US Form 6-K filing – 2019 Interim Financial Results

8 May 2019


Market Announcements Office
ASX Limited
20 Bridge Street
SYDNEY NSW 2000


Dear Sir / Madam
US FORM 6-K FILING (INTERIM FINANCIAL RESULTS ANNOUNCEMENT FOR
THE SIX MONTHS ENDED 31 MARCH 2019, PREPARED FOR DISTRIBUTION IN
THE UNITED STATES)
Westpac Banking Corporation (Westpac) has filed with the US Securities and
Exchange Commission a Form 6-K, which attaches Westpac’s Interim Financial
Results Announcement for the six months ended 31 March 2019, prepared specifically
for distribution in the United States (US Interim Financial Results Announcement). This
filing has been prepared to meet US securities law requirements and is necessary to
update Westpac’s US debt issuance programs.
As the US Interim Financial Results Announcement has been prepared to meet US
requirements, its presentation differs in some respects from Westpac’s 2019 Interim
Financial Results, incorporating the requirements of Appendix 4D (lodged with the ASX
on 6 May 2019). In particular, the 2019 Interim Financial Results, incorporating the
requirements of Appendix 4D predominantly focuses on cash earnings while the US
Interim Financial Results Announcement is focused on Westpac’s consolidated
statutory results.
A copy of the Form 6-K is attached for release to the market.

Yours sincerely,



Tim Hartin
Company Secretary

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
May 7, 2019
Commission File Number 1-10167
WESTPAC BANKING CORPORATION
(Translation of registrant’s name into English)
275 KENT STREET, SYDNEY, NEW SOUTH WALES 2000, AUSTRALIA
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
Form 20-F ____x_____ Form 40-F __________
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(1): __________
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(7): ___________

Incorporation by Reference
The information contained in Exhibit 1 to this Report on Form 6-K (excluding the “Auditor’s
Independence Declaration” on page 97 and the “Independent auditor’s review report to the members of Westpac
Banking Corporation” on page 148 of such Exhibit) and Exhibit 101 to this Report on Form 6-K shall be
incorporated by reference in the prospectuses relating to the Registrant’s securities contained in the Registrant’s
Registration Statements on Form F-3 (File Nos. 333-228295, 333-228294 and 333-220373), as such
prospectuses may be amended or supplemented from time to time.
Index to Exhibits
Exhibit
No.Description
12019 Interim Financial Results –prepared for distribution in the United States of America
101.INSXBRL Instance Document
101.SCHXBRL Taxonomy Extension Schema Document
101.CALXBRL Taxonomy Extension Calculation Linkbase Document
101.DEFXBRL Taxonomy Extension Definition Linkbase Document
101.LABXBRL Taxonomy Extension Labels Linkbase Document
101.PREXBRL Taxonomy Extension Presentation Linkbase Document

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
WESTPAC BANKING CORPORATION
(Registrant)
Date: May 7, 2019By: /s/ Yvette Adiguzel
Yvette Adiguzel

Exhibit 1
2019
Interim
Financial
Results
THE INTERIM FINANCIAL RESULTS ANNOUNCEMENT HAS BEEN
PREPARED FOR DISTRIBUTION IN THE UNITED STATES OF AMERICA

This Interim Financial Results Announcement has been prepared for distribution in the United States.
Our interim period refers to the six months ended 31 March 2019 (First Half 2019). Throughout this Interim Financial Results
Announcement, we also refer to the six months ended 31 March 2018 (First Half 2018) and the six months ended 30
September 2018 (Second Half 2018).
The selected financial information for First Half 2019, First Half 2018 and Second Half 2018 contained in this Interim Financial
Results Announcement is based on the financial statements contained in the unaudited consolidated Interim Financial Report fo
r
Westpac Banking Corporation (Westpac) and its controlled entities (Group) for the six months ended 31 March 2019. The
Interim Financial Report has been prepared and presented in accordance with Australian Accounting Standards (AAS) as they
relate to interim financial reports. The Interim Financial Report also complies with International Financial Reporting Standards as
issued by the International Accounting Standards Board (IASB) as they relate to interim financial reports.
All dollar values in this Interim Financial Results Announcement are in Australian dollars unless otherwise noted. References to
‘dollars’, ‘dollar amounts’, ‘$’, ‘AUD’ or ‘A$’ are to Australian dollars, references to ‘US$’, ‘USD’ or ‘US dollars’ are to United
States dollars and references to ‘NZ$’, ‘NZD’ or ‘NZ dollars’ are to New Zealand dollars. Solely for the convenience of the
reader, certain Australian dollar amounts have been translated into US dollars at a specified rate. These translations should not
be construed as representations that the Australian dollar amounts actually represent such US dollar amounts or have been o
r
could be converted into US dollars at the rate indicated. Unless otherwise stated, the translation of Australian dollar amounts
into US dollar amounts has been made at the rate of A$1 = US$0.7104, the noon buying rate in New York City for cable
transfers in Australian dollars as certified for customs purposes by the Federal Reserve Bank of New York (the noon buying
rate) on 30 March 2019. Refer to Section 5.5 for information regarding the rates of exchange between the Australian dollar and
the US dollar applied by the Group as part of its operating activities for First Half 2019, Second Half 2018 and First Half 2018.
In addition to discussing the AAS financial information in this Interim Financial Results Announcement, we also discuss the
following non-AAS financial information:
Cash earnings policy
In assessing financial performance, including divisional results, Westpac Group uses a measure of performance referred to as
‘cash earnings’. Cash earnings is viewed as a measure of the level of profit that is generated by ongoing operations and is
therefore considered in assessing distributions, including dividends. Cash earnings is neither a measure of cash flow nor net
profit determined on a cash accounting basis, as it includes both cash and non-cash adjustments to statutory net profit.
Management believes this allows the Group to more effectively assess performance for the current period against prior periods
and to compare performance across business divisions and across peer companies.
To determine cash earnings, three categories of adjustments are made to reported results:
x Material items that key decision makers at the Westpac Group believe do not reflect the Group’s operating performance;
x Items that are not considered when dividends are recommended, such as the amortisation of intangibles, impact of Treasury
shares and economic hedging impacts; and
x Accounting reclassifications between individual line items that do not impact reported results.
Outlined in Section 6.1 are the cash earnings adjustments to the reported result.
Average Ordinary Equity
Average ordinary equity is calculated as the daily average of total equity less average non-controlling interests. Management
believes this measure of average ordinary equity is useful in the calculation of return on equity as it removes the impact of equity
attributable to non-controlling interests.
Other companies may use different methodologies to calculate average ordinary equity or similar non-AAS financial measures.
2019 Interim financial results
Introduction
ii | Westpac Group 2019 Interim Financial Results Announcement

Disclosure regarding forward-looking statements
This Interim Financial Results Announcement (Results Announcement) 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 Results Announcement and include statements regarding Westpac’s intent, belief or current
expectations with respect to its business and operations, market conditions, results of operations and financial condition,
including, without limitation, future loan loss provisions and financial support to certain borrowers. Words such as ‘will’, ‘may’,
‘expect’, ‘intend’, ‘seek’, ‘would’, ‘should’, ‘could’, ‘continue’, ‘plan’, ‘estimate’, ‘anticipate’, ‘believe’, ‘probability’, ‘risk’, ‘aim’ o
r
other similar words are used to identify forward-looking statements. These forward-looking statements reflect Westpac’s current
views with respect to future events and are subject to change, certain risks, uncertainties and assumptions which are, in many
instances, beyond Westpac’s control, and have been made based upon management’s expectations and beliefs concerning
future developments and their potential effect upon Westpac. There can be no assurance that future developments will be in
accordance with Westpac’s expectations or that the effect of future developments on Westpac will be those anticipated. Actual
results could differ materially from those expected, depending on the outcome of various factors, including, but not limited to:
x the effect of, and changes in, laws, regulations, taxation or accounting standards or practices and government policy,
particularly changes to liquidity, leverage and capital requirements;
x regulatory investigations and other actions, inquiries, litigation, fines, penalties, restrictions or other regulator imposed
conditions, including as a result of our actual or alleged failure to comply with laws (such as financial crime laws),
regulations or regulatory policy;
x internal and external events which may adversely impact Westpac’s reputation;
x information security breaches, including cyberattacks;
x reliability and security of Westpac’s technology and risks associated with changes to technology systems;
x the stability of Australian and international financial systems and disruptions to financial markets and any losses or business
impacts Westpac or its customers or counterparties may experience as a result;
x market volatility, including uncertain conditions in funding, equity and asset markets;
x an increase in defaults in credit exposures because of a deterioration in economic conditions;
x adverse asset, credit or capital market conditions;
x the conduct, behaviour or practices of Westpac or its staff;
x changes to Westpac’s credit ratings or the methodology used by credit rating agencies;
x levels of inflation, interest rates, exchange rates and market and monetary fluctuations;
x market liquidity and investor confidence;
x changes in economic conditions, consumer spending, saving and borrowing habits in Australia, New Zealand and othe
r
countries in which Westpac or its customers or counterparties conduct their operations and Westpac’s ability to maintain or
to increase market share, margins and fees, and control expenses;
x the effects of competition, including from established providers of financial services and from non-financial services entities,
in the geographic and business areas in which Westpac conducts its operations;
x the timely development and acceptance of new products and services and the perceived overall value of these products and
services by customers;
x the effectiveness of Westpac’s risk management policies, including internal processes, systems and employees;
x the incidence or severity of Westpac-insured events;
x the occurrence of environmental change (including as a result of climate change) or external events in countries in which
Westpac or its customers or counterparties conduct their operations;
x changes to the value of Westpac’s intangible assets;
x changes in political, social or economic conditions in any of the major markets in which Westpac or its customers o
r
counterparties operate;
x the success of strategic decisions involving diversification or innovation, in addition to business expansion activity, business
acquisitions and the integration of businesses; and
x various other factors beyond Westpac’s control.
2019 Interim financial results
Introduction
Westpac Group 2019 Interim Financial Results Announcement | iii

The above list is not exhaustive. For certain other factors that may impact on forward-looking statements made by Westpac,
refer to ‘Risk factors’ in the Directors’ report in this Results Announcement. When relying on forward-looking statements to make
decisions with respect to Westpac, investors and others should carefully consider the foregoing factors and other uncertainties
and events.
Westpac is under no obligation to update any forward-looking statements contained in this Results Announcement, whether as a
result of new information, future events or otherwise, after the date of this Interim Financial Results Announcement.
References to websites
Information contained in or accessible through the websites mentioned in this Results Announcement does not form part of this
Results Announcement unless we specifically state that it is incorporated by reference and forms part of this Results
Announcement. All references in this Results Announcement to websites are inactive textual references and are for information
only.
2019 Interim financial results
Introduction
iv | Westpac Group 2019 Interim Financial Results Announcement

Index
In this Interim Financial Results Announcement (Results Announcement) references to ‘Westpac’, ‘WBC’, ‘Westpac Group’, ‘the Group’, ‘we’, ‘us’ and
‘our’ are to Westpac Banking Corporation and its controlled entities, unless it clearly means just Westpac Banking Corporation.
All references to $ in this Results Announcement are to Australian dollars unless otherwise stated.
Financial calendar
2019 Interim financial results
Table of contents
1.0Group results2
1.1Reported results2
1.2Key financial information4
1.3Market share and system multiple metrics6
2.0Review of Group operations7
2.1Performance overview7
2.2Review of reported results15
2.3Credit quality31
2.4Balance sheet and funding34
2.5Capital and dividends39
2.6Sustainability performance45
3.0Divisional results50
3.1Consumer Bank52
3.2Business Bank55
3.3BT Financial Group (Australia)57
3.4Westpac Institutional Bank62
3.5Westpac New Zealand65
3.6Group Businesses
68
4.02019 Interim Financial Report
4.1Directors’ report71
4.2Consolidated income statement99
4.3Consolidated statement of comprehensive income100
4.4Consolidated balance sheet101
4.5Consolidated statement of changes in equity102
4.6Consolidated cash flow statement103
4.7Notes to the consolidated financial statements104
4.8Statutory statements147
5.0Other information150
5.1Credit ratings150
5.2Dividend reinvestment plan150
5.3Changes in control of Group entities150
5.4Financial calendar and Share Registry details151
5.5Exchange rates154
5.6Group earnings reconciliation155
6.0Cash earnings supplementary information158
6.1Cash earnings adjustments158
7.0Glossary160
Interim Results Announcement6 May 2019
Ex-dividend date for interim dividend16 May 2019
Record date for interim dividend (Sydney)17 May 2019
Interim dividend payable24 June 2019
Final Results Announcement (scheduled)4 November 2019
Westpac Group 2019 Interim Financial Results Announcement | 1

1.0Group results
1.1Reported results
Reported net profit attributable to owners of Westpac Banking Corporation is prepared in accordance with the requirements o
f
Australian Accounting Standards (AAS) and regulations applicable to Australian Authorised Deposit-taking Institutions (ADIs).
During First Half 2019, Westpac adopted AASB 9 Financial Instruments (AASB 9) and AASB 15 Revenue from Contracts with
Customers (AASB 15). As the Group chose to apply the standards prospectively, comparatives have not been restated.
Adopting the new standards has resulted in measurement and classification differences between First Half 2019 and prior
periods. The significant differences are:
x the measurement of credit loss provision and impairment charges are now on an expected loss basis;
x line fees (mainly Business Bank) are now recognised in net interest income, previously recognised in net fee income;
x interest on performing loans is now measured on the gross loan value. Previously, interest was recognised on the loan
balance net of impairment provision; and
x certain items previously netted are now presented on a gross basis, including payments from credit card schemes which
were previously netted against related expenditure.
The changes have little impact on net profit but do impact individual line items. As these changes have only been applied from 1
October 2018, it is difficult to compare line items across periods. These changes are discussed further in Note 1 of the 2019
Interim Financial Report.
2019 Interim financial results
Group results
Half YearHalf YearHalf YearHalf Year% Mov’t% Mov’t
March 19March 19Sept 18March 18Mar 19 -Mar 19 -
$mUS$A$A$A$Sept 18Mar 18
Net interest income
5,870 8,263 8,227 8,278 --
Net fee income
587 826 1,146 1,278 (28)(35)
Net wealth management and insurance income
232 326 1,110 951 (71)(66)
Trading income
310 437 458 487 (5)(10)
Other income
90 127 (17)89 large43
Net operating income before operating expenses
and impairment charges
7,089 9,979 10,924 11,083 (9)(10)
Operating expenses
(3,616)(5,091)(4,911)(4,655)4 9
Net profit before impairment charges and
income tax expense
3,473 4,888 6,013 6,428 (19)(24)
Impairment charges
(237)(333)
(317)(393)
5 (15)
Profit before income tax
3,236 4,555 5,696 6,035 (20)(25)
Income tax expense
(980)(1,379)(1,797)(1,835)(23)(25)
Net profit for the period
2,256 3,176 3,899 4,200 (19)(24)
Net profit attributable to non-controlling interests
(2)(3)(2)(2)50 50
Net profit attributable to owners of Westpac
Banking Corporation
2,254 3,173 3,897 4,198 (19)(24)
Effective tax rate
30.3%30.3%31.5%30.4%(128bps)(14bps)
The Group has adopted AASB 9 Financial Instruments and AASB 15 Revenue from Contracts with Customers from 1 October 2018. Statutory
comparatives have not been restated. Refer to Note 1 in Section 4 for further detail. In addition, during First Half 2019, the Group has made a number
of presentational changes to the Balance Sheet and Income Statement. Both statutory and cash earnings comparatives have been restated. Refer to
Note 1 in Section 4 for further detail
.
Percentage movement represents an increase / (decrease) to the relevant comparative period.
2 | Westpac Group 2019 Interim Financial Results Announcement
1
22
1
2

Net profit attributable to owners of Westpac Banking Corporation for First Half 2019 was $3,173 million, a decrease of $1,025
million or 24% compared to First Half 2018. First Half 2019 included significant provisions for estimated customer refunds,
payments and associated costs, and costs associated with the restructuring of the Wealth business, which together reduced net
profit after tax by $753 million. These items are discussed further in Section 2.1 and in Note 14 of the 2019 Interim Financial
Report.
Net interest income decreased $15 million compared to First Half 2018. Average interest-earning assets grew 4% mostly from
total loan growth but this was more than offset by a net interest margin decrease of 7 basis points to 2.09%. The movement in
net interest income included:
x $212 million of provisions for estimated customer refunds and payments;
x a net reduction from economic hedges of $123 million; and
x lower revenue from our Treasury division outweighed the growth in other divisions; offset by
x an increase of $330 million due to the reclassification of line fees from net fee income to interest income.
Net interest income, loans, deposits and other borrowings and net interest margin are discussed further in Sections 2.2.1 to
2.2.4.
Net fee income decreased $452 million or 35% compared to First Half 2018 primarily due to the reclassification of line fees to net
interest income and a $165 million impact of provisions for estimated customer refunds and payments.
Net wealth management and insurance income decreased $625 million or 66% compared to First Half 2018 primarily due to
additional provisions for estimated customer refunds and payments of $435 million, higher general insurance claims and lowe
r
wealth management income due to changes in pricing structure, the cessation of grandfathered commissions and the exit of
Hastings in Second Half 2018.
Trading income decreased $50 million or 10% due to lower income in the markets business.
Other income increased $38 million or 43% mainly due to the profit on sale of an associate.
Net fee income, net wealth management and insurance income, trading income and other income are discussed further in
Section 2.2.5.
Operating expenses increased $436 million or 9% compared to First Half 2018. The rise was mainly due to:
x $84 million of provisions for estimated costs associated with implementing customer refunds and payments;
x $190 million of provisions for the restructuring of the Wealth business; and
x $162 million increase in other costs including $97 million of higher costs associated with the Group’s investment program,
largely across banking and wealth platforms.
Operating expenses are discussed further in Section 2.2.8.
Impairment charges were $60 million or 15% lower compared to First Half 2018. Asset quality remained sound, with stressed
exposures as a percentage of total committed exposures at 1.10%, up 1 basis point compared to First Half 2018. Impairment
charges are discussed further in Section 2.2.9.
The effective tax rate of 30.3% was lower than the First Half 2018 effective tax rate of 30.4%. Income tax expense is discussed
further in Section 2.2.10.
2019 Interim financial results
Group results
Westpac Group 2019 Interim Financial Results Announcement | 3

1.2Key financial information
2019 Interim financial results
Group results
Half YearHalf YearHalf YearHalf Year% Mov’t% Mov’t
March 19March 19Sept 18March 18Mar 19 -Mar 19 -
US$A$A$A$Sept 18Mar 18
Shareholder value
Earnings per ordinary share (cents)
65.6 92.3 113.8 123.7 (19)(25)
Weighted average ordinary shares (millions)
3,436 3,436 3,421 3,392 -1
Fully franked dividends per ordinary share (cents)
67 94 94 94 --
Return on average ordinary equity
10.05%10.05%12.34%13.79%(229bps)(374bps)
Average ordinary equity ($m)
45,002 63,348 62,978 61,051 1 4
Average total equity ($m)
45,039 63,400 63,026 61,065 1 4
Net tangible asset per ordinary share ($)
10.74 15.12 15.39 15.00 (2)1
Business performance
Interest spread
1.89%1.89%1.92%2.00%(3bps)(11bps)
Benefit of net non-interest bearing assets,
liabilities and equity
0.20%0.20%0.18%0.16%2bps4bps
Net interest margin
2.09%2.09%2.10%2.16%(1bps)(7bps)
Average interest-earning assets ($m)
564,526 794,660 782,834 767,011 2 4
Expense to income ratio
51.01%51.02%44.96%42.00%largelarge
Capital, funding and liquidity
Common equity Tier 1 capital ratio
- APRA Basel III
10.64%10.64%10.63%10.50%1bps14bps
- Internationally comparable
16.17%16.17%16.14%16.13%3bps4bps
Credit risk weighted assets (credit RWA) ($m)
257,706 362,762 362,749 361,391 --
Total risk weighted assets (RWA) ($m)
298,239 419,819 425,384 415,744 (1)1
Liquidity coverage ratio (LCR)
138%138%133%134%large351bps
Net stable funding ratio (NSFR)
113%113%114%112%(54bps)81bps
Asset quality
Gross impaired exposures to gross loans
0.24%0.20%0.22%4bps2bps
Gross impaired exposures to equity and
total provisions
2.57%2.09%2.33%48bps24bps
Gross impaired exposures provisions to
gross impaired exposures
45.74%46.12%45.54%(38bps)20bps
Total committed exposures (TCE) ($m)
1,046,776 1,038,006 1,023,017 1 2
Total stressed exposures as a % of TCE
1.10%1.08%1.09%2bps1bps
Total loan provisions to gross loans
56bps43bps45bps13bps11bps
Mortgages 90+ day delinquencies
0.75%0.67%0.65%8bps10bps
Other consumer loans 90+ day delinquencies
1.80%1.64%1.64%16bps16bps
Collectively assessed provisions to credit RWA
98bps73bps75bps25bps23bps
Balance sheet ($m)
Loans
507,437 714,297 709,690 701,393 1 2
Total assets
633,010 891,062 879,592 871,855 1 2
Deposits and other borrowings
394,277 555,007 559,285 547,736 (1)1
Total liabilities
587,591 827,127 815,019 809,190 1 2
Total equity
45,419 63,935 64,573 62,665 (1)2
Wealth Management
Average Group funds ($bn)
147.3 207.3 217.3 217.3 (5)(5)
Life insurance in-force premiums (Australia) ($m)
894 1,259 1,277 1,276 (1)(1)
General insurance gross written premiums
(Australia) ($m)
184 259 252 251 3 3
4 | Westpac Group 2019 Interim Financial Results Announcement
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2
3
4
5
6
7
8
9
10
11
12
13
14
15

2019 Interim financial results
Group results
1
The Group has adopted AASB 9 Financial Instruments and AASB 15 Revenue from Contracts with Customers from 1 October 2018. Statutory
comparatives have not been restated. Refer to Note 1 in Section 4 for further detail. In addition, during First Half 2019, the Group has made a number
of presentational changes to the Balance Sheet and Income Statement. Both statutory and cash earnings comparatives have been restated. Refer to
Note 1 in Section 4 for further details
2
Based on the weighted average number of fully paid ordinary shares outstanding for the relevant six month period. Earnings are calculated as net
profit attributable to owners of WBC.
3
Weighted average number of fully paid ordinary shares listed on the ASX for the relevant period less Westpac shares held by the Group (“Treasury
shares
”).
4
Calculated as net profit attributable to owners of WBC divided by average ordinary equity (annualised).
5
Calculated as average total equity less average non-controlling interests.
6
Average total equity is the average balance of shareholders’equity, including non-controlling interests.
7
Total equity attributable to owners of WBC after deducting intangible assets divided by the number of ordinary shares outstanding, less Treasury
shares held.
8
Calculated as the difference between the average yield on all interest earning assets and the average rate paid on all interest bearing liabilities.
9
Calculated as the difference between net interest margin and interest spread, and represents benefits derived from holdings of the net non-interest
bearing component of the balance sheet (including equity).
10
Calculated by dividing net interest income by average interest earning assets (annualised).
11
Calculated as Group operating expenses excluding impairment charges divided by Group net operating income before operating expenses and
impairment charges.
12
Refer to Glossary for definition.
13
Impairment provisions relating to impaired loans include individually assessed provisions plus the proportion of the collectively assessed provisions
that relate to impaired exposures
.
14
Spot balances.
15
Averages are based on a six month period.
Westpac Group 2019 Interim Financial Results Announcement|5

1.3Market share and system multiple metrics
1.3.1 Market share
2019 Interim financial results
Group results
As atAs atAs at
31 March30 Sept31 March
201920182018
Australia
Banking system (APRA)
Housing credit
24%24%25%
Cards
23%23%23%
Household deposits
23%23%23%
Business deposits
20%20%20%
Financial system (RBA)
Housing credit
23%23%23%
Business credit
18%19%19%
Retail deposits
21%22%21%
New Zealand (RBNZ)
Consumer lending
18%19%19%
Deposits
19%18%19%
Business lending
17%16%16%
Australian Wealth Management
Platforms (includes Wrap and Corporate Super)
18%19%18%
Retail (excludes Cash)
17%18%18%
Corporate Super
13%13%13%
1.3.2 System multiples
Half YearHalf YearHalf Year
March 19Sept 18March 18
Australia
Banking system (APRA)
Housing credit
0.50.91.0
Cards
n/an/an/a
Household deposits
0.11.10.8
Business deposits
0.1n/a0.9
Financial system (RBA)
Housing credit
0.50.80.9
Business credit
n/a0.60.9
Retail deposits
n/a1.30.6
New Zealand (RBNZ)
Consumer lending
0.40.60.7
Deposits
1.40.11.2
Source: Australian Prudential Regulation Authority (APRA).
Includes securitised loans.
Source: Reserve Bank of Australia (RBA).
Retail deposits as measured by the RBA, financial system includes financial corporations’ deposits.
New Zealand comprises New Zealand banking operations.
Source: Reserve Bank of New Zealand (RBNZ).
Market Share Funds under Management / Funds under Administration based on published market share statistics from Strategic Insight as at 31
December 2018 (for First Half 2019), as at 30 June 2018 (for Second Half 2018) and as at 31 December 2017 (for First Half 2018) and represents the
BT Wealth business market share reported at these times.
n/a indicates that s
ystem growth or Westpac growth was negative.
6 | Westpac Group 2019 Interim Financial Results Announcement
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3
2
4
5,
6
7
1
2
8
8
3
2
8
4,
8
5,6
1
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4
5
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2.0Review of Group operations
Section 2 ‘Review of Group operations’ focuses on our Group results and key drivers for movements, with reference to ou
r
significant divisions. For more commentary at the divisional level, refer to Section 3 ‘Divisional results’.
2.1Performance overview
Overview
First Half 2019 has been another challenging period for financial services companies, including Westpac. In particular, the Royal
Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (Royal Commission), brought to
light confronting stories and examples of poor behaviour affecting customers. This in turn has eroded public sentiment and trust
in the financial services industry. Across the industry, firms such as Westpac are now working to respond to the findings of the
Royal Commission’s final report (released 1 February 2019), as well as to remediate customer issues. These efforts will
strengthen the focus on leadership, governance and culture, and create better outcomes for customers and shareholders.
Westpac’s response to the Royal Commission is summarised later in this overview.
At the same time, the economic environment has softened over the last six months, with lower economic growth, subdued
inflation and lower business and consumer sentiment. For financial services, this has contributed to more cautious demand fo
r
lending, a decline in deposit growth, and lower house prices. Although growth has slowed, competition has remained intense
across the sector including from domestic and international banks and from non-bank operators.
With this backdrop, the reported net profit attributable to owners of WBC was $3,173 million in First Half 2019, a reduction o
f
$724 million (or 19%) compared to Second Half 2018 and down $1,025 million (or 24%) from First Half 2018. The Group’s
performance in First Half 2019 was impacted by two notable items: provisions for estimated customer refunds and payments
(and associated costs) of $617 million (after tax); and provisions for costs associated with the reset of Westpac’s wealth strategy
announced on 19 March 2019 ($136 million after tax). In First Half 2019, the majority of these items were recorded in BT
Financial Group (BTFG) and the Business Bank. These notable items are explained in more detail later in this overview. Fo
r
more information see Note 14 of the 2019 Interim Financial Report.
Excluding movements in notable items, net profit attributable to owners of WBC in First Half 2019 was $252 million lower, down
6% compared to Second Half 2018. Excluding notable items, the Business Bank, Westpac New Zealand, and Westpac
Institutional Bank all increased cash earnings over the half. These increases were more than offset by a lower contribution from
the Group’s Treasury operations, and higher insurance claims (from severe weather events) contributing to a lower BTFG result.
Before notable items, the Consumer Bank result was relatively flat (down $7 million).
2019 Interim financial results
Review of Group operations
Half YearHalf YearHalf YearHalf Year% Mov’t% Mov’t
March 19March 19Sept 18March 18Mar 19 -Mar 19 -
$mUS$A$A$A$Sept 18Mar 18
Net interest income
5,870 8,263 8,227 8,278 --
Net fee income
587 826 1,146 1,278 (28)(35)
Net wealth management and insurance income
232 326 1,110 951 (71)(66)
Trading income
310 437 458 487 (5)(10)
Other income
90 127 (17)89 large43
Net operating income before operating expenses
and impairment charges
7,089 9,979 10,924 11,083 (9)(10)
Operating expenses
(3,616)(5,091)(4,911)(4,655)4 9
Profit before impairment charges and
income tax expense
3,473 4,888 6,013 6,428 (19)(24)
Impairment charges
(237)(333)(317)(393)5 (15)
Profit before income tax
3,236 4,555 5,696 6,035 (20)(25)
Income tax expense
(980)(1,379)(1,797)(1,835)(23)(25)
Net profit for the period
2,256 3,176 3,899 4,200 (19)(24)
Net profit attributable to non-controlling interests
(2)(3)(2)(2)50 50
Net profit attributable to owners of Westpac
Banking Corporation
2,254 3,173 3,897 4,198 (19)(24)
The Group has adopted AASB 9 Financial Instruments and AASB 15 Revenue from Contracts with Customers from 1 October 2018. Statutory
comparatives have not been restated. Refer to Note 1 in Section 4 for further detail. In addition, during First Half 2019, the Group has made a number
of presentational changes to the Balance Sheet and Income Statement. Both statutory and cash earnings comparatives have been restated. Refer to
Note 1 in Section 4 for further detail
.
Westpac Group 2019 Interim Financial Results Announcement|7
1
1

In addition to the notable items mentioned above, reported net profit attributable to owners of WBC was also impacted by a fair
value charge on economic hedges of $125 million in First Half 2019, compared to a $163 million benefit in Second Half 2018 (a
net $289 million turnaround).
The strength of the Group’s balance sheet has been maintained. The Group’s common equity tier 1 ratio was 10.6% at 31
March 2019 and above APRA’s unquestionably strong benchmark. The liquidity coverage ratio (LCR) was higher at 138%
(133% at September 2018) while the net stable funding ratio was little changed at 113% (114% at September 2018). Asset
quality has also been little changed, with stressed exposures to total committed exposures up 2 basis points over the last six
months and up 1 basis point over the last year. Within this measure, consumer delinquencies were higher, consistent with
slower economic activity.
Dividends
While net profit attributable to owners of WBC was lower, the strength of the Group’s capital ratio and lower growth environment
has enabled the Board to determine an interim ordinary dividend of 94 cents per share, fully franked, unchanged over both
Second Half 2018 and First Half 2018.
The interim ordinary dividend represents a payout ratio of 102.0% and a dividend yield of 7.3% . The payout ratio excluding
notable items was 82.4%. The Board has determined to issue shares to satisfy the dividend reinvestment plan (DRP) for the
interim 2019 dividend and to apply a 1.5% discount to the market price used to determine the number of shares issued unde
r
the DRP. The market price used to determine the number of shares issued under the DRP will be set over the 10 trading days
commencing 22 May 2019. The discount to the DRP market price has been applied to give the Group additional capital flexibility
including for regulatory changes to the measurement of capital and risk weighted assets likely to be announced in Second Hal
f
2019.
The interim ordinary dividend will be paid on 24 June 2019 with the record date of 17 May 2019 . After allowing for the interim
dividend, the Group’s adjusted franking account balance was $1,234 million.
The Government’s Bank Levy cost $193 million in First Half 2019, up from $192 million in Second Half 2018, and $186 million in
First Half 2018. Despite the decline in net profit attributable to owners of WBC, the Levy increased as it is based on applicable
liabilities which were higher over the period. The $193 million Bank Levy is equivalent to 4 cents per share and is included in net
interest income where it reduced net interest margin by 5 basis points.
2019 priorities
As part of its Full Year 2018 Results Announcement, Westpac reiterated that its service strategy remains unchanged and is
fundamental to its future. However, given the environment the Group highlighted its three priorities for 2019 were to: 1. Deal with
outstanding issues, 2. Build momentum in the customer franchise and 3. Structural cost reduction. Discussion in this
Performance Overview is structured in line with these priorities.
Dealing with outstanding issues
Over recent years, the Group has conducted extensive work across the organisation to review its products and operations,
assess culture, and enhance governance. This has included: ongoing product reviews; finalising a detailed culture and
governance assessment; resetting the Group’s wealth operations, exiting Hastings funds management and Ascalon and
commencing the implementation of the recommendations from the Royal Commission’s Final Report. The Group is now
accelerating the implementation of the changes needed to address the issues identified, further strengthen culture and
accountability, and accelerating customer remediation.
The Royal Commission represents an inflection point for the industry, and Westpac. The Royal Commission Final Report’s
recommendations raise important points of policy and principle for the industry and regulators. Westpac is actively responding to
the findings with a detailed response plan that has Board oversight.
Of the 51 recommendations relevant to Westpac, around 10 are largely implemented. This includes the removal o
f
grandfathered commission payments for its financial planners from 1 October 2018 and implementation of the Sedgwick Review
recommendations for the Group’s employees. For other recommendations requiring action, preparatory work is underway o
r
further guidance from government or regulators is required before substantive work can commence.
For more details on the Royal Commission refer to Section 4.1, Directors’ Report (Significant developments).
Culture, Governance and Accountability self-assessment
Westpac’s Culture, Governance and Accountability self-assessment (CGA) report was finalised in November 2018 and provided
to APRA at that time. The report has assessed Westpac’s risk culture, governance and accountability frameworks and practices,
and the impact they have on the management of non-financial risk. Work has commenced to implement the 45 actions
recommended in the report to enhance governance, accountability and culture across Westpac and supplementary activities in
these areas. The Board is also overseeing implementation of the CGA action plan.
2019 Interim financial results
Review of Group operations
Based on the closing share price as at 29 March 2019 of $25.92.
Record date for 2019 interim dividend in New York is 16 May 2019.
8 | Westpac Group 2019 Interim Financial Results Announcement
1
2
1
2

Get it right, put it right
Through the Group’s ‘get it right, put it right’ initiatives we have continued to review products, processes and policies to identify
where we may not have got it right for customers. Where problems were identified, the Group has committed to fix them and
refund customers. These initiatives identified a number of issues that have required remediation.
The Group booked an after tax cost of $617 million of provisions for estimated customer refunds, payments and associated
costs. This half, the Group has taken steps designed to accelerate the processing of customer refunds and centralise oversight
of certain remediation under the Chief Operating Officer.
In First Half 2019 the major items included in the provisions were related to:
x Customer refunds of ongoing advice service fees associated with the Group’s salaried financial planners. These provisions
add to those in prior periods and reflect an increase in the estimated proportion of instances where records of financial advice
are insufficient for the purposes of the remediation;
x Estimated customer refunds of ongoing advice service fees charged by the Group’s authorised representatives that provided
financial planning services under the Magnitude and Securitor brands. The provisions have been based on an estimate of the
proportion of instances where records of financial advice are insufficient for the purposes of the remediation. The provision is
an estimate of fees and interest that may be refunded to customers along with costs of implementing the remediation;
x Refunds for certain consumer and business customers that had interest only loans that did not automatically switch, when
required, to principal and interest loans; and
x 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 2018, Westpac indicated that, while it was committed to its Wealth and Insurance operations, it was considering its ability to
efficiently and effectively provide personal financial advice. In March 2019, the Group announced that it would change the way it
supports customers’ wealth and insurance needs by exiting the provision of personal financial advice and moving to a referral
model for these services.
At the same time, the Group announced an organisational realignment of BTFG’s businesses, with the Private Wealth,
Platforms & Investments, and Superannuation businesses moving into an expanded Business division, with the Insurance
business moving to the expanded Consumer division. As these changes were effective from 1 April 2019, the new organisational
structure is not presented in the First Half 2019 financial results.
As a result of these changes, the Group raised a provision for exit and transition costs of $190 million ($136 million after tax). As
the Group’s advice business was loss making, the exit is expected to be EPS accretive (excluding remediation provisions) fo
r
Westpac in 2020. The exit of advice and resetting the Group’s wealth operations is expected to reduce costs by around $280
million per annum over 2019 and 2020.
Given these changes, from Full Year 2019, BTFG will no longer be reported as a standalone division.
Customer complaints
A fundamental lesson of the Royal Commission was that while Westpac had made material progress in reducing complaints
over recent years, it had not managed certain categories of complaints as effectively as it should have. For example, some
complaints took too long to resolve, and the Group did not do enough to identify and prioritise vulnerable customers. In
June 2018 Westpac established the Customer and Corporate Relations division to embed a focus on customer complaints. The
change centralised the management, reporting and resolution of complaints. Although complaints are higher over the last 12
months because of the change in customer expectations, an increase in our efforts around formal logging of complaints has
reduced complaint handling times by over 22% in First Half 2019.
Momentum in customer franchise
The Group has continued to build momentum in its customer franchise by growing the number of customers, deepening
relationships, digitising processes and making banking and financial services easier for customers.
Progress over the half has included:
x Increased the number of Australian banking customers by over 36,000 in the last six months (up 1.6%);
x Number 1 in NPS for Business Bank and number 2 for Consumer Bank;
x Piloting a new virtual chat assistant called ‘Red’ for Westpac customers. Available 24/7, Red has already helped ove
r
100,000 customers with their queries;
x Made the New Payments Platform available to Westpac consumer customers, enabling them to make real time payments
and to establish their own PayID;
2019 Interim financial results
Review of Group operations
Westpac Group 2019 Interim Financial Results Announcement | 9

x After five years of development, the Group’s Customer Service Hub (CSH) is now live with the first mortgages originated via
the system. The CSH provides a simplified home ownership process for Westpac bankers and customers and will gradually
be rolled out to other brands and product sets;
x Continued to roll out the Group’s “Life Moments” services program to help customers when they need it most. In First Hal
f
2019 Westpac customers could access new resources to help manage their finances after a break-up or separation. This
builds on enhanced support for people who have lost a loved one, are having a baby or have been involved in a natural
disaster; and
x Grew general insurance gross written premiums by 3% over the prior half with improved sales through digital channels.
Structural cost reduction
In response to the challenges facing industry revenues, the Group announced a goal of achieving $400 million in structural
productivity savings in 2019. This would be a 32% uplift to the productivity savings achieved in 2018. In First Half 2019 a range
of productivity initiatives delivered $146 million in savings. As the benefits from these initiatives flow through to Second Hal
f
2019 and further plans are implemented, the Group believes it is well placed to achieve the $400 million Full Year 2019 target.
The Group’s Wealth reset has enabled Westpac to close its advice business, which was a high cost, loss making business and
restructure the Group’s wealth operations to reduce the costs associated with running a separate operating division. While the
initial savings from this change are relatively small, additional opportunities are expected to emerge in Full Year 2020 as the new
operating model is bedded down.
Other efficiency initiatives completed over the half included:
x Reduced FTE by 788 (or 2%). Around 1,000 roles were reduced through the half from completion of various organisational
reviews of head office and support roles. These declines were partially offset by around 200 new FTE to support regulatory
and compliance programs;
x Consolidated property, including the exit of two operations centres in Sydney (Epping and Norwest), the net reduction of 38
branches, and the removal of almost 350 ATMs (12% of the fleet);
x Continued to rationalise physical currency in the network, removing over $700 million in cash from branches. In addition to
savings from holding less cash, there are flow-on benefits to courier costs, security, and branch processing times; and
x An additional $23 million in savings from further modernisation of technology including a 20% rise in cloud volumes and the
removal of 13 applications.
Financial Performance Summary First Half 2019 – Second Half 2018
Net profit attributable to owners of WBC of $3,173 million in First Half 2019 was $724 million (or 19%) lower than Second Hal
f
2018, and $1,025 million (or 24%) lower than First Half 2018.
The reduction in net profit attributable to owners of WBC, combined with a 0.4% increase in the weighted average shares on
issue, led to a 19% decline in earnings per share (EPS) to 92.3 cents in First Half 2019. Average ordinary equity increased 1%
which in turn contributed to the Grou
p’s return on equity (ROE) falling to 10.05%, down 229 basis points.
These results were impacted by notable items detailed below:
Notable items
To help explain Westpac’s performance, two major items in this result are described as “notable items”:
x Provisions for estimated customer refunds and payments, along with associated costs. These provisions were incurred in
First Half 2019 and in Second Half 2018; and
x Exit and restructuring costs associated with the reset of Westpac’s wealth strategy. These provisions were incurred in First
Half 2019.
No notable items were recorded in First Half 2018.
Throughout this Results Announcement, the term “notable items” refer to these items only. These items are discussed further in
Note 14 of the 2019 Interim Financial Report.
2019 Interim financial results
Review of Group operations
Unless otherwise stated.
10 | Westpac Group 2019 Interim Financial Results Announcement
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Financial Performance Summary First Half 2019 – Second Half 2018 (continued)
Notable items impact net profit attributable to owners of WBC, the major income statement line items and certain performance
metrics. The following tables present the quantum of these items and their impact on movements in the income statement (Table
1) and certain performance metrics (Table 2) over First Half 2019, Second Half 2018 and First Half 2018.
Table 1. Impact from notable items and impact on movements in key line items
Table 2. Certain performance metrics including and excluding notable items
First Half 2019 net profit attributable to owners of WBC, excluding notable items, was $252 million lower than Second Half 2018
(down 6%) and were $272 million lower (down 6%) than First Half 2018.
Excluding notable items the ROE was 12.43%. Net tangible assets per share, which was impacted by the adoption of AASB 9,
decreased 2% to $15.12.
While the economic environment generally remains positive, with GDP growth of 2.3% for the year to December 2018,
unemployment remaining at historical lows and inflation holding below 2%, economic activity has slowed over the last six
months. Modest wages growth, a peaking construction cycle, falling house prices and weaker business and consumer sentiment
have all contributed to weaker activity. For financial services this has contributed to lower credit and deposit growth and lowe
r
demand for wealth and insurance services. At the same time, increased data and verification requirements have made the
process of borrowing more difficult for customers, particularly for smaller businesses.
These conditions contributed to a slowing in system credit growth in Australia to around 4% from almost 5% a year earlier with
both housing and business lending growth moderating. In New Zealand, private sector credit has been a little stronger, growing
at around 6% up from approximately 5% a year earlier.
For Westpac, total lending grew at 1% over the six months to March 2019 and by 2% over the prior 12 months. Most of the
growth over the half was in New Zealand, supported by a stronger NZ exchange rate and 2% growth in total loans. Growth in
Australia was more modest with a 1% increase in mortgages, mostly in owner occupied lending, partly offset by a decline in both
business lending and in other personal lending.
Customer deposits decreased 1% over the half, mostly from lower government deposits and from lower flows following the
repricing of both term deposits and online savings products. New Zealand deposits were up 4% (9% in A$ terms), with good
growth across all categories.
Given the lower deposit balances, the deposit to loan ratio was down over the half to 71.6% at 31 March 2019.
Net interest margin of 2.09% was down 1 basis point over the half. Notable items decreased net interest margin by 3 basis
points over the half. Excluding these items, the net interest margin was 2 basis points higher over the half.
This 2 basis point rise was due to higher loan and deposit spreads (adding 1 basis point each) partially offset by highe
r
securities holdings, both for market inventory and liquidity. Most of the increase in loan spreads was due to the mortgage
repricing that occurred in September 2018, although this was largely offset by competition for new lending, retention pricing and
the impact of customers switching to lower rate principal and interest lending from interest only facilities. Improved deposit
spreads (up 1 basis point) followed the repricing of term deposits and online deposits.
2019 Interim financial results
Review of Group operations
Size of notable items ($m)
% Mov’t
Mar 19
–Sept 18
% Mov’t
Mar 19
–Mar 18
Half Year
March 1
9
Half Year
Se
pt 18As reported
Ex notable
items As re
ported
Ex notable
items
Net interest income(212)(105)-2-2
Non-interest income(600)(163)(36)(19)(39)(17)
Operating expenses(274)(112)4-93
Profit before impairment charges
and income tax expense(1,086)(380)(19)(7)(24)(7)
Impairment charges--55(15)(15)
Tax33399(23)(10)(25)(7)
Net profit attributable to owners
of WBC(753)(281)(19)(6)(24)(6)
Half Year March 19Half Year Sept 18Half Year March 18
(%)As reported
Ex notable
item
sAs reported
Ex notable
item
sAs reported
Ex notable
item
s
Return on equity10.0512.4312.3413.2313.7913.79
Net interest margin 2.092.142.102.122.162.16
Expense to income ratio 51.0244.6444.9642.8842.0042.00
Unless otherwise stated.
Westpac Group 2019 Interim Financial Results Announcement | 11
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Financial Performance Summary First Half 2019 – Second Half 2018 (continued)
Non-interest income declined $981 million in First Half 2019 to $1,716 million (down 36%). Most of the decline was due to an
increase in notable items of $437 million, the non-repeat of Hastings income ($180 million), and the adoption of AASB 15
resulting in reclassification of line fees from net fee income to net interest income (down $340 million). Westpac finalised the exit
of its infrastructure funds business ‘Hastings’ in Second Half 2018. The exit had a small impact on net profit attributable to
owners of WBC but had a more significant impact on non-interest income (including from large exit related fees) and costs (from
the write-down of goodwill).
Excluding these items (notable items, adoption of AASB 15 and Hastings) non-interest income was down $24 million or 1%, with
the decline mostly due to lower wealth and insurance income including from higher general insurance claims ($94 million) fo
r
major weather events (Queensland Floods and NSW hailstorms), and lower fees following decisions to reduce platform fees and
eliminate grandfathered commission payments.
In aggregate, the 36% decline in non-interest income led to net operating income before operating expenses and impairment
charges declining 9%. Excluding notable items, net operating income before operating expenses and impairment charges was
4% lower over the Second Half 2018.
Operating expenses increased 4% or $180 million in First Half 2019 compared to Second Half 2018. Operating expense growth
this period was also impacted by notable items which added $162 million to costs. Operating expenses excluding notable items
were flat
.
Within business as usual costs, salary costs were higher following annual salary increases from January 2019, along with mix
impacts from employing more highly qualified individuals. Occupancy costs were higher from annual rent increases and cost o
f
branch closures. Technology costs were also higher mostly associated with investment in the Group’s infrastructure, including
enhancements to cybersecurity, Panorama and launching the CSH. These increases were broadly offset by structural
productivity savings of $146 million mentioned earlier.
Given the notable items (higher expenses and reduced revenues) the expense to income ratio increased over 6 percentage
points to 51.0% for First Half 2019. Excluding notable items, the expense to income ratio was 44.6%, 1.8% higher over the last
six months and around 2.6% higher compared to First Half 2018.
Credit quality remained sound, with key metrics relatively stable over the half and over the prior corresponding period. Stressed
exposures to total committed exposures were little changed at 1.10% at March 2019, up 2 basis points from September 2018
and up 1 basis point from March 2018.
Within stressed exposures, impaired exposures were higher including from one facility over $50 million migrating to impaired in
the second quarter. Mortgage delinquencies were also higher (up 8 basis points over the last six months) which contributed to a
rise in 90 days past due and not impaired category within stressed exposures. The proportion of watchlist and substandard
exposures declined over the period due in part to the migration of one larger facility to impaired.
Slowing economic activity and low wages growth has contributed to a rise in customers experiencing difficulty. At the same time,
current conditions have led to an increase in the time taken (on average) to sell a property. Together, these factors have
contributed to the rise in mortgage delinquencies over the half. Net mortgage write-offs for the half remained low at $52 million
(2 basis points) compared to $42 million in Second Half 2018 and $47 million in First Half 2018.
Consistent with these trends, properties in possession remained low at 482, but were up from 396 at September 2018.
Given the credit quality picture, impairment charges were $333 million for First Half 2019, up 5% (or $16 million) on Second Hal
f
2018 and representing 9 basis points to average gross loans. The increase was mostly due to higher total new collectively
assessed provisions linked to an increase in consumer delinquencies. These were partially offset by lower provisions from lowe
r
new stress in Business Bank and a reduction in the centrally held overlays.
Following the adoption of AASB 9, overall provisioning levels have increased, mostly associated with facilities that are still
performing but have experienced a significant increase in credit risk (called Stage 2 facilities). As a result, total provisions were
$3,995 million at March 2019, up from $3,053 million at September 2018.
The ratio of impaired exposure provisions to total impaired exposures was 46% at March 2019, which was unchanged compared
to First Half 2018. Consistent with the rise in overall provisions the ratio of collectively assessed provisions to credit risk
weighted assets has increased to 98 basis points, up from 73 basis points at September 2018
.
The effective tax rate was 30.3% for the half. This is above the corporate tax rate due to the non-deductibility of certain
expenses, including hybrid distributions.
2019 Interim financial results
Review of Group operations
Unless otherwise stated.
12 | Westpac Group 2019 Interim Financial Results Announcement
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1

Financial Performance Summary First Half 2019 – Second Half 2018 (continued)
Across divisions earnings results were mixed compared to Second Half 2018 with BTFG and the Business Bank particularly
affected by notable items. The Consumer Bank recorded a 7% rise in cash earnings, with higher net interest margin and lowe
r
expenses. New Zealand (in NZ$) recorded a 4% increase in cash earnings, and WIB recorded a 1% increase in cash earnings
from higher trading income and improved efficiency. The Business Bank’s cash earnings were down $67 million (6%) due to an
increase in notable items while BT Financial Group reported a loss of $305 million with the decline due to notable items.
Balance sheet
The Group maintained the strength of its balance sheet across all dimensions:
x A CET1 capital ratio of 10.6%, above the “unquestionably strong” benchmark set by APRA. The ratio was little changed ove
r
the half as earnings, after dividends, more than offset other capital movements. Risk weighted assets were lower over the
half;
x A liquidity coverage ratio (LCR) of 138%, up from 133% six months earlier and comfortably above the 100% regulatory
minimum; and
x A net stable funding ratio (NSFR) of 113%, little changed over the half and prior year and also well above the 100%
regulatory minimum.
Financial performance summary First Half 2019 - First Half 2018
Net profit attributable to owners of WBC of $3,173 million was down 24% with profit before impairment charges and income tax
expense also down 24%, while impairment charges fell 15%.
Net interest income was flat with a 7 basis point decrease in net interest margins only partially offset by a 4% rise in average
interest-earning assets. Margins excluding Treasury and Markets decreased 1 basis point from First Half 2018, with the decline
due to notable items (5 basis points), higher short term wholesale funding costs (5 basis points) and lower mortgage spreads.
The decline in mortgage spreads was due to customers switching from interest only to principal and interest lending, changes in
portfolio mix towards lower margin products (fixed rate and basic products), competition contributing to lower rates on new
mortgages and more retention pricing. These declines were partially offset by higher deposit spreads and the adoption of AASB
15 primarily from the reclassification of line fees from net fee income to net interest income.
Total loans grew 2%, with most of the rise due to an increase in Australian mortgage lending and New Zealand lending.
Australian business lending was little changed compared to First Half 2018 with subdued demand and lower utilisation of
warehouse facilities. New Zealand lending was up 4% (up 6% in A$ terms) from growth in mortgages and business lending.
Australian personal lending was lower, mostly reflecting lower demand and a decline in low return products, particularly Auto
lending. Customer deposits grew 2% over First Half 2018.
Non-interest income was down 39%, impacted by an increase in notable items of $600 million, the loss of income following the
exit of the Hastings business in 2018 ($23 million), and the adoption of AASB 15 resulting in reclassification of line fees from net
fee income to net interest income (down $327 million). Excluding these, non-interest income was down 5% mostly from lowe
r
financial markets income and a reduction in wealth management income (from a lower advice contribution, the reduction in
pricing across platforms and a reduction in average funds). Insurance claims for major weather events were also higher, up $66
million.
Operating expenses increased 9%. This included an increase of $274 million in notable items. Excluding notable items,
operating expenses were $162 million higher. Most of this operating expense growth was due to higher spending associated
with investment and an increase in regulatory and compliance costs with $319 million of structural productivity savings more
than offsetting ordinary cost growth.
Impairment charges were $60 million (or 15%) lower than First Half 2018, with most of the decrease due to lower new
collectively assessed provisions and reduction in write-offs principally in unsecured lending. Individually assessed provisions
were higher mostly from lower recoveries
.
2019 Interim financial results
Review of Group operations
Unless otherwise stated.
Westpac Group 2019 Interim Financial Results Announcement | 13
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Divisional Net Profit after Tax (NPAT) Summary
Summary of movement in NPAT by Business Divisions (First Half 2019 – First Half 2018)
Consumer Bank (CB) NPAT excluding notable items decreased $178 million or 11% mainly from a decline in net interest income
and increased operating expenses.
Business Bank (BB) NPAT decreased $65 million or 6%. Excluding notable items, NPAT increased $66 million primarily due to
higher net interest income and reduction in impairment charges.
BT Financial Group (Australia) (BTFG) reported a net loss after tax of $310 million in First Half 2019 compared to prio
r
comparative period’s NPAT of $406 million. Excluding notable items of $620 million, NPAT decreased $96 million or 24%
primarily due to higher weather related insurance claims and lower revenue related to the ceasing of grandfathered commission
payments and platforms repricing.
Westpac Institutional Bank (WIB) NPAT decreased $11 million or 2% mainly due to lower financial markets revenue and an
impairment charge compared to an impairment benefit in First Half 2018. These were offset by higher net interest margin and
lower operating expenses.
Westpac New Zealand NPAT increased $69 million or 4% primarily due to gain on sale of Paymark and a reduction in
impairment charges.
Group Businesses reported a net loss after tax of $106 million in First Half 2019 compared to prior comparative period’s NPAT o
f
$16 million, a decline of $122 million mainly due to lower Treasury revenue, partly offset by an impairment benefit in First Hal
f
2019 compared to an impairment charge in First Half 2018 and a fall in expenses.
2019 Interim financial results
Review of Group operations
The NPAT graph illustrates the movements in NPAT (in $ value) for each division.
14 | Westpac Group 2019 Interim Financial Results Announcement
1
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2.2Review of reported results
2.2.1Net interest income
First Half 2019 – Second Half 2018
Net interest income increased $36 million compared to Second Half 2018. Key features include:
x2% increase in average interest-earning assets largely from Australian housing and New Zealand lending;
xGroup net interest margin decreased 1 basis point. Excluding a net 3 basis point impact of notable items, Group net interest
margin increased primarily from pricing changes in Australian variable mortgages, partly offset by competition, retention
pricing and changes in the mix of the mortgage portfolio with customers switching from interest only to principal and interest;
xThe impact from the adoption of AASB 15 was an increase of $360 million primarily from the reclassification of line fees from
net fee income to net interest income, and $57 million from the implementation of AASB 9 which now measures interest on
performing loans on the gross loan value; partly offset by
xTreasury and Markets net interest income decreased $395 million due to fair value movements in economic hedges and
lower Treasury revenue from interest rate risk management.
First Half 2019 – First Half 2018
Net interest income decreased $15 million compared to First Half 2018. Key features include:
xGroup net interest margin decreased 7 basis points primarily due to a 5 basis point impact from provisions for estimated
customer refunds and payments, increased short term wholesale funding costs related to movements in BBSW and reduced
mortgage spreads. This was partly offset by the full period impact from changes to pricing of Australian variable mortgages
and increased spreads across customer deposits;
xTreasury and Markets net interest income decreased $254 million due to fair value movements in economic hedges and
lower Treasury revenue from interest rate risk management; partly offset by
xThe impact from the adoption of AASB 15 was an increase of $360 million primarily from the reclassification of line fees from
net fee income to net interest income and $58 million from the implementation of AASB 9 which now measures interest on
performing loans based on the gross loan value; and
x4% growth in average interest-earning assets, primarily from Australian and New Zealand housing.
2019 Interim financial results
Review of Group operations
% Mov’t% Mov’t
Half YearHalf YearHalf YearMar 19 -Mar 19 -
$
mMarch 19Sept 18March 18Sept 18Mar 18
Net interest income8,2638,2278,278--
Average interest-earning assets794,660782,834767,01124
Grou
p net interest margin2.09%2.10%2.16%(1bps)(7bps)
Refer to Section 4 Note 3 for reported results breakdown.
The Group has adopted AASB 9 Financial Instruments and AASB 15 Revenue from Contracts with Customers from 1 October 2018. Statutor
y
comparatives have not been restated. Refer to Note 1 in Section 4 for further detail. In addition, during First Half 2019, the Group has made a number
of presentational changes to the Balance Sheet and Income Statement. Both statutory and cash earnings comparatives have been restated. Refer to
Note 1 in Section 4 for further detail
.
Westpac Group 2019 Interim Financial Results Announcement | 15
1,2
1
2

2.2.2Loans
First Half 2019 – Second Half 2018
Total loans increased $4.6 billion or 1% compared to Second Half 2018. Excluding foreign currency translation impacts, total
loans increased $0.8 billion.
Key features of total loan growth were:
xAustralian housing loans increased $2.4 billion or 1%. A slowdown in system growth and the Group’s decision to prioritise
return over growth saw new lending down 18% in the half. Owner occupied housing balances grew 2% and comprised 57%
of the portfolio (30 September 2018: 57%, 31 March 2018: 56%), with the investor property lending portfolio little changed in
the half;
xAustralian business loans decreased $1.9 billion or 1%, primarily from a 2% reduction in institutional balances, from reduced
utilisation of existing warehouse facilities and a 1% decrease in Business Bank reflecting lower property lending balances
and a decline in demand across industries;
xAustralian provision balances increased $0.8 billion or 32% during the half following the implementation of AASB 9; and
xNew Zealand loans increased NZ$1.6 billion or 2%, due to broad based business lending growth (up 3%) and housing
growth of 1% mostly in fixed rate products to owner occupiers.
First Half 2019 – First Half 2018
Total loans increased $12.9 billion or 2% compared to First Half 2018. Excluding foreign currency translation impacts, total loans
increased $11.4 billion or 2%.
Key features of total loan growth were:
xAustralian housing loans increased $9.9 billion or 2%. Owner occupier loans increased 5%, while investor property lending
was little changed. The Group managed interest only loan growth in a disciplined way, with new interest only facilities
representing 19% of new mortgage lending for the half and now comprise 31% of the portfolio (30 September 2018: 35%, 31
March 2018: 40%). Customers have switched $16.0 billion of interest only loans to principal and interest during this period,
with principal and interest loans now comprising 65% of the portfolio;
xAustralian personal loans decreased $1.3 billion or 5%, from lower auto finance and personal loans; and
xNew Zealand lending increased NZ$2.9 billion or 4%. Housing grew 4% mostly in fixed rate products and business lending
increased 5%, supported by growth in agriculture and corporate lending. This was partly offset by a 9% decline in personal
loans, from lower credit card and personal lending balances.
2019 Interim financial results
Review of Group operations
As atAs atAs at% Mov’t% Mov’t
31 March30 Sept31 MarchMar 19 -Mar 19 -
$
m201920182018Sept 18Mar 18
Australia618,811619,630610,397-1
Housin
g447,164444,741437,23912
Personal22,46322,99723,752(2)(5)
Business
152,424154,347151,904(1)-
Provisions(3,240)(2,455)(2,498)3230
New Zealand (A$)
79,00074,04574,68776
New Zealand (NZ$)82,47080,86079,55724
Housing
49,58448,89347,90714
Personal
1,9372,0402,128(5)(9)
Business
31,30830,25129,89835
Provisions(359)(324)(376)11(5)
Other overseas (A$)
16,48616,01516,30931
Total loans
714,297709,690701,39312
Spot loan balances.
The Group has adopted AASB 9 Financial Instruments and AASB 15 Revenue from Contracts with Customers from 1 October 2018. Statutory
comparatives have not been restated. Refer to Note 1 in Section 4 for further detail. In addition, during First Half 2019, the Group has made a number
of presentational changes to the Balance Sheet and Income Statement. Both statutory and cash earnings comparatives have been restated. Refer to
Note 1 in Section 4 for further detail.
Source: RBA March 201
9
16 | Westpac Group 2019 Interim Financial Results Announcement
1,2
3
1
2
3

2.2.3Deposits and other borrowings
First Half 2019 – Second Half 2018
Total customer deposits decreased $6.1 billion or 1% compared to Second Half 2018. Excluding foreign currency translation
impacts, customer deposits decreased $9.1 billion or 2%.
Key features of total customer deposits movements were:
xAustralian customer deposits decreased $12.9 billion or 3%, primarily from lower institutional deposits across both at-call
and term deposits (largely Government balances). Non-interest bearing deposits were up 2% as customers continued to
direct funds to mortgage offset accounts;
xNew Zealand customer deposits increased NZ$2.3 billion or 4%, with the increase more than fully funding loan growth in the
half. At call deposits increased 5% mostly across consumer and institutional segments; and
xOther overseas deposits increased $2.0 billion or 14% due to growth in term deposits in Asia.
Certificates of deposit increased $1.8 billion or 4%, from higher short term wholesale funding issuance in this form.
First Half 2019 – First Half 2018
Total customer deposits increased $9.6 billion or 2% compared to First Half 2018. Excluding foreign currency translation
impacts, customer deposits increased $7.4 billion or 1%.
Key features of total customer deposits growth were:
xAustralian customer deposits increased $3.9 billion or 1%, mostly in term deposits (up 4%). Institutional deposits were down
over the prior corresponding period (largely Government balances);
xNew Zealand customer deposits increased NZ$2.6 billion or 4%. Term deposits were up 5% as the business focused on
higher quality deposits and customer preference for higher rate products. Non-interest bearing deposits increased 9%, from
growth in business and consumer transaction deposits.
Certificates of deposit decreased $2.3 billion or 5%, from reduced short term wholesale funding issuance in this form.
2019 Interim financial results
Review of Group operations
As atAs atAs at% Mov’t% Mov’t
31 March30 Sept31 MarchMar 19 -Mar 19 -
$
m201920182018Sept 18Mar 18
Customer deposits
Australia433,736446,667429,852(3)1
At call
222,733233,052227,021(4)(2)
Term168,313171,832161,864(2)4
Non-interest bearin
g42,69041,78340,96724
New Zealand (A$)61,51656,67157,85696
New Zealand (NZ$)64,21861,88761,62844
At call
24,52023,33924,16451
Term
33,32032,64531,59525
Non-interest bearing6,3785,9035,86989
Other overseas (A$)16,39114,41314,3551414
Total customer deposits511,643517,751502,063(1)2
Certificates of deposit43,36441,53445,6734(5)
Australia
31,12328,74630,38782
New Zealand (A$)8581,116521(23)65
Other overseas (A$)11,38311,67214,765(2)(23)
Total deposits and other borrowings
555,007559,285547,736(1)1
Spot deposit balances.
Westpac Group 2019 Interim Financial Results Announcement | 17
1
1

2.2.4Net interest margin
First Half 2019 – Second Half 2018
Group net interest margin of 2.09% decreased 1 basis point from Second Half 2018. Notable items which reflect additional
provisions for estimated customer refunds and payments (mostly in Consumer and Business Bank), reduced net interest margin
by a net 3 basis points in the half.
Excluding notable items, group net interest margin was up 2 basis points with key features including:
x11 basis points increase from the adoption of AASB 15 and AASB 9 primarily related to the reclassification of line fees from
net fee income to net interest income and the measurement of interest on performing loans based on the gross loan value;
x1 basis point increase from loan spreads primarily from pricing changes to certain Australian mortgage types. This was partly
offset by competition, retention repricing and changes in the mix of the mortgage portfolio with customers switching from
higher rate interest only lending to principal and interest facilities, and the impact from changes to the calculation of credit
card interest rates; and
x1 basis point increase from customer deposit spreads, mostly from repricing of online and savings accounts; partly offset by
x1 basis point decrease from capital & other, including the impact of increased inventory of trading securities;
xShort term wholesale funding costs, including the impact of bank bill swap rate (BBSW), was little changed over the half,
despite volatility across quarters; and
xThe contribution from Treasury and Markets reduced by 10 basis points due to lower Treasury revenue from interest rate risk
management.
2019 Interim financial results
Review of Group operations
18| Westpac Group 2019 Interim Financial Results Announcement

First Half 2019 – First Half 2018
Group net interest margin was 2.09%, a decrease of 7 basis points from First Half 2018. Notable items which reflect additional
provisions for estimated customer refunds and payments (mostly in Consumer and Business Bank), reduced margin by 5 basis
points.
Excluding notable items, Group net interest margin reduced by 2 basis points, due to:
x5 basis points decrease from higher short term wholesale funding costs related to movements in BBSW, particularly in
Second Half 2018;
x3 basis points decrease to loan spreads from competition, changes in the mix of the mortgage portfolio with customers
switching from interest only loans to principal and interest facilities and the impact from changes to the calculation of credit
card interest rates; partly offset by pricing changes to certain Australian mortgage types;
x1 basis point decrease from liquidity primarily due to increased holdings of third party liquid assets;
xThe contribution from Treasury and Markets reduced by 6 basis points, including 4 basis points due to lower Treasury
revenue from interest rate risk management and 2 basis points due to fair value movements on economic hedges; partly
offset by
x11 basis points increase from the adoption of AASB 15 and AASB 9 primarily related to the reclassification of line fees from
net fee income to net interest income and the measurement of interest on performing loans based on the gross loan value;
and
x2 basis points increase from customer deposit spreads, across most categories.
2019 Interim financial results
Review of Group operations
Westpac Group 2019 Interim Financial Results Announcement|19

2.2.5Non-interest income
First Half 2019 – Second Half 2018
Non-interest income decreased $981 million or 36% compared to Second Half 2018, including a $437 million impact from
additional provisions for estimated customer refunds and payments (notable items). Excluding the notable items, non-interest
income was down $544 million or 19% mostly due to the exit of Hastings ($180 million), lower insurance income (down $117
million) following a large rise in general insurance claims associated with major weather events, the decision to reduce platform
fees ($8 million) and cessation of grandfathered commission payments ($21 million). The impact from the adoption of AASB 15
was a reduction of $340 million from the reclassification of line fees from net fee income to net interest income and
reclassification of certain items previously netted that are now presented on a gross basis (up $74 million).
Net fee income
Net fee income decreased $320 million or 28%, largely impacted by:
xReclassification of line fees from non-interest income to net interest income as a result of the adoption of AASB 15 to more
appropriately reflect the relationship with drawn lines of credit (down $340 million);
xA decrease in credit card income (down $19 million) from lower currency conversion fees and a reduction in annual fees;
xLower advice revenue, from a reduction in planner numbers and lower activity (down $20 million);
x$9 million decrease from notable items mostly related to financial planning; and
xLower revenue from payments and transaction fees (down $21 million) driven by increased merchant costs and lowe
r
account fees in New Zealand following the decision to eliminate certain consumer fees; partly offset by
xReclassification of certain items previously netted that are now presented on a gross basis including card scheme support
payments (up $74 million).
Net wealth management and insurance income
Net wealth management and insurance income decreased $784 million or 71% compared to Second Half 2018. This included a
rise in provisions for estimated customer refunds and payments (notable items) mostly related to financial planning of $428
million. Excluding notable items, net wealth management and insurance income reduced $356 million or 32% due to:
xThe exit of the Hastings business in Second Half 2018 saw revenue reduce $180 million to nil;
xInsurance income was down $117 million from:
-Lower general insurance income (down $96 million) from higher claims, including the impact from NSW hailstorms and
Queensland floods, partly offset by a 3% increase in net earned premiums;
-Lender Mortgage Insurance (LMI) contribution was down $4 million from reduced premium income and higher claims;
and
-Life insurance income down $17 million, from movement in policyholder tax recoveries and lower net earned premiums
partly offset by lower claims and improved lapses.
xLower Platforms and Superannuation income (down $31 million) due to lower platform margins from repricing and product
mix changes and a 4% reduction in average group funds (excluding WIB) from lower asset markets and outflows from legacy
platforms. These declines were partly offset by a 38% increase in BT Panorama funds to $17 billion; and
xCessation of grandfathered commission payments (down $21 million).
2019 Interim financial results
Review of Group operations
% Mov’t% Mov’t
$m
Half Year
March 19
Half Year
Sept 18
Half Year
March 18
Mar 19
-
Sept 18
Mar 19 -
Mar 18
Net fee income
8261,1461,278(28)
(35)
Net wealth management and insurance income
3261,110951(71)
(66)
Trading income
437458487(5)
(10)
Other o
perating income
127
(17
)
89large43
Non-interest income
1,7162,6972,805(36)(39)
Refer to Section 4 Note 4 for reported results breakdown.
The Group has adopted AASB 9 Financial Instruments and AASB 15 Revenue from Contracts with Customers from 1 October 2018. Statutory
comparatives have not been restated. Refer to Note 1 in Section 4 for further detail. In addition, during First Half 2019, the Group has made a number
of presentational changes to the Balance Sheet and Income Statement. Both statutory and cash earnings comparatives have been restated. Refer to
Note 1 in Section 4 for further detail
.
20 | Westpac Group 2019 Interim Financial Results Announcement
1,2
1
2

Trading income
Trading income decreased $21 million or 5% compared to Second Half 2018, primarily driven by lower non-customer income
largely related to foreign currency. Refer to Section 2.2.7 for further detail on Markets related income.
Other income
Other income increased $144 million compared to Second Half 2018, mostly reflecting the non-repeat of a $104 million
revaluation loss on the Pendal investment, gain from asset sales and the revaluation of a fintech investment, partly offset by the
impact of hedging New Zealand earnings.
First Half 2019 – First Half 2018
Non-interest income decreased $1,089 million or 39% compared to First Half 2018. An increase in provisions for estimated
customer refunds and payments (notable items) was a large component of the decline ($600 million). Excluding notable items,
non-interest income decreased $489 million or 17% from the exit of the Hastings business, reduced net wealth management and
insurance income and lower trading income. In addition, the adoption of AASB 15 resulted in the reclassification of line fees from
net fee income to net interest income (down $327 million) and reclassification of certain items previously netted that are now
presented on a gross basis (up $74 million).
Net fee income
Net fee income decreased $452 million or 35% compared to First Half 2018 primarily from a $165 million increase in provisions
for notable items mostly related to financial planning. Excluding notable items, net fee income reduced $287 million mainly from:
x Reclassification of line fees from non-interest income to net interest income to more appropriately reflect the relationship with
drawn lines of credit (down $327 million); and
x Lower advice revenue, due to reduction in planner numbers and lower activity (down $16 million);
x Lower business lending, mortgage and personal lending fees due largely to reduced new lending (down $16 million); partly
offset by
x Reclassification of certain items previously netted that are now presented on a gross basis, including card scheme support
payments (up $74 million); and
x Higher credit card income from reduced reward costs and an increase in scheme support payments.
Net wealth management and insurance income
Net wealth management and insurance income decreased $625 million or 66% compared to First Half 2018, impacted by
additional provisions for notable items (mostly related to financial planning) of $435 million. Excluding the notable items, net
wealth management and insurance income was down $190 million or 20% due to
:
x Following the exit of the Hastings business, revenue reduced to nil (down $32 million);
x Lower insurance income ($72 million) from:
-A reduction in general insurance income (down $61 million) from higher claims, including the NSW hailstorm and
Queensland floods; and
-Lower LMI income (down $7 million) primarily from a reduction in loans written at higher LVR bands; partly offset by
-Life insurance was $4 million lower, from movement in policyholder tax recoveries and higher claims, offset by highe
r
net earned premiums.
x Lower Platforms and Superannuation income (down $39 million) due to margin compression from pricing changes to
platforms, product mix changes, competition and lower average funds from legacy platform outflows; and
x Cessation of grandfathered commission payments (down $21 million).
Trading income
Trading income decreased $50 million or 10% compared to First Half 2018, primarily driven by lower customer income, lowe
r
non-customer income and the derivative valuation adjustment. Refer to Section 2.2.7 for further detail on Markets related
income.
Other income
Other income increased $38 million or 43% compared to First Half 2018, mostly from asset sales, partly offset by the impact o
f
hedging New Zealand earnings.
2019 Interim financial results
Review of Group operations
Westpac Group 2019 Interim Financial Results Announcement|21

2.2.6Group funds
Funds are discussed in Section 3.3 and Section 3.5.
2019 Interim financial results
Review of Group operations
As atAs atAs at% Mov’t% Mov’t
31 March30 Sept31 MarchMar 19 -Mar 19 -
$b
n201920182018Sept 18Mar 18
Superannuation38.9
39.337.4(1)4
Platforms
120.8
122.9118.6(2)2
Packa
ged Funds39.8
39.638.015
Othe
r3.6
3.
83.7(5)(3)
New Zealand
(A$)
10.4
9.89.767
Total funds
(excluding Westpac Institutional Bank)213.5
215.4207.4(1)3
Westpac Institutional Bank
-
-6.6
-(100)
Total Group funds
213.5
215.4214.0(1)-
Average funds (excluding Westpac Institutional Bank)207.3
214.9207.6(4)-
Westpac Institutional Bank
-
2.49.7(100)(100)
Average funds for the Group
207.3
217.3217.3(5)(5)
Averages are based on a six month period.
22 | Westpac Group 2019 Interim Financial Results Announcement
1
1

2.2.7Markets related income
Markets income comprises sales and risk management revenue derived from the creation, pricing and distribution of risk
management products to the Group’s consumer, business, corporate and institutional customers. Dedicated relationship
specialists provide product solutions to these customers to help manage their interest rate, foreign exchange, commodity, credit
and structured products risk exposures.
First Half 2019 - Second Half 2018
Total markets income increased $32 million or 6% compared to Second Half 2018 due to an increase in non-customer income.
Customer income decreased 2%, driven by lower foreign exchange revenue.
Non-customer income increased $67 million compared to Second Half 2018, primarily due to higher foreign exchange and
commodities income.
Derivative valuation adjustments were $25 million lower in the half.
First Half 2019 – First Half 2018
Total markets income decreased $56 million or 9% compared to the First Half 2018, primarily due to lower non-custome
r
income.
Customer income decreased 2% compared to First Half 2018 mainly driven by lower foreign exchange revenue.
Non-customer income decreased $35 million or 22% compared to First Half 2018, due to lower foreign exchange and
commodities income in First Half 2019.
Markets Value at Risk (VaR)
2019 Interim financial results
Review of Group operations
% Mov’t% Mov’t
Half YearHalf YearHalf YearMar 19 -Mar 19 -
$
mMarch 19Sept 18March 18Sept 18Mar 18
Net interest income68666338
Non-interest income
4864565477
(11)
Total Markets income
5545226106
(9
)
Customer income438448448(2)
(2)
Non-customer income
12760162112
(22)
Derivative valuation adjustments
(11)
14-lar
ge-
Total Markets income5545226106(9)
$mAverageHighLow
Six months ended 31 March 2019
9.617.56.3
Six months ended 30 Se
ptember 201810.827.17.0
Six months ended 31 March 201
89.019.93.8
The Components of Markets VaR are as follows:
Avera
geHalf YearHalf YearHalf Year
$
mMarch 19Sept 18March 18
Interest rate risk3.22.72.7
Forei
gn exchange risk2.02.41.5
Equity risk--0.1
Commodity risk8.16.66.4
Credit and other market risks
2.84.42.6
Diversification benefit
(6.5)(5.3)(4.3)
Net market risk
9.610.89.0
Markets income includes WIB Markets, Business Bank, Consumer Bank, BTFG and Westpac New Zealand markets.
The daily VaR presented above reflects a WIB divisional view of VaR. It varies from presentations of VaR in Westpac’s 2018 Annual Report an
d
Australian Prudential Standard (APS) 330 Prudential Disclosure under Basel III where market risk disclosures are segregated into trading and banking
book. VaR measures the potential for loss using a history of price volatility.
Includes electricity risk.
Includes
pre-payment risk and credit spread risk (exposures to generic credit rating bonds).
Westpac Group 2019 Interim Financial Results Announcement | 23
1
2
3
4
1
2
3
4

2.2.8Operating expenses
First Half 2019 – Second Half 2018
Operating expenses increased $180 million or 4% compared to Second Half 2018. Excluding the impact of increases in
estimated costs associated with implementing customer refunds and payments, and the wealth strategy reset (notable items) o
f
$162 million, operating expenses increased $18 million compared to Second Half 2018. The adoption of AASB 15 has resulted
in certain items previously netted being now presented on a gross basis including credit card scheme support payments (up
$131 million). In addition, operating costs and costs associated with the Group’s investment programs were higher, partly offset
by productivity benefits of $146 million and the exit of the Hastings business ($121 million).
Staff expenses increased $156 million or 6% during the half. Excluding notable items (up $171 million), staff expenses
decreased $15 million primarily due to a 3% decrease in average FTE from delivery of productivity initiatives related to
organisation simplification and channel optimisation, and the impact from adoption of AASB 15 (down $29 million). This was
partly offset by annual salary increases effective from January 2019, the Group’s investment programs having a highe
r
proportion of spend expensed in the half, and BTIM separation costs (up $21 million).
Occupancy expenses increased $14 million or 3% compared to Second Half 2018. As part of our productivity program, the
Group incurred costs related to branch closures, with branch numbers across the Group down 38 in the half. Productivity
benefits from property consolidation offset rental increases across retail and corporate sites.
Technology expenses increased $71 million or 7% compared to Second Half 2018. Excluding notable items (up $20 million),
technology expenses increased $51 million from higher technology services and software maintenance and licensing costs to
support the Group’s technology infrastructure, cyber security and customer service hub. In addition, adoption of AASB 15
contributed $18 million to technology expenses growth, primarily related to scheme support payments.
Other expenses decreased $61 million or 7%, with notable items down $29 million compared to Second Half 2018. Excluding
these items, other expenses decreased $32 million primarily from the exit of the Hastings business
($92 million) and lower regulatory and compliance costs (down $49 million) including lower Royal Commission costs. This was
partly offset by the adoption of AASB 15 (up $84 million) and higher marketing and Group insurance costs.
First Half 2019 – First Half 2018
Operating expenses increased $436 million or 9% compared to First Half 2018, with an increase in estimated costs associated
with implementing customer refunds and payments, and the wealth strategy reset (notable items) contributing $274 million.
Excluding notable items, operating expenses increased 3% primarily from the adoption of AASB 15 ($107 million), highe
r
investment related spend ($97 million) largely across banking and wealth platforms, scheme investments and enhancements to
the Group’s technology infrastructure. In addition, regulatory and compliance costs were up $69 million primarily due to
regulatory change investments. Productivity benefits of $319 million more than offset growth in operating costs.
Staff expenses increased $247 million or 10% compared to First Half 2018 including the impact from notable items (up $208
million). Excluding notable items, staff expenses were $39 million or 2% higher with the impact from annual salary increases,
higher investment spend and BTIM separation costs, partly offset by a 3% decrease in average FTE from productivity initiatives,
lower bonuses and the exit of the Hastings business.
Occupancy expenses increased $5 million or 1% compared to First Half 2018, primarily due to annual rental increases and costs
associated with branch and ATM rationalisation. This was partly offset by benefits from the reduction in branch numbers (down
58) and lower operating lease depreciation costs.
2019 Interim financial results
Review of Group operations
% Mov’t% Mov’t
Half YearHalf YearHalf YearMar 19 -Mar 19 -
$
mMarch 19Sept 18March 18Sept 18Mar 18
Staff expenses(2,645)
(2,489)(2,398)
610
Occupancy expenses
(526)
(512)(521)
31
Technolo
gy expenses(1,139)
(1,068)(1,042)
79
Other expenses
(781)
(842)(694)(7)
1
3
Total operating expenses
(5,091)(4,911)(4,655)49
Refer to Section 4 Note 5 for reported results breakdown.
The Group has adopted AASB 9 Financial Instruments and AASB 15 Revenue from Contracts with Customers from 1 October 2018. Statutor
y
comparatives have not been restated. Refer to Note 1 in Section 4 for further detail. In addition, during First Half 2019, the Group has made a number
of presentational changes to the Balance Sheet and Income Statement. Both statutory and cash earnings comparatives have been restated. Refer to
Note 1 in Section 4 for further detail.
24 | Westpac Group 2019 Interim Financial Results Announcement
1,2
1
2

Technology expenses increased $97 million or 9%. Excluding notable items (up $20 million), technology expenses increased
$77 million or 7% largely from the impact of the Group’s investment programs. Higher amortisation of software assets (up $17
million) and an increase in technology services costs ($52 million) was largely driven from investments including cyber security,
key platform programs and enhancement to the Group’s technology infrastructure. In addition, the adoption of AASB 15
contributed $16 million to technology expenses growth.
Other expenses increased $87 million or 13%, with notable items contributing $46 million. Excluding these items, othe
r
expenses increased $41 million or 6% from adoption of AASB 15 and higher marketing and Group insurance costs, partly offset
by a decrease in non-lending losses, impact from the exit of the Hastings business, and lower amortisation of intangible assets.
2019 Interim financial results
Review of Group operations
Westpac Group 2019 Interim Financial Results Announcement | 25

Full Time Equivalent (FTE) employees
First Half 2019 – Second Half 2018
FTE decreased 788 or 2% in the half from delivery of productivity initiatives across the Group, including organisation
simplification and channel optimisation.
First Half 2019 – First Half 2018
FTE decreased 1,479 compared to First Half 2018. Delivery of productivity initiatives across the year, more than offset additional
resources required for regulatory and compliance related activities.
Investment spend
The Group invested $723 million in First Half 2019, of which 55% was spent on growth and productivity initiatives, 27% on
regulatory change and 18% on other technology programs.
The lower investment spend in First Half 2019 compared to Second Half 2018 was principally due to the completion of some
transformation and productivity initiatives. Other technology costs were higher associated with enhancing system stability. Of the
$723 million investment in First Half 2019, 46% was expensed while 54% was capitalised.
Over the prior corresponding period investment spend was 10% higher due to increasing investment in regulatory change and
other technology.
Across the major investment categories the following progress was achieved in First Half 2019:
Growth and productivity
xPlatform modernisation
-Customer Service Hub (CSH) is our major program seeking to implement a one bank, multi-brand operating system
creating a better experience for both customers and bankers. Launch for Westpac mortgages has commenced, with
remaining retail and regional brands to launch in late 2019 and broker applications will commence in 2020;
-Real time payments on the New Payment Platform (NPP) were enabled nationally for 3.6 million consumer accounts.
Eligible customers can create a ‘PayID’ using their mobile number, enabling them to receive payments without having to
remember account numbers. Over 16 million Osko payments have been successfully processed with a value of $12
billion. Rollout has commenced for Business and Institutional, with St.George expected to commence in Second Hal
f
2019;
2019 Interim financial results
Review of Group operations
As atAs atAs at% Mov’t% Mov’t
31 March30 Sept31 MarchMar 19 -Mar 19 -
Number of FTE
201920182018Sept 18Mar 18
Permanent employees
31,00731,67232,033
(2)
(3)
Temporary employees
3,2343,3573,687
(4)
(12)
FTE
34,24135,02935,720
(2)
(4)
% Mov’t% Mov’t
Half YearHalf YearHalf YearMar 19 -Mar 19 -
$m
March 19Sept 18 March 18Sept 18Mar 18
Ex
pensed
331312271622
Ca
pitalised software and fixed assets
392494387(21)1
Total
723806658(10)10
Growth and
productivity
401479411(16)(2)
Re
gulatory change
195214163(9)20
Other technology
127113841251
Total
723806658(10)10
Comparatives have been restated.
26 | Westpac Group 2019 Interim Financial Results Announcement
1
1
1

-Launched Credit Connect, WIB’s new global system for origination and reporting on customers’ credit exposures. It
integrates into Westpac’s other technology platforms, improving reliability, scalability and functionality;
-Real time customer insights introduced to St.George, enabling analytic teams to understand customer activity real time
across devices; and
-Additional Panorama capabilities were delivered, including BT Invest where customers can choose from a simplified
selection of managed funds, managed portfolios, term deposits and shares. BT Super Invest allows customers to invest
super themselves beyond traditional investment options online. BT SMSF service facilitates the setup of SMSF, bank
account and investment platform. Real-time electronic ID verification for new customers significantly decreases the time
to open an account.
xDigitising the company
- Launched a range of new features for customers to make banking easier, including credit card limit reduction functionality,
straight through processing of term deposit roll overs, online invoice solution provides customers with a free service to
create, preview and send invoices to their customers. Deposit rate finder provides an interest rate taking into account a
customer’s total deposits and relationship with the bank and introducing least-cost routing for merchant customers;
- Launch of Google Pay for St.George, a mobile wallet solution that allows credit card customers to make secure, contactless
payments from their Android device and load eligible credit, debit, loyalty and gift cards to their wallet; and
- 2.4 million Westpac customers now have access to Westpac’s live chat virtual assistant with 130,000 customers having
used the feature resolving 78% of enquiries.
xReducing complexity
- 8.8 million customers have access to Digital mailbox allowing them to receive letters and bank correspondence
electronically, saving paper on 911,000 customer letters.
Regulatory change
Major developments over the half included:
xDelivered a number of regulatory and industry requirements including the transition to AASB 9, transitioned under the new
external disputes resolution scheme the Australian Financial Complaints Authority, enhanced whistleblower protections,
completed a number of BT regulatory reporting enhancements and publication of the Future of Customers Underlying Supe
r
(FOCUS) transition plan to adopt the Insurance in Superannuation Code of Practice; and
xContinued the update of systems and processes to comply with conveyancing industry changes further broadening electronic
land title lodgement usage, delivered changes to remove car finance flex commissions, and continued to progress Open
Banking.
Other technology
Major initiatives under this category included further upgrades to the Group’s infrastructure, migration of further applications onto
cloud technologies, reducing cyber risks and enhancements to workplace technologies that support more flexible working.
2019 Interim financial results
Review of Group operations
Westpac Group 2019 Interim Financial Results Announcement | 27

Capitalised software
Capitalised software increased 3% over the half and 12% compared to First Half 2018. This in part reflects a higher proportion
of investment spend on larger infrastructure programs (CSH, NPP, Panorama) which have a longer assessed life. At the same
time, a number of projects remain in development and amortisation has yet to fully commence.
Software amortisation was $1 million higher compared to Second Half 2018 and $17 million (6%) higher than First Half 2018.
As part of the Group’s regular asset review, $16 million of capitalised software was written off in First Half 2019. In aggregate,
the average amortisation of our capitalised software assets was 3.4 years.
2019 Interim financial results
Review of Group operations
% Mov’t% Mov’t
Half YearHalf YearHalf YearMar 19 -Mar 19 -
$m
March 19Sept 18March 18Sept 18Mar 18
O
pening balance
2,1772,0051,916914
Total additions
395493389(20)2
Amortisation expense
(318)(317)(301)-6
Impairment expense
(16)-(2)-large
Foreign exchange translation
6(4)3large100
Closin
g balance
2,2442,1772,005312
Includes capitalised borrowing costs.
28 | Westpac Group 2019 Interim Financial Results Announcement
1
1

2.2.9Impairment charges
Asset quality remained sound through First Half 2019 with stressed exposures to total committed exposures (TCE) increasing by
2 basis points to 1.10%. The increase in stressed exposures was due to higher impaired and higher 90+ days but not impaired
facilities partially offset by a decline in watchlist and substandard exposures. Emerging stress is mostly due to an increase in
mortgage and unsecured delinquencies due to both the softening of economic activity and, for unsecured delinquencies, normal
seasonal increases.
Given little change in asset quality, impairment charges have remained low at $333 million in First Half 2019, equal to 9 basis
points of gross loans.
First Half 2019 – Second Half 2018
Impairment charges for First Half 2019 were $333 million, up $16 million compared to Second Half 2018. The increase was
mostly due to higher total new CAPs from higher provisions linked to an increase in consumer delinquencies. These were
partially offset by lower provisions from lower new stress in the Business Bank and a reduction in the centrally held overlays.
Key movements included:
xTotal IAPs, write-backs and recoveries were $13 million lower than Second Half 2018 principally due to:
- New IAPs were $25 million lower compared to Second Half 2018 mostly from a lower level of new impaired exposures in
Business Bank and New Zealand. These declines were partially offset by one facility greater than $50 million (in WIB) that
migrated to impaired in the half from watchlist and substandard; and
- Write-backs and recoveries were $12 million lower over the half principally from lower recoveries in the Australian
unsecured portfolio and the New Zealand business portfolio. Write-backs were marginally lower.
xTotal new CAPs were $29 million higher than Second Half 2018. Key movements included:
- Benefits from other changes in CAPs were $39 million lower:
oThe overlay provision was $38 million lower as provisions were utilised or no longer required for the manufacturing and
mining segments. The overlay for agriculture in Australia was increased due to persistent drought conditions in much o
f
the country; and
oLower new stress in the Business Bank; partly offset by
oAn increase in provision charges for the Australian mortgage portfolio related to increases in 90+ day delinquencies.
- Write-offs were $10 million lower in First Half 2019, consistent with normal seasonal patterns in unsecured personal
lending. This was partly offset by higher write-offs in the auto finance portfolio as operational issues in Second Half 2018
were partially resolved through First Half 2019.
2019 Interim financial results
Review of Group operations
% Mov’t% Mov’t
Half Year Half Year Half YearMar 19 -Mar 19 -
$m
March 19Sept 18 March 18Sept 18Mar 18
Individually assessed provisions (IAPs)
New IAPs(173)(198)(173)(13)-
Write-backs
798367(5)18
Recoveries
7179100(10)(29)
Total IAPS, writebacks and recoveries
(23)(36)(6)(36)large
Collectively assessed provisions (CAPs)
Write-offs(418)(428)(430)(2)(3)
Other changes in CAPs
10814743(27)151
Total new CAPs
(310)(281)(387)10(20)
Impairment charges
(333)(317)(393)5(15)
The Group has adopted AASB 9 Financial Instruments and AASB 15 Revenue from Contracts with Customers from 1 October 2018. Statutory
comparatives have not been restated. Refer to Note 1 in Section 4 for further detail. In addition, during First Half 2019, the Group has made a number
of presentational changes to the Balance Sheet and Income Statement. Both statutory and cash earnings comparatives have been restated. Refer to
Note 1 in Section 4 for further detail
.
Westpac Group 2019 Interim Financial Results Announcement |29
1
1

First Half 2019 – First Half 2018
Impairment charges of $333 million were down $60 million when compared to First Half 2018.
Key movements included:
xTotal new IAPs, write-backs and recoveries were $17 million higher than First Half 2018. This was due to lower recoveries
partially offset by higher write-backs. The reduction in recoveries was primarily due to the Australian unsecured portfolios;
and
xTotal new CAPs were $77 million lower due to a $65 million reduction from other changes in CAPs and a $12 million
reduction in write-offs principally in unsecured lending. Within other changes in CAPs, the overlay was reduced $38 million in
First Half 2019 compared to a $12 million increase in First Half 2018.
2.2.10 Income tax expense
First Half 2019 – Second Half 2018
The effective tax rate of 30.3% in First Half 2019 is lower than the 31.5% recorded in Second Half 2018. The higher effective tax
rate in Second Half 2018 reflects the non-deductibility of certain expenses including penalties and the write-off of the Hastings
goodwill associated with the exit of that business in Second Half 2018.
First Half 2019 – First Half 2018
The effective tax rate of 30.3% in First Half 2019 is slightly lower than the First Half 2018 effective tax rate of 30.4%. The
effective tax rate is above the Australian corporate tax rate of 30% and reflects several Tier 1 Instruments whose distributions
are not deductible for Australian taxation purposes.
2.2.11 Non-controlling interests
Non-controlling interests represent results of non-wholly owned subsidiaries attributable to shareholders other than Westpac.
These include profits attributable to the 10.1% shareholding in Westpac Bank-PNG-Limited and the 25% shareholding in
St.George Motor Finance Limited that are not owned by Westpac.
2019 Interim financial results
Review of Group operations
30 | Westpac Group 2019 Interim Financial Results Announcement

2.3Credit quality
Credit quality remained sound over First Half 2019 with total stressed exposures to TCE increasing modestly and remaining low
relative to historical experience. Stressed exposures to TCE were 1.10%, 2 basis points higher than Second Half 2018 and 1
basis point higher compared to First Half 2018 (see 2.3.1 Credit quality key metrics).
The 2 basis points rise in stressed exposures relates to increases in both 90 days past due and not impaired (4 basis points)
and to impaired exposures (3 basis points) partially offset by a reduction in watchlist and substandard (5 basis points) facilities.
The increase in 90 day past due and not impaired was due mainly to an increase in mortgage 90+ day delinquencies. The
reduction in watchlist and substandard was primarily due to the downgrade to impaired of one exposure greater than $50 million
and the repayment of another exposure. The increase in impaired exposures saw the ratio of gross impaired exposures to gross
loans 4 basis points higher at 0.24% compared to Second Half 2018.
Provisioning levels increased $989 million following the introduction of AASB 9 on 1 October 2018 at $4,042 million. Over First
Half 2019, total provisions were $47 million lower ending the period at $3,995 million. At 31 March 2019, the ratio of gross
impaired asset provisions to gross impaired exposures was 45.7% while the ratio of collectively assessed provisions to credit
risk weighted assets increased to 98 basis points with the rise due to the introduction of AASB 9.
Portfolio segments
The institutional segment continued to perform well – with only one new large (greater than $50 million) facility downgraded to
impaired during First Half 2019. It has been two years since a facility of this size has migrated to impaired. This facility is within
the retail segment and was downgraded from the watchlist and substandard category.
There has been no significant deterioration in credit quality across other industry segments over the half, as most movements in
stressed exposures by industry related to movements in one or two facilities. The quality of the commercial property sector has
continued to improve as a result of decisions to tighten the standards on new lending over recent years. At 31 March 2019 the
level of stressed exposures to TCE was 1.5% and remains well below long term averages with stress decreasing modestly
(down from 1.7%) over the half.
The small and medium business portfolio has also continued to perform well. In First Half 2019 the Group has seen overall
stress reduce. Within stress, a number of small companies have been downgraded leading to a small rise in the proportion o
f
impaired exposures and 90 days past due not impaired exposures.
The New Zealand business portfolio continues to perform well with stable stressed exposures ratios over First Half 2019.
However, there has been a small increase in stressed facilities in the dairy portfolio reflecting the challenges smaller scale
customers have in deleveraging.
Australian mortgage 90+ day delinquencies are 0.82%, 10 basis points higher over the half. The main drivers of the increase in
mortgage delinquencies have been the deterioration in the operating environment, with weak growth and low consumer income
growth, and falling house prices (particularly in Sydney and Melbourne). Over the last six months there has been an increase in
customers utilising hardship while slower market turnover has contributed to accounts remaining delinquent for longer periods as
properties become more difficult to sell. Lower new mortgage growth and the compositional shift towards principal and interest
mortgages (which have higher inherent delinquencies than interest only lending) has also contributed to higher delinquencies.
The rise in delinquencies has been highest in WA and Qld although delinquencies in NSW and Vic have risen from a low base.
While NSW and Vic delinquencies remain below the portfolio average, as these states account for a large portion of the Group’s
portfolio, they had the largest impact on overall delinquencies.
Australian properties in possession increased over the half by 86 to 482 at 31 March 2019 due principally to those states and
regions impacted by the slowing of the mining investment cycle. The rise also reflects that with slow market turnover it can take
longer for properties in possession to be sold.
Realised mortgage losses were $52 million for First Half 2019, equivalent to 2 basis points. This compares to $42 million in
Second Half 2018 and $47 million in First Half 2018.
Consumer unsecured delinquencies were also higher over First Half 2019. Total Australian other consumer 90+ day
delinquencies were 1.87%, up 14 basis points since Second Half 2018 and were 16 basis points higher compared to First Hal
f
2018. Around 11 basis points of the increase compared to First Half 2018 was due to portfolio run off, particularly in the Auto
portfolio. The increase over the half was due to both seasonal trends and portfolio run off.
New Zealand mortgage 90+ day delinquencies increased 3 basis points to 0.14% from Second Half 2018 and were 2 basis
points lower than First Half 2018. While delinquencies were higher, they remain at or near historical lows and reflect the more
favourable economic conditions in New Zealand and prior macro-prudential rules that limited the amount of high loan to value
ratio (>80%) lending.
2019 Interim financial results
Review of Group operations
Westpac Group 2019 Interim Financial Results Announcement | 31

New Zealand unsecured delinquencies were also higher at 1.02% and have also increased due to portfolio run off. Other
consumer 90+ day delinquencies increased 40 basis points since Second Half 2018 and were 16 basis points higher than First
Half 2018.
Provisioning
Provisioning levels increased $989 million following the introduction of AASB 9 on 1 October 2018 to $4,042 million. Over the
period provisions were $47 million lower to $3,995 million with:
xCAPs were $58 million lower at $3,562 million compared to Second Half 2018 from lower centrally held overlays and lowe
r
provisions in both the Institutional and Business Banks from a reduction in stress. These declines were partially offset by
higher provisions for delinquencies in the Australian Mortgage portfolio. Within collectively assessed provisions, the overlay
reduced ($38 million) to $229 million at 31 March 2019.
xIAPs were $11 million higher at $433 million from the small rise in impaired exposures.
2.3.1 Credit quality key metrics
2019 Interim financial results
Review of Group operations
As atAs atAs at
31 March30 Sept 31 March
201920182018
Stressed exposures by credit grade as a % of TCE:
Impaired0.17%0.14%0.15%
90 days past due and not impaired
0.43%0.39%0.37%
Watchlist and substandard
0.50%0.55%0.57%
Total stressed exposures
1.10%1.08%1.09%
Gross impaired exposures to TCE for business and institutional:
Business Australia0.59%0.54%0.55%
Business New Zealand
0.41%0.50%0.74%
Institutional
0.05%0.02%0.04%
Mortgage 90+ day delinquencies:
Group0.75%0.67%0.65%
Australia0.82%0.72%0.69%
New Zealand
0.14%0.11%0.16%
Other consumer loans 90+ day delinquencies:
Group1.80%1.64%1.64%
Australia1.87%1.73%1.71%
New Zealand
1.02%0.62%0.86%
Other:
Gross impaired exposures to gross loans 0.24%0.20%0.22%
Gross impaired exposures provisions to gross impaired exposures
45.74%46.12%45.54%
Total loan provisions to gross loans
56bps43bps45bps
Collective assessed provisions to credit risk weighted assets
98bps73bps75bps
Total provisions to credit risk weighted assets
110bps84bps88bps
Loan impairment charges to average gross loans annualised
9bps10bps13bps
Net write-offs to average gross loans annualised
12bps14bps13bps
Comparatives have been restated.
The Group has adopted AASB 9 Financial Instruments and AASB 15 Revenue from Contracts with Customers from 1 October 2018. Statutory
comparatives have not been restated. Refer to Note 1 in Section 4 for further detail. In addition, during First Half 2019, the Group has made a number
of presentational changes to the Balance Sheet and Income Statement. Both statutory and cash earnings comparatives have been restated. Refer to
Note 1 in Section 4 for further detail.
Averages are based on a six month period.
32 | Westpac Group 2019 Interim Financial Results Announcement
1
2
2
2
3
3
1
2
3

2.3.2Movement in gross impaired exposures
2019 Interim financial results
Review of Group operations
As atAs atAs at% Mov’t% Mov’t
31 March30 Sept31 MarchMar 19 -Mar 19 -
$m
201920182018Sept 18Mar 18
Opening balance
1,4161,5351,542(8)(8)
New and increased - individually managed
5194504711510
Write-offs
(499)(593)(534)(16)(7)
Returned to performing or repaid
(378)(393)(387)(4)(2)
Portfolio managed - new/increased/returned/repaid
7014134427059
Exchange rate and other adjustments
(10)41largelarge
Balance as at period end
1,7491,4161,5352414
Westpac Group 2019 Interim Financial Results Announcement | 33

2.4Balance sheet and funding
2.4.1Balance sheet
First Half 2019 – Second Half 2018
Key movements during the half included:
Assets
xCash and balances with central banks decreased $7.3 billion or 27% reflecting lower liquid assets held in this form;
xCollateral paid increased $1.3 billion or 27% mainly due to an increase in collateralised derivative liabilities;
xTrading securities and financial assets measured at FVIS, available-for-sale securities and investment securities increased
$13.6 billion or 16% reflecting higher balances held in this form;
xDerivative assets decreased $2.3 billion or 10% mainly driven by movements in cross currency swaps and foreign currency
forward contracts, partly offset by an increase in interest rate swaps; and
xLoans grew $4.6 billion or 1%. Refer to Section 2.2.2 Loans for further information.
2019 Interim financial results
Review of Group operations
As atAs atAs atAs at
31 March31 March30 Sept31 March% Mov’t% Mov’t
2019201920182018Mar 19 -Mar 19 -
$m
US$A$A$A$Sept 18Mar 18
Assets
Cash and balances with central banks13,84319,48626,78821,932(27)(11)
Collateral paid
4,3366,1034,7873,8352759
Trading securities and financial assets measured at fair
value through income statement (FVIS), available-for-sale
securities and investment securities69,50897,84384,25186,4501613
Derivative financial instruments
15,46221,76524,10126,904(10)(19)
Loans
507,437714,297709,690701,39312
Life insurance assets
6,6599,3749,45010,481(1)(11)
Other assets
15,76522,19420,52520,86086
Total assets
633,010891,062879,592871,85512
Liabilities
Collateral received1,3421,8892,1843,331(14)(43)
Deposits and other borrowings
394,277555,007559,285547,736(1)1
Other financial liabilities
20,61129,01328,10529,7503(2)
Derivative financial instruments
16,61223,38424,40724,066(4)(3)
Debt issues
134,094188,759172,596174,13898
Life insurance liabilities
5,3307,5037,5978,763(1)(14)
Loan capital
11,88916,73617,26518,333(3)(9)
Other liabilities
3,4364,8363,5803,0733557
Total liabilities
587,591827,127815,019809,19012
Equity
Total equity attributable to owners of Westpac
Banking Corporation45,38363,88464,52162,615(1)2
Non-controlling interests
36515250(2)2
Total equity
45,41963,93564,57362,665(1)2
As atAs atAs atAs at
31-Mar31 March30 Sept31 March% Mov’t% Mov’t
2019201920182018Mar 19 -Mar 19 -
$m
US$A$A$A$Sept 18Mar 18
Average balances
Total assets630,234887,154881,024865,55312
Loans and other receivables
494,518696,112688,947673,41313
Total equity
45,03963,40063,02661,06514
The Group has adopted AASB 9 Financial Instruments and AASB 15 Revenue from Contracts with Customers from 1 October 2018. Statutory
comparatives have not been restated. Refer to Note 1 in Section 4 for further detail. In addition, during First Half 2019, the Group has made a number
of presentational changes to the Balance Sheet and Income Statement. Both statutory and cash earnings comparatives have been restated. Refer to
Note 1 in Section 4 for further detail
.
34 | Westpac Group 2019 Interim Financial Results Announcement
1
1

Liabilities
xDeposits and other borrowings decreased $4.3 billion or 1%. Refer to Section 2.2.3 Deposits and other borrowings for furthe
r
information;
xOther financial liabilities increased $0.9 billion or 3% mainly driven by securities sold under agreements to repurchase;
xDerivative liabilities decreased $1.0 billion or 4% driven by movements in foreign currency forward contracts, partly offset by
increases in cross currency swaps and interest rate swaps;
xDebt issues increased $16.2 billion or 9% ($14.6 billion or 8% increase excluding foreign currency impacts). Refer to
Section 2.4.2 Funding and liquidity risk management for further information; and
xLoan capital decreased $0.5 billion or 3% mainly due to redemption of $1.0 billion Tier 2 capital instruments, partly offset by
hedging and foreign currency translation impacts of $0.4 billion.
Equity attributable to owners of Westpac Banking Corporation decreased $0.6 billion or 1% reflecting $0.7 billion opening
retained earnings adjustment due to the adoption of new accounting standards, dividends paid during the period, partly offset by
retained profits and shares issued under the final dividend reinvestment plan (DRP).
First Half 2019 – First Half 2018
Key movements included:
Assets
xCash and balances with central banks decreased $2.4 billion or 11% reflecting lower liquid assets held in this form;
xCollateral paid increased $2.3 billion or 59% mainly due to an increase in collateralised derivative liabilities;
xTrading securities and financial assets measured at FVIS, available-for-sale securities and investment securities increased
$11.4 billion or 13% reflecting higher balances held in this form;
xDerivative assets decreased $5.1 billion or 19% mainly driven by movements in cross currency swaps and foreign currency
forward contracts, partly offset by an increase in interest rate swaps;
xLoans grew $12.9 billion or 2%. Refer to Section 2.2.2 Loans for further information; and
xLife insurance assets decreased $1.1 billion or 11% mainly due to the redemptions of investments in consolidated funds and
transferred to non-consolidated funds in Second Half 2018.
Liabilities
xCollateral received decreased $1.4 billion or 43% due to a decrease in collateralised derivative assets;
xDeposits and other borrowings increased $7.3 billion or 1%. Refer to Section 2.2.3 Deposits and other borrowings for furthe
r
information;
xOther financial liabilities decreased $0.7 billion or 2% mainly driven by securities sold under agreements to repurchase,
securities sold short and securities purchased not delivered, partly offset by an increase in interbank deposits;
xDerivative liabilities decreased $0.7 billion or 3% driven by movements in foreign currency forward contracts, partly offset by
increases in cross currency swaps and interest rate swaps;
xDebt issues increased $14.6 billion or 8% ($6.8 billion or 4% increase excluding foreign currency impacts). Refer to
Section 2.4.2 Funding and liquidity risk management for further information;
xLife insurance liabilities decreased $1.3 billion or 14% due to the redemptions of investments in consolidated funds and
transferred to non-consolidated funds in Second Half 2018; and
xLoan capital decreased $1.6 billion or 9% mainly due to redemption of $1.0 billion Tier 2 capital instruments and the
conversion of the remaining $0.6 billion Westpac Convertible Preference Shares into ordinary shares.
Equity attributable to owners of Westpac Banking Corporation increased $1.3 billion or 2% reflecting retained profits less
dividends paid during the period, shares issued under the 2018 interim DRP and 2018 final DRP, and the conversion of some
convertible preference shares to ordinary share capital, partly offset by $0.7 billion opening retained earnings adjustment due to
the adoption of new accounting standards.
2019 Interim financial results
Review of Group operations
Westpac Group 2019 Interim Financial Results Announcement | 35

2.4.2Funding and liquidity risk management
Liquidity risk is the risk that the Group will be unable to fund assets and meet obligations as they become due. This type of risk
is inherent for all banks through their role as intermediaries between depositors and borrowers. The Group has a liquidity risk
management framework which seeks to meet the objective of meeting cash flow obligations under a wide range of market
conditions, including name specific and market-wide stress scenarios, as well as meeting the regulatory requirements of the
LCR and NSFR .
In First Half 2019 the Group maintained an appropriate funding and liquidity profile. Key measures of balance sheet strength and
funding and liquidity metrics remained comfortably above regulatory minimums at 31 March 2019, including an LCR of 138%
and an NSFR of 113%.
LCR
The LCR requires banks to hold sufficient High Quality Liquid Assets (HQLA), as defined, to withstand 30 days under a
regulator-defined acute stress scenario. HQLA include cash, deposits with central banks, government securities and other high
quality securities that are repo-eligible with the Reserve Bank of Australia (RBA).
The Group holds a portfolio of HQLA which it manages within the Group’s risk appetite and in accordance with regulatory
requirements. As at 31 March 2019, this portfolio was $79.7 billion (30 September 2018: $76.5 billion).
In addition to its portfolio of HQLA, the Group also has access to the Committed Liquidity Facility (CLF) in order to meet the
requirements of the LCR. The RBA, jointly with APRA, makes the CLF available to ADIs due to the limited amount o
f
government debt in Australia. In order to have access to the CLF, ADIs must satisfy qualifying conditions and are required to pay
a fee of 15 basis points (0.15%) per annum to the RBA on the approved undrawn facility. APRA approved Westpac’s CLF
allocation of $54 billion for the 2019 calendar year (2018 calendar year: $57 billion).
The Group’s LCR as at 31 March 2019 was 138% (30 September 2018: 133%) and the average LCR for the quarter ended 31
March 2019 was 134% .
NSFR
The Group is required to maintain a NSFR, designed to encourage longer-term funding resilience, of at least 100%. The NSFR
came into effect for Australian ADIs on 1 January 2018. Westpac had a NSFR of 113% at 31 March 2019 (30 September 2018:
114%). The ratio has remained relatively stable since 30 September 2018 as an increase in loans was funded by an increase in
wholesale funding
.
Funding
The Group monitors the composition and stability of its funding so that it remains within the Group’s funding risk appetite. This
includes compliance with both the LCR and NSFR.
The Group’s funding composition was little changed over the half. While customer deposits as a proportion of total funding
decreased by 152 basis points to 61.6% (30 September 2018: 63.1%), this was partly offset by an increase in the proportion o
f
long term funding to total funding of 26 basis points to 15.9% (30 September 2018: 15.7%), as well as securitisation (up 22 basis
points to 1.1%). Equity to total funding remained relatively stable.
Short term wholesale funding as a proportion of total funding increased by 122 basis points to 13.7% (30 September 2018:
12.4%), including a 26 basis point increase in the amount of long term funding with less than one year residual maturity. As at 31
March 2019, the Group’s short term funding portfolio (including long term to short term scroll) of $113.5 billion had a weighted
average maturity of 157 days and was more than covered by the $151.6 billion of unencumbered repo-eligible liquid assets held
by the Group (including LCR liquid assets, private securities and repo-eligible self-originated AAA rated mortgage backed
securities).
The Group raised $21.7 billion of new long term wholesale funding in First Half 2019, positioning the Group ahead of Full Yea
r
2019 term funding needs. The majority of new issuance came in the form of senior unsecured and covered bond format, in core
currencies of AUD, USD and EUR. New term issuance also included $1.4 billion of Basel III compliant Additional Tier 1 capital
instruments.
During the half, the weighted average maturity (excluding securitisation) of new term issuance was 4.7 years, slightly shorte
r
compared to Full Year 2018 (6.5 years) and reflecting benchmark transactions with two to three year duration.
2019 Interim financial results
Review of Group operations
Refer to Glossary for definition.
Calculated as a sim
ple average of the daily observations over the 31 March 2019 quarter.
36 | Westpac Group 2019 Interim Financial Results Announcement
1
2
1
2

Liquidity coverage ratio
Net stable funding ratio
Funding by residual maturity
2019 Interim financial results
Review of Group operations
As atAs atAs at% Mov’t% Mov’t
31 March30 Sept31 MarchMar 19 -Mar 19 -
$
m201920182018Sept 18Mar 18
High Quality Liquid Assets (HQLA)79,70176,48271,952411
Committed Liquidity Facility (CLF)
54,00057,00057,000(5)(5)
Total LCR liquid assets
133,701133,482128,952-4
Cash outflows in a modelled 30-day APRA defined
stressed scenario
Customer deposits65,81970,34866,222(6)(1)
Wholesale funding
11,7419,5708,4112340
Other flows
19,48220,47621,405(5)(9)
Total
97,042100,39496,038(3)1
LCR
138%133%134%large351bps
As atAs atAs at% Mov’t% Mov’t
31 March30 Sept31 MarchMar 19 -Mar 19 -
$m201920182018Sept 18Mar 18
Available stable funding606,217601,184593,66912
Required stable funding
536,414529,463529,10011
Net stable funding ratio
113%114%112%(54bps)81bps
As at 31 March 2019As at 30 Sept 2018As at 31 March 2018
$mRatio %$mRatio %$mRatio %
Wholesale funding
Less than 6 months58,2447.053,6496.561,2457.6
6 to 12 months
22,8602.818,5372.316,9732.1
Long term to short term scroll
32,3753.929,8943.627,5223.4
Wholesale funding - residual maturity less
than 12 months113,47913.7102,08012.4105,74013.1
Securitisation
9,4721.17,5880.98,1861.0
Greater than 12 months
132,08915.9128,27615.7128,92116.0
Wholesale funding - residual maturity greater
than 12 months141,56117.0135,86416.6137,10717.0
Customer deposits
511,64361.6517,75163.1502,06362.1
Equity
64,3477.764,9787.963,2257.8
Total funding
831,030100.0820,673100.0808,135100.0
Deposits to net loans ratio
As at 31 March 2019As at 30 Sept 2018As at 31 March 2018
$mRatio %$mRatio %$mRatio %
Customer deposits511,643517,751502,063
Net loans
714,29771.6709,69073.0701,39371.6
Refer to Glossary for definition.
Other flows include credit and liquidity facilities, collateral outflows and inflows from customers.
Calculated on a spot basis.
Scroll represents wholesale funding with an original maturity greater than 12 months that now has a residual maturity less than 12 months.
Includes total share ca
pital, share based payments reserves and retained profits.
Westpac Group 2019 Interim Financial Results Announcement|37
1
1
2
3
4
5
1
1
2
3
4
5

Funding view of the balance sheet
2019 Interim financial results
Review of Group operations
Total liquidCustomerWholesaleCustomerMarket
$massetsdepositsfundingfranchiseinventoryTotal
As at 31 March 2019
Total assets151,588--679,71359,761891,062
Total liabilities
-(511,643)(255,040)-(60,444)(827,127)
Total equity
---(64,347)412(63,935)
Total
151,588(511,643)(255,040)615,366(271)-
Net loans
49,151--665,146-714,297
As at 30 Sept 2018
Total assets153,694--668,23757,661879,592
Total liabilities-(517,751)(237,944)-(59,324)(815,019)
Total equity---(64,978)405(64,573)
Total153,694(517,751)(237,944)603,259(1,258)-
Net loans
55,500--654,190-709,690
As at 31 March 2018
Total assets147,634--660,41763,804871,855
Total liabilities-(502,063)(242,847)-(64,280)(809,190)
Total equity
---(63,225)560(62,665)
Total147,634(502,063)(242,847)597,19284-
Net loans55,058--646,335-701,393
Refer to Glossary for definition.
Li
quid assets in net loans include internally securitised assets that are eligible for repurchase agreements with the RBA / RBNZ.
38 | Westpac Group 2019 Interim Financial Results Announcement
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2.5Capital and dividends
Capital management strategy
In light of APRA’s announcement on ‘unquestionably strong’ capital benchmarks on 19 July 2017, Westpac will seek to operate
with a CET1 capital ratio of at least 10.5% in March and September as measured under the existing capital framework. This also
takes into consideration:
xCurrent regulatory capital minimums and the capital conservation buffer (CCB), which together are the total CET1
requirement. In line with the above, the total CET1 requirement for Westpac is at least 8.0%, based upon an industry
minimum CET1 requirement of 4.5% plus a capital buffer of at least 3.5% applicable to domestic systemically important
banks (D-SIBs) ;
xStress testing to calibrate an appropriate buffer against a downturn; and
xQuarterly volatility of capital ratios due to the half yearly cycle of ordinary dividend payments.
Should the CET1 capital ratio fall below the total CET1 requirement, restrictions on the distribution of earnings will apply. This
includes restrictions on the amount of earnings that can be distributed through dividends, Additional Tier 1 capital distributions
and discretionary staff bonuses.
Westpac will revise its target capital level once APRA finalises its review of the capital adequacy framework.
Common Equity Tier 1 capital ratio movement for First Half 2019
Westpac’s CET1 capital ratio was 10.64% at 31 March 2019, up 1 basis point from 30 September 2018. This included First Hal
f
2019 NPAT of $3,173 million (76 basis points). NPAT for First Half 2019 was impacted by additional provisions for estimated
customer refunds, payments and associated costs ($896 million before tax), and provisions for costs associated with the reset o
f
the Wealth strategy ($190 million before tax). These remediation and restructuring costs are referred to as ‘notable items’.
Excluding these notable items, which reduced the CET1 ratio by 25 basis points , organic capital growth was 27 basis points.
2019 Interim financial results
Review of Group operations
As atAs atAs at% Mov’t% Mov’t
31 March30 Sept31 MarchMar 19 -Mar 19 -
201920182018Sept 18Mar 18
Level 2 Regulatory capital structure
Common equity Tier 1 capital after deductions ($m)44,68045,23943,639(1)2
Risk weighted assets (RWA) ($m)
419,819425,384415,744(1)1
Common equity Tier 1 capital ratio (CET1)
10.64%10.63%10.50%1bps14bps
Additional Tier 1 capital ratio
2.20%2.15%2.31%5bps(11bps)
Tier 1 capital ratio
12.84%12.78%12.81%6bps3bps
Tier 2 capital ratio
1.78%1.96%2.02%(18bps)(24bps)
Total regulatory capital ratio
14.62%14.74%14.83%(12bps)(21bps)
APRA leverage ratio5.72%5.84%5.75%(12bps)(3bps)
Level 1 Common equity Tier 1 capital ratio (CET1)
10.72%10.50%10.40%22bps32bps
Refer Glossary for definition.
Noting that APRA may apply higher CET1 requirements for an individual ADI.
The im
pact of notable items on the CET1 ratio includes the capital deduction for the associated deferred tax assets.
Westpac Group 2019 Interim Financial Results Announcement | 39
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3
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The 27 basis point organic capital growth included:
xFirst Half 2019 NPAT, excluding notable items (93 basis point increase);
xThe 2018 final dividend payment, net of DRP share issuance (69 basis point decrease);
xOrdinary RWA (before FX movements and regulatory measurement changes) fell slightly (contributing to a 7 basis point
increase in CET1), mainly driven by reductions in non-credit RWA, with credit RWA slightly higher over the half; and
xA 4 basis point reduction from other movements, primarily driven by movements in regulatory expected loss in excess o
f
eligible provisions (2 basis point decrease).
Other items reduced the CET1 capital ratio by 26 basis points. This was primarily driven by the remediation and restructuring
provisions included in notable items (25 basis point reduction).
Additional Tier 1 and Tier 2 capital movement for First Half 2019
During the half, Westpac:
xIssued $1.42 billion of Additional Tier 1 capital (Westpac Capital Notes 6), of which approximately $0.72 billion comprised
reinvestment by the holders of Westpac Capital Notes (net 17 basis points increase);
xRedeemed $0.66 billion of Additional Tier 1 capital (residual Westpac Capital Notes) (16 basis points decrease); and
xRedeemed $1.0 billion of Tier 2 capital instruments (24 basis points decrease).
Leverage ratio
The leverage ratio represents the amount of Tier 1 capital relative to exposure . At 31 March 2019, Westpac’s leverage ratio was
5.72%, down 12 basis points since 30 September 2018.
2019 Interim financial results
Review of Group operations
As defined under Attachment D of APS110: Capital Adequacy.
40 | Westpac Group 2019 Interim Financial Results Announcement
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Internationally comparable capital ratios
The APRA Basel III capital adequacy requirements are more conservative than those of the Basel Committee on Banking
Supervision (BCBS), leading to lower reported capital ratios when compared to international peers. APRA conducted a study in
July 2015 outlining its methodology for measuring international comparable capital ratios.
The table below calculates the Group’s reported capital ratios consistent with this methodology.
2019 Interim financial results
Review of Group operations
As atAs atAs at% Mov’t% Mov’t
31 March30 Sept31 MarchMar 19 -Mar 19 -
201920182018Sept 18Mar 18
Internationally comparable capital ratios
Common equity Tier 1 capital ratio16.17%16.14%16.13%3bps4bps
Tier 1 capital ratio
19.07%19.02%19.06%5bps1bps
Total regulatory capital ratio
21.25%21.50%21.68%(25bps)(43bps)
Leverage ratio
6.39%6.48%6.39%(9bps)-
Westpac Group 2019 Interim Financial Results Announcement | 41

Risk Weighted Assets (RWA)
Total RWA decreased $5.6 billion or 1.3% this half:
xCredit Risk RWA was little changed over the half, with key movements including:
-Adoption of AASB 9 reduced RWA by $3.9 billion. Under the changes, certain defaulted loans (mostly mortgages) now
carry higher accounting impairment provisions and therefore RWA reduced; and
-Regulatory modelling updates for corporates and bank exposures reduced RWA by $1.0 billion.
These were offset by:
-Portfolio growth, which increased RWA by $2.3 billion;
-Foreign currency translation impacts which increased RWA by $2.1 billion from the appreciation of the NZ$;
-Increase in mark-to-market related credit risk RWA of $0.5 billion; and
xNon-credit RWA decreased $5.6 billion or 8.9%. The main driver was a $5.9 billion reduction in interest rate risk in the
banking book driven by lower interest rate risk exposure and an increase in the embedded gain.
2019 Interim financial results
Review of Group operations
As atAs atAs at% Mov’t% Mov’t
31 March30 Sept31 MarchMar 19 -Mar 19 -
$
m201920182018Sept 18Mar 18
Corporate73,55169,58471,59063
Business lending
35,29435,41734,872-1
Sovereign
1,6531,6441,53618
Bank
7,0666,6066,253713
Residential mortgages
132,133132,734129,748-2
Australian credit cards
5,9106,3136,553(6)(10)
Other retail
13,08213,77714,056(5)(7)
Small business
16,09216,32916,017(1)-
Specialised lending: Property and project finance
54,83357,04357,239(4)(4)
Securitisation
5,5835,9185,869(6)(5)
Standardised
10,45510,77810,639(3)(2)
Mark-to-market related credit risk
7,1106,6067,01981
Credit risk
362,762362,749361,391--
Market risk
8,3386,7237,4062413
Operational risk
38,64139,11330,866(1)25
Interest rate risk in the banking book (IRRBB)
7,07612,98912,875(46)(45)
Other
3,0023,8103,206(21)(6)
Total
419,819425,384415,744(1)1
Corporate – typically includes exposure where the borrower has annual turnover greater than $50 million, and other business exposures not captured
under the definitions of either Business lending or Small Business.
Business lending – includes exposures not captured elsewhere where the borrower has annual turnover less than or equal to $50 million.
Sovereign – includes exposures to governments themselves and other non-commercial enterprises that are owned or controlled by them.
Bank – includes exposures to licensed banks and their owned or controlled subsidiaries, and overseas central banks.
Small business – program managed business lending exposures.
Specialised lending – property and project finance – includes exposures to entities created to finance and / or operates specific assets where, apar
t
from the income received from the assets being financed, the borrower has little or no independent capacity to repay from other activities or assets.
Securitisation – exposures reflect Westpac’s involvement in activities ranging from originator to investor and include the provision of securitisation
services for clients wishing to access capital markets.
Operational risk – the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events, including lega
l
risk but excluding strategic or reputational risk.
42 | Westpac Group 2019 Interim Financial Results Announcement
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2
3
4
5
6
7
8
1
2
3
4
5
6
7
8

Capital adequacy
2019 Interim financial results
Review of Group operations
As atAs atAs at
31 March30 Sept31 March
$
m201920182018
Tier 1 capital
Common equity Tier 1 capital
Paid up ordinary capital36,35136,05435,168
Treasury shares(571)(507)(506)
E
quity based remuneration1,5271,4411,414
Foreign currency translation reserve
(331)(379)(522)
Accumulated other com
prehensive income15(11)(14)
Non-controlling interests - other545550
Retained earnin
gs26,94927,88327,122
Less retained earnings in life and general insurance, funds management and
securitisation entities(1,289)(1,218)(1,238)
Deferred fees
234258254
Total common equity Tier 1 capital
62,93963,57661,728
Deductions from common equity Tier 1 capital
Goodwill (excluding funds management entities)(8,665)(8,644)(8,656)
Deferred tax assets(1,710)(1,169)(1,116)
Goodwill in life and general insurance, funds management and securitisation entities(941)(942)(1,032)
Capitalised expenditure(1,778)(1,838)(1,867)
Ca
pitalised software(1,881)(1,792)(1,628)
Investments in subsidiaries not consolidated for regulatory purposes(1,522)(1,567)(1,532)
Regulatory expected loss in excess of eligible provisions(1,148)(1,312)(1,192)
General reserve for credit losses adjustment-(356)(339)
Defined benefit superannuation fund surplus(66)(78)-
E
quity investments(482)(570)(680)
Regulatory adjustments to fair value positions(65)(68)(46)
Other Tier 1 deductions
(1)(1)(1)
Total deductions from common equity Tier 1 capital
(18,259)(18,337)(18,089)
Total common equity Tier 1 capital after deductions
44,68045,23943,639
Additional Tier 1 capital
Basel III complying instruments9,2169,1449,041
Basel III transitional instruments--566
Total Additional Tier 1 capital
9,2169,1449,607
Net Tier 1 regulatory capital
53,89654,38353,246
Tier 2 capital
Basel III complying instruments7,1438,0258,102
Basel III transitional instruments495486473
Eligible general reserve for credit loss
665455
Basel III transitional adjustment
---
Total Tier 2 capital
7,7048,5658,630
Deductions from Tier 2 capital
Investments in subsidiaries not consolidated for regulatory purposes(140)(140)(140)
Holdings of own and other financial institutions Tier 2 capital instruments(103)(93)(83)
Total deductions from Tier 2 capital
(243)(233)(223)
Net Tier 2 regulatory capital
7,4618,3328,407
Total regulatory capital
61,35762,71561,653
Risk weighted assets
419,819425,384415,744
Common equity Tier 1 capital ratio
10.64%10.63%10.50%
Additional Tier 1 capital ratio2.20%2.15%2.31%
Tier 1 capital ratio
12.84%12.78%12.81%
Tier 2 capital ratio1.78%1.96%2.02%
Total regulatory capital ratio
14.62%14.74%14.83%
Westpac Group 2019 Interim Financial Results Announcement | 43

Dividends
The Board has determined an interim fully franked dividend of 94 cents per share, to be paid on 24 June 2019, to shareholders
on the register at the record date of 17 May 2019 . The interim dividend represents a payout ratio of 102.00%. In addition to
being fully franked, the dividend will also carry NZ$0.07 in New Zealand imputation credits that may be used by New Zealand
tax residents.
The Board has determined to issue shares to satisfy the DRP for the interim 2019 dividend and to apply a 1.5% discount to the
market price used to determine the number of shares issued under the DRP. The market price used to determine the number o
f
shares issued under the DRP will be set over the 10 trading days commencing 22 May 2019. The discount to the DRP market
price has been applied to give the Group additional capital flexibility, including for regulatory changes to the measurement o
f
capital and risk weighted assets likely to be announced in Second Half 2019.
Capital deduction for regulatory expected credit loss
For capital adequacy purposes APRA requires the amount of regulatory expected credit losses in excess of eligible provisions to
be deducted from CET1 capital. The table below shows the calculation of this capital deduction.
2019 Interim financial results
Review of Group operations
% Mov’t% Mov’t
Half YearHalf YearHalf YearMar 19 -Mar 19 -
Ordinary dividend (cents per share)March 19Sept 18March 18Sept 18Mar 18
Interim (fully franked)94-94--
Final (fully franked)-94---
Total ordinary dividend949494--
Payout ratio (reported)102.00%82.77%76.07%largelarge
Adjusted franking credit balance ($m)1,2341,3571,279(9)(4)
Imputation credit (cents per share - NZ)7.07.07.0--
As atAs atAs at
31 March30 Sept31 March
$m
201920182018
Provisions associated with eligible portfolios
Total provisions for impairment charges (Section 4 Note 10)
3,997 3,053 3,165
plus general reserve for credit losses adjustment
-356 339
plus provisions associated with partial write-offs
94 101 82
less ineligible provisions(79)(80)(79)
Total eligible provisions4,012 3,430 3,507
Regulatory expected downturn loss5,160 4,742 4,699
Shortfall in eligible provisions compared to regulatory expected downturn loss1,148 1,312 1,192
Common equity Tier 1 capital deduction for regulatory expected downturn loss
in excess of eligible provisions(1,148)(1,312)(1,192)
Record date in New York is 16 May 2019.
Provisions associated with portfolios subject to the Basel standardised approach to credit risk are not eligible.
44 | Westpac Group 2019 Interim Financial Results Announcement
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2.6Sustainability performance
As one of Australia’s largest companies, Westpac Group plays a role in helping to create positive social, economic and
environmental impact, for the benefit of all. Our approach to sustainability is embedded within the Group’s business activities
and aligns with the priorities set out in the Group’s strategy. We are aligned with the Paris Climate Agreement and contribute to
the United Nations’ Sustainable Development Goals.
In a time of great scrutiny of the financial services sector, it is particularly important that we work in an open and transparent way
to contribute to building a strong banking system that delivers good outcomes for customers and the economy. Where mistakes
are identified we put it right and seek to remediate the situation.
The Royal Commission findings and our own assessments, including our Culture, Governance and Accountability self-
assessment have highlighted a range of areas for change. In response, a number of programs are underway, focused on:
xComplaints and customer care;
xNon-financial risks: culture, governance and accountability; and
xProduct design, performance and remediation.
The actions we are taking are aimed at building a stronger business, helping to restore trust in Australia’s oldest bank.
Review of Industry Associations
During the First Half 2019 a review of Westpac’s membership of Industry Associations is being conducted, in line with ou
r
Industry Associations principles, with a focus on climate change policy alignment. We have committed to publicly update
stakeholders on the outcomes of this process within six months of the 2018 Annual General Meeting.
It’s about all of us: 2018-2020 Sustainability Strategy
Westpac Group’s 2018-2020 Sustainability Strategy outlines the Group’s commitment to building a sustainable future. This
includes taking action in the areas where the Group can have the greatest impact and create sustainable, long-term value fo
r
customers, communities and the nation by:
xHelping people make better financial decisions;
xHelping people by being there when it matters most to them; and
xHelping people create a prosperous nation.
Underpinning these three priority areas is a commitment to fostering a culture of care and doing the right thing and continuing to
lead on the sustainability fundamentals – policies, action plans, frameworks and metrics reporting. We continue to progress on
our climate change, human rights and reconciliation action plans.
Westpac is committed to regular reporting to enable a comparison of performance over time. The table below summarises
progress against the goals set out in the Group’s sustainability strategy with a focus on activity in the past six months.
Performance against sustainability goals
2019 Interim financial results
Review of Group operations
Priority areasGoalsHalf Year 2019 update
Helping people make
better financial
decisions
Help more people
better understand
their financial
position, improving
their financial
confidence
x Continued to offer a range of products and services, including Westpac SmartPlan, an online
tool to help customers manage their credit card balance and pay down their debts more easily,
and Westpac Life, a flexible savings account that supports customers’ savings goals;
x Continued to help more customers better understand their financial position through regular
contact programs on product features and usage, with 63% of our Consumer Bank customers
contacted during First Half 2019;
x 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; and
x Delivered financial capability communications for different customer segments, including
850,000 young Australians via Universities and TAFE partnerships, 498,000 women through
Rub
y Connection and 1.8 million Australians aged 65+ via Starts at 60.
Westpac Group 2019 Interim Financial Results Announcement | 45

2019 Interim financial results
Review of Group operations
Priority areasGoalsHalf Year 2019 update
Helping people by
being there when it
matters most to them
Help people recover
from financial
hardship
x Helped customers experiencing financial hardship, issuing over 27,000 financial assistance
packages during First Half 2019.
Help people lift out
of a difficult time and
recover stronger
x Donated $150,000 to the Salvation Army and a further $100,000 to the Foundation for Rural &
Regional Renewal (FRRR) to support disaster recovery and programs to build local
community resilience;
x Provided 496 relief packages for customers impacted by natural disasters across Australia;
and
x Delivered a portable ‘Bank in a Box’ branch to Townsville to help those affected by floods.
Helping our most
vulnerable
customers
x Published the 2020 Customer Vulnerability Action Plan to articulate the Group’s principles for
engaging with customers experiencing vulnerability, including providing specific guidance,
help and support for customers experiencing domestic and family violence and financial
abuse;
x Launched a Priority Assist 1800 telephone line across our retail brands to support customers
experiencing domestic and family violence and financial abuse;
x Established an escalation team that provides dedicated specialist case management for
customers experiencing family violence or financial abuse;
x Launched a series of Life Moments campaigns to assist customers and their families going
through challenging circumstances such as ‘loss of a loved one’ or ‘divorce and separation’,
providing practical tools and resources to guide them; and
x Established a dedicated customer care team to support Indigenous Australians in remote
communities.
Helping people creating
a prosperous nation
Build the workforce
of the future
x Continued to provide learning and development offerings as part of our focus on the future of
work to assist employees to develop ‘skills for life’, including piloting a Skills Mapping Tool to
be used to target learning pathways.
Invest and back the
people and ideas
shaping Australia
x Awarded $4.2 million in educational scholarships to the next 101 Westpac Scholars, bringing
the cohort to 431 during First Half 2019;
x Westpac Foundation job creation grants to social enterprises helped to create 364 jobs for
vulnerable Australians;
x Supported the establishment of 174 businesses through our Many Rivers partnership. Since
its establishment the partnership has created jobs for 2,087 people, with 763 identifying as
Indigenous;
x Maintained a portfolio of direct investment in 8 early stage companies; and
x Current commitment to Reinventure is $150 million invested in three funds, supporting
Reinventure investment in 27 early stage companies.
Back the growth of
climate change
solutions
x Increased committed exposure to climate change solutions taking total committed exposure to
$10.1 billion, above our 2020 target of $10 billion;
x Facilitated $2.39 billion in climate change solutions progressing towards our 2020 target of $3
billion; and
x Analysed the transition risks to our Australian Business and Institutional lending under a 1.5-
degree climate scenario.
Back the gr
owth of
ho
using affordability
solutions
x Increased lending to the social and affordable housing sector to $1.48 billion.
Bring together
partners and
harness the Group’s
capacity to tackle
pressing social
issues that matter
most to the nation
x Supported development of the Principles for Responsible Banking under UNEP FI with 48
other banks. Public consultation is currently being undertaken on the draft Principles;
x Ran a circular economy design sprint with employees, suppliers and customers to explore
ideas to transition waste materials, including single-use plastics, out of the Westpac Group
supply chain; and
x In April 2019, joined an Expert Advisory Council through WEConnect International focusing on
best-in-class approaches to supply chain, supplier diversity and access to capital for women-
owned businesses.
Jobs created through the Westpac Foundation Social Scale-up grant and Many Rivers which are as at 31 December 2018.
Includes climate bond arrangement, issuance, and investment and the Green Tailored Deposit.
Australian Business and Institutional lending, excludes retail, sovereign, and bank exposures.
46 | Westpac Group 2019 Interim Financial Results Announcement
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2019 Interim financial results
Review of Group operations
Priority areasGoalsHalf Year 2019 update
A culture that is caring,
inclusive and innovative
A culture of doing
the right thing
xPrograms underway to rebuild trust, strengthen governance and deliver more consistent
customer outcomes, including:
-Culture, Governance and Accountability self-assessment action plan;
-Royal Commission response plan;
-Product design, performance and remediation;
-Remuneration and accountability; and
-Customer Care transformation.
xMaintained ongoing Navigate training to reinforce Our Compass - a framework which brings
together our vision, service promise, values and Code of Conduct - with smaller sessions
facilitated by team leaders to continue the conversation locally; and
xContinued to assess employee performance through the ‘Motivate’ framework – a behaviours-
first approach to people management.
Promote an inclusive
society, where our
workforce reflects
our customers, and
where more people
feel safe to speak up
xMaintained 50% Women in Leadership roles;
xRecruited 80 employees who identify as Aboriginal or Torres Strait Islander peoples;
xDelivered programs to support inclusive employment opportunities, including our Tailored
Talent neuro-diverse internship program, Equilibrium program supporting women to move from
different sectors into a senior banking opportunity, and the CareerTrackers Indigenous
internship program;
xListed on the Bloomberg Gender-Equality Index;
xWorkplace Gender Equality Agency (WGEA) Employer of Choice for Gender Equality; and
x73% of employees surveyed during First Half 2019 feel safe to speak up.
Increase channels
where customers
can provide
feedback
xEmbedded a Customer Outcome Committee to work through complex cases;
x62% complaints resolved within five days in First Half 2019 compared to 52% in First Half
2018;
xLaunched the “Spot it, Log it and Own it” internal campaign, promoting an improved culture of
complaints handling;
x97% of employees completed the “Why Complaints Matter” training; and
xCommenced customer round tables around Australia.
Continuing to lead on
the Sustainability
fundamentals
Employees
xImplemented the recommendations of the Sedgwick Review for employees effective from 1
October 2018, two years ahead of schedule;
xEmbedded a Group Consequence Management Framework which sets out the standards
expected of our employees and ensures greater consistency and transparency in the
management of employee conduct matters;
xAchieved total recordable injury frequency rate of (TRIFR) 2.91 and lost time injury frequency
rate (LTIFR) of 0.37; and
xPromoted wellbeing initiatives with focus on mental health, including increasing awareness
through mental health week promotion and development of tools and resources to support
employee wellbeing.
Human rights
xReleased 2018 UK Slavery and Human Trafficking Statement;
xPresented to the Financial Commission on Modern Slavery on Human Trafficking on the role of
the financial sector in addressing modern slavery; and
xInitiated preparation for the introduction of reporting to meet the requirements of the Australian
Modern Slavery Act.
Sustainability
lending and
investment
xLaunched the world’s first Green Tailored Deposit to be certified by internationally recognized
Climate Bonds Initiative (CBI).
Environment
xMaintained carbon neutrality through the Australian Government Carbon Neutral Program;
xOn track to achieve a 4% reduction in GHG emissions compared to Full Year 2018 and 16%
compared to Full Year 2016;
xGroup paper consumption on track to achieve a 5% reduction compared to Full Year 2018 and
on track to achieve a 40% reduction in Full Year 2020 since 2016;
xWater

consumption in all Australian workspaces on track for a 15% reduction by 2020,
consuming 192,694 kL in First Half 2019;
xAchieved 75% diversion of waste from landfill in Australian offices; and
xCommitted in April 2019 to source 100% of global electricity consumption through renewable
energy sources by 2025.
Responsible
sourcing
x$6.8 million sourced from diverse suppliers, including $2.1 million from Indigenous suppliers.
Community & social
impact
x8.9% of employees have accessed volunteering program as tracked by volunteering leave and
skilled volunteering participation during First Half 2019.
Environmental footprint data as at 31 December 2018.
Westpac Group 2019 Interim Financial Results Announcement | 47
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2.6.1Climate-related financial disclosures
The Group has long recognised that climate change is one of the most significant issues that will impact the long-term prosperity
of the economy and way of life. Westpac was the first Australian bank to recognise the importance of limiting global warming to
less than two degrees and that to do this, global emissions need to reach net zero in the second half of this century.
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), which the
Group has publicly committed to support. The Westpac Group’s performance against the recommendations of the TCFD is
summarised below.
Governance
The Board has approved Westpac’s climate change strategy and the Group’s Climate Change Position Statement and 2020
Action Plan (CCPS). Management of climate change at the Board level is cascaded to Group Executives.
The Sustainability Council’s membership comprises Group Executive – Customer & Corporate Relations and General Managers
from across the Group. The Council:
xHas explicit responsibility for managing our sustainability agenda including climate change;
xMeets at least quarterly and has climate change as a fixed agenda item;
xReports to the Board through twice-yearly updates; and
xHas oversight of committees established to oversee aspects of the Group’s CCPS, including the Climate Change Solutions
Committee, Climate Change Risk Committee and Environment Management Committee.
Strategy
The Group’s 2018-2020 Sustainability Strategy and CCPS describe Westpac’s climate change strategy. The strategy is
underpinned by principles which recognise that:
xA transition to a net zero economy is required;
xEconomic growth and emissions reductions are complementary goals;
xAddressing climate change creates financial opportunities;
xClimate-related risk is a financial risk; and
xTransparency and disclosure matters.
The CCPS identifies five focus areas where the Group is expected to direct its attention over the short, medium and long term:
xProvide finance to back climate change solutions;
xSupport businesses that manage their climate-related risks;
xHelp individual customers respond to climate change;
xImprove and disclose our climate change performance; and
xAdvocate for policies that stimulate investment in climate change solutions.
Westpac uses scenario analysis to guide its climate change strategy and to analyse the implications of climate-related factors to
its business. Outcomes against this strategy are communicated in detail on an annual basis.
2019 Interim financial results
Review of Group operations
48 | Westpac Group 2019 Interim Financial Results Announcement

Risk management and scenario analysis
Climate change-related risks are managed within the Group’s sustainability, and wider risk management framework. The Group
examines the policy, legal, technology and market changes related to climate change (‘transition risks’), and the financial
impacts of changes in climate patterns and extreme weather events (‘physical risks’).
Our CCPS outlines lending standards for the thermal coal mining and energy sectors. These lending parameters have been
included in our Group Risk Appetite Statement and, where appropriate, are applied at the portfolio, customer and transaction
level.
Scenario analysis – summary findings
In First Half 2019, the Group undertook further scenario analysis to assess the resilience of Westpac’s Australian Business and
Institutional lending to transition risks brought about by rapid decarbonisation of the Australian economy under 1.5 and updated
2-degree scenarios. A summary of findings is provided below:
x1.5 degrees scenario to 2030: Approximately 2.7% of our Australian Business and Institutional lending is exposed to sectors
that may experience higher risks in a transition to a 1.5-degree economy; and
x2.0 degrees scenario to 2030: Approximately 0.9% of our Australian Business and Institutional lending is exposed to sectors
that may experience higher risks in a transition to a 2.0-degree economy.
Further details on our scenario analysis will be provided in our full-year reporting and the findings considered as we update ou
r
CCPS in 2020.
Climate-related metrics and targets
2019 Interim financial results
Review of Group operations
MetricsPerformance
Support for climate solutions
xTotal committed exposure (TCE) to climate solutions
xFacilitation of climate solutions
x$10.1 billion versus 2020 target - $10 billion
x$2.39 billion versus 2020 target - $3 billion
Energy generation
xEmission intensity of power generation portfolio
xEnergy mix of electricity generation exposure (WIB
onl
y)
x0.28 (tCO e/MWh) versus 2020 target 0.30 (tCO e/MWh)
x71% renewable versus 29% non-renewables
Mining and coal exposure
xLending to all mining (TCE)
xLending to coal mining (TCE)
xThermal coal portfolio quality thresholds
x0.94% Group total committed exposure
x$0.8bn lending to coal mining (metallurgical and thermal)
xCoal quality
-Existing projects > 5,700 kCal/kg – Compliant
-New projects > 6,300 kCal/Kg - Compliant
Direct footprint
xTotal Scope 1, 2, & 3 emissions (tCO e)
xCarbon neutral operations
xCommitment to 100% renewable energy
x193,588 tCO e - an annual reduction of 4.4% towards 2020 target of 9% (2016
baseline)
xCarbon neutrality maintained
xCommitted in April 2019 to source 100% of global electricity consumption through
renewable ener
gy sources by 2025
Climate change portfolio resilience
xTransition risk - 1.5-degree scenario to 2030
xTransition risk - 2-degree scenario to 2030
xPhysical risk - 4-degree scenario to 2050
xApproximately 2.7% of total business lending exposed to sectors that may experience
higher risk in a transition to a 1.5-degree economy
xApproximately 0.9% of total business lending exposed to sectors that may experience
higher risk in a transition to a 2-degree economy
xApproximately 1.7% of Australian mortgage portfolio in postcodes which may be
ex
posed to higher physical risks at 4 degrees of warming
Australian Business and Institutional lending, excludes retail, sovereign, and bank exposures.
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-degrees disclosures incorporate multiple scenarios including the IRENA REMap, IEA SDS, IPCC (presented according to updated
methodolo
gy), and those described in Westpac’s Sustainability Performance Report, 2016 (p52).
As at 30 June 2018.
Westpac and St.George.
Westpac Group 2019 Interim Financial Results Announcement | 49
1
2
3
22
3
22
4
1
2
O
3
4

3.0Divisional results
Divisional results are presented on a management reporting basis.
Cash earnings policy
The accounting standard AASB 8 Operating Segments requires segment results to be presented on a basis that is consistent
with information provided internally to Westpac’s key decision makers. In assessing financial performance, including divisional
results, Westpac Group uses a measure of performance referred to as ‘cash earnings’. Cash earnings is viewed as a measure
of the level of profit that is generated by ongoing operations and is therefore considered in assessing distributions, including
dividends. Cash earnings is neither a measure of cash flow nor net profit determined on a cash accounting basis, as it includes
both cash and non-cash adjustments to statutory net profit.
Management believes this allows the Group to more effectively assess performance for the current period against prior periods
and to compare performance across business divisions and across peer companies.
To determine cash earnings, three categories of adjustments are made to reported results:
x Material items that key decision makers at the Westpac Group believe do not reflect the Group’s operating performance;
x Items that are not considered when dividends are recommended, such as the amortisation of intangibles, impact of Treasury
shares and economic hedging impacts; and
x Accounting reclassifications between individual line items that do not impact reported results.
Full Year 2018 Revisions
For Westpac, AASB 9 and AASB 15 were adopted on 1 October 2018 and as comparatives were not restated, line item
movements in our reported results are not directly comparable across periods. In order to provide the operational trends in
business, we have revised the 2018 cash earnings comparatives as if the standards applied on 1 October 2017, except fo
r
expected credit loss provisioning which is not feasible. These adjustments do not impact Full Year 2018 cash earnings but affect
individual line items. These adjustments are detailed in Section 5.6. These adjustments are comprised of:
x Line fees: The Group has reclassified line fees (mostly Business Bank) from non-interest income to net interest income to
more appropriately reflect the relationship with drawn lines of credit;
x Other fees and expenses: The Group has restated the classification of a number of fees and expenses. This has resulted in
the grossing up of net interest income, non-interest income, impairment charges and operating expenses;
x Card scheme: Support payments received from Mastercard and Visa have been reclassified to non-interest income and
related expenses have been reclassified to operating expenses;
x Merchant terminal costs: Some variable costs related to Westpac’s merchant terminal business have been reclassified
between non-interest income and operating expenses; and
x Interest carrying adjustment: Interest on performing loans (stage 1 and stage 2 loans) is now measured on the gross loan
value. Previously, interest on performing loans was recognised on the loan balance net of provisions. This adjustment
increases interest income and impairment charges.
The guidance provided in Australian Securities and Investments Commission (ASIC) Regulatory Guide 230 has been followed
when presenting this information
.
In presenting divisional results on a management reporting basis, internal charges and transfer pricing adjustments are included
in the performance of each division reflecting the management structure rather than the legal entity (these results cannot be
compared to results for individual legal entities). Where management reporting structures or accounting classifications have
changed, financial results for comparative periods have been revised and may differ from results previously reported.
2019 Interim financial results
Divisional results
50 | Westpac Group 2019 Interim Financial Results Announcement

Our internal transfer pricing frameworks facilitate risk transfer, profitability measurement, capital allocation and business unit
alignment, tailored to the jurisdictions in which we operate. Transfer pricing allows us to measure the relative contribution of ou
r
products and divisions to the Group’s net interest margin and other dimensions of performance. Key components of our transfer
pricing frameworks are funds transfer pricing for interest rate and liquidity risk, and allocation of basis and contingent liquidity
costs, including capital allocation
In First Half 2019, Westpac also restated for:
xrecent customer migration and accompanying impacts on divisional income statement and balance sheet; and
xrefinement in expense allocations.
The discussion of our divisional results and certain data in Sections 3 and 5 are presented on a cash earnings basis, unless
otherwise stated. Cash earnings are not directly comparable to statutory results presented in other parts of this Results
Announcement.
Notable items
The table below shows the impact of notable items on the divisions in First Half 2019 and Second Half 2018. Notable items are
discussed in Section 2.1 These items are discussed further in Note 14 of the 2019 Interim Financial Report.
2019 Interim financial results
Divisional results
First Half 2019
$
m
Consumer
Bank
Business
Bank
BT Financial
Group -
Remediatio
n
BT Financial
Group -
Wealth reset
Westpac
New
Zealan
d
Group
Businesse
sGroup
Net interest income(47)(161)(4)---(212)
Non-interest income-(13)(587)---
(600)
Operating expenses31(14)(101)(190)--
(274)
Profit before
impairment charges
and income tax
expense(16)(188)(692)(190)--
(1,086)
Impairment charges------
-
Tax and non-
controlling interests145720854--
333
Cash earnings(2)(131)(484)(136)--
(753)
Second Half 2018
$m
Consumer
Bank
Business
Bank
BT Financial
Group -
Remediation
BT Financial
Group -
Wealth reset
Westpac
New
Zealand
Group
Businesses
Group
Net interest income(99)---(2)(4)(105)
Non-interest income(6)-(146)-(11)-
(163)
Operating expenses
(39)(5)(55)-(3)(10)
(112)
Profit before
impairment charges
and income tax
expense(144)(5)(201)-(16)(14)
(380)
Impairment charges------
-
Tax and non-
controlling interests
34-60-41
99
Cash earnings(110)(5)(141)-(12)(13)
(281)
Westpac Group 2019 Interim Financial Results Announcement | 51

3.1Consumer 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 consume
r
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 works in an integrated way with Business Bank, BTFG and WIB in the sales
and service of certain financial services and products including wealth and foreign exchange. The revenue from these products
is mostly retained by the product originators.
2019 Interim financial results
Divisional results
% Mov’t% Mov’t
Half YearHalf YearHalf YearMar 19 -Mar 19 -
$mMarch 19Sept 18March 18Sept 18Mar 18
Net interest income3,882 3,760 4,089 3 (5)
Non-interest income359 392 370 (8)(3)
Net operating income before operating expenses
and impairment charges4,241 4,152 4,459 2 (5)
Operating expenses(1,821)(1,883)(1,766)(3)3
Profit before impairment charges and income tax expense2,420 2,269 2,693 7 (10)
Impairment charges(268)(236)(250)14 7
Operating profit before tax2,152 2,033 2,443 6 (12)
Tax and non-controlling interests(638)(620)(734)3 (13)
Cash earnings1,514 1,413 1,709 7 (11)
Cash earnings adjustments--(15)-(100)
Net profit after tax1,514 1,413 1,694 7 (11)
Cash earnings1,514 1,413 1,709 7 (11)
Add back notable items2 110 -(98)-
Cash earnings excluding notable items1,516 1,523 1,709 -(11)
Operating expenses to net operating income
ratio (cash earnings basis)42.94%45.35%39.61%(241bps)333bps
As atAs atAs at% Mov’t% Mov’t
31 March30 Sept31 MarchMar 19 -Mar 19 -
$bn201920182018Sept 18Mar 18
Deposits
Term deposits65.3 63.9 58.1 2 12
Other140.5 142.3 141.3 (1)(1)
Total deposits205.8 206.2 199.4 -3
Net loans
Mortgages375.4 373.0 366.0 1 3
Other13.2 13.3 13.6 (1)(3)
Provisions(1.5)(0.9)(0.9)67 67
Total net loans387.1 385.4 378.7 -2
Total assets394.5 392.5 386.0 1 2
The Group has adopted AASB 9 Financial Instruments and AASB 15 Revenue from Contracts with Customers from 1 October 2018. Statutory
comparatives have not been restated. Refer to Note 1 in Section 4 for further detail. However, where applicable, cash earnings comparatives
(excluding expected credit loss provisioning) have been restated to aid comparability. Refer to the Cash earnings policy in Section 3.0 for further
detail. In addition, during First Half 2019, the Group has made a number of presentational changes to the Balance Sheet and Income Statement.
Both statutor
y and cash earnings comparatives have been restated. Refer to Note 1 in Section 4 for further detail.
52 | Westpac Group 2019 Interim Financial Results Announcement
1
1

Financial performance
First Half 2019 - Second Half 2018
Cash earnings of $1,514 million were $101 million or 7% higher than Second Half 2018, as provisions for estimated custome
r
refunds, costs and payments (notable items) reduced by $108 million. Excluding notable items, cash earnings were flat (down
$7 million), as a rise in net interest income was offset by an increase in impairment charges.
2019 Interim financial results
Divisional results
Net interest
income up $122
million, 3%
xNet loans were up $1.7 billion with all the growth in mortgages which increased $2.4 billion, or 1%.
This increase was partly offset by lower personal lending. Given the low growth environment the
division has focused on returns over growth and this has contributed to mortgages growing less
than system at 0.5 times ;
xDeposits were little changed over the half, with a 2% increase in term deposits and a 1% rise in
transaction accounts (including offset accounts) offset by a reduction in online savings accounts;
and
xNet interest margin was 6 basis points higher as notable items were lower and deposit spreads
increased from repricing online deposits and term deposits. Benefit from the full period impact of
mortgage repricing (9 basis points), was mostly offset by competition, retention pricing, and mix
changes as customers switched to principal and interest loans from interest only lending (7 basis
points). Margins were also impacted (down 1 basis point) by regulatory changes to how credit card
interest is calculated (effective 1 January 2019).
Non-interest
income down $33
million, 8%
xLower foreign currency conversion fees;
xLower product related fees from a reduction in new mortgages and personal lending and a decline
in credit cards fee income; and
xThese declines were partially offset by lower notable items ($6 million).
Operating
expenses down
$62 million, 3%
xReversal of a $31 million notable item raised in Second Half 2018 as the settlement was not
approved by the Courts, contributed $62 million to the decline in expenses;
xStructural productivity gains of $47 million from further use of digital channels (self-serve and e-
statements), rationalisation of 37 branches and 329 ATMs and a 422 reduction in FTE; and
xThese declines were partly offset by annual salary reviews and inflation increases, the launch of a
new advertising campaign, higher investment related costs including for the customer service hub,
and costs associated with reducin
g the size of the branch and ATM network.
Impairment
charges up $32
million,14%
xCredit quality remains sound, with stressed exposures to TCE at 0.74%;
xMortgage 90+ day delinquencies remained low at 0.84% but were higher (up 10 basis points) as the
easing in economic conditions led to a small rise of customers in hardship and an increase in the
time taken to sell a property. This led to facilities remaining delinquent for longer periods. Other
consumer 90+ day delinquencies were up 16 basis points reflecting seasonal trends and from an
operational issue in collections; and
xImpairment charges were higher driven by the rise in consumer delinquencies. Under AASB 9,
changes in consumer delinquencies have a larger impact on provisions and hence impairment
charges.
Source: RBA, March 2019.
Westpac Group 2019 Interim Financial Results Announcement | 53
1
1

First Half 2019 - First Half 2018
Cash earnings were 11% lower from a 20 basis point decline in net interest margin, and increased expenses, from a rise in
regulatory and compliance costs and higher investment and technology related costs.
2019 Interim financial results
Divisional results
Net interest
income down
$207 million, 5%
xLending increased 2% with all the growth in mortgages, partly offset by a decline in other personal
lending. Mortgage growth was below system as the division prioritised return over growth. The
decline in personal lending was due to a 3% reduction in cards and lower personal loans;
xA 12% increase in term deposits, and a 3% rise in transaction accounts supported the 3% rise in
deposits; and
xNet interest margin was down 20 basis points. The decline was due to $47 million of notable items,
higher short term wholesale funding costs, and lower mortgage spreads from increased competition
and changes in mortgage mix with less interest only lending. The decline was partly offset by higher
deposit spreads.
Non-interest
income down $11
million, 3%
xThe decline was mostly due to lower foreign currency related fees; and
xLower product fee income from fee simplification (some reduction and standardisation of fees
across certain accounts) while some fees were also eliminated, and reduced transaction volumes.
Operating
expenses up $55
million, 3%
xMost of the increase was due to higher investment and technology related costs (up $18 million), an
increase in regulatory and compliance costs (up $12 million), costs related to closing branches and
removing ATMs $24 million, and the launch of a new advertising campaign;
xOther cost increases related to annual salary increases and inflationary rises were offset by:
-Reversal of a notable item raised in Second Half 2018 ($31 million); and
-Structural productivity benefits from increasing customer self-service, higher take-up of e-
statements and from optimising the network including the full period benefit of the 40 branches
closed in 2018
.
Impairment
charges up $18
million, 7%
xCredit quality remains sound, with stressed exposures to TCE at 0.74%;
xMortgage 90+ day delinquencies were up 12 basis points to 0.84% while other consumer 90+ day
delinquencies were up 5 basis points, partly from an operational issue in collections; and
xIm
pairment charges were higher driven by the rise in consumer delinquencies.
54 | Westpac Group 2019 Interim Financial Results Announcement

3.2Business 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 BTFG and WIB in the sales referral and service of certain 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.
2019 Interim financial results
Divisional results
% Mov’t% Mov’t
Half YearHalf YearHalf YearMar 19 -Mar 19 -
$mMarch 19Sept 18March 18Sept 18Mar 18
Net interest income
2,223 2,362 2,328 (6)(5)
Non-interest income
287 315 311 (9)(8)
Net operating income before operating expenses
and impairment charges
2,510 2,677 2,639 (6)(5)
Operating expenses
(988)(967)(948)2 4
Profit before impairment charges and income tax expense
1,522 1,710 1,691 (11)(10)
Impairment charges
(75)(164)(148)(54)(49)
Operating profit before tax
1,447 1,546 1,543 (6)(6)
Tax and non-controlling interests
(434)(466)(463)(7)(6)
Cash earnings
1,013 1,080 1,080 (6)(6)
Cash earnings adjustments
--(2)-(100)
Net profit after tax
1,013 1,080 1,078 (6)(6)
Cash earnings
1,013 1,080 1,080 (6)(6)
Add back notable items
131 5 -large-
Cash earnings excluding notable items
1,144 1,085 1,080 5 6
Operating expenses to net operating income
ratio (cash earnings basis)
39.36%36.12%35.92%324bps344bps
As atAs atAs at% Mov’t% Mov’t
31 March30 Sept31 MarchMar 19 -Mar 19 -
$bn201920182018Sept 18Mar 18
Deposits
Term deposits
45.9 46.8 45.0 (2)2
Other
63.2 63.9 63.1 (1)-
Total deposits
109.1 110.7 108.1 (1)1
Net loans
Mortgages
54.8 54.9 54.7 --
Business
89.8 90.5 89.3 (1)1
Other
8.0 8.3 8.6 (4)(7)
Provisions
(1.4)(1.1)(1.1)27 27
Total net loans
151.2 152.6 151.5 (1)-
Total assets
155.1 156.4 154.7 (1)-
The Group has adopted AASB 9 Financial Instruments and AASB 15 Revenue from Contracts with Customers from 1 October 2018. Statutory
comparatives have not been restated. Refer to Note 1 in Section 4 for further detail. However, where applicable, cash earnings comparatives
(excluding expected credit loss provisioning) have been restated to aid comparability. Refer to the Cash earnings policy in Section 3.0 for further
detail. In addition, during First Half 2019, the Group has made a number of presentational changes to the Balance Sheet and Income Statement.
Both statutor
y and cash earnings comparatives have been restated. Refer to Note 1 in Section 4 for further detail.
Westpac Group 2019 Interim Financial Results Announcement | 55
1
1

Financial performance
First Half 2019 - Second Half 2018
Cash earnings of $1,013 million was $67 million (or 6%) lower than Second Half 2018 with performance impacted by notable
items, which included an increase in provisions for estimated customer refunds, payments and associated costs ($126 million,
after tax). Excluding notable items, cash earnings were $59 million or 5% higher from disciplined margin management while solid
asset quality contributed to a 54% reduction in impairment charges.
First Half 2019 - First Half 2018
Cash earnings of $1,013 million was $67 million (or 6%) lower than First Half 2018 with performance impacted by notable items,
which included provisions for estimated customer refunds, payments and associated costs ($131 million after tax). Excluding
notable items, cash earnings were $64 million or 6% higher from disciplined margin management and a 49% reduction in
impairment charges.
2019 Interim financial results
Divisional results
Net interest income
down $139 million,
6%
xLoans were $1.4 billion lower (down 1%). New lending was down from reduced demand across
industries, and from the division’s continued focus on risk adjusted returns. Auto finance lending
was lower while mortgage lending was little changed, consistent with the slowdown in system
investment property lending;
xDeposits were 1% lower, consistent with the decline in loan demand. The fall was across at call and
term products; and
xNet interest margin was 15 basis points lower, due to notable items ($161 million) which reduced
margins by 22 basis points. Excluding notable items, margins were 7 basis points higher from the
re
pricing of mortgages and business lending and from improved deposit spreads.
Non-interest
income down $28
million, 9%
xDecrease was due to
-$13 million of notable items;
-Lower loan fees consistent with the decline in new lending; and
-A reduction in merchant income from lower scheme fees and interchange repricing.
Operating
expenses up $21
million, 2%
xHigher costs associated with notable items ($9 million); and
xIncreased regulatory and compliance spending, including costs associated with simplifying loan
documentation and changing Auto finance commission structures.
xOrdinary cost increases were largely offset by productivity including:
-FTE reducing 2% from organisational redesign, centralising banker support and creating
dedicated SME teams; and
-Introduction of a new banker toolkit which provides integrated diary management, compliance and
re
gulatory alerts, and improved access to customer information.
Impairment
charges down $89
million, 54%
xCredit quality was solid with stressed exposures to TCE declining 5 basis points to 2.74%;
xAuto delinquencies were higher, mostly due to the 4% decline in the portfolio; and
xImpairment charges were lower, mostly from a decrease in stressed commercial facilities and lower
individual
provisions, partially offset by higher Auto delinquencies.
Net interest income
down $105 million,
5%
xLending was flat, with growth in business lending more than offset by an 8% decline in Auto finance
lending. New lending slowed through the year as both property and SME demand eased;
xDeposits increased 1% supported by a 4% increase in transaction balances and a 2% rise in term
deposits; and
xNet interest margin declined 17 basis points, due to notable items ($161 million) reducing margins
by 22 basis points. Excluding this impact the net interest margin was up 5 basis points from loan
repricing and higher deposits spreads.
Non-interest
income down $24
million, 8%
xDecrease was mostly due to:
-$13 million of notable items; and
-Lower loan fees from a reduction in new lending.
Operating
expenses up $40
million, 4%
xNotable items increased expenses by $14 million;
xHigher investment, and regulatory and compliance costs; and
xIncreases from other costs were largely offset by productivity benefits including changing banking
support structures and introducing specialised teams to support SME customers.
Impairment
charges down $73
million, 49%
xThe level of stressed exposures to TCE increased 18 basis points to 2.74% from 2.56%. The
increase was driven by higher mortgage and Auto finance delinquencies. The rise in Auto
delinquencies was mostly due to an operational issue in collections and from the 8% decline in the
Auto portfolio; and
xImpairment charges were lower mostly from a decrease in stressed commercial facilities and lower
individual provisions, partially offset by higher auto delinquencies.
56 | Westpac Group 2019 Interim Financial Results Announcement

3.3BT Financial Group (Australia)
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 o
f
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 a third party 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 fo
r
Private Wealth and Insurance.
On 19 March 2019, the Group announced changes to the way it supports customers’ wealth and insurance needs, realigning its
major BTFG businesses into expanded Consumer and Business divisions and exiting the provision of personal financial advice.
Changes to the Group’s organisational structure were effective from 1 April 2019. Consequently this will be the last time BTFG
will be reported as a standalone division
.
2019 Interim financial results
Divisional results
% Mov’t% Mov’t
Half YearHalf YearHalf YearMar 19 -Mar 19 -
$mMarch 19Sept 18March 18Sept 18Mar 18
Net interest income297 302 294 (2)1
Non-interest income142 735 881 (81)(84)
Net operating income before operating expenses
and impairment charges439 1,037 1,175 (58)(63)
Operating expenses(872)(682)(590)28 48
(Loss) / profit before impairment charges and income tax expense
(433)355 585 large large
Impairment benefits / (charges)1 (4)(4) large large
Operating profit before tax
(432)351 581 large large
Tax and non-controlling interests127 (110)(175) large large
Cash earnings
(305)241 406 large large
Cash earnings adjustments(5)(73)-(93)-
Net (loss) / profit after tax(310)168 406 largelarge
Cash earnings(305)241 406 largelarge
Add back notable items
Wealth restructuring136 ----
Provisions for estimated customer refunds, payments and costs484 141 -large-
Cash earnings excluding notable items315 382 406 (18)(22)
Operating expenses to net operating income
ratio (cash earnings basis)198.63%65.77%50.21%largelarge
The following table show cash earnings excluding notable items of the business within BTFG.
% Mov’t% Mov’t
Half YearHalf YearHalf YearMar 19 -Mar 19 -
$mMarch 19Sept 18March 18Sept 18Mar 18
Funds Management business (excluding Advice)236 238 281 (1)(16)
Insurance87 149 133 (42)(35)
Capital and other21 22 18 (5)17
Advice(29)(27)(26)7 12
Total cash earnings excluding notable items315 382 406 (18)(22)
As atAs atAs at% Mov’t% Mov’t
31 March30 Sept31 MarchMar 19 -Mar 19 -
$bn201920182018Sept 18Mar 18
Total assets35.1 34.9 35.8 1 (2)
Total funds203.1 205.6 197.7 (1)3
The Group has adopted AASB 9 Financial Instruments and AASB 15 Revenue from Contracts with Customers from 1 October 2018. Statutory
comparatives have not been restated. Refer to Note 1 in Section 4 for further detail. However, where applicable, cash earnings comparatives
(excluding expected credit loss provisioning) have been restated to aid comparability. Refer to the Cash earnings policy in Section 3.0 for further
detail. In addition, during First Half 2019, the Group has made a number of presentational changes to the Balance Sheet and Income Statement.
Both statutory and cash earnings comparatives have been restated. Refer to Note 1 in Section 4 for further detail.
Westpac Group 2019 Interim Financial Results Announcement | 57
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1

Financial performance
First Half 2019 - Second Half 2018
In First Half 2019 BTFG reported a loss of $305 million with the result impacted by notable items, which reduced cash earnings
by $620 million. Notable items include provisions for estimated customer refunds, payments and associated costs of $484
million (after tax), and provisions for the restructuring of the Wealth business of $136 million after tax). Excluding these notable
items, cash earnings were $315 million, down 18% (or $67 million) compared to Second Half 2018. This was primarily due to
higher weather related general insurance claims and margin compression related to the cessation of grandfathered commission
payments and platforms repricing.
2019 Interim financial results
Divisional results
Net interest
income down
$5 million, 2%
zLoans were little changed over the half, as investment lending slowed and the division maintained its
focus on returns. Deposits were up 2%, mostly in term deposits;
zNet interest margin was down 1 basis point with the decline due to notable items. This was partly offset
by higher mortgage and deposit spreads from repricing.
Non-interest
income down
$593 million,
81%
zWealth Management contribution was down $502 million, mostly from an increase in notable items ($447
million). Excluding notable items, the wealth management contribution was down $55 million (or 10%)
from:
-The cessation of grandfathered commission payments ($21 million);
-A reduction in Advice income of $19 million;
-Lower funds income (down $16 million) from a 4% reduction in average funds under administration
from weaker markets and outflows from legacy platforms, partially offset by a 38% increase in funds on
Panorama to $17 billion;
-Lower platform margins from full period impact of repricing and product mix changes ($8 million); and
-Partly offset by the non-repeat of negative returns in boutique funds in Second Half 2018 ($11 million).
zInsurance income was $90 million (or 33%) lower. Excluding notable items ($6 million in Second Half
2018) insurance income was down $96 million:
-General insurance was $94 million lower mostly from an increase in claims associated with major
weather events (Townsville flood, Sydney hailstorms, and large NSW/ QLD storms);
-Life insurance up $2 million supported by lower claims and improved lapses; and
-LMI contribution was $4 million lower, from reduced income from a reduction in higher LVR lending and
higher claims.
zThe contribution from capital and other was $1 million down mostly due to a lower investment
contribution.
Operating
expenses up
$190 million,
28%
zNotable items increased expenses by $236 million including: provisions for costs associated with the
reset of Westpac’s wealth strategy ($190 million), and estimated costs of processing customer refunds
and payments ($46 million); and
zPartly offset by seasonally lower expenses (expenses are typically higher in the second half of the year
from end of financial year activities), and productivity benefits from organisational redesign, product
simplification and contract renegotiations.
58 | Westpac Group 2019 Interim Financial Results Announcement

First Half 2019 - First Half 2018
First Half 2019 cash earnings were a loss of $305 million. Excluding the impact of notable items, cash earnings were $315
million, down 22% (or $91 million). This was primarily due to higher weather related insurance claims and margin compression
related to the cessation of grandfathered commission payments and platforms repricing.
2019 Interim financial results
Divisional results
Net interest
income up $3
million, 1
%
zLoans up 1% mostly in mortgages, while most deposit growth was in term deposits; and
zNet interest margin was down 4 basis points from higher funding costs and provisions for estimated
customer refunds. This was
partly offset by higher mortgage and deposit spreads.
Non-interest
income down
$739 million,
84%
zWealth Management contribution was down $682 million, mostly from an increase in notable items of
$587 million. Excluding these items, the wealth management contribution was down $95 million (or 15%)
from:
-Lower Advice revenue mostly from lower activity and a reduction in the number of advisors ( $29
million);
-Margin compression ($25 million) driven by platform repricing and product mix changes;
-Lower revenue from the cessation of grandfathered commission payments ($21 million);
-First Half 2018 included $9 million from boutique funds, which were sold in Second Half 2018; and
-Revenue $8 million lower from a reduction in average funds under administration from weaker markets
and outflows on legacy platforms. Legacy platform outflows were partly offset by an $8 billion increase
in funds on the Panorama platform.
zInsurance income was $64 million (or 26%) lower:
-General insurance was $60 million lower mostly from higher claims for major weather events. In First
Half 2019 major weather claims were $89 million, compared to $23 million in First Half 2018. This was
partly offset by lower working claims;
-Life insurance contribution up $3 million supported by higher premiums for Group Life (reflecting the
full period impact), partly offset by higher claims; and
-LMI contribution was $7 million lower, from reduced income from lower volumes of higher LVR lending.
zThe contribution from capital and other was up $7 million mostly due to a higher investment contribution.
Operating
expenses up
$282 million,
48
%
zExpenses included notable items of $291 million; and
zExcluding these items expenses were $9 million lower due to productivity benefits from organisational
redesign, product simplification and contract renegotiation.
Westpac Group 2019 Interim Financial Results Announcement | 59

3.3.1 Funds Management business (including Financial Planning and Advice)
Movement of Group Funds
Market share in key Australian wealth products are displayed below.
2019 Interim financial results
Divisional results
% Mov’t% Mov’t
Half YearHalf YearHalf YearMar 19 -Mar 19 -
$mMarch 19Sept 18March 18Sept 18Mar 18
Net interest income293 300 290 (2)1
Non-interest income(68)434 614 large large
Net operating income before operating expenses
and impairment charges225 734 904 (69)(75)
Operating expenses(812)(619)(533)31 52
Profit before impairment charges and income tax expense(587)115 371 largelarge
Impairment benefits / (charges)1 (4)(5) large large
Operating profit before tax(586)111 366 largelarge
Tax and non-controlling interests173 (37)(111) large large
Cash earnings(413)74 255 largelarge
Cash earnings adjustments-----
Net profit after tax(413)74 255 large large
Operating expenses to net operating income
ratio (cash earnings basis)360.89%84.33%58.96%largelarge
As atAs atAs at% Mov’t% Mov’t
31 MarchNetOther30 Sept31 MarchMar 19 -Mar 19 -
$bn2019InflowsOutflowsFlowsMov’t20182018Sept 18Mar 18
Superannuation38.9 1.8 (2.0)(0.2)(0.2)39.3 37.4 (1)4
Platforms120.8 15.5 (17.3)(1.8)(0.3)122.9 118.6 (2)2
Packaged funds39.8 3.0 (2.9)0.1 0.1 39.6 38.0 1 5
Other
3.6 ---(0.2)3.8 3.7 (5)(3)
Total funds203.1 20.3 (22.2)(1.9)(0.6)205.6 197.7 (1)3
Current Australian market shareMarket
ProductshareRank
Platforms (includes Wrap and Corporate Super)18.1%1
Retail (excludes Cash)17.2%1
Corporate Super12.5%3
Other movement includes market movement and other client transactions including fund transfers, account fees and distributions.
Packaged funds include Advance and Management Accounts.
Other includes capital reserves.
Market share is based on published market share statistics from Strategic Insight as at 31 December 2018 and represents the addition of St.George
Wealth and BT Wealth business market share at this time
.
60 | Westpac Group 2019 Interim Financial Results Announcement
1
2
3
4
1
2
3
4

3.3.2 Insurance business
The Insurance business result includes the Westpac and St.George Life Insurance, General Insurance and Lenders Mortgage
Insurance (LMI) businesses.
2019 Interim financial results
Divisional results
% Mov’t% Mov’t
Half Year
Half YearHalf YearMar 19 -Mar 19 -
$m
March 19
Sept 18March 18Sept 18Mar 18
Net interest income
3
2 3 50 -
Non-interest income
179
269 243 (33)(26)
Net operating income before operating expenses
and impairment charges
182
271 246 (33)(26)
Operating expenses
(58)
(60)(55)(3)5
Profit before impairment charges and income tax expense
124
211 191 (41)(35)
Impairment benefits / (charges)
-
----
Operating profit before tax
124
211 191 (41)(35)
Tax and non-controlling interests
(37)
(66)(58)(44)(36)
Cash earnings
87
145 133 (40)(35)
Cash earnings adjustments
-
----
Net profit after tax
87
145 133 (40)(35)
Operating expenses to net operating income
ratio (cash earnings basis)
31.87%
22.14%22.36%largelarge
Cash earnings% Mov’t% Mov’t
Half Year
Half YearHalf YearMar 19 -Mar 19 -
$m
March 19
Sept 18March 18Sept 18Mar 18
Life Insurance
77
71 75 8 3
General Insurance
-
62 43 (100)(100)
Lenders Mortgage Insurance10
12 15 (17)(33)
Total cash earnings
87
145 133 (40)(35)
Insurance key metrics
Life Insurance in-force premiums % Mov’t% Mov’t
Half Year
Half YearHalf YearMar 19 -Mar 19 -
$m
March 19
Sept 18March 18Sept 18Mar 18
Life Insurance in-force premiums at start of period
1,277 1,276 1,068 -20
Sales / New Business
55 80 283 (31)(81)
Lapses
(73)(79)(75)(8)(3)
Life Insurance in-force premiums at end of period
1,259 1,277 1,276 (1)(1)
Claims ratios for Insurance Business % Mov’t% Mov’t
Half Year
Half YearHalf YearMar 19 -Mar 19 -
(%)
March 19
Sept 18March 18Sept 18Mar 18
Life Insurance
48 42 44
14 9
General Insurance
81 37 54
119 50
Lenders Mortgage Insurance
25 11 20
127 25
Gross written premiums % Mov’t% Mov’t
Half Year
Half YearHalf YearMar 19 -Mar 19 -
$m
March 19
Sept 18March 18Sept 18Mar 18
General Insurance gross written premium
259
252 251 3 3
Lenders Mortgage Insurance gross written premium76 90 90 (16)(16)
Sales/New Business in First Half 2018 includes $203 million from Group Life Insurance for BTFG Corporate Super.
The life insurance in-force premium at end of First Half 2019 consists of $979 million retail and $280 million Group Life Insurance (Second Half 2018:
$994 million retail, $283 million Group Life Insurance; First Half 2018: $1 billion retail, $276 million Group Life Insurance).
Claims ratios are claims over earned premium plus reinsurance rebate. The lenders mortgage insurance claims ratios have been calculated to
include exchange commission.
LMI gross written premium includes loans >90% LVR reinsured with Arch Reinsurance Limited. First Half 2019 gross written premium includes $52
million from the arran
gement (Second Half 2018: $61 million, First Half 2018: $62 million).
Westpac Group 2019 Interim Financial Results Announcement | 61
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2
3
4
1
2
3
4

3.4Westpac Institutional Bank
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.
2019 Interim financial results
Divisional results
% Mov’t% Mov’t
Half YearHalf YearHalf YearMar 19 -Mar 19 -
$mMarch 19Sept 18March 18Sept 18Mar 18
Net interest income
743 754 688 (1)8
Non-interest income
682 812 753 (16)(9)
Net operating income before operating expenses
and impairment charges
1,425 1,566 1,441 (9)(1)
Operating expenses
(654)(771)(678)(15)(4)
Profit before impairment charges and income tax expense
771 795 763 (3)1
Impairment benefits / (charges)
(15)9 6 largelarge
Operating profit before tax
756 804 769 (6)(2)
Tax and non-controlling interests
(213)(266)(215)(20)(1)
Cash earnings
543 538 554 1 (2)
Cash earnings adjustments
-----
Net profit after tax
543 538 554 1 (2)
Operating expenses to net operating income
ratio (cash earnings basis)
45.89%49.23%47.05%(334bps)(116bps)
As atAs atAs at% Mov’t% Mov’t
31 March30 Sept31 MarchMar 19 -Mar 19 -
$bn201920182018Sept 18Mar 18
Deposits95.7 104.9 99.0 (9)(3)
Net loans
Loans76.7 77.7 76.6 (1)-
Provisions(0.2)(0.3)(0.3)(33)(33)
Total net loans76.5 77.4 76.3 (1)-
Total assets99.8 102.5 105.0 (3)(5)
Total funds--6.6 -(100)
Revenue contribution
% Mov’t% Mov’t
Half YearHalf YearHalf YearMar 19 -Mar 19 -
$mMarch 19Sept 18March 18Sept 18Mar 18
Lending and deposit revenue848 862 807 (2)5
Markets, sales and fee income458 439 451 4 2
Total customer revenue1,306 1,301 1,258 -4
Derivative valuation adjustments(11)14 -large-
Trading revenue126 60 161 110 (22)
Hastings-180 23 (100)(100)
Other4 11 (1)(64)large
Total WIB revenue1,425 1,566 1,441 (9)(1)
The Group has adopted AASB 9 Financial Instruments and AASB 15 Revenue from Contracts with Customers from 1 October 2018. Statutory
comparatives have not been restated. Refer to Note 1 in Section 4 for further detail. However, where applicable, cash earnings comparatives
(excluding expected credit loss provisioning) have been restated to aid comparability. Refer to the Cash earnings policy in Section 3.0 for further
detail. In addition, during First Half 2019, the Group has made a number of presentational changes to the Balance Sheet and Income Statement.
Both statutory and cash earnings comparatives have been restated. Refer to Note 1 in Section 4 for further detail.
Includes ca
pital benefit and the Bank Levy.
62 | Westpac Group 2019 Interim Financial Results Announcement
1
2
1
2

Financial performance
First Half 2019 - Second Half 2018
Cash earnings of $543 million were $5 million, or 1%, higher than Second Half 2018, mostly driven by higher financial markets
income. These gains were partly offset by a 7 basis point decline in net interest margin, no contribution from Hastings, and a
$15 million impairment charge compared to a $9 million impairment benefit in Second Half 2018.
2019 Interim financial results
Divisional results
Net interest
income down
$11 million,
1%
xNet loans down 1%, mostly from reduced utilisation of warehouse facilities as loans were securitised out
of the warehouse. Lending was also lower reflecting the division’s disciplined focus on returns. Declines
were partly offset by exchange rate movements increasing offshore lending;
xDeposits down 9%, mostly from a reduction in government balances, partly offset by higher corporate
term deposits; and
xNet interest margin down 7 basis points, from a change in funding mix partly offset by disciplined margin
mana
gement.
Non-interest
income down
$130 million,
16%
xDecline due to the exit of Hastings ($180 million) in Second Half 2018;
xA $25 million movement in derivative valuation adjustment from a benefit of $14 million in Second Half
2018 to a charge of $11 million in First Half 2019; and
xPartly offset by higher trading income in fixed income, commodities, and FX. Syndication fees were also
higher from some large transactions.
Operating
expenses
down $117
million, 15%
xThe non-repeat of costs associated with the Hastings business and its exit reduced expenses by $121
million. Excluding Hastings, expenses were up $4 million mostly reflecting increased regulatory and
compliance spending; and
xProductivity benefits from organisation redesign partly offset salary and inflationary increases.
Impairment
charge of $15
million
compared to a
benefit of $9
million
xCredit quality remains sound with stressed exposures to TCE declining 3 basis points to 0.63%;
xImpaired exposures to TCE increased following one large facility migrating to impaired over the half; and
xImpairment charges were higher from the migration of this facility to impaired. Lower write-backs also
contributed to the increase.
Westpac Group 2019 Interim Financial Results Announcement | 63

First Half 2019 - First Half 2018
Cash earnings were $11 million or 2% lower than First Half 2018 mostly due to lower financial markets revenue and a First Hal
f
2019 impairment charge compared to an impairment benefit in First Half 2018. The decline was partially offset by higher
margins, and disciplined expense management.
2019 Interim financial results
Divisional results
Net interest
income up
$55 million,
8%
zNet lending was little changed compared to First Half 2018 (up $0.2 billion). Excluding exchange rate
movements, lending was down 1% ($0.9 billion) as the business focused on returns;
zDeposits were 3% lower primarily from a reduction in government balances, partly offset by higher
corporate term deposits; and
zNet interest margin was up 7 basis points, from improved deposit and lending spreads reflecting
disciplined balance sheet management.
Non-interest
income down
$71 million,
9%
zHastings contributed $23 million to non-interest income in First Half 2018;
zExcluding Hastings, non-interest income was down $48 million or 7%, from:
-Lower markets income across both trading and sales, particularly in commodities; and
-An $11 million charge for derivative valuation adjustments.
Operating
expenses
down $24
million, 4%
xHastings contributed $37 million to operating expenses in First Half 2018;
xExcluding Hastings, operating expenses were up $13 million or 2%. Most of the increase was due to
higher technology and regulatory and compliance expenses partly offset by productivity benefits.
Impairment
charge of $15
million
compared to
benefit of $6
million
xCredit quality remains sound with stressed exposures to TCE of 0.63%, a reduction of 15 basis points
compared to March 2018;
xImpaired exposures to TCE increased following one large facility migrating to impaired in First Half 2019;
and
xImpairment charges were higher from the migration of this facility to impaired. Lower write-backs also
contributed to the increase
.
64 | Westpac Group 2019 Interim Financial Results Announcement

3.5Westpac New Zealand
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. All figures are in New Zealand dollars (NZ$).
2019 Interim financial results
Divisional results
% Mov’t% Mov’t
Half YearHalf YearHalf YearMar 19 -Mar 19 -
NZ$
mMarch 19Sept 18March 18Sept 18Mar 18
Net interest income1,00099496414
Non-interest income
2481962102718
Net o
perating income before operating expenses
and impairment charges1,2481,1901,17456
Operating expenses
(480)(464)(466)33
Profit before impairment charges and income tax expense76872670868
Impairment benefits / (charges)
(14)13(38)large(63)
Operating profit before tax754739670213
Tax and non-controlling interests
(199)(205)(188)(3)6
Cash earnin
gs555534482415
Cash earnin
gs adjustments(6)410largelarge
Net
profit after tax
549538492212
Operating expenses to net operating income
ratio (cash earnings basis)38.46%38.99%39.69%(53bps)(123bps)
As atAs atAs at% Mov’t% Mov’t
31 March30 Sept31 MarchMar 19 -Mar 19 -
NZ$b
n201920182018Sept 18Mar 18
Customer deposits
Term deposits33.332.631.625
Other
30.929.330.053
Total customer deposits64.261.961.644
Net loan
s
Mortgages49.648.947.914
Business
30.929.829.545
Other2.02.02.1-(5)
Provisions
(0.4)(0.3)(0.4)33-
Total net loans82.180.479.124
Total asset
s
93.490.089.844
Total funds
10.910.710.326
The Group has adopted AASB 9 Financial Instruments and AASB 15 Revenue from Contracts with Customers from 1 October 2018. Statutory
comparatives have not been restated. Refer to Note 1 in Section 4 for further detail. However, where applicable, cash earnings comparatives
(excluding expected credit loss provisioning) have been restated to aid comparability. Refer to the Cash earnings policy in Section 3.0 for further
detail. In addition, during First Half 2019, the Group has made a number of presentational changes to the Balance Sheet and Income Statement.
Both statutor
y and cash earnings comparatives have been restated. Refer to Note 1 in Section 4 for further detail.
Westpac Group 2019 Interim Financial Results Announcement | 65
1
1