 cash earnings of $2.04bn, up 6.9% on 2H18 quarterly average (0.5% lower than 2H18 average
excluding $281m of remediation
1
provisions)
•1Q19 net profit after tax (statutory) of $1.95bn (cash earnings adjustments $0.09bn, mostly related to fair value
losses on economic hedges)
•1Q19 includes no material remediation provisions and associated costs
Well positioned for
‘unquestionably strong’
•Common equity Tier 1 (CET1) capital ratio 10.4% at 31 Dec 2018
•Down from 10.6% at 30 Sep 2018 as capital generated over the quarter and other capital movements were
more than offset by the 2H18 dividend (net of shares issued for the dividend reinvestment plan)
•Risk weighted assets (RWA) down ($5.8bn, 1.4%); credit RWAs down $1.6bn and non-credit RWA down
$4.2bn. The implementation of AASB 9 reduced credit RWA by $3.9bn
•Internationally comparable
2
CET1 capital ratio was 15.8% at 31 Dec 2018
Credit quality remains
sound
•Credit quality metrics remain near cyclical lows
•Level of impaired assets stable with no new individual impaired loans over $10m in the quarter. Stressed
assets to TCE
3
1.14%, up 6bps (AASB 9 adoption added 7bps)
•Australian unsecured 90+ day delinquencies increased to 1.83% (up 10bps over the quarter)
Australian mortgage
portfolio
•Interest only lending was 32% of portfolio at 31 Dec 2018 (down from 35% at 30 Sep 2018)
•Investor lending growth, using APRA extended definition, 0.8% pa
•Australian mortgage 90+ day delinquencies 0.76% (up 4bps over the quarter)

Sound funding/liquidity
position
•Liquidity coverage ratio (LCR) 128%, net stable funding ratio (NSFR) 112%
•$16bn term funding raised during 4 months to 31 January 2019
Estimated impact on key
metrics from adoption of
AASB 9 and AASB 15
4
•Minimal impact to the CET1 ratio (+2bps) from AASB 9. No impact to CET1 ratio on transition to AASB 15
•Lifted accounting impairment provisions by $974m, reduced RWA by $3.9bn, and increased stressed assets
•Small impact on various asset quality metrics

Westpac Group 1Q19 Update
AASB 9 impacts
3
• Impairment provisions are [$1.0bn] higher due to forward-looking factors and lifetime expected credit losses on stage 2
loans
• The increase in accounting provisions resulted in
-A [$0.7bn] reduction in retained earnings;
-A [$0.3bn] increase in deferred tax assets;
-A [$0.3bn] lower regulatory expected loss (REL) deduction;
-The general reserve for credit loss (GRCL) adjustment of [$0.4bn] being no longer required
• Credit risk weighted assets are lower as certain loans are treated as impaired under AASB 9. This treatment results in a
higher regulatory expected loss, but a lower risk weighting on the loans
• Models are still being refined. Final balance sheet impacts of AASB 9 will be provided at 1H19
Westpac implemented AASB 9 from 1 October 2018. As the models associated with implementation are still to
be finalised, the impact for Westpac of AASB 9 may change. Final details will be provided as part of Westpac’s
1H19 update
Impacted items Estimated change Detail
Impairment provisions
Total provisions $974m
higher
•No change in individually assessed provisions
•Collectively assessed provisions $974m higher due to forward looking factors and
lifetime expected credit loss changes on loans classified as stage 2
Retained earnings $682m lower

•Retained earnings transferred to provisions
Deferred tax asset $292m higher
•$292 million added to the deferred tax asset
•The deferred tax asset is a capital deduction
Regulatory expected loss
capital deduction
$274m lower
•Increase in impairment provisions reduces the regulatory expected loss capital
deduction
General reserve for credit
losses adjustment (GRCL)
No longer required
($356m reduction)
•GRCL was a capital deduction
Credit RWA $3.9bn lower
•Credit RWA for defaulted loans are lower because the increase in accounting
provisions against these loans releases the equivalent capital previously held in
credit RWA
Stressed assets $769m higher
•More loans are now classified in the watchlist and substandard category of stressed
assets. Most of the changes are in the treatment of the small business portfolio
Performance metrics Various
•Given the changes above, AASB 9 impacts a range of credit quality and provisioning
ratios including provision coverage, stressed assets to TCE, and capital
AASB 9

34
37
38
37
39
38
40
41
43
42
44 44
45
44
9.5
10.2
10.5
10.1
9.5
9.3
10.0
10.0
10.6
10.1
10.5
10.4
10.6
10.4
0
2
4
6
8
10
12
15
20
25
30
35
40
45
50
55
Sep-15
Dec-15
Mar-16
Jun-16
Sep-16
Dec-16
Mar-17
Jun-17
Sep-17
Dec-17
Mar-18
Jun-18
Sep-18
Dec-18
Westpac CET1 capital (lhs, $bn)
Westpac CET1 capital ratio (rhs, %)
CET1 capital ratio, well positioned for ‘unquestionably strong’
Westpac Group 1Q19 Update
1 Internationally comparable methodology aligns with the APRA study titled ‘International Capital Comparison Study’ dated 13 July 2015. 2 Domestic systemically important bank. 3 APRA’s revision to the calculation
of RWA for Australian residential mortgages, which came into effect on 1 July 2016.
CET1 capital ratio (%) and CET1 capital ($bn)

Capital ratios (%)
Mar-18 Sep-18 Dec-18
CET1 capital ratio 10.5 10.6 10.4
Additional Tier 1 capital 2.3 2.2 2.4
Tier 1 capital ratio 12.8 12.8 12.8
Tier 2 capital 2.0 1.9 2.0
Total regulatory capital ratio 14.8 14.7 14.8
Risk weighted assets (RWA)

($bn) 416 425 420
Leverage ratio 5.8 5.8 5.7
Internationally comparable ratios
1

Leverage ratio 6.4 6.5 6.4
CET1 capital ratio 16.1 16.1 15.8
Capital
4
$bn %
APRA industry
guidelines 10.5%
unquestionably strong
Impact of APRA’s
changes to
mortgage RWA
3
Building for 1%
DSIB
2
buffer

CET1 capital and RWA movements
Westpac Group 1Q19 Update
Credit RWA movements ($bn)
RWA movements ($bn) CET1 capital ratio (% and bps)
5
10.63
2
47 10.43
(69) 10.65
30 Sep-18
APRA
AASB 91 Oct-18
APRA
Final
dividend
(net of DRP)
OtherDec-18
APRA
415.7
425.4
1.4
419.6
(1.6)
(4.7)
(0.9)
Mar-18Sep-18Credit RWAMarket
risk
IRRBBOtherDec-18
Down 1.4%
361.4
362.7
2.0
1.9
361.2
(3.9) (1.0)
(0.6)
Mar-18Sep-18AASB 9Business
growth
FX
impacts
Model
change
OtherDec-18
Down 0.4%
1Q19 earnings, RWA
movements and other capital
movements
Refer to slide 3 for details of
estimated AASB 9 impacts
Capital
Chart does not add through due to rounding
1 Probability of default. 2 The models for the implementation of this standard are still to be finalised and so current changes associated with implementation are still preliminary and may change.
Changes to PD models for
Corporate
1
2
2

Well progressed on FY19 term funding
1 Based on residual maturity and FX spot currency translation. Includes all debt issuance with contractual maturity greater than 13 months excluding US Commercial Paper and Yankee Certificates of Deposit. 2 Contractual maturity date for hybrids
and callable subordinated instruments is the first scheduled conversion date or call date for the purposes of this disclosure. 3 Tenor excludes RMBS and ABS. 4 WAM is weighted average maturity. 5 Perpetual sub-debt has been included in
>FY24 maturity bucket. Maturities exclude RMBS and ABS amortisation.
33
31
42
37
32
9
24
30
32
23
18
11
27
FY14FY15FY16FY17FY18
1Q19
FY19FY20FY21FY22FY23FY24
>FY24
Sub debtSenior/SecuritisationHybridCovered bond
Issuance Maturities
remaining
Term debt issuance and maturity profile
1,2,5
($bn)
6
Funding
1Q19 funding and liquidity highlights
2
8
7
18
17
7
17
10
30
30
49
43
47
16
FY17FY181Q19
>5years
5 years
4 years
3 years
2 years
1 year
5.8yrs
New term issuance by tenor
2,3
(%)
6.5yrs
WAM
4
New term issuance by type (%) New term issuance by currency (%)
66
73
67
18
13
17
5
5
4
5
16
8
4
FY17FY181Q19
Subordinated
Debt
Hybrid
Securitisation
Covered Bonds
Senior
Unsecured
4
11
2
3
4
22
21
35
49
32
1
21
32
63
FY17FY181Q19
AUD
USD
EUR
GBP
Other
4.2yrs
•LCR 128% (133% at 30 September 2018)
•NSFR 112% (114% at 30 September 2018)
•$9.1bn in term funding issued in 1Q19. A further $6.7bn issued in
January 2019
•The majority of 1Q19 new term issuance came in AUD and Euro.
Benchmark transactions included A$2.75bn 5 year senior
transaction, A$1.5bn 3 year senior transaction and A$1.4bn
Additional Tier 1 transaction, as well as €1.0bn 2 year senior
transaction and €1.0bn 5 year covered bond
Not all bars add to 100 due to rounding
Not all bars add to 100 due to rounding
Not all bars add to 100 due to rounding
Westpac Group 1Q19 Update

Well provisioned, credit quality remains sound
Westpac Group 1Q19 Update
Stressed exposures as a % of TCE
Movement in stress categories to TCE (bps)
Total impairment provisions ($m)
1 Facilities 90 days or more past due date not impaired. These facilities, while in default, are not treated as impaired for accounting purposes.
7
Credit quality
Mar-18 Sep-18 1-Oct-18 Dec-18
Total provisions to gross loans (bps) 45 43 57 57
Impaired asset provisions to impaired assets
(%)
46 46 47 48
Collectively assessed provisions to credit RWA
(bps)
75 73 99 101
1,470
1,364
867
669
869
480
422 422
426
2,408
2,196
2,225
2,275
2,344
2,316
2,330
3,605
3,640
363
389
389
388
389
323
301
4,241
3,949
3,481
3,332
3,602
3,119
3,053
4,027
4,066
Sep-12Sep-13Sep-14Sep-15Sep-16Sep-17Sep-181-Oct-18Dec-18
Overlay
Collectively assessed provisions
Individually assessed provisions
0.58
0.44
0.27
0.20
0.22
0.15 0.15
0.14 0.14 0.14
0.35
0.31
0.26
0.25
0.33
0.34
0.37 0.39
0.40
0.42
1.24
0.85
0.71
0.54
0.65
0.56
0.57 0.55
0.61
0.58
2.17
1.60
1.24
0.99
1.20
1.05
1.09
1.08
1.15
1.14
Sep-12Sep-13Sep-14Sep-15Sep-16Sep-17Mar-18Sep-181-Oct-18Dec-18
Watchlist & substandard
90+ day past due and not impaired
Impaired
Estimated AASB 9
transition added 7bps
108
7
115
0
2
(1)
(2)
114
Sep-18
AASB 9
1-Oct-18Impaired
90+ dpd
not impaired
Substandard
Watchlist
Dec-18
Estimated AASB 9
transition
1

Credit quality areas of interest
Westpac Group 1Q19 Update
Retail trade portfolio
Commercial property portfolio
Mining (including oil and gas) portfolio
New Zealand dairy portfolio
1 Includes impaired exposures. 2 Percentage of portfolio TCE.

8
Credit quality
Mar-18 Sep-18 Dec-18
Total committed exposures (TCE) $9.3bn $10.7bn $10.0bn
Lending $5.1bn $5.7bn $5.4bn
% of Group TCE 0.91 1.03 0.96
% of portfolio graded as stressed
1,2
1.72 0.99 0.92
% of portfolio in impaired
2
0.31 0.17 0.12
Mar-18 Sep-18 Dec-18
Total committed exposures (TCE) NZ$6.1bn NZ$6.3bn NZ$6.3bn
Lending NZ$5.8bn NZ$6.0bn NZ$6.1bn
% of Group TCE 0.55 0.55 0.57
% of portfolio graded as stressed
1,2
14.94 11.90 12.19
% of portfolio in impaired
2
0.47 0.36 0.33
Mar-18 Sep-18 Dec-18
Total committed exposures (TCE) $15.5bn $16.2bn $16.4bn
Lending $11.3bn $11.6bn $11.2bn
% of Group TCE 1.51 1.56 1.57
% of portfolio graded as stressed
1,2
4.67 4.84 4.60
% of portfolio in impaired
2
0.48 0.41 0.47
Mar-18 Sep-18 Dec-18
Total committed exposures (TCE) $66.3bn
$67.6bn $67.6bn
Lending $51.1bn
$52.0bn $52.0bn
% of Group TCE 6.48
6.51 6.48
% of portfolio graded as stressed
1,2
1.74 1.66 1.81
% of portfolio in impaired
2
0.28 0.23 0.21

Australian consumer unsecured lending, 3% of Group loans
Westpac Group 1Q19 Update
90+ day delinquencies (%) by State
90+ day delinquencies (%) by product
Australian consumer unsecured lending portfolio
Australian unsecured portfolio ($bn)
10
5
7
22
9
5
7
21
9
5
7
21
Credit cardsPersonal loansAuto loans
(consumer)
Total consumer
unsecured
Mar-18Sep-18Dec-18
Mar-18 Sep-18 Dec-18
Lending $21.8bn $21.1bn $20.6bn
30+ day delinquencies

(%) 3.95 3.65 3.90
90+ day delinquencies

(%) 1.71 1.73 1.83
Australian consumer unsecured lending delinquencies increased over 1Q19 in part
driven by operational issues in Collections
9
0.0
1.0
2.0
3.0
Dec-15Jun-16Dec-16Jun-17Dec-17Jun-18Dec-18
NSW/ACTVIC/TASQLDWASA/NT
Credit quality
0.0
1.0
2.0
3.0
Dec-15Jun-16Dec-16Jun-17Dec-17Jun-18
Dec-18
Total unsecured
consumer lending
Credit cardsPersonal loansAuto Finance
Introduced new hardship treatment

Australian mortgage portfolio continues to perform well
90+ day delinquencies by State (%)
Housing loan-to-value ratios (LVRs)
1
(%)
Australian mortgage delinquencies and
properties in possession (PIPs)
Mar-18 Sep-18 Dec-18
30+ day delinquencies

(bps) 144 140 146
90+ day delinquencies

(bps)
(includes impaired mortgages)
69 72 76
Consumer PIPs 398 396 444
The increase in Australian mortgage 90+ day delinquencies over 1Q19 was driven in
part by operational issues in Collections, as well as a rise in arrears in WA and NSW
Properties in possession continue to be mostly in WA and Qld, where a targeted
collections approach remains in place
10
Portfolio delinquencies (%)
Credit quality
1 LVR at origination contains RAMS while dynamic LVR does not.
0.0
1.0
2.0
3.0
Jun-15Dec-15Jun-16Dec-16Jun-17Dec-17Jun-18Dec-18
NSW/ACTVIC/TAS
QLDWA
SA/NTALL
Introduced new hardship treatment
0.0
1.0
2.0
3.0
Jun-15Dec-15Jun-16Dec-16Jun-17Dec-17Jun-18Dec-18
90+ day past due total90+ day past due investor
30+ day past due totalLoss rates
Introduced new hardship treatment
20
15
47
11
6
0
N/A
17
14
49
11
5
4
55
16
17
9
2
1
1
0
20
40
60
80
100
0<=6060<=7070<=8080<=9090<=9595<=100>100
1Q19 drawdowns LVR at origination
Portfolio LVR at origination
Portfolio dynamic LVR
Westpac Group 1Q19 Update

16
21
18
12
7
17
9
0<1 Yr1<2 Yrs2<3 Yrs3<4 Yrs4<5 Yrs5<10 Yrs10 Yrs+
Australian mortgage portfolio trends
Westpac Group 1Q19 Update
Proportion of I/O in total portfolio (%)
Mortgage lending growth (%)
Switching from I/O to P&I
1
($m)

Scheduled I/O term expiry
3

1 I/O is interest only mortgage lending. P&I is principal and interest mortgage lending. 2 New flow is based on APRA definition. 3 Excludes I/O loans that should have switched to P&I but for the previously announced
mortgage processing error. 4 Investor is as per APRA extended definition used for reporting against the 10% cap.
3,911
3,623
4,110
4,149
4,793
4,717
4,044
4,025
3,788
4,042
1Q182Q183Q184Q181Q19
Reached end of I/O periodCustomer initiated
46
40
35
32
Sep-17Mar-18Sep-18Dec-18
11
Credit quality
4.4
0.8
9.8
5.2
Oct-16Feb-17Jun-17Oct-17Feb-18Jun-18Oct-18
InvestorOwner occupied
4
(% of total I/O loans currently outstanding)

Settlements – 23% of new flows
2

Appendix 1: Definitions – Credit quality
Westpac Group 1Q19 Update
12
Appendix and Disclaimer
Impaired
assets
Includes exposures that have deteriorated to the point where full collection
of interest and principal is in doubt, based on an assessment of the
customer’s outlook, cashflow, and the net realisation of value of assets to
which recourse is held and includes:
•facilities 90 days or more past due, and full recovery is in doubt:
exposures where contractual payments are 90 or more days in arrears
and the net realisable value of assets to which recourse is held may not
be sufficient to allow full collection of interest and principal, including
overdrafts or other revolving facilities that remain continuously outside
approved limits by material amounts for 90 or more calendar days;
•non-accrual assets: exposures with individually assessed impairment
provisions held against them, excluding restructured loans;
•restructured assets: exposures where the original contractual terms
have been formally modified to provide for concessions of interest or
principal for reasons related to the financial difficulties of the customer;
•other assets acquired through security enforcement (includes other real
estate owned): includes the value of any other assets acquired as full
or partial settlement of outstanding obligations through the enforcement
of security arrangements; and
•any other assets where the full collection of interest and principal is in
doubt
Stressed assets
Includes 3 categories of facilities; watchlist and substandard, 90 days past
due and not impaired and impaired assets
Total committed
exposures
(TCE)
Represents the sum of the committed portion of direct lending (including
funds placement overall and deposits placed), contingent and pre-
settlement risk plus the committed portion of secondary market trading and
underwriting risk
Watchlist and
substandard
Loan facilities where customers are experiencing operating weakness and
financial difficulty but are not expected to incur loss of interest or principal
90 days past
due and not
impaired
Includes facilities where:
•contractual payments of interest and / or principal are 90 or more
calendar days overdue, including overdrafts or other revolving facilities
that remain continuously outside approved limits by material amounts
for 90 or more calendar days (including accounts for customers who
have been granted hardship assistance); or
•an order has been sought for the customer’s bankruptcy or similar legal
action has been instituted which may avoid or delay repayment of its
credit obligations; and
•the estimated net realisable value of assets / security to which Westpac
has recourse is sufficient to cover repayment of all principal and interest
,
or where there are otherwise reasonable grounds to expect payment in
full and interest is being taken to profit on an accrual basis.
These facilities, while in default, are not treated as impaired for accounting
purposes
Collectively
assessed
provisions
(CAP)
Loans not found to be individually impaired or significant will be collectively
assessed in pools of similar assets with similar risk characteristics. The size
of the provision is an estimate of the expected credit losses based on
unbiased forward-looking information. It is a probability-weighted estimate,
evaluating a range of possible outcomes taking into account the time value
of money, past events, current conditions and forecasts of future economic
conditions. Included in the collectively assessed provision is an economic
overlay provision which is calculated based on changes in sectors of the
economy or in the economy as a whole
Individually
assessed
provisions
or IAPs
Provisions raised for losses that have already been incurred on loans that
are known to be impaired and are assessed on an individual basis. The
estimated losses on these impaired loans is based on expected future cash
flows discounted to their present value and, as this discount unwinds,
interest will be recognised in the income statement

Appendix 1:
Definitions – Capital and liquidity
Westpac Group 1Q19 Update
13
Appendix and Disclaimer
Liquidity
Committed
liquidity facility
(CLF)
The RBA makes available to Australian Authorised Deposit-taking
Institutions a CLF that, subject to qualifying conditions, can be accessed
to meet LCR requirements under APS210 Liquidity
High quality
liquid assets
(HQLA)
Assets which meet APRA’s criteria for inclusion as HQLA in the numerator
of the LCR
Liquidity
coverage ratio
(LCR)
An APRA requirement to maintain an adequate level of unencumbered
high quality liquid assets, to meet liquidity needs for a 30 calendar day
period under an APRA-defined severe stress scenario. Absent a situation
of financial stress, the value of the LCR must not be less than 100%,. LCR
is calculated as the percentage ratio of stock of HQLA and CLF over the
total net cash out-flows in a modelled 30 day defined stressed scenario
Net stable
funding ratio
(NSFR)
The NSFR is defined as the ratio of the amount of available stable funding
(ASF) to the amount of required stable funding (RSF) defined by APRA.
The amount of ASF is the portion of an ADI’s capital and liabilities
expected to be a reliable source of funds over a one year time horizon.
The amount of RSF is a function of the liquidity characteristics and residual
maturities of an ADI’s assets and off-balance sheet activities. ADI’s must
maintain an NSFR of at least 100%
Capital
Capital ratios
As defined by APRA (unless stated otherwise)
Internationally
comparable
ratios
Internationally comparable regulatory capital ratios are Westpac’s
estimated ratios after adjusting the capital ratios determined under APRA
Basel III regulations for various items. Analysis aligns with the APRA
study titled “International Capital Comparison Study” dated 13 July 2015
Leverage ratio
As defined by APRA (unless stated otherwise). Tier 1 capital divided by
‘exposure measure’ and expressed as a percentage. ‘Exposure measure’
is the sum of on-balance sheet exposures, derivative exposures,
securities financing transaction exposures and other off-balance sheet
exposures
Risk weighted
assets or RWA
Assets (both on and off-balance sheet) are risk weighted according to each
asset’s inherent potential for default and what the likely losses would be in
case of default. In the case of non-asset-backed risks (ie. market and
operational risk), RWA is determined by multiplying the capital
requirements for those risks by 12.5

Westpac Group 1Q19 Update
Investor Relations Team
14
Contact us

Equity Investor Relations
Nicole Mehalski

Director
+61 2 8253 1667
nicole.mehalski@westpac.com.au
Andrew Bowden

Head of Investor Relations
+61 2 8253 4008
andrewbowden@westpac.com.au
Debt Investor Relations
Louise Coughlan

Director (Rating Agencies)
+61 2 8254 0549
lcoughlan@westpac.com.au
Jacqueline Boddy

Director
+61 2 8253 3133
jboddy@westpac.com.au
Retail Shareholder Investor Relations
Rebecca Plackett

Senior Manager
+61 2 8253 6556
rplackett@westpac.com.au
Danielle Stock

Senior Manager
+61 2 8253 0922
danielle.stock@westpac.com.au
Or email: investorrelations@westpac.com.au

www.westpac.com.au/investorcentre
Annual reports
Presentations and webcasts
5 year financial summary
Prior financial results

Disclaimer
The material contained in this presentation is intended to be general background information on Westpac Banking Corporation (Westpac) and its activities.
The information is supplied in summary form and is therefore not necessarily complete. It is not intended that it be relied upon as advice to investors or potential investors, who
should consider seeking independent professional advice depending upon their specific investment objectives, financial situation or particular needs. The material contained in
this presentation may include information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the
accuracy, completeness or reliability of the information.
All amounts are in Australian dollars unless otherwise indicated.
Unless otherwise noted, financial information in this presentation is presented on a cash earnings basis. Cash earnings is a non-GAAP measure. Refer to Westpac’s 2018
Full Year Financial Results (incorporating the requirements of Appendix 4E) for the twelve months ended 30 September 2018 available at www.westpac.com.au for details of
the basis of preparation of cash earnings.
This presentation contains statements that constitute “forward-looking statements” within the meaning of Section 21E of the US Securities Exchange Act of 1934. Forward-
looking statements are statements about matters that are not historical facts. Forward-looking statements appear in a number of places in this presentation and include
statements regarding our intent, belief or current expectations with respect to our business and operations, market conditions, results of operations and financial condition,
including, without limitation, future loan loss provisions, financial support to certain borrowers, indicative drivers, forecasted economic indicators and performance metric
outcomes.
We use words such as ‘will’, ‘may’, ‘expect’, 'indicative', ‘intend’, ‘seek’, ‘would’, ‘should’, ‘could’, ‘continue’, ‘plan’, ‘probability’, ‘risk’, ‘forecast’, ‘likely’, ‘estimate’, ‘anticipate’,
‘believe’, ‘aim’, or other similar words to identify forward-looking statements. These forward-looking statements reflect our current views with respect to future events and are
subject to change, certain risks, uncertainties and assumptions which are, in many instances, beyond our control, and have been made based upon management’s
expectations and beliefs concerning future developments and their potential effect upon us. There can be no assurance that future developments will be
in accordance with our expectations or that the effect of future developments on us will be those anticipated. Actual results could differ materially from those which we expect,
depending on the outcome of various factors. Factors that may impact on the forward-looking statements made include, but are not limited to, those described in the section
titled ‘Risk factors' in Westpac’s 2018 Full Year Financial Results (incorporating the requirements of Appendix 4E) for the twelve months ended 30 September 2018 (or Annual
Report for the year ended 30 September 2018) available at www.westpac.com.au. When relying on forward-looking statements to make decisions with respect to us, investors
and others should carefully consider such factors and other uncertainties and events. We are under no obligation to update any forward-looking statements contained in this
presentation, whether as a result of new information, future events or otherwise, after the date of this presentation.

Westpac Group 1Q19 Update
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