Westpac Banking Corporation/Announcement

Westpac 1H19 Presentation and Investor Discussion Pack

Half Year Results5 May 2019WBCFinancials

Westpac
2019 Interim
Results Index

Image on front

Westpac’s advertising
campaign ‘Helping customers
in their moment of need’

Image on left

Westpac’s ‘bank in a box’ up
and running in the carpark at
Annandale Central shopping
centre
2019 Interim Result Presentation 3
Investor Discussion Pack of 2019 Interim Result 33
Strategy 34
Overview
Performance discipline
Service leadership
Workforce revolution
Digital transformation
Sustainable futures
39
44
46
51
52
60
Conduct and Governance 64
Earnings drivers
Revenue
Expenses
Impairments
74
75
78
80
Credit quality 81
Capital, Funding and Liquidity 106
Divisional results
Consumer Bank
Business Bank
BT Financial Group
Westpac Institutional Bank
Westpac New Zealand
116
117
120
123
127
130
Economics 136
Appendix and Disclaimer 153
Contact us 162
Disclaimer 163
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
2

Brian Hartzer
Chief Executive Officer
Financial results throughout this presentation are in Australian dollars and are based on cash earnings unless
otherwise stated. Refer page 41 for definition. Results principally cover the 1H19, 2H18 and 1H18 periods.
Comparison of 1H19 versus 2H18 (unless otherwise stated)

Summary 1H19
4
• Disappointing 1H19 earnings compared to 2H18:
−Reported net profit down 19%, cash earnings down 14%
−Excl . m
ajor remediation & restructuring items cash earnings down 1%
• T
aking action on key priorities:
−Exiting advice; wealth strategy reset
−Remediating customer issues
−Actioning Royal Commission recommendations
−Reducing structural costs
• Balance sheet strength maintained
• Service strategy delivering for customers
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1H19 earnings snapshot
1 Prior year cash earnings comparatives have been restated for the impacts of AASB 9 & AASB 15. 2 Cash EPS is cash earnings div ided by the weighted average ordinary shares. 3 Return on equity is cash earnings
divided by average ordinary equity. 4 Cash earnings basis. 5 Major remediation and restructuring items (major items) include pro visions for estimated customer refunds, payments and associated costs, along with
restructuring costs associated with resetting the Group’s wealth strategy. For further details see slide 40.

Reported

1H19
Change
1H19 – 2H18
1
Change
1H19 – 1H18
1
Reported net profit $3,173m (19%) (24%)
Cash earnings $3,296m (14%) (22%)
Cash EPS
2

95.8c (14%) (23%)
Return on equity
3,4
10.4% (165bps) (353bps)
Margin (excl. Treasury & Markets)
4
2.04% (2bps) (12bps)
Expense to income ratio
4
49.9% Large Large
Cash earnings excluding major remediation and restructuring items
5
Cash earnings
5
$4,049m (1%) (5%)
Cash EPS
2,5

117.6c (2%) (6%)
Return on equity
3,4,5
12.8% (15bps) (114bps)
Margin (excl. Treasury & Markets)
4,5
2.09% 1bp (7bps)
Expense to income ratio
4,5
43.7% (6bps) 193bps
5

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1H19 divisional snapshot
1 Major remediation and restructuring items (major items) include provisions for estimated customer refunds, payments and associat ed costs, along with restructuring costs associated with resetting the Group’s wealth
strategy. For further details see slide 40.
Cash earnings

1H19 ($m)
Change 1H19 – 2H18

As reported

Excl. major items
1

Consumer Bank $1,514 7% -
Business Bank $1,013 (6%) 5%
BT Financial Group ($305) large (18%)
Westpac Institutional Bank $543 1% 1%
New Zealand (NZ$) $555 4% 1%
Group Businesses $7 (85%) (89%)
6

Strong balance sheet; dividend maintained
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Liquidity ratios
2
(%)
Dividends (cents per share)
Common equity Tier 1
1
(ratio % and $bn)
Stressed exposures to total committed exposure (%)
125
124
134
133
138
108
109
112
114
113
Mar-17Sep-17Mar-18Sep-18Mar-19
LCRNSFR
25
28
30
34
39
43
45
45
8.2
9.1
9.0
9.5
9.5
10.6 10.6 10.6
3
4
5
6
7
8
9
10
11
12
15
20
25
30
35
40
45
50
55
Sep-12Sep-13Sep-14Sep-15Sep-16Sep-17Sep-18Mar-19
$bnRatio (%)
2.17
1.60
1.24
0.99
1.20
1.05
1.09
1.08
1.10
Sep-12Sep-13Sep-14Sep-15Sep-16Sep-17Mar-18Sep-18Mar-19
7
1 Common equity Tier 1 capital ratio on an APRA Basel III basis. 2 LCR is Liquidity coverage ratio, NSFR is Net stable funding ratio.
82
84
86
88
90
92
93
94 94 94 94 94 94 94 94
1H121H131H141H151H161H171H181H19
Impairment charge
$333 million
(9 bps of loans)

Delivering our 2019 priorities
8
1
Deal with
outstanding issues
Structural cost
reduction
3
Momentum in
customer franchise
2
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Taking decisive action on outstanding issues
Reset wealth strategy
• Reset wealth strategy and commenced exit of personal financial advice
Cust
omer remediation
• Provided more clarity on major areas of remediation
• Approximately $200 million paid to customers to date
Roy
al Commission response
• Implementing recommendations
• Clear executive accountability
‘Get
it right, put it right’ initiative
• Continuing product reviews and simplification
• Improved complaints handling
• Working to close out legacy regulatory/compliance issues
9

1 See page 160 for definitions. 2 Metrics are 1H19 compared to 2H18 unless otherwise stated.

• Customer Service Hub live, rollout underway, new
consumer dashboard now in place
• Further roll out of “life events” campaign to
sup
port customers in times of need
• New banker desktop in Business Bank
• Property
−2 corporate sites exited
−40 branches closed
−346 A
TMs c
onsolidated
• Digitally active customers up to 4.9m
• Branch transactions down 8%
• 52% o
f accounts n
ow on eStatements
• Improved complaints handling times,
dow
n 22%
• Proactive fraud detection prevented
$5m
in customer loss
• Stability of in
frastructure improved – no
severity 1 incidents since April 2018
New customers Depth of relationship
Customer retention Cost to serve
Building momentum in customer franchise
1,2
10
Service quality

Net Promoter Score
Consumer Bank

#2
Business Bank

#1
Employee
sentiment
73%

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
• Increased new Australian banking customers by over
36,000
• General insurance gross written premiums up 3%
• Panorama – 29%
rise in advisers using
platform

Digital highlights
11
1 Australia unless otherwise stated. 2 1H19 on 2H18. 3 Launched for Bank of Melbourne, BankSA and St.George Bank. 4 Uno is an online mortgage broker. 5 Zip offers point-of-sale credit and digital payment services.
• Fully digital sales now 36%
of total (35% of NZ)
• Online TD renewals more
tha
n doubled
• New chat-b
ot ‘Red’ uses
IBM’s Watson AI
• EasyID ( N
Z) materially
improves account opening
• Digital mortgage progress
−Digital mortgage
l
a
unched
3
−Customer Service Hub
−eConveyancing up
12%
−Electronic signatures
• Credit card alert emails
• Online card limit r
eductions
• Blocked over $110,000 in
c
ard payments to online
gambling (customer opt in)
• Expanded Rei
nventure
funds to $150m, portfolio
value well exceeds
investment
• Generating real strategic
va
lue, insights and
opportunities
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
More digital sales
1,2
New features
Help managing
finances
1,2

Leader in Fintech

4
5

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Consistent investment in technology infrastructure
12
Stability and security • No severity 1 incidents since April 2018
Panorama • New reporting functionality; rolled-out
digital signatures
Customer Service
Hub (CSH)

• System live – rollout underway
• Improves mor
tgage process for customers and bankers
while reducing cost
New Payments
Platform
• Rolled out to Westpac consumer customers
• W
estpac processed one t
hird of all Osko payments
Internal systems

• New HR system improves workforce cost management
• New risk analytics platform
• Upgraded desktop s
of
tware, new teleconferencing facilities

Structural cost reduction − 1H19
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 In Australia. 2 Annualised.

146
400
124
130
Delivered
1H19
1H19
changes
flowing
to 2H19
Expected
additional
opportunities
FY19
Target
13
• Digital sales now 36% of total
1
• Reduced physical presence; branches,
ATMs, and corporate sites
• Reduced 50 tonnes of paper
2
• CSH now live, scaled roll out underway
• 20% increase in cloud storage volumes;
13 appli
cations removed; 130 APIs in use
• ~120 contracts r
eviewed/renegotiated
Simplify

$88m
Modernise
$25m
Digitise
$33m
• FTE down ~800 (net)
• Continued product simplification
• Removed ov
er
$700m
in cash turnover from branches
Productivity savings ($m)

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Summary
1 RC is Royal Commission, CGA is Westpac’s Culture, Governance and Accountability self-assessment.
• Cash earnings lower – material uplift in provisions
• Decisive action on wealth strategy and remediation
• Taking costs out: structural productivity work delivering
• Change underway to address RC & CGA
1
recommendations
• Continuing to deliver on service strategy
• Maintain focus on 2019 priorities:
14
1
Deal with
outstanding issues
Structural
cost reduction
3
Momentum in
customer franchise
2

Peter King
Chief Financial Officer
Financial results throughout this presentation are in Australian dollars and are based on cash earnings unless
otherwise stated. Refer page 41 for definition. Results principally cover the 1H19, 2H18 and 1H18 periods.
Comparison of 1H19 versus 2H18 (unless otherwise stated)

3,814
281 4,095
26
128
35
70 4,049
(305)
(753)
3,296
2H18
Add back 2H18
major items
2H18 excl.
major items
Net interest
income²
Non-interest
income²
Expenses²
Impairment
charges
Tax & NCI
1H19 excl.
major items
1H19
major items
1H19
Results impacted
by major remediation & restructuring items
1

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 Major remediation and restructuring items (major items) include provisions for estimated customer refunds, payments and associated cos ts, along with restructuring costs associated with resetting the Group’s wealth
strategy. For further details see slide 40. 2 Excludes impact of major items. 3 NCI is non-controlling interests.
Cash earnings movements ($m) 1H19 v 2H18
16
Down 1%
Down 14%
2,3

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Major/infrequent/volatile items
1 Major remediation and restructuring items (major items) include provisions for estimated customer refunds, payments and associ ated costs, along with restructuring costs associated with resetting the Group’s wealth
strategy. For further details see slide 40. 2 CVA is credit valuation adjustment. 3 Excludes capital benefit.
17
1H18 2H18 1H19
Asset sales (7) – 41
Fund manager revaluations – (13) –
Group CVA
2
(1) 13 (11)
Total cash earnings impact (8) – 30
1H18
2H18 1H19
Revenue – (268) (812)
Expenses – (112) (274)
Core earnings – (380) (1,086)
Cash earnings – (281) (753)
Infrequent/volatile items ($m after tax)
Major items
1
– by area ($m after tax)
Major items
1
– by line item ($m)
1H18
2H18 1H19
Wealth remediation

– (141) (484)
Banking remediation

– (140) (133)
Wealth reset – – (136)
Total – (281) (753)
1H18 2H18 1H19
Revenue
3
23 180 –
Expenses (37) (121) –
Core earnings (14) 59 –
Cash earnings (2) 19 –
Hastings P&L ($m)

Australian mortgage growth slowed
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 I/O is interest only mortgage lending. P&I is principal and interest mortgage lending. 2 Total excludes line of credit.
46
40
35
31
49
56
61
66
5
4
4
3
Sep-17Mar-18Sep-18Mar-19
Line of creditP&I¹I/O¹
1H18 2H18 1H19
Owner occupied growth
3 3 2
Investor growth
2 1 –
Total growth
2
3 2 1
Runoff dynamics
Mortgage growth composition (%)
18
Australian mortgages mix (%)
28.3
29.4
27.7
13.3
13.4
12.5
1H182H181H19
Runoff ($bn)Runoff of opening balance (% annualised)
Runoff (% of opening balance) 1H18 2H18 1H19
I/O
11 11 9
P&I
15 15 14

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Margins well managed in difficult environment
1 Tractor is the 3 year moving average hedge rate for hedges on capital and low rate deposits.
19
Net interest margin (bps)
3mth BBSW (%)
1.60
1.70
1.80
1.90
2.00
2.10
Jun-17Jan-18Sep-18Apr-19
Tractor rate
1
(%) Hedged capital / deposits ($bn)
2.06
2.08
2.09
2.04
0.10
0.10 0.08
0.08
2.16
2bps 2.18
1bp
1bp (1bp)
0bp
(2bps)
2.17 (5bps)
2.12
2H182H18 add
back remediation
items
2H18 excl.
remediation
items
LoansCustomer
deposits
Capital &
other
LiquidityTreasury &
Markets
1H19 excl.
remediation
items
1H19
remediation
items
1H19
Treasury & Markets impact on NIMNIM excl. Treasury & Markets
1%
2%
3%
Oct-15Dec-16Feb-18
3 year swap rate (spot)Tractor
Capital hedged
49
Deposits hedged
41

NIM excl. Treasury, Markets and remediation items up 1bp
Mar- 19

Markets & Treasury
1
income down 5% this half
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 Includes net interest income and non-interest income but excludes derivative valuation adjustments.
20
Markets customer income ($m) Markets non-customer and Treasury income ($m)
404
395
406
277
412
335
235
142
89
247
72
162
60
127
546
484
653
349
574
395
362
1H162H161H172H171H182H181H19
Markets non-customer
Treasury
465
447
482
436
448 448
438
1H162H161H172H171H182H181H19

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Non-interest income down 30%,
down 12% excl. major items
1
21
1 Analysis and comments 2H18 on 1H19 excludes impact of major items. Major remediation and restructuring items (major items) include provisions for estimated customer refunds, payments and associated cos ts,
along with restructuring costs associated with resetting the Group’s wealth strategy. For further details see slide 40.
Exit of Hastings ($180m)
General insurance catastrophe claims
($94m)
Ceasing grandfathered commission
payments, competition, platform
repricing and lower markets
WIB markets income
Asset sales (Paymark $38m, Ascalon $3m)
Cards ($19m); reduced FX fees
and annual fees
Adviser revenue ($20m)
Merchant and NZ fees
WIB – infrastructure & syndication

474
462
481
288
282 244
50
54
34
205
251
232
1,017
1,049
1

991
1
1H182H181H19
Credit cards
Adviser revenue
Other retail fees
Business & institutional
82
90
64
294
326
232
521
499
462
32
180
929
1,095
1

758
1

1H182H181H19
Hastings
Funds
Insurance
Other
576
475
565
1H182H181H19
Net Fees 6%
1
Wealth and Insurance 31%
1
Trading and Other 19%
1

4,895
5,007
99
9
31 4,767
190
84 5,041
(112)
(121)
(146)
2H18
Add back 2H18
remediation
2H18 excl.
remediation
Hastings
BAU
Structural
productivity
Reg &
compliance
Investment
1H19 excl.
wealth reset and
remediation
Wealth reset
1H19
remediation
1H19
Managing expenses through structural productivity
22
Up 1%
Down 3% excl. major remediation
& restructuring items
1
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1H19 – 2H18 Movement in expenses ($m)
Flat
1 Major remediation and restructuring items (major items) include provisions for estimated customer refunds, payments and associ ated costs, along with restructuring costs associated with resetting the Group’s wealth
strategy. For further details see slide 40.

3,546
3,527
3,480
542
621
652
566
626
635
37
121
190
112
84
4,691
5,007
5,041
1H182H181H19
Hastings
Regulation and compliance
Investment (excl. regulation)
Run costs (business as usual)
4,895
4,767
Target 1% expense reduction
1
on FY18;
$400m in productivity

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 1% reduction is based on FY18 and FY19 expenses excluding provisions for remediation and wealth reset.

Expenses ($m)
23
Expenses excluding remediation
and wealth reset
Down
1.3%
Remediation provisions
Wealth reset provisions

0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
Agriculture, forestry &
fishing
Wholesale &
retail trade
Property
Services
Property services &
business services
Construction
Manufacturing
Transport & storage
Accommodation, cafes
& restaurants
Finance & insurance
Mining
Utilities
Mar-18Sep-18Mar-19
Credit quality sound
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 TCE is total committed exposure.
24
Corporate/business stressed exposure by sector ($bn) Stressed exposures as a % of TCE
1
0.58
0.44
0.27
0.20
0.22
0.20
0.15 0.15
0.14
0.17
0.35
0.31
0.26
0.25
0.33
0.35
0.34
0.37 0.39
0.43
1.24
0.85
0.71
0.54
0.65
0.59
0.56
0.57 0.55
0.50
2.17
1.60
1.24
0.99
1.20
1.14
1.05
1.09
1.08
1.10
Sep-12Sep-13Sep-14Sep-15Sep-16
Mar-17
Sep-17
Mar-18
Sep-18
Mar-19
Watchlist & substandard
90+ day past due (dpd) and not impaired
Impaired

Mar-18 Sep-18 Mar-19
30+ day delinquencies
144bps 140bps 159bps
90+ day delinquencies
69bps 72bps 82bps
Customers ahead of repayments
1

68% 69% 69%
Realised mortgage losses
2
($m) 48 38 51
Dynamic LVR (weighted average)
52% 54% 57%
0.0
1.0
2.0
3.0
Mar-15Sep-15Mar-16Sep-16Mar-17Sep-17Mar-18Sep-18Mar-19
90+ day past due total90+ day past due investor
30+ day past due total
0.0
1.0
2.0
3.0
Mar-15Sep-15Mar-16Sep-16Mar-17Sep-17Mar-18Sep-18Mar-19
NSW/ACTVIC/TASQLD
WASA/NTALL
Australian mortgage credit quality sound
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Australian mortgage portfolio characteristics

Australian mortgage portfolio delinquencies (%)
Properties in possession (number)
1 Including offset balances. 2 Net of reinsurance costs.
25
127
162
141 141
163
128
146
122
103
133
127
129
135
152
186
382
437
398
396
482
Mar-17Sep-17Mar-18Sep-18Mar-19
WA
QLD
Other
Australian mortgages 90+ day delinquencies by State (%)
Introduced new
hardship treatment
Introduced new
hardship treatment

Well collateralised mortgage portfolio
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
17
14
49
11
5
4
0<=6060<=7070<=8080<=9090<=9595<=100>100
26
1 Dynamic LVR is the loan to value ratio taking into account the current loan balance, changes in security value based on property priced indices, offset account balances and other loan adjustments. Property valuation
source Australian Property Monitors. 2 Source: CoreLogic, 1 May 2019.
52
15
17
11
2
1
1.6
0<=6060<=7070<=8080<=9090<=9595<=100>100
Portfolio dynamic LVR
1
Portfolio LVR at origination

80% of portfolio
84% of portfolio
Negative equity remains low,
as nationally, prices are
14.5% higher relative to
5 years ago
2
Australian housing loan to value ratios (LVRs) (%) Australian housing LVRs (%)
41
27
16
9
7
3
5
7
11
4
1
2
2
4
2
NSW & ACTVic & TasQldWASA & NT
% of total portfolio by State
% of State portfolio with dynamic LVR >90%
% of State portfolio with dynamic LVR >100%

Impairment charge 9bps of loans
27
Total ($m) Collectively assessed provisions ($m) Individually assessed provisions ($m)
173
198
173

(174)
(168)
(150)

430
428
418

15
(90)
(108)

444
368
333

1H182H181H191H182H181H191H182H181H191H182H181H191H182H181H19
New IAPs
Write -backs
& recoveries
Write -offs
direct

Other movement
in Collective
provisions
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack

16.17
10.50
10.63
96
8
7
4
10.64
(77)
(7)
(25)
(5)
Mar-18
APRA
Sep-18
APRA
Cash earnings
excl. major
items¹
Final
dividend
Dividend
reinvestment
plan
Ordinary
RWA
growth
Other capital
movements
Major
items
Other itemsFX
translation
impact
Mar-19
APRA
Mar-19
Int. Comp.
CET1 ratio 10.6%
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 Major remediation and restructuring items (major items) include provisions for estimated customer refunds, payments and associ ated costs, along with restructuring costs associated with resetting the Group’s wealth
strategy. For further details see slide 40. 2 The impact of major items on the CET1 ratio incudes capital deduction for the associated deferred tax assets. 3 Internationally comparable methodology aligns with the APRA
study titled ‘International Capital Comparison Study’ dated 13 July 2015.
CET1 capital ratio (% and bps)
28
Up 1 bps
Organic +27bps
Other -26bps
3
• Further clarity on revised capital frameworks expected
2019/20
• New derivative standard expected to impact Westpac’s
CE
T1 ratio by approx. 20bps in 2H19
• New capital proposals
−Tier 1 capital of 16%
−RWA measurement changes
−Consultation closes 17 May
−WNZL has a Tier 1 capital ratio of 14.5% (Mar 19)
−Potential NZ$3.5bn – N
Z$4bn of additional capital
(based on balance sheet at Mar 19)
APRA considerations RBNZ considerations
1,2

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Considerations for 2H19
1 1% reduction is based on FY18 and FY19 expenses excluding provisions for remediation and wealth reset.
• Expect system credit growth to moderate
• Continued focus on return
• Margins: continued competition; lower interest rates; short term
funding costs
• Non -interest income will reflect impact of previously announced
wealth reset; general insurance claims elevated in 1H19
• Expenses targeting 1% reduction on FY18
1
, $400m in productivity
−Wealth reset costs in 2H19 ~$70m
• Credit quality: expected to remain in good shape, delinquencies to
reflect economic environment
29

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Operating environment
• Overall economic fundamentals remain sound
• Economic activity has slowed with GDP growth likely to end the
year at 2.2%
• Expect credit growth to remain soft across both business and
cons
umer
• Anticipating lower interest rates
• Housing in good shape but a further easing in prices likely
• Some regulatory uncertainty remains – expec
ting some clarity
through 2H19

31

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
2H19 Priorities
32
1
Deal with
outstanding issues
Structural
cost reduction
3
Momentum in
customer franchise
2
• Continue to grow customer numbers and relationship depth
• Roll out Customer Service Hub
• Further migration to digital, especially sales
• Prioritise customer refunds
• Implement recommendations from RC and CGA
1
• Deal with regulatory/litigation matters
• Committed to $400m in FY19 structural productivity
• Finalise wealth reset
1 RC is Royal Commission, CGA is Westpac’s Culture, Governance and Accountability self-assessment.

Investor
Discussion Pack
Financial results throughout this presentation are in Australian dollars and are based on cash earnings unless
otherwise stated. Refer page 41 for definition. Results principally cover the 1H19, 2H18 and 1H18 periods.
Comparison of 1H19 versus 2H18 (unless otherwise stated)

Strategy

Westpac Group at a glance: Australia’s First Bank
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 31 March 2019 Source: S&P Capital IQ, based in US$. 2 Credit Suisse analysis of expense to income ratio of world’s largest banks April 2019. 3 S&P Global Ratings, Moody’s Investors Service and Fitch Ratings respectively.
S&P Global Ratings has Westpac on a negative outlook, Moody’s Investor Services and Fitch Ratings have Westpac on a stable outlook. 4 A member of banking sector leadership group DJSI World, since 2002. Ranked leader
in Sustainalytics ESG Rating. 5 APRA Banking Statistics, March 2019 6 RBA Financial Aggregates, March 2019. 7 RBNZ, March 2019. 8 Strategic Insights December 2018, All Master Funds Admin. 9 Cash earnings basis. 10
Based on share price at 29 March 2019 of $25.92.
35
WBC
listed on
ASX & NZX
Strategy
•In its 203
rd
year, Australia’s first bank and first company, opened 1817
•Australia’s 2nd largest bank and 28
th
largest bank in the world;
ranked by market capitalisation
1

•Well positioned across key markets with a service-led strategy
focused on customers
•Supporting consumers and businesses in Australia and New Zealand
and customers with ties to these markets
•Unique portfolio of brands providing a full range of financial services
including consumer, business and institutional banking, and
wealth administration
•One of the most efficient banks globally
2
•Capital ratios are in the top quartile globally, with sound credit quality
•Credit ratings
3
AA- / Aa3 / AA-
•Leader in sustainability
4

Institutional
Bank
Westpac
New Zealand
Consumer
Bank
Business
Bank
BT Financial
Group
Pacific
Key statistics at 31 March 2019 Key financial data for First Half 2019
Reported net profit after tax

$3,173m
Cash earnings

$3,296m
Expense to income ratio
9
49.9%
Common equity Tier 1 capital ratio (APRA basis) 10.6%
Return on equity
9
10.4%
Total assets

$891bn
Market capitalisation
10
$89bn
Customers

14.2m
Australian household deposit market share
5
23%
Australian mortgage market share
6
23%
Australian business credit market share
6
18%
New Zealand deposit market share
7
19%
New Zealand consumer lending market share
7
18%
Australian wealth platforms market share
8
18%

Framing our strategic agenda
Strategy
Our
Vision
To be one of the world’s great service companies,
helping our customers, communities and people, to prosper and grow
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
36
• Balance sheet strength
• Credit quality
• Return disciplines
• Culture
• Great service
Non-negotiables
2019 Priorities
Strategic
Priorities
Targeted
Growth
Digital
Transformation
Service
Leadership
Performance
Discipline
Workforce
Revolution
Deal with
outstanding issues
Customer franchise
momentum
Structural
cost reduction

Progress on our 2019 priorities
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 Refer to pages 160 and 161 for metric definitions and details of metric provider. 2 MFI is main financial institution. 3 Str ategic insights December 2018. All Master Funds Admin.
Progress:
• Announced reset of Wealth Strategy
−Exiting personal financial advice and
mov
ing to a referral model
−Restructured BTFG businesses into
Cons
umer and Business divisions
• Raised provisions for Wealth customer
rem
ediation in 1H19 for:
−Salaried advi
sers of $127m (after tax)
−Authorised repr
esentatives of $357m
(after tax)
• Centralising the
oversight of customer
remediation with the Chief Operating Officer
• Accelerated processing of customer refunds,
paid out approximately $200m to date

Deal with outstanding issues
37
Progress:
• Increased Australian banking customer
number
s by 36k to 11.1m over 1H19
• Number 1 in Net Promotor Score (NPS) for
Bus
iness customers and Number 2 for
Consumer customers
• NZ NPS improving
−C
onsumer NPS +11 (up 3)
−Business NPS +4 (up 4)
• Deepen relationships
2

−#2 MFI consumer market s
hare (16%)
−#2 MFI SME market share

(21 %)
−#1 MFI commercial market share (26 %)
−#1 in platform funds under
administration
3
(18%)

Customer franchise momentum
1
Progress:
• $146m in productivity benef
its delivered in
1H19
• Migrated activity to digital
−52%
of accounts now use eSt
atements
−>900,000 letters sent via digital mail
−>90,000 mortgages settled via
eC
onveyancing in 1H19
• Simplified produc
ts and processes
−5 products closed
−13
applications removed
• Improvements in major platforms:
−Customer service hub (CSH) operational
in
Westpac brand, St.George brands in
2H19
−Additional functionality on Panorama
wi
th advanced reporting and
eSignatures

Structural cost reduction
Strategy

What sets Westpac apart
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Strong strategic position – consistent strategy
Sustainability leadership
1 P eer 1 and 2 are on continuing operations basis. Peers based on 1H19 results as reported.
• Strong credit quality with lowest
impaired assets to gross loans of
peers
• Capital ratios at top end of banks
glo
bally
• Provision cover at upper end of
peers
• B
alance sheet weighted to
mortgages
• Disciplined amortisation of
capi
talised software
• Only Australian Bank SEC
registered – Sarbanes Oxley
certification

• Australia’s fi
rst bank and first company, opened 1817
• First Australian bank to:
−Sign Equator Pri
nciples (2003)
−Commit to 2 degree economy (2014)
• Public support for Taskforce on Climate-rel
ated Financial Disclosures
(TCFD) recommendations (2017)
• Foundation member of United Nations Environment Program
Finance Initiatives Principles for Responsible Banking (2018)
• Member of global banking leadership group in Dow Jones
Sus
tainability Index since 2002; sector leader 10 times; ranked #17
in 2018

Conservative balance sheet
38
Strategy
• No. 1 or 2 position across key markets – all divisions well placed
• Unique portfolio of brands, reaching mor
e customers
• Strategic position in platforms and insurance, with a comparative
advant
age in platforms
• No material non-cor
e businesses

0.33
0.46
0.26
0.24
Peer 1Peer 2Peer 3WBC
28.4
28.5
29.3
30.2
Peer 1Peer 2Peer 3WBC
2.8
3.9
4.9
3.4
Peer 1Peer 2Peer 3WBC
Impaired assets to gross loans
1
(%)
Capitalised software average
amortisation period
1
(years)
Effective tax rate
1
(%)

Overview

Notable items in 1H19 and 2H18
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 Group Businesses.
40
Results
Remediation
Wealth
reset
BTFG 1H19 notable items CB BB BTFG NZ GB
1
Group
Net interest income

(47) (161) (4) - - - (212)
Non- interest income - (13) (587) - - - (600)
Expenses 31 (14) (101) - - (190) (274)
Core earnings (16) (188) (692) - - (190) (1,086)
Impairment charges - - - - - - -
Tax and non-
controlling interests
14 57 208 - - 54 333
Cash earnings

(2) (131) (484) - - (136) (753)
Remediation
2H18 notable items CB BB BTFG NZ GB
1
Group
Net interest income

(99) - - (2) (4) (105)
Non- interest income (6) - (146) (11) - (163)
Expenses (39) (5) (55) (3) (10) (112)
Core earnings (144) (5) (201) (16) (14) (380)
Impairment charges - - - - - -
Tax and non-
controlling interests
34 - 60 4 1 99
Cash earnings

(110) (5) (141) (12) (13) (281)
In 1H19 and 2H18 the Group raised provisions in
relation to certain matters. These are known
throughout this document as “notable items” and
relate to the following:
Customer remediation

The Group booked provisions of $617 million
(after tax) in 1H19, $281 million in 2H18. The
majority of the provisions related to remediation
programs for:
• Certain ongoing
advice service fees
associated with the Group’s salaried financial
planners
• Certain ongoing advi
ce service fees charged
by the Group’s authorised representatives that
provided financial planning services under
Magnitude and Securitor brands
• Refunds for certain cu
stomers that had
interest only loans that did not automatically
switch, when required, to principal and interest
loans
• Refunds to certain business customers who
were provided with business loans where they
should have been provided with loans covered
by the National Consumer Credit Protection
Act
Resetting Wealth
In March 2019, the Group announced its decision
to reset its Wealth business. In 1H19, the Group
raised provisions for restructuring and transition
costs of $190 million (after tax $136 million)

Cash earnings and reported net profit reconciliation
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 Cash earnings is not a measure of cash flow or net profit determined on a cash accounting basis, as it includes non-cash items reflected in net profit determined in accordance with AAS (Australian Accounting
Standards). The specific adjustments outlined include both cash and non-cash items. Cash earnings is reported net profit adjusted for material items to ensure they appropriately reflect profits available to ordinary
shareholders. All adjustments shown are after tax. For further details refer to page 154.

41
Results
Reported net profit and cash
earnings adjustments ($m)
2H18 1H19
Reported net profit 3,897 3,173
Fair value (gain)/
loss on economic hedges

(163) 126
Ineffective hedges 4 (5)
Adjustments related to Pendal
Group (formerly BTIM)
73 4
Treasury shares 3 (2)
Cash earnings 3,814 3,296
• Westpac Group uses a measure of performance referred to as cash earnings to assess financial
performance at both a Group and divisional level
• This measure has been used in the Australian banking market for over 15 years and management
believes it is the most effective way to assess performance for the current period against prior periods
and to compare performance across divisions and across peer companies
• To calculate cash earnings, reported net profit is adjusted for:
−Material items that key decision makers at the Westpac Group believe do not reflect the Group’s
operating performance
−Items that are not considered when dividends are recommended, such as the amortisation of
intangibles, impact of treasury shares and economic hedging impacts
−Accounting reclassifications between individual line items that do not impact reported results

Reported net profit and cash earnings
($bn)
1H19
($m)
% chg
1H19-
2H18
% chg
1H19-
1H18
Cash earnings 3,296 (14) (22)
Cash EPS (cents) 95.8 (14) (23)
Reported net profit 3,173 (19) (24)
Reported EPS
(cents)
92.3 (19) (25)
Cash earnings
1
policy
3.9
4.1
4.2
3.9
3.2
4.0
4.0
4.3
3.8
3.3
1H172H171H182H181H19
Reported profitCash earnings

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1H19 financial snapshot
1 All measures on a cash earnings basis. 2 Internationally comparable methodology aligns with the APRA study titled ‘International Capital Comparison Study’ dated 13 July 2015. 3 Total liquid assets represent cash,
interbank deposits and assets eligible for existing repurchase agreements with a central bank.
1H19
Change
1H19–
2H18
Change
1H19 –
1H18
Earnings
1
Earnings per share (cents) 95.8 (14%) (23%)
Core earnings ($m) 5,062 (14%) (23%)
Cash earnings ($m) 3,296 (14%) (22%)
Return on equity

(%) 10.4 (165bps) (353bps)
Dividend (cents per share) 94 - -
Expense to income ratio

(%) 49.9 407bps 816bps
Net interest margin

(%) 2.12 (4bps) (16bps)
Credit quality
Impairment charges to average
gross loans (bps)
9 (1bp) (4bps)
Impaired assets to gross loans (bps) 24 4bps 2bps
Impaired provisions to impaired assets (%) 45.7 (38bps) 20bps
42
Results
1H19
Change
1H19– 2H18
Change
1H19– 1H18
Balance sheet
Total assets ($bn) 891.1 1% 2%
Common equity Tier 1
(CET1) capital ratio (APRA basis) (%)
10.6 1bp 14bps
CET1 capital ratio
(Internationally comparable
2
) (%)
16.2 3bps 4bps
CET1 capital ($bn) 44.7 (1%) 2%
Risk weighted assets ($bn) 420 (1%) 1%
Loans ($bn) 714.3 1% 2%
Customer deposits ($bn) 511.6 (1%) 2%
Net tangible assets per share ($) 15.12 (2%) 1%
Funding and liquidity
Customer deposit to loan ratio (%) 71.6 (132bps) 5bps
Net stable funding ratio (%) 113 1ppt (1ppt)
Liquidity coverage ratio (%) 138 5ppts 4ppts
Total liquid assets
3
($bn) 151.6 (1%) 3%

Unchanged dividend
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Dividends per ordinary share (cents)
Ordinary dividend yield
3
(%)
Dividend considerations
Dividend payout ratio (%)
1 A 1.5% discount will be applied to the market price used to determine the number of shares issued under the DRP. The DRP disco unt has been applied to give the Group additional capital flexibility, including the
expected regulatory changes to the measurement of capital and risk weighted assets likely to be announced in 2H19. 2 DRP participation rate of 35% assumed. 3 Yield based on closing price as at 31 March or 30
September respectively.
• Sustainability of the payout ratio over the medium term
• CET1 capital ratio = unquestionably strong benchmark
• Surplus franking credits
• 1H19 Bank Levy equivalent to 4 c
en
ts per share
• Performance excluding notable items
43
93
94 94 94 94 94 94 94 94
1H152H151H162H161H172H171H182H181H19
77
74
80
80
79
79
76
85
98
49
64
72
72
51
71
68
76
64
1H152H151H162H161H172H171H182H181H19
Payout ratio (cash earnings basis)
Effective payout ratio (after DRP shares issued)¹
6.2
6.4
5.4
5.9
6.6
6.7
7.3
8.8
9.1
7.7
8.4
9.4
9.6
10.4
1H162H161H172H171H182H181H19
Ordinary yieldIncluding franking
2
Results
1H19 payout ratio
excl. notable
items 80%

4,251
111
87 4,049
(116)
(208)
(76)
(753)
3,296
1H18Net interest
income
Non-interest
income
ExpensesImpairment
charges
Tax & NCI1H19 ex-
notable
items
Notable
items
1H19
3,814
281 4,095
26
128
35
70 4,049
(305)
(753)
3,296
2H18Add back
notable
items
2H18 ex-
notable
items
Net interest
income
Non-interest
income
ExpensesImpairment
charges
Tax & NCI1H19 ex-
notable
items
Notable
items
1H19
1H19 cash earnings impacted by notable items of $753m
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 Average interest-earning assets.
Cash earnings features of 1H19– 2H18 ($m)
Cash earnings features of 1H19 – 1H18 ($m)
44
Performance discipline
1H19
$m
% Change
1H19 –
2H18
% Change
1H19 –
1H18
Net interest
income

8,389 (1) (4)
Non- interest
income
1,714 (30) (32)
Expenses (5,041) 1 7
Core earnings 5,062 (14) (23)
Impairment
charges
(333) (10) (25)
Tax and non-
controlling
interests (NCI)
(1,433) (18) (23)
Cash earnings

3,296 (14) (22)
Add back notable
items
753 168 -
Cash earnings ex
notable items
4,049 (1) (5)
Reported net
profit
3,173 (19) (24)
Down 14%
Down 22%
AIEA up 4%, margins down 11bps from
lower loan spreads, higher short-term
funding costs and lower Treasury income
Down 1%
Down 5%
AIEA
1
up 2%, margins down 1bp
Lower from no Hastings revenue $180m,
major weather insurance claims $94m
Lower funds income from platform repricing, lower volume and ceasing
grandfathered commission payments ($70m), major weather insurance
claims $66m, and lower trading income $43m

5,919
380 6,299
23
40
6,148
5,062
(5)
(107)
(24)
(78)
(1,086)
2H18
Add back
notable items
2H18 ex-
notable items
CB
BB
BTFG
WIB
NZ
Group
Businesses
1H19 ex-
notable items
Notable items
1H19
Divisional
1
contributions
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 Refer to division definitions, page 157.
45
Performance discipline
1H19 ($m) CB BB BTFG WIB NZ

Group
Businesses Group
Operating income 4,241 2,510 439 1,425 1,179 309 10,103
Expenses (1,821) (988) (872) (654) (454) (252) (5,041)
Core earnings 2,420 1,522 (433) 771 725 57 5,062
Impairment (charges)/benefits (268) (75) 1 (15) (13) 37 (333)
Tax & non-controlling interests (638) (434) 127 (213) (188) (87) (1,433)
Cash earnings 1,514 1,013 (305) 543 524 7 3,296
Add back notable items 2 131 620 - - - 753
Cash earnings ex notable items 1,516 1,144 315 543 524 7 4,049
% of Group cash earnings ex notable items

37 28 8 13 13 -
1H19 divisional core earnings movements ($m)

1H19 divisional cash earnings movements ($m)

3,814
281 4,095
59
5
18
4,049
3,296
(67)
(54)
(753)
(7)
2H18
Add back
notable items
2H18 ex-
notable items
CB
BB
BTFG
WIB
NZ
Group
Businesses
1H19 ex-
notable items
Notable
items
1H19
Down 14%
Down 2%
Down 14%
Down 1%

17.9
18.4
10.7
12.7
19.5
Mar-17Mar-18Mar-19
PeersSt.GeorgeWestpac
More customers, deeper relationships and strong balance sheet
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 Australian banking refers to Consumer Bank and Business Bank. 2 Australian retail refers to Consumer Bank, Business Bank and Private Wealth. 3 WIB includes Group Businesses. 4 In A$. 5 Refer to page 160 for
details of metric provider.
Grow customers
46
Deepen relationships Maintain balance sheet strength
10.3
10.6
10.9
11.1
1.6
1.7
1.7
1.7
1.4
1.4
1.4
1.4
13.2
13.7
14.0
14.2
Mar-16Mar-17Mar-18Mar-19
Customer numbers (#m)
Australian bankingBT and WIBNew Zealand
27
28
30
38
40
44
45
8.7
8.8
8.8
10.5
10.0
10.5
10.6
Mar-13Mar-14Mar-15Mar-16Mar-17Mar-18Mar-19
CET1 capital ratio (%) and capital ($bn)
Service leadership
122.1
134.3
143.5
144.5
Mar-16Mar-17Mar-18Mar-19
Transaction account balances ($bn)
Australian retailWIBNew Zealand
Funding composition by residual maturity (%)
Australian customers with a wealth product
5
(%)
1
2
19
193
216
244
130
126
23
1H162H161H172H171H182H181H19
Increase in customer numbers (#’000’s)
3
44
63
62
5
8
8
1
1
1
10
11
11
4
4
4
20
8
9
16
5
5
Sep-08Sep-18Mar-19
Wholesale Onshore <1yr
Wholesale Offshore <1yr
Wholesale Onshore >1yr
Wholesale Offshore >1yr
Securitisation
Equity
Customer deposits
4

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Supporting customers in life moments
47

As Australia’s oldest company, Westpac prides itself in helping
customers when they need it most, particularly in times of uncertainty
and change. As a result we have established dedicated resources to
help in these major moments
These resources include helpful guides, checklists and where to go
for help, and what products can support customers. These resources
are backed by employees who are trained in these matters and can
help customers to get on with what is important to them
Specialist help is now available for:
• planning a future with someone you love
• separating from a partner
• loss of a loved one
• having a baby
• starting a business
• dealing with fraud
• experiencing financial difficulty
• navigating the loss of a job
• helping to get big plans off the ground
• natural disasters

Overview
Service leadership

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Supporting customers in life moments
Having
a baby
Supporting customers who are planning to start (or add to) a family:
• Features on mortgages such as options to reduce repayments while on parental leave; recognition of paid parental leave and
back
to work income when applying for a new home loan
• Parental leave checklist
• Budget planners and toolkits
• Protecting your family with insurance
• Savings products such as Bump and Westpac Life
S
e
parating
from a
partner
Supporting customers who are separating. A comprehensive Divorce and Separation Hub with self-serve tools including:
• Separation guide
• Checklists
• Separation calculator (a stocktake of joint and individual assets and liabilities)
• Educational videos
• Privacy and protection referral points
F
i
nancial
hardship
Support for customers experiencing financial hardship through:
• Specialist Customer Assist teams and a dedicated support line
• Opportunity to receive free independent advice from a financial counsellor
• Dedicated online ‘hub’ providing resources and guides to help get back on track
• 27,000 customers helped with hardship assistance packages in 1H19
N
at
ural
disasters
Helping our customers, communities and employees when natural disasters hit, such as bush fires, floods and cyclones.
Disaster Relief Packages include:
• ability to defer home loan or credit card payments for up to 3 months
• loan restructuring
• access to establishment fee-fr
ee personal loans at a discounted rate
• early withdrawal of term deposits with no penalty. Customers with BT Home and Contents insurance may be able to receive
ass
istance including emergency funds and temporary accommodation
• “Bank in a box”, allows banking services to be available to customers faster in a natural disaster
Lo
ss of a
loved one
Supporting customers who are dealing with bereavement and the management of a deceased estate.
Loss of a Loved One Hub includes:
• A support guide and checklist of what you need to know and the documents you need when you manage a deceased estate
• Estate planning guide and checklist
• Automatic process for the waiver of certain fees and charges for customers (mortgage and personal loans) in estate
managem
ent
• A centralised key estate management team, providing a single point of contact
48
S
ervice leadership

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Helping customers through natural disaster
– Townsville flood case study
1 Disaster Relief Packages provided to customers to 30 April 2019. 2 Estimated gross cost for Westpac. After reinsurance, the estimated net cost is $36.5m.
49
When Townsville was struck by one- in-five -hundred year flood waters in February
2019, Westpac’s coordinated approach across banking and insurance, together with
community organisations helped affected customers. In particular, Westpac:
Donated $250,000 to flood-affected communities
$150,000 to the Salvation Army and $100,000 to the Foundation for Rural
& Regional Renewal to support disaster recovery and programs to build
local community resilience

Provided over 410 disaster relief packages to customers
1

to help make it easier for customers to manage their finances, including
providing alternative arrangements such as repayment holidays.
This comprised over:
• 60 packages across car
ds and personal lending
• 200 packages for home loans
• 150 packages for business banking products
Received 1,638 General Insurance claims from customers
The total claims from this event currently estimated at $70 million
2
.
361 claims now finalised and $13 million paid to customers
Set up its portable branch
moved across two sites in Townsville to help customers manage their
banking and insurance claims. The converted shipping container is known
as ‘bank in a box’
Service leadership
Westpac’s ‘bank in a box’ up
and running in the carpark
at Annandale Central
shopping centre

Building long term franchise value – customer service
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 Refer page 160 for metric definition and details of provider. 2 Defined as total number of complaints outstanding for 120 days or longer. 3 Refers to complaints that are subject to internal dispute resolution. Saving is
average time to resolve in March 2019 compared to September 2018.

Focus on improving the experience of customers who make a complaint:
• Group-wide culture program to change the way complaints are identified,
l
ogged and dealt with. New training completed by 93% of employees
• New operating model, centralised complaints teams under one division.
New
team established to help Customer Care teams solve complaints in the
moment
• Group-wide policy and standards around complaint handling refreshed
• I
mproved website and refreshed customer communication materials
• Established a new Customer Outcome Committee to resolve complex and
long
dated complaints
• Increased priority support for vulnerable customers, including faster
ident
ification and providing extra care
• Established Priority Assist (non-com
plaints) team with dedicated number to
support vulnerable customers
• Using complaints data to identify root causes to feed insights into product
rev
iews and development. Established a root cause monthly forum chaired
by the CEO

50
Improved complaints management
Customer satisfaction
1
Consumer and Business (mean), New Zealand (%)
Service leadership
New Zealand
Business
Consumer

7.2
7.5
7.2
7.1
7.3
Mar-17Mar-18Mar-19
WestpacSt.George brandsPeers
7.3
7.7
6.6
7.0
7.0
Mar-17Mar-18Mar-19
WestpacSt.George brandsPeers
68%
74%
71%
74%
78%
Mar-17Mar-18Mar-19
WestpacPeers

In time to resolve
complaints
3
22%
Long-dated
outstanding complaints
resolved in 1H19
2
540

• Over 1,525 leaders participated in leadership
development programs since the start of 2018, with
1,092 leaders now qualified for the Certificate of
Executive Leadership through the AGSM
• Employees have enrol
led in over 147,000 courses
on LearningBank, our online learning platform, and
obtained over 150 micro–credentials through
partnerships with AGSM, Udacity and Deakin
University

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
51
Workforce revolution delivering
Women in Leadership positions
2
(%)
LT I F R
3
(rolling 12 months) (#)
Employee culture and engagement
Learning and development Simplification
Service leadership - Navigate
44
46
49
50 50
Mar-15Mar-16Mar-17Mar-18Mar-19
0.90
0.80
0.69
0.30
0.37
Mar-15Mar-16Mar-17Mar-18Mar-19
• Employee engagement measured monthly, with six
month rolling average 73% (stable)
• Culture measured monthly, with the Culture Index
1

six month rolling average 73% (stable)
• Adopted a single whistle blower approach across
the Group. This included a dedicated “Speaking Up
Program” designed to provide our people with
protections and confidence about raising concerns

• Released PeopleHQ, a new cloud HR system for
Westpac, with enhanced position management
and workforce controls, enabling tighter
management of costs and workforce risks
• Continued organisation design reviews focusing on
structural simplification through removing
duplication and layers across the organisation

• The Navigate program continues to embed ‘Our
Compass’ into Westpac, providing our people with a
consistent understanding of our code of conduct,
values, service promise and vision. The program
focuses on clarity around ethical behaviour and
treatment of our customers
1 Culture Index measures four elements: trust and care, service orientation, agility and innovation, and risk culture. 2 Spot number at 31 March for each period. Refer page 161 for metric definition. 3 Lost time injury
frequency rate.
Workforce revolution

Four pillars of our digital strategy
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
52
3
Reducing cost to serve and
cost to change
Secure and reliable Giving customers control
Investing in Fintech
• Protecting both the Group
and customers against
security threats through
digital solutions
• Ensuring customers have
24/7 access to core digital
services
• Improving internal operational
resilience
• Leveraging data to improve
credit decision making
• Refining digital services to
provide a painless customer
experience
• Encouraging customers to
take greater control of their
financial health through
services and control features
• Creating new services to
allow customers to manage
their finances more easily
• Replacing aging infrastructure
through projects such as
Customer Service Hub, and
saving customers and
bankers time
• Streamlining customer
interactions and engagement
through digital self service
• Shifting internal data storage
to the cloud to reduce costs
• Direct investment and
investment via Reinventure,
the Group’s fintech venture
capital fund
• Accessing insights and
adjacent business
opportunities
• Creating new commercial
partnerships that generate
value for customers
• Delivering new products for
Westpac customers such as
Presto Smart
Digital transformation

Secure and reliable service
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
• Protecting customer’s through:
- Two -factor SMS authentication
- B
iometric fingerprint logon to mobile
banki
ng
- Customer location and payment
tr
iangulation to prevent fraud with real
time SMS alerts
- Real time monitoring tools and proactive
ri
sk management to identify suspicious
transactions and notify customers in real
time
- Travel notifications: en
couraging
customers to notify us of their travel
plans to prevent unauthorised overseas
transactions
- Malware indicator: inspecting online
banking activities to identify if malicious
software is present on a customer’s
device

53
Digital transformation
Protecting customers
Detection
Identifying fraudulent / suspicious behaviour quickly by
implementing security solutions such as:
•Real-time monitoring tools and Proactive Risk Manager:
Monitoring transactions real-time & identifying suspicious
transactions in milliseconds so they can be held, declined or an
alert raised for investigation. Customers are then notified and
prompted for additional validation
•Device ID: Inspecting transaction devices to determine whether
the customer is using a known device. Real time monitoring tools
provide further validation if required
10
5
9
10
5
0
2
0 0
1H152H151H162H161H172H171H182H181H19
Severity 1 IT incidents (Australia)

Giving customers control
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 eWallet include transactions via Android Pay, Fitbit Pay, Garmin Pay and Samsung Pay. 2 1H17 Connect usage is St.George only.
Continuing to develop and implement services which allows customers
to control their finances including:
• Ability to lock and unlock lost cards online
• Ability to close/cancel credit card and reduce cr
edit limits online
• Ability to place controls on spend with merchants identified as
providing gambling services
• Online transaction his
tory available for 13 months
• Historical statements, including for closed accounts
• Providing new payment methods through eWallet
1
• Ability to obtain proof of balance

Customer direct connect usage (# 000’s)

Customer control features
54
Digital transformation
0.1
1.1
2.6
3.8
5.5
1H172H171H182H181H19
347
538
709
908
1,049
1H172H171H182H181H19
31
33
41
1H182H181H19
66
282
409
491
545
1H172H171H182H181H19
2
Connecting to a call centre
directly via mobile app reducing
verification time and calls on
average by 60-90 seconds
eWallet transactions
(#m)
Online credit card limit reduction
(# 000’s)
Online card lock and unlock
(# 000’s)

eConveyancing
1
(000’s) Westpac Red interactions
Reducing cost to serve
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 Does not include RAMS.
eConveyancing (000’s)
6.0
7.2
7.7
8.4
8.9
36
43
45
48
52
Mar-17Sep-17Mar-18Sep-18Mar-19
Number (#m)eStatements (%)
Digitising processes to improve productivity and enhance the
customer experience
• More digital communication such as eConveyancing, eStatements,
and eSignatures
• Improving self service to addr
ess common issues via the Westpac
Red chatbot
• Decreasing phys
ical presence and supporting customer preference
for cashless transactions by providing different ways to pay
(wearables, eWallet, etc )

Progress on key initiatives
Accounts with eStatements
Australian ATMs (#)
55
Digital transformation
1
2
10
18
22
77
60
68
82
78
82
77
Oct-18Nov-18Dec-18Jan-19Feb-19Mar-19
Conversations (#'000s)Resolved by Red (%)
2,970
2,916
2,835
2,542
2,213
Mar-17Sep-17Mar-18Sep-18Mar-19
26.1
39.2
59.1
79.7
90.8
1H172H171H182H181H19

24
25
29
33
36
1H172H171H182H181H19
Customers preferring digital channels
1
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 Refer page 160 for definitions.
56
Digital transformation
279
287
304
313
333
329
2H161H172H171H182H181H19
Sales via digital (%)

Digital transactions (#m)
Digitally active customers (#m)
Branch transactions (#m)
4.18
4.33
4.53
4.69
4.81
4.90
Sep-16Mar-17Sep-17Mar-18Sep-18Mar-19
Up 5%
Up 2%
24.4
22.5
21.7
20.8
20.1
18.6
2H161H172H171H182H181H19
Down 11%
Down 8%
Up 5%
Down 1%

Settlement

Digital settlement
integrated with land
titles registry
Capabilities to be delivered
Customer Service Hub
Re-engineering the home ownership process

Increased
efficiency
More home
ownership
needs met at
origination
Lower cost
of change
Increased
banker
productivity
Improved
customer
experience
Leading
to:
Strategy
Digitising the end-to-end home loan origination experience by 2020
50% reduction in
customer
documents, faster
time to conditional
approval
25% reduction in
banker time spent
processing
1.7x to 1.2x
reduction in costs.
Single platform
across multiple
brands
10% more of
customer’s lifestyle
and protection needs
met
25% reduction in the
cost of mortgage
origination
Every element of the process supports providing a record of verification
Digital offer
and acceptance
Plain English terms
& conditions and online
acceptance
Simplified application
assessment / approval for
customer and banker
Digitises a number
of manual processes
Digital upload
of information
Customers can upload
documents from home
Customer application
tracker
At any time customers
have clarity on their
loan application status
Banker dashboard

Single point for bankers
to view customer information
and loan application status
Customer access
via any channel

Applications available
seamlessly across channels

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
57
Digital transformation

Reinventure – Investing in new fintech businesses
1

1 Logos are of the respective companies. 2 Increase of $50m in FY18.
Digital transformation
Comprehensive cloud-based
human resources and employee
benefits platform to streamline HR
processes
Business loan marketplace that
matches SMEs to the best lender
based on their characteristics
and needs
A natural language AI system for data
analysis targeting relatively simple
business queries that comprise 70% of
an analyst’s work in a large organisation
Open Banking API platform that provides
connectivity to over 100 financial sources
across Australia and NZ
Enables the purchase of
residential property, one ‘brick’
at a time
Peer-to-peer (P2P) online
lending platform connecting
borrowers and investors
A bitcoin wallet and platform
Helps home sellers make
decisions about who they
choose to sell their property
Full stack payments platform
Connects ordering apps, payment
devices, loyalty and reservations
platforms to any point of sale
A trust framework and secure platform
that allows users to exchange data
safely and securely
Standardises mobile forms into an easily
readable format and fillable at the tap of
a button

Enterprise cyber security
company that protects businesses
from malicious bot attacks
Enabling software development
teams to scale processes and
improve code quality
Digitised debt collection,
leveraging modern
communications, automation and
machine learning
A payment app for customers
when dining out or grabbing a
coffee on the go
New technology capabilities

Westpac is actively responding to digital threats and opportunities.
We encourage digital innovation through investing in venture capital, partnerships and direct investments.
Westpac can learn directly and gain access to emerging fintech developments.
Westpac has committed $150m to fintech venture capital fund, Reinventure
2
. Reinventure enables Westpac to access
insights and adjacent business opportunities, both in Australia and offshore.
The model also helps Westpac to source commercial partnerships that create value for customers
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
58
Uses data to shed light on high
volume crimes, improving
prevention and detection

A fund of funds for cryptocurrency
and blockchain technology

AI company that integrates neuroscience
into their platform creating capability that
not only manages complex problems but
is able to form intrinsic relationships with
humans
Smart receipts that automatically
link purchase receipts to
customers’ bank accounts

Data, AI and analytics New business models

Insights from offshore markets

AI-powered, context-as-a -service
platform, to deliver personalised
experiences to customers
B2B platform for physical retail stores that
provides insights through their AI engine
and in-store sensors
A consumer digital lending platform

New digital offers for customers
1
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 Logos are of the respective companies. 2 Zip offers point-of-sale credit and digital payment services. 3 Uno is an online mortgage broker. 4 Discovery Ag

is an agribusiness focused on optimising on-farm efficiencies.
5 Quintessence Labs creates opportunities with quantum technology that encrypts confidential data.

59
Digital transformation

3
2
4
5
Investing in
the home
ownership
ecosystem
Investing in
data, AI
and analytics
Investing in
merchant
propositions

Building on Presto Smart for Westpac customers
•Powered by Assembly software, Presto Smart
enables merchant terminals to pair with point-of-sale
(PoS) systems, eliminating manual reconciliation
•With >3000 devices currently operational, Presto
Smart is now integrated with 24 retail and
hospitality PoS providers
Strategic investment in OpenAgent
•Bringing new capability to Australian property
buyers, sellers and investors
Leveraging Data Republic to deliver advanced
data insights
•
Powered 12 new data partnerships
•Developed 15 data products
Examples of how Westpac and Reinventure’s investments are delivering

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Continued sustainability leadership
1 Funded by the Westpac Bicentennial Foundation. 2 Jobs created through the Westpac Foundation Social Scale-up grant and Many Rivers are as at 31 December 2018. 3 Australian business and institutional lending,
excluded retail, sovereign and bank exposures.
United Nations Sustainable
Development Goals alignment
Westpac’s sustainability
priority areas
1H19 outcomes (unless otherwise stated)

Helping people make better
financial decisions
•Delivered a range of financial literacy programs to individuals, businesses, not-for-profit organisations
and community groups through the Davidson Institute in Australia and through Managing Your Money
program in New Zealand
•Delivered financial capability programs for different customer segments, including 850,000 young
Australians via universities and TAFE partnerships, 498,000 women through Ruby Connection and 1.8
million older Australians via Starts at 60

Helping people by being there
when it matters most to them
•Published the 2020 Customer Vulnerability Action Plan
•Provided 496 relief packages for customers impacted by natural disasters across Australia
•Launched a series of Life Moments campaigns to assist customers and their families going through
difficult circumstances such as "loss of a loved one" or "divorce and separation", providing practical
tools and resources to guide them
•Established a dedicated customer care team to support Indigenous Australians in remote communities

Helping people create a
prosperous nation
•$4.2m in educational scholarships to the next 101 Westpac Scholars, bringing the cohort to 431
1

•Westpac Foundation job creation grants to social enterprises helped to create 364 jobs
1
for vulnerable
Australians
•Supported the development of 174 businesses through our Many Rivers partnership. Since its
establishment the partnership has created jobs
2
for 2,087 people, with 763 identifying as Indigenous
•Increased committed exposure to climate change solutions to $10.1bn at 31 March 2019

A culture of doing the right thing
•Programs underway to rebuild trust, strengthen governance and deliver more consistent customer
outcomes
•Navigate training to reinforce Our Compass, with sessions facilitated by people leaders to continue the
conversation within teams
•73% of employees surveyed in 1H19 feel safe to speak up
•Launched the “Spot it, Log it and Own it” internal campaign, promoting an improved culture of
complaints handling

The fundamentals – sustainability
policies, action plans and
frameworks
•Launched the world’s first Green Tailored Deposit certified by internationally recognised Climate Bonds
Initiative (CBI)
•Announced our commitment in April 2019 to source 100% of global electricity consumption through
renewable energy sources by 2025
•Analysed the transition risks to our Australian Business and Institutional lending
3
under a 1.5-degree
climate scenario
60
Sustainable futures
Further information on Westpac’s Sustainability strategy and progress on strategic priorities is available at www.westpac.com.au/sustainability

1 Data for 1H19 or as at 31 March 2019 unless otherwise stated. 2 Diverse suppliers includes businesses at least 51% owned and controlled by indigenous Australians or women. Also inc ludes Australian Disability
Enterprises and social enterprises. 3 Source: Corporate Tax Transparency Report 2016 - 2017, published December 2018. 4 Represents percentage of employees that voted.
Customers Employees Community Suppliers Investors Economy Environment
Delivering sustainable value for all stakeholders
1
Sustainable futures
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
61
14.2m
Customers
Provided
$30bn
New home loans
in Australia
Over
27,000
Customers supported
through Westpac
Group Assist
37,371
Employees

50%
Women in
Leadership
positions
$4.2m
Awarded in
educational
scholarships to the
next 101 Westpac
Scholars

$1.48bn
Committed exposure
to social and
affordable housing
sector
$2.9bn
Spent with suppliers
in Australia

$2.1m
Spent with
Indigenous
Australian suppliers

10.4%
Cash return
on equity
$3.2bn
In dividends to
shareholders
$1.4bn
Income tax
1H19

Provided
$9bn
New business
lending in Australia
(excludes Institutional)
+620k
shareholders
and more via
super funds
3
rd

Largest tax payer in
Australia
3

90%
Of employees
4

endorsed new
Enterprise
Agreement.
Effective 1
January 2019

$2.6bn
Paid to
employees
95.8
Cash earnings per
ordinary share (cents)
30.2%
Effective tax rate

$193m

Bank Levy
$10.1bn
Committed exposure
to climate change
solutions
$2.4bn
To facilitate climate
solutions
17 years
Recognised as a global
banking leader in the Dow
Jones Sustainability
Indices for 17 years in a
row

34.3%
Effective tax rate
including the Bank Levy

$131m
In community
contributions in FY18
$6.8m
Spent with diverse
Australian suppliers
2
100%
Of global electricity
consumption through
renewable energy
sources by 2025
~500
relief packages for
customers
impacted by
natural disasters

46.9
29.7
12.2
3.1
2.7
3.1
2.3
Green buildings
Renewable energy
Low carbon
transport
Adaptation
infrastructure
Forestry
Waste
Other
Climate-related metrics
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 Exposures in WIB only. TCE is total committed exposure. 2 Australia only. NEM benchmark is sourced from Australian Energy Market Operator. 3 Data reported annually.
62
Sustainable futures
Climate change solutions exposure
(% of TCE)

Emissions intensity (tCO
2
-e/MWh)
2,3
Electricity generation exposure
(% of TCE)
1,3
Total scope 1, 2 and 3 emissions
(tCO
2
-e, 000s)
3
Climate change solutions exposure
($bn of TCE)
Mining exposure ($bn)

6.2
7.0
9.1
10.1
Sep-16Sep-17Sep-18Mar-19
220
203
194
FY16FY17FY18
71.4
14.1
11.8
1.9
0.8
Renewable energy
Gas
Black coal
Brown coal
Liquid fuel
0.38
0.36
0.28
0.90
0.86
0.82
FY16FY17FY18
Westpac electricity generation portfolio
National electricity market (NEM) benchmark
2020 target
TCE at 30 September 2018 $3.5bn
TCE at 31 March 2019 $10.1bn
9.3
5.3
3.5
0.4
10.7
5.4
3.9
1.4
9.8
5.6
3.4
0.8
TotalNon-fossil fuelOil and gasCoal - thermal &
metallurgical
Mar-18Sep-18Mar-19

0.4%
1.7%
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Transition risk – key points
Physical risk – key points
Continued alignment with the TCFD
Portfolio physical risk – 4 degree scenario
• Westpac assessed potential transition risks (policy, legal, technology and
market changes related to climate change)
• Analysis focused on our current Australian Business and Institutional
lendi
ng
1
and exposure to sectors that may face growth constraints under
1.5
2
and updated 2 degree scenarios by 2030 and 2050
• Approximately 2.7%
of the portfolio is exposed to sectors that may
experience higher risk in a transition to a 1.5 degree economy by 2030
• Approximately 0.9% of the portfolio is exposed to sectors that may
exper
ience higher risk in a transition to a 2 degree economy by 2030
• Westpac assessed potential physical risks
3
(financial impacts of changes
in climate patterns and extreme weather events)
• Analysis focused on the Australian mortgage portfolio and exposure to
post
codes that may face increased physical risk under a 4 degree
scenario
• Approximately 1.7% of the portfolio is exposed to postcodes that may
exper
ience higher physical risk by 2050 under a 4 degree scenario
• Data presented shows the share of current exposure to postcodes that
may
experience higher physical risk at intervals of 2030 and 2050 under
our IPCC RCP 8.5 Scenario
4

63
Share of current portfolio exposed to higher physical risk (%)
1 Australian Business and Institutional lending, excludes retail, sovereign, and bank exposures. 2 1.5 degree scenario based on the ‘P2’ pathway articulated in the Intergovernmental Panel on Climate Change’s report – Global Warming of 1.5°C. 2
degree disclosures incorporate multiple scenarios including the IRENA REMap, IEA SDS, IPCC (presented according to updated methodology), and those described in Westpac’s Sustainability Performance Report, 2016 (page 52). 3 Five natural
perils were assessed: inundation, soil contraction, floods, wind and cyclones, and bushfires. 4 For further information see Westpac’s 2018 Sustainability Performance Report (page 56).
Sustainable futures
Climate-related disclosures – scenario analysis
2030
2050
• Westpac continues to integrate the consideration of climate-related risks
and opportunities into business operations. This includes alignment with
the recommendations of the Task Force on Climate-related Financial
Disclosures (TCFD)
• Climate change-rel
ated risks are managed within the Group’s
sustainability, and wider risk management framework

Conduct and Governance

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Rebuilding trust is integral to our service strategy
The Royal Commission and other regulator and government-led inquiries have highlighted shortcomings in the financial services industry, including
in the management of non-financial risks, incentive models and treatment of customers.
Westpac has taken important lessons from the findings of these inquiries, and from our own assessments, including our Culture, Governance and
Accountability (CGA) self-assessment. These lessons can be categorised under three areas:

65
Conduct and governance
Westpac is committed to strengthening the business and restoring trust – change is underway
• More focus is needed to increase maturity in the management of non-financial risks to be consistent with financial
risks
• The underlying risks in the financial planning business were underestimated
• Some employee remuneration arrangements inadvertently contributed to poor behaviour
Non-financial risk
management
• The design and performance of our products did not always lead to appropriate outcomes for customers
• There was too much complexity in certain product sets
• Product design processes relied too heavily on manual intervention and wor
k-arounds
• Some errors could have been identified and remediated sooner
Product design,
performance, and
remediation
• Customer complaints were not sufficiently understood and analysed and, in many cases, they were not
dealt with promptly
• Insufficient care was taken for some customers in vulnerable situations
• There were too many long -outstanding complaints and insufficient escalation processes
• Customer feedback could have been better addressed
Complaints and
customer care
Lessons

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Coordinated programs of work underway
Westpac’s response to the lessons outlined on the prior page represent a turning point for the Group. A coordinated program of work brings
together actions which reinforce our service strategy and embed more deeply the ‘customer first’ philosophy that is core to our vision of being one
of the world’s great service companies
66
Conduct and governance
• Response to the 51 recommendations applicable to Westpac is underway with Group Executive accountability and
Board oversight
Royal Commission
response plan
1
• New division created to centralise and improve customer complaint management
• Implementing Bank
ing Code of Practice
Customer care
transformation
5
Culture, Governance,
Accountability (CGA)
self-assessment
• CGA self -as
sessment completed and provided to APRA in November 2018
• Identified a range of strengths, shortcomings and common behaviours
• Commenced a two year program overseen by the Board

2

• Completed early implementation of Sedg
wick recommendations for employees
• Implemented the Bank Executive Accountability Regime (BEAR)
• Rolled out new performance management framework focused on behaviours first
• New Group consequence management framework in place
• Reviewing executive remuneration framework

Remuneration
and accountability
3

Product design,
performance, and
remediation
• Commitment to deal with outs
tanding issues and refund customers as quickly as possible
• As part of our ‘get it ri
ght, put it right’ initiative, proactively identifying issues so they don’t reoccur
• Ongoing product and service reviews to ensure the
Group delivers the right outcomes for customers (and if
necessary, make further changes)
• Refunded approximately $200 million to c
ustomers to date

4

10
51
25
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack

Royal Commission response plan
67

Conduct and governance
The Royal Commission Final Report’s recommendations raise important points of policy, principle and behaviour for the industry and regulators.
Westpac is actively responding to the findings with a detailed response plan that has Board oversight
76
Recommendations
Not applicable to
Westpac
But will require action
from other industry
participants

Preparing for
implementation
Preparatory work is
underway or further
guidance from
government /
regulators required
before substantive
work can commence
Implemented
or underway
(e.g. Removal of
grandfathered
commission payments
for its financial planners
and Sedgwick Review
recommendations for
employees)

Adopt the spirit of the report
• Do not t
ake a technical approach to
interpreting and implementing
recommendations
Be proactive
• Move ahead
of the legislative and
regulatory agenda where we are able
Actively participate
• Engage constructively to ensure
positive outcomes for customers and
the economy
Transparency
• Be open about
our response and
update on our progress
Principles Implementation underway Responsibility
Division #
Consumer 14
Business 14
Enterprise Services 7
Human Resources 8
Risk 4
Customer and Corporate Relations 1
Shared across divisions 3
Total 51
1
Executive accountability for Westpac’s
response to the 51 recommendations
applicable to Westpac
1
1
2
3
4
1 Aligns to new Group structure with major BT
Financial Group businesses realigned to Consumer
and Business divisions

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack

Royal Commission response plan implementation examples
68
Conduct and governance
A national scheme of farm debt mediation should be enacted
Farm debt
mediation
Implementation of Westpac’s Royal Commission response plan is underway. Examples of some recommendations, along with our progress and
considerations, are set out below

Grandfathering provisions for conflicted remuneration should
be repealed as soon as is reasonably practicable

Grandfathered
commissions
Amending the
Banking Code
• Banks will work with customers: who live in remote ar
eas or
who are not adept in using English; to identify a suitable way
for those customers to access and undertake their banking;
• If a customer has difficulty proving their identity, and
identifies as an Aboriginal or Torres Strait Islander person,
the bank will follow AUSTRAC’s guidance about identification
and verification;
• Without prior express agreement with the customer, banks
wi
ll not allow informal overdrafts on basic accounts; and
• Banks will not charge dishonour fees on basic accounts.
• Ceased the paym
ent of grandfathered financial advice commissions to salaried
advisers from 1 October 2018
• Invited third party advisers to stop accepting grandfathered commissions

• Established a dedicated telephone support service for Indigenous customers in
December 2018
• We already follow AUSTRAC’s guidance through our Remote Account Opening
Policies and Procedures which provide flexibility and a number of options for the
verification of identity of Indigenous customers in remote communities
• Prevented informal overdrafts on Westpac's basic, fee-free account for recipients of
government benefits and no dishonour fees are charged to these account holders

• Westpac has advocated for a harmonised farm debt mediation scheme. We are
cur
rently engaged with the Department of Agriculture and Water Resources to
provide feedback on the implementation of this recommendation
Recommendation
Progress / considerations
Compensation
scheme of last
resort
Sedgwick
Review
• Implemented recommendations of the Sedgwick Review for employees from 1
October 2018, two years ahead of schedule
• Made changes to mortgage broker remuneration from 1 January 2019

Topic area
The three principal recommendations to establish a
compensation scheme of last resort made by the panel
appointed by government to review external dispute and
complaints arrangements made in its supplementary final report
should be carried into effect
Banks should implement fully the recommendations of the
Sedgwick Review
Accountability
GE
1
Business

• Advocated for
the establishment of a scheme and will work with the Government to
implement
• Fully cooperating with Australian Financial Complaints Authority (AFCA) processes to
consider disputes dating back to 1 January 2008 that have not been heard before

GE Customer
and Corporate
Relations
GEs HR,
Consumer,
Business
GE Strategy
and Enterprise
Services
GE Consumer

1
Distressed
agricultural
loans
When dealing with distressed agricultural loans, banks should:
ensure they are managed by experienced agricultural bankers;
offer farm debt mediation as soon as a loan is classified as
distressed; manage every distressed loan on the footing that
working out will be the best outcome for bank and borrower, and
enforcement the worst; recognise that appointment of receivers
is a remedy of last resort; and cease charging default interest
when no prospect of recovering debt
• Current process for managing stressed farm loans is consistent with
r
ecommendations
• Recognise that appointing receivers or an external administrator is a remedy of last
resort
• Provide Disaster Relief Packages for cus
tomers impacted by major events such as
drought and floods
GE Business

1 GE is Group Executive.

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Culture, Governance and Accountability self -assessment
In 2018 Westpac completed a Culture, Governance and Accountability (CGA) self-assessment examining the Group’s risk culture, governance and
accountability frameworks and practices, and the impact on the management of non-financial risks

69
Conduct and governance
• Coordinated by a team of Westpac employees with external support from Oliver Wyman
• The self -a
ssessment process was subject to continuous assurance by Group Audit
• Took guidance from APRA and lessons from a CGA assessment completed by another Bank
• Provided to APRA and the Board is overseeing implementation of its recommendations
Key findings
Background to
self-assessment
Implementation of self-assessment recommendations is underway
As well as identifying a number of strengths across the Group, the self-assessment identified shortcomings and
proposed a series of recommendations and actions to address them. It highlighted that while Westpac’s culture,
governance and accountability settings in their totality generally support sound management of non-financial risks:

• Its management of non-financial risks was generally less mature than the management of financial risks and the
likely root cause of many of its non-financial risk-related issues; and
• There were a common set of behaviours across the Group, including: a lack of clarity on accountability and
consequences; and, at times, Westpac was too slow to identify, prioritise, escalate and remediate issues.

In addition, the self-assessment found that some of the Group’s strengths also created weaknesses. For example,
Westpac has a deep focus on financial risk, and although this is inherently positive, it has at times diluted a focus on
important non-financial risks.
Westpac was also assessed as having an analytical culture that is highly consultative. While this characteristic has its
benefits, it has at times slowed down decision making, created undue complexity and diluted accountability.
2

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Culture, Governance and Accountability self -assessment
action plan underway
The Group has commenced implementing the recommendations of the self-assessment with Group Executive sponsorship and Board oversight.
The work is focused on five key areas, which are set out below alongside some examples:
70
Conduct and governance
Enhance governance practices and elevate oversight of non-financial risks:
• Enhance reporting of key ri
sks to make appropriate assessments and improve resolution
• Enhance risk analysis of not progressing or delaying certain inv
estments
• Strengthening accountability for the prompt and effective resolution of long-outs
tanding issues
Board and executive
governance
Strengthen ‘three lines of defence’ and risk operating models:
• Enhance three lines of
defence model and better define roles/responsibilities of each line
• Standardise risk language and poli
cies, and strengthen accountability for issue closure
Risk and
compliance
Enhance processes to improve the customer experience:
• Aggregate complaints data across divisions to better identify the
root cause of issues
• Enhance reporting of long dated com
plaints
• Centralise customer complaint handli
ng
Customer
Update remuneration frameworks to better support conduct and avoid conflicts:
• Strengthen alignment of rem
uneration across the Group
• Review risk gates and adjustments in remuneration
R
emuneration
and accountability
Build on existing programs focused on leadership, skills and behaviours:
• Strengthen ‘Speak up’ culture, including adoption of a single whistle-blow
er approach across the Group
• Increase clarity of accountability and reduce collective decision making
• Review and simplify the G
r
oup’s service promise and culture materials

Culture
2

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Remuneration and accountability
71
Conduct and governance
• Implemented Sedgwick Review recommendations for employees effective from 1 October 2018, two years ahead
of schedule and changed mortgage broker remuneration from 1 January 2019
• Replaced variable reward for tellers with fixed pay; removed all individual product specific targets for personal
banker
s and limited financial measures in bonus scorecards to no more than 30% for all customer facing
employees
• Ceased the payment of grandfathered financial advice commissions to employed advisers from 1 October 2018

• Review of the effectiveness of Group Remuneration Po
licy
• Executive remuneration being
reviewed (following Westpac’s first strike on its Remuneration Report in 2018 and
investor feedback) to seek opportunities to better align to shareholder expectations
In addition to responses specific to recommendations of the Royal Commission and CGA self-assessment, a number of initiatives are underway
(several commenced prior to the establishment of these inquiries) to address root causes of issues, strengthen conduct, remove structures that may
lead to poor behaviour and drive better customer outcomes. These include:
Remuneration
• Established new Group-wi
de Consequence Management Framework in 2018, building on existing processes and
standards expected of employees and increasing consistency and transparency of the management of employee
conduct matters. Includes providing guidance about consequences for remuneration and employment
• Reinforcing executive responsibility and accountability under the BEAR regime − implemented in July 2018
• In 2018 completed implementation of ‘Motivate’, a new performance management framework that emphasises
behav
iours, culture and delivery against objectives
• Rolled out Group-wide employee program, ‘Navigate’, to bring to life Westpac’s values, Service Promise and Code of
Conduct. Quarterly Navigate scenarios continue to be shared with employees
• Extended whistleblowing protections to employees of service providers and family members
St
rengthening
accountability
3

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Product design, performance and remediation

1 Excludes litigation payments.
72
Conduct and governance
Westpac is committed to doing the right thing for customers. However, when mistakes are made, putting things right is a priority. Our focus remains
on customer remediation and refunding customers as quickly as possible. At the same time, as part of Westpac’s ongoing reviews, issues are being
identified and fixed to stop them from reoccurring
Provisions for customer
refunds and payments ($m)
1
2017 2018 1H19 Total
Approximate payments to
customers or utilised
Banking 94 122 225 441 (106)
Wealth 75 146 587 808 (94)
Implementation costs - 62 119 181 (24)
Cash earnings impact of above 118 231 652 1,001 -
• Products and services are regularly reviewed through product lifecycle reviews
• Group Products and Services Lifecycle Policy was updated in December 2018.
Further work required to
strengthen disciplines across design, maintenance and remediation of product issues
The right products
and services
• Where Westpac got it wrong and we can reliably estimate the liability, provisions for estimated customer payments
and refunds along with costs of implementation have been made
• The provisions cover a number of matters with the largest items relating to: advice service fees where the records of
advi
ce were insufficient or it is not clear that the services were provided; interest-only loans that did not automatically
switch to principal-and- interest after the fixed-rate period; and loans to businesses that should have been provided to
individuals under the National Consumer Credit Protection Act
• Executives are
accountable for remediation programs in their respective divisions; Westpac Group Chief Operating
Officer responsible for BT remediation
Remediation:
putting things right
for customers
4

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Customer care transformation
A centralised Customer and Corporate Relations division has been established and a new complaints strategy is being rolled out to make things
better for customers:

73
Conduct and governance
Lifting our Group-wide complaints culture:
• Focused campaign to reset the perception of complaints through Group-wi
de Navigate
program and customer complaint training for all employees
• Increasing accountability for customer complaints through specific KPIs in
CE
O/GE/GM scorecards
• Increasing customer engagement through ‘customer voice’ roundtables
Culture &
customer
connection
• 93% of employees completed tr
aining in
1H19
• 41% of complaints in 1H19 solved at first
point of contact in the Consumer and
Business divisions
Progress:
Improving the complaints process for customers:
• New operating model: centralising triage; first response; complex and priority care
• Improved web pages and refreshed customer communication materials
• New ‘Moments team’ to help sol
ve complaints in the moment
• Improved Group-wi
de complaints policy, framework and standards
Service
excellence
• 22% reduction in time to resolve for
Int
ernal Dispute Resolution for 1H19
• Resolved 540 long dated or
cont
entious complaints in 1H19
Progress:
Improving the identification and support of vulnerable customers:
• New Vulnerable Customer Action Plan and position statements
• A dedicated ‘1800’ Priority Assist telephone line staffed by assistance specialists
• New Customer Outcome Committee focused on resolving complex and long-dat
ed
c
omplaints
Priority
support
• 91% of vulnerable customer
com
plaints assigned to priority case
managers within three day target
• 300 calls per month to Priority Assist
si
nce December 2018
Progress:
Identifying causes of complaints to stop them recurring:
• Using complaints data to identify root causes of complaints and use insights in
produc
t reviews
• Investing in data analytics to identify root causes of customer complaints
• Product General Managers have action plans to resolve top root cause issues that
caus
e complaints
Root cause
and complaint
prevention
• 50 specific root cause improvements
i
mplemented YTD
• 3 business improvement programs
under development
Progress:
5

Earnings Drivers

204
214 214
155
152 152
143
152
146
502
518
512
Mar-18Sep-18Mar-19
Term depositsSavingsTransaction
42%
29%
29%
Composition of lending and deposits
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Australian mortgage lending
1
($bn) Composition of lending (% of total) Net loans ($bn)
Customer deposit composition ($bn) Customer deposit mix ($bn) and % of total
75
63
13
8
3
11
2
Aust. mortgages
Aust. business
Aust. institutional
Aust. other consumer
New Zealand lending
Other overseas
lending
701
710
2
5
714
(1)
(1)
(1)
Mar-18
Sep-18
Consumer
Bank
Business
Bank
WIB
New
Zealand
Other
(inc. BT)
Mar-19
Up 1%
Down 1%
Up 3%
199
206
206
108
111
109
99
105
96
96
96
101
502
518
512
Mar-18Sep-18Mar-19
CBBBWIBBTFG, NZ & Other
437
445
30
447
(28)
Mar-18
Sep-18
New
lending
Net run off
Mar-19
Revenue
1 Gross loans.

2.11
2.12
1.98
2.04
1H142H141H152H151H162H161H172H171H182H181H19
NIMNIM excl. Treasury & Markets
NIM excluding Treasury & Markets and notable items up 1bp
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Net interest margin by division (%)
Net interest margin (%)

Net interest margin (NIM) movement (%)
76
2.16
2.06
2.08
2.09
2.04
0.12
0.10
0.10 0.08
0.08
2.28
2.16
2bps 2.18
1bp
1bp 0bp
0bp
(1bp)
0bp
(2bps)
2.17 (5bps)
2.12
1H182H18
Add back notable items
2H18 ex-notable items
Loans
Customer deposits
Term wholesale funding
Bank Levy
Capital & other
Liquidity
Treasury &
Markets
1H19 ex-notable items
Notable items
1H19
Treasury & Markets impact on NIM
NIM excl. Treasury & Markets
Margin excluding Treasury & Markets down 2bps
Revenue
Margin excluding Treasury & Markets
and notable items up 1bp
Restated for
adoption of AASB
9 and 15
CB BB WIB NZ
2.40
2.14
2.20
3.19
3.17
3.02
1.60
1.74
1.67
2.24
2.25
2.23
1H182H181H19
Includes notable
items impact of
2H18: (6bps)
1H19: (3bps)
Includes notable
items impact of
1H19: (22bps)

Non -interest income down 30% from notable items, higher
general insurance claims and impact of the sale of Hastings
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Net fee income ($m)
Insurance income ($m)
Non-interest income contributors ($m)
Wealth management income ($m)
1 2H18 includes $180m of fees associated with Hastings exit.
77
Revenue
1,017
893
826
929
1,088
323
507
419
464
69
56
101
2,522
2,456
1,714
1H182H181H19
FeesWealth and insuranceTradingOther
498
474
435
82
90
64
55
205
27
(435)
635
769
91
1H182H181H19
FundsOther (mostly BT)NZ & WIBNotable items
(156)
(165)
405
387
375
509
538
510
103
124
106
1,017
893
826
1H182H181H19
Notable itemsFacility feesNet transaction feesOther non-risk fee income
143 143
145
76
111
16
75
72
71
(7)
294
319
232
1H182H181H19
LifeGeneralLMI & NZNotable items
1

4,895
5,007
99
31
4,767
274
5,041
(112)
(146)
9
(121)
2H18
Add back
notable items
2H18 ex-
notable items
Ongoing
expenses
Productivity
Investment
Regulatory/
compliance
Hastings
1H19 ex-
notable
items
Notable
items
1H19
(194)
35,720
35,029
34,241
(497)
(725)
(63)
1H18RunChange2H18RunChange1H19
Expenses ex notable items down 3% from Hastings exit,
while productivity benefits offsetting other cost increases
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
FTE run versus change (#) Expense movements ($m)
1 Company data, Credit Suisse. Expense to income ratio average for Peer 1, 2 and 3 based on 1H19 results, all others based on FY18. Peer 1 and 2 are presented on a continuing operations basis. European
average excludes Deutsche Bank.
78
Expenses
Global peer comparison of expense to income ratios
1
(%) Productivity savings ($m)
Up 1%
61.7 61.7
61.3
60.1
49.9
48.5
47.9
47.0
44.8
44.1
43.7
42.6
European
average
UK average
Canadian
average
US regional
average
WBC
Hong Kong
average
Korean
average
Peer 3Peer 1
Singapore
average
WBC ex
notable items
Peer 2
239
263
262
304
146
FY15FY16FY17FY181H19
Run: ongoing operations
Change: project based
Down 3% ex notable items
Flat

1.37
1.78
2.98
2.24
0.50
0.46
0.59
0.64
2.8
3.9
4.9
3.4
Peer 1Peer 2Peer 3WBC
Capitalised software balance ($bn)
Amortisation ($bn)
Average amortisation period (years)
Investment spend focused on growth, productivity and compliance
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 Includes write -offs , impairments and foreign exchange translation. 2 Peer 1 and 2 are reported on a continuing operations basis. Based on 1H19 results. Software amortisation has been annualised.

Investment spend mix ($m)
79
Investment spend ($m) Capitalised software
2
Expenses
411
479
401
163
214
195
84
113
127
658
806
723
1H182H181H19
Other technology
Regulatory change
Growth and productivity
1H18 2H18 1H19
Expensed 271 312 331
Capitalised

387 494 392
Total investment spend

658 806 723
Investment spend expensed 41% 39% 46%
Capitalised software
Opening balance 1,916 2,005 2,177
Additions

389 493 395
Amortisation (301) (317) (318)
Other
1
1 (4) (10)
Closing balance 2,005 2,177 2,244
Average amortisation period 3.2yrs 3.2yrs 3.4yrs
Other deferred expenses
Deferred acquisition costs 80 71 63
Other deferred expenses 30 29 30

Continued low impairment charge reflects sound credit quality
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
11H18 and 2H18 include impacts of pro forma adjustments to recoveries (other fees and expenses) and CAP (interest carrying adjustments). 2 1H19 reflects the adoption of AASB 9 from 1 October 2018. 3 2008 and
2009 are pro forma including St.George for the entire period with 1H09 ASX Profit Announcement providing details of pro forma adjustments.
80
Impairment charges ($m)
Impairment charges and stressed exposures
3
(bps)
New IAPs
Write-backs & recoveries Write-offs direct Other movements in CAP
Total
Individually assessed Collectively assessed
9bps
110bps
0
100
200
300
400
500
0
20
40
60
80
100
120
20082009201020112012201320141H152H151H162H161H172H171H182H181H19
Impairment charge to average loans annualised (lhs)
Stressed exposures to TCE (rhs)
Impairments
173
198
173
(174)
(168)
(150)
430
428
418
15
(90)
(108)
444
368
333
1H182H181H191H182H181H191H182H181H191H182H181H191H182H181H19
1 1,2
1
1
2

Credit Quality

Standard and Poor’s Risk Grade
1
Australia NZ / Pacific Americas Asia Europe Group % of Total
AAA to AA-
95,105 10,368 18,839 2,249 479 127,040
12%
A+ to A-
33,861 5,521 4,644 7,113 3,186 54,325
5%
BBB+ to BBB-
57,572 11,189 3,356 10,526 2,005 84,648
8%
BB+ to BB
69,630 12,580 377 1,897 92 84,576
8%
BB- to B+
61,364 10,924 14 163 - 72,465
7%
<B+
5,542 1,718 - - - 7,260
1%
Mortgages
510,930 56,544 - 310 - 567,784
54%
Other consumer products
43,765 4,910 - 3 - 48,678
5%
Total committed exposures (TCE)
877,769 113,754 27,230 22,261 5,762 1,046,776

Exposure by region
2
(%)
84% 11% 3% 2% <1% 100%
High quality portfolio with bias to mortgage lending
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 Risk grade equivalent. 2 Exposure by booking office.

Lending composition at 31 March 2019 (% of total) Asset composition (%)
82
Credit Quality
69
17
11
3
Housing
Business
Institutional
Other consumer
Total loans of $714bn
Exposure by risk grade at 31 March 2019 ($m)
Total assets ($891bn)
Mar-18 Sep-18 Mar-19
Loans
80 81 80
Available-for -sale securities and investment securities 7 7 8
Trading securities and financial assets at fair value
through income statement
3 3 3
Derivative financial instruments 3 3 3
Cash and balances with central banks 3 3 2
Collateral paid and other financial assets 1 1 1
Intangible assets 1 1 1
Life insurance assets and other assets 2 1 2

A well diversified loan portfolio
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 Exposures at default is an estimate of the committed exposure expected to be drawn by a customer at the time of default. Exc ludes consumer lending. 2 Finance and insurance includes banks, non-banks,
insurance companies and other firms providing services to the finance and insurance sectors. 3 Property includes both residential and non-residential property investors and developers, and excludes real estate
agents. 4 Construction includes building and non-building construction, and industries serving the construction sector. 5 NBFI is non-bank financial institutions.
020406080100120
Mining
Other
Accommodation, cafes
& restaurants
Construction
Utilities
Transport & storage
Agriculture, forestry & fishing
Services
Property services & business services
Manufacturing
Wholesale & retail trade
Government admin. & defence
Property
Finance & insurance
Mar-18
Sep-18
Mar-19
1.4
1.3
1.1
1.2
1.3
1.1
1.2
1.0
1.1
1.0 1.0
Sep-09Sep-10Sep-11Sep-12Sep-13Sep-14Sep-15Sep-16Sep-17Sep-18Mar-19
Top 10 exposures to corporations and NBFIs
5
(% of TCE)
Top 10 exposures to corporations & NBFIs
at 31 March 2019 ($m)
83
Exposures at default
1
by sector ($bn)
2
3
4
Credit Quality
The single largest
corporation/NBFI
exposure represents
less than 0.2% of TCE
03006009001,2001,5001,8002,100
BBB+
A-
BBB+
A
A-
BBB+
BBB-
BBB
BBB+
A+
S&P rating or equivalent

46
50
34
46 46 46
34
44
46
44
34
46
WestpacPeer 1Peer 2Peer 3
Mar-18Sep-18Mar-19
Well provisioned, sound credit quality
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Provisions for impairments
Impaired asset provisions to impaired assets (%)
Total impairment provisions ($m)
84
Credit Quality
Mar-18 Sep-18 1- Oct-18 Mar-19
Total provisions to gross loans (bps) 45 43 57 56
Impaired asset provisions to impaired assets
(%)
46 46 47 46
Collectively assessed provisions to credit
RWA (bps)
75 73 101 98
1,470
1,364
867
669
869
480
471
422 422
433
2,408
2,196
2,225
2,275
2,344
2,316
2,359
2,330
3,353
3,333
363
389
389
388
389
323
335
301
267
229
4,241
3,949
3,481
3,332
3,602
3,119
3,165
3,053
4,042
3,995
Sep-12Sep-13Sep-14Sep-15Sep-16Sep-17Mar-18Sep-18Oct-18Mar-19
Overlay
Collectively assessed provisions
Individually assessed provisions

Provision cover by portfolio category
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
85
Exposures as a % of TCE
0.15 0.15
0.14
0.17
0.34
0.37 0.39
0.43
0.56
0.57
0.55
0.50
3.24
98.95
98.91
98.92
95.66
Sep-17Mar-18Sep-18Mar-19
Fully
performing
portfolio
Watchlist &
substandard
90+ day past
due and not
impaired
Impaired
Fully performing portfolio
Small cover as low probability of default (PD) 0.20 0.20 0.18 0.09
Provisioning to TCE (%)
Sep-17 Mar-18 Sep-18 Mar-19
Watchlist & substandard
Still performing but higher cover reflects
deterioration
4.76 4.71 5.27 5.59
90+ day past due and not impaired
In default but strong security 5.08 5.03 5.11 12.34
Impaired assets
In default. High provision cover reflects
expected recovery
46.30 45.54 46.10 45.74
Stage 3
provisions

Credit Quality
Stage 2
provisions

Stage 1 provisions

Non- stressed
but significant
increase in
credit risk
Non-stressed but significant increase in credit risk
Lifetime expected loss based on future economic
conditions
4.18

Stressed exposures little changed
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 Facilities 90 days or more past due date not impaired. These facilities, while in default, are not treated as impaired for accounting purposes. 2 Includes individually managed impaired assets only.
New and increased gross impaired assets
2
($m)
Movement in stressed categories (bps) Stressed exposures as a % of TCE
86
109 (1)
2
3 (5)
108
3
4 (2)
(3)
110
Mar-18
Impaired
90+ dpd not
impaired
Substandard
Watchlist
Sep-18
Impaired
90+ dpd not
impaired
Substandard
Watchlist
Mar-19
1,060
1,194
997
958
708
609
607
633
1,078
477
589
440
471
450
519
1H122H121H132H131H142H141H152H151H162H161H172H171H182H181H19
0.58
0.44
0.27
0.20
0.22
0.20
0.15 0.15
0.14
0.17
0.35
0.31
0.26
0.25
0.33
0.35
0.34
0.37 0.39
0.43
1.24
0.85
0.71
0.54
0.65
0.59
0.56
0.57 0.55
0.50
2.17
1.60
1.24
0.99
1.20
1.14
1.05
1.09
1.08
1.10
Sep-12Sep-13Sep-14Sep-15Sep-16
Mar-17
Sep-17
Mar-18
Sep-18
Mar-19
Watchlist & substandard
90+ day past due (dpd) and not impaired
Impaired
Credit Quality
1
1
1

Overall stressed exposures little changed over 1H19
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Corporate and business portfolio stressed exposures by industry ($bn)
87
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
Agriculture, forestry &
fishing
Wholesale &
retail trade
Property
Services
Property services &
business services
Construction
Manufacturing
Transport & storage
Accommodation, cafes
& restaurants
Finance & insurance
Mining
Utilities
Mar-18Sep-18Mar-19
Credit Quality

Areas of interest: Commercial property
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 Includes impaired exposures. 2 Percentage of commercial property portfolio TCE.

Commercial property portfolio composition (%)
Commercial property exposures % of TCE and % in stress Commercial property portfolio
88
0
5
10
15
20
0
2
4
6
8
10
Mar-10
Sep-10
Mar-11
Sep-11
Mar-12
Sep-12
Mar-13
Sep-13
Mar-14
Sep-14
Mar-15
Sep-15
Mar-16
Sep-16
Mar-17
Sep-17
Mar-18
Sep-18
Mar-19
Commercial property as % of TCE (lhs)
Commercial property % in stress (rhs)
Mar-18 Sep-18 Mar-19
Total committed exposures (TCE) $66.3bn $67.6bn $66.9bn
Lending $51.1bn $52.0bn $52.3bn
Commercial property as a % of
Group TCE
6.48 6.51 6.39
Median risk grade

BB
equivalent
BB+
equivalent
BB+
equivalent
% of portfolio graded as stressed
1,2
1.74 1.66 1.51
% of portfolio in impaired
2
0.28 0.23 0.22
16
10
8
5
4
11
46
NSW & ACT
Vic
Qld
SA & NT
WA
NZ & Pacific
Institutional
(diversified)
44
9
32
15
Exposures <$10m
Developers >$10m
Investors >$10m
Diversified Property
Groups and Property
Trusts >$10m
43
25
22
10
Commercial offices
& diversified groups
Residential
Retail
Industrial
Borrower type (%) Region (%) Sector (%)

Credit Quality

Areas of interest: Inner city apartments
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
89
1 Percentage of commercial property TCE.

48.3
48.0
46.6
201920202021
Expected Completion Date
Mar-18 Sep-18 Mar-19 TCE (%)
1
Residential apartment development >$20m 4.0 4.1 3.3 4.9
• Approvals and new starts lower and expected to slow further.
• Tightened risk appetite for areas of concern remains in place
• S
ettlements remain slightly slower than historical experience, but
W
estpac’s debt has been repaid in full given low LVRs
Residential apartment development
>$20m in major markets, refer below
2.7 2.6
2.8 4.2
Sydney major markets 1.9 1.8
2.1 3.1
• Increase due t o
expanding definition of ‘major ’ Sydney suburbs in Nov-18.
Comparable TCE to Sep-18 would be $1.6bn at Mar-19
Inner Melbourne 0.6 0.6
0.5 0.7 • Weighted average LVR 48.3%
Inner Brisbane 0.2 0.1
0.1 0.1 • Slow market. Exposure low
Perth metro 0.0 0.1
0.1 0.1 • Activity slowly lifting. Recent loans at 45% weighted average LVR
Average portfolio LVR 48%
Consumer mortgages where
security is within an inner city
residential apartment development

Sep-18 Mar-19
Total consumer m ortgage loans for
inner city apartments
$15.2bn
$15.3bn
Average LVR at origination 73% 72%
Average dynamic LVR 57% 56%
Dynamic LVR >90% 2.49% 3.59%
90+ day delinquencies 44bps 62bps
Residential apartment development >$20m weighted average LVR (%) Consumer mortgages
Residential apartment development TCE ($bn)
Credit Quality

Areas of interest: Retail trade
1 Includes impaired exposures. 2 Percentage of retail trade portfolio TCE.

Retail trade portfolio composition
Overview
90
Mar-18 Sep-18 Mar-19
Total committed exposures (TCE) $15.5bn $16.2bn $16.0bn
Lending $11.3bn $11.6bn $11.5bn
Retail trade as a % of Group TCE 1.51 1.56 1.53
Median risk grade

BB
equivalent
BB
equivalent
BB
equivalent
% of portfolio graded as stressed
1,2
4.67 4.84 5.43
% of portfolio in impaired
2
0.48 0.41 1.24
Credit Quality
Retail trade portfolio
• The retail sector continues to be challenged by subdued consumer demand
and growth in domestic and international online channels
• These changes have been emerging for a number of years and businesses
need to continue to adapt
• Whilst there has been a small increase in stress, the portfolio is diversified
and credit quality remains sound
• During the period one large facility was downgraded from watchlist and
substandard to impaired

16.4
16.3
15.3
15.4
15.5
16.2
16.0
Mar-16Sep-16Mar-17Sep-17Mar-18Sep-18Mar-19
Retail trade exposure (TCE) $bn

2.29
2.68
2.51
3.02
4.67
4.84
5.43
Mar-16Sep-16Mar-17Sep-17Mar-18Sep-18Mar-19
% of portfolio graded as stressed

Overview
6.3
5.0
4.7
Personal and
household good
retailing
Motor vehicle
retailing and
services
Food retailing
Investment
Sub-investment
Stressed
Retail trade by internal risk grade category
(TCE) $bn

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack

Areas of interest: Aged care sector
1 Includes impaired exposures. 2 Percentage of Aged Care portfolio TCE.

Aged care portfolio composition
Overview
91
Mar-18 Sep-18 Mar-19
Total committed exposures (TCE) $2.5bn $2.7bn $2.9bn
Lending $1.5bn $1.6bn $1.8bn
Aged Care as a % of Group TCE 0.24 0.26 0.28
Median risk grade

BB+
equivalent
BB+
equivalent
BB+
equivalent
% of portfolio graded as stressed
1,2
4.17 4.94 3.63
% of portfolio in impaired
2
0.00 0.00 0.00
Credit Quality
Aged care portfolio
• Aged care sector is forecast to grow with significant investment required to
meet demand from Australia’s aging population
• Stress decrease over 1H19 driven by repayments and improvements in
credit quality
• The portfolio more generally is diversified and credit quality remains sound.
Westpac maintains a strong history of involvement in this sector
• On 16th September 2018, a Royal Commission into Aged Care Quality and
Safety was announced. The interim report is to be provided by 31 October
2019 with a final report no later than 30 April 2020

2.2
2.6
2.5
2.6
2.5
2.7
2.9
Mar-16Sep-16Mar-17Sep-17Mar-18Sep-18Mar-19
Aged care exposure (TCE) $bn

0.89
0.86
0.79
1.97
4.17
4.94
3.63
Mar-16Sep-16Mar-17Sep-17Mar-18Sep-18Mar-19
% of portfolio graded as stressed

Overview
57
43
Nursing homesAccommodation for the aged
Aged care portfolio (TCE) by sector (%)
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack

Areas of interest: Mining and Australian Agriculture
1 Includes impaired exposures. 2 Percentage of portfolio TCE. 3 Sourced from Westpac Economics and Bloomberg. 4 The steel index 62% Fe fines benchmark. 5 Brent oil price.
Australian Agriculture portfolio
Mining (inc. oil and gas) portfolio
92
Mar-18 Sep-18 Mar-19
Total committed
exposure (TCE)
$9.3bn $10.7bn $9.8bn
Lending $5.1bn $5.7bn $5.2bn
% of Group TCE 0.91 1.03 0.94
% of portfolio graded as
stressed
1,2
1.72 0.99 0.81
% of portfolio in impaired
2
0.31 0.17 0.16
Mar-18 Sep-18 Mar-19
Total committed
exposure (TCE)
$10.6bn $10.6bn $10.9bn
Lending $8.2bn $8.5bn $8.6bn
% of Group TCE 1.04 1.02 1.04
% of portfolio graded
as stressed
1,2
4.27 4.40 4.65
% of portfolio in
impaired
2
0.31 0.27 0.35
Credit Quality
Iron Ore and Oil prices ($)
3
Mining portfolio (TCE)
by sector (%)
35
23
16
10
8
8
Oil and gasOther metal ore
Mining servicesIron ore
CoalOther
Australian Agriculture (TCE)
by state (%)
Australian Agriculture (TCE)
portfolio composition (%)
20
60
100
Mar-16Mar-17Mar-18Mar-19Mar-20
Iron ore (USD/t)Crude oil (USD/bbl)
4
5
Westpac
Economics
forecast
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
26
22
20
14
12
6
NSW/ACT
QLD
VIC/TAS
WA
SA/NT
Institutional
30
25
10
7
6
5
5
4
3
3
2
Grain
Beef & Sheep
Horticulture
Dairy
Services to Agri
Cotton
Fishing & Aquaculture
Viticulture
Forestry & Logging
Poultry
Other
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack

-
1.00
2.00
3.00
4.00
Mar-16Sep-16Mar-17Sep-17Mar-18Sep-18Mar-19
Total unsecured
consumer lending
Total ex-hardship
Australian consumer unsecured lending, 3% of Group loans
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
90+ day delinquencies (%) Australian unsecured portfolio ($bn)
1
1 Does not include Margin Lending. 2 Westpac changed hardship treatment following guidance from APRA which is intended to standardise the industry treatment of delinquency classification of facilities in hardship.
Hardship allows eligible customers to reduce or defer repayments in the short term to manage through a period of financial difficulty (e.g. unemployment, injury, natural disasters). Solutions are tailored to customer
circumstances and may include extending the loan or restructuring.
93
Credit Quality
Mar-18 Sep-18 Mar-19
Lending $21.8bn $21.1bn $20.7bn
30+ day delinquencies

(%) 3.95 3.65 4.08
90+ day delinquencies

(%) 1.71 1.73 1.87
The increase in Australian unsecured lending portfolio 90+ day delinquencies over
1H19 was driven by portfolio run off and an operational issue in collections
10
5
7
22
9
5
7
21
9
5
7
21
Credit cardsPersonal
loans
Auto loans
(consumer)
Total
consumer
unsecured
Mar-18Sep-18Mar-19
90+ day delinquencies (%) by State
-
1.00
2.00
3.00
NSW/ACTVIC/TASQLDWASA/NT
Hardship reporting
changes commenced
2
August 2016
Hardship reporting changes commenced
2
Australian consumer unsecured lending portfolio
1
1
1
1
97
Group Loans
Auto finance
Credit cards
Personal loans
Other loans

Australian consumer unsecured lending portfolios
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Credit cards 90+ day delinquencies (%)
Auto finance portfolio 90+ day delinquencies (%)
Personal loans 90+ day delinquencies (%)
1 Westpac changed hardship treatment following guidance from APRA which is intended to standardise the industry treatment of delinquency classification of facilities in hardship. Hardship allows eligible customers to
reduce or defer repayments in the short term to manage through a period of financial difficulty (e.g. unemployment, injury, natural disasters). Solutions are tailored to customer circumstances and may include extending
the loan or restructuring.
94
Credit Quality
0.00
1.00
2.00
3.00
4.00
Mar-16Sep-16Mar-17Sep-17Mar-18Sep-18Mar-19
Personal loansPersonal loans ex-hardship
Auto finance portfolio ($m) – reduced over last 2 years
0.00
1.00
2.00
3.00
4.00
Mar-16Sep-16Mar-17Sep-17Mar-18Sep-18Mar-19
Auto loansAuto loans
ex-hardship
0
400
800
1,200
1,600
4,000
5,000
6,000
7,000
8,000
9,000
Mar-16
May-16
Jul-16
Sep-16
Nov-16
Jan-17
Mar-17
May-17
Jul-17
Sep-17
Nov-17
Jan-18
Mar-18
May-18
Jul-18
Sep-18
Nov-18
Jan-19
Mar-19
Auto Finance performing loans balance ($m lhs)
Auto Finance 90+ day delinquencies balance ($m rhs)
0.00
1.00
2.00
3.00
4.00
Mar-16Sep-16Mar-17Sep-17Mar-18Sep-18Mar-19
Credit cardsCredit cards
ex-hardship
Hardship reporting
changes commenced
1
Hardship reporting
changes commenced
1
Hardship reporting
changes commenced
1

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Australian mortgage portfolio performance
95
Credit quality
Housing lending portfolio by State (%)
Australian mortgage delinquencies and properties in
possession (PIPs)
Mar-18 Sep-18 Mar-19
30+ day delinquencies

(bps) 144 140 159
90+ day delinquencies

(bps ) (includes impaired mortgages) 69 72 82
Consumer PIPs 398 396 482
• Increase in mortgage delinquencies from higher NSW delinquencies (off a low base) as well as continued
weakness in WA
• A greater proportion of P&I loans in the portfolio is also contributing to a higher delinquency profile
• Increase also reflects slowing economic activity and lower market activity, leading to customers remaining in
collections for longer
• Seasoning of the RAMS portfolio also contributed, as these loans have a higher delinquency profile
• Properties in possession higher mostly in WA and Qld, reflecting both a higher volume and longer times to clear
properties
37
28
17
12
6
41
27
16
9
7
43
29
15
6
7
NSW &
ACT
VIC &
TAS
QLDWASA & NT
Australian banking system
Westpac Group portfolio
1H19 Westpac Group drawdowns
1 Source ABA Cannex February 2019. 2 Under the changes in hardship treatment, an account in hardship continues to migrate through delinquency buckets until 90+ days past due. Accounts are then reported as
90+ days past due until full repayments are maintained for 6 months.
1
0.0
1.0
2.0
3.0
Mar-15Sep-15Mar-16Sep-16Mar-17Sep-17Mar-18Sep-18Mar-19
90+ day past due total90+ day past due investor
30+ day past due totalLoss rates
0.0
1.0
2.0
3.0
Mar-15Sep-15Mar-16Sep-16Mar-17Sep-17Mar-18Sep-18Mar-19
NSW/ACTVIC/TASQLD
WASA/NTALL
Introduced new hardship treatment
2
Introduced new hardship treatment
2
Australian mortgage portfolio delinquencies (%) Australian mortgages 90+ day delinquencies by State (%)

Australian mortgage portfolio composition
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
96
Credit quality
1 Flow is new mortgages settled in the 6 months ended 31 March 2019 and includes RAMS. 2 Includes amortisation. Calculated at account level, where split loans represent more than one account. 3 Loans ahead on
payments exclude equity/line of credit products as there are no scheduled principal payments. 4 Mortgage insurance claims 1H19 $7m (2H18 $4m; 1H18 $6m). 5 1 I/O is interest only mortgage lending. P&I is principal
and interest mortgage lending. EAL is Equity Access Loans.
Australian mortgage portfolio
Mar-18
balance
Sep-18
balance
Mar-19
balance
1H19
Flow
1
Total portfolio ($bn) 437.2 444.7 447.2
30.1
Owner occupied (%) 56.0 56.8 57.3
62.6
Investment property loans (%) 39.5 39.1 39.1
37.0
Portfolio loan/line of credit (%) 4.5 4.1 3.6
0.4
Variable rate / Fixed rate (%) 77 / 23 77 / 23 76 / 24
64 / 36
Interest only (%) 39.6 34.8 30.6
18.5
Proprietary channel (%) 56.5 56.1 56.3
54.4
First home buyer (%) 7.9 7.8 8.0
9.3
Mortgage insured (%) 16.9 16.3 15.9
10.6
Mar-18 Sep-18 Mar-19
1H19
Flow
1
Average loan size
2
($’000)

270 273 275
375
Customers ahead on repayments
including offset account balances
3
(%)
68 69 69
Actual mortgage losses net of insurance
4
($m, for the 6 months ending)
48 38 51
Actual mortgage loss rate

annualised
(bps, for the 6 months ending)
2 2 2
Australian mortgage portfolio composition
5
(%)
11.0
3.5
1.5
5.0
2.0
19921998200120091H19
excludes St.George
Westpac Australian mortgage loss rates (bps)
50
31
44
66
5
4
0
20
40
60
80
100
Mar-17Jun-17Sep-17Dec-17Mar-18Jun-18Sep-18Dec-18Mar-19
EAL
P&I
I/O
Bars may not add due to rounding
Last
recession
Asian
crisis
Tech
wreck
GFC Current
(incl.
St.George)

41
27
16
9
7
1.4
1.2
1.1
0.9
0.3
0.4
0.4
0.4
0.3
0.1
NSW & ACTVic & TasQldWASA & NT
% of total portfolio
% of total portfolio where dynamic LVR >90%
% of total portfolio where dynamic LVR >100%
Australian mortgage portfolio – borrower equity sound
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
97
Credit quality
1 Dynamic LVR is the loan-to-value ratio taking into account the current loan balance, changes in security value, offset account balances and other loan adjustments. Property valuation source Australian Property
Monitors. 2 Source: CoreLogic , 1 May 2019. 3 Weighted average LVR calculation considers size of outstanding balances. 4 Includes RAMS in 1H19. Excludes RAMS in 1H18 and 2H18. 5 Average LVR of new loans is
on rolling 6 months.
Australian housing loan-to-value ratios (LVRs) (%)
Australian mortgage portfolio LVRs
Mar-18
balance
Sep-18
balance
Mar-19
balance
Weighted
averages
3
LVR at origination (%) 74 74 74
Dynamic LVR
1,4
(%) 52 54 57
LVR of new loans
5
(%) 71 71 72
20
15
47
11
7
0
17
14
49
11
5
4
52
15
17
11
2
1
1.6
0
10
20
30
40
50
60
70
80
90
100
0<=6060<=7070<=8080<=9090<=9595<=100>100
1H19 drawdowns LVR at origination
Portfolio LVR at origination
Portfolio dynamic LVR
1
Australian housing loan-to-value ratios (LVRs) (%)
N/A
• WA remains most challenged by
weaker economic conditions
• Perth dwelling val
ues
2

– 18.4% lower than 2014 peak
– 18.
1% lower vs 5 years ago
• NSW best performing state
• Sydney dwelling values
2

– 14.5% lower than 2017 peak

– Up 21.1% vs 5 years ago
• Negative equity remains low
• National prices are 14.5% higher
rel
ative to 5 years ago
2

Australian mortgage portfolio underwriting
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
98
Credit quality
2014 • 10% limit on investment property lending growth announced – implemented by 30 September 2015
2015
• Stricter loan affordability tests for new borrowers
– Increase in minimum assessment (‘floor’) rate to 7.25%
– Increase in serviceability as
s
essment buffer to 2.25%
• Credit card repayments assessed at 3% of limit (previously 2%)
• Expenses benchmark (HEM) adj
us
ted by income bands as well as post settlement postcode
location, marital status and dependants
• Serviceability for loans with interest only terms assessed over the residual P&I term, not ful
l loan
term
• Maximum I/O terms reduced – owner oc
cupied reduced to 5 years
2016
• Mandatory 20% minimum shading on all non-base
income (e.g. rental income, annuity income) –
previously non- base income discounted by varying amounts
• Stopped non-res
ident lending
– For Australian and NZ citizens and permanent visa holders using foreign income, tightened
ver
ification and LVR restricted to 70%
• Maximum I/O
1
terms for new IPLs reduced to 10 years
• Maximum LVRs restricted to include LMI capitalisation
2017
• 30%
limit on new I/O lending (based on % of limits)
• Tighter limits on I/O lending >80% LVR
• Heightened supervision of mortgage lending warehouses
• Strengthened pre settlement hind-s
i
ghting process of applications with introduction of day 2 review
team
2018
• More granular assessment of expenses through the introduction of 13 categories to capture living
ex
penses and other commitments
• Income verification requirements for self-empl
oyed applicants strengthened
Notable changes to Westpac mortgage lending standards

Australian mortgage portfolio by year
of origination (% of total book)
4
1
2
2
4
3
3
4
6
9
12
14
16
17
3
Pre-2006
2006200720082009201020112012201320142015201620172018
2019 (YTD)
Calendar year
62% of the portfolio originated
after major tightening of
lending standards
1 I/O is interest only mortgage lending.

Australian mortgage portfolio repayment buffers
1 SVR is the Standard Variable Rate for owner-occupied Westpac Rocket Repay Home Loan inclusive of Premier Advantage Package discount. 2 Excludes RAMS. 3 Customer loans ahead on payments exclude
equity/line of credit products as there are no scheduled principal payments. Includes mortgage offset accounts. ‘Behind’ is more than 30 days past due. ‘On time’ includes up to 30 days past due.
1
30
19
22
6
22
1
29
20
22
6
21
2
29
20
22
6
21
BehindOn time< 1 Mth< 1 Yr< 2 Yrs>2 Yrs
Mar-18Sep-18Mar-19
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
99
Credit quality
Australian home loan customers ahead on repayments
3
(% by balances)
69% of Westpac
borrowers are ahead on
their mortgage
repayments, including
offset account balances
Westpac Australian offset account balances
2
($bn)
13
6
6
24
Mar-19
Investment property loans -
incentive is to keep repayments high
for tax purposes
Accounts opened in the last 12
months
Loans with structural restrictions on
repayments e.g. fixed rate
Residual - less than 1 month
repayment buffer
Loans ‘On time' and <1 mth ahead (% of balances)
4.58
7.25
3
5
7
9
Sep-14
Mar-15
Sep-15
Mar-16
Sep-16
Mar-17
Sep-17
Mar-18
Sep-18
Mar-19
Westpac owner occupied SVR inc package discount
Westpac minimum assessment ('floor') rate
1
Mortgage interest rate buffers (%)
• Borrowers applying
for a mortgage must
be able to service
the higher of either:
−7.25% minimum
assessment rate;
or
−Product rate plus
2.25% buffer
49
23.6
26.8
30.5
33.4
34.9
36.2
37.4
38.6
39.2
40.0
Sep-14
Mar-15
Sep-15
Mar-16
Sep-16
Mar-17
Sep-17
Mar-18
Sep-18
Mar-19
Linked to I/O mortgagesLinked to P&I mortgages.

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Interest only (I/O) portfolio
1 I/O is interest only mortgage lending. P&I is principal and interest mortgage lending. 2 Interest rates for Westpac Rocket Repay Home Loan inclusive of Premier Advantage Package discount assuming loan amount $250,000 - $ 499,999.
3 Excludes RAMS. Dynamic LVR is the loan-to-value ratio taking into account the current loan balance, changes in security value, offset account balances and other loan adjustments. Property valuation source Australian Property Monitors.
4 Excludes I/O loans that should have switched to P&I but for the previously announced mortgage processing error.
100
Credit quality
4.58
5.17
5.13
5.64
P&II/OP&II/O
Owner occupiedInvestor
Variable mortgage interest rates
2
(%)
12
7
3
26
19
8
13
8
4
51
34
15
<=60%60%<=80%>80%
Dynamic LVR bands (%)
>$250k
$100k - $250k
<$100k
Applicant
gross income bands
Switching from I/O to P&I
1
($m)
at 12 April 2019
Scheduled I/O term expiry
4
(% of total I/O loans)
I/O lending by dynamic LVR
3
and income band (%)
18
22
17
10
7
17
8
0<1 Yr1<2 Yrs2<3 Yrs3<4 Yrs4<5 Yrs5<10 Yrs10 Yrs+
Chart does not add due to rounding
I/O portfolio (%)
40
35
31
18
19
19
1H182H181H19
% of total portfolio (at period end)
% of all new flows by new lending (6 mnth)
4,110
4,149
4,793
4,254
4,326
3,788
4,042
3,420
3Q184Q181Q192Q19
Reached end of I/O periodCustomer initiated

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Performance of interest only mortgages
101
Credit quality
1 A surplus requirement measures the extent to which a borrower’s income exceeds loan repayments, expenses and other commitments, as assessed. 2 Weighted average LVR calculation takes into account size of
outstanding balances. 3 Customer loans ahead on payments exclude equity/line of credit products as there are no scheduled principal payments.
Interest only (I/O) lending
• I/O loans assessed on a principal and interest basis
– Loans originated prior to 2015 were assessed on a
principal and interest basis
over the full contractual term
– Loans originated from 2015 wer
e assessed on a principal and interest basis
over the residual amortising term
• Serviceability assessments also include an interest rate buffer (currently at least
2.25%
), minimum assessment rate (7.25%) and a requirement to be in surplus
1
• I/O loans are full recourse
I/O portfolio statistics as at 31 March 2019
• 73% weighted average LVR of interest only loans at origination
2

• 65% of customers ahead of repayments (including offset accounts)
3
• Offset account balances attached to interest only loans represent 45% of offset
account balances
I/O portfolio performance as at 31 March 2019
• 90+ day delinquencies 75bps (compared to P&I portfolio 83bps)
• Annualised loss rate 3bps (net of insurance claims)
0.0
0.5
1.0
1.5
2.0
Mar-15Sep-15Mar-16Sep-16Mar-17Sep-17Mar-18Sep-18Mar-19
I/OP&I
Australian mortgage portfolio delinquencies (%)
Australian I/O loan portfolio balances ($bn)
Introduced new
hardship treatment
Increase in 90+ day delinquencies
includes impact of decline in I/O balances
as borrowers switch to P&I and
new flows have declined
0
2
4
6
8
10
12
14
0
50
100
150
200
250
Sep-15
Nov-15
Jan-16
Mar-16
May-16
Jul-16
Sep-16
Nov-16
Jan-17
Mar-17
May-17
Jul-17
Sep-17
Nov-17
Jan-18
Mar-18
May-18
Jul-18
Sep-18
Nov-18
Jan-19
Mar-19
I/O performing loans balance (lhs)
I/O 90+ day delinquencies balance (rhs)

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Australian investment property portfolio
102
Credit quality
1 Weighted average LVR calculation takes into account size of outstanding balances. 2 Average LVR of new loans is on rolling 6 month window. 3 Includes RAMS in 1H19. Excludes RAMS in 1H18 and 2H18. Dynamic LVR is the loan-to-value ratio
taking into account the current loan balance, changes in security value, offset account balances and other loan adjustments. Property valuation source Australian Property Monitors. 4 Includes amortisation. Calculated at account level where split loans
represent more than one account. 5 Customer loans ahead on payments exclude equity/line of credit products as there are no scheduled principal payments.
Investment property lending (IPL) portfolio Mar-18 Sep-18 Mar-19
Weighted averages
1
LVR of IPL loans at origination (%) 73 73 73
LVR of new IPL loans in the period
2
(%)

71 70 71
Dynamic

LVR
3
of IPL loans (%) 54 56 59
Average loan size
4
($’000) 318 321 321
Customers ahead on repayments
including offset accounts
5
(%)
58 58 58
90+ day delinquencies (bps) 53 57 68
Annualised loss rate (net of insurance claims) (bps) 2 3 3
0
10
20
30
40
50
0<=60
60<=7070<=7575<=8080<=8585<=9090<=9595<=97
97+
Owner occupiedIPL
0
5
10
15
20
25
30
<=50
50<=75
75<=100
100<=125125<=150150<=200200<=500
500<=1m
1m+
Owner occupiedIPL
Investment property portfolio by
number of properties per customer (%)
62
26
7
2
1
1
1
2
3
4
5
6+
Australian mortgage portfolio at 30 September 2018 Australian mortgage portfolio at 31 March 2019
LVR at origination (%)
Mortgage applications by
gross income band (%)
Chart does not add to 100 due to rounding

Australian mortgage deep dive
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 Portfolio comprised of residential mortgages, excluding RAMS, and business mortgages originated via a separate platform such as construction loans and loans to SMSFs. 2 Dynamic LVR is the loan-to-value ratio taking into account the current loan
balance, changes in security value, offset account balances and other loan adjustments. Property valuation source Australian Property Monitors. 3 Based on a specific Rocket Repay rate offered during the period. Westpac Rocket Repay Home Loan
exclusive of discounts assuming loan amount $250,000 - $499,999. 4 Source, Westpac Economics, CoreLogic. All dwellings Australia - average 8 major capital cities. Prices to March 2019.

Australian mortgage lending
1
by origination date, dynamic LV R
2
and income bands (%)
103
21
7
2
35
14
5
11
3
1
67
25
9
<6060-80>80
38
6
2
33
7
3
7
1
79
15
6
<6060-80>80
10
12
5
19
23
11
8
7
4
38
42
20
<6060-80>80
% of portfolio at 31 March 2019 16 22 62
Westpac SVR
3
(%) (excl. discounts) 7.86 6.89 – 5.70 5.38
Westpac interest rate buffer (%) 1.80 1.80 2.25
Westpac interest rate floor (%) 6.80 6.80 7.25
House price changes
4
At least +26% +11% to +34% (9%) to +10%
<2011 2011-14 2015+
Dynamic LVR
2
bands (%)
>$250k
$100k - $250k
<$100k

Gross income bands
Credit quality
Year of origination
Chart may not add due to rounding

Lenders mortgage insurance arrangements
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 Since 18 May 2015 WLMI has underwritten all mortgage insurance, where required, on Westpac originated Mortgages. The in-force portfolio of loans includes mortgage insurance provided by external providers. 2 Prudential Capital Requirement (PCR)
calculated in accordance with APRA standards. 3 Insured coverage is net of quota share. 4 Low doc loans no longer sold. Refers to arrangements in place for legacy products. 5 No WLMI coverage if the loan goes 90+ days in arrears in the first twelve
months and insurance via WLMI ceases once the loans is 8 years from origination (unless in a securitised pool) . 6 Loss ratio is claims over the total earned premium plus exchange commission. 7 LMI gross written premium includes loans >90% LVR
reinsured with Arch Reinsurance Limited. 1H19 gross written premium includes $52m from the arrangement (2H18: $61m and 1H18: $62m).
Lenders mortgage insurance arrangements Lenders mortgage insurance (LMI)
104
LVR Band Insurance
• LVR ≤80%
• Low doc
4
LVR ≤60%
Not required
• LVR >80% to ≤ 90%
• Low doc
4

LVR >60% to ≤ 80%
• Where insurance required, insured through captive insurer, WLMI
5

• LMI not required for certain borrower groups
• R
einsurance arrangements:
− 40% risk retained by WLMI
− 60% risk transferred through quota share arrangements wi
t
h Arch Reinsurance
Limited, Tokio Millennium Re, Endurance Re, Everest Re, Trans Re, AWAC and
Capita 2232
• LVR >90% • 100% reinsurance thr
ough Arch Reinsurance Limited
− Reinsurance arrangements see loans
with LVR >90% insured through WLMI with
100% of risk subsequently transferred to Arch Reinsurance Limited
1H18 2H18 1H19
Insurance claims ($m) 6 4 7
WLMI claims ratio
6
(%) 20 11 25
WLMI gross written premiums
7
($m) 90 90 76
Insurance statistics
• Where mortgage insurance is required, mortgages
are insured through Westpac’s captive mortgage
insurer, Westpac Lenders Mortgage Insurance
1
(WLMI), and reinsured through external LMI
providers, based on risk profile
• WLMI is well capitalised (separate from bank
capital) and subject to APRA regulation. WLMI
targets a capitalisation ratio of 1.2x PCR
2
and has
consistently been above this target
• Scenarios indicate sufficient capital to fund claims
arising from events of severe stress – estimated
losses for WLMI from a 1 in 200 year event are
$97m net of re-insurance recoveries
(2H18: $105m)
Credit quality
85
9
6
Not insured
Insured by third
parties
Insured by WLMI
Westpac’s Australian
mortgage portfolio at 31 Mar 2019 (%)
3

Mortgage portfolio stress testing outcomes
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
105
Credit quality
Australian mortgage portfolio stress testing
1 Assumes 30% of LMI claims will be rejected in a stressed scenario. 2 Stress test outcomes for 30 September 2018 have been restated to reflect the implementation of AASB 9, improved portfolio data and general
model updates. 3 Represents 1H19 actual losses of $51m annualised. 4 Stressed loss rates are calculated as a percentage of average exposure at default (EAD).
• Westpac regularly conducts a range of portfolio stress tests as part of its
regulatory and risk management activities
• The Australian mortgage portfolio stress testing scenario presented here assumes
a severe recession in which significant reductions in consumer spending and
business investment lead to six consecutive quarters of negative GDP growth.
This results in a material increase in unemployment and nationwide falls in
property and other asset prices
• Estimated Australian housing portfolio losses under these stressed conditions are
manageable and within the Group’s risk appetite and capital base:
− Cumulative total losses of $4.9bn over three years for the uninsured portfolio
(FY18: $4.4bn)
− Cumulative claims on LMI, both WLMI and external insurers, of $1.0bn over the
three years (FY18: $1.0bn)
− Loss rates presented this half have increased from previously presented results
primarily due to further declines in house prices which lead to a higher dynamic
LVR starting point for the portfolio and from more granular information on the
RAMS portfolio
− The introduction of AASB 9 on 1 October 2018 sees accounting recognition of
losses recognised earlier in the stressed scenario compared to AASB 39
• In addition to Group stress testing, WLMI separately conducts stress testing to test
the sufficiency of its capital position to cover mortgage claims arising from a
stressed mortgage environment
• Capital targets incorporate buffers at the Westpac Group level that also consider
the combined impact on the mortgage portfolio and WLMI of severe stress
scenarios
Stressed scenario
Key assumptions Current Year 1 Year 2 Year 3
Portfolio size ($bn) 446 430 421 419
Unemployment rate (%) 5.0 11.6 10.6 9.6
Interest rates (cash rate, %) 1.50 0.25 0.25 0.25
House prices
(% change cumulative)
- (18.5) (29.7) (35.2)
Annual GDP growth (%) 2.4 (3.9) (0.2) 1.7
Stressed loss outcomes (net of LMI recoveries)
1
Portfolio as at 30 September 2018
2

$ million

86

1,619 2,390 785
Basis points
4
2 33 51 17
Portfolio as at 31 March 2019
$ million

102
3
1,837 2,578 874
Basis points
4
2 38 54 19

Capital, Funding
and Liquidity

37
38
37
39
38
40
41
43
42
44
44
45
44
45
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
10.6
0
2
4
6
8
10
12
15
20
25
30
35
40
45
50
55
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
Mar-19
Westpac CET1 capital (lhs, $bn)
Westpac CET1 capital ratio (rhs, %)
Organic capital generation offset by impact of notable items
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 APRA’s revision to the calculation of RWA for Australian residential mortgages, which came into effect on 1 July 2016.
107
CET1 capital ratio (%) and CET1 capital ($bn)
(APRA basis)

Highlights
Capital, Funding and Liquidity
$bn %
APRA industry
guidelines 10.5%
unquestionably strong
Impact of APRA’s
changes to
mortgage RWA
1
• RWAs down $5.6bn, mostly in non-credit risk
• Credit RWA was little changed as business
grow
th, changes in credit quality and foreign
exchange movements were offset by the impact
of AASB 9 adoption
Risk weighted
assets (RWA)
• 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
$989m, reduced RWA by $3.9bn, and
increased stressed exposures
Impact of AASB 9
and AASB 15
Implementation
• CET1 ratio up 1bp from September 2018
• Organic capital growth of 27bps, off
set by
impact of notable items (25bps)
CET1 ratio of
10.64%
• Further clarity on revised capital frameworks
expected over 2019/2020
• APRA new derivative capital standard
appli
es from 1 July 2019 (estimated 20bp
impact to the CET1 ratio)
Future
developments

Current proposals on the capital framework
1
1 Regulatory change timeline is based on APRA’s 2019 policy agenda (published 28 February 2019).
108
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Standardised approach
to credit risk
Consult Finalise
APRA expected to
finalise updates to
suite of prudential
standards 2020-21
Implementation
Advanced approach
to credit risk
Consult, Quantitative impact study Implementation
Operational risk Consult Finalise Implementation
Leverage ratio Consult Finalise Implementation
Measurement of capital Consult Implementation
Interest rate risk in the
banking book
Consult Implementation
Counterparty credit risk
Implementation 1
July 2019
Loss absorbing capacity Consult Finalise
2023
Implementation
Related party exposures Finalise Implementation
RBNZ capital framework Consult Implementation date and transition under consultation
First half 2019

2021 2020
Second half 2019 2022
Capital, Funding and Liquidity

RBNZ capital proposals
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 Internal ratings based. 2 This includes replacing an existing NZ$1.5 billion Additional Tier 1 instrument, which is issued to Westpac ,with an eligible form of Tier 1 capital.
In December 2018, the RBNZ released a paper
“Capital Review Paper 4: How much capital is
enough?” outlining its capital proposals for NZ
banks
The RBNZ proposed:
• A Tier 1 capital requirement of 16% for
sy
stematically important NZ banks, including
Westpac NZ (WNZL). This includes prudential
buffers totalling 10% of RWA
• Changes to RWA measurement for IRB
1

accredited banks like WNZL so that RWA
equates to approximately 90% of the
standardised approach (currently closer to
75%)
• The 16% requirement may be met with up to
1.5%
of non-redeemable preference shares
• Existing AT1 capital instruments will no longer
be el
igible as regulatory capital
• A five year transition period will apply
Cons
ultation closes on 17 May and the RBNZ has
indicated that final decisions are expected to be
communicated in the third quarter of 2019
Summary of proposals
109
WNZL’s Tier 1 capital ratio was 14.5% at 31
March 2019
Assuming WNZL had to achieve a minimum 16%
Tier 1 capital ratio under the RBNZ’s proposals,
WNZL would require a further $3.5 – $ 4.0bn of
Tier 1 capital if applied at 31 March 2019
2

Potential WNZL implications
Assuming a further $2.0 – $2.5bn
2
of Tier 1 capital
was retained or injected into WNZL, under current
APRA rules the potential capital implications for the
Group are:
• No change to Westpac Group’s reported Level 2
CE
T1 ratio as WNZL is consolidated at Level 2
• The Group’s Level 1 CET1 ratio would reduce
by
~20bps. The Level 1 CET1 ratio would be
10.5% on a pro forma basis at 31 March 2019
APRA consultation on APS222 (Association with
Related Entities) is currently underway. APRA is
proposing to reduce limits on the level of capital
and exposure to intra-group entities.
On a pro forma basis, exposure to WNZL is below
APRA’s currently proposed prudential limit of 25%
if applied at 31 March 2019
Final outcomes for the Group are dependent on
other capital consultations APRA currently has
open
Potential Group implications
Capital, Funding and Liquidity

CET1 capital ratio, top quartile globally
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 Internationally comparable methodology aligns with the APRA study titled ‘International Capital Comparison Study’ dated 13 Jul y 2015. For more details on adjustments refer slide 113. 2. Group 1 banks BIS 75
th

percentile fully phased-in Basel III capital ratios from BIS monitoring report released 20 March 2019.
%
Mar-18 Sep-18 Mar-19
CET1 capital ratio 10.5 10.6 10.6
Additional Tier 1 capital 2.3 2.2 2.2
Tier 1 capital ratio 12.8 12.8 12.8
Tier 2 capital 2.0 1.9 1.8
Total regulatory capital ratio 14.8 14.7 14.6
Risk weighted assets (RWA)

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

Leverage ratio (internationally comparable) 6.4 6.5 6.4
CET1 capital ratio (internationally comparable) 16.1 16.1 16.2
10.6
12.8
14.6
16.2
19.1
21.3
CET1Tier 1Total
regulatory
capital
CET1Tier 1Total
regulatory
capital
110
BIS 75
th
percentile
2
APRA basis
Internationally comparable

basis
1

Capital, Funding and Liquidity
Capital ratios Key capital ratios (%)

361.4
362.7
0.9
1.4
2.1
0.5 362.7 (3.9)
(1.0)
Mar-18
Sep-18
AASB 9
impact
Business
growth
Credit quality
and portfolio
mix
Regulatory
modelling
changes
FX translation
impacts
Mark-to-
market
Mar-19
Flat
CET1 capital ratio and RWA movements
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 The impact of notable items on the CET1 ratio includes the capital deduction for the associated deferred tax assets. 2 Internationally comparable methodology aligns with the APRA study titled ‘International Capital
Comparison Study’ dated 13 July 2015.
CET1 capital ratio (% and bps)
111
10.50
10.63
96
8
7
4
10.64
16.17
(77)
(7)
(25)
(5)
Mar-18
APRA
Sep-18
APRA
Cash
earnings
ex notable items
Final dividendDividend
reinvestment plan
Ordinary
RWA
growth
Other capital
movements
Notable
items
Other itemsFX
translation
impact
Mar-19
APRA
Mar-19
Int. Comp.
Up 1 basis point
Organic
(+27bps)
Other Items
(- 26bps)
2
Capital, Funding and Liquidity
415.7
425.4 0.0
1.6
419.8
(5.9)
(0.5)
(0.8)
Mar-18
Sep-18
Credit risk
Market
risk
IRRBB
Operational
risk
Other
Mar-19
Down $5.6bn or 1.3%
See right
waterfall
Driven by lower interest
rates over the half
Translation impact,
mostly NZ$ loans
Movement in credit risk weighted assets ($bn) Movement in risk weighted assets ($bn)
1

Well placed on internationally comparable
CET1 and leverage ratios
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 Peer group comprises listed commercial banks with assets in excess of A$700bn and which have disclosed fully implemented Basel III ratios or provided sufficient disclosure to estimate. Based on company reports/ presentations. Ratios at 31
December 2018, except for ANZ, NAB and Westpac which are at 31 March 2019, (note NAB leverage ratio is as at 30 September 2018) and Bank of Montreal, Scotiabank, Royal Bank of Canada and Toronto Dominion are at 31 January 2019. Assumes
Basel III capital reforms fully implemented. Leverage ratio is on a transitional basis. Where accrued expected dividends have been deducted, these have been added back for comparability. US banks are excluded from leverage ratio analysis due to
business model differences, for example from loans sold to US Government sponsored enterprises.
Common equity Tier 1 ratio (%)
1

Leverage ratio (%)
1

Nordea
ANZ
CBA
Norinchukin
Bank
RBS
Westpac 16.2%

Rabobank

Sumitomo Mitsui

BPCE
Lloyds

ING Group

NAB
Standard Chartered

HSBC
China Construction Bank

Deutsche Bank

Barclays

Commerzbank

ICBC
Credit Suisse

BNP Paribas

Unicredit

Credit Agricole SA

JPMorgan Chase

Intesa Sanpaolo

Toronto Dominion Bank

Mitsubishi UFJ

Citigroup

Mizuho FG

Natixis

China Merchants Bank

Wells Fargo

Santander

Bank of America

BBVA
Agricultural Bank of China

Societe Generale

0%
5%
10%
15%
20%
China Construction Bank

ICBC
Bank of China

Agricultural Bank of China

China Merchants Bank

BBVA
Rabobank

Westpac 6.4%

CBA
Intesa Sanpaolo

ANZ
Norinchukin Bank

Nordea

HSBC
RBS
Standard Chartered

Lloyds

NAB
Santander

Credit Suisse

BPCE
Unicredit

Commerzbank

Mitsubishi UFJ

Sumitomo Mitsui

BNP Paribas

ING Group

Barclays

Mizuho FG

Scotiabank

Deutsche Bank

Societe Generale

Royal Bank of Canada

Credit Agricole SA

Bank of Montreal

Toronto Dominion Bank

Natixis

0%
2%
4%
6%
8%
Capital, Funding and Liquidity
112

Internationally comparable capital ratio reconciliation
Capital, Funding and Liquidity
(%)
Westpac’s CET1 capital ratio (APRA basis)

10.6
Equity investments Balances below prescribed threshold are risk weighted, compared to a 100% CET1 deduction under APRA’s requirements
0.4
Deferred tax assets Balances below prescribed threshold are risk weighted, compared to a 100% CET1 deduction under APRA’s requirements
0.5
Interest rate risk in the banking
book (IRRBB)
APRA requires capital to be held for IRRBB. The BCBS does not have a Pillar 1 capital requirement for IRRBB
0.2
Residential mortgages
Loss given default (LGD) of 15%, compared to the 20% LGD floor under APRA’s requirements. APRA also applies a
correlation factor for mortgages higher than the 15% factor prescribed in the Basel rules
1.9
Unsecured non- retail exposures LGD of 45%, compared to the 60% or higher LGD under APRA’s requirements
0.7
Non- retail undrawn commitments Credit conversion factor of 75%, compared to 100% under APRA’s requirements
0.5
Specialised lending

Use of internal-ratings based (IRB) probabilities of default (PD) and LGDs for income producing real estate and project
finance exposures, reduced by application of a scaling factor of 1.06. APRA applies higher risk weights under a supervisory
slotting approach, but does not require the application of the scaling factors
0.8
Currency conversion threshold
Increase in the A$ equivalent concessional threshold level for small business retail and small to medium enterprise
corporate exposures
0.2
Capitalised expenses
APRA requires these items to be deducted from CET1. The BCBS only requires exposures classified as intangible assets
under relevant accounting standards to be deducted from CET1
0.4
Internationally comparable CET1 capital ratio
16.2
Internationally comparable Tier 1 capital ratio
19.1
Internationally comparable total regulatory capital ratio
21.3
APRA’s Basel III capital requirements are more conservative than those of the Basel Committee on Banking Supervision (BCBS), lea ding to lower reported
capital ratios by Australian banks. In July 2015, APRA published a study that compared the major banks’ capital ratios against a set of international peers.
The following details the adjustments from this study and how Westpac’s APRA Basel III CET1 capital ratio aligns to an internationally comparable ratio, the
methodology aligns to this study
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
113

A$22bn new term funding raised in 1H19
114
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 Based on residual maturity and FX spot currency translation. Includes all debt issuance with contractual maturity greater than 13 months excluding US Commercial Paper and Yankee Certificates of Deposit. 2 Contractual maturity date for hybrids
and callable subordinated instruments is the first scheduled conversion date or call date for the purposes of this disclosure. 3 Perpetual sub-debt has been included in >FY25 maturity bucket. Maturities exclude securitisation amortisation. 4 Tenor
excludes RMBS and ABS. 5 WAM is weighted average maturity.
33
31
42
37
32
22
14
30
32
24
18
20
6
21
FY14FY15FY16FY17FY181H192H19FY20FY21FY22FY23FY24FY25>FY25
Covered bondHybridSenior/SecuritisationSub debt
Issuance Maturities
Term debt issuance and maturity profile
1,2,3
($bn)
1
8
7
9
17
7
10
1
30
38
53
43
46
27
FY17FY181H19
>5years
5 years
4 years
3 years
2 years
1 year
5.8yrs
New term issuance by tenor
2,4
(%)
6.5yrs
WAM
5
New term issuance by type (%) New term issuance by currency (%)
66
73
54
18
13
26
5
5
13
4
5
7
8
4
FY17FY181H19
Subordinated
debt
Hybrid
Securitisation
Covered bonds
Senior
unsecured
7
15
6
22
21
18
49
32
26
21
32
50
FY17FY181H19
AUD
USD
EUR
Other
Capital, Funding and Liquidity
Charts may not add to 100 due to rounding.
Charts may not add to 100 due to rounding. Charts may not add to 100 due to rounding.
Lengthening funding profile
ahead of NSFR transition
4.7yrs

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Funding and liquidity metrics
1 Includes long term wholesale funding with a residual maturity less than or equal to 1 year. 2 Equity excludes FX translation, Available-for -Sale securities and Cash Flow Hedging Reserves. 3 LCR is calculated as the percentage ratio of stock of
HQLA and CLF over the total net cash outflows in a modelled 30 day defined stressed scenario. Calculated on a spot basis. HQLA includes HQLA as defined in APS 210, RBNZ eligible liquids, less RBA open repos funding end of day ESA balances
with the RBA. Committed Liquidity Facility or CLF is made available to Australian Authorised Deposit-taking Institutions by the RBA that, subject to qualifying conditions, can be accessed to meet LCR requirements under APS210 – Liquidity. Other flows
include credit and liquidity facilities, collateral outflows and inflows from customers. 4 Other includes derivatives and other assets. 5 Other loans includes off balance sheet exposures and residential mortgages >35% risk weight.
115
Funding composition by residual maturity (%)
44
63
62
5
8
8
1
1
1
10
12
11
4
4
4
20
7
9
16
5
5
Sep-08Sep-18Mar-19
Wholesale Onshore <1yr
Wholesale Offshore <1yr
Wholesale Onshore >1yr
Wholesale Offshore >1yr
Securitisation
Equity
Customer deposits
Net stable funding ratio (NSFR) at 31 March 2019 ($bn)
Available Stable FundingRequired Stable Funding
606.2
536.4
Capital
Retail &
SME
deposits
Corporate &
Institutional
deposits
Wholesale
funding and
other liabilities
Residential
mortgages
≤35% risk
weight
Other
loans
5
Liquids
and other
4
Liquidity coverage ratio (LCR)
3
(%)
100.4
133.5
97.0
133.7
Net cash outflowsLiquid assetsNet cash outflowsLiquid assets
LCR 133% LCR 138%
30 September 2018 31 March 2019
Customer deposits High Quality Liquid Assets
Wholesale funding Committed Liquidity Facility
Other flows
NSFR
30 Sep 2018 114%
31 Mar 2019 113%
2
1
1
Capital, Funding and Liquidity

Divisional Results

(2)
1,709
1,413
110 1,523
70
2 1,516
1,514
(39)
(8)
(32)
1H182H18
Add back notable
items
2H18 ex-notable
items
Net interest income
Non-interest income
Operating expenses
Impairment charges
Tax and NCI
1H19 ex-notable
items
Notable items
1H19
Consumer Bank earnings reflect challenging environment
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 Restated for the impact of AASB 9 and AASB 15. 2 Refer pages 160 & 161 for metric definitions and details of provider. 3 Customer satisfaction and NPS metrics refer to total Consumer Bank customers across the
Westpac Group. 4 6 month moving average.
1H18 2H18 1H19
Change
on 2H18
Revenue
1
($m)
4,459 4,152 4,241
2%
Net interest margin
1
(%)
2.40 2.14 2.20
6bps
Expense to income
1
(%)
39.6 45.4 42.9
(241bps)
Customer deposit to loan ratio (%)
52.7 53.5 53.2
(34bps)
Stressed exposures to TCE
1
(%)

0.64 0.65 0.74
9bps
1H18 2H18 1H19
Change
on 2H18
Total customers (#m)
9.3 9.5 9.5 -
Active digital customers (#m)
4.2 4.3 4.4 2%
Digital sales
2
(%)
29 33 36
3ppts
Total branches (#)
1,025 1,006 971
(35)

Total ATMs (#)
2,835 2,542 2,213
(329)
Customer satisfaction
2,3

7.6
(=2
nd
)
7.3
(2
nd
)
7.3
(2
nd
)
-
Net promoter score (NPS)
2,3
6mma
4
+0.3
(3
rd
)
-6.8
(2
nd
)
-6.6
(2
nd
)
-
Key operating metrics
Key financial metrics Cash earnings ($m)
117
Consumer
AIEA up 1%, margin up
3bps (ex notable items)
from improved mortgage
and deposit spreads
Little changed
ex notable items
Higher impairment
charges driven by
mortgage delinquencies,
amplified by adoption of
AASB 9 (lifetime loss)
Up $101m or 7%
Lower card
fees and FX
revenue

2,469
2,625
2,693
2,269
2,420
1H172H171H182H181H19
4,138
4,400
4,459
4,152
4,241
1H172H171H182H181H19
1H19 performance reflects the challenging environment
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Revenue per FTE ($’000) Loans ($bn) & deposit to loan ratio (%) Expense to income ratio (%)

Core earnings ($m) Cash earnings ($m) Revenue ($m)
118
Consumer
1,526
1,620
1,709
1,413
1,514
1H172H171H182H181H19
40.3 40.3
39.6
45.4
42.9
1H172H171H182H181H19
404
433
435
401
427
1H172H171H182H181H19
360
370
379
385
387
52.7
53.0
52.7
53.5
53.2
Mar-17Sep-17Mar-18Sep-18Mar-19
LoansCustomer deposit to loan ratio
Core earnings reduced by
notable items of
2H18:($144m) 1H19:($16m)
Cash earnings reduced by
notable items of
2H18:($110m) 1H19:($2m)
Revenue reduced by notable
items of 2H18:($105m)
1H19:($47m)
Expense to income ratio
impacted by notable items
2H18:+2.0% 1H19:(0.3%)

Improving the customer experience through digital
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 Sales refer to Westpac brand. 2 This feature is currently only available to Bank of Melbourne customers. 3 Digital Mail launched in March 2018 for St.George, February 2018 for Westpac.
Innovation
119
Digitising Making it easier to connect
Consumer
• Applications can be completed online or via mobile
• Documents can be uploaded remotely
• Specialist support available via live chat
• Personalised pricing and valuations available
• Customers can stop and re-s
t
art the process at
any time
• Ability to sign mortgage documents elec
tronically
2
Auto save feature, allows customers to enter and
exit product applications at any stage, continuing
their application from where they left off

Term deposit pricing platform
• Platform allowing customers to view, accept and
fulfil term deposits online
• 18% of term deposit sales
1
now via digital
(up from 12% in October 2018)

Building saving habits
• Customers can view tailored
and dynamic content in their
online banking, helping them
make the best use of their
accounts
• Almost 6,000 new sav
ings
accounts opened since January
2019
St.George online home loan application

Digital Mail
3
• Customers can receive
documents faster, and access
them anywhere, anytime
• Reduces post
age and paper
usage, and provides a
permanent record of
communication
• ~900k letters have been sent
vi
a Digital Mail since launch
Improving the application process
Webchat
Customers on Westpac desktop and mobile can
contact Westpac via secure messaging and
Webchat anywhere, anytime. To date 130,000
chats have occurred, with 79% resolved without
escalation to a banker

Business Bank, headline results impacted by remediation provisions,
up 5% excl. notable items
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
5 1,080 1,080
1,085
22
89
1,013
(15)
(12)
(25)
(131) 1,144
1H182H18
Add back notable items
2H18 ex-notable items
Net interest income
Non-interest income
Operating expenses
Impairment charges
Tax and NCI
1H19 ex-notable items
Notable items
1H19
1H18 2H18 1H19
Change
on 2H18
Revenue ($m)
2,639 2,677 2,510
(6%)
Net interest margin (%)
3.19 3.17 3.02
(15bps)
Expense to income (%) 35.9 36.1 39.4
324bps
Customer deposit to loan ratio (%)
71.4 72.5 72.2
(38bps)
Stressed exposures to TCE (%)
2.56 2.79 2.74
(5bps)
1H18 2H18 1H19
Change
on 2H18
Total business customers (‘000’s)
1,085 1,079 1,073
(1%)
Customer satisfaction
1
(rank)
#1 #1 #1
-
Customer satisfaction - SME
1
(rank)
#1 #1 #1
-
Digital sales
1
(%) 13 15 20 5ppts
Key operating metrics
Key financial metrics Cash earnings ($m)
120
Business
AIEA flat. Margins up 7bps
(ex notable items) from
asset repricing and
improved deposit spreads
Lower lending volumes
and merchant fees
Down 6%
1 Refer page 160 for metric definitions and details of provider.
Impairment charges
lower due to a reduction
in stress in commercial
portfolio
Higher regulatory and
compliance expenses
Up 5%
ex notable items

1H19 performance impacted by notable items
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Revenue per FTE ($’000) Loans ($bn) & deposit to loan ratio (%) Expense to income ratio (%)
Core earnings ($m) Cash earnings

($m) Revenue ($m)
121
Business
2,495
2,588
2,639
2,677
2,510
1H172H171H182H181H19
1,581
1,648
1,691
1,710
1,522
1H172H171H182H181H19
958
1,045
1,080 1,080
1,013
1H172H171H182H181H19
35.9
36.3
0.2
3.1
36.6
36.3
35.9
36.1
39.4
1H172H171H182H181H19
Notable items impact
775
809
828
849
821
1H172H171H182H181H19
146
149
152
153
151
70.0
71.7
71.4
72.5
72.2
Mar-17Sep-17Mar-18Sep-18Mar-19
LoansCustomer deposit to loan ratio
Revenue lower from
notable items of
1H19:($174m)
Core earnings lower from
notable items of
2H18:($5m) 1H19:($188m)
Cash earnings lower from
notable items of
2H18:($5m) 1H19:($131m)

Transforming the Business Bank
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Investing in bankers
122
Digital for customers Payment and transaction solutions
Business
Empowering more customers
with online capabilities such as
account opening, overdraft
access and servicing
Helping customers take
and make payments, meet cash
flow shortfalls and manage
payables and receivables
Enabling bankers to build great
customer relationships through industry
insights, paperless processes, simplified
products and innovative technologies

Improving banker productivity
• Implemented an online tool for bankers providing
integrated diary management, compliance and regulatory
alerts, and access to customer information
• Launched an online portal for SME customers’ service
requests. Increased “first time right” to 99%
Improving operating model
• Introduced a dedicated relationship team, for Westpac
SME customers, of business bankers and other
specialists. Enabling greater support for small business
customers
• Driving efficiency through centralised servicing activity
for Commercial customers
• LOLA embedded in St.George, Bank of Melbourne
and BankSA, contributing to quicker time to yes for
customers and 1,200 hours saved
• 1,650 bankers have completed the Business Institute
program since its launch in October 2017. Continued
to expand the program, with the development of a new
credit curriculum, in partnership with Macquarie
University, in 1H19

Digital sales
• Investment in digital capabilities has supported a 5ppt rise
in the proportion of digital sales to 20% from 2H18
Biz Invoice
• Online invoice solution provides SME customers with a
free service to create, preview and send invoices to
customers
Improved online capability
• Self serve usage three times higher than March 2018,
through new features including:
- Enabled push notifications making term deposit
rollovers easier
- Simplified the process for customers to open multiple
accounts online
- Password resets made easier, with more security and
removal of mandatory resets

Presto Smart (launched 2018)
• Integrated payments solution, which provides fast, reliable
and secure payments without the need for manual
reconciliation and re-keying
• Supporting an increase in the merchant business with
60% of Presto Smart customers new to this business
• Expanded network of PoS partners, with 24 retail and
hospitality PoS providers integrated
• >3000 devices currently operational
• Presto Smart developed collaboratively via the Group’s
Fintech investment

BTFG, committed to putting it right: announced wealth reset,
repriced platforms and ceased grandfathered commission payments
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 At 1 Jan 18, Westpac Life Insurance Services Limited became the preferred insurer for BTFG Corporate Super members. Life insurance in-force premium at Mar 19 consist of $979m retail, $280m Group Life Insurance (2H18 consists $994m retail, $283m Group Life Insurance; 1H18:
$1,000m retail, $276m Group Life insurance). 2 Refer page 160 for wealth metrics provider. 3 Strategic Insight, All Master Funds Admin at Dec 18 (for 1H19), at Jun 18 (for 2H18), and at Dec 17 (for 1H18) and represents the BT market share at these times. 4 Strategic Insight (Individual Risk)
rolling 12 month average. New sales includes sales, premium re-rates, age and CPI indexation Dec 18. 5 Internally calculated from APRA quarterly general insurance performance statistics, Dec 18.

1H18 2H18 1H19
Change on
2H18
Revenue ($m)
1,175 1,037
439
(58%)
Expense to income (%)
50.2 65.8
198.6
large
Total funds ($bn) (spot)
197.7 205.6
203.1
(1%)
Loans ($bn) (spot)
20.8 21.0
21.1
-
Deposits ($bn) (spot)
31.7 33.0
33.5
2%
Life Insurance in-force premiums
1
($m)
1,276 1,277 1,259 (1%)
General Insurance GWP ($m) 251 252 259 3%
Key operating metrics ($m)
Key financial metrics Cash earnings ($m)
123
BT Financial Group
1H18 2H18 1H19
Change on
2H18
Customers with a wealth product
2
(%) 18 17 17 -
Planners (salaried & aligned) (#) (spot)
939 803 679 (124)
Platform FUA market share
3

(inc. Corp Super) (%)

18 19 18 (1ppt)
Platform gross flows market share
3

(inc. Corp Super) (%)

21 20 25 5ppt
Life Insurance market share
4
(%)

11 10 9 (1ppt)
H&C insurance market share
5
(%)
6 6 6 -
Cash earnings (CE) ($m)
(305)
401
(620)
406
241
141
46
3
(29)
(1)
(20)
(66)
382
1H182H18
Add back notable items
2H18 ex-notable items
Funds Management income
Insurance income
Expenses
Tax and impairment charges
1H19 pro-forma
CE: Grandfathered payments
and platforms repricing
CE: Catastrophe claims
Notable items
1H19
Up $19m or 5%
Down $546m
Weaker market performance
and lower advice revenue from
reduced activity

Sound fundamentals
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 Includes CCI gross written premiums of $12m in 1H19 (2H18: $13m; 1H18:$16m; 2H17:$21m; 1H17:$25m) 2 Retail Platforms market share sourced from Strategic Insight, All Master Funds Admin segment and
represents the BT Wealth business market share disclosed in Strategic Insight as at December 2018. 3 Strategic Insights December 2018. 4 Market share is Retail life insurance new sales.
Life insurance lapse rates
3
(%) Life insurance market share
3,4
(%) Retail platforms market share
2,3
(%)
Insurance premiums ($m) Insurance claims rates (%) Funds ($bn)
124
BT Financial Group
109.4
108.6
109.2
110.5
103.7
3.9
6.7
9.4
12.4
17.1
35.8
36.2
37.4
39.3
38.9
38.4
36.4
38.0
39.6
39.8
4.0
3.5
3.7
3.8
3.6
191.5
191.4
197.7
205.6
203.1
Mar-17Sep-17Mar-18Sep-18Mar-19
Legacy platformsPanoramaSuperannuation
Packaged fundsOther
250
258
251
252
259
966
993
1,000
994
979
64
75
276
283
280
1,030
1,068
1,276
1,277
1,259
1H172H171H182H181H19
Group Life in-force premiums
Retail Life in-force premiums
General Insurance gross written premiums¹
49
35
54
37
81
38
35
44
42
48
2H162H171H182H181H19
General InsuranceLife Insurance
Dec-14Dec-15Dec-16Dec-17Dec-18
WBCPeer 1
Peer 2Avg next top 4
Dec-14Dec-15Dec-16Dec-17Dec-18
WBCPeer 1
Peer 2Market Avg
Dec-14Dec-15Dec-16Dec-17Dec-18
WBCPeer 1
Peer 2Avg next top 4

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Meeting customers’ wealth needs via digital
1 Investment Trends Platform Competitive Analysis and Benchmarking Report, December 2018. 2 Managed funds are managed investment schemes which are unlisted products. Investor may buy and sell units in the
funds available on our investment menus,
125
BT Financial Group
“Best Technology Offering” (Panorama)
Conexus Financial Superannuation Awards

“Wealth Management Experts of the Year 2019”
APAC Australian Enterprise Awards

“Best Private Bank in Australia 2019”
Global Finance Awards

The Westpac Online Investing Loan awarded a
5 star rating in both the Managed Fund Investor
and Share Investor profiles
Canstar 2018

“Innovation in Retail Life Insurance” for Claims Cancer
Assistance program
FSC Life Insurance Award – in March 2019

Outstanding Value Contents Insurance
Canstar 2018

“Underwriting Team of the Year “ and “Trauma / Critical
illness Product of the year”
The Association of Financial Advisers (AFA) – in March 2019

81%
growth in general
insurance digital
sales since 1H18

Quote and Buy tool for H&C launched in 1H19
Improved design, redesigned questions to improve
cus
tomer understanding, more interactive quotes
“C ompare cover” table which explains the di
fferences in
levels of cover

Enhanced online claims process and form, supporting
customers choosing to complete online claims lodgement
through to completion
Enhancement to LifeCENTRAL+
(BT’s Life Insurance Quote and application software)
Split payment options for policies linked inside and
outs
ide super
Integration with Om
niLife Risk Research tool
Personal statement navi
gation

30%
increase in
quotes generated
by advisers since
launch in April
2019

$8bn
in Managed
Funds FUA
2
, up
113% over last 12
months

Panorama
Voted No1 investment platform for online business
management features and cyber security, with an
overall score of 92%
1

Rated top three investment platform overall and
topping “Best online business management”, “Best
mobile app” and “Best client portal” categories
1

Global Investment Services online portal launched
which provides clients with access to their investment
profile

Wider choice of Investments on Super For Life,
investment menu increased from 4 to 38 options

Super Invest and BT Invest now available to
St.George, Bank of Melbourne and BankSA customers

41%
growth in
customers wealth
needs met digitally
since 1H18
New and improved customer services Digitising insurance: improving customer experience
Award
Winners

Panorama: supporting advisers and investors

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack

126
BT Financial Group
6,640
11,778
17,608
23,462
32,444
Mar-17Sep-17Mar-18Sep-18Mar-19

Up 84%
Investors on Panorama (#)
Advisers on Panorama (#) SMSF funds on Panorama(#)
1 Strategic Insights December 2018.

One core
operating
system

SMSFs

Digital user
experience

Bank
connectivity
/security

One system for
all investors &
advisers
BT Panorama’s
unique offers
FUA on Panorama ($m)
3,217
4,305
5,332
6,215
7,204
Mar-17Sep-17Mar-18Sep-18Mar-19
Up 35%
3,936
6,713
9,363
12,402
17,041
Mar-17Sep-17Mar-18Sep-18Mar-19
Up 82%
969
1,355
1,584
1,775
2,291
Mar-17Sep-17Mar-18Sep-18Mar-19
Up 45%
Panorama highlights
#1 platform for netflows in the Retail Market
1

Launch of CoreSeries Porfolios managed
accounts, available on both BT Panorama Full and
Compact menus, with no portfolio level management
fees and a low underlying management fee between
50bps and 78bps
1,066 new advisers registered on Panorama
7,152 accounts on Asgard Open eWrap and
20,685 accounts on BT Wrap Open
3,090 accounts transferred from legacy
platforms onto Panorama

New pricing structure success measures
since 1
st
October 2018:

WIB discipline delivers a solid performance
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 WIB customer revenue is lending revenue, deposit revenue, sales and fee income. Excludes trading, derivative valuation adjust ments and Hastings. 2 Excludes Westpac Pacific revenue and FTE.
Key financial metrics Cash earnings ($m)
127
Westpac Institutional Bank
1H18 2H18 1H19
Change
on 2H18
Revenue ($m)
1,441 1,566 1,425 (9%)
Net interest margin (NIM) (%)
1.60 1.74 1.67 (7bps)
Expense to income ratio (%)
47.1 49.2 45.9 (334bps)
Customer deposit to loan ratio (%)
129.8 135.5 125.1 large
Stressed exposures to TCE (%)
0.78 0.66 0.63 (3bps)
1H18 2H18 1H19
Change
on 2H18
Customer revenue
1
/ total revenue (%) 87.3 83.1 91.6 large
Trading revenue / total revenue (%) 11.2 3.8 8.8 large
Revenue per FTE ($’000)
2
802 909 844 (7%)
Key operating metrics
554
538
543
(11)
(130)
117
(24)
53
1H182H18
Net interest income
Non-interest income
Operating expenses
Impairment charges
Tax and NCI
1H19
Non- repeat of Hastings
costs ($121m) in 2H18
partly offset higher
regulatory and
compliance costs
Hastings
cash earnings impact
• 1H18: ($2m)
• 2H18: $19m
Up $5m or 1%
Non- repeat of Hastings fees
($180m) in 2H18 partly
offset by higher trading
income

Maintaining focus on returns
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
ROE (%) Stressed exposures as a % of TCE Margin (%)
Net loans ($bn) Risk weighted assets ($bn) Deposits ($bn)
128
Westpac Institutional Bank
5.8
3.5
3.0
1.7
1.3
1.1
1.3
0.8
0.7
0.6
Sep-10Sep-11Sep-12Sep-13Sep-14Sep-15Sep-16Sep-17Sep-18
Mar-19
.
Watchlist & substandard
90+ days past due and not impaired
Impaired
76.3
77.4
76.5
Mar-18Sep-18Mar-19
99.0
104.9
95.7
Mar-18Sep-18Mar-19
77.3
77.0
78.1
Mar-18Sep-18Mar-19
12.6
12.7
13.6
1H182H181H19
1.60
1.74
1.67
1H182H181H19
Down 9%
Up 6%
Down 1%
Up 1%
Up 1%
Down <1%
Down 7bps
Up 14bps
Up 90bps
Up 10bps
Lower government balances,
partly offset by higher
corporate term deposits
Reduced utilisation of
mortgage warehouse facilities
Change in
funding mix
4% reduction in allocated capital
from credit limit management

Opportunities in Institutional banking
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
129
Westpac Institutional Bank
1 Source: IJGlobal, March 2019.
Digitising liquidity and working capital management
• First release of WIB’s Digital Institutional Bank platform
• Offers digitised tr
ansactional banking with real-time cash mobility, visibility of
account balances, intraday balance movement and a single view of cash liquidity
throughout their entire corporate structure
Corporate Loan Portal
• First online portal providing customers with greater visibility and control over their
loans - now has 35 institutional customers
Leading bank in AUD renewable project finance commitments
1
• Leading financier to greenfield renewable energy projects in Australia, providing
more than $390m of new financing to seven projects in the last 12 months
Launched world’s first certified green deposit product
• Launched the world’s first Green Tailored Deposit to be certified by the
internationally recognised Climate Bonds Initiative (CBI) in November 2018
• All Green deposi
ts are associated with a defined pool of eligible assets or projects
which meet the strict CBI criteria, which can include renewable energy, low carbon
transport, low carbon buildings and water infrastructure
• Globally recognised for innovation in green finance at the Climate Bonds 4th Annual
“
Green Bond Pioneer Awards”
Supporting M&A financing
• Completed 12 transactions in 1H19
• Provided A$1.5billion in financing across a number of industries inc
luding property,
infrastructure, health tech and logistics
•Leading financial markets, financing and transactional banking product capability
•Deep expertise and industry insights
•Digital and banker-led
service aligned to customer needs
Westpac
Institutional Bank
Infrastructure
Renewables
M&A financing
Digitisation
Infrastructure market leadership
• The leading Australian infrastructure bank – supported 5 out of the 6 most recent
nation building infrastructure projects, and the only Australian bank to do so
• Strong relationships with borrowers (e.g. Government) and investors (e.g. Super)
Key public sector relationships
• Victorian Government has established the Central Banking System (CBS), with
Westpac as its banking partner, allowing Government to centralise and more
efficiently manage its working capital requirements across its departments and
numerous agencies. The CBS has resulted in a significant number of new to bank
relationships in the Victorian Public Sector, in addition to deepening our existing
relationship with the Victorian Government
Key role in major infrastructure project
• One of the lead bank’s to the Transurban-led consortium in their $9.3 billion
acquisition of 51% equity stake in WestConnex. Westpac was the only bank to
provide a debt underwrite to support key aspects of the transaction and one of a
select number of banks mandated as swap execution bank

Sound NZ earnings
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 Refer page 161 for details of metric definition and provider.
482
534
6
52
6 555
(16)
(27)
1H182H18
Net interest income
Non-interest income
Operating expenses
Impairment charges
Tax and NCI
1H19
1H18 2H18 1H19
Change
on 2H18
Revenue (NZ$m)
1,174 1,190 1,248
5%
Net interest margin (%)
2.24 2.25 2.23
(2bps)
Expense to income (%) 39.7 39.0 38.5
(53bps)
Customer deposit to loan ratio (%)
77.9 77.0 78.2
121bps
Stressed exposures to TCE (%)
1.86 1.57 1.57 -
1H18 2H18 1H19
Change
on 2H18
Customers (#m) 1.36 1.35 1.35 -
Branches (#)

164 163 161 (2)
Consumer NPS
1
+9 +8 +11 Up 3
Business NPS
1
+17 +0 +4 Up 4
Agri NPS
1
+52 +17 +16 Down 1
Funds (NZ$bn) (spot)

10.3 10.7 10.9 2%
Service quality – complaints (000’s) 8.5 9.2 8.6
(7%)
Key operating metrics
Key financial metrics Cash earnings (NZ$m)
130
New Zealand
$40m gain on sale of
Paymark
Increase in risk management
and compliance expenses
Up 4%
AIEA up 2% and margin down 2bps
from product mix changes offset by
higher business spreads
Turnaround from a
$13m impairment
benefit to a $14m
impairment charge

New Zealand key metrics
1
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 All figures in NZ$ unless otherwise indicated.
Net interest margin (%) Loans ($bn) & deposit to loan ratio (%) Expense to income ratio (%)
Core earnings ($m) Cash earnings ($m) Revenue ($m)
131
New Zealand
1,099
1,158
1,174
1,190
1,248
1H172H171H182H181H19
622
686
708
726
768
1H172H171H182H181H19
463
508
482
534
555
1H172H171H182H181H19
43.4
40.8
39.7
39.0
38.5
1H172H171H182H181H19
2.05
2.17
2.24
2.25
2.23
1H172H171H182H181H19
77
77
79
80
82
74.2
75.5
77.9
77.0
78.2
Mar-17Sep-17Mar-18Sep-18Mar-19
LoansCustomer deposit to loan ratio

Improving the customer experience through digital and new services
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Digital for customers
132

Making it easier for customers Deeper customer relationships
New Zealand
•Your Story
2
, is a tool ,
used in branches, to
assist customers identify
what’s important to them
and identify solutions to
help them achieve their
goals
Solutions based on customer goals
•Value Me program helps customers by identifying
the best products, services and banking solutions
based on their behaviour, saving customers time
and money
• 1.2m Playback reports hav
e been sent to customers
since launch. 52% of customers contacted, are
more likely to recommend Westpac and 71% of
customers are feeling more valued. Program has
supported improved retention
Creating ongoing value for customers
•Apple pay
launched 2
nd
April,
allows customers to use
their iPhone and Apple
Watch to make secure
contactless payments

21
27
30
35
2H171H182H181H19
1 Digital online sales includes fulfilment volumes. 2. YourStory launched August 2018.
Up 8ppts
Digital for customers
Digital sales
1
(%)
2.4
2.2
2.1
1.9
2H171H182H181H19
Down 12%
Over-the-counter transactions (#m)
• Since launch, 104,000 Your Story customer
conversations have been completed
• Expanded to cover businesses supporting small
busi
ness customers from January 2019
•EasyID enables
new to bank customers to open a
transaction or savings account, activate Westpac
online banking and PIN using their own mobile
device along with a NZ driver’s license or
passport from March 2019

•beContento,
a lif
estyle mobile
application for
insurance, that allows
customers to upload
photos and details of
their possessions and
receive a contents
insurance quote
Digitally active retail customers (%)
68
69
70
71
2H171H182H181H19
Up 2ppts

Balance sheet drivers
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
New Zealand deposits (NZ$bn)
New Zealand customer deposits (NZ$bn) and % of total
New Zealand net loans (NZ$bn)
New Zealand customer loans (NZ$bn) and % of total
133
New Zealand
79.1
80.4
0.7
1.0 82.1
Mar-18Sep-18ConsumerBusinessMar-19
30
32
33 33
15
15
15 15
13
15
14
16
58
62
62
64
Sep-17Mar-18Sep-18Mar-19
Transaction
Savings
Term deposits
52
23
25
47
48
49
50
2
2
2
2
28
29
29
30
77
79
80
82
Sep-17Mar-18Sep-18Mar-19
Business
Personal
Mortgage
61
2
37
Up 2%
61.6
61.9
0.9
1.4 64.2
Mar-18Sep-18ConsumerBusinessMar-19
Up 4% Up 2%
Up 2% Up 2%
Up 4% Flat Up 5%

4.40
3.90
6.12
6.69
6.40
0.25
0.40
0.40
0.10
0.20
$0
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
2014/152015/162016/172017/182018/19
Kg Ms
DividendMilk price
Stressed exposures remain low
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 Large reduction in stressed exposures from Sep 2011 to Sep 2012 due primarily to transfer of WIB assets during 2012. 2 Includes impaired exposures. 3 Source: Fonterra.
134
Business stressed exposures as a % of New Zealand business TCE
Agribusiness portfolio Milk price & Fonterra dividend
3
(NZ$) Dairy portfolio summary
New Zealand
Mar-18 Sep-18 Mar-19
TCE (NZ$bn) 8.9 9.2 9.4
Agriculture as a % of
total TCE
8.0 8.3 8.2
% of portfolio graded
as ‘stressed’
2
12.1 9.7 10.0
% of portfolio in
impaired
0.50 0.42 0.40

Westpac
Economics
forecast

16
6
58
6
6
8
Property
Manufacturing
Agriculture,
forestry & fishing
Wholesale trade
Construction
Other
• Overall portfolio health remains sound. Dairy
stressed exposures have been largely flat
since November 2018. Focus remains on
supporting existing dairy customers with
proven long-term viability
• Domestic milk production for 2018/19 is
expected to be up slightly on last season
following a record start. This is supporting
higher Global Dairy Trade auction prices and
lifts in 2018/19 forecast milk price
• Regulatory reform, increasing costs, and
disease issues (M. Bovis) continue to pose
challenges

3.4
2.2
1.5
0.9
0.8
0.7
0.5
0.4
0.3
0.4
0.3
0.2
0.2
0.2
0.2
0.1
0.2
0.1
0.0
0.1
0.1
0.1
0.0
0.1
9.6
4.4
3.2
2.3
2.4
2.9
5.0
4.8
4.0
3.4
3.0
2.9
13.2
6.8
4.9
3.3
3.4
3.7
5.5
5.3
4.4
3.9
3.3
3.2
Sep-11Sep-12Sep-13Sep-14Sep-15Mar-16Sep-16Mar-17Sep-17Mar-18Sep-18Mar-19
Watchlist & substandard
90+ day past due (dpd) and not impaired
Impaired
1

Consumer credit quality in good shape
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Unsecured consumer 90+ day delinquencies (%)
Mortgage loss rates each half (%)
Mortgage 90+ day delinquencies (%)
Mortgage portfolio LVR
1
(%) of portfolio
1 LVR based on current loan property value at latest credit event.
135
New Zealand
Mortgages 90+ day delinquencies
0.14
0.0
0.5
1.0
Mar-12
Sep-12
Mar-13
Sep-13
Mar-14
Sep-14
Mar-15
Sep-15
Mar-16
Sep-16
Mar-17
Sep-17
Mar-18
Sep-18
Mar-19
1.02
0.0
0.5
1.0
1.5
Mar-12
Sep-12
Mar-13
Sep-13
Mar-14
Sep-14
Mar-15
Sep-15
Mar-16
Sep-16
Mar-17
Sep-17
Mar-18
Sep-18
Mar-19
46%
23% 23%
5%
3%
0<=6060<=7070<=8080<=9090+
92% of mortgage portfolio less than 80% LVR
Mortgages 90+ days past due (%)
0.01
0.00
0.05
0.10
0.15
0.20
0.25
1H112H111H122H121H132H131H142H141H152H151H162H161H172H171H182H181H19
Portfolio run-off and
operational changes

Economics

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Australian and New Zealand economic forecasts
137
Calendar year
Key economic indicators (%) as at April 2019
2017 2018 2019F
World GDP
1
3.8 3.6 3.5
Australia

GDP
2
2.4 2.3 2.2
Private consumption
2
2.8 2.0 2.2
Business investment
2,3
6.9 -0.2 1.0
Unemployment – end period
5.5 5.0 5.5
CPI headline – year end

1.9 1.8 1.8
Interest rates – cash rate
1.50 1.50 1.00
Credit growth, Total – year end

4.8 4.3 2.8
Credit growth, Housing – year end
6.3 4.7 2.8
Credit growth, Business – year end
3.0 4.7 3.3
New Zealand GDP
2
3.4 2.3 2.8
Unemployment – end period
4.5 4.3 4.2
Consumer prices
1.6 1.9 1.5
Interest rates – official cash rate
1.75 1.75 1.50
Credit growth – Total
4
6.5 5.2 5.6
Credit growth – Housing
4
7.4 5.9 6.1
Credit growth – Business
4
5.2 4.3 5.2
Source: Westpac Economics.
1 Year average growth rates. 2 Through the year growth rates. 3 Business investment adjusted to exclude the effect of public s ector purchases of public assets.

4 NZ credit forecasts are for growth over the calendar year.
Economics

Australian economic snapshot
Persistent weakness in labour incomes and consumer spending
138
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Inflation remains subdued
1
Labour market to cool

1 Average RBA core CPI is average of seasonally adjusted trimmed mean & weighted median CPI.

-0.4
0.0
0.4
0.8
1.2
1.6
2.0
2.4
2.8
3.2
-1
0
1
2
3
4
5
6
7
8
Mar-97Mar-01Mar-05Mar-09Mar-13Mar-17
%qtr
%yr
Avg RBA core CPI %qtr (rhs)
Headline CPI %yr (lhs)
Avg RBA core CPI %yr (lhs)
f/cs
Sources: ABS, RBA, Westpac Economics.
Australian economy key statistics
(latest available as at 30 April 2019)
GDP 2.3%
Westpac Economics Forecast
(end calendar 2019)
2.2%
Unemployment
Rate
5.0%
Westpac Economics Forecast
(end calendar 2019)
5.5%
Inflation 1.3%
Westpac Economics Forecast
(end calendar 2019)
1.80%
Cash Rate 1.50%
Westpac Economics Forecast
(end calendar 2019)
1.00%
AUD/USD US$0.70
Westpac Economics Forecast
(end calendar 2019)
US$0.68
0.0
2.0
4.0
6.0
8.0
10.0
Mar-03Mar-07Mar-11Mar-15Mar-19
%
Unemployment rate smoothed
f/cs
-4
-2
0
2
4
6
8
10
Mar-99Mar-03Mar-07Mar-11Mar-15Mar-19
% ann
Labour income
real
f/cs
long run
avg
-4
-2
0
2
4
6
8
10
Mar-99Mar-03Mar-07Mar-11Mar-15Mar-19
% ann
Consumption
real
long run
avg
f/cs
Sources: ABS, Westpac Economics.
Sources: ABS, Westpac Economics.
Economics

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack

The Australian economy
139
33
23
19
14
6
2
32
26
20
10
7
2
32
26
20
10
7
2
26
14
20
35
4
1
NSWVictoriaQueenslandWASATasmania
GSPPopulationEmploymentExports
1 Real, financial years, experimental estimates.
Sources: ABS, Westpac Economics.
NSW and Victoria 58% of population and employment
Relative size of States (Share of Australia, 2017/18, %)
Sources: ABS, Westpac Economics. 1 Excludes ownership of dwellings and taxes less subsidies.
9
7
9
8
10
3
6
8
5
6
10
18
Mining
Manufacturing
Construction
Transport, Utilities
Wholesale, Retail
Agriculture
Household services
Health
Education
Public administration
Finance
Business services
Output 2018 - sector contribution to GDP (%)
1
Services
54%
2
7
9
6
13
3
13
13
8
6
4
15
Mining
Manufacturing
Construction
Transport, Utilities
Wholesale, Retail
Agriculture
Household services
Health, Social Assistance
Education
Public Administration
Finance
Business services
Australian employment by sector 2018 (%)
Services
59%
Services employ a large part of the Australian workforce

Economics

Australian economic outlook: slower growth ahead
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
140
Sources: ABS, Westpac Economics.
-2
-1
0
1
2
3
-2
-1
0
1
2
3
Consumer^Mining *Non-mining
investment
PublicNet exportsGDP
ppts /%ann
ppts /%ann
20152016201720182019f
Contributions to GDP growth
Sources: RBA, Westpac Economics.
ann%
Australian private sector credit growth (% ann)
-10
-5
0
5
10
15
20
25
Mar-95Mar-99Mar-03Mar-07Mar-11Mar-15Mar-19
HousingTotal creditBusiness
Forecasts
end 2019
Australian growth mix: shifting drivers
Australian private sector credit growth subdued
Australia: 27 years of uninterrupted growth
^ incl. housing
* mining investment
Sources: ABS, Westpac Economics.
-2
0
2
4
6
8
-2
0
2
4
6
8
198819921996200020042008201220162020
%ann %ann
Quarterly GDPAnnual GDPperiod averages
Economics

Public sector supporting growth; service exports solid
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Services exports rising
Population growth remains high
Budget balance: return to surplus in 2019/20
Public infrastructure: strong upswing
Sources: ABS, Westpac Economics.
141
Sources: ABS, Westpac Economics.
0
5
10
15
20
25
30
35
40
0
5
10
15
20
25
30
35
40
Dec-94Dec-98Dec-02Dec-06Dec-10Dec-14Dec-18Dec-22
$bn
$bn
Education
+15%
Leisure
travel
Business
services
1
+8.2%
Transportation
Business
travel
Rolling annual, nominal
Total service exports: +9.3%yr
1 Business services: $21bn, including: legal & professional services $5.3bn, financial services $4.3bn, IT & Telecomm $3.8bn, Intellectual property rights $1.1bn and other $6.3bn. 2 Includes WCFI+BI commodities index,
2 year swap spread and NFD to GDP.

Population growth 2006-2016 average (% ann)
1.69
1.37
1.20
1.15
1.08
0.80
0.76
0.33
0.28
0.00.51.01.52.0
Australia
Developing
World
NZ
Canada
US
UK
Developed
EU
Sources: ABS, AFR, Westpac Economics.
Sources: Budget papers, ABS, Westpac Economics.
-4.1
-4.2
-60
-40
-20
0
20
40
-6
-4
-2
0
2
4
1985/861993/942001/022009/102017/18
$bn % of GDP
$bn (rhs)% of GDP (lhs)
f/cs
to 2022/23
Underlying cash balance
0.0
0.3
0.6
0.9
1.2
1.5
0.0
0.3
0.6
0.9
1.2
1.5
Dec-96Dec-00Dec-04Dec-08Dec-12Dec-16
% of GDP
% of GDP
Transport
Water + other
Telecommunications
Economics

Australia’s commodity prices holding up
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Australia: commodity prices (index)
Terms of trade (% ann)
Australia: key commodity exports ($bn)
Australia’s top exports 2017-18 (% share)
142
1.4
1.6
2.0
2.3
4.8
5.4
7.7
8.0
15.0
15.2
Copper ore
Crude petroleum
Beef
Aluminium ore
Gold
Personal travel services
Natural gas
Education-related travel services
Coal
Iron ore
Source: DFAT, ABS.
Sources: ABS, Westpac Economics.
-2
0
2
4
6
8
10
12
-40
-30
-20
-10
0
10
20
30
Dec-94Dec-98Dec-02Dec-06Dec-10Dec-14Dec-18
% ann
% ann
Terms of trade (lhs)
National income, nominal GDP (rhs)
period avg: 5.6%yr
Sources: ABS, Westpac Economics. Sources: RBA, Westpac Economics.
0
1
2
3
4
5
6
7
8
0
1
2
3
4
5
6
7
8
Feb-09Feb-11Feb-13Feb-15Feb-17Feb-19
$bn
$bn
Iron oreCoalLNG
40
60
80
100
120
140
160
180
200
40
60
80
100
120
140
160
180
200
Mar-09Mar-11Mar-13Mar-15Mar-17Mar-19
index
index
AUDUSD
RBA non-rural commodity price index
f/cs
Economics

Some headwinds for the Australian consumer
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
143
Australian wage inflation remains low

Consumer spending constrained by income growth
Sources: ABS, Westpac Economics.
Election uncertainty

Australian wage inflation (% ann)

0
1
2
3
4
5
6
7
8
Dec-98Dec-00Dec-02Dec-04Dec-06Dec-08Dec-10Dec-12Dec-14Dec-16Dec-18
%yr
Aus private sector wages
Mining industry wages
Cooling housing market
-2
-1
0
1
2
3
4
5
-2
-1
0
1
2
3
4
5
Sep-12Sep-13Sep-14Sep-15Sep-16Sep-17Sep-18
%
%
6mth annualised pace
Sep ‘13
election
Jul ‘16
election
Australian employment
-30
-20
-10
0
10
20
30
40
50
-30
-20
-10
0
10
20
30
40
50
Feb-09Feb-11Feb-13Feb-15Feb-17Feb-19
%ann
%ann
pricesnew dwelling investmentturnover
Westpac Forecast
(dotted line)
Sources: CoreLogic, ABS, Westpac Economics.
Sources: ABS, Westpac Economics.

Sources: ABS, Westpac Economics.
Australian consumer spending (% ann) vs labour income (% ann)
-4
-2
0
2
4
6
8
10
Dec-98Dec-02Dec-06Dec-10Dec-14Dec-18
% ann
Labour income
Consumption
real
Consumption
long run avg: 3.4%yr
Economics

The Australian housing market in a period of adjustment
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
144
Australian dwelling prices
Sources: ABS, CoreLogic, Westpac Economics.
Sources: CoreLogic, Westpac Economics.
Capital city Pop’n
Dwelling prices %ch
last 3mths (Apr-19)
Dwelling prices YoY
(Apr-19)
Sydney 4.8m Down 2.5% Down 10.9%
Melbourne 4.5m Down 2.4% Down 10.0%
Brisbane 2.3m Down 1.2% Down 1.9%
Perth 1.9m Down 2.3% Down 8.3%
Finance approvals
Dwelling turnover
90
110
130
150
170
190
210
230
90
110
130
150
170
190
210
230
Jan-04Jan-06Jan-08Jan-10Jan-12Jan-14Jan-16Jan-18
index
Rest of Australia
Other capitals
Sydney-Melbourne
All dwellings (index, Jan 2004 = 100)
0
2
4
6
8
10
12
14
0
2
4
6
8
10
12
14
Feb-99Feb-03Feb-07Feb-11Feb-15Feb-19
$bn
$bn
'Upgraders'
Investors
First home buyers
Value of housing finance commitments ($bn)
Sources: ABS, Westpac Economics.
3.0
4.0
5.0
6.0
7.0
8.0
9.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
Mar-97Mar-01Mar-05Mar-09Mar-13Mar-17
AustraliaNSWVic
*qtly, annualised;
last 3mths are estimates based
on partial data
Sources: CoreLogic, ABS, Westpac Economics.
% of total stock
%
index
%
Economics

Quality of banks’ new lending continues to improve
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Lower new flow of 90%+ LVR loans
Change in composition of housing credit
Lower flow of interest only loans
145
Sources: RBA, Westpac Economics.
Sources: ABS, APRA, RBA, Westpac Economics.
Sources: ABS, APRA, RBA, Westpac Economics.
Source: APRA, RBA, Westpac Economics.
High LVR housing loans
5.20
5.93
5.94
6.42
5.0
5.5
6.0
6.5
7.0
7.5
Mar-14Mar-15Mar-16Mar-17Mar-18Mar-19
%
Own-occ. - principal and interest
Own-occ. - interest only
Investor - principal and interest
Investor - interest only
Mortgage interest rates (major bank average)
24.9
15.8
0
10
20
30
40
50
60
Dec-08Dec-10Dec-12Dec-14Dec-16Dec-18
%
Outstanding loans
New loans
10% investor
credit growth limit
APRA 30%
interest only new
flow limit
14.4
6.9
0
5
10
15
20
25
Dec-08Dec-10Dec-12Dec-14Dec-16Dec-18
%
80-90%90%+
Interest only housing loans
Introduction of differentiated mortgage pricing
3.3
0.5
4.7
0
4
8
12
16
Mar-13Mar-14Mar-15Mar-16Mar-17Mar-18Mar-19
Total
Investor
Owner-occupier
Australian housing credit growth (6mth % change annualised)
%
10% limit on investment
property annual portfolio growth
30% limit on interest
only originations
Economics

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Physical supply/demand fundamentals
remain sound across wider market
146
Sources: ABS, Westpac Economics. Dwelling stock is net of demolitions – implied by Census data.
Population versus dwelling stock (annual average change ‘000)
Dwelling supply has not kept pace with stronger demand Rental vacancy rates
Population growth remains high in Australia
0
50
100
150
200
250
300
350
400
450
0
50
100
150
200
250
300
350
400
450
1950s1960s1970s1980s1990s2000sLast 9yrsNext 2yrs
‘000
‘000
PopulationTotal increase in dwellings
high
rise
Dwelling approvals down from 2016 highs
Sources: ABS, RBA, Westpac Economics.
Dwelling approvals (‘000 month, annualised)
80
120
160
200
240
80
120
160
200
240
Feb-99Feb-03Feb-07Feb-11Feb-15Feb-19
TrendSA
Private approvals
RBA easing cycles
Sources: REIA, Westpac Economics.
Rental vacancy rates (%, quarterly, annual average)
3.0
2.3
2.0
3.6
0
1
2
3
4
5
6
7
8
Dec-88Dec-93Dec-98Dec-03Dec-08Dec-13Dec-18
%
SydneyBrisbane
MelbournePerth
National
average since
1980
Population growth 2006-2016 average (% ann)
1.69
1.37
1.20
1.15
1.08
0.80
0.76
0.33
0.28
0.00.51.01.52.0
Australia
Developing
World
NZ
Canada
US
UK
Developed
EU
Source: AFR, Westpac Economics.
f’casts
Economics

Australian household balance sheets
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Australian household debt to income ratio remains high
Australian household net wealth has also increased
Affordability & buyer sentiment
Higher income households have increased borrowings
147
Sources: ABS, RBA, Westpac Economics. Sources: ABS, RBA, Westpac Economics.
0
200
400
600
800
1000
1200
1400
Dec-83Dec-88Dec-93Dec-98Dec-03Dec-08Dec-13Dec-18
0
200
400
600
800
1000
1200
% %
Total assets
Total liabilities
Total net worth
% Annual household disposable income
Sources: CoreLogic, ABS, Westpac-Melbourne Institute.
*% income required to finance the purchase
of a median-priced dwelling
Australian household debt-to-income ratios by income quintile (%)
0
50
100
150
200
250
1st2nd3rd4th5th
2002200620102014
%
Sources: ABS, RBA, Westpac Economics.
Australian households debt to income ratio (%)
12
14
16
18
20
22
24
26
28
3040
60
80
100
120
140
160
180
200
Dec-97Dec-00Dec-03Dec-06Dec-09Dec-12Dec-15Dec-18
%
index
Buyer sentiment (Time to buy dwelling) (lhs)
Affordability (rhs)*
30yr avg
Deteriorate
Improve
latest
-40
-20
0
20
40
60
80
100
120
140
160
180
200
Dec-88Dec-93Dec-98Dec-03Dec-08Dec-13Dec-18
Total (gross) debt
Total debt net of offset accounts
Total debt net of all deposits
Trend since Jun-07
Forecasts
end 2019
Economics

Australia’s high rise apartment market –
past the peak although supply still coming online
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 Estimated proportion of approved dwellings completed by months after approval. Note that not all approved dwellings are completed, reflect ing both cancellations and reductions in project size. Also, ‘high rise’ projects
often have significant delays between approval and commencement.
Dwelling construction: indicative completion times
1
148
0
10
20
30
40
50
60
70
80
90
100
0
10
20
30
40
50
60
70
80
90
100
01224364860
%
%
Detached houses
Low-mid rise
High rise
Average construction time for
‘high rise’ about 2-2½yrs
Dwelling completions by capital city (‘000s, rolling 6mth totals)
Sources: ABS, Westpac Economics.
0
5
10
15
20
25
30
35
0
5
10
15
20
25
30
35
Jun-07Jun-13Jun-19Jun-07Jun-13Jun-19Jun-07Jun-13Jun-19
‘000s
‘000s
Non-high riseOther high riseHigh rise top 5 areas
Projected
Sydney Brisbane/SEQ Melbourne
41%
11%
48%
19%
10%
71%
18%
8%
74%
Projected
Projected
Source: RBA, CoreLogic.
Sources: REIA, Westpac Economics. Dwelling stock is net of demolitions – implied by Census data.
Population versus dwelling stock (annual average change ‘000)
Aggregate supply/demand fundamentals remain positive
0
50
100
150
200
250
300
350
400
450
0
50
100
150
200
250
300
350
400
450
1950s1960s1970s1980s1990s2000slast 8yrsnext 2yrs
‘000
‘000
PopulationTotal increase in dwellings
high
rise
Projected dwelling completions, major metro areas
Economics

New Zealand economic snapshot – growth has taken a step down
New Zealand economy key statistics
(latest available as at 30 April 2019)
149
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
GDP
1
2.8%
Westpac Economics Forecast
(end calendar 2019)
2.5%
Unemployment
Rate
4.3%
Westpac Economics Forecast
(end calendar 2019)
4.2%
Inflation 1.5%
Westpac Economics Forecast
(end calendar 2019)
1.5%
Cash Rate 1.75%
Westpac Economics Forecast
(end calendar 2019)
1.50%
NZD/USD US$0.67

Westpac Economics Forecast
(end calendar 2019)
US$0.66
0
10
20
30
40
0
10
20
30
40
2005200820112014201720202023
$bn
$bn
Kaikoura earthquake costs
Canterbury rebuild
Construction (excl. quake costs)
Construction spending (annual)
Source: Westpac Economics estimates.
Source: Stats NZ, Westpac Economics.
Population growth (annual)
0.0
0.5
1.0
1.5
2.0
0.0
0.5
1.0
1.5
2.0
200220062010201420182022
%
%
Population growth cooling
Construction approaching peak
Forecast
Forecast
GDP growth has cooled
-2
0
2
4
6
-2
0
2
4
6
20052007200920112013201520172019
Qtr % chg
Annual average % change
GDP (%)
%
%
Spending to slow as housing cools
-5
-4
-3
-2
-1
0
1
2
3
4
5
6
-25
-20
-15
-10
-5
0
5
10
15
20
25
30
20002003200620092012201520182021
House price inflation
(left axis)
Per capita household
spending (right axis)
%
%
Forecast
Source: Stats NZ, Westpac Economics.
Source: Stats NZ, Westpac Economics.
House prices and household spending
1 Year average growth rates.
Economics

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack

The New Zealand economy
150
Sources: Stats NZ, Westpac Economics.
Nationwide GDP and employment figures are for the year to December 2018, regional figure are for the
year to March 2018.
Regional GDP
Sources: Stats NZ, Westpac Economics.
7
7
3
3
7
13
5
36
5
11
3
Primary industries
Construction
Electricity / Gas / Water
Food Manufacturing
Manufacturing (excl. food)
Wholesale / Retail / Accommodation
Transport
Financial and professional services
Public administration
Social services (incl. health)
Other
Output 2018 - sector contribution to GDP (%)

NZ employment by sector 2018 (%)
NZ output and employment

6
9
9
19
4
19
6
19
8
Primary industries
Manufacturing
Transport
Financial / professional services / IT
Public administration
Social services (incl. health)
Other
Northland, $7bn
4% of population
Auckland, $108bn
35% of population
Waikato, $24bn
10% of population
Taranaki,
Whanganui/Manawatu, $19bn
7% of population
Wellington, $37bn
11% of population
Bay of Plenty, $16bn
6% of population
Gisborne/Hawke’s
Bay, $10bn
4% of population
Southland, $6bn
2% of population
Otago, $13bn
5% of population
Canterbury, $35bn
13% of population
West Coast, $2bn
1% of population
Tasman/Nelson, $5bn
2% of population
Marlborough, $3bn
1% of population
Total nominal GDP 2018: $293bn
Population 4.9 mil
Economics

0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
0
1
2
3
4
5
6
7
2007200920112013201520172019
%yr
%
Unemployment rate (left axis)Labour Cost Index (right axis)
New Zealand economic indicators
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
151
RBNZ has shifted to an easing bias

Inflation off its lows, still moderate
0
1
2
3
4
5
6
0
1
2
3
4
5
6
2007200920112013201520172019
%
%
CPI inflation
CPI excluding petrol
1
2
3
4
5
6
7
8
9
10
1
2
3
4
5
6
7
8
9
10
200120052009201320172021
%
%
90 day bank bill rate
2 year swap rate
5 year swap rate
Inflation (%)
Source: Stats NZ, Westpac Economics.
Source: RBNZ, Westpac Economics.
Forecast
Forecast
Interest rates (%)
Labour market has tightened

Export prices remain favourable
0
50
100
150
200
250
300
350
400
450
2006200820102012201420162018
Meat,skins & woolForestryDairy
Index
Source: ANZ, Westpac Economics.
NZ export commodity price index (world prices)
Unemployment rate and wage growth (%)

Source: Stats NZ, Westpac Economics.
Forecast
Economics

New Zealand housing market expected
to be dampened by policy changes
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
152
-15
-10
-5
0
5
10
15
20
-15
-10
-5
0
5
10
15
20
2008201020122014201620182020
Forecast
New Zealand house prices by region (index)
...and a period of subdued price growth is expected

Policy changes have softened housing demand...
Source: REINZ.
Sources: QVNZ, Westpac Economics.
New Zealand house prices (nationwide, %)
75
100
125
150
175
0
5
10
15
20
2000200220042006200820102012201420162018
Debt servicing (left axis)Household debt (right axis)
%
%
...further easing likely if property market slows further

New Zealand household debt statistics
(% of household disposable incomes)
Macroprudential policies have eased...

Investors’ share of new mortgage lending (%)
Source: RBNZ.
Source: RBNZ.
80
100
120
140
160
180
200
220
80
100
120
140
160
180
200
220
Jan-08Jan-10Jan-12Jan-14Jan-16Jan-18
NZ ex Auckland and Canterbury
Auckland
Canterbury
Index = 100 in 2008

Index = 100 in 2008
0
10
20
30
40
50
Jan-15Jul-15Jan-16Jul-16Jan-17Jul-17Jan-18Jul-18Jan-19
%
Investors below 70% LVRInvestors above 70% LVR
LVRs
tightened
LVRs eased
Economics

Appendix and Disclaimer

Appendix 1: Cash earnings adjustments
Appendix and Disclaimer
Cash earnings
adjustment
1H18
$m
2H18
$m
1H19
$m
Description
Reported net profit 4,198 3,897 3,173
Net profit attributable to owners of Westpac Banking Corporation
Amortisation of
intangible assets
17 - -
Identifiable intangible assets arising from business acquisitions are amortised over their useful lives, ranging between
four and twenty years. This amortisation (excluding capitalised software) is a cash earnings adjustment because it is a
non- cash flow item and does not affect cash distributions available to shareholders. The last of these intangible assets
were fully amortised in December 2017
Fair value (gain)/loss
on economic hedges
37 (163) 126
Fair value on economic hedges (which do not qualify for hedge accounting under AAS) comprise:
• The unrealised fair value (gain)/loss on foreign exchange hedges of future New Zealand earnings impacting non-
int
erest income is reversed in deriving cash earnings as they may create a material timing difference on reported
results but do not affect the Group’s cash earnings over the life of the hedge; and
• The unrealised fair value (gain)/loss on hedges of accrual accounted term funding transactions are reversed in
deri
ving cash earnings as they may create a material timing difference on reported results but do not affect the
Group’s cash earnings over the life of the hedge
Ineffective hedges 9 4 (5)
The unrealised (gain)/loss on ineffective hedges is reversed in deriving cash earnings because the gain or loss arising
from the fair value movement in these hedges reverses over time and does not affect the Group’s profits over time
Adjustments related
to Pendal Group
(formerly BTIM)
- 73 4
Consistent with prior periods’ treatment, this item has been treated as a cash earnings adjustment given its size and
that it does not reflect ongoing operations. The Group has indicated that it may sell the remaining 10% shareholding in
Pendal Group Limited at some future date. From September 2018, this adjustment relates to the mark to market of the
shares and separation costs related to the original sell down. Any future gain or loss on this shareholding will similarly
be excluded from the calculation of cash earnings
Treasury shares (10) 3 (2)
Under AAS, Westpac shares held by the Group in the managed funds and life businesses are deemed to be Treasury
shares and the results of holding these shares can not be recognised in the reported results. In deriving cash earnings,
these results are included to ensure there is no asymmetrical impact on the Group’s profits because the Treasury
shares support policyholder liabilities and equity derivative transactions which are re-valued in determining income
Cash earnings 4,251 3,814 3,296
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
154

Appendix 2: Sustainability
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 As at 31 March 2019, unless otherwise indicated. 2 Copyright ©2019 Sustainalytics. 3 The inclusion of WBC in any MSCI Index, and the use of MSCI logos, trademarks, service marks or index names herein, do not
constitute a sponsorship, endorsement or promotion of WBC by MSCI or any of its affiliates. The MSCI Indexes are the exclusive property of MSCI. MSCI and the MSCI index names and logos are trademarks or service
marks of MSCI or its affiliates.
Industry awards
1
155
Sustainability indexes
1
Inclusion and diversity recognition
1
Appendix and Disclaimer
Achieved highest ISS
QualityScore Environment and
Social score of 1, last confirmed
April 2019.
Member of the STOXX
2018/2019 ESG Leaders
Indices for the
sixth consecutive year
Reconfirmed as a constituent of
the Ethibel Sustainability Index
(ESI) Excellence Global, April
2019
Member of the MSCI
ESG Leaders index
3
Achieved highest “Leading”
rating for the 11
th
consecutive
year for disclosure of
sustainability risks in 2018
Leader class among
peer group
2,
, highest ranked
Australian Bank, April 2019

Awarded Bronze Class ranking
in RobecoSAM’s 2019
Sustainability Yearbook
A world leader and member of
DJSI World, DJSI Asia Pacific,
and DJSI Australia Indexes
Included in the 2019
Bloomberg Gender Equality Index
Received “B” rating in the 2018
CDP for our response to climate
change, announced January
2019
Member of the FTSE4Good
Index, of which Westpac has
been a member for over 10 years,
announced in August 2018
Employer of Choice by The
Workplace Gender Equality
Agency, held for 15 years
Received highest accolade of
Platinum status in the Australian
Workplace Equality Index Awards
in May 2018

Appendix 2: Sustainability
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
1 As at 31 March 2019, unless otherwise indicated.
Key commitments and partnerships
1
156
Appendix and Disclaimer
The Equator Principles
Founding Adopter,
First Australian Bank (2003)
Carbon Markets Institute
Corporate Member
We Mean Business Coalition
Signatory (2015)
Global Investor Coalition
Statement on Climate Change
Signatory (2014)
WeConnect International
(for women owned businesses) (2014)
Climate Action 100+
Signatory (2018)
The Montreal Carbon Pledge
Signatory (2014)
Social Traders
(for social enterprises)
Member of Connect (2016)
Financial Stability Board’s Task Force on Climate-
related Financial Disclosures
Align with and support
UN Environment Program Finance
Initiative
Founding Member (1991)
Commitment to United Nations Global Compact
Signatory (2002), Global Compact Network Australia
Founding Member (2009)

Principles for Responsible Investment
Signatory (2007)
Climate Bonds Initiative
Partner
Carbon Neutral Certification
Since 2012
Supply Nation
(for Indigenous owned businesses)
Founding member (2016)
Principles for Responsible Banking
Founding bank of the PRBs, and first to report
alignment with the draft Principles
UN Sustainable Development Goals
CEO Statement of Commitment (2015)
Paris Climate Agreement
Supporter (2015)
United Nations Tobacco-Free Finance pledge
Founding signatory (2018)
RE100, an initiative of The Climate Group in
partnership with CDP
Member (2019)

Appendix 3: Definitions – Divisions
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
157
Appendix and Disclaimer
Consumer
Bank
Consumer Bank (CB) is responsible for sales and service to consumer
customers in Australia under the Westpac, St.George, BankSA, Bank of
Melbourne and RAMS brands. Activities are conducted through a dedicated
team of specialist consumer relationship managers along with an extensive
network of branches, call centres and ATMs. Customers are also supported
by a range of internet and mobile banking solutions. CB also works in an
integrated way with Business Bank, BTFG and WIB in the sales and service
of certain financial services and products including in wealth and foreign
exchange. The revenue from these products is mostly retained by the
product originator
Business
Bank
Business Bank (BB) is responsible for sales and service to SME and
commercial business customers in Australia for facilities up to approximately
$150 million. The division operates under the Westpac, St.George, BankSA
and Bank of Melbourne brands. Customers are provided with a wide range of
banking and financial products and services to support their borrowing,
payments and transaction needs. In addition, specialist services are provided
for cash flow finance, trade finance, automotive and equipment finance, and
property finance. The division is also responsible for consumer customers
with auto finance loans. BB works in an integrated way with Consumer Bank,
BTFG and WIB in the sales and service of select financial services and
products including corporate superannuation, foreign exchange and interest
rate hedging. The revenue from these products is mostly retained by the
product originator
BTFG
BT Financial Group (Australia) (BTFG) is the Australian wealth management
and insurance arm of the Westpac Group providing a broad range of
associated services. BTFG’s funds management operations include the
manufacturing and distribution of investment, superannuation and retirement
products, wealth administration platforms, private wealth, margin lending and
equities broking. BTFG’s insurance business covers the manufacturing and
distribution of life, general and lenders mortgage insurance. The division also
uses third parties to manufacture certain general insurance products. In
managing risk across all insurance classes the division reinsures certain risks
using external providers. In addition to the BT brand, BTFG operates a range
of financial service brands along with the banking brands of Westpac,
St.George, Bank of Melbourne and BankSA for Private Wealth and Insurance
WIB
Westpac Institutional Bank (WIB) delivers a broad range of financial
products and services to commercial, corporate, institutional and
government customers with connections to Australia and New Zealand. WIB
operates through dedicated industry relationship and specialist product
teams, with expert knowledge in financing, transactional banking, and
financial and debt capital markets. Customers are supported throughout
Australia as well as via branches and subsidiaries located in New Zealand,
the US, UK and Asia. WIB is also responsible for Westpac Pacific currently
providing a range of banking services in Fiji and PNG. WIB works in an
integrated way with all the Group’s divisions in the provision of more
complex financial needs including across foreign exchange and fixed interest
solutions

Westpac NZ
Westpac New Zealand is responsible for sales and service of banking,
wealth and insurance products for consumers, business and institutional
customers in New Zealand. Westpac conducts its New Zealand banking
business through two banks in New Zealand: Westpac New Zealand
Limited, which is incorporated in New Zealand and Westpac Banking
Corporation (New Zealand Branch), which is incorporated in Australia.
Westpac New Zealand operates via an extensive network of branches and
ATMs across both the North and South Islands. Business and institutional
customers are also served through relationship and specialist product
teams. Banking products are provided under the Westpac brand while
insurance and wealth products are provided under Westpac Life and BT
brands, respectively. New Zealand also maintains its own infrastructure,
including technology, operations and treasury
Group
Businesses
or GBU
This segment provides centralised Group functions including Treasury,
Technology and Core Support (finance, human resources etc.). Costs are
partially allocated to other divisions in the Group, with costs attributed to
enterprise activity retained in Group Businesses. This segment also reflects
Group items including: earnings on capital not allocated to divisions,
earnings from non-core asset sales, earnings and costs associated with the
Group’s fintech investments and certain other head office items such as
centrally raised provisions

Appendix 3: Definitions – Credit quality
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
158
Appendix and Disclaimer
Stage 3 Lifetime
ECL –
non-performing
For financial assets that are non-performing a provision for lifetime
expected losses is recognised. Interest revenue is calculated on the
carrying amount net of the provision for ECL rather than the gross carrying
amount
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 day
s 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 ass
ets: 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
est
ate 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
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.
Provision for
expected credit
losses (ECL)
Expected credit losses (ECL) are a probability-weighted estimate of the cash
shortfalls expected to result from defaults over the relevant timeframe. They
are determined by evaluating a range of possible outcomes and taking into
account the time value of money, past events, current conditions and future
economic conditions
Collectively
assessed
provisions
(CAPs)
Loans not found to be individually impaired or significant will be collectively
assessed in pools of similar assets with similar risk characteristics
Individually
assessed
provisions
(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
Stage 1: 12
months ECL –
performing
For financial assets where there has been no significant increase in credit
risk since origination a provision for 12 months expected credit losses is
recognised. Interest revenue is calculated on the gross carrying amount of
the financial asset
Stage 2:
Lifetime ECL –
performing
For financial assets where there has been a significant increase in credit risk
since origination but where the asset is still performing a provision for
lifetime expected losses is recognised. Interest revenue is calculated on the
gross carrying amount of the financial asset

Appendix 3:
Definitions – Earnings, capital and liquidity
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
159
Appendix and Disclaimer
Earnings Drivers
Average interest-
earning assets
(AIEA)
The average balance of assets held by the Group that generate interest
income. Where possible, daily balances are used to calculate the average
balance for the period
Cash earnings per
ordinary share
Cash earnings divided by the weighted average ordinary shares (cash
earnings basis)
Core earnings Net operating income less operating expenses
Full-time
equivalent
employees (FTE)
A calculation based on the number of hours worked by full and part-time
employees as part of their normal duties. The full -time equivalent of one
FTE is 76 hours paid work per fortnight
Net interest
margin (NIM)
Calculated by dividing net interest income by average interest-earning
assets
Net tangible assets
per ordinary share
Net tangible assets (total equity less goodwill and other intangible assets
less minority interests) divided by the number of ordinary shares on issue
(reported)
Weighted average
ordinary shares
(cash earnings)
Weighted average number of fully paid ordinary shares listed on the ASX for
the relevant period
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
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%,
effective 1 January 2015. 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%

Appendix 3: Definitions – Other
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
160
Appendix and Disclaimer
Australian
customers with
wealth products
metrics provider
Data based on DBM Consultants, Respondents aged 18+ and 12 month
rolling. Wealth penetration is defined as the proportion of Australians who
have a Deposit Product, Lending Product or Credit/Debit Card with a
Banking Group and also have Managed Funds, Superannuation or
Insurance with the same Banking Group. Note: Westpac and St.George use
Managed Funds, Superannuation or Insurance with Westpac Group.

Westpac includes Westpac and Challenge Bank. St.George includes
St.George, BankSA, Bank of Melbourne, RAMS and Dragondirect. Westpac
Group includes Westpac, Challenge Bank, St.George, BankSA, Bank of
Melbourne, RAMS, Dragondirect, Advance Asset Management, Asgard,
Bankers Trust, BT, Rothschild and Sealcorp. Peers includes: ANZ Group,
CBA Group and NAB Group.
Branch
transactions
Branch transactions are typically withdrawals, deposits, transfers and
payments
Customer
satisfaction or
CSat
The Customer Satisfaction score is an average of customer satisfaction
ratings of the customer’s main financial institution for consumer or business
banking on a scale of 0 to 10 (0 means ‘extremely dissatisfied’ and 10
means ‘extremely satisfied)
CSat – overall
business
Source: DBM Consultants Business Financial Services Monitor, March 2017
– March 2019, 6MMA. MFI customers, all businesses
CSat – overall
consumer
Source: DBM Consultants Consumer Atlas, March 2017 – March 2019,
6MMA. MFI customers
CSat – SME
Source: DBM Consultants Business Financial Services Monitor, March 2017
– March 2019, 6MMA. MFI customers, SME businesses. SME businesses
are those organisations with annual turnover under $5 million (excluding
Agribusinesses)
CSat
(Westpac NZ)
3 month rolling Retail Market Monitor data (survey conducted by Camorra
Research). Main bank customers are asked to rate the overall level of
service they receive from their main bank on a scale of 1 (poor) to 5
(excellent). Results represent the % of customers who rate the service as
either 4 (very good) or 5 (excellent), excluding “don’t know”
Digitally active
Australian consumer and business customers who have had an
authenticated session (including Quickzone) on Westpac Group digital
banking platforms in the prior 90 days
Digital sales
Sales refers to digital sales of consumer core products only. Sales with a
funded deposit or activation constitute a quality sale. Includes new
American Express credit card sales
Digital
transactions
Digital transactions are typically payments and transfers
MFI share

MFI share results are based on the number of customers who have a
Main Financial Institution (MFI) relationship with an institution, as a
proportion of the number of customers that have a MFI relationship with
any institution
Consumer MFI
share
Source: DBM Consultants Consumer Atlas, 6 months to March 2019, MFI
customers
SME MFI share
Source: DBM Consultants Business Financial Services Monitor, 12 months
to March 2019, MFI customers, SME businesses. SME businesses are
those organisations with annual turnover under $5 million (excluding
Agribusinesses)

Appendix 3: Definitions – Other
Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
161
Appendix and Disclaimer
NPS – overall
consumer
Source: DBM Consultants Consumer Atlas, March 2017 – March 2019,
6MMA. MFI customers
NPS – overall
business
Source: DBM Consultants Business Financial Services Monitor, March
2017 – March 2019, 6MMA. MFI customers, all businesses.
SGB Brand

SGB Brands (Consumer):
St.George Bank, Bank of Melbourne, BankSA, RAMS, Dragondirect

SGB Brands (Business):
St.George Bank, Bank of Melbourne and BankSA
Westpac Group
rank
The ranking refers to Westpac Group’s position relative to the other three
major Australian banking groups (ANZ Group, CBA Group and NAB Group)
Women in
Leadership
Women in Leadership refers to the proportion of women (permanent and
maximum term) in leadership roles across the Group. It includes the CEO,
Group Executive, General Managers, senior leaders with significant
influence on business outcomes,(direct reports to General Managers and
their direct reports), large (3+) team people leaders three levels below
general manager, and Bank and Assistant Bank Managers
Commercial MFI
share
Source: DBM Consultants Business Financial Services Monitor, 12 months
to March 2019, MFI customers, Commercial businesses. Commercial
businesses are those organisations with annual turnover $5 million to $100
million (excluding Agribusinesses)
Net Promoter
Score or NPS
Net Promoter Score measures the net likelihood of recommendation to
others of the customer’s main financial institution. Net Promoter Score
SM
is
a trademark of Bain & Co Inc., Satmetrix Systems, Inc., and Mr Frederick
Reichheld. Using a scale of 0 to 10 (0 means ‘extremely unlikely’ and 10
means ‘extremely likely’), the 0-6 raters (detractors) are deducted from the 9-
10 raters (promoters)
NPS Agri
(Westpac NZ)
6 month rolling Agri Market Monitor data (survey conducted by Key
Research). Respondents are asked about likelihood to recommend their
main business bank to business colleagues, friends or family on a scale of 1
(extremely unlikely) to 10 (extremely likely). Net Promoter Score is
represents % of Promoters (recommend score of 9 or 10) minus % of
Detractors (recommend score of 1 to 6)
NPS Business
(Westpac NZ)
Source: 6 month rolling Business Finance Monitor data (survey conducted
by Kantar TNS among businesses with an annual turnover of $5 to $150
million). Respondents are asked about likelihood to recommend their main
business bank to business colleagues and associates on a scale of 1
(extremely unlikely) to 10 (extremely likely). Net Promoter Score is
represents % of Promoters (recommend score of 9 or 10) minus % of
Detractors (recommend score of 1 to 6)
NPS Consumer
(Westpac NZ)
Source: 3 month rolling Retail Market Monitor data (survey conducted by
Camorra Research). Respondents are asked about likelihood to recommend
their main bank to family and friends on a scale of 1 (extremely unlikely) to
10 (extremely likely). Net Promoter Score is represents % of Promoters
(recommend score of 9 or 10) minus % of Detractors (recommend score of 1
to 6)

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
Investor Relations Team
162
Contact us

Investor Relations Team
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
Louise Coughlan

Director
+61 2 8254 0549
lcoughlan@westpac.com.au
Jacqueline Boddy

Director (Debt Investor Relations)
+ 61 2 8253 3133
jboddy@westpac.com.au
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 (Wes tpac) 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 2019
Interim Financial Results (incorporating the requirements of Appendix 4D) for the six months ended 31 March 2019 available at www.westpac.com.au for details of the basis of
preparation of cash earnings. Refer to page 41 for an explanation of cash earnings and Appendix 1 page 154 for a reconciliation of reported net profit to cash.
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, forecast ed 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 2019 Interim Financial Results (incorporating the requirements of Appendix 4D) for the six months ended 31 March 2019 (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-look ing statements contained in this presentation,
whether as a result of new information, future events or otherwise, after the date of this presentation.

Westpac Group 2019 Interim Results Presentation & Investor Discussion Pack
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Westpac 1H19 Provisions for Authorised Reps Media Release – Westpac 2019 Interim Financial Results

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