WBC – NZ Banking Group Disclosure Statement – 31 March 2019

Westpac B anking
Corporation - New
Zealand Banking
Group
Disclosure Statement
For the six months ended 31 March 2019

This page
has been intentionally left blank

Contents
Westpac Banking Corporation - New Zealand Banking Group 3
Directors’ and the Chief Executive Officer, NZ Branch’s statement4
Financial statements
Income statement5Note 5 Loans20
Statement of comprehensive income5Note 6 Provisions for expected credit losses21
Balance sheet6Note 7 Deposits and other borrowings22
Statement of changes in equity7Note 8 Debt issues23
Statement of cash flows8Note 9 Related entities23
Note 1 Statement of accounting policies9Note 10 Fair value of financial assets and liabilities24
Note 2 Net interest income18
Note 3 Non-interest income19
Note 11 Credit related commitments, contingent
assets and contingent liabilities
28
Note 4 Impairment charges/(benefits)20Note 12 Segment reporting28
Registered bank disclosures
i. General information30
ii. Additional financial disclosures32
iv. Credit and market risk exposures and capital
adequacy
39
iii. Asset quality38v. Insurance business40
Conditions of registration41
Independent auditor’s review report42
Glossary of terms
Certain information contained in this Disclosure Statement is required by the Registered Bank Disclosure Statements (Overseas Incorporated
Registered Banks) Order 2014 (as amended) (‘Order’).
In this Disclosure Statement, reference is made to five main reporting groups:
Westpac Banking Corporation (otherwise referred to as the ‘Overseas Bank’) – refers to the worldwide business of Westpac Banking Corporation
excluding its controlled entities;
Westpac Banking Corporation Group (otherwise referred to as the ‘Overseas Banking Group’) – refers to the total worldwide business of Westpac
Banking Corporation including its controlled entities;
Westpac Banking Corporation New Zealand Branch (otherwise referred to as the ‘NZ Branch’) – refers to the New Zealand Branch of Westpac
Banking Corporation (trading as Westpac);
Westpac New Zealand Limited (otherwise referred to as ‘Westpac New Zealand’) – refers to a locally incorporated subsidiary of the Overseas Bank
(carrying on the Overseas Bank’s New Zealand consumer, business and institutional banking operations); and
Westpac Banking Corporation – New Zealand Banking Group (otherwise referred to as the ‘NZ Banking Group’) – refers to the New Zealand
operations of Westpac Banking Corporation Group including those entities whose business is required to be reported in the financial statements of
the Overseas Banking Group’s New Zealand business.
Words and phrases not defined in this Disclosure Statement, but defined by the Order, have the meaning given by the Order when used in this
Disclosure Statement.

Directors’ and the Chief Executive Officer, NZ
Branch’s statement
4 Westpac Banking Corporation - New Zealand Banking Group
Each Director of the Overseas Bank and the Chief Executive Officer, NZ Branch, believe, after due enquiry, that, as at the date on which this
Disclosure Statement is signed, the Disclosure Statement:
(a) contains all information that is required by the Order; and
(b) is not false or misleading.
Each Director of the Overseas Bank and the Chief Executive Officer, NZ Branch, believe, after due enquiry, that, over the six months ended 31
March 2019:
(a) the Overseas Bank has complied with all conditions of registration imposed on it pursuant to section 74 of the Reserve Bank of New Zealand Act
1989 (‘Reserve Bank Act’); and
(b) the NZ Branch and other members of the NZ Banking Group had systems in place to monitor and control adequately the material risks of relevant
members of the NZ Banking Group, including credit risk, concentration of credit risk, interest rate risk, currency risk, equity risk, liquidity risk and
other business risks, and that those systems were being properly applied. For this purpose, a relevant member of the NZ Banking Group means a
member of the NZ Banking Group that is not a member of Westpac New Zealand’s banking group, as defined in Westpac New Zealand’s Disclosure
Statement for the six months ended 31 March 2019.
The Disclosure Statement has been signed on behalf of all of the Directors by David Alexander McLean, Chief Executive, Westpac New Zealand,
and by Karen Lee Silk as Chief Executive Officer, NZ Branch.
David McLean
Karen Silk
Dated this 29
th
day of May 2019

Income statement for the six months ended 31 March 2019
Westpac Banking Corporation - New Zealand Banking Group 5
NZ BANKING GROUP
Six Months
1,2
Six Months
2
EndedEnded
31 Mar 1931 Mar 18
$ millionsNoteUnauditedUnaudited
Interest income2 2,097 2,008
Interest expense2 (1,086) (1,065)
Net interest income 1,011 943
Net fees and commissions income3 102 143
Net wealth management and insurance income3 96 75
Trading income3 22 43
Other income3 46 10
Net operating income before operating expenses and impairment charges 1,277 1,214
Operating expenses (494) (473)
Impairment (charges)/benefits4 (14) (27)
Profit before income tax 769 714
Income tax expense (203) (201)
Net profit attributable to the owners of the NZ Banking Group 566 513
1
The income statement for 31 March 2019 reflects the adoption of NZ IFRS 9 Financial Instruments (‘NZ IFRS 9’) and NZ IFRS 15 Revenue from Contracts with
Customers (‘NZ IFRS 15’). Comparatives have not been restated. Refer to Note 1 for further information.
2
In the current period, the NZ Banking Group has disaggregated the non-interest income line on the income statement into four separate lines for net fees and
commissions income, net wealth management and insurance income, trading income and other income. The NZ Banking Group has also reclassified credit card
loyalty program expense from operating expenses to net fees and commissions income. Comparatives have been restated. Refer to Note 1 for further information.
The above income statement should be read in conjunction with the accompanying notes.
Statement of comprehensive income for the six months ended 31 March 2019
NZ BANKING GROUP
Six Months
1
Six Months
EndedEnded
31 Mar 1931 Mar 18
$ millions
UnauditedUnaudited
Net profit attributable to the owners of the NZ Banking Group 566 513
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Gains/(losses) recognised in equity on:
Available-for-sale securities - 2
Investment securities (6) -
Cash flow hedging instruments (70) (18)
Transferred to income statement:
Cash flow hedging instruments 21 32
Income tax on items taken to or transferred from equity:
Available-for-sale securities reserve - (1)
Investment securities reserve 2 -
Cash flow hedge reserve 14 (4)
Items that will not be reclassified subsequently to profit or loss
Remeasurement of defined benefit obligation (net of tax) (8) (2)
Other comprehensive income for the period (net of tax) (47) 9
Total comprehensive income attributable to the owners of the NZ Banking Group 519 522
1
The statement of comprehensive income for 31 March 2019 reflects the adoption of NZ IFRS 9 and NZ IFRS 15. Comparatives have not been restated. Refer to Note
1 for further information.
The above statement of comprehensive income should be read in conjunction with the accompanying notes.

Balance sheet as at 31 March 2019
6 Westpac Banking Corporation - New Zealand Banking Group
NZ BANKING GROUP
31 Mar 19
1,2
30 Sep 18
2
$ millionsNoteUnauditedAudited
Assets
Cash and balances with central banks 2,240 1,472
Collateral paid 513 180
Trading securities and financial assets measured at fair value through income statement (FVIS) 3,249 3,016
Derivative financial instruments 3,413 3,509
Available-for-sale securities - 3,810
Investment securities 3,992 -
Loans5 82,469 80,860
Other financial assets 736 468
Life insurance assets 295 310
Due from related entities 2,235 2,023
Property and equipment 136 144
Deferred tax assets 154 127
Intangible assets 673 683
Other assets 75 54
Total assets 100,180 96,656
Liabilities
Collateral received 320 591
Deposits and other borrowings7 65,114 63,105
Other financial liabilities 1,788 1,622
Derivative financial instruments 3,991 3,569
Due to related entities 2,397 2,440
Debt issues8 14,976 13,725
Current tax liabilities 27 111
Provisions 110 120
Other liabilities 136 124
Loan capital 2,880 2,866
Total liabilities 91,739 88,273
Net assets 8,441 8,383
Head office account
Branch capital 1,300 1,300
Retained profits 908 869
Total head office account 2,208 2,169
NZ Banking Group equity
Share capital 143 143
Reserves (94) (55)
Retained profits 6,184 6,126
Total NZ Banking Group equity 6,233 6,214
Total equity attributable to the owners of the NZ Banking Group 8,441 8,383
1
The balance sheet for 31 March 2019 reflects the adoption of NZ IFRS 9 and NZ IFRS 15. Comparatives have not been restated. Refer to Note 1 for further
information.
2
In the current year, balances from receivables due from other financial institutions and payables due to other financial institutions have been reclassified to line
items of a similar nature on the balance sheet and to collateral paid and collateral received where relevant. Amounts in other assets, other liabilities and other
financial liabilities at fair value through profit or loss have been reclassified to other financial assets and other financial liabilities where relevant. Comparatives
have been restated. Refer to Note 1 for further information.
The above balance sheet should be read in conjunction with the accompanying notes.

Statement of changes in equity for the six months ended 31 March 2019
Westpac Banking Corporation - New Zealand Banking Group 7
NZ BANKING GROUP
NZ BRANCHOTHER MEMBERS OF THE NZ BANKING GROUP
Head Office AccountReserves
Available-
for-saleInvestmentCash Flow
BranchRetained Share SecuritiesSecuritiesHedgeRetainedTotal
$ millions
Capital ProfitsCapital ReserveReserveReserveProfitsEquity
As at 1 October 2017 (Audited) 1,300 740 143 9 - (73) 5,712 7,831
Six months ended 31 March 2018
(Unaudited)
Net profit attributable to the owners of the
NZ Banking Group - 43 - - - - 470 513
Net gains/(losses) from changes in fair
value - - - 2 - (18) - (16)
Income tax effect - - - (1) - 5 - 4
Transferred to income statement - - - - - 32 - 32
Income tax effect - - - - - (9) - (9)
Remeasurement of defined benefit
obligations - - - - - - (3) (3)
Income tax effect - - - - - - 1 1
Total comprehensive income for the
six months ended 31 March 2018 - 43 - 1 - 10 468 522
Transactions with owners:
Dividends paid on ordinary shares - - - - - - (72) (72)
As at 31 March 2018 (Unaudited) 1,300 783 143 10 - (63) 6,108 8,281
As at 30 September 2018 (Audited) 1,300 869 143 9 - (64) 6,126 8,383
Impact on adoption of new accounting
standards
1
- - - (9) 9 - (24) (24)
As at 1 October 2018 (Unaudited) 1,300 869 143 - 9 (64) 6,102 8,359
Six months ended 31 March 2019
(Unaudited)
Net profit attributable to the owners of the
NZ Banking Group - 39 - - - - 527 566
Net gains/(losses) from changes in fair
value - - - - (6) (70) - (76)
Income tax effect - - - - 2 20 - 22
Transferred to income statement - - - - - 21 - 21
Income tax effect - - - - - (6) - (6)
Remeasurement of defined benefit
obligations - - - - - - (11) (11)
Income tax effect - - - - - -
3
3
Total comprehensive income for the
six months ended 31 March 2019 - 39 - - (4) (35) 519 519
Transactions with owners:
Dividends paid on ordinary shares (refer to
Note 9)
- - - - - - (437) (437)
As at 31 March 2019 (Unaudited) 1,300 908 143 - 5 (99) 6,184 8,441
1
The statement of changes in equity for 31 March 2019 reflects the adoption of NZ IFRS 9 and NZ IFRS 15. Refer to Note 1 for further information.
The above statement of changes in equity should be read in conjunction with the accompanying notes.

Statement of cash flows for the six months ended 31 March 2019
8 Westpac Banking Corporation - New Zealand Banking Group
NZ BANKING GROUP
Six Months
1,2
Six Months
2
EndedEnded
31 Mar 1931 Mar 18
$ millionsUnauditedUnaudited
Cash flows from operating activities
Interest received 2,091 2,002
Interest paid (1,117) (1,120)
Non-interest income received 224 242
Operating expenses paid (464) (458)
Income tax paid (286) (254)
Cash flows from operating activities before changes in operating assets and liabilities 448 412
Net (increase)/decrease in:
Collateral paid (333) 158
Trading securities and financial assets measured at FVIS (141) 507
Loans (1,618) (1,912)
Other financial assets 1 (22)
Due from related entities (125) 1,112
Other assets (3) (4)
Net increase/(decrease) in:
Collateral received (271) 174
Deposits and other borrowings 2,009 3,185
Other financial liabilities 220 37
Due to related entities (2) (884)
Other liabilities 5 9
Net movement in external and related entity derivative financial instruments (186) (220)
Net cash provided by/(used in) operating activities 4 2,552
Cash flows from investing activities
Proceeds from available-for-sale securities - 499
Purchase of investment securities (1,535) -
Proceeds from investment securities 1,363 -
Net movement in life insurance assets 15 24
Proceeds from disposal of associates 48 -
Purchase of capitalised computer software (21) (30)
Purchase of property and equipment (16) (16)
Proceeds from disposal of property and equipment 3 -
Net cash provided by/(used in) investing activities (143) 477
Cash flows from financing activities
Net movement in due to related entities (23) (217)
Proceeds from debt issues 1,721 550
Repayments of debt issues - (2,615)
Dividends paid to ordinary shareholders (437) (72)
Net cash provided by/(used in) financing activities 1,261 (2,354)
Net increase/(decrease) in cash and cash equivalents 1,122 675
Cash and cash equivalents at beginning of the period 1,529 1,801
Cash and cash equivalents at end of the period 2,651 2,476
Cash and cash equivalents at end of the period comprise:
Cash on hand 290 381
Balances with central banks 1,950 1,750
Interbank lending classified as cash and cash equivalents
3
411 345
Cash and cash equivalents at end of the period 2,651 2,476
1
The statement of cash flows for 31 March 2019 reflects the adoption of NZ IFRS 9 and NZ IFRS 15. Comparatives have not been restated. Refer to Note 1 for further
information.
2
In the current year, balances from receivables due from other financial institutions and payables due to other financial institutions have been reclassified to line
items of a similar nature on the balance sheet and to collateral paid and collateral received where relevant. Amounts in other assets and other liabilities have been
reclassified to other financial assets and other financial liabilities where relevant. Comparatives have been restated. Refer to Note 1 for further information.
3
Interbank lending is included within other financial assets on the balance sheet.
The above statement of cash flows should be read in conjunction with the accompanying notes.

Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group 9
Note 1 Statement of accounting policies
These condensed consolidated interim financial statements (‘financial statements’) have been prepared and presented in accordance with the
Order and Generally Accepted Accounting Practice, as appropriate for for-profit entities, and the New Zealand equivalent to International
Accounting Standard 34 Interim Financial Reporting and should be read in conjunction with the Disclosure Statement for the year ended 30
September 2018. These financial statements comply with International Accounting Standard 34 Interim Financial Reporting as issued by the
International Accounting Standards Board (‘IASB’).
1. Financial statements preparation
These financial statements have been prepared under the historical cost convention, as modified by applying fair value accounting to available-for-
sale securities/investment securities and financial assets and financial liabilities (including derivative instruments) measured at fair value through
income statement (‘FVIS’) or in other comprehensive income (‘FVOCI’). The going concern concept has been applied.
All amounts in these financial statements have been rounded to the nearest million dollars unless otherwise stated.
Comparative information has been revised where appropriate to conform to changes in presentation in the current reporting period and to enhance
comparability. Where there has been a material restatement of comparative information, the nature of and the reason for the restatement is
disclosed in the relevant note.
All policies have been applied on a basis consistent with that used in the financial year ended 30 September 2018, except as set out below.
The areas of judgment, estimates and assumptions in these financial statements, including the key sources of estimation uncertainty, are consistent
with those in the Disclosure Statement for the year ended 30 September 2018, with the exception of those relevant to the NZ Banking Group due to
the adoption of NZ IFRS 9 Financial instruments (September 2014) (‘NZ IFRS 9’). These include the concept of a significant increase in credit risk
and the use of forward looking information as described in the “Amendments to Accounting Standards effective this period – NZ IFRS 9 Financial
Instruments (September 2014) (NZ IFRS 9)” section.

Notes to the financial statements
10 Westpac Banking Corporation - New Zealand Banking Group
Note 1 Statement of accounting policies (continued)
2. Voluntary presentation changes
Balance sheet
The following voluntary presentation changes to the balance sheet (and related notes) have been made to improve consistency and provide more
relevant information to the users of the financial statements by reporting balances of a similar nature together in the same place in the balance
sheet. These changes have no effect on the measurement of these items and therefore had no impact on retained earnings or net profit.
These changes are:
the addition of new balance sheet lines for ‘collateral paid’, ‘other financial assets’, ‘collateral received’ and ‘other financial liabilities’;
removal of the balance sheet line ‘receivables due from other financial institutions’ and reclassification to ‘collateral paid’ and ‘other financial
assets’;
removal of the balance sheet line ‘payables due to other financial institutions’ and reclassification to ‘collateral received’ and ‘other financial
liabilities’;
removal of the balance sheet line ‘other financial liabilities at fair value through income statement’ and reclassification to ‘other financial
liabilities’; and
reclassification of financial assets or financial liabilities included in other assets or other liabilities respectively to other financial assets and other
financial liabilities respectively.
Collateral paid/collateral received includes cash provided to/received from counterparties as collateral over financial liabilities/assets arising from
derivative contracts. It includes initial and variation margin placed as security for derivative transactions.
Comparatives have been restated for these voluntary presentation changes and are detailed as follows.
NZ BANKING GROUP
30 Sep 18
$ millions
Reported
Presentation
changesRestated
Assets
Receivables due from other financial institutions 237 (237) -
Collateral paid - 180 180
Other financial assets - 468 468
Other assets 465 (411) 54
All other assets 95,954 - 95,954
Total assets
96,656 - 96,656
Liabilities
Payables due to other financial institutions 1,253 (1,253) -
Collateral received - 591 591
Other financial liabilities at fair value through income statement 223 (223) -
Other financial liabilities - 1,622 1,622
Other liabilities
861 (737)
124
All other liabilities 85,936 - 85,936
Total liabilities
88,273 -
88,273
Income statement
The following voluntary presentation changes to the income statement (and related notes) have been made to provide more relevant information to
the users of the financial statements. These changes have no effect on the measurement of these items and therefore had no impact on retained
earnings or net profit.
a. Net interest income
the components of interest income and interest expense relating to the balance sheet reclassifications have been restated accordingly. Note
that there was no net impact to total interest income, total interest expense or to total net interest income. Comparatives have been restated
for these voluntary presentation changes. The details are provided in Note 2.
in addition, to comply with disclosure requirements, interest income derived from financial assets measured at amortised cost and at FVOCI has
been presented separately from other interest income. For consistency, interest expense is presented in the same way. The details are provided
in Note 2.

Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group 11
Note 1 Statement of accounting policies (continued)
b. Non-Interest income and operating expenses
disaggregating the non-interest income line on the income statement into four separate lines for net fees and commissions income, net wealth
management and insurance income, trading income and other income.
separating net fees and commissions income in the non-interest income note into fees and commissions income and fees and commissions
expenses.
reclassifying credit card loyalty program expense from operating expenses to the new fees and commissions expenses category in the non-
interest income note.
Fees and commissions expenses include those expenses that are incremental external costs that vary directly with the provision of goods or services
to customers (excluding expenses which would qualify as transaction costs relating to the issue, acquisition or disposal of a financial asset or a
financial liability which are deferred and included in the effective interest rate and recognised in net interest income).
An incremental cost is one that would not have been incurred if a specific good or service had not been provided to a specific customer.
Comparatives have been restated for these voluntary presentation changes and are detailed in the following table.
NZ BANKING GROUP
Six months ended 31 Mar 18
$ millions
Reported
Presentation
changesRestated
Income statement
Net interest income 943 - 943
Non-interest income 285 (285) -
Net fees and commissions income - 143 143
Net wealth management and insurance income - 75 75
Trading income - 43 43
Other income - 10 10
Net operating income before operating expenses and impairment charges 1,228 (14) 1,214
Operating expenses (487) 14 (473)
Impairment (charges)/benefits (27) - (27)
Profit before income tax 714 - 714
Income tax expense (201) - (201)
Net profit attributable to the owners of the NZ Banking Group 513 - 513
Note 3: Non-interest income (extract)
Net fees and commissions income
Facility fees 30 - 30
Transaction fees and commissions 103 12 115
Other non-risk fee income 24 - 24
Fees and commissions income 157 12 169
Credit card loyalty programs - (14) (14)
Transaction fee related expenses - (12) (12)
Fees and commissions expenses - (26) (26)
Net fees and commissions income 157 (14) 143

Notes to the financial statements
12 Westpac Banking Corporation - New Zealand Banking Group
Note 1 Statement of accounting policies (continued)
3. Amendments to Accounting Standards effective this period
NZ IFRS 9 Financial Instruments (September 2014) (NZ IFRS 9)
The NZ Banking Group adopted NZ IFRS 9 on 1 October 2018. The adoption of NZ IFRS 9 has been applied by adjusting the opening balance sheet at 1
October 2018, with no restatement of comparatives as permitted by the standard. The adoption of NZ IFRS 9 reduced retained earnings at 1 October
2018 by $27 million (net of tax), primarily due to the increase in impairment provisions under the new standard.
The key changes in accounting policies and the impact of transition are outlined as follows.
a. Impairment
NZ IFRS 9 introduces a revised impairment model which requires entities to recognise expected credit losses (‘ECL’) based on unbiased forward
looking information, replacing the incurred loss model under NZ IAS 39 Financial instruments: Recognition and Measurement (‘NZ IAS 39’) which
only recognised impairment if there was objective evidence that a loss had been incurred. The revised impairment model applies to all financial
assets at amortised cost, investment securities, and credit commitments.
Measurement
The NZ Banking Group calculates the provisions for ECL based on a three stage approach. ECL are a probability-weighted estimate of the cash
shortfalls expected to result from defaults over the relevant timeframe. They are determined by evaluating a range of possible outcomes and taking
into account the time value of money, past events, current conditions and forecasts of future economic conditions.
The models use three main components to determine the ECL (as well as the time value of money) including:
Probability of default (‘PD’): the probability that a counterparty will default;
Loss given default (‘LGD’): the loss that is expected to arise in the event of a default; and
Exposure at default (‘EAD’): the estimated outstanding amount of credit exposure at the time of the default.
i. Model stages
The three stages are as follows:
Stage 1: 12 months ECL - performing
For financial assets where there has been no significant increase in credit risk since origination, a provision for 12 months ECL is recognised.
Interest revenue is calculated based on the gross carrying amount of the financial asset.
Stage 2: Lifetime ECL – performing
For financial assets where there has been a significant increase in credit risk since origination but where the asset is still performing, a provision
for lifetime ECL is recognised.
Determining when a financial asset has experienced a significant increase in credit risk since origination is a critical accounting judgement which
is primarily based on changes in internal customer risk grades since origination of the facility. A change in an internal customer risk grade is
based on both quantitative and qualitative factors. The number of changes in the internal customer risk grade that the NZ Banking Group uses
to represent a significant increase in credit risk is determined on a sliding scale where the number of changes will typically be higher for an
exposure with a lower credit risk grade compared to an exposure with a higher credit risk grade.
The NZ Banking Group does not rebut the presumption that instruments that are 30 days past due have experienced a significant increase in
credit risk but this is used as a backstop rather than the primary indicator.
The NZ Banking Group does not apply the low credit risk exemption which assumes investment grade facilities do not have a significant increase
in credit risk.
Interest revenue is calculated based on the gross carrying amount of the financial asset.
Stage 3: Lifetime ECL – non-performing
For financial assets that are non-performing, a provision for lifetime ECL is recognised. Indicators include a breach of contract with the NZ
Banking Group such as a default on interest or principal payments, a borrower experiencing significant financial difficulties or observable
economic conditions that correlate to defaults on a group of loans.
Interest revenue is calculated based on the carrying amount net of the provision for ECL rather than the gross carrying amount.

Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group 13
Note 1 Statement of accounting policies (continued)
ii. Collective and individual assessment
Financial assets that are in stages 1 and 2 are assessed on a collective basis as are financial assets in stage 3 below specified thresholds. Those
financial assets in stage 3 above the specified thresholds are assessed on an individual basis.
iii. Expected life
Expected credit losses are determined as a lifetime expected credit loss in stages 2 and 3.
In considering the lifetime timeframe, the standard generally requires use of the remaining contractual life adjusted where appropriate for
prepayments, extension and other options. For certain revolving credit facilities which include both a drawn and undrawn component (e.g. credit
cards and revolving lines of credit), the NZ Banking Group’s contractual ability to demand repayment and cancel the undrawn commitment does
not limit our exposure to credit losses to the contractual notice period. For these facilities, lifetime is based on historical behaviour.
iv. Movement between stages
Assets may move in both directions through the stages of the impairment model. Assets previously in stage 2 may move back to stage 1 if it is no
longer considered that there has been a significant increase in credit risk. Similarly, assets in stage 3 may move back to stage 2 if they are no longer
assessed to be non-performing.
v. Forward looking information
The measurement of ECL for each stage and the assessment of significant increase in credit risk consider information about past events and current
conditions as well as reasonable and supportable projections of future events and economic conditions. The estimation of forward looking
information is a critical accounting judgement. The NZ Banking Group considers three future macroeconomic scenarios including a base case
scenario along with upside and downside scenarios.
The macroeconomic variables used in these scenarios, based on current economic forecasts, include (but are not limited to) unemployment rates,
real gross domestic product growth rates and residential and commercial property price indices.
Base case scenario
This scenario utilises the internal Westpac economics forecast used for strategic decision making and forecasting. This assumes low GDP
growth, declines in residential property price indices and the cash rate.
Upside scenario
This scenario represents a modest improvement on the base case scenario.
Downside scenario
This scenario is used in the NZ Banking Group’s stress testing and represents a moderate recession. In this scenario, the economy weakens with
declines in GDP growth, commercial property prices and more significant declines in residential property prices. It also assumes an increase in
the unemployment rate. In a deteriorating economy there may be times when a more severe downside scenario is required which will be
monitored as part of the governance framework.
The macroeconomic scenarios are weighted based on the NZ Banking Group’s best estimate of the relative likelihood of each scenario. The
weighting applied to each of the three forward looking macroeconomic scenario takes into account historical frequency, current trends, and forward
looking conditions. The macroeconomic variables and probability weightings of the three scenarios are subject to the approval of the NZ Banking
Group’s Chief Financial Officer and Chief Risk Officer with oversight from the Board of Directors (and its Committees). Where appropriate,
adjustments are made to modelled outcomes to reflect reasonable and supportable information not already incorporated in the models.
Recognition
The ECL determined under NZ IFRS 9 are recognised as follows:
Loans at amortised cost: as a reduction of the carrying value of the financial asset through an offsetting provision account (refer to Notes 5 and
6);
Investment securities: in reserves in other comprehensive income with no reduction of the carrying value of the debt security itself (refer to the
statement of changes in equity); and
Credit commitments: as a provision.

Notes to the financial statements
14 Westpac Banking Corporation - New Zealand Banking Group
Note 1 Statement of accounting policies (continued)
b. Classification and measurement
NZ IFRS 9 replaced the classification and measurement model in NZ IAS 39 with a new model that categorises financial assets based on a) the
business model within which the assets are managed, and b) whether the contractual cash flows under the instrument represent solely payments of
principal and interest (‘SPPI’).
The NZ Banking Group determines the business model at the level that reflects how groups of financial assets are managed. When assessing the
business model the NZ Banking Group considers factors including how performance and risks are managed, evaluated and reported and the
frequency and volume of, and reason for, sales in previous periods, and expectations of sales in future periods.
When assessing whether contractual cash flows are SPPI, interest is defined as consideration primarily for the time value of money and the credit
risk of the principal outstanding. The time value of money is defined as the element of interest that provides consideration only for the passage of
time and not consideration for other risks or costs associated with holding the financial asset. Terms that could change the contractual cash flows
so that they may not meet the SPPI criteria include contingent and leverage features, non-recourse arrangements, and features that could modify
the time value of money.
Financial assets
i. Debt instruments
If the debt instruments have contractual cash flows that represent SPPI on the principal balance outstanding they are classified at:
amortised cost if they are held with a business model which is achieved through holding the financial asset to collect these cash flows; or
FVOCI if they are held with a business model which is achieved both through collecting these cash flows or selling the financial asset; or
FVIS if they are held with a business model which is achieved through selling the financial asset.
Debt instruments are also measured at FVIS where the contractual cash flows do not represent SPPI on the principal balance outstanding or where it
is designated at FVIS to eliminate or reduce an accounting mismatch.
Debt instruments at amortised cost are initially recognised at fair value and subsequently measured at amortised cost using the effective interest
rate method. They are presented net of provisions for ECL determined using the ECL model described above.
Debt instruments at FVOCI are measured at fair value with unrealised gains and losses recognised in other comprehensive income except for
interest income, impairment charges and foreign exchange gains and losses which are recognised in the income statement.
Impairment on debt instruments at FVOCI is determined using the ECL model described above and is recognised in the income statement with a
corresponding amount in other comprehensive income. There is no reduction of the carrying value of the debt security which remains at fair value.
The cumulative gain or loss recognised in other comprehensive income is subsequently recognised in the income statement when the instrument is
disposed.
Debt instruments at FVIS are measured at fair value with subsequent changes in fair value recognised in the income statement.
ii. Equity securities
Equity securities are measured at FVOCI where they:
are not held for trading; and
an irrevocable election is made by the NZ Banking Group.
Otherwise, they are measured at FVIS.
Equity securities at FVOCI are measured at fair value with unrealised gains and losses recognised in other comprehensive income except for
dividend income which is recognised in the income statement. The cumulative gain or loss recognised in other comprehensive income is not
subsequently recognised in the income statement when the instrument is disposed.
Equity securities at FVIS are measured at fair value with subsequent changes in fair value recognised in the income statement.

Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group 15
Note 1 Statement of accounting policies (continued)
Financial liabilities
Financial liabilities are measured at amortised cost if they are not held for trading or designated at FVIS otherwise they are measured at FVIS. This
remains unchanged from NZ IAS 39.
In the 2014 financial year, the NZ Banking Group early adopted part of NZ IFRS 9 which relates to the recognition of the changes in fair value of
financial liabilities designated at fair value attributable to the NZ Banking Group’s own credit risk in other comprehensive income (except where it
would create an accounting mismatch, in which case all changes in fair value are recognised in the income statement). As a result, the accounting
for this remains unchanged for the NZ Banking Group.
c.Hedging
NZ IFRS 9 changes hedge accounting by increasing the eligibility of both hedged items and hedging instruments and introducing a more principles-
based approach to assessing hedge effectiveness. Adoption of the new hedge accounting model is optional until the IASB completes its accounting
for dynamic risk management project. Until this time, current hedge accounting under NZ IAS 39 can continue to be applied. The NZ Banking Group
has applied the option to continue hedge accounting under NZ IAS 39, however the NZ Banking Group has adopted the amended NZ IFRS 7 Financial
Instruments: Disclosures hedge accounting disclosures as required.
NZ IFRS 15 Revenue from Contracts with Customers (NZ IFRS 15)
The NZ Banking Group adopted NZ IFRS 15 on 1 October 2018. It replaced NZ IAS 18 Revenue and related interpretations and applies to all contracts
with customers, except leases, financial instruments and insurance contracts. The standard provides a systematic approach to revenue recognition
by introducing a five-step model governing revenue measurement and recognition. This includes:
identifying the contract with customer;
identifying each of the performance obligations included in the contract;
determining the amount of consideration in the contract;
allocating the consideration to each of the identified performance obligations; and
recognising revenue as each performance obligation is satisfied.
The NZ Banking Group has applied NZ IFRS 15 by increasing the opening balance of retained earnings at the date of initial application, 1 October
2018, by $3 million (net of tax) with no comparatives restatement.
In addition, the NZ Banking Group identified certain income and expenses which were previously reported on a net basis primarily within fees and
commission income which are now being presented on a gross basis.
Finally, certain facility fees have been reclassified from non-interest income to interest income.

Notes to the financial statements
16 Westpac Banking Corporation - New Zealand Banking Group
Note 1 Statement of accounting policies (continued)
Transition (NZ IFRS 9 and NZ IFRS 15)
a. Impact of the adoption of NZ IFRS 9 – impairment
The following table shows the impact of the adoption of NZ IFRS 9 on impairment balances.
$ millions
Provision on
loans
Provision for
credit
commitments
Loss allowance
on investment
securities
Provision on all
other financial
assets at
amortised costTotal
30 September 2018 - carrying amount 324 34 - - 358
Increase in provision for impairment 28 9 - - 37
1 October 2018 - NZ IFRS 9 carrying amount
352 43 - - 395
b. Impact of the adoption of NZ IFRS 9 - classification and measurement
Available-for-sale securities / Investment securities
The balance sheet line item previously named Available-for-sale securities has been renamed to Investment securities. Investment securities consist
of debt securities at FVOCI as they have contractual cash flows that represent SPPI and are held with a business model which is achieved both
through collecting these cash flows or selling the instruments.
Basis of measurement
There has been no change in the basis of measurement of financial assets and financial liabilities under NZ IFRS 9 as presented in the following table.
NZ BANKING GROUP
30 Sep 181 Oct 2018
NZ IAS 39 measurement basisNZ IFRS 9 measurement basis
$ millions
Amortised
cost
FVISFVOCITotal
Change in
measurement
basis under
NZ IFRS 9
Amortised
cost
FVISFVOCITotal
Financial assets
Cash and balances with central banks1,472--1,472No1,472--1,472
Collateral paid180--180No180--180
Trading securities and financial assets
measured at FVIS-3,016-3,016No-3,016-3,016
Derivative financial instruments-3,509-3,509No-3,509-3,509
Available-for-sale/Investment securities--3,8103,810No--3,8103,810
Loans80,860--80,860No80,860--80,860
Other financial assets468--468No468--468
Life insurance assets310-310No-310-310
Due from related entities1,564459-2,023No1,564459-2,023
Total financial assets84,5447,2943,81095,64884,5447,2943,81095,648
Financial liabilities
Collateral received591--591No591--591
Deposits and other borrowings61,8841,221-63,105No61,8841,221-63,105
Other financial liabilities1,399223-1,622No1,399223-1,622
Derivative financial instruments-3,569-3,569No-3,569-3,569
Due to related entities1,796644-2,440No1,796644-2,440
Debt issues13,725--13,725No13,725--13,725
Loan capital2,866--2,866No2,866--2,866
Total financial liabilities82,2615,657-87,91882,2615,657-87,918

Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group 17
Note 1 Statement of accounting policies (continued)
c.Reconciliation of the opening balance sheet
The table below reconciles the restated 30 September 2018 balance sheet to the 1 October 2018 opening balance sheet on adoption of NZ IFRS 9 and
NZ IFRS 15 showing separately the impact of adjustments relating to reclassification and remeasurement, including the related tax impacts.
NZ BANKING GROUP
30 Sep 2018
1 Oct 2018
NZ IFRS 9 changes
$ millions
Restated
carrying amount
ReclassificationRemeasurement
NZ IFRS 15
changes
Opening
carrying amount
Assets
Cash and balances with central banks
1,472 - - - 1,472
Collateral paid
180 - - - 180
Trading securities and financial assets measured at
FVIS
3,016 - - - 3,016
Derivative financial instruments
3,509 - - - 3,509
Available-for-sale securities
3,810 (3,810) - - -
Investment securities
- 3,810 - - 3,810
Loans
80,860 - (28) - 80,832
Other financial assets
468 - - - 468
Life insurance assets
310 - - - 310
Due from related entities
2,023 - - - 2,023
Property and equipment
144 - - - 144
Deferred tax assets
127 - 10 (1) 136
Intangible assets
683 - - - 683
Other assets
54 - - - 54
Total assets 96,656 - (18) (1) 96,637
Liabilities
Collateral received
591 - - - 591
Deposits and other borrowings
63,105 - - - 63,105
Other financial liabilities
1,622 - - (4) 1,618
Derivative financial instruments
3,569 - - - 3,569
Due to related entities
2,440 - - - 2,440
Debt issues
13,725 - - - 13,725
Current tax liabilities
111 - - - 111
Provisions
120 - 9 - 129
Other liabilities
124 - - - 124
Loan capital
2,866 - -
-
2,866
Total liabilities 88,273 - 9 (4) 88,278
Net assets 8,383 - (27) 3 8,359
Head office account
Branch capital
1,300
- - - 1,300
Retained profits
869
- - - 869
Total head office account 2,169 - - - 2,169
NZ Banking Group equity
Share capital
143 - - - 143
Reserves
(55)
- - -
(55)
Retained profits
6,126
- (27) 3 6,102
Total NZ Banking Group equity 6,214 - (27) 3 6,190
Total equity attributable to the owners of the
NZ Banking Group
8,383 - (27) 3 8,359
As permitted by NZ IFRS 9 and NZ IFRS 15, comparatives have not been restated. Comparatives have been restated for voluntary presentation
changes as detailed in Section 2 ‘Voluntary presentation changes’ on page 10.

Notes to the financial statements
18 Westpac Banking Corporation - New Zealand Banking Group
Note 2 Net interest income5967-2 04-18
NZ BANKING GROUP
Six Months
1,2
Six Months
2
EndedEnded
31 Mar 1931 Mar 18
$ millions
UnauditedUnaudited
Interest income
Financial assets measured at amortised cost or FVOCI
Cash and balances with central banks 12 13
Collateral paid 4 2
Available-for-sale securities - 73
Investment securities 78 -
Loans 1,947 1,866
Due from related entities 11 11
Total interest income from financial assets measured at amortised cost or FVOCI 2,052 1,965
Other
Trading securities and financial assets measured at FVIS 42 40
Due from related entities 3 3
Total other 45 43
Total interest income 2,097 2,008
Interest expense
Financial liabilities measured at amortised cost
Collateral received 4 3
Deposits and other borrowings 664 627
Due to related entities 26 25
Debt issues 141 145
Loan capital 74 72
Other interest expense 3 3
Total interest expense from financial liabilities measured at amortised cost 912 875
Other
Deposits and other borrowings 11 8
Due to related entities 3 3
Debt issues 4 10
Other interest expense
3
156 169
Total other 174 190
Total interest expense 1,086 1,065
Total net interest income 1,011 943
1
Reflects the adoption of NZ IFRS 9 and NZ IFRS 15. Comparatives have not been restated. Refer to Note 1 for further information.
2
In the current year, balances from receivables due from other financial institutions and payables due to other financial institutions have been reclassified to line
items of a similar nature on the balance sheet and to collateral paid and collateral received where relevant. Amounts in other assets and other liabilities have been
reclassified to other financial assets and other financial liabilities where relevant. Comparatives have been restated. Refer to Note 1 for further information.
3
Includes the net impact of treasury's interest rate and liquidity management activities.

Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group 19
Note 3 Non-interest income5967-2 0 4-18
NZ BANKING GROUP
Six Months
1,2
Six Months
2
EndedEnded
31 Mar 1931 Mar 18
$ millions
UnauditedUnaudited
Net fees and commissions income
Facility fees 25 30
Transaction fees and commissions 94 115
Other non-risk fee income 13 24
Fees and commissions income 132 169
Credit card loyalty programs (16) (14)
Transaction fee related expenses (14) (12)
Fees and commissions expenses (30) (26)
Net fees and commissions income 102 143
Net wealth management and insurance income
Wealth management income 27 26
Net life insurance income and change in policy liabilities 69 49
Net wealth management and insurance income 96 75
Trading income 22 43
Other income
Net ineffectiveness on qualifying hedges - 4
Other non-interest income
3
46 6
Total other income 46 10
Total non-interest income 266 271
1
Reflects the adoption of NZ IFRS 15. Comparatives have not been restated. Refer to Note 1 for further information.
2
Comparatives have been restated for presentation changes. Refer to Note 1 for further information.
3
Westpac NZ Operations Limited sold its 25% shareholding in Paymark Limited to Ingenico Group S.A, resulting in a gain on sale of $40 million for the six months
ended 31 March 2019. Refer to Note 9 for details.
Fees and commissions income can be further disaggregated into the following operating segments and is consistent with the segment descriptions
detailed in Note 12:
NZ BANKING GROUP
$ millions
Consumer
Banking and
Wealth
Commercial,
Corporate and
Institutional
Investments and
Insurance
Reconciling
ItemsTotal
Six months ended 31 March 2019 (Unaudited)
Fees and commissions income
Facility fees 15 7 - 3 25
Transaction fees and commissions 53 42 - (1) 94
Other non-risk fee income 5 12 - (4) 13
Fees and commissions income 73 61 - (2) 132
Fees and commissions expenses (28) - - (2) (30)
Net fees and commissions income 45 61 - (4) 102
Six months ended 31 March 2018 (Unaudited)
Fees and commissions income
Facility fees 19 7 - 4 30
Transaction fees and commissions 52 37 - 26 115
Other non-risk fee income 8 14 - 2 24
Fees and commissions income 79 58 - 32 169
Fees and commissions expenses (23) - - (3) (26)
Net fees and commissions income 56 58 - 29 143

Notes to the financial statements
20 Westpac Banking Corporation - New Zealand Banking Group
Note 4 Impairment charges/(benefits)
The following table details impairment charges/(benefits) for the six months ended 31 March 2019 based on the requirements of NZ IFRS 9.
NZ BANKING GROUP
Six Months
Ended
31 Mar 19
$ millionsUnaudited
Provisions raised/(released):
Performing (8)
Non-performing 14
Bad debts written-off/(recovered) directly to the income statement 8
Impairment charges/(benefits) 14
of which relates to:
Loans and credit commitments 14
Investment securities -
Impairment charges/(benefits) 14
Impairment charges/(benefits) on all other financial assets are not material to the NZ Banking Group.
As comparatives have not been restated for the adoption of NZ IFRS 9, the following table details impairment charges/(benefits) for the six
months ended 31 March 2018 based on the requirements of NZ IAS 39. In subsequent reporting periods, as NZ IFRS 9 will have been effective for
this disclosure for all periods presented in the Disclosure Statement, this table will no longer be required.
NZ BANKING GROUP
Six Months
Ended
31 Mar 18
$ millionsUnaudited
Individually assessed provisions raised 19
Reversal of previously recognised impairment charges (4)
Collectively assessed provisions raised/(released) 5
Bad debts written-off/(recovered) directly to the income statement 7
Total impairment charges/(benefits) 27
Note 5 Loans
NZ BANKING GROUP
31 Mar 19
1,2
30 Sep 18
2
$ millions
UnauditedAudited
Residential mortgages 49,584 48,893
Other retail 3,807 3,928
Corporate 29,344
28,085
Other 94
278
Total gross loans 82,829 81,184
Provisions for ECL/provisions for impairment charges on loans (360) (324)
Total net loans 82,469 80,860
1
Reflects the adoption of NZ IFRS 9. Comparatives have not been restated. Refer to Note 1 for further information.
2
The NZ Banking Group has changed the presentation of loan categories for consistency with the types of credit exposures defined in the Reserve Bank Capital
Adequacy Framework (Internal Models Based Approach) (‘BS2B’). This has no effect on the balance sheet or income statement. Comparatives have been restated.
As at 31 March 2019, $7,535 million of housing loans, accrued interest (representing accrued interest on the outstanding housing loans) and cash
(representing collections of principal and interest from the underlying housing loans), were used by the NZ Banking Group to secure the
obligations of Westpac Securities NZ Limited (‘WSNZL’) under Westpac New Zealand’s Global Covered Bond Programme (‘CB Programme’) (30
September 2018: $7,533 million). These pledged assets were not derecognised from the NZ Banking Group’s balance sheet in accordance with the
accounting policies outlined in Note 1 to the financial statements included in the Disclosure Statement for the year ended 30 September 2018.
As at 31 March 2019, the New Zealand dollar equivalent of bonds issued by WSNZL under the CB Programme was $6,198 million (30 September 2018:
$5,656 million).18

Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group 21
Note 6 Provisions for expected credit losses
Loans and credit commitments
The following table reconciles the 31 March 2019 provision for ECL on loans and commitments based on the requirements of NZ IFRS 9.
NZ BANKING GROUP
Unaudited
Performing
Non-
performing
$ millions
Stage 1Stage 2Stage 3
Collectively
assessed
provisions
Individually
assessed
provisionsTotal
Provision for impairment charges as at 30 September 2018 - - - 322 36 358
Restatement for adoption of NZ IFRS 9 103 203 89 (322) (36) 37
Restated provision for ECL as at 1 October 2018 103 203 89 - - 395
Net transfers in/(out) of stages
1
29 (33) 4 -
Reversals of previously recognised impairment charges - - (6) (6)
New financial assets originated 7 - - 7
Financial assets derecognised during the period (6) (20) (7) (33)
Changes in collective provisions due to amounts written off - - (22) (22)
Other charges/(credits) to the income statement
2
(30) 45 45 60
Total charges/(credits) to the income statement for ECL - (8) 14 6
Amounts written off from individually assessed provisions - - (2) (2)
Total provision for ECL on loans and credit commitments as
at 31 March 2019
103 195 101 399
Presented as:
Provision for ECL on loans (Refer to Note 5) 84 176 100 360
Provision for ECL on credit commitments 19 19 1 39
Total provision for ECL on loans and credit commitments as
at 31 March 2019
103 195 101 399
1
Represents the transfers between stages prior to remeasurement of the provision for ECL. The remeasurement of the provision for ECL due to transfers between
stages is included in 'other charges/(credits) to the income statement'.
2
Includes the impact on remeasurement of the provision for ECL due to changes in credit quality, which can result in transfers between stages. Refer to Note 1 for
further detail on model stages. Other impacts include net further lending/repayment, changes in the expected life, changes in future forecast economic
assumptions and other changes in models and assumptions.
The following table explains how changes in gross carrying amounts of loans during the period have contributed to changes in the provisions for
ECL on loans.
NZ BANKING GROUP
Unaudited
Performing
Non-
performing
$ millions
Stage 1Stage 2Stage 3
Total
Total gross carrying amount at the beginning of the period 76,946 3,775 463 81,184
Net transfers in/(out) of stages (434) 292 142 -
Net further lending/repayment (400) 181 (33) (252)
New financial assets originated 6,682 - - 6,682
Financial assets derecognised during the period (4,410) (293) (58) (4,761)
Amounts written-off - - (24) (24)
Total gross carrying amount as at 31 March 2019 78,384 3,955 490 82,829
Provision for ECL as at 31 March 2019 (84) (176) (100) (360)
Total net carrying amount as at 31 March 2019 78,300 3,779 390 82,469

Notes to the financial statements
22 Westpac Banking Corporation - New Zealand Banking Group
Note 6 Provisions for expected credit losses (continued)
As comparatives have not been restated for the adoption of NZ IFRS 9, the following table reconciles the 30 September 2018 provision for
impairment charges on loans and credit commitments based on the requirements of NZ IAS 39. In subsequent reporting periods, as NZ IFRS 9 will
have been effective for this disclosure for all periods presented in the Disclosure Statement, this table will no longer be required.
NZ BANKING GROUP
30 Sep 18
$ millions
Audited
Individually assessed provisions
Balance at beginning of the year 48
Impairment charges/(benefits):
New provisions 28
Reversal of previously recognised impairment charges (18)
Amounts written off (22)
Balance at end of the year 36
Collectively assessed provisions
Balance at beginning of the year 332
Impairment charges/(benefits) (34)
Interest adjustments 24
Balance at end of the year 322
Total provisions for impairment charges on loans and credit commitments 358
Provision for credit commitments (34)
Total provisions for impairment charges on loans (Refer to Note 5) 324
Note 7 Deposits and other borrowings-2 0 4-18
NZ BANKING GROUP
31 Mar 1930 Sep 18
$ millionsUnauditedAudited
Certificates of deposit 896 1,218
Non-interest bearing, repayable at call 6,378 5,903
Other interest bearing:
At call 24,520 23,335
Term 33,320 32,649
Total deposits and other borrowings 65,114 63,105
Deposits and other borrowings have been prepared under both the historical cost convention and by applying fair value accounting to certain
products. Refer to Note 10 for further details.

Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group 23
Note 8 Debt issues
NZ BANKING GROUP
31 Mar 1930 Sep 18
$ millionsUnauditedAudited
Short-term debt
Commercial paper 443 -
Total short-term debt 443 -
Long-term debt
Non-domestic medium-term notes 5,985 6,100
Covered bonds 6,179 5,640
Domestic medium-term notes 2,369 1,985
Total long-term debt 14,533 13,725
Total debt issues 14,976 13,725
Debt issues have been prepared under both the historical cost convention and by applying fair value accounting to certain products. Refer to
Note 10 for further details.
Note 9 Related entities
Controlled entities of the NZ Banking Group are set out in Note 25 to the financial statements included in the Disclosure Statement for the year ended 30
September 2018.
On 11 January 2019, Westpac NZ Operations Limited sold its 25% shareholding in Paymark Limited to Ingenico Group S.A, resulting in a gain on sale of
$40 million which is recognised in other non-interest income. Refer to Note 3.
On 15 February 2019, $370 million of dividends were declared and paid by the following entity:
Westpac New Zealand Group Limited declared and paid a dividend of $370 million to Westpac Overseas Holdings No. 2 Pty Limited.
On 20 March 2019, $67 million of dividends were declared and paid by the following entities:
Westpac Group Investment-NZ-Limited declared and paid a dividend of $4 million pro-rata to the shareholders, Westpac Overseas
Holdings Pty Limited and Westpac Custodian Nominees Pty Limited;
BT Financial Group (NZ) Limited declared and paid a dividend of $25 million to Westpac Equity Holdings Pty Limited; and
Westpac Financial Services Group-NZ- Limited declared and paid a dividend of $38 million to Westpac Equity Holdings Pty Limited.
On 5 July 2017, Westpac New Zealand Staff Superannuation Scheme Trustee Limited registered a Change in Financial Reporting Month with the New
Zealand Companies Office changing the balance date from 31 March to 30 September.

Notes to the financial statements
24 Westpac Banking Corporation - New Zealand Banking Group
Note 10 Fair value of financial assets and liabilities
Fair Valuation Control Framework
The NZ Banking Group uses a Fair Valuation Control Framework where the fair value is either determined or validated by a function independent of
the transaction. This framework formalises the policies and procedures used to achieve compliance with relevant accounting, industry and
regulatory standards. The framework includes specific controls relating to:
the revaluation of financial instruments;
independent price verification;
fair value adjustments; and
financial reporting.
A key element of the Framework is the Revaluation Committee, comprising senior valuation specialists from within the Overseas Banking Group. The
Revaluation Committee reviews the application of the agreed policies and procedures to assess that a fair value measurement basis has been
applied.
The method of determining fair value differs depending on the information available.
Fair value hierarchy
A financial instrument’s categorisation within the valuation hierarchy is based on the lowest level input that is significant to the fair value
measurement. The NZ Banking Group categorises all fair value instruments according to the hierarchy described as follows.
Valuation techniques
The NZ Banking Group applies market accepted valuation techniques in determining the fair valuation of over-the-counter derivatives. This includes
credit valuation adjustments and funding valuation adjustments, which incorporate credit risk and funding costs and benefits that arise in relation to
uncollateralised derivative positions, respectively.
The specific valuation techniques, the observability of the inputs used in valuation models and the subsequent classification for each significant
product category are outlined as follows.
Financial instruments measured at fair value
Level 1 instruments
The fair value of financial instruments traded in active markets based on recent unadjusted quoted prices. These prices are based on actual arm’s
length basis transactions.
The valuations of Level 1 instruments require little or no management judgment.
InstrumentBalance sheet categoryIncludes:Valuation
Exchange traded
products
Derivative financial
instruments
Due from related
entities
Due to related entities
Exchange traded
interest rate futures -
derivative financial
instruments
Foreign exchange
products
Derivative financial
instruments
FX spot contracts
Non-asset
backed debt
instruments
Trading securities and
financial assets
measured at FVIS
Available-for-sale
securities/Investment
securities
Other financial liabilities
New Zealand
Government bonds
These instruments are traded in liquid, active markets where
prices are readily observable. No modelling or assumptions are
used in the valuation.

Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group 25
Note 10 Fair value of financial assets and liabilities (continued)
Level 2 instruments
The f air value for financial instruments that are not actively traded are determined using valuation techniques which maximise the use of observable
market prices. Valuation techniques include:
the use of market standard discounting methodologies;
option pricing models; and
other valuation techniques widely used and accepted by market participants.
InstrumentBalance sheet categoryIncludes:Valuation
Interest rate
products
Derivative financial instruments
Due from related entities
Due to related entities
Interest rate swaps,
and options
– derivative financial
instruments
Industry standard valuation models are used to calculate the
expected future value of payments by product, which is
discounted back to a present value. The model’s interest rate
inputs are benchmark interest rates and active broker quoted
interest rates in the swap, bond and futures markets. Interest
rate volatilities are sourced from brokers and consensus data
providers. If consensus prices are not available, these are
classified as Level 3 instruments.
Foreign exchange
products
Derivative financial instruments
Due from related entities
Due to related entities
FX swaps and FX
forward contracts –
derivative financial
instruments
Derived from market observable inputs or consensus pricing
providers using industry standard models.
Asset backed
debt instruments
Trading securities and financial
assets measured at FVIS
Available-for-sale
securities/Investment securities
Asset backed securities
Valued using an industry approach to value floating rate debt with
prepayment features. The main inputs to the model are the
trading margin and the weighted average life of the security. These
inputs are sourced from a consensus data provider. If consensus
prices are not available, these are classified as Level 3 instruments.
Non-asset backed
debt instruments
Trading securities and financial
assets measured at FVIS
Available-for-sale
securities/Investment
securities
Other financial liabilities
Local authority and NZ
public securities, other
bank issued certificates of
deposit, commercial
paper, other government
securities, off-shore
securities and corporate
bonds
Security repurchase
agreements and reverse
repurchase agreements
over non-asset backed
debt securities with third
parties
Valued using observable market prices which are sourced from
independent pricing services, broker quotes or inter-dealer
prices.
Deposits and
other borrowings
at fair value
Deposits and other borrowingsCertificates of deposit
Discounted cash flow using market rates offered for
deposits of similar remaining maturities.
Debt issues at fair
value
Debt issuesCommercial paper
Discounted cash flows, using a discount rate which reflects
the terms of the instrument and the timing of cash flows
adjusted for market observable changes in the applicable
credit rating of Westpac New Zealand.
Life insurance
assets
Life insurance assets
Local authority securities,
investment grade
corporate bonds, life
insurance contract
liabilities and units in
unlisted unit trusts
Valued using observable market prices or other widely used and
accepted valuation techniques utilising observable market inputs.

Notes to the financial statements
26 Westpac Banking Corporation - New Zealand Banking Group
Note 10 Fair value of financial assets and liabilities (continued)
Level 3 instruments
Financial instruments valued where at least one input that could have a significant effect on the instrument’s valuation is not based on observable
market data due to illiquidity or complexity of the product. These inputs are generally derived and extrapolated from other relevant market data and
calibrated against current market trends and historical transactions.
These valuations are calculated using a high degree of management judgment.
InstrumentBalance sheet categoryIncludes:Valuation
Interest rate
derivatives
Derivative financial
instruments
Non-vanilla interest
rate (inflation
indexed) derivatives
and long-dated NZD
caps
Valued using industry standard valuation models utilising
observable market inputs which are determined separately
for each parameter. Where unobservable, inputs will be set
with reference to an observable proxy.
The table below summarises the attribution of financial instruments measured at fair value to the fair value hierarchy:
NZ BANKING GROUP
31 Mar 19 Unaudited
1
$ millionsLevel 1Level 2Level 3Total
Financial assets measured at fair value
Trading securities and financial assets measured at FVIS 99 3,150 - 3,249
Derivative financial instruments - 3,413 - 3,413
Investment securities 1,053 2,939 - 3,992
Life insurance assets - 295 - 295
Due from related entities 1 539 - 540
Total financial assets measured at fair value 1,153 10,336 - 11,489
Financial liabilities measured at fair value
Deposits and other borrowings at fair value - 896 - 896
Other financial liabilities 106 93 - 199
Derivative financial instruments - 3,972 19 3,991
Due to related entities 1 636 - 637
Debt issues at fair value - 443 - 443
Total financial liabilities measured at fair value 107 6,040 19 6,166
1
Reflects the adoption of NZ IFRS 9. Comparatives have not been restated. Refer to Note 1 for further information.

Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group 27
Note 10 Fair value of financial assets and liabilities (continued)
NZ BANKING GROUP
30 Sep 18 Audited
$ millionsLevel 1Level 2Level 3Total
Financial assets measured at fair value
Trading securities and financial assets measured at FVIS 159 2,857 - 3,016
Derivative financial instruments - 3,509 - 3,509
Available-for-sale securities 1,167 2,643 - 3,810
Life insurance assets - 310 - 310
Due from related entities 1 458 - 459
Total financial assets measured at fair value 1,327 9,777 - 11,104
Financial liabilities measured at fair value
Deposits and other borrowings at fair value - 1,221 - 1,221
Other financial liabilities at fair value 145 78 - 223
Derivative financial instruments - 3,569 - 3,569
Due to related entities 2 642 - 644
Total financial liabilities measured at fair value 147 5,510 - 5,657
There were no material amounts of changes in fair value estimated using a valuation technique incorporating significant non-observable inputs that
were recognised in the income statement or the statement of comprehensive income of the NZ Banking Group during the six months ended 31
March 2019 (30 September 2018: no material changes in fair value).
Analysis of movements between fair value hierarchy levels
During the period, there were no material transfers between levels of the fair value hierarchy (30 September 2018: no material transfers between
levels).
Financial instruments not measured at fair value
The following table summarises the estimated fair value of the NZ Banking Group’s financial instruments not measured at fair value:
NZ BANKING GROUP
31 Mar 19 Unaudited
1,2
30 Sep 18 Audited
2
CarryingCarrying
$ millionsAmount
Fair Value
Amount
Fair Value
Financial assets not measured at fair value
Cash and balances with central banks 2,240 2,240 1,472 1,472
Collateral paid 513 513 180 180
Loans 82,469 82,614 80,860 80,989
Other financial assets 736 736 468 468
Due from related entities
1,695 1,695
1,564 1,564
Total financial assets not measured at fair value 87,653 87,798 84,544 84,673
Financial liabilities not measured at fair value
Collateral received 320 320 591 591
Deposits and other borrowings 64,218 64,262 61,884 61,923
Other financial liabilities 1,589 1,589 1,399 1,399
Due to related entities 1,760 1,769 1,796 1,806
Debt issues
3
14,533 14,658 13,725 13,845
Loan capital
3
2,880 2,775
2,866 2,872
Total financial liabilities not measured at fair value 85,300 85,373 82,261 82,436
1
Reflects the adoption of NZ IFRS 9. Comparatives have not been restated. Refer to Note 1 for further information.
2
In the current year, balances from receivables due from other financial institutions and payables due to other financial institutions have been reclassified to line
items of a similar nature on the balance sheet and to collateral paid and collateral received where relevant. Comparatives have been restated. Refer to Note 1 for
further information.
3
The estimated fair value of debt issues and loan capital include the impact of changes in the NZ Banking Group's credit spreads since origination.
A detailed description of how fair value is derived for financial instruments not measured at fair value is disclosed in Note 27 of the financial statements
included in the Disclosure Statement for the year ended 30 September 2018.5967-2 0 4-18

Notes to the financial statements
28 Westpac Banking Corporation - New Zealand Banking Group
Note 11 Credit related commitments, contingent assets and contingent liabilities
NZ BANKING GROUP
31 Mar 1930 Sep 18
$ millions
UnauditedAudited
Letters of credit and guarantees 1,012 1,104
Commitments to extend credit 24,916 24,722
Other - 60
Total undrawn credit commitments 25,928 25,886
Contingent assets
The credit commitments shown in the table above also constitute contingent assets. These commitments would be classified as loans on the balance
sheet on the contingent event occurring.
Contingent liabilities
The NZ Banking Group has contingent liabilities in respect of actual and potential claims and proceedings. An assessment of the NZ Banking Group’s
likely loss in respect of these matters has been made on a case-by-case basis and provision has been made in these financial statements where
appropriate.
Additional information relating to any provision or contingent liability has not been provided where disclosure of such information might be
expected to seriously prejudice the position of the NZ Banking Group.
Note 12 Segment reporting
The NZ Banking Group operates predominantly in the consumer banking and wealth, commercial, corporate and institutional banking, and
investments and insurance sectors within New Zealand. On this basis, no geographical segment reporting is provided.
The operating segment results have been presented on a management reporting basis and consequently internal charges and transfer pricing
adjustments have been reflected in the performance of each operating segment. Intersegment pricing is determined on a cost recovery basis.
The NZ Banking Group does not rely on any single major customer for its revenue base.
Segment comparative information for the six months ended 31 March 2018 has been restated to ensure consistent presentation with the current
reporting period. This includes adjustments for:
–changes to expense allocations and the Ultimate Parent Bank’s capital allocation framework; and
–NZ IFRS 9 and NZ IFRS 15 that were adopted on 1 October 2018. Segment comparatives have been restated as though the standards were adopted
on 1 October 2017, except for ECL provisioning. This resulted in comparative reclassifications between individual line items that do not impact total
results. These adjustments are also reflected as reconciling items and are comprised of:
–facility fees: NZ Banking Group has reclassified facility fees from non-interest income to net interest income to more appropriately reflect the
relationship with drawn lines of credit;
–other fees and expenses: NZ Banking Group has restated the classification of a number of fees and expenses which has resulted in the
grossing up of non-interest income and operating expenses; and
–interest carrying adjustments: 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 NZ Banking Group’s operating segments are defined by the customers they serve and the services they provide. The NZ Banking Group has
identified the following main operating segments:
–Consumer Banking and Wealth provides financial services predominantly for individuals;
–Commercial, Corporate and Institutional Banking provides a broad range of financial services for commercial, corporate, property finance,
agricultural, institutional and government customers, and the supply of derivatives and risk management products to the entire Westpac
customer base in New Zealand; and
–Investments and Insurance provides funds management and insurance services.

Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group 29
Note 12 Segment reporting (continued)
Other reconciling items primarily represent:
–business units that do not meet the definition of operating segments under NZ IFRS 8 Operating Segments;
–elimination entries on consolidation/aggregation of the results, assets and liabilities of the NZ Banking Group’s controlled entities in the
preparation of the aggregated financial statements of the NZ Banking Group; and
–results of certain business units excluded for management reporting purposes, but included within the aggregated financial statements of the NZ
Banking Group for statutory financial reporting purposes.
NZ BANKING GROUP
ConsumerCommercial,Investments
Banking andCorporate andandReconciling
$ millionsWealth InstitutionalInsuranceItemsTotal
Six months ended 31 March 2019 (Unaudited)
Net interest income578417-16
1,011
Non-interest income71
1057317266
Net operating income before operating expenses and
impairment charges
64952273331,277
Operating expenses(349)(130)(15)-
(494)
Impairment (charges)/benefits(19)5--
(14)
Profit before income tax2813975833769
Six months ended 31 March 2018 (Unaudited) (restated)
Net interest income581388-(26)
943
Non-interest income
84113695271
Net operating income before operating expenses and
impairment charges
66550169(21)1,214
Operating expenses(332)(125)(15)(1)
(473)
Impairment (charges)/benefits(35)(4)-12
(27)
Profit before income tax29837254(10)714
As at 31 March 2019 (Unaudited)
Total gross loans47,11835,646-6582,829
Total deposits and other borrowings37,02427,194-89665,114
As at 30 September 2018 (Audited)
Total gross loans46,60534,550-2981,184
Total deposits and other borrowings36,14725,737-1,22163,105

Registered bank disclosures
Unaudited
Unaudited
30 Westpac Banking Corporation - New Zealand Banking Group
This section contains the additional disclosures required by the Registered Bank Disclosure Statements (Overseas Incorporated Registered Banks)
Order 2014 (as amended).
i. General information
Limits on material financial support by the Overseas Bank
On 19 November 2015, the Australian Prudential Regulation Authority (‘APRA’) informed the Overseas Bank that its Extended Licensed Entity
(‘ELE’) non-equity exposures to New Zealand banking subsidiaries is to transition to be below a limit of 5% of the Overseas Bank’s Level 1 Tier 1
capital, as part of an initiative to reduce Australian bank non-equity exposure to their respective New Zealand banking subsidiaries and branches.
The ELE consists of the Overseas Bank and its subsidiary entities that have been approved by APRA to be included in the ELE for the purposes of
measuring capital adequacy.
APRA has allowed a period of five years commencing on 1 January 2016 to transition to be less than the 5% limit. Exposures for the purposes of
this limit include all committed, non-intraday, non-equity exposures including derivatives and off-balance sheet exposures. For the purposes of
assessing this exposure, the 5% limit excludes equity investments and holdings of capital instruments in New Zealand banking subsidiaries.
While the limit and associated conditions do not apply to the ELE’s non-equity exposures to the NZ Branch (which is within the ELE), the limit and
associated conditions do apply to the NZ Branch’s non-equity exposures to the rest of the NZ Banking Group other than Westpac New Zealand
Group Limited. As at 31 March 2019, the ELE’s non-equity exposures to New Zealand banking subsidiaries affected by the limit were below 5% of
Level 1 Tier 1 capital of the Overseas Bank.
APRA has also confirmed the terms on which the Overseas Bank ‘may provide contingent funding support to a New Zealand banking subsidiary
during times of financial stress’. APRA has confirmed that, at this time, only covered bonds meet its criteria for contingent funding arrangements.
Guarantee arrangements
No material obligations of the Overseas Bank that relate to the NZ Branch are guaranteed as at the date the Directors and the Chief Executive
Officer, NZ Branch signed this Disclosure Statement.
Directors
The Directors of the Overseas Bank at the time this Disclosure Statement was signed were:
Lindsay Philip Maxsted, DipBus (Gordon), FCA, FAICD – Chairman
Brian Charles Hartzer, BA, CFA – Managing Director & Chief Executive Officer
Nerida Frances Caesar, BCom, MBA, GAICD
Ewen Graham Wolseley Crouch AM, BEc (Hons.), LLB, FAICD
Catriona Alison Deans, BA, MBA, GAICD
Craig William Dunn, BCom, FCA
Yuen Mei Anita Fung, BSocSc, MAppFin
Steven John Harker, BEc (Hons.), LLB
Peter Ralph Marriott, BEc (Hons.), FCA
Peter Stanley Nash, BCom, FCA, F Fin
Margaret Leone Seale, BA, FAICD
Changes to Directorate
Yuen Mei Anita Fung was appointed as a director effective 1 October 2018. Peter John Oswin Hawkins ceased to be a director on 12 December 2018.
Steven John Harker and Margaret Leone Seale were each appointed as a director effective from 1 March 2019.
Chief Executive Officer, NZ Branch
Karen Lee Silk, B.Com

Registered bank disclosures
Unaudited
Unaudited
Westpac Banking Corporation - New Zealand Banking Group 31
i. General information (continued)
Responsible person
All the Directors named above have authorised in writing David Alexander McLean, Chief Executive, Westpac New Zealand to sign this Disclosure
Statement on the Directors’ behalf in accordance with section 82 of the Reserve Bank Act.
Auditor
PricewaterhouseCoopers
PricewaterhouseCoopers Tower
188 Quay Street
Auckland, New Zealand
Credit ratings
The Overseas Bank has the following credit ratings with respect to its long-term senior unsecured obligations, including obligations payable in New
Zealand in New Zealand dollars, as at the date the Directors and the Chief Executive Officer, NZ Branch signed this Disclosure Statement:
Rating AgencyCurrent Credit RatingRating Outlook
Fitch Ratings
Moody’s Investors Service (‘Moody’s’)
S&P Global Ratings (‘S&P’)
AA-
Aa3
AA-
Stable
Stable
Negative
Other material matters
Certain matters relating to the business or affairs of the Overseas Bank and the NZ Banking Group have been disclosed on the New Zealand and/or
Australian stock exchanges.
Thematic review of Bank Conduct and Culture
In May 2018, the Financial Markets Authority (‘FMA’) and the Reserve Bank of New Zealand (‘Reserve Bank’) commenced thematic reviews into the
conduct and culture at New Zealand’s retail banks and life insurers. These reviews were established to assess whether misconduct of the type
highlighted by the Australian Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry may be taking place
in New Zealand. The thematic review report concerning the retail banks review was released on 5 November 2018 and the thematic review report
concerning the life insurers was released on 29 January 2019. While no widespread instances of misconduct were identified in the reports, the
regulators were critical of the way in which banks and life insurers are managing conduct and culture risks within their organisations and sought
action plans to address the issues (i) from the banks by the end of March 2019; and (ii) from life insurers by the end of June 2019. Westpac New
Zealand provided its response and action plan by the end of March 2019 and is now awaiting any further feedback from the regulators.
In response to the reviews, the Ministry of Business, Innovation & Employment (‘MBIE’) has also published an options paper on 27 April 2019 which
considers how the conduct of financial institutions could be better regulated. The options outlined in the paper include: the introduction of
overarching duties to govern the conduct of financial institutions; senior management and director accountability for breach of these duties and
measures to address conflicted remuneration, oversight of intermediaries and product suitability. The paper also outlines a range of proposed tools
for enforcing the obligations in the proposed new regime. Submissions on the paper are due on 7 June 2019, with the intention of introducing
legislation to Parliament by the end of 2019.
Reserve Bank Capital Review
The Reserve Bank is undertaking a Bank Capital Adequacy Framework review on the quantum and makeup of bank capital. The Reserve Bank has
now made ‘in principle’ decisions on the risk weighted assets (‘RWA’) framework, including the introduction of dual reporting, a standardised
methodology for operational risk, and capital floors to internal rating models.
On 14 December 2018, the Reserve Bank released a consultation paper to seek the public’s view on a proposal to significantly increase the level of
regulatory capital in the New Zealand system. In the paper, the Reserve Bank proposed to set a Tier 1 capital requirement equal to 16% of RWA for
banks deemed systematically important, such as Westpac New Zealand. The proposal of a Tier 1 ratio of 6% of RWA as a regulatory minimum is
unchanged, and of this no more than 1.5% of RWA can be contributed by Additional Tier 1 capital or redeemable preference shares. The Reserve
Bank have proposed a five year transition period.

Registered bank disclosures
Unaudited
Unaudited
32 Westpac Banking Corporation - New Zealand Banking Group
i. General information (continued)
Other material matters (continued)
The proposed changes aim to further strengthen the New Zealand banking system to protect the economy and depositors from bank failure.
Meeting the Reserve Bank’s proposed minimum 16% Tier 1 capital ratio would require a further estimated $3.5 - 4 billion of Tier 1 capital if applied at
31 March 2019 (assuming that the existing $1.5 billion Additional Tier 1 capital instrument is not eligible to meet future Tier 1 capital requirements).
Westpac New Zealand is already strongly capitalised with a Tier 1 capital ratio of 14.5% at 31 March 2019.
Disclosure statements of the NZ Banking Group and the financial statements of the Overseas Bank and the Overseas
Banking Group
Disclosure Statements of the NZ Banking Group for the last five years are available, free of charge, at the internet address www.westpac.co.nz. A
printed copy will also be made available, free of charge, upon request and will be dispatched by the end of the second working day after the day on
which the request is made.
The most recently published financial statements of the Overseas Bank and the Overseas Banking Group are for the year ended 30 September 2018
and for the six months ended 31 March 2019, respectively, and can be accessed at the internet address www.westpac.com.au.
ii. Additional financial disclosures
Additional information on balance sheet
NZ BANKING GROUP
31 Mar 1930 Sep 18
$ millions
Unaudited Audited
Interest earning and discount bearing assets 94,544 91,003
Interest and discount bearing liabilities 79,798 76,948
Total amounts due from related entities 2,235 2,023
Total amounts due to related entities 3,484 3,575
Total liabilities of the Branch, net of amounts due to related entities 6,889 6,311
Total retail deposits of the Branch - 3
Financial assets pledged as collateral
The NZ Banking Group is required to provide collateral to other financial institutions, as part of standard terms, to secure liabilities. In addition to
assets supporting the CB Programme disclosed in Note 5, the carrying value of these financial assets pledged as collateral is:
NZ BANKING GROUP
31 Mar 1930 Sep 18
$ millions
UnauditedAudited
Cash 513 180
Securities pledged under repurchase agreements:
Trading securities and financial assets measured at FVIS
75 41
Total amount pledged to secure liabilities (excluding CB Programme) 588 221

Registered bank disclosures
Unaudited
Unaudited
Westpac Banking Corporation - New Zealand Banking Group 33
ii. Additional financial disclosures (continued)
Additional information on concentrations of credit risk
NZ BANKING GROUP
$ millions31 Mar 19
On-balance sheet credit exposures consist of
Cash and balances with central banks 2,240
Collateral paid 513
Trading securities and financial assets measured at FVIS 3,249
Derivative financial instruments 3,413
Investment securities 3,992
Loans 82,469
Other financial assets 736
Life insurance assets 7
Due from related entities 2,235
Total on-balance sheet credit exposures 98,854
Analysis of on-balance sheet credit exposures by industry sector
Accommodation, cafes and restaurants 433
Agriculture 8,666
Construction 584
Finance and insurance 9,179
Forestry and fishing 451
Government, administration and defence 7,402
Manufacturing 2,570
Mining 176
Property 6,934
Property services and business services 1,380
Services 2,132
Trade 2,396
Transport and storage 1,243
Utilities 1,981
Retail lending 51,361
Other 2
Subtotal 96,890
Provisions for impairment charges on loans (360)
Due from related entities 2,235
Other financial assets 89
Total on-balance sheet credit exposures 98,854
Off-balance sheet credit exposures consists of
Credit risk-related instruments 25,928
Total off-balance sheet credit exposures 25,928
Analysis of off-balance sheet credit exposures by industry sector
Accommodation, cafes and restaurants 106
Agriculture 596
Construction 499
Finance and insurance 1,557
Forestry and fishing 152
Government, administration and defence 774
Manufacturing 1,525
Mining 164
Property 1,480
Property services and business services 598
Services 679
Trade 1,897
Transport and storage 846
Utilities 1,732
Retail lending 13,323
Total off-balance sheet credit exposures 25,928
Australia and New Zealand Standard Industrial Classification (‘ANZSIC’) has been used as the basis for disclosing industry sectors.

Registered bank disclosures
Unaudited
Unaudited
34 Westpac Banking Corporation - New Zealand Banking Group
ii. Additional financial disclosures (continued)
Additional information on concentrations of funding
NZ BANKING GROUP
$ millions31 Mar 19
Funding consists of
Collateral received 320
Deposits and other borrowings 65,114
Other financial liabilities
1
1,190
Due to related entities
2
1,752
Debt issues
3
14,976
Loan capital 2,880
Total funding 86,232
Analysis of funding by geographical area
3
New Zealand 64,081
Australia 2,876
United Kingdom 9,240
United States of America 2,773
Other 7,262
Total funding 86,232
Analysis of funding by industry sector
Accommodation, cafes and restaurants 364
Agriculture 1,444
Construction 1,777
Finance and insurance 33,268
Forestry and fishing 207
Government, administration and defence 1,862
Manufacturing 1,489
Mining 71
Property services and business services 6,053
Services 4,208
Trade 1,492
Transport and storage 518
Utilities 435
Households 27,007
Other
4
4,285
Subtotal 84,480
Due to related entities
2
1,752
Total funding 86,232
1
Other financial liabilities, as presented above, are in respect of securities sold under agreements to repurchase, securities sold short and interbank placements.
2
Amounts due to related entities, as presented above, are in respect of deposits and borrowings and exclude amounts which relate to derivative financial
instruments and other liabilities.
3
The geographic region used for debt issues is based on the nature of the debt programmes. The nature of the debt programmes is used as a proxy for the location
of the original purchaser. Where the nature of the debt programmes does not necessarily represent an appropriate proxy, the debt issues are classified as 'Other’.
These instruments may have subsequently been on-sold.
4
Includes deposits from non-residents.
ANZSIC has been used as the basis for disclosing industry sectors.

Registered bank disclosures
Unaudited
Unaudited
Westpac Banking Corporation - New Zealand Banking Group 35
ii. Additional financial disclosures (continued)
Additional information on interest rate sensitivity
The following table presents a breakdown of the earlier of the contractual repricing or maturity dates of the NZ Banking Group’s net asset position as at
31 March 2019. The NZ Banking Group uses this contractual repricing information as a base, which is then altered to take account of consumer behaviour,
to manage its interest rate risk.
NZ BANKING GROUP
31 Mar 19
Non-
Overinterest
$ millions
Up to 3
Months
Over 3
Months and
Up to 6
Months
Over 6
Months and
Up to 1 Year
Over 1 Year
and Up to 2
Years
2 YearsBearingTotal
Financial assets
Cash and balances with central banks1,951----2892,240
Collateral paid513-----513
Trading securities and other financial assets
measured at FVIS1,896694184110365-3,249
Derivative financial instruments-----3,4133,413
Investment securities--7531,4121,827-3,992
Loans44,1235,90613,71214,7934,195(260)82,469
Other financial assets411----325736
Life insurance assets43---288295
Due from related entities1,692----5432,235
Total financial assets50,5906,60314,64916,3156,3874,59899,142
Non-financial assets1,038
Total assets100,180
Financial liabilities
Collateral received320-----320
Deposits and other borrowings40,3528,7797,7511,1676876,37865,114
Other financial liabilities1,160----6281,788
Derivative financial instruments-----3,9913,991
Due to related entities 1,726----6712,397
Debt issues6,1122351011,8006,728-14,976
Loan capital1,087---1,793-2,880
Total financial liabilities50,7579,0147,8522,9679,20811,66891,466
Non-financial liabilities273
Total liabilities91,739
On-balance sheet interest rate repricing
gap
(167)(2,411)6,79713,348(2,821)
Net derivative notional principals
Net interest rate contracts (notional):
Receivable/(payable)15,478(5,058)(9,186)(11,562)10,328
Net interest rate repricing gap15,311(7,469)(2,389)1,7867,507

Registered bank disclosures
Unaudited
Unaudited
36 Westpac Banking Corporation - New Zealand Banking Group
ii. Additional financial disclosures (continued)
Additional information on liquidity risk
Contractual maturity of financial liabilities
The table below presents cash flows associated with financial liabilities, payable at the balance sheet date, by remaining contractual maturity. The
amounts disclosed in the table are the future contractual undiscounted cash flows, whereas the NZ Banking Group manages inherent liquidity risk based
on expected cash flows.
Cash flows associated with these financial liabilities include both principal payments, as well as fixed or variable interest payments incorporated into the
relevant coupon period. Principal payments reflect the earliest contractual maturity date. Derivative financial instruments designated for hedging
purposes are expected to be held for their remaining contractual lives, and reflect gross cash flows over the remaining contractual term.
Derivatives held for trading and certain liabilities classified in “Other financial liabilities” are not managed for liquidity purposes on the basis of their
contractual maturity, and accordingly these liabilities are presented in either the on demand or up to 1 month columns. Only the liabilities that the NZ
Banking Group manages based on their contractual maturity are presented on a contractual undiscounted basis in the table below.
NZ BANKING GROUP
31 Mar 19
OnUp to
$ millionsDemand1 Month
Over 1
Month and
Up to 3
Months
Over 3
Months and
Up to 1 Year
Over 1 Year
and Up to 5
Years
Over 5
Years
Total
Financial liabilities
Collateral received-320----320
Deposits and other borrowings29,6895,79911,46116,9311,977-65,857
Other financial liabilities1,0803861---1,467
Derivative financial instruments:
Held for trading3,340-----3,340
Held for hedging purposes (net settled)-367810921935477
Held for hedging purposes (gross settled):
Cash outflow-1112663,065-3,154
Cash inflow---(22)(2,734)-(2,756)
Due to related entities:
Non-derivative balances1,462-37307-1,779
Derivative financial instruments:
Held for trading 517-----517
Held for hedging purposes (gross settled):
Cash outflow--18501,559-1,627
Cash inflow--(16)(44)(1,440)-(1,500)
Debt issues-101,6123,16510,32840215,517
Loan capital--13361843,0223,255
Total undiscounted financial liabilities36,0886,56213,18220,29813,4653,45993,054
Total contingent liabilities and commitments
Letters of credit and guarantees1,012-----1,012
Commitments to extend credit24,916-----24,916
Total undiscounted contingent liabilities and
commitments
25,928-----25,928

Registered bank disclosures
Unaudited
Unaudited
Westpac Banking Corporation - New Zealand Banking Group 37
ii. Additional financial disclosures (continued)
Liquid assets
The table below shows the NZ Banking Group’s holding of liquid assets and represents the key liquidity information provided to management.
Liquid assets include high quality assets readily convertible to cash to meet the NZ Banking Group’s liquidity requirements. In management’s
opinion, liquidity is sufficient to meet the NZ Banking Group’s present requirements.
NZ BANKING GROUP
$ millions31 Mar 19
Cash and balances with central banks 2,240
Interbank lending 411
Supranational securities 1,652
NZ Government securities 1,189
NZ public securities 1,862
NZ corporate securities 1,873
Residential mortgage-backed securities 3,950
Total liquid assets 13,177
Overseas Banking Group profitability and size
Information on the Overseas Banking Group is from the most recently published financial statements of the Overseas Banking Group for the six
months ended 31 March 2019.
Profitability31 Mar 19
Net profit after tax for the six months ended 31 March 2019 (A$ millions)
1
3,176
Net profit after tax for the 12 month period to 31 March 2019 as a percentage of average total assets 0.8%
Total assets and equity31 Mar 19
Total assets (A$ millions)891,062
Percentage change in total assets over the 12 months ended 31 March 2019
2.2%
Total equity (A$ millions)63,935
1
Net profit after tax represents the amount before deductions for net profit attributable to non-controlling interests.
Reconciliation of mortgage-related amounts
The table below provides the NZ Banking Group’s reconciliation between any amounts disclosed in this Disclosure Statement that relate to
mortgages on residential property.
NZ BANKING GROUP
$ millions31 Mar 19
Residential mortgages - total gross loans (as disclosed in Note 5) 49,584
Reconciling items:
Unamortised deferred fees and expenses (169)
Fair value hedge adjustments (65)
Value of undrawn commitments and other off-balance sheet amounts relating to residential mortgages 10,212
Undrawn at default
1
(2,596)
Residential mortgages by LVR (as disclosed in Additional mortgage information in Section iv.)
56,966
1
Estimate of the amount of committed exposure not expected to be drawn by the customer at the time of default.

Registered bank disclosures
Unaudited
Unaudited
38 Westpac Banking Corporation - New Zealand Banking Group
iii. Asset quality
Past due assets
NZ BANKING GROUP
$ millions31 Mar 19
Past due but not individually impaired assets
Less than 30 days past due1,067
At least 30 days but less than 60 days past due136
At least 60 days but less than 90 days past due50
At least 90 days past due10
Total past due but not individually impaired assets1,263
Movements in components of loss allowance and impacts of changes in gross financial assets on loss allowances
Refer to Note 6 for the movements in components of loss allowance and impacts of changes in gross financial assets on loss allowances.
Other asset quality information
The NZ Banking Group had undrawn commitments of $22 million (30 September 2018: $4 million) to counterparties for whom drawn balances are
classified as individually impaired assets under corporate loans as at 31 March 2019.
The NZ Banking Group does not have other assets under administration as at 31 March 2019.
Overseas Banking Group asset quality
Information on the Overseas Banking Group is from the most recently published financial statements of the Overseas Banking Group for the six months
ended 31 March 2019.
31 Mar 19
Total non-performing assets
1, 2
(A$ millions)6,271
Total non-performing assets expressed as a percentage of total assets 0.7%
Total provision for ECL on non-performing assets (A$ millions)
3
1,358
Total provision for ECL on non-performing assets expressed as a percentage of total non-performing assets21.7%
Total provision for ECL on performing assets (A$ millions)
4
2,637
1
Total non-performing assets are before allowances for ECL and net of interest held in suspense. The term “non-performing assets” is used interchangeably with
“impaired assets” for the purposes of the Order.
2
Non-financial assets have not been acquired through the enforcement of security.
3
Includes provisions for ECL on loans and credit commitments.
4
Includes provisions for ECL on loans, credit commitments and debt securities.

Registered bank disclosures
Unaudited
Unaudited
Westpac Banking Corporation - New Zealand Banking Group 39
iv. Credit and market risk exposures and capital adequacy
Additional mortgage information
The NZ Banking Group’s residential mortgages by loan-to-value ratio (‘LVR’) as at 31 March 2019
LVRs are calculated as the current exposure divided by the NZ Banking Group’s valuation of the residential security at origination.
For loans originated from 1 January 2008, the NZ Banking Group utilises data from its loan system. For loans originated prior to 1 January 2008,
the origination valuation is not separately recorded and is therefore not available for disclosure. For these loans, the NZ Banking Group utilises its
dynamic LVR process to estimate an origination valuation.
Exposures for which no LVR is available have been included in the ‘Exceeds 90%’ category in accordance with the requirements of the Order.
NZ BANKING GROUP
31 Mar 19
LVR range ($ millions)
Does not
exceed 60%
Exceeds 60%
and not 70%
Exceeds 70%
and not 80%
Exceeds 80%
and not 90%Exceeds 90%
Total
On-balance sheet exposures 21,196 11,860 12,073 2,619 1,602 49,350
Undrawn commitments and other off-balance
sheet exposures 5,286 1,191 830 125 184 7,616
Value of exposures 26,482 13,051 12,903 2,744 1,786 56,966
Market risk
Market risk notional capital charges
The NZ Banking Group’s aggregate market risk exposure is derived in accordance with the Reserve Bank document ‘Capital Adequacy Framework
(Standardised Approach) (BS2A)’(‘BS2A’) and is calculated on a six monthly basis. The end-of-period aggregate market risk exposure is calculated
from the period end balance sheet information.
For each category of market risk, the NZ Banking Group’s peak end-of-day aggregate capital charge is derived by determining the maximum over
the six months ended 31 March 2019 of the aggregate capital charge for that category of market risk at the close of each business day derived in
accordance with BS2A.
The following table provides a summary of the NZ Banking Group’s notional capital charges by risk type as at the reporting date and the peak end-
of-day notional capital charges by risk type for the six months ended 31 March 2019:
NZ BANKING GROUP
31 Mar 19
$ millions
Implied risk-weighted exposureNotional capital charge
End-of-period
Interest rate risk
3,418 273
Foreign currency risk
30 2
Equity risk
- -
Peak end-of-day
Interest rate risk
5,244 420
Foreign currency risk
33 3
Equity risk
- -

Registered bank disclosures
Unaudited
Unaudited
40 Westpac Banking Corporation - New Zealand Banking Group
iv. Credit and market risk exposures and capital adequacy (continued)
Overseas Bank and Overseas Banking Group capital adequacy
The table below represents the capital adequacy calculation for the Overseas Banking Group and Overseas Bank as at 31 March 2019 based on the
Australian Prudential Regulation Authority’s (‘APRA’) application of the Basel III capital adequacy framework.
%
31 Mar 1931 Mar 18
Overseas Banking Group (excluding entities specifically excluded by APRA regulations)
1, 2
Common Equity Tier 1 capital ratio 10.6 10.5
Additional Tier 1 capital ratio 2.2 2.3
Tier 1 capital ratio 12.8 12.8
Tier 2 capital ratio 1.8 2.0
Total regulatory capital ratio 14.6 14.8
Overseas Bank (Extended Licensed Entity)
1, 3
Common Equity Tier 1 capital ratio 10.7 10.4
Additional Tier 1 capital ratio 2.3 2.4
Tier 1 capital ratio 13.0 12.8
Tier 2 capital ratio 1.8 2.1
Total regulatory capital ratio 14.8 14.9
1

The capital ratios represent information mandated by APRA. The capital ratios of the Overseas Banking Group are publicly available in the Overseas Banking Group’s
Pillar 3 report. This information is made available to users via the Overseas Bank’s website (www.westpac.com.au).
2

Overseas Banking Group (excluding entities specifically excluded by APRA regulations) comprises the consolidation of the Overseas Bank and its subsidiary entities
except those entities specifically excluded by APRA regulations for the purposes of measuring capital adequacy (Level 2). The head of the Level 2 group is the Overseas
Bank.
3

Overseas Bank (Extended Licensed Entity) comprises the Overseas Bank and its subsidiary entities that have been approved by APRA as being part of a single Extended
Licensed Entity for the purposes of measuring capital adequacy (Level 1).
Under APRA’s Prudential Standards, Australian authorised deposit taking institutions (‘ADI’), including the Overseas Banking Group are required to
maintain minimum ratios of capital to RWA, as determined by APRA. For the calculation of RWAs, the Overseas Banking Group is accredited by APRA
to apply advanced models permitted by the Basel III global capital adequacy regime. The Overseas Banking Group uses the Advanced Internal Ratings
Based (‘Advanced IRB’) approach for credit risk, the Advanced Measurement Approach (‘AMA’) for operational risk and the internal model approach
for interest rate risk in the banking book for calculating regulatory capital. APRA’s prudential standards are generally consistent with the International
Regulatory Framework for Banks, also known as Basel III, issued by the Basel Committee on Banking Supervision (‘BCBS’), except where APRA has
exercised certain discretions.
The Overseas Banking Group is required to disclose additional detailed information on its risk management practices and capital adequacy on a
quarterly basis. This information is made available to users via the Overseas Banking Group’s website (www.westpac.com.au).
The Overseas Banking Group (excluding entities specifically excluded by APRA regulations), and the Overseas Bank (Extended Licensed Entity as
defined by APRA), exceeded the minimum capital adequacy requirements as specified by APRA as at 31 March 2019.
v. Insurance business
The following table presents the aggregate amount of the NZ Banking Group’s insurance business conducted through one of its controlled entities,
Westpac Life-NZ- Limited, calculated in accordance with the Overseas Bank’s (the registered bank) conditions of registration as at the reporting
date.
NZ BANKING GROUP
$ millions31 Mar 19
Total assets of insurance business 197
As a percentage of total consolidated assets of the NZ Banking Group0.20%

Conditions of registration
Westpac Banking Corporation - New Zealand Banking Group 41
Conditions of registration
Westpac New Zealand conditions of registration
In February 2017 the Reserve Bank required Westpac New Zealand to obtain an independent review of its compliance with advanced internal
rating-based aspects of the Reserve Bank’s Capital Adequacy Framework (Internal Models Based Approach)(‘BS2B’). Following the independent
review, the Reserve Bank increased the minimum total capital ratio, tier 1 capital ratio and common equity tier 1 capital ratio for Westpac New
Zealand and its controlled entities to above 15.1%. As at 31 March 2019, the total capital ratio for Westpac New Zealand and its controlled entities
is 16.5%. Westpac New Zealand is making good progress with remediating the non-compliance issues.
Westpac New Zealand has disclosed matters of non-compliance with BS2B (compliance with which is a condition of registration for Westpac New
Zealand) in its Disclosure Statements since September 2016. In particular, Westpac New Zealand has disclosed that when calculating LVRs for less
than one percent of its residential mortgages by loan value, Westpac New Zealand uses total committed exposure rather than EAD for capital
adequacy purposes and for less than 5% of accounts by number, it uses an updated calculation of the security value and not the origination value.
These limitations on Westpac New Zealand’s LVR calculations are reflected in the LVR values disclosed by the NZ Banking Group in Registered
Bank Disclosures Section iv.
Westpac New Zealand has also disclosed non-compliance with its condition of registration 25 relating to the Reserve Bank’s BS11: Outsourcing
Policy in its disclosure statement for the six months ended 31 March 2019.
These matters have no impact on the compliance by the Overseas Bank with its conditions of registrations.
Changes to conditions of registration
On 20 December 2018, the Reserve Bank advised the Overseas Bank of changes to its conditions of registration. The following changes came into
effect on 1 January 2019:
a limit of 5 per cent on new lending carried out in the relevant measurement period for residential property investment applies where the
LVR is greater than 70 per cent (previously, the required LVR was 65 per cent);
a limit of 20 percent (previously, the required limit was 15 per cent) on new non-residential property investment lending carried out in the
measurement period where the LVR is greater than 80 per cent; and
refers to a revised version of “Framework for Restrictions on High-LVR Residential Mortgage Lending” (‘BS19’), to make a minor amendment
to the construction loan exemption related to Kiwibuild.

42 Westpac Banking Corporation - New Zealand Banking Group
Independent auditor’s review report
To the Directors of Westpac Banking Corporation
Report on the Disclosure Statement
We have reviewed pages 5 to 29 and pages 32 to 40 of the Disclosure Statement for the six months ended 31 March
2019 (the “Disclosure Statement”) of Westpac Banking Corporation, which includes the financial statements of
Westpac Banking Corporation – New Zealand Banking Group (“NZ Banking Group”) required by Clause 26 of the
Registered Bank Disclosure Statements (Overseas Incorporated Registered Banks) Order 2014 (as amended) (the
“Order”) and the supplementary information required by Schedules 5, 7, 9, 12 and 14 of the Order. The NZ Banking
Group comprises the New Zealand operations of Westpac Banking Corporation.
The financial statements on pages 5 to 29 comprise the balance sheet as at 31 March 2019, the income statement,
the statement of comprehensive income, the statement of changes in equity and the statement of cash flows for the
six months then ended, and the notes to the financial statements that include a statement of accounting policies and
other explanatory information.
The supplementary information is included within notes 3, 5 and 6 of the financial statements and notes ii to v of
the registered bank disclosures.
Directors’ responsibility for the Disclosure Statement
The Directors of Westpac Banking Corporation (the “Directors”) are responsible, on behalf of Westpac Banking
Corporation, for the preparation and fair presentation of the Disclosure Statement, which includes financial
statements prepared in accordance with Clause 26 of the Order and for such internal control as the Directors
determine is necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
In addition, the Directors are responsible, on behalf of Westpac Banking Corporation, for the preparation and fair
presentation of the supplementary information in the Disclosure Statement which complies with Schedules 3, 5, 7,
9, 12 and 14 of the Order.
Our responsibility
Our responsibility is to express the following conclusions on the financial statements and supplementary
information presented by the Directors based on our review:
the financial statements (excluding the supplementary information): whether, in our opinion on the basis of
the procedures performed by us, anything has come to our attention that would cause us to believe that the
financial statements have not been prepared, in all material respects, in accordance with New Zealand
Equivalent to International Accounting Standard 34: Interim Financial Reporting (NZ IAS 34) and
International Accounting Standard 34: Interim Financial Reporting (IAS 34);
the supplementary information (excluding the supplementary information relating to credit and market risk
exposures and capital adequacy): whether, in our opinion on the basis of the procedures performed by us,
anything has come to our attention that would cause us to believe that the supplementary information does not
fairly state the matters to which it relates in accordance with Schedules 5, 7, 12 and 14 of the Order; and
the supplementary information relating to credit and market risk exposures and capital adequacy: whether, in
our opinion on the basis of the procedures performed by us, anything has come to our attention that would
cause us to believe that the supplementary information is not, in all material respects, disclosed in accordance
with Schedule 9 of the Order.
PricewaterhouseCoopers, 188 Quay Street, Private Bag 92162, Auckland 1142, New Zealand
T: +64 9 355 8000, F: +64 9 355 8001, pwc.co.nz

Westpac Banking Corporation - New Zealand Banking Group 43
We conducted our review in accordance with the New Zealand Standard on Review Engagements 2410: Review of
Financial Statements Performed by the Independent Auditor of the Entity (NZ SRE 2410). As the auditor of the
NZ Banking Group, NZ SRE 2410 requires that we comply with the ethical requirements relevant to the audit of
the annual financial statements.
A review in accordance with NZ SRE 2410 is a limited assurance engagement. The auditor performs procedures,
primarily consisting of making enquiries, primarily of persons responsible for financial and accounting matters,
and applying analytical and other review procedures. The procedures performed in a review are substantially less
than those performed in an audit conducted in accordance with International Standards on Auditing (New
Zealand) and International Standards on Auditing. Accordingly, we do not express an audit opinion on the
financial statements and supplementary information.
We are independent of the NZ Banking Group. Our firm carries out other services for the NZ Banking Group in
the areas of other assurance services and agreed procedures relating to the issuance of comfort letters on debt
issuance programmes and other regulatory and compliance matters. In addition, certain partners and employees
of our firm may deal with the NZ Banking Group on normal terms within the ordinary course of trading activities
of the NZ Banking Group. These matters have not impaired our independence as auditor of the NZ Banking
Group.
Conclusion
We have examined the financial statements and supplementary information and based on our review, nothing has
come to our attention that causes us to believe that:
a)the
financial statements (excluding the supplementary information) have not been prepared, in all material
respects, in accordance with NZ IAS 34 and IAS 34;
b)the
supplementary information that is required to be disclosed under Schedules 5, 7, 12 and 14 of the Order,
does not fairly state the matters to which it relates in accordance with those Schedules; and
c)the supplementary information relating to credit and market risk exposures and capital adequacy that is
required to be disclosed under Schedule 9 of the Order is not, in all material respects, disclosed in
accordance with Schedule 9 of the Order.
Who we
report to
This report is made solely to the Directors, as a body. Our review work has been undertaken so that we might state
those matters which we are required to state to them in our review report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone other than Westpac Banking
Corporation and the Directors, as a body, for our review procedures, for this report, or for the conclusions we have
formed.
For and on behalf of:
Chartered
AccountantsAuckland
29 May 2019