Westpac Banking Corporation/Announcement

Westpac FY19 Presentation and Investor Discussion Pack

Investor Presentation3 November 2019WBCFinancials

Westpac
2019 Full Year
Results Index

Image on front and left
Westpac’s ‘Baker of Beirut’ campaign;
helping people when it matters.
2019 Full Year Result Presentation 3
Investor Discussion Pack of 2019 Full Year Result 34
Strategy 35
Overview
Performance discipline
Service leadership
Digital transformation
40
45
47
50
Governance and Culture 62
Earnings drivers
Revenue
Expenses
Impairments
72
73
76
78
Credit quality 79
Capital, Funding and Liquidity 101
Divisional results
Consumer
Business
Westpac Institutional Bank
Westpac New Zealand
111
112
116
121
124
Economics 130
Appendix and Disclaimer 146
Contact us 155
Disclaimer 156

Brian Hartzer
Chief Executive Officer
Financial results throughout this presentation are in Australian dollars and are based on cash earnings unless
otherwise stated. Refer page 42 for definition. Results principally cover the 2H19, 1H19 and 2H18 periods.
Comparison of 2H19 versus 1H19 (unless otherwise stated)

2019 Results – Overview
4
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
• Result reflects the challenging environment
• Prioritising strength
• Acting decisively to reshape our business
• Delivering on our strategic priorities
• Positioning for the digital future

Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
FY19 earnings snapshot
1 Prior year cash earnings comparatives have been restated for the impacts of AASB 9 & AASB 15. 2 Cash earnings is a measure of profit generated from ongoing operations for further detail see slide 42. 3 Cash EPS is cash earnings divided by
weighted average ordinary shares. 4 Return on equity is cash earnings divided by average ordinary equity. 5 Cash earnings basis. 6 Full year 2019 Dividend per share 174c. 7 Notable items include provisions for estimated customer refunds,
payments, associated costs, and litigation, along with costs associated with restructuring of the Group’s wealth business. For further details see slide 41. Each remediation program has its own methodology. These methodologies and estimates may
change over time as further facts emerge and may require additional provisions.

FY19
Change
FY19 – FY18
1
Change
2H19 – 1H19
1
Reported net profit $6,784m (16%) 14%
Cash earnings
2
$6,849m (15%) 8%
Cash EPS
3

198.2c (16%) 7%
Return on equity
4,5
10.8% (225bps) 63bps
Margin (excl. Treasury & Markets)
5
2.04% (7bps) –
Expense to income ratio
5
48.6% Large (261bps)
Dividend per share (2H19)
6

80c (7%) (15%)
Cash earnings excluding notable items
7
Cash earnings
2
$7,979m (4%) (3%)
Cash EPS
3
230.9c (6%) (4%)
Return on equity
4
12.5% (94bps) (59bps)
Margin (excl. Treasury & Markets)
5
2.08% (4bps) (2bps)
Expense to income ratio
5
43.9% 113bps 38bps
5

Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
FY19 divisional snapshot
1 Notable items include provisions for estimated customer refunds, payments, associated costs, and litigation, along with costs associated with restructuring of the Group’s wealth business. For further details see slide
41. Each remediation program has its own methodology. These methodologies and estimates may change over time as further facts emerge and may require additional provisions.
Cash earnings

FY19 ($m)
% Change FY19 – FY18

As reported

Excl. notable items
1

Consumer $3,288 (4%) (6%)
Business $2,431 (12%) (2%)
Westpac Institutional Bank $1,014 (7%) (7%)
New Zealand (NZ$) $1,042 3% 4%
Group Businesses ($869) Large Large
6

Prioritising strength – Key ratios
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
Liquidity ratios
1
(%)
Impaired assets to gross loans
2
(%)

Common equity tier 1 (ratio % and $bn)
Stressed exposures to total committed exposure (%)
7
2.17
1.60
1.24
0.99
1.20
1.05
1.08
1.10
1.20
Sep-12Sep-13Sep-14Sep-15Sep-16Sep-17Sep-18Mar-19Sep-19
25
28
30
34
39
43
45
45
46
8.2
9.1
9.0
9.5
9.5
10.6
10.6
10.6
10.7
3
4
5
6
7
8
9
10
11
12
15
20
25
30
35
40
45
50
55
Sep-12Sep-13Sep-14Sep-15Sep-16Sep-17Sep-18Mar-19Sep-19
$bnRatio (%)
124
133
138
127
109
114
113
112
Sep-17Sep-18Mar-19Sep-19
LCRNSFR
1 LCR is liquidity coverage ratio, NSFR is net stable funding ratio. 2 Peer 1 and 2 based on FY19 results as reported on a continuing operations basis. Peer 3 based on 1H19 results as reported.
0.33
0.48
0.26
0.25
Peer 1Peer 2Peer 3WBC

Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
1 RWA is risk weighted assets. 2 Assumes $500m to be raised under the SPP – the actual amount raised could be more or less.
• CET1 capital ratio was little changed over FY19 (up 4bps).
However, CET1 capital ratio was impacted by ~75 bps from
‒Operational risk overlays (CGA self-assessment,
standardised model top-up)
‒New standardised model for derivatives RWA
1
‒Customer remediation provisions and costs associated
with the exit of financial planning
• Expect to raise around $2.5bn of capital
2
via an underwritten
institutional placement and a non-underwritten share
purchase plan (SPP)
• Increases buffer over APRA’s unquestionably strong
benchmark and gives additional capacity to respond to
‒Potential litigation or regulatory actions
‒RBNZ and APRA capital changes
‒Customer growth
8
10.67
0.58 11.25
Sep-19Capital
expected to
be raised
Sep-19
pro forma
1
Common equity Tier 1 capital –
Pro forma (%)
Prioritising strength – Capital
2

Prioritising strength – Reset dividend
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
1 2H19 assumes DRP participation rate of 10%.
Dividend payout ratio (%)
Dividends per ordinary share (cents)
Dividend considerations
9
• Reset dividend to reflect capital raising, increase in
shares on issue, and lower earnings per share
• Final dividend of 80 cents per share, down 14
cents per share or 15% lower than both the 2019
interim dividend and the 2018 final dividend
• 2H19 dividend represents a payout ratio of 79%;
excluding notable items 71%
• Payout ratio excluding notable items is within the
sustainable medium-term range of 70-75%
• Dividend yield of 5.4% (closing share price of
$29.64 at 30 September 2019)
• Franking surplus of $1.6bn

1
94 94 94 94 94 94 94
80
1H162H161H172H171H182H181H192H19
80
80
79
79
76
85
98
79
72
72
51
71
68
76
63
71
80
1H162H161H172H171H182H181H192H19
Cash earnings basis
Effective (after DRP)
Cash earnings excl. notable items
70-75% sustainable
medium term range

1 Australian ATMs. 2 At 1 November 2019. 3 Since 2017.
10
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
Portfolio
actions
Deal with
outstanding
issues
Structural
efficiency
Acting decisively to reshape our business
Wealth reset
• Exited our financial planning business
• BT integrated into Consumer and Business
Distribution
• Consolidated 61 branches and 349 ATMs
1
• Agreement to sell most Australian offsite ATMs
• New State based, multi-brand management structure
(Business & Consumer)
Royal Commission

• 49 recommendations presently applicable to Westpac
‒11 implemented, 11 underway
‒27 awaiting legislation/regulatory action
CGA self-assessment
• ~40% of recommendations implemented
2
Remediation
• Significant provisions raised
• New remediation hub, with over 500k
3
customers refunded
Cost delivery
• $405m productivity savings
• 5% FTE reduction

Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
Delivering on our strategic priorities
1 NPP payments by value.

11
• New State based structure reinforces accountability
• New operating rhythm focused on execution to drive performance metrics
• Significant investment in risk, compliance, financial crime and customer
complaints systems and capabilities
• # 1 NPS in commercial, SME, and Micro business
• # 2 NPS in consumer for most of the year
• Strong service ethos and disciplines in place (e.g. complaints resolution)
• “Help when it matters” brand campaign supporting customer growth
• Customer Service Hub (CSH) rolled out for Westpac 1
st
party mortgages
• Panorama build complete; fastest-growing platform in market ($23bn in FUA)
• New Payments Platform complete; ~40% of all payments
1
in the market
•
No Severity 1 incidents in FY19
Performance
disciplines
Service
leadership
Digital
transformation

Positioning for the digital future – Innovation
12
1 See page 153 for definitions. 2 Subject to outstanding industry issues and testing being completed in a timely manner. 3 Zip offers point-of-sale credit and digital payment services. 4 Uno is an online mortgage broker.
5 Committed capital.
• Digital sales now ~40% of total
1

• St.George digital mortgage
• Digital Institutional Bank (DIB)
• Enhanced online Term Deposit
renewals
• EasyID (NZ account opening)
• New AI chat-bot ‘Red’
• Ready for Open Banking (Feb 2020)
2
• Customer Service Hub rolled out
(Westpac 1
st
party mortgages)
• 80% of mortgages settled
electronically (PEXA)
• Enterprise Workflow System
• Reinventure portfolio now $150m
5
• Direct investments: Zip, Uno and
planned investment in 10x
• Well positioned to expand
partnerships across fintech
ecosystem

Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
4
3
Customer Service Hub
Digital experience Automation Fintech partnerships

Positioning for the digital future – Technology
13
In production (examples) To be done
Products
Customer
Origination and
Analytics
Infrastructure
Channel
Systems
• Mobile Banking
• Banker dashboard
• ‘Red’ (AI chatbot)
• CSH built; Westpac 1
st
party mortgages
• Group data platform (DDEP)
• Open Banking Phase 1
• Panorama
• New Payments Platform
• Enterprise Workflow
• Hybrid cloud environment
• Network backbone upgrade
• Worksmarter (desktop)
•
OneConference (video, voice calls)
• Human Digital
Connections (call centre)
• St.George digital
mortgage
• Mobile banking 2.0 (2020)
• Digital mortgage (Westpac)
• Digital Institutional Bank enhancements
• Investment platform consolidation
• Digital banking platform 10x
• Financial markets systems
• Core banking consolidation
• Continued cloud migration
• State-of-the-art command centre
• Complete network upgrades
• Real time data and insights (2Q20)
• CSH – other consumer products/channels
• Open Banking Phase 2
• Risk and compliance system upgrades
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack

Peter King
Chief Financial Officer
Financial results throughout this presentation are in Australian dollars and are based on cash earnings unless
otherwise stated. Refer page 42 for definition. Results principally cover the 2H19, 1H19 and 2H18 periods.
Comparison of 2H19 versus 1H19 (unless otherwise stated)

8,065
281 8,346
5
16
18
213 7,979
(619)
(1,130)
6,849
FY18FY18
notable items
FY18 excl.
notable items
Net interest
income
Non-interest
income
ExpensesImpairment
charges
Tax
& NCI
FY19 excl.
notable items
FY19
notable items
FY19
Results down 15%
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
1 Notable items include provisions for estimated customer refunds, payments, associated costs, and litigation, along with costs associated with restructuring of the Group’s wealth business. For further details see slide 41. Each remediation program
has its own methodology. These methodologies and estimates may change over time as further facts emerge and may require additional provisions. 2 NCI is non-controlling interests.
Cash earnings movements ($m) FY19 – FY18
15
Down 4%

Down 15%
1.Hastings, Advice & Ascalon $308m
2.Lower insurance income $116m
3.Lower super, platforms and investments $91m
2
1
1
1
1

3,296
753 4,049
95
56 3,930
(106)
(36)
(128)
(377)
3,553
1H191H19
notable items
1H19 excl.
notable items
Net interest
income
Non-interest
income
ExpensesImpairment
charges
Tax
& NCI
2H19 excl.
notable items
2H19
notable items
2H19
2H19 earnings up 8%,
down 3% excl. notable items
1

Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
1 Notable items include provisions for estimated customer refunds, payments, associated costs, and litigation, along with costs associated with restructuring of the Group’s wealth business. For further details see slide 41. Each remediation program
has its own methodology. These methodologies and estimates may change over time as further facts emerge and may require additional provisions. 2 NCI is non-controlling interests.

Cash earnings movements ($m) 2H19 – 1H19
16
Down 3%

Up 8%
2
1
1
1
1

Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
Notable/infrequent/volatile items
17
Infrequent/volatile items ($m after tax)
Notable items
1
– by area ($m after tax)
Wealth reset update
2H18 1H19 2H19
Wealth

(141) (484) (194)
Banking

(140) (133) (147)
Wealth reset – (136) (36)
Total (281) (753) (377)
2H18 1H19 2H19
Asset sales – 41 42
Fund manager revaluations

(13) – –
Group CVA
2
13 (11) (41)
Total cash earnings impact – 30 1
Infrequent/volatile items detail
• Spent or provisioned $241m (pre-tax) in FY19
• Continue to expect exit costs of $250-300m
• 157 employees moved to Viridian
• Around 14,000 individual customers moved to Viridian

• 2H19 Group CVA includes $41m (pre-tax) revised
methodologies
• Major asset sales (pre tax) included:
–2H19: CBD branch $43m, financial planning $10m
–1H19: Paymark NZ$40m, Ascalon $3m

1 Notable items include provisions for estimated customer refunds, payments, associated costs, and litigation, along with costs associated with restructuring of the Group’s wealth business. For further details see slide 41. Each remediation program
has its own methodology. These methodologies and estimates may change over time as further facts emerge and may require additional provisions. 2 CVA is credit valuation adjustment.

Australian mortgage growth slowed
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack

1H18 2H18 1H19 2H19
Owner occupied
3 3 2 2
Investor
2 1 – (1)
Fixed rate (% of flow)

30 23 36 35
Mortgage portfolio mix (%)
Mortgage growth (%)
18
Net mortgage growth ($bn)
Mortgage flows ($bn)
Mar-18 Sep-18 Mar-19 Sep-19
Principal & interest
56 61 66 70
Interest only

40 35 31 27
Line of credit

4 4 3 3
10.1
7.5
2.5
2.0
1H182H181H192H19
17.4
16.5
13.6
17.0
13.6
(15.7)
(15.2)
(12.4)
(12.2)
(16.4)
4Q181Q192Q193Q194Q19
New flowsRun-off

Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
Margins well managed
1 Notable items include provisions for estimated customer refunds, payments, associated costs, and litigation, along with costs associated with restructuring of the Group’s wealth business. For further details see slide
41. Each remediation program has its own methodology. These methodologies and estimates may change over time as further facts emerge and may require additional provisions. 2 Benchmark is based on market
rates with terms consistent with the duration of the term deposits. 3 Tractor is the 3 year moving average hedge rate for hedges on capital and low rate deposits.
19
Net interest margin (bps)
Certain capital/deposit balances
30 Sept 19 ($bn)
2.04
2.09
2.07
2.04
0.08
0.08
0.09
0.09
2.12
5bps 2.17
1bp (6bps) 6bps (1bp)
(2bps)
1bp 2.16 (3bps)
2.13
1H191H19
notable
items
1H19 excl.
notable
items
LoansCustomer
deposits
Short term
wholesale
funding
Capital &
other
LiquidityTreasury &
Markets
2H19 excl.
notable
items
2H19
notable
items
2H19
Treasury & Markets impact on NIMNIM excl. Treasury & Markets
Capital hedged (Group)
49
Deposits hedged (Group)
41

Australia at call; rate ≤25bps
95

Australia at call; rate 26bps
to <75bps
28

Down 1bp
0%
1%
2%
3%
Oct-15Oct-16Oct-17Oct-18Oct-19
3 year swap rate (spot)Tractor
TD portfolio cost over
benchmark
2
(%)
Tractor rate
3
(%)
0.00%
0.25%
0.50%
0.75%
1.00%
Sep-15Sep-16Sep-17Sep-18Sep-19
1 1 1 1

Markets & Treasury
1
income up 6% in 2H19
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
1 Includes net interest income and non-interest income but excludes derivative valuation adjustments.
20
Markets customer income ($m) Markets non-customer and Treasury income ($m)
465
447
482
436
448 448
438
455
1H162H161H172H171H182H181H192H19
404
395
406
277
412
335
235
282
142
89
247
72
162
60
127
114
546
484
653
349
574
395
362
396
1H162H161H172H171H182H181H192H19
Markets non-customer
Treasury

Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
Non-interest income up 16%,
down 5% excl. notable items
1
21
1 Notable items include provisions for estimated customer refunds, payments, associated costs, and litigation, along with costs associated with restructuring of the Group’s wealth business. For further details see slide 41. Each remediation program
has its own methodology. These methodologies and estimates may change over time as further facts emerge and may require additional provisions.
399
372
395
376
325
326
271
274
293
351
325
297
1,017
1,049
1

991
1

947
1

1H182H181H192H19
Cards & merchants
Other fees
Business & institutional
•Cards and merchants (down $28m); higher
reward program costs and lower
interchange revenue
•WIB (down $19m); infrastructure &
syndication
•Lower advice fees
94
89
67
71
294
326
232
272
509
500
459
459
32
180
929
1,095
1

758
1

802
1

1H182H181H192H19
Hastings
Funds
Insurance
Other
•General insurance (up $94m) from lower
claims
•Life insurance (down $55m); TPD claims &
write-off of DAC following Protect Your
Super
507
419
464
443
69
56
101
16
576
475
565
459
1H182H181H192H19
Other
Trading
•Lower trading income from CVA
methodology change (2H19 charge of
$41m)
•Lower other income from revaluation of
financial instruments and other small items
Net Fees 4%
1
Wealth and Insurance 6%
1
Trading and Other 19%
1

9,698
9,586
340
72
7
91
37 9,570
241
220
(112)
(158)
(405)
10,031
FY18 FY18
notable
items
FY18 excl.
notable
items
HastingsBAUStructural
productivity
Reg &
compliance
InvestmentSoftware
amortisation
FXFY19 excl.
notable
items
Wealth
reset
FY19
remediation
FY19
FY19 expenses up 3%,
excl. notable items
1
& FX down 1%
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
1 Notable items include provisions for estimated customer refunds, payments, associated costs, and litigation, along with costs associated with restructuring of the Group’s wealth business. For further details see slide 41. Each remediation program
has its own methodology. These methodologies and estimates may change over time as further facts emerge and may require additional provisions.
Expense movements ($m) FY19 – FY18
22
Up 3%
Down 1% excl. FX
1
1
1

5,041
4,767
135
95
3
59
3 4,803
187
(274)
(259)
4,990
1H191H19
notable
items
1H19 excl.
notable
items
BAUStructural
productivity
Reg &
compliance
InvestmentSoftware
amortisation
FX2H19 excl.
notable
items
2H19
notable
items
2H19
2H19 expenses excl. notable items
1
up 1%
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
1 Notable items include provisions for estimated customer refunds, payments, associated costs, and litigation, along with costs associated with restructuring of the Group’s wealth business. For further details see slide 41. Each remediation program
has its own methodology. These methodologies and estimates may change over time as further facts emerge and may require additional provisions.
Expense movements ($m) 2H19 – 1H19
23
Down 1%
1
1
1
1
Up 1%

Credit quality
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
1 TCE is total committed exposure.
24
Corporate/business stressed exposure by sector ($bn) Stressed exposures as a % of TCE
1
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
Agriculture, forestry &
fishing
Wholesale &
retail trade
Property
Services
Property &
business services
Construction
Manufacturing
Transport & storage
Accommodation, cafes
& restaurants
Finance & insurance
Mining
Utilities
Sep-18
Mar-19
Sep-19
0.58
0.44
0.27
0.20
0.22
0.15 0.15
0.14
0.17
0.17
0.35
0.31
0.26
0.25
0.33
0.34
0.37 0.39
0.43
0.48
1.24
0.85
0.71
0.54
0.65
0.56
0.57 0.55
0.50
0.55
2.17
1.60
1.24
0.99
1.20
1.05
1.09
1.08
1.10
1.20
Sep-12Sep-13Sep-14Sep-15Sep-16Sep-17
Mar-18
Sep-18
Mar-19
Sep-19
Watchlist & substandard
90+ day past due and not impaired
Impaired

Sep-18 Mar-19 Sep-19
30+ day delinquencies
140bps 159bps 161bps
90+ day delinquencies
72bps 82bps 88bps
Customers ahead of repayments
1

69% 69% 70%
Realised mortgage losses
2
($m) 38 51 57
Dynamic LVR (weighted average)
54% 57% 58%
0.0
1.0
2.0
3.0
Sep-15Mar-16Sep-16Mar-17Sep-17Mar-18Sep-18Mar-19Sep-19
90+ day past due total90+ day past due investor
30+ day past due total
0.0
1.0
2.0
3.0
Sep-15Mar-16Sep-16Mar-17Sep-17Mar-18Sep-18Mar-19Sep-19
NSW/ACTVIC/TASQLD
WASA/NTALL
Australian mortgage credit quality
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
Properties in possession (number)

Australian mortgage portfolio characteristics
Australian mortgages 90+ day delinquencies by State (%)

1 Including offset balances. 2 Net of reinsurance costs.
25
141 141
163
210
122
103
133
162
135
152
186
186
398
396
482
558
Mar-18Sep-18Mar-19Sep-19
WA
QLD
Other
Australian mortgage portfolio delinquencies (%)

2H19 Impairment charge 13bps of gross loans
26
Total ($m) Collectively assessed provisions ($m) Individually assessed provisions ($m)
173
198
173
170
(174)
(168)
(150)
(144)
430
428
418
509
15
(90)
(108)
(74)
444
368
333
461
(26)
26
(170)
535
1H182H181H192H191H182H181H192H191H182H181H192H191H182H181H192H191H182H181H192H19
New IAPs
Write-backs
& recoveries
Write-offs
direct

Other movement
in Collective
provisions
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
1 Gross-up of write-offs.
1
1

10.63
10.64
92 (75)
27 (4)
17 (6)
(13)
(14)
(16)
10.67
58
4
~11.25
(5)
Sep-18Mar-19Cash
earnings ex
notable items
1H19
dividend
Dividend
reinvestment
plan
Ordinary
RWA
growth
IRRBB
RWA
Other capital
movements
Notable
items
Derivative
capital
standard
Op Risk
CGA
Overlay
Op Risk
Standardised
Overlay
Sep-19$2.5bn
Capital
raise
Sep-19
Pro forma
CET1 ratio 10.67%
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
1 Notable items include provisions for estimated customer refunds, payments, associated costs, and litigation, along with costs associated with restructuring of the Group’s wealth business. For further details see slide 41. Each remediation program has its own methodology. These
methodologies and estimates may change over time as further facts emerge and may require additional provisions. 2 Dividend reinvestment plan (DRP) reflects 1.5% discount applied for Interim 2019 dividend. 3 The impact of notable items on the CET1 ratio incudes capital deduction for the
associated deferred tax assets. 4 58 basis point increase reflects the impact of the Underwritten Placement $2.0bn and assumes the SPP raises $500m. 5 “Revisions to APS 111 Capital Adequacy: Measurement of Capital” released on 15 October 2019. For this purpose equity investments
includes Additional Tier 1 and Tier 2 capital. 6 63 basis point increase reflects the Level 1 impact of the underwritten $2.0bn Placement and assumes the SPP raises $500 million after allowing for the change to risk weights from the proposed change to APS 111.
CET1 capital ratio (% and bps)
27
Up 3 bps
Organic 51bps Other (48bps)
• Further clarity on revised capital frameworks expected
2019/20
• Impact of AASB16 adoption 1 October 2019 (8bps)
• Well positioned for proposed change to APS111
5
with
pro forma Level 1 CET1 of 11.21%
Considerations Level 1 CET1 capital ratio (% & bps)
1,3
1
2

10.98
63 11.21
(40)
Sep-19APRA proposalCapital expected to
be raised
Sep-19
Level 1 pro forma
Proposed change to APRA
treatment of equity investments
5
6

Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
Considerations for FY20
1

1 The information on this slide contains ‘forward-looking statements’ and statements of expectation reflecting Westpac’s current views with respect to future events. They are subject to change without notice and certain risks, uncertainties and assumptions which are, in many instances, beyond its
control. They have been based upon management's expectations and beliefs concerning future developments and their potential effect upon Westpac. Should one or more of the risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may differ
materially from those expressed or implied in such statements. Investors should not place undue reliance on forward-looking statements and statements of expectation. Except as required by law, Westpac is not responsible for updating, or obliged to update, any matter arising after the date of this
presentation. The information in this slide is subject to the information in Westpac’s ASX filings, including its 2019 Annual Report, and elsewhere in this presentation. 2 Notable items include provisions for estimated customer refunds, payments, associated costs, and litigation, along with costs
associated with restructuring of the Group’s wealth business. For further details see slide 41. Each remediation program has its own methodology. These methodologies and estimates may change over time as further facts emerge and may require additional provisions. 3 Margin for month of
September 2019.
28
Average lending
• Average lending expected to be relatively flat over FY20 as a likely decline in
mortgage balances in 1H20 is offset by expected growth in 2H20
Net interest margin
(excl. Treasury &
Markets and
notable
2
items)
• Margin for September 2019 (exit margin) of 2.04%
3
(2H19 margin of 2.07%)
Non-interest
income
(excluding notable
items )
• Banking fees expected to reflect modest loan growth and impact of regulatory
changes to credit cards
• Wealth management and insurance income likely to be lower in FY20 from
‒Exit of financial planning business ~$50m decline
‒Industry/legislative change including, Protecting Your Super legislation, corporate
super migration, and platform margins (pricing & lower cash rates) ~$100m
‒Insurance income dependent on claims experience and lapse rates
• Any sales of non-current assets in FY20 unlikely to realise material gains
(FY19 ~$100m pre tax)
Impairment charges
• Impairment charges remained low in FY19 at 11bps of average gross loans, FY20
impairments to reflect economic environment

Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
Considerations for FY20
1
... continued
1 The information on this slide contains ‘forward-looking statements’ and statements of expectation reflecting Westpac’s current views with respect to future events. They are subject to change without notice and certain risks, uncertainties and assumptions which are, in many instances,
beyond its control. They have been based upon management's expectations and beliefs concerning future developments and their potential effect upon Westpac. Should one or more of the risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may
differ materially from those expressed or implied in such statements. Investors should not place undue reliance on forward-looking statements and statements of expectation. Except as required by law, Westpac is not responsible for updating, or obliged to update, any matter arising after the
date of this presentation. The information in this slide is subject to the information in Westpac’s ASX filings, including its 2019 Annual Report, and elsewhere in this presentation. 2 Notable items include provisions for estimated customer refunds, payments, associated costs, and litigation,
along with costs associated with restructuring of the Group’s wealth business. For further details see slide 41. Each remediation program has its own methodology. These methodologies and estimates may change over time as further facts emerge and may require additional provisions.

29
FY20 expenses are expected to be 1% higher, excluding potential notable
2
items
(based on FY19 expenses excluding notable
2
items of $9,570m)

• Increase in amortisation of capitalised software of ~$170m expected in FY20 following
the rise in capitalised software and new systems becoming operational. The largest
contributor is the Customer Service Hub
• Expecting ~$500m in productivity in FY20, up 23% from the $405m in FY19
• Exit of financial planning business and Wealth reset expected to reduce expenses by
~$200m in FY20
• Reflecting the Group’s emphasis on strength, and a focus on enhancing Westpac’s
compliance/risk management processes; related operational expenses are expected to
rise by ~$245m. Includes costs related to risk management, compliance, financial crime
and complaints management
• This investment is expected to lead to a more efficient and effective risk environment
and, while higher spending will remain in FY21, cost reductions are expected thereafter
Productivity
offsets
Higher
compliance/
risk spend
Increase in
amortisation

Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
Operating environment
•Economic activity expected to improve through the year but remain
subdued (GDP growth ending calendar 2020 at 2.4%)
•Housing expected to continue its recovery in Sydney and Melbourne
•Expect credit to increase moderately across both business and
consumer
•Interest rates expected to go lower
•Some regulatory uncertainty remains – expecting more clarity through
2020, particularly on capital
•Continue to expect further remediation provisions/costs and possible
litigation or regulatory actions

31

• Navigate economic cycle
• Maintain funding sources
• Spread cost of technology
and compliance
•Number 1 or 2 across all key segments
1

• 14.2m customers
• Credit ratings
2
AA-/Aa3/AA-

• Unquestionably strong capital
• Strong and trusted brands
• Ability to sustain marketing investment
• High service quality
• National and regional brands
• Strong and improving NPS position
• Economics of skill in technology,
risk and analytics
• High quality, engaged and diverse
workforce
• 71% employee commitment;
#1 on LinkedIn
3
• Strong service ethos
• Strengthening risk capability
• Modern, efficient, scalable platforms
• Superior data capability
• APIs and partnering
• Reinventure and direct fintech
partnerships
• Digital bank capability
(expected investment in 10x)
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
Building a bank for the future

1 As measured by MFI market share. 2 S&P Global Ratings, Moody’s Investors Service and Fitch Ratings respectively. 3 LinkedIn most desired employers in Australia.
32
Scale &
strength
Brand &
service
People &
culture
Technology
Key service factors
Westpac position

Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
Measures of success
1 By September 2020.

33
2020 Aspiration
• ~$500m in productivity savings
($700m including Wealth Reset)
• Restore mortgage growth to ~1X system
1
• Further reshape network
• Navigate low interest rate environment
• <40% Cost to income ratio
•Extend lead in business NPS
•Close gap to #1 in consumer
• #1 NPS of major bank peers
across all segments
• Roll out Customer Service Hub (CSH)
to regional brands and brokers
• New mobile banking app
•
Launch Phase 2 of Open Banking
• Increase digital sales to 45%
• All consumer products on CSH
•Extend partnerships to deliver new
and enhanced services
•
Complete infrastructure renewal
(networks, data, cloud)
Performance
disciplines
Service
leadership
Digital
transformation

Financial results throughout this presentation are in Australian dollars and are based on cash earnings unless
otherwise stated. Refer page 42 for definition. Results principally cover the 2H19, 1H19 and 2H18 periods.
Comparison of 2H19 versus 1H19 (unless otherwise stated)
Investor Discussion Pack

Strategy

Westpac Group at a glance: Australia’s First Bank
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
1 30 September 2019 Source: S&P Capital IQ, based in US$. 2 Credit Suisse analysis of expense to income ratio of world’s largest banks October 2019. 3 S&P Global Ratings, Moody’s Investors Service and Fitch Ratings
respectively. S&P Global Ratings and Moody’s Investor Services have Westpac on a stable outlook. Fitch Ratings have Westpac on a negative outlook. 4 A member of banking sector leadership group DJSI World, since 2002.
Ranked leader in Sustainalytics ESG Rating. 5 APRA Banking Statistics, September 2019 . 6 RBA Financial Aggregates, September 2019. 7 RBNZ, September 2019. 8 Strategic Insights July 2019, All Master Funds Admin.
9 Cash earnings basis. 10 Based on share price at 30 September 2019 of $29.64.
36
WBC
listed on
ASX & NZX
Strategy
•In its 203
rd
year, Australia’s first bank and first company, opened 1817
•Australia’s 2nd largest bank and 20
th
largest bank in the world;
ranked by market capitalisation
1

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

Westpac
Institutional
Bank (WIB)
Westpac
New Zealand
Consumer
Business
Key statistics at 30 September 2019 Key financial data for Full Year 2019
Reported net profit after tax

$6,784m
Cash earnings

$6,849m
Expense to income ratio
9
48.6%
Common equity Tier 1 capital ratio (APRA basis) 10.7%
Return on equity
9
10.7%
Total assets

$907bn
Market capitalisation
10
$103bn
Customers

14.2m
Australian household deposit market share
5
22%
Australian mortgage market share
6
23%
Australian business credit market share
6
17%
New Zealand deposit market share
7
18%
New Zealand consumer lending market share
7
18%
Australian wealth platforms market share
8
18%
Four operating divisions
Pacific

Framing our strategic agenda
Strategy
To be one of the world’s great service companies,
helping our customers, communities and people, to prosper and grow
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
37
2020
Focus areas
Strategic
Priorities
Digital Transformation
Customer Franchise
Performance Discipline
Deal with outstanding issues
Structural productivity
Reshape the business
•Great customer outcomes
•Differentiated brand portfolio
•Strong loyal customer base
•Motivated employees
•Supported communities

•Strength - a point of differentiation
•Return – ahead of peers
•Productivity – < 40% cost to income
•Growth – highly targeted
•Leading digital platforms and experience
•Superior data infrastructure capability
•More digitally active customers
•Streamline and simplify processes
•Build and strengthen digital partnerships

•Finalise existing remediation
•Implement Royal Commission and CGA self-
assessment recommendations
•Close outstanding legal/regulatory issues
•Improve regulatory and compliance processes and
controls

•$500m of productivity savings
•Further reshape the network branches/ATMs/digital

•Simplify product set
•Reshape organisational design and enhance ways
of working
•Complete roll-out of Customer Service Hub
•Complete infrastructure renewal (networks, data, cloud)

Service
•Extend NPS lead in business
•Close NPS gap to #1 in consumer
•Further enhance service culture

Our Vision

Progress on our 2019 priorities
1
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
1 Progress over FY19 unless otherwise noted. 2 Refer to pages 153 and 154 for metric definitions and details of metric provider. 3 Australian NPS is August 2019. 4 Main financial institution. 5 Refers to Total SME.
6 Strategic Insights June 2019. All Master Funds Admin.
•Reset Wealth:
−Exited personal financial advice by Westpac
Group planners and authorised representatives
and moving to a referral model
−Restructured BTFG businesses into Consumer
and Business divisions
•Raised provisions for Advice customer remediation
in FY19 for:
−Salaried advisers of $137m (after tax)
−Authorised representatives of $428m (after tax)
•Centralised oversight of customer remediation into
remediation hub. Paid $248m to customers in FY19
•Implemented 11 Royal Commission
recommendations and 40% of CGA self-
assessment recommendations

Deal with outstanding issues
38
•Increased Australian banking customer numbers by
124k to 11.2m over FY19
•Number 1 in Net Promotor Score (NPS) for
business customers and Number 2 for consumer
customers
3
for most of FY19
•Australian NPS
−Consumer NPS
3
-7.3 (down 0.5 pts on Sep 18)
−Business NPS
3
-4.5 (up 8.4 pts on Sep 18)
•NZ NPS
−Consumer NPS +5 (down 3 pts on Sep 18)
−Business NPS +3 (up 3 pts on Sep 18)
•WIB NPS +51 (up 6 from Sep 18)
•Deepen relationships
−#2 MFI
4
consumer market share (16.5%)
−#2 MFI SME
5
market share

(20.3%)
−#1 MFI commercial market share (25.5%)
−#1 in platform funds under administration
6
(18%)
−87 of top 100 ASX companies bank with WIB
•Launched a range of new digital facilities
−End-to-end digital mortgage in St.George
−New chat-bot (Red)
−Online pricing tool for term deposits
−Real-time account opening in NZ (EasyID)
•Material improvement in complaints management

Momentum in customer franchise
2
•$405m in productivity savings delivered in FY19
•FTE
−Reduced operating divisions from 5 to 4
−FTE 5% lower over the year
•Continued reshaping of distribution network
−Removed 375 ATMs across the Group
−Entered an agreement to sell most of the Group’s
offsite ATMs in Australia
−Rationalised 61 branches across the Group
−Converting India branch to rep office
•Migrated activity to digital
−55% of accounts now use eStatements
−>195k mortgages settled via eConveyancing
−112 WIB customers now use Corporate Lending
Portal
•Improvements in major platforms
−Customer service hub (CSH) operational in
Westpac brand in FY19
−Additional functionality on Panorama with
advanced reporting and eSignatures
−Real time payments on NPP were enabled for the
majority of Westpac Group customers. Westpac
processes over 40% of all NPP payments (by
value)
Structural cost reduction
Strategy

What sets Westpac apart
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
Strong strategic position – consistent strategy
Sustainability leadership
1 As measured by market share or MFI share. 2 Peer 1 and 2 are on continuing operations basis. Peer 1 and 2 based on FY19 result s as reported, Peer 3 based on 1H19 results as reported.
•Strong credit quality with low
impaired assets to gross loans
•Capital ratios at top end of
banks globally
•Provision cover at upper end
of peers
•Balance sheet weighted to
mortgages
•Disciplined amortisation of
capitalised software
•Only SEC registered Australian
Bank – Sarbanes Oxley
certifications

•First Australian bank to:
−Sign Equator Principles (2003)
−Commit to 2 degree economy (2014)
•Public support for Taskforce on Climate-related Financial Disclosures
(TCFD) recommendations (2017)
•Foundation member of United Nations Environment Program
Finance Initiatives Principles for Responsible Banking (2018)
•Member of global banking leadership group in Dow Jones
Sustainability Index since 2002; sector leader 11 times; ranked #1 in
Australia in Financial Services in 2019, #9 globally
Conservative financial management
39
Strategy
•No. 1 or 2 position across key markets
1
– all divisions well placed
•Unique portfolio of brands, reaching more customers
•Strategic position in platforms and insurance
•No material non-core businesses

0.33
0.48
0.26
0.25
Peer 1Peer 2Peer 3WBC
29.2
28.8
29.3
30.3
Peer 1Peer 2Peer 3WBC
2.7
4.4
4.9
3.1
Peer 1Peer 2Peer 3WBC
Impaired assets to gross loans
2
(%)
Capitalised software average
amortisation period
2
(years)
Effective tax rate
2
(%)

Overview

Notable items in FY19 and FY18
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
1 Group Businesses.
41
Results
Remediation
Wealth reset
GB
1
FY19 notable items ($m) Consumer Business NZ GB
1
Group
Net interest income

(85) (246) (13) - - (344)
Non-interest income (2) (55) (4) (759) - (820)
Expenses 25 (87) (15) (143) (241) (461)
Core earnings (62) (388) (32) (902) (241) (1,625)
Impairment charges - - - - - -
Tax and non-controlling
interests
29 118 9 270 69 495
Cash earnings

(33) (270) (23) (632) (172) (1,130)
Remediation
FY18 notable items ($m) Consumer Business NZ GB
1
Wealth reset
GB
1
Group
Net interest income

(99) - (2) (4) - (105)
Non-interest income (12) - (11) (140) - (163)
Expenses (39) (5) (3) (65) - (112)
Core earnings (150) (5) (16) (209) - (380)
Impairment charges - - - - - -
Tax and non-controlling
interests
36 - 4 59 - 99
Cash earnings

(114) (5) (12) (150) - (281)
In FY19 and FY18, the Group raised certain
provisions known throughout this document as
“notable items” which relate to the following:
Customer remediation

Provisions of $958 million (after tax) in FY19,
$281 million in FY18. The majority of the
provisions relate to remediation programs for:
•Certain ongoing advice service fees
associated with the Group’s salaried
financial planners and authorised
representatives
•Refunds for certain customers that had
interest only loans that did not automatically
switch, when required, to principal and
interest loans
•Refunds to certain business customers who
were provided with business loans where
they should have been provided with loans
covered by the National Consumer Credit
Protection Act
•Other items as part of our get it right, put it
right initiative
Wealth reset

In March 2019, the Group announced its
decision to reset its Wealth business. In FY19,
provisions for restructuring and transition costs
were $241 million (after tax $172 million)

Cash earnings and reported net profit reconciliation
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
1 Cash earnings is not a measure of cash flow or net profit determined on a cash accounting basis, as it includes non-cash items reflected in net profit determined in accordance with AAS (Australian Accounting
Standards). The specific adjustments outlined include both cash and non-cash items. Cash earnings is reported net profit adjusted for material items to ensure they appropriately reflect profits available to ordinary
shareholders. All adjustments shown are after tax. For further details refer to page 42.

42
Results
Reported net profit and cash
earnings adjustments ($m)
FY18 FY19
Reported net profit 8,095 6,784
Amortisation of intangible assets

17 –
Fair value (gain)/
loss on economic hedges

(126) 35
Ineffective hedges 13 (20)
Adjustments related to Pendal
Group (formerly BTIM)
73 45
Treasury shares (7) 5
Cash earnings 8,065 6,849
•Westpac Group uses a measure of performance referred to as cash earnings to assess financial
performance at both a Group and divisional level
•This measure has been used in the Australian banking market for over 15 years and management
believes it is the most effective way to assess performance for the current period against prior periods
and to compare performance across divisions and across peer companies
•To calculate cash earnings, reported net profit is adjusted for:
−Material items that key decision makers at the Westpac Group believe do not reflect the Group’s
operating performance
−Items that are not considered when dividends are recommended, such as the amortisation of
intangibles, impact of treasury shares and economic hedging impacts
−Accounting reclassifications between individual line items that do not impact reported results

Reported net profit and cash earnings
($bn)
FY19
($m)
% chg
FY19-
FY18
% chg
2H19-
1H19
Cash earnings 6,849 (15) 8
Cash EPS (cents) 198.2 (16) 7
Reported net profit 6,784 (16) 14
Reported EPS
(cents)
196.5 (17) 13
Cash earnings
1
policy
8.0
7.4
8.0
8.1
6.8
7.8 7.8
8.1 8.1
6.8
FY15FY16FY17FY18FY19
Reported profitCash earnings

Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
FY19 financial snapshot
1 All measures on a cash earnings basis. 2 Internationally comparable methodology aligns with the APRA study titled ‘International Capital Comparison Study’ dated 13 July 2015. 3 Total liquid assets represent cash,
interbank deposits and assets eligible for existing repurchase agreements with a central bank.
FY19
Change
FY19- FY18
Change
2H19- 1H19
Earnings
1
Earnings per share (cents) 198.2 (16) 7
Core earnings ($m) 10,624 (15%) 10%
Cash earnings ($m) 6,849 (15%) 8%
Return on equity

(%) 10.8 (225bps) 63bps
Dividend (cents per share) 80 (15%) (15%)
Expense to income ratio

(%) 48.6 481bps (261bps)
Net interest margin

(%) 2.12 (10bps) 1bp
Credit quality
Impairment charges to average
gross loans (bps)
11 (1bp) 4bps
Impaired assets to gross loans (bps) 25 5bps 1bp
Impaired provisions to impaired assets (%) 44.9 (120bps) (82bps)
43
Results
FY19
Change
FY19- FY18
Change
2H19- 1H19
Balance sheet
Total assets ($bn) 906.6 3% 2%
Common equity Tier 1 (CET1) capital ratio
(APRA basis) (%)
10.7 4bps 3bps
CET1 capital ratio
(Internationally comparable
2
) (%)
15.9 (29bps) (32bps)
CET1 capital ($bn) 45.8 1% 2%
Risk weighted assets ($bn) 429 1% 2%
Loans ($bn) 714.8 1% –
Customer deposits ($bn) 524.5 1% 3%
Net tangible assets per share ($) 15.36 – 2%
Funding and liquidity
Customer deposit to loan ratio (%) 73.4 43bps 175bps
Net stable funding ratio (%) 112 (2ppts) (1ppt)
Liquidity coverage ratio (%) 127 (9ppts) (6ppts)
Total liquid assets
3
($bn) 169.9 11% 12%

Reset dividend
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
Dividends per ordinary share (cents)
Ordinary dividend yield
2
(%)
Dividend considerations
Dividend payout ratio (%)
1 DRP participation rate of 10% assumed. 2 Yield based on closing price as at 31 March or 30 September respectively.
• Reset the dividend given capital raising, increase in
shares on issue and lower earnings
• Sustainability of the payout ratio over the medium term
• 2H19 payout ratio (ex notable items) 71%

44
93
94 94 94 94 94 94 94 94
80
1H152H151H162H161H172H171H182H181H192H19
77
74
80
80
79
79
76
85
98
79
49
64
72
72
51
71
68
76
63
71
1H152H151H162H161H172H171H182H181H192H19
Payout ratio (cash earnings basis)
Effective payout ratio (after DRP shares issued)
6.2
6.4
5.4
5.9
6.6
6.7
7.3
5.4
8.8
9.1
7.7
8.4
9.4
9.6
10.4
7.7
1H162H161H172H171H182H181H192H19
Ordinary yieldIncluding franking
1
Results
1

3,553
3,296
753 4,049
95
56 3,930
(106)
(36)
(128)
(377)
1H19Add back
notable
items
1H19 ex-
notable
items
Net interest
income
Non-interest
income
ExpensesImpairment
charges
Tax & NCI2H19 ex-
notable
items
Notable
items
2H19
8,065
281 8,346
5
16
18
213 7,979
6,849
(619)
(1,130)
FY18Add back
notable
items
FY18 ex-
notable
items
Net interest
income
Non-interest
income
ExpensesImpairment
charges
Tax & NCIFY19 ex-
notable
items
Notable
items
FY19
FY19 cash earnings impacted by notable items of $1,130m
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
1 Average interest-earning assets.
Cash earnings features of FY19 – FY18 ($m)
Cash earnings features of 2H19 – 1H19 ($m)
45
Performance discipline
FY19
$m
%
Change
FY19-
FY18
%
Change
2H19-
1H19
Net interest
income

16,953 (1) 2
Non-interest
income
3,702 (26) 16
Expenses (10,031) 3 (1)
Core earnings 10,624 (15) 10
Impairment
charges
(794) (2) 38
Tax and non-
controlling
interests (NCI)
(2,981) (17) 8
Cash earnings

6,849 (15) 8
Add back notable
items (after tax)
1,130 Large (50)
Cash earnings
ex notable items
7,979 (4) (3)
Reported net
profit
6,784 (16) 14
Down 15%
Up 8%
AIEA
1
up 1%,
margin 1bp lower

Down 4% ex notable items
Down 3% ex notable items
AIEA
1
up 3%,
margin 7bps lower

No Hastings revenue, lower wealth income, lower insurance income
(higher claims), and a negative movement in derivative valuation adjustment
A negative movement in derivative valuation adjustments, lower
fee income, and a reduction in institutional bank lending fees
Mostly from higher new collective
provision and higher write-offs in
the consumer portfolios

Divisional
1
contributions
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
1 Refer to division definitions, page 150.
46
Performance discipline
2H19 ($m) Consumer Business WIB NZ

Group
Businesses Group
Operating income 4,644 3,293 1,310 1,104 201 10,552
Expenses (1,931) (1,430) (631) (486) (512) (4,990)
Core earnings 2,713 1,863 679 618 (311) 5,562
Impairment (charges)/benefits (313) (198) (31) 24 57 (461)
Tax & non-controlling interests (719) (501) (178) (181) 31 (1,548)
Cash earnings 1,681 1,164 470 461 (223) 3,553
% of Group cash earnings

47% 33% 13% 13% (6%) 100%
2H19 divisional core earnings movements ($m)

2H19 divisional cash earnings movements ($m)

3,296
753 4,049
103
27 3,930
3,553
(135)
(74)
(40)
(377)
1H19
Add back
notable items
1H19 ex-
notable items
Consumer
Business
WIB
NZ
Group
Businesses
2H19 ex-
notable items
Notable
items
2H19
Up 8%
Down 3% ex notable items
6,101
5,062
1,086 6,148
190
3
5,562
(71)
(93)
(76)
(539)
1H19
Add back
notable items
1H19 ex-
notable items
Consumer
Business
WIB
NZ
Group
Businesses
2H19 ex-
notable items
Notable items
2H19
Down 1% ex notable items
Up 10%

44
63
63
5
8
8
1
1
1
10
12
12
4
4
5
20
7
7
16
5
5
Sep-08Sep-18Sep-19
Wholesale Onshore <1yr
Wholesale Offshore <1yr
Wholesale Onshore >1yr
Wholesale Offshore >1yr
Securitisation
Equity
Customer deposits
More customers, deeper relationships and strong balance sheet
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
1 Australian banking refers to banking customers in Consumer and Business divisions. 2 Other includes Wealth, WIB and Westpac Pacific. 3 Australian retail refers to Consumer and Business divisions. Business
includes Private Wealth. 4 WIB includes Group Businesses. 5 In A$. 6 Refer to page 153 for details of metric provider.
Grow customers
47
Deepen relationships Maintain balance sheet strength
28
30
34
39
43
45
46
9.1
9.0
9.5
9.5
10.6
10.6
10.7
Sep-13Sep-14Sep-15Sep-16Sep-17Sep-18Sep-19
CET1 capital ratio (%) and capital ($bn)
Service leadership
130.4
141.6
152.1
161.1
Sep-16Sep-17Sep-18Sep-19
Transaction account balances ($bn)
Australian retailWIBNew Zealand
Funding composition by residual maturity (%)
Australian customers with a wealth product
6
(%)
1
3 4
5
2
17.0
17.8
10.6
12.5
19.9
Sep-17Sep-18Sep-19
PeersSt.GeorgeWestpac
Chart may not add due to rounding
213
460
256
87
FY16FY17FY18FY19
Increase in customer numbers (#’000’s)
10.4
10.8
11.1
11.2
1.4
1.4
1.4
1.4
1.6
1.7
1.7
1.7
13.4
13.9
14.1
14.2
Sep-16Sep-17Sep-18Sep-19
Customer numbers (#m)
Australian bankingNew ZealandOther

Building long term franchise value – customer service
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
1 Refer page 153 for metric definition and details of provider.
48
Net Promotor Score (NPS)
Customer satisfaction
1
Consumer and Business (mean), New Zealand (%)
Service leadership
New Zealand
Business
Consumer

New Zealand
Business
Consumer

67%
76%
67%
73%
71%
Sep-17Sep-18Sep-19
WestpacPeers
5
38
9
20
21
Sep-17Sep-18Sep-19
WestpacPeers
7.6
7.5
6.9
7.1
7.2
Aug-17Aug-18Aug-19
WestpacSt.George brandsPeers
7.2
7.5
7.1
7.2
7.4
Aug-17Aug-18Aug-19
WestpacSt.George brandsPeers
-11.6
1.4
-11.4
-7.6
-6.0
Aug-17Aug-18Aug-19
WestpacSt.George brandsPeers
-5.4
-2.3
-24.5
-17.3
-19.4
Aug-17Aug-18Aug-19
WestpacSt.George brandsPeers

•Over 2,130 leaders participated in leadership
development programs in 2019, including 433
senior business leaders commencing the new
Executive Edge Program in September
•Employees enrolled in over 360,000 courses on
LearningBank, our learning platform. Employees
obtained over 290 micro-credentials, in
partnership with AGSM, Deakin University and
Udacity with a further 380 currently studying for a
micro-credential
•750 employees completed the pilot of our Skills
Mapping tool, helping them understand their skills
and have more future focused development
conversations

Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
49
Transforming our workforce
Women in Leadership positions
2
(%)
LT I F R
3
(rolling 12 months) (#)
Employee culture and commitment
Learning and development Simplification
Service leadership
46
48
50 50 50
Sep-15Sep-16Sep-17Sep-18Sep-19
0.80 0.80
0.60
0.39
0.43
Sep-15Sep-16Sep-17Sep-18Sep-19
• Employee commitment has remained stable in a
challenging industry environment (71%)
• Monthly spot commitment results have trended up
since May 2019 (70% and above), reflecting employee
pride in the delivery of our strategy and progress
made towards achieving the organisation’s vision of
becoming one of the world’s great service companies
• The Culture Index
1
, a key measure of the health of the
organisation’s culture, also remains stable with a six
month rolling average at 72%
• Continued to foster a culture where it is safe to speak
up, including a dedicated ‘Speaking Up Program”,
designed to provide our people with extra protections
and confidence about raising concerns

•Released PeopleHQ, a cloud based HR system, with
improved position management and workforce
controls, enabling tighter workforce management
•Continued organisation design reviews focusing on
structural simplification to support productivity
•Increasing Agile transformation across the Group
−Full implementation of agile ways of working in NZ
−Extension of agile project methodologies and
operating models, in particular, across Group
Technology and Consumer Digital and Marketing
−Implementation of agile flow to work model in HR
as the template for support functions
• The Navigate program continues to embed ‘Our
Compass’, providing our people with a consistent
understanding of our code of conduct, values,
service promise and vision. The program focuses on
clarity around ethical behaviour and treatment of
customers
• Simplified our ‘Service Promise’ to help guide
employees in providing superior service and give
them the tools to do so
• Motivate performance framework
continues to drive a focus on
behaviours and culture; including
tying behaviours to remuneration
outcomes
1 Culture Index measures four elements: trust and care, service orientation, agility and innovation, and risk culture. 2 Spot number at 30 September for each period. Refer page 154 for metric definition. 3 Lost time
injury frequency rate.
Workforce revolution

Four pillars of our digital strategy
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
50
3
Reducing cost to serve and
cost to change
Secure and reliable Giving customers control
Investing in Fintech
•Protecting both the Group
and customers against
security threats through
digital solutions
•Ensuring customers have
24/7 access to core digital
services
•Improving our IT systems
operational resilience
•Leveraging data for credit
decision making and better
understanding of customers’
needs
•Refining digital services to
provide a superior experience
•Encouraging customers to
take greater control of their
financial health through self-
serve and control features
•Creating new services to
allow customers to manage
their finances more easily
•Replacing aging infrastructure
through projects such as
Customer Service Hub, while
also saving customers and
bankers time
•Streamlining customer
interactions and engagement
through digital self service
•Shifting data storage to the
cloud
•Direct investment and
investments via Reinventure,
the Group’s fintech venture
capital fund
•Accessing insights and
adjacent business
opportunities
•Creating new commercial
partnerships that generate
value for customers
•Delivering new products for
Westpac customers such as
Presto Smart
Digital transformation

Investment in stability and fraud protection
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
Severity 1 IT incidents (Australia) Strengthening technology infrastructure
Protecting customers
10
5
9
10
5
0
2
0 0 0
1H152H151H162H161H172H171H182H181H192H19
•Two-factor SMS authentication
•Biometric fingerprint logon to mobile banking
•Encouraging customers to notify us of their travel plans to prevent unauthorised
overseas transactions
•Malware indicator: inspecting online banking activities to identify if malicious
software is present on a customer’s device
•Dedicated scam assist team providing 24/7 support to customers and bankers.
Has supported >2,000 customers since its launch in June 2019
•National Scam and Awareness seminars completed by branches to support
community and help increase understanding and confidence to protect
themselves from scams. Seminars also conducted for small business customers

51
Digital transformation
Identifying fraudulent / suspicious behaviour quickly by
implementing security solutions such as:
•Real-time monitoring tools and Proactive Risk
Manager: Monitoring transactions real-time & identifying
suspicious transactions in milliseconds so they can be
held, declined or an alert raised for investigation.
Customers are then notified and prompted for additional
validation
•Device ID: Inspecting transaction devices to determine
whether the customer is using a known device. Real time
monitoring tools provide further validation if required
•Simpler modern core systems through Customer Service Hub (CSH),
Panorama, New Payments Platform (NPP) and cloud based human capital
management system (PeopleHQ)
•A more personalised, intelligent and autonomous digital experience
through next generation mobile application and real-time data and insight
platform
•Digitisation and automation of operations to streamline process and
strengthen control environment
•Efficient and resilient group-wide infrastructure through accelerating
adoption of cloud
•A maturing service management platform to ensure the highest standard of
availability and security across all customer services
Detecting fraudulent / suspicious behaviour

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

Westpac Red interactions (AI chatbot) Customer control features
52
Digital transformation
2
eWallet transactions
(#m)
Online credit card limit reduction
(# ́000’s)
Online card lock /unlock / closure
(# ́000’s)
0.1
1.1
2.6
3.8
5.5
6.9
1H172H171H182H181H192H19
347
538
710
933
1,114
1,312
1H172H171H182H181H192H19
31
33
41
52
1H182H181H192H19
127
84
122
130
156
151
157
76
68
66
69
70
70
73
1H19Apr-19May-19Jun-19Jul-19Aug-19Sep-19
Conversations (#'000s)Resolved by Red (%)

Australian branches (#) eConveyancing
1
(# ́000’s)
Reducing cost to serve
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
1 Does not include RAMS.
eConveyancing (000’s)
6.0
7.2
7.7
8.4
8.9
9.6
36
43
45
49
52
55
Mar-17Sep-17Mar-18Sep-18Mar-19Sep-19
Number (#m)eStatements (%)
Digitising processes to improve productivity and enhance the
customer experience
•More digital communication such as eConveyancing, eStatements,
and eSignatures
•Decreasing physical presence and supporting customer preference
for cashless transactions by providing different ways to pay
(wearables, eWallet, etc)

Progress on key initiatives Accounts with eStatements
Australian ATMs (#)
53
Digital transformation
2,970
2,916
2,835
2,542
2,213
2,193
Mar-17Sep-17Mar-18Sep-18Mar-19Sep-19
26.1
39.2
59.1
79.7
90.8
104.6
1H172H171H182H181H192H19
1,059
1,046
1,025
1,006
971
955
Mar-17Sep-17Mar-18Sep-18Mar-19Sep-19

206
217
222
234
242
257
1H172H171H182H181H192H19
Customers preferring digital channels
1
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
1 Refer page 153 for definitions. Prior periods digital sales, and digital and branch transactions have been restated to reflect a consistent definition of a transaction.
54
Digital transformation
Sales via digital (%)

Digital transactions (#m)
Digitally active customers (#m)
Branch transactions (#m)
4.3
4.5
4.7
4.8
4.9
5.0
Mar-17Sep-17Mar-18Sep-18Mar-19Sep-19
Up 4%
Up 2%
22.5
21.7
20.8
20.1
18.6
17.7
1H172H171H182H181H192H19
Down 11%
Down 4%
Up 10%
Up 6%
Digitally active customers (#m)
Digital transactions (#m)
29 29
36
37
38
39
1H172H171H182H181H192H19
Up 2ppts
Up 1ppt

Settlement

Digital streamlined settlement
integrated with land
titles registry
Capabilities delivered
Customer Service Hub Westpac 1st Party roll-out largely complete with
significant improvements in the customer and banker experience

Increased
efficiency
More home
ownership
needs met at
origination
Lower cost
of change
Increased
banker
productivity
Improved
customer
experience
Leading
to:

Strategy

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

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

Applications available
seamlessly across channels

Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
55
Digital transformation

Reinventure – Investing in fintech businesses
1

New in 2019. 1 Logos are of the respective companies.
Digital transformation
Comprehensive cloud-based
human resources and employee
benefits platform to streamline HR
processes
Business loan marketplace that
matches SMEs to the best lender
based on their characteristics
and needs
A natural language AI system for data
analysis targeting relatively simple
business queries that comprise 70% of
an analyst’s work in a large organisation
Open Banking API platform that provides
connectivity to over 100 financial sources
across Australia and NZ
Enables the purchase of
residential property, one ‘brick’
at a time
Peer-to-peer (P2P) online
lending platform connecting
borrowers and investors
A bitcoin wallet and platform
Helps home sellers make
decisions about who they
choose to sell their property
Full stack payments platform
Connects ordering apps, payment
devices, loyalty and reservations
platforms to any point of sale
A trust framework and secure platform
that allows users to exchange data
safely and securely
Standardises mobile forms into an easily
readable format and fillable at the tap of
a button

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

Westpac is actively responding to digital threats and opportunities.
We encourage digital innovation through investing in venture capital, partnerships and direct investments.
Westpac can learn directly and gain access to emerging fintech developments.
Westpac has committed $150m to fintech venture capital fund, Reinventure. Reinventure enables Westpac to access insights
and adjacent business opportunities, both in Australia and offshore.
The model also helps Westpac to source commercial partnerships that create value for customers
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
56
Uses data to shed light on high
volume crimes, improving
prevention and detection

A fund of funds for cryptocurrency
and blockchain technology

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

Data, AI and analytics New business models

AI-powered, context-as-a -service
platform, to deliver personalised
experiences to customers
B2B platform for physical retail stores that
provides insights through their AI engine
and in-store sensors
A consumer digital lending platform
Turning buildings into
community-centric dwellings
Pioneering a new asset class
called Tradeable Income Based
Securities (TIBS)
Creating real-game assets for
developers, using blockchain
technology
Conversational voice-based AI for
digital interviewing, powered by
machine learning
*
*
*
*
*
*
*
*

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

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

57
Digital transformation
3
2
4
5
Investing in
the home
ownership
ecosystem
Investing in
data, AI
and analytics
Investing in
merchant
propositions

Building on Presto Smart for Westpac customers
•Based on software built by Assembly,
Presto Smart enables a business merchant terminal
to connect with a range of point-of-sale systems
Strategic investments in Uno and OpenAgent
•Bringing new capability to Australian property
buyers, sellers and investors
Leveraging Data Republic to support growth
of the data ecosystem and governed data
sharing
•
WIB working with Data Republic to deliver
bespoke data insight tools for customers,
including State Governments
Examples of how Westpac’s and Reinventure’s investments are delivering

Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
Continued sustainability leadership
1 All results as at 30 September 2019, except jobs created through the Westpac Foundation job creation grants to social enterpri ses which are as at 30 June 2019. 2 Total committed exposure. 3 Refers to complaints
not subject to external dispute resolution.
United Nations Sustainable
Development Goals alignment
Westpac’s sustainability
priority areas

FY19 outcomes (unless otherwise stated)

Helping people make better
financial decisions
•Delivered financial capability communications for different demographic segments including for young
Australians, in partnership with 26 universities and TAFE NSW (900k interactions); women, via Ruby
Connection (724k interactions); and older Australians, via Starts at 60 (over 3 million interactions)
•Continued to offer financial health check programs for superannuation members, including the digital
Wealth Review and My Wellbeing online portal

Helping people by being there
when it matters most to them
•Helped customers experiencing financial hardship, issuing over 52,000 financial assistance packages
•Extended the $100m drought relief fund launched last year to support Australian farmers
•Assisted over 900 customers since launching the Priority Assist 1800 telephone line to support
customers experiencing domestic and family violence and financial abuse
•Supported over 3,000 Indigenous Australians through a dedicated customer care team established this
year to support remote Indigenous communities

Helping people create a
prosperous nation
•Awarded $4.3 million in educational scholarships through Westpac Scholars Trust, to the next 102
Westpac Scholars, bringing the total cohort to 416
•Helped to create over 700 jobs
1
for vulnerable Australians through Westpac Foundation job creation
grants to social enterprises
•Increased lending to climate change solutions to $9.3bn
2
, progressing towards our 2020 target of
$10bn
2

A culture of doing the right thing
•Maintained 50% women in leadership roles. Four female directors on Westpac Board (36%)
•161 new-to-bank Aboriginal or Torres Strait Islander hires
•Established a new complaints strategy centred on customer connection, service excellence, priority
support for vulnerable customers and root cause and complaints prevention
•Reduced average time to close complaints
3
from 13 days to seven days
•Commenced tracking customer satisfaction of the complaint resolution experience

The fundamentals – sustainability
policies, action plans and
frameworks
•Joined the ‘Raising the Bar’ initiative, committed to spend $21m with Indigenous businesses by 2024
•Launched the world’s first Green Tailored Deposit to be certified by internationally recognised Climate
Bonds Initiative (CBI)
•Delivered several sustainability-linked loans designed to incent and reward customers for meeting pre-
determined sustainability targets
•Committed to source 100% of global electricity consumption through renewable energy sources by
2025 and joined RE100
58
Sustainable futures
Further information on Westpac’s Sustainability strategy and progress on strategic priorities is available at www.westpac.com.au/sustainability

1 Data for FY19 or as at 30 September 2019 unless otherwise stated. 2 Refers to headcount. 3 Funded by Westpac Scholars Trust. 4 Diverse suppliers includes businesses at least 51% owned and controlled by
indigenous Australians or women. Also includes Australian Disability Enterprises and social enterprises. 5 Source: Corporate Tax Transparency Report 2016 - 2017, published December 2018.
Customers Employees Community Suppliers Investors Economy Environment
Delivering sustainable value for all stakeholders
1
Sustainable futures
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
59
14.2m
Customers
Provided
$61bn
New home loans
in Australia
Over
52,000
Customers supported
through Westpac
Group Assist
36,311
Employees
2
50%
Women in
Leadership
positions
$4.3m
Awarded in
educational
scholarships to the
next 102 Westpac
Scholars
3
$5.9bn
Spent with suppliers
in Australia

$3.6m
Spent with
Indigenous
Australian suppliers
4
10.7%
Cash return
on equity
$6.0bn
In dividends to
shareholders
$3.0bn
Income tax
FY19

Provided
$25bn
New business
lending in Australia
(excludes Institutional)
+610k
shareholders
and more via
super funds
3
rd

Largest tax payer in
Australia
5

$5.0bn
Paid to
employees
198.2
Cash earnings per
ordinary share (cents)
30.3%
Effective tax rate

$391m

Bank Levy
$9.3bn
Committed exposure
to climate change
solutions
$3.6bn
To facilitate climate
solutions
18 years
Global banking leader for
the 18th year in a row.
Ranked #1 bank in
Australia in 2019 by DJSI.
Received highest ESG
Rating and best ESG Risk
Rating of Australian major
banks from Sustainalytics
at October 2019
34.2%
Effective tax rate
including the Bank
Levy

$130m
In community
contributions in FY19
$18.6m
Spent with diverse
Australian suppliers
4
100%
Of global electricity
consumption through
renewable energy
sources by 2025
~500
relief packages for
customers
impacted by
natural disasters
+619k
financial education
interactions

39.5
31.9
15.9
2.6
2.8
4.2
3.2
Green buildings
Renewable energy
Low carbon transport
Adaptation infrastructure
Forestry
Waste
Other
Climate-related metrics
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
1 Exposures in WIB only. TCE is total committed exposure. 2 Data as at 30 June for the reporting year. 3 Australia only. NEM benchmark is sourced from Australian Energy Market Operator.
60
Sustainable futures
Climate change solutions exposure
(% of TCE) at 30 September 2019

Emissions intensity (tCO
2
e/MWh)
3
Electricity generation exposure
(% of TCE)
1
at 30 September 2019

Total scope 1, 2 and 3 emissions
(tCO
2
e, 000s)
2
Climate change solutions exposure
(TCE $bn)
Mining exposure (TCE $bn)

6.2
7.0
9.1
9.3
Sep-16Sep-17Sep-18Sep-19
220
203
194
183
2016201720182019
75.3
13.7
8.7
0.9
1.4
Renewable energy
Gas
Black coal
Brown coal
Liquid fuel
0.38
0.36
0.28
0.26
0.90
0.86
0.82
0.75
FY16FY17FY18FY19
Westpac electricity generation portfolio
National electricity market (NEM) benchmark
2020 target - 0.30tCO₂e/MWh
10.7
5.4
3.9
1.4
9.8
5.6
3.4
0.8
10.5
6.1
3.6
0.8
TotalNon-fossil fuelOil and gasCoal - thermal
& metallurgical
Sep-18Mar-19Sep-19
TCE
$3.9bn
TCE
$9.3bn

0.4%
1.6%
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
Transition risk – key points
Physical risk – key points
Alignment with the TCFD
Portfolio physical risk – 4 degree scenario
•Westpac assessed potential transition risks (policy, legal, technology and
market changes related to climate change)
•Analysis focused on our current Australian Business and Institutional
lending
1
and exposure to sectors that may face growth constraints under
1.5-degree and updated 2-degree scenarios
2

•Approximately 2.5% of current business lending is exposed to sectors that
by 2030, may experience higher risk in a transition to a 1.5-degree
economy
•Approximately 0.9% current business lending is exposed to sectors that
by 2030, may experience higher risk in a transition to a 2-degree
economy
•Along with the Group’s commitment to the Paris Climate Agreement,
Westpac continues to assess the resilience of its Australian mortgage
portfolio to physical risks in line with TCFD recommendations
•Westpac assessed potential physical risks
3
(financial impacts of changes
in climate patterns and extreme weather events)
•Focused on the Australian mortgage portfolio and exposure to postcodes
that may face increased physical risk under a 4-degree scenario
•
Approximately 1.6% of the current Australian mortgage portfolio is in
postcodes which by 2050, may be exposed to higher physical risk under a
4-degree scenario
61
Share of current portfolio exposed to higher physical risk (%)
1 Australian Business and Institutional lending, excludes retail, sovereign, and bank exposures. 2 For further information see Westpac’s Annual Report – Risk and risk management. 3 Five natural perils were assessed: inundation, soil contraction,
floods, wind and cyclones, and bushfires. 4 For further information see Westpac’s 2019 Annual Report – Risk and risk management.
Sustainable futures
Climate-related disclosures – scenario analysis
2030
2050
•Westpac continues to integrate the consideration of climate-related risks
and opportunities into its business operations. This includes alignment
with the recommendations of the Task Force on Climate-related Financial
Disclosures (TCFD)
•Climate change-related risks are managed within the Group’s
sustainability, and wider risk management framework
Data presented shows the
share of current exposure to
postcodes that may
experience higher physical
risk at intervals of 2030 and
2050 under our IPCC RCP
8.5 Scenario
4

Governance
& Culture

Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
Strengthening governance and non-financial risk management
63
Conduct and governance
Remuneration
and accountability
Culture
Royal Commission
response plan
Customer
experience
Addressing shortcomings

The Royal Commission, as well as our Culture,
Governance and Accountability (CGA) self-
assessment, uncovered shortcomings in our
management of non-financial risk, handling of
complaints and product design and performance

Change underway

Change programs commenced in 2018 and continue
to strengthen our management of non-financial risk,
improve the handling of customer complaints and
enhance our risk culture

Six areas of focus

Programs are grouped under six areas which align
with the CGA self-assessment recommendations,
along with our Royal Commission response plan
Board and
executive
governance
Risk and
compliance

Accountability
40% of recommendations
implemented
1,3
1 As at 1 November 2019. 2 The response to the recommendation has been designed and implemented. Three out of the 45 (7%) recommendations are culture recommendations which will be ongoing and do not have a target closure date.
3 All implemented items will be subject to post-implementation verification to ensure durability of changes made.
CGA self-assessment action plan progressing well
Conduct and governance
Timeline
6
2
11
5
4
5
6
3
3
Board and executive
governance
Customer experience
Risk and compliance
Remuneration and
accountability
Culture
In progressImplementedOngoing
•CGA self-assessment action plan
underway to respond to findings
•Dedicated CGA team coordinating
actions
•Sponsored by Chief Risk Officer
•Group Executive accountability for
each recommendation
•Board oversight of the entire
program

Westpac completed a Culture, Governance and Accountability (CGA) self-assessment in 2018 at the request of the Australian Prudential
Regulation Authority (APRA). It examined the Group’s risk culture, governance and accountability frameworks and practices, and the impact on
the management of non-financial risks. As well as highlighting a number of strengths across the Group, the CGA self-assessment identified
shortcomings and proposed 45 recommendations across five key areas.
Nov 2018
Commenced
implementation of
recommendations
2021
Program expected
to be fully implemented
2
31 Dec 2019
Expect over 50%
to be implemented
1

30 June 2019
20% implemented
1
Submitted CGA self-
assessment to APRA
64
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
30 Sept 2019
33% implemented
1

Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
Enhancing governance
Governance is being strengthened by enhancing Board and executive reporting, meeting effectiveness, management of
non-financial risks and enhancing the Group’s governance structures
65
Enhance governance practices and improve non-financial risk reporting
Reporting
Effectiveness
Non financial risks
•We have introduced changes to our Board and Committee reporting to provide clearer identification of principal
risks, issues, options and assumptions, as well as enhancing reporting on non-financial risks, particularly in
relation to customer complaints
•Enhanced reporting of non-financial risks, including ‘root-cause’ analysis and customer complaints, and
adopted a risk taxonomy
•Improving the effectiveness of Board Risk & Compliance Committee (BRCC) meetings, including through ongoing
review of overall format and agenda content. Increased time allocated for the length of meetings and an additional
BRCC meeting each year to enable expanded coverage of risk matters
•Ensuring the information flow between executive and Board committees is transparent, reinforced by overlapping
committee membership, including formalising the appointment of the BRCC Chairman as a Member of the Board
Audit Committee
Board and
executive
governance
Governance structures
•Rationalising committees and other governance forums to reduce complexity and bureaucracy and enhance
decision-making and accountability across the Group

Solving customer complaints with care
66
Culture & customer
connection
Service excellence
Priority support
•Resetting perception of complaints through Group-wide
Navigate program, customer complaints training and ‘Spot
It, Log it, Own It’ campaigns
•Increasing accountability for customer complaints through
specific KPIs in Executive and GM scorecards
•‘Customer voice’ roundtables to hear direct feedback from
customers
•New operating model: centralised triage; first response;
complex and priority care
•Improved website and refreshed communications, making
it easier to lodge a complaint
•‘Moments’ team to help solve complaints in the moment
•Improved Group-wide complaints policy, framework and
standards
•Vulnerable Customer Action Plan and position statements
•Dedicated ‘1800’ Priority Assist telephone line
•Customer Outcome Committee focused on resolving
complex, sensitive and long-dated complaints
Root cause and
complaint prevention
Improved complaint capture and time
to solve (# and days)
•Using complaints data to identify root causes and use
insights in product reviews
•Investing in enhanced data analytics to identify root causes
•Action plans for General Managers to resolve root cause
issues that cause complaints
Customer
experience
Through our centralised Customer and Corporate Relations division and complaints strategy,
we are changing our complaints culture and making things better for our customers
Through our new policy of logging all complaints (even those
solved in under 5 days), making it easier to lodge complaints
online, and our internal “Spot it. Log it. Own it.” campaign,
complaints logged have increased by 94%.
46%
4,153
Vulnerable
customer
interactions
255
Root
cause fixes
implemented
9,101
12,037
16,353
16,592
24,196
4Q181Q192Q193Q194Q19
FY18 Complaints: 35,646
Time to
resolve
complaints
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
13.2
8.3
9.3
8.5
7.1
Sep-18Dec-18Mar-19Jun-19Sep-19
Days to solve internal dispute resolution
FY19 Complaints: 69,178

Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack

Get it right, put it right
67
Provisioning for
issues
Accelerating
customer refunds
1 Excludes provisions and costs associated with litigation.
Provisions for customer refunds and
payments ($m)

2017 2018 2019 Total
Banking
1
94 122 362 578
Wealth 75 146 802 1,023
Implementation costs - 62 232 294
Cash earnings impact of above 118 231 977 1,326
•Provisioned $977 million (after tax) in FY19 for estimated customer refunds, payments and associated costs
•The provisions cover a number of matters with the largest items relating to: advice service fees where the records of
advice were insufficient or it is not clear that the services were provided; interest-only loans that did not automatically
switch to principal-and-interest after the fixed-rate period; and loans to businesses that should have been provided to
individuals under the National Consumer Credit Protection Act
Analysis of where we
have not got it right
•Centralised oversight of remediation under the Chief Operating Officer in a remediation hub
•Since 2017, paid around $350 million in refunds to more than 500,000 customers as part of our get it right, put it
right initiative
Customer
experience
•Completed extensive product reviews
•Reviewing matters identified through the Royal Commission

Strengthening non-financial risk management
68
Stronger ‘three lines of defence’ and risk operating models
•New Risk Management Framework with three lines of defence and risk culture at its centre
•Introducing a more comprehensive risk “taxonomy” (catalogue of risks) to aid risk assessment,
measurement, mitigation and reporting
•Increased focus on timely issue resolution and risk reduction, supported by transparent metrics
•Upgrading JUNO, our non-financial risk system of record, to make it easier to use and derive insight from
•Comprehensive review of our three lines of defence operating model
•Clarification of roles and responsibilities in each line of defence
•Identification of capability requirements and development of training to uplift capability where required
•Streamlining and, where redundant, eliminating policies
•Building a more standardised set of controls, to increase efficiency and effectiveness of risk mitigation
•Greater investment in root-cause analysis to better understand why things go wrong and fix them
•Increased focus on lessons learned and “read across” from one incident to other similar contexts across the
company or across peer companies to test for the risk of further incidents arising from similar underlying causes
Risk infrastructure
Three lines of
defence
Simplification
Improved insights
Risk and
Compliance
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack

Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack

Remuneration and accountability
69
Sharpening accountability and strengthening conduct
Structure and
leadership
Clarity of accountability
Goals, metrics and
operating rhythm
•New business structure focused on customer segments
•Selective centralisation including remediation and customer complaints
•Banking Executive Accountability Regime (BEAR) rolled-out in 2018. Statements of responsibility for all key direct
reports of Accountable Persons in FY19
•Increased proportion of non-financial risk measures in executive scorecards
•Performance management framework, Motivate, emphasises behaviours, culture and delivery against objectives
Remuneration
structure
•Implemented Sedgwick Review recommendations for employees
•Replaced variable reward for tellers with fixed pay; removed individual product specific targets for personal bankers
and limited financial measures in bonus scorecards to no more than 30% for customer facing employees
•Group Remuneration Policy effectiveness review complete and enhancements underway to improve the Policy’s
application and supporting frameworks
•Various changes to executive remuneration following shareholder feedback
Consequence
management
•Enhanced Group-wide Consequence Management Framework in 2018
Remuneration
and accountability

Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack

Building a stronger culture of service
Our CGA self-assessment found that Westpac’s culture is analytical and highly consultative. While beneficial at times, this
characteristic has slowed down decision making, created undue complexity and diluted accountability.
We’re strengthening these aspects of our culture by building on existing programs which focus on leadership,
skills and behaviours

70
Strengthening
leadership
Clearer accountability
•New leadership development programs, including a program for Business Leaders and their direct reports
focusing on better execution, accountability and culture leadership
•Group-wide cultural immersion program, Navigate, provides a consistent understanding of our Code of Conduct,
values, Service Promise and vision. Program initiated in 2018 with new modules rolled out quarterly
•Simplified Service Promise in June 2019, to make expectations clearer for our people
•Group-wide approach to strengthening risk capability to support the three lines of defence
The right behaviours
•Strengthening our ‘speak up’ culture, including adoption of a single whistle-blower approach across the Group and
extending whistleblowing protections to employees of service providers and family members
•Our Compass helps employees navigate the increasingly complex world of banking and financial services, bringing
together our vision, values, Service Promise and our Code of Conduct to demonstrate how they all work together
•Group-wide performance management framework, Motivate, ties remuneration outcomes to behaviour
•Refreshed psychometric screening to ensure new recruits align to the Group’s culture and values
Culture

TCE AT 30 SEPTEMBER 2018 $3.5BN
Implementation underway Executive accountability

Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
Royal Commission response plan underway
Progress
11
11
27
49
27
recommendations
76
No action required
by Westpac
Implemented
Implementation
underway
Legislative /
regulatory action
required
Division

#
Consumer 14
Business 14
Strategy & Enterprise Services 4
Human Resources 8
Risk 4
Customer and Corporate Relations 2
Shared across divisions 3
Total 49
Royal Commission
Response Plan
71
•Dedicated team managing our Royal
Commission response
•Group Executive accountability and Board
oversight
•The Government's implementation roadmap
(August 2019) envisages the introduction of some
legislation in 2019 and the remainder in 2020
•Implementing recommendations where we can.
So far, of the 49 recommendations that presently
apply to Westpac:
–11 have been implemented. We have either
established new practices and procedures to
meet recommendations or we have existing
practices consistent with the
recommendations
–11 are being implemented. Implementation
work is in progress to meet
recommendations. Some recommendations
will require legislative or regulatory action
before implementation can be completed
–27 require legislative or regulatory action
before implementation work can commence.
We are undertaking preparatory work where
possible, including through participation in
Government consultation
•Ongoing effectiveness of new processes will be
tested through Westpac’s standard second and
third line testing procedures

Earnings
Drivers

214 214
203
152
151
161
152
147
161
518
512
525
Sep-18Mar-19Sep-19
Term depositsSavingsTransaction
40%
30%
30%
Composition of lending and deposits
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
Australian mortgage lending
1
($bn) Composition of lending (% of total) Net loans ($bn)
Customer deposit composition ($bn) Customer deposit mix ($bn) and % of total
73
63
13
8
3
11
2
Aust. mortgages
Aust. business
Aust. institutional
Aust. other consumer
New Zealand lending
Other overseas
lending
710
714
2
1
715
(1)
(1)
Sep-18
Mar-19
Consumer
Business
WIB
New
Zealand
Sep-19
Flat
Up 3%
Down 1%
206
206
209
144
143
148
105
96
101
63
67
67
518
512
525
Sep-18Mar-19Sep-19
ConsumerBusinessWIBOther
445
447
31
449
(29)
Sep-18
Mar-19
New
lending
Net run off
Sep-19
Revenue
1 Gross loans. 2 Includes Group Business and NZ, (NZ in A$).
2
+3% in NZ$

2.06
2.13
1.98
2.04
2H141H152H151H162H161H172H171H182H181H192H19
NIMNIM excl. Treasury & Markets
NIM excluding Treasury & Markets and notable items, down 2bps
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
Net interest margin by division (%)
Net interest margin (%)

Net interest margin (NIM) movement (%)
74
2.06
2.04
2.09
2.07
2.04
0.10
0.08
0.08
0.09
0.09
2.16
2.12
5bps 2.17
6bps
1bp (6bps)
0bp (1bp)
(2bps)
1bp
2.16 (3bps)
2.13
2H181H19
Add back notable items
1H19 ex-notable items
Short term wholesale
funding
Loans
Customer deposits
Term wholesale funding
Capital & other
Liquidity
Treasury &
Markets
2H19 ex notable items
Notable items
2H19
Treasury & Markets impact on NIMNIM excl. Treasury & Markets
Revenue
Restated for
adoption of AASB
9 and 15
Margin ex Treasury & Markets
and notable items down 2bps
2H18 1H19 2H19
NIM
Ex
notable
items NIM
Ex
notable
items NIM
Ex
notable
items
Consumer 2.14 2.20 2.20 2.23 2.27 2.29
Business 3.18 3.18 3.04 3.23 3.08 3.17
WIB 1.74 1.74 1.67 1.67 1.64 1.64
NZ 2.25 2.25 2.23 2.23 2.09 2.12

Non-interest income impacted by notable items
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
Net fee income ($m)
Insurance income ($m)
Non-interest income contributors ($m)
Wealth management income ($m)
1 2H18 includes $180m of fees associated with Hastings exit.
75
Revenue
1,017
893
826
829
929
1,088
323
700
507
419
464
443
69
56
101
16
2,522
2,456
1,714
1,988
1H182H181H192H19
FeesWealth and insuranceTradingOther
498
474
435
430
82
90
64
69
55
205
27
29
(435)
(102)
635
769
91
426
1H182H181H192H19
FundsOtherNZ & WIBNotable items
405
387
375
355
509
538
510
491
103
124
106
93
(156)
(165)
(110)
1,017
893
826
829
1H182H181H192H19
Facility feesNet transaction feesOther non-risk fee incomeNotable items
143 143
145
94
76
111
16
106
75
72
71
74
0
(7)
0
0
294
319
232
274
1H182H181H192H19
LifeGeneralLMI and NZNotable items
1

Expenses well managed ex notable items
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
Expense movements FY19 – FY18 ($m)
Expense movements 2H19 – 1H19 ($m)
76
9,698
9,586
340
99
71
37 9,570
461
10,031
(112)
(158)
(405)
FY18
Notable items
FY18 ex notable
items
Hastings
Ongoing
expenses
Productivity
Regulatory/
compliance
Investment
FX
FY19 ex notable
items
Notable
items
FY19 ex notable
items
Up 3%
4,767
5,041
135
100
57
3 4,803
187 4,990
(274)
(259)
1H19
Notable items
1H19 ex-notable
items
Ongoing
expenses
Productivity
Regulatory/
compliance
Investment
FX
2H19 ex notable
items
Notable
items
2H19
Down 1%
Expenses
35,241
35,580
35,096
35,029
33,288
Sep-15Sep-16Sep-17Sep-18Sep-19
FTE (#)
239
263
262
304
405
FY15FY16FY17FY18FY19
Productivity savings ($m)
Down 1% excl. FX

Up 1% excl. FX

1.32
1.71
2.98
2.37
0.52
0.40
0.59
0.69
2.7
4.5
4.9
3.1
Peer 1Peer 2Peer 3WBC
Capitalised software balance ($bn)
Amortisation ($bn)
Average amortisation period (years)
Investment spend focused on growth, productivity, risk and compliance
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
1 Includes write-offs, impairments and foreign exchange translation. 2 Peer 1 and 2 are reported on a continuing operations basis. Based on FY19 results. Peer 3 based on 1H19. Amortisation excludes impairments
and write-offs.

Investment spend mix ($m)
77
Investment spend ($m) Capitalised software
2
Expenses
859
890
784
325
377
503
139
197
219
1,323
1,464
1,506
FY17FY18FY19
Other technology
Regulatory change
Growth and productivity
FY17 FY18 FY19
Expensed 517 583 608
Capitalised

710 881 898
Total investment spend

1,256 1,464 1,506
Investment spend expensed 42% 40% 40%
Capitalised software
Opening balance 1,781 1,916 2,177
Additions

766 882 906
Amortisation (614) (618) (694)
Other
1
(17) (3) (24)
Closing balance 1,916 2,177 2,365
Average amortisation period 2.9yrs 3.1yrs 3.1yrs
Other deferred expenses
Deferred acquisition costs 86 71 61
Other deferred expenses 28 29 29

Impairment charges remain low
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
1 1H18 and 2H18 include impacts of pro forma adjustments to recoveries (other fees and expenses) and CAP (interest carrying adjustments). 2 1H19 reflects the adoption of AASB9 from 1 October 2018.
3 2008 and 2009 are pro forma including St.George for the entire period with 1H09 ASX Profit Announcement providing details of pro forma adjustments.
78
Impairment charges ($m)
Impairment charges and stressed exposures
3
(bps)
New IAPs
Write-backs & recoveries Write-offs direct Other movements in CAP
Total
Individually assessed Collectively assessed
13bps
120bps
0
100
200
300
400
500
0
20
40
60
80
100
120
20082009201020112012201320141H152H151H162H161H172H171H182H181H192H19
Impairment charge to average loans
annualised (lhs)
Stressed exposures to TCE (rhs)
Impairments
173
198
173
170
(174)
(168)
(150)
(170)
430
428
418
535
15
(90)
(108)
(74)
444
368
333
461
1H182H181H192H191H182H181H192H191H182H181H192H191H182H181H192H191H182H181H192H19
1 1,2
1 1
2

Credit
Quality

Standard and Poor’s Risk Grade
1
Australia NZ / Pacific Americas Asia Europe Group % of Total
AAA to AA-
104,527 10,933 10,701 3,331 729 130,221 12%
A+ to A-
33,940 5,204 5,123 7,633 3,482 55,382 5%
BBB+ to BBB-
57,617 11,668 3,691 10,464 2,429 85,869 8%
BB+ to BB
69,317 12,043 376 1,819 112 83,667 8%
BB- to B+
60,807 10,609 15 208 - 71,639 7%
<B+
6,126 1,665 - - - 7,791 1%
Mortgages
511,658 56,983 - 191 - 568,832 54%
Other consumer products
42,044 4,635 - - - 46,679 5%
Total committed exposures (TCE)
886,036 113,740 19,906 23,646 6,752 1,050,080

Exposure by region
2
(%)
85% 11% 2% 2% <1% 100%
High quality portfolio with bias to residential mortgage lending
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
1 Risk grade equivalent. 2 Exposure by booking office.

Lending composition at 30 September 2019 (% of total) Asset composition (%)
80
Credit quality
69
17
11
3
Housing
Business
Institutional
Other consumer
Total loans of $715bn
1 Risk grade equivalent. 2 Exposure by booking office.
Exposure by risk grade at 30 September 2019 ($m)
Total assets ($907bn) Sep-17 Sep-18 Sep-19
Loans 80 81 79
Available-for-sale securities and investment securities 7 7 8
Trading securities and financial assets at fair value
through income statement
3 3 4
Derivative financial instruments 3 3 3
Cash and balances with central banks 2 3 2
Collateral paid and other financial assets 1 1 1
Intangible assets 1 1 1
Life insurance assets and other assets 3 1 2

020406080100120
Mining
Other
Accommodation, cafes
& restaurants
Construction
Utilities
Transport & storage
Agriculture, forestry & fishing
Services
Property services & business services
Manufacturing
Wholesale & retail trade
Property
Government admin. & defence
Finance & insurance
Sep-17
Sep-18
Sep-19
Loan portfolio composition
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
1 Exposures at default is an estimate of the committed exposure expected to be drawn by a customer at the time of default. Excludes consumer lending. 2 Finance and insurance includes banks, non-banks, insurance
companies and other firms providing services to the finance and insurance sectors. 3 Property includes both residential and non-residential property investors and developers, and excludes real estate agents.
4 Construction includes building and non-building construction, and industries serving the construction sector. 5 NBFI is non-bank financial institutions.
1.4
1.3
1.1
1.2
1.3
1.1
1.2
1.0
1.1
1.0
1.0
Sep-09Sep-10Sep-11Sep-12Sep-13Sep-14Sep-15Sep-16Sep-17Sep-18Sep-19
Top 10 exposures to corporations and NBFIs
5
(% of TCE)
Top 10 exposures to corporations & NBFIs
at 30 September 2019 ($m)
81
Exposures at default
1
by sector ($bn)
2
3
4
Credit quality
The single largest
corporation/NBFI
exposure represents
0.2% of TCE
04008001,2001,6002,0002,400
A-
A
BBB+
A-
BBB
BBB+
A-
BBB
BBB-
A+
S&P rating or equivalent

Includes the
Group’s liquidity
portfolio
Reflects clearing
house membership

46
43
34
44
46
42
33
46
45
40
33
44
WestpacPeer 1Peer 2Peer 3
Sep-18Mar-19Sep-19
Well provisioned, sound credit quality
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
Provisioning ratios
Impaired asset provisions to impaired assets (%)
1 Includes provisions for credit commitments. 2 Sep-19 column reflects latest available data. Westpac and Peer 1 as at 30 September 2019. Peer 3 as at 30 June 2019. For Peer 2, periods are as at 30 June 2018, 31 December
2018 and 30 June 2019.
Total impairment provisions ($m)
82
Credit quality
Sep-18 1-Oct-18 Mar-19 Sep-19
Loan provisions
1
to gross loans (bps) 43 57 56 54
Impaired asset provisions to impaired assets
(%)
46 47 46 45
Collectively assessed provisions to credit
RWA (bps)
73 101 98 95
1,470
1,364
867
669
869
480
422 422
433
412
2,408
2,196
2,225
2,275
2,344
2,316
2,330
3,353
3,333
3,339
363
389
389
388
389
323
301
267
229
171
4,241
3,949
3,481
3,332
3,602
3,119
3,053
4,042
3,995
3,922
Sep-12Sep-13Sep-14Sep-15Sep-16Sep-17Sep-18Oct-18Mar-19Sep-19
Overlay
Collectively assessed provisions
Individually assessed provisions
2

Provision cover by portfolio category
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
83
Exposures as a % of TCE
0.15
0.14
0.17 0.17
0.37 0.39
0.43
0.48
0.57
0.55
0.50
0.55
3.24
3.03
98.91
98.92
95.66
95.77
Mar-18Sep-18Mar-19Sep-19
Fully
performing
portfolio
Watchlist &
substandard
90+ day past
due and not
impaired
Impaired
Fully performing portfolio
Small cover as low probability of default (PD) 0.20 0.18 0.09 0.09
Provisioning to TCE (%)
Mar-18 Sep-18 Mar-19 Sep-19
Watchlist & substandard
Still performing but higher cover reflects
deterioration
4.71 5.27 5.59 5.27
90+ day past due and not impaired
In default but strong security 5.03 5.11 12.34 11.07
Impaired assets
In default. High provision cover reflects
expected recovery
45.54 46.12 45.74 44.92
Stage 3
provisions

Credit quality
Stage 2
provisions

Stage 1
provisions

Non-stressed but significant increase in credit risk
Lifetime expected loss based on future economic
conditions
4.18 4.32
Non-stressed
but significant
increase in
credit risk

Stressed exposures modest rise in FY19
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
1 Facilities 90 days or more past due date not impaired. These facilities, while in default, are not treated as impaired for accounting purposes.
New and increased gross impaired assets ($m)
Movement in stress categories (bps) Stressed exposures as a % of TCE
84
108
3
4 (2)
(3)
110 0
5 (2)
7 120
Sep-18
Impaired
90+ dpd not
impaired
Substandard
Watchlist
Mar-19
Impaired
90+ dpd not
impaired
Substandard
Watchlist
Sep-19
1,060
1,194
997
958
708
609
607
633
1,078
477
589
440
471
450
519
550
1H122H121H132H131H142H141H152H151H162H161H172H171H182H181H192H19
0.58
0.44
0.27
0.20
0.22
0.15 0.15
0.14
0.17
0.17
0.35
0.31
0.26
0.25
0.33
0.34
0.37 0.39
0.43
0.48
1.24
0.85
0.71
0.54
0.65
0.56
0.57 0.55
0.50
0.55
2.17
1.60
1.24
0.99
1.20
1.05
1.09
1.08
1.10
1.20
Sep-12Sep-13Sep-14Sep-15Sep-16Sep-17
Mar-18
Sep-18
Mar-19
Sep-19
Watchlist & substandard
90+ day past due (dpd) and not impaired
Impaired
Increase mainly due
to rise in Australian
mortgage 90+ day
delinquencies and
increase in Watchlist
Credit quality
1
1
1

0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
Wholesale &
retail trade
Agriculture, forestry &
fishing
Property
Services
Property &
business services
Manufacturing
Construction
Transport & storage
Accommodation, cafes
& restaurants
Finance & insurance
Mining
Utilities
Sep-18Mar-19Sep-19
Overall corporate and business stressed exposures increased modestly
over 2H19
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
Corporate and business portfolio stressed exposures by industry ($bn)
85
Credit quality
A number of business
exposures migrated to
Watchlist, in particular within
motor vehicle retailing
A small number of
names downgraded
to Watchlist

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

Commercial property portfolio composition (%)
Commercial property exposures % of TCE and % in stress Commercial property portfolio
86
0
5
10
15
20
0
2
4
6
8
10
Mar-10
Sep-10
Mar-11
Sep-11
Mar-12
Sep-12
Mar-13
Sep-13
Mar-14
Sep-14
Mar-15
Sep-15
Mar-16
Sep-16
Mar-17
Sep-17
Mar-18
Sep-18
Mar-19
Sep-19
Commercial property as % of TCE (lhs)
Commercial property % in stress (rhs)
Sep-18 Mar-19 Sep-19
Total committed exposures (TCE) $67.6bn $66.9bn $66.9bn
Lending $52.0bn $52.3bn $51.7bn
Commercial property as a % of
Group TCE
6.51 6.39 6.37
Median risk grade

BB+
equivalent
BB+
equivalent
BB+
equivalent
% of portfolio graded as stressed
1,2
1.66 1.51 1.61
% of portfolio in impaired
2
0.23 0.22 0.15
19
10
7
4
4
11
45
NSW & ACT
VIC
QLD
SA & NT
WA
NZ & Pacific
Institutional
(diversified)
43
8
36
13
Investors &
Developers <$10m
Developers >$10m
Investors >$10m
Diversified Property
Groups and Property
Trusts >$10m
42
25
23
10
Commercial offices
& diversified groups
Residential
Retail
Industrial
Borrower type (%) Region (%) Sector (%)

Credit quality

Areas of interest: Inner city apartments
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
87
1 Percentage of commercial property TCE. 2 Totals may not add up due to rounding.

Sep-18 Mar-19 Sep- 19 TCE (%)
1
Residential apartment development >$20m 4.1 3.3 3.4 5.1
•Approvals and new starts lower and expected to slow further.
•Tightened risk appetite for areas of concern remains in place
•Settlements remain slightly slower than historical experience, but
Westpac’s debt has been repaid in full given low LVRs
Residential apartment development
>$20m in major markets, refer below
2

2.6 2.8 2.8 4.2
Sydney major markets 1.8 2.1 2.0 3.0
•Increase due to expanding definition of ‘major ’ Sydney suburbs in Nov-18.
Comparable TCE to Sep-18 would be $1.5bn at Sep-19
Inner Melbourne 0.6 0.5 0.5 0.7
•Weighted average LVR 48.8%
Inner Brisbane 0.1 0.1 0.1 0.1
•Slow market. Exposure low
Perth metro 0.1 0.1 0.1 0.1
•Activity slowly lifting
Consumer mortgages where security is within an
inner city residential apartment development
Sep-18 Mar-19 Sep-19
Total consumer mortgage loans for inner city
apartments
$15.2bn $15.3bn $15.3bn
Average LVR at origination
73% 72% 72%
Average dynamic LVR
57% 56% 56%
Dynamic LVR >90%
2.49% 3.59% 3.66%
90+ day delinquencies
44bps 62bps 66bps
Residential apartment development >$20m weighted
average LVR (%)
Consumer mortgages
Commercial property portfolio TCE ($bn)
46.9
50.6
47.6
201920202021
Expected completion date
Credit quality
Average portfolio
LVR 49%

Areas of interest: Retail trade
Motor vehicle retailing stress increasing
6.4
7.0
5.3
4.8
4.5
4.2
Sep-18Sep-19Sep-18Sep-19Sep-18Sep-19
Investment
Sub-investment
Stressed
Retail trade by internal risk grade category (TCE) ($bn)

88
% of Retail trade portfolio graded as stressed (%)

Credit quality
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
1 Includes impaired exposures. 2 Percentage of retail trade portfolio TCE.

Sep-18 Mar-19 Sep-19
Total committed exposures (TCE) $16.2bn $16.0bn $16.0bn
Lending $11.6bn $11.5bn $11.6bn
Retail trade as a % of Group TCE 1.56 1.53 1.52
Median risk grade

BB
equivalent
BB
equivalent
BB
equivalent
% of portfolio graded as stressed
1,2
4.84 5.43 6.05
% of portfolio in impaired
2
0.41 1.24 1.30
Retail trade portfolio
16.3
15.3
15.4
15.5
16.2
16.0 16.0
Sep-16Mar-17Sep-17Mar-18Sep-18Mar-19Sep-19
2.68
2.51
3.02
4.67
4.84
5.43
6.05
Sep-16Mar-17Sep-17Mar-18Sep-18Mar-19Sep-19
Retail trade exposure (TCE) ($bn)

Rising stress reflects challenging economic
conditions, in particular the impact of lower
new car sales on motor vehicle retailing
Personal and
household good
retailing
Motor vehicle
retailing and
services
Food retailing
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack

Areas of interest: Mining and Australian Agriculture
1 Includes impaired exposures. 2 Percentage of portfolio TCE. 3 Sourced from Westpac Economics and Bloomberg. 4 The steel index 62% Fe fines benchmark. 5 Brent oil price.
Australian Agriculture portfolio
Mining (inc. oil and gas) portfolio
89
Sep-18 Mar-19 Sep-19
Total committed
exposure (TCE)
$10.7bn $9.8bn $10.5bn
Lending $5.7bn $5.2bn $5.5bn
Median risk grade
(S&P equivalent)
BBB- BBB- BBB
% of Group TCE 1.03 0.94 1.00
% of portfolio graded as
stressed
1,2
0.99 0.81 0.99
% of portfolio in impaired
2
0.17 0.16 0.16
Sep-18 Mar-19 Sep-19
Total committed
exposure (TCE)
$10.6bn $10.9bn $11.2bn
Lending $8.5bn $8.6bn $9.1bn
Median risk grade
(S&P equivalent)
BB BB BB
% of Group TCE 1.02 1.04 1.07
% of portfolio graded as
stressed
1,2
4.40 4.65 4.29
% of portfolio in impaired
2
0.27 0.35 0.28
Credit quality
Iron Ore and Oil prices ($)
3
Mining portfolio (TCE)
by sector (%)
35
23
16
11
7
8
Oil and gas
Other metal ore
Mining services
Iron ore
Coal
Other
Australian Agriculture (TCE)
by state (%)
Australian Agriculture (TCE)
portfolio composition (%)
20
60
100
140
Sep-16Sep-17Sep-18Sep-19Sep-20
Iron ore (USD/t)Crude oil (USD/bbl)
4 5
Westpac
Economics
forecast
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
27
21
21
14
11
6
NSW/ACT
QLD
VIC/TAS
WA
SA/NT
Institutional
32
24
9
7
6
5
5
4
3
3
2
Grain
Beef & Sheep
Horticulture
Dairy
Services to Agri
Cotton
Fishing & Aquaculture
Viticulture
Forestry & Logging
Poultry
Other
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack

0.00
1.00
2.00
3.00
Sep-16Mar-17Sep-17Mar-18Sep-18Mar-19Sep-19
Total unsecured
consumer lending
Total ex-hardship
Australian consumer unsecured lending, 3% of Group loans
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
90+ day delinquencies (%) Australian unsecured portfolio ($bn)
1
1 Does not include Margin Lending.
90
Credit quality
Sep-18 Mar-19 Sep-19
Lending $21.1bn $20.7bn $19.5bn
30+ day delinquencies

(%) 3.65 4.08 3.68
90+ day delinquencies

(%) 1.73 1.87 1.77
Small increase in consumer unsecured 90+ day delinquencies over FY19 due to
portfolio contraction, temporary changes to collections operations partly offset by an
improvement in Auto Finance arrears
9.2
4.5
7.4
21.1
9.2
4.4
7.1
20.7
8.7
4.1
6.7
19.5
Credit cardsPersonal loansAuto loans
(consumer)
Total consumer
unsecured
Sep-18Mar-19Sep-19
Unsecured portfolio ($bn) Australian consumer unsecured lending portfolio
1
0
1
2
3
10
13
15
18
20
23
25
Sep-16
Nov-16
Jan-17
Mar-17
May-17
Jul-17
Sep-17
Nov-17
Jan-18
Mar-18
May-18
Jul-18
Sep-18
Nov-18
Jan-19
Mar-19
May-19
Jul-19
Sep-19
Unsecured performing loans balance ($bn lhs)
Unsecured 90+ day delinquencies balance ($bn rhs)

Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
Australian mortgage portfolio performance
91
Credit quality
1 Mortgage loss rate is for the 6 months ending. 2 Source: Pillar 3 Reports, based on APRA Residential Mortgage classification. Exposure is on and off balance sheet exposure at default. Data as at 30 September
2019 for Westpac. Data as at 30 June 2019 for Peer 1, Peer 2 and Peer 3.
0.0
1.0
2.0
3.0
Sep-15Sep-16Sep-17Sep-18Sep-19
90+ day past due total
30+ day past due total
Loss rates
0.0
1.0
2.0
3.0
Sep-15Sep-16Sep-17Sep-18Sep-19
NSW/ACTVIC/TAS
QLDWA
SA/NTALL
Australian mortgage
portfolio
Sep-
18
Mar-
19
Sep-
19
30+ day delinquencies

(bps) 140 159 161
90+ day delinquencies

(bps)
(inc. impaired mortgages)
72 82 88
Consumer
properties in possession
396 482 558
Mortgage loss rate
annualised (bps)
1
2 2 3
•Australian mortgage 90+ day delinquencies had a
peak in July 2019 of 91bps and declined in August
and September 2019
•Increase in FY19 reflects:
–Existing 90+ day borrowers remaining in
collections for longer due mainly to weak housing
market activity in most of FY19
–A greater proportion of P&I loans in the portfolio
(70% of portfolio at 30 September 2019)
–NSW/ACT delinquencies rose 6bps in 2H19
(16bps higher over FY19) to 69bps at 30
September 2019 (NSW/ACT represents 41% of
the portfolio)
–Seasoning of the RAMS portfolio, as this portfolio
has a higher delinquency profile
•Properties in possession continue to be mostly in WA
and Qld
0.89
0.77
0.82
0.75
0.00
0.20
0.40
0.60
0.80
0
1
2
3
4
5
6
Peer 1Peer 2Peer 3Westpac
Impaired assets (lhs)
Past due loans ≥90 days (lhs)
Total as a % residential mortgage
exposures (rhs)
Major banks’ total residential mortgage impaired and past due loans ≥ 90days
($bn and %)
2
$bn %
Australian mortgage delinquencies
and loss rates (%)

Australian mortgage 90+ day
delinquencies by State (%)

Australian mortgage portfolio composition
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
92
Credit quality
1 Flow is new mortgages settled in the 6 months ended 30 September 2019 and includes RAMS. 2 Includes amortisation. Calculated at account level, where split loans represent more than one account. 3 Loans ahead
on payments exclude equity/line of credit products as there are no scheduled principal payments. 4 Mortgage insurance claims 2H19 $5m (1H19 $7m; 2H18 $4m). 5 Source Comparator Apr-Jun 2019. 6 1 I/O is interest
only mortgage lending. P&I is principal and interest mortgage lending.
Australian mortgage portfolio
Sep-18
balance
Mar-19
balance
Sep-19
balance
2H19
Flow
1
Total portfolio ($bn) 444.7 447.2 449.2
30.6
Owner occupied (%) 56.8 57.3 58.3
61.6
Investment property loans (%) 39.1 39.1 38.5
38.1
Portfolio loan/line of credit (%) 4.1 3.6 3.2
0.3
Variable rate / Fixed rate (%) 77 / 23 76 / 24 75 / 25
65 / 35
Interest only (%) 34.8 30.6 26.9
21.3
Proprietary channel (%) 56.1 56.3 55.7
51.4
First home buyer (%) 7.8 8.0 8.4
10.9
Mortgage insured (%) 16.3 15.9 15.6
11.3
Sep-18 Mar-19 Sep-19
2H19
Flow
1
Average loan size
2
($’000)

273 275 277
372
Customers ahead on repayments
including offset account balances
3
(%)
69 69 70
Actual mortgage losses net of insurance
4
($m, for the 6 months ending)
38 51 57
Actual mortgage loss rate

annualised
(bps, for the 6 months ending)
2 2 3
Australian mortgage portfolio by State (%)
38
29
16
12
6
41
27
16
9
7
43
31
14
6
7
NSW & ACTVIC & TASQLDWASA & NT
Australian banking system
Westpac Group portfolio
FY19 Westpac Group drawdowns
5
Switching from I/O to P&I
6
($bn)

11.6
15.8
19.8
17.1
16.9
14.5
FY17FY18FY19
Customer initiated
Reached end of I/O
period

41
27
16
9
7
2.0
1.0
1.1
0.9
0.3
0.5
0.3
0.4
0.4
0.1
NSW & ACTVic & TasQldWASA & NT
% of total portfolio
% of total portfolio where dynamic LVR >90%
% of total portfolio where dynamic LVR >100%
Australian mortgage portfolio – borrower equity sound
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
93
Credit quality
1 Dynamic LVR is the loan-to-value ratio taking into account the current loan balance, changes in security value, offset account balances and other loan adjustments. Property valuation source Australian Property
Monitors. 2 Source: CoreLogic , 1 October 2019. 3 Weighted average LVR calculation considers size of outstanding balances. 4 Includes RAMS in 1H19 and 2H19. Excludes RAMS in 2H18. 5 Average LVR of new loans
is on rolling 6 months.
Australian housing loan-to-value ratios (LVRs) (%)
Australian mortgage portfolio LVRs
Sep-18
balance
Mar-19
balance
Sep-19
balance
Weighted
averages
3
LVR at origination (%) 74 74 74
Dynamic LVR
1,4
(%) 54 57 58
LVR of new loans
5
(%) 71 72 72
20
15
47
11
7
0
N/A
17
14
49
11
6
4
50
15
18
12
3
1
1.7
0
10
20
30
40
50
60
70
80
90
100
0<=6060<=7070<=8080<=9090<=9595<=100>100
FY19 drawdowns LVR at origination
Portfolio LVR at origination
Portfolio dynamic LVR
1
Australian housing loan-to-value ratios (LVRs) (%)
• WA remains most challenged by
weaker economic conditions
• Perth dwelling values
2

–21% lower than 2014 peak
–21% lower vs 5 years ago
• NSW best performing state
• Sydney dwelling values
2

–12% lower than 2017 peak

–Up 20% vs 5 years ago
• Negative equity remains low
• National dwelling prices remain
14% higher relative to 5 years ago
2

Australian mortgage portfolio underwriting
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
94
Credit quality
Notable changes to Westpac mortgage lending standards in FY19

Australian mortgage portfolio by
year of origination (% of total book)
4
1
2
2
3
3
3
4
5
8
11
13
15
16
11
Pre-2006
2006200720082009201020112012201320142015201620172018
2019 (YTD)
Calendar year
66% of the portfolio originated
after major tightening of
lending standards
2015
•Increase in minimum assessment (‘floor’) rate to 7.25% and increase in serviceability assessment buffer
to 2.25%
•Credit card repayments assessed at 3% of limit (previously 2%)
•Expenses benchmark (HEM) adjusted by income bands as well as post settlement postcode location,
marital status and dependants
•Serviceability for loans with interest only terms assessed over the residual P&I term, not full loan term
and maximum I/O terms reduced – owner occupied reduced to 5 years
2016
•Mandatory 20% minimum shading on all non-base income (e.g. rental income, annuity income) –
previously non-base income discounted by varying amounts
•Ceased non-resident lending. For Australian and NZ citizens and permanent visa holders using foreign
income, tightened verification and LVR restricted to 70%
•Maximum I/O terms for new IPLs reduced to 10 years
•Maximum LVRs restricted to include LMI capitalisation
2017
•30% limit on new interest-only lending, based on % of limits (removed 2019)
•Tighter limits on interest-only lending >80% LVR
•Heightened supervision of mortgage lending warehouses
•Strengthened pre settlement hind-sighting process of applications with introduction of day 2 review team
2018
•More granular assessment of expenses through the introduction of 13 categories to capture living
expenses and other commitments
•Income verification requirements for self-employed applicants strengthened
2019
•Categories to capture living expenses and other commitments increased to 17 (from 13)
•HEM tables updated with values are based on the 2015/2016 ABS Household Expenditure Survey
(HES), which replaces the 2009/2010 HES data previously used. This incorporates significant changes to
spending patterns with a more up-to-date view on actual expenses, relative to income
•
Tightened policy on acceptable valuation methodology
•Credit card repayments assessed at 3.8% of limit (previously 3%)
•Interest rate buffer increased from 2.25% to 2.50%; minimum assessment rate reduced from 7.25% in
line with revised prudential guidance; Westpac minimum assessment (‘floor’) rate currently 5.35%

Australian mortgage portfolio repayment buffers
1 Interest rates for Westpac Rocket Repay Home Loan inclusive of Premier Advantage Package discount assuming loan amount above $250,000. Pricing at 16 October 2019. 2 Excludes RAMS. 3 Customer loans
ahead on payments exclude equity/line of credit products as there are no scheduled principal payments. Includes mortgage offset accounts. ‘Behind’ is more than 30 days past due. ‘On time’ includes up to 30 days
past due.
1
29
20
22
6
21
2
29
20
22
6
21
2
28
21
22
6
21
BehindOn time< 1 Mth< 1 Yr< 2 Yrs>2 Yrs
Sep-18Mar-19Sep-19
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
95
Credit quality
Australian home loan customers ahead on repayments
3
(% by balances)
70% of Westpac
borrowers are ahead on
their mortgage
repayments, including
offset account balances
Westpac Australian offset account balances
2
($bn)
14
6
5
24
Sep-19
Investment property loans -
incentive is to keep repayments high
for tax purposes
Accounts opened in the last 12
months
Loans with structural restrictions on
repayments e.g. fixed rate
Residual - less than 1 month
repayment buffer
Loans ‘On time’ and <1 mth ahead (% of balances)
49
26.8
30.5
33.4
34.9
36.2
37.4
38.6
39.2
40.0
40.7
Mar-15
Sep-15
Mar-16
Sep-16
Mar-17
Sep-17
Mar-18
Sep-18
Mar-19
Sep-19
Linked to I/O mortgagesLinked to P&I mortgages.
3.54
4.13
4.09
4.35
2.50
2.50
2.50
2.50
6.04
6.63
6.59
6.85
P&II/OP&II/O
Owner occupiedInvestorBuffer.
Variable mortgage interest rates
1
(%)
Loans assessed at the
higher of the customer rate
(including any discounts)
plus 2.50% buffer, or
minimum assessment rate
(“floor rate”)
APRA advised that ADI’s
will set their own floor for
use in serviceability
assessments, effective 5
July 2019
Westpac now applies a
minimum floor rate of 5.35%
Serviceability
assessment rate
Floor
rate
5.35%

Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
Interest only mortgages
96
Credit quality
1 Weighted average LVR calculation takes into account size of outstanding balances. 2 Customer loans ahead on payments exclude equity/line of credit products as there are no scheduled principal payments.
3 Excludes RAMS. Dynamic LVR is the loan-to-value ratio taking into account the current loan balance, changes in security value, offset account balances and other loan adjustments. Property valuation source
Australian Property Monitors. 4 Excludes line of credit loans, I/O loans without date (including bridging loans and loans with construction purpose) and I/O loans that should have switched to P&I but for the previously
announced mortgage processing error.
0.0
0.5
1.0
1.5
2.0
Sep-17Mar-18Sep-18Mar-19Sep-19
I/OP&I
Australian mortgage delinquencies (%) Australian I/O loan portfolio ($bn)
0
2
4
6
8
10
12
14
0
50
100
150
200
250
Sep-17
Nov-17
Jan-18
Mar-18
May-18
Jul-18
Sep-18
Nov-18
Jan-19
Mar-19
May-19
Jul-19
Sep-19
I/O performing loans balance (lhs)
I/O 90+ day delinquencies balance (rhs)
11
7
3
25
19
9
13
8
5
49
34
17
<=60%60%<=80%>80%
Dynamic LVR bands (%)
>$250k
$100k - $250k
<$100k
Applicant
gross income bands
I/O lending by dynamic LVR
3
and income band (%)
•73% weighted average LVR of interest only loans at
origination
1

•62% of customers ahead of repayments (including
offset accounts)
2
•Offset account balances attached to interest only
loans represent 40% of offset account balances
•90+ day delinquencies 77bps (compared to P&I
portfolio 90bps)
•Annualised loss rate (net of insurance claims) 5bps
(1H19: 3bps). Increase in 2H19 mainly due to
portfolio contraction
Scheduled I/O term expiry
4
(% of total I/O loans)
20
22
17
8 8
18
7
0<1 Yr1<2 Yrs2<3 Yrs3<4 Yrs4<5 Yrs5<10 Yrs10 Yrs+

Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
Australian investment property portfolio
97
Credit quality
1 Weighted average LVR calculation takes into account size of outstanding balances. 2 Average LVR of new loans is on rolling 6 month window. 3 Includes RAMS in 1H19 and 2H19. Excludes RAMS in 2H18. Dynamic LVR is the loan-to-value ratio
taking into account the current loan balance, changes in security value, offset account balances and other loan adjustments. Property valuation source Australian Property Monitors. 4 Includes amortisation. Calculated at account level where split loans
represent more than one account. 5 Customer loans ahead on payments exclude equity/line of credit products as there are no scheduled principal payments.
Investment property lending (IPL) portfolio Sep-18 Mar-19 Sep-19
Weighted
averages
1
LVR of IPL loans at origination (%) 73 73 72
LVR of new IPL loans in the period
2
(%)

70 71 70
Dynamic

LVR
3
of IPL loans (%) 56 59 60
Average loan size
4
($’000) 321 321 322
Customers ahead on repayments
including offset accounts
5
(%)
58 58 59
90+ day delinquencies (bps) 57 68 73
Annualised loss rate (net of insurance claims) (bps) 3 3 4
0
10
20
30
40
50
0<=60
60<=7070<=7575<=8080<=8585<=9090<=9595<=97
97+
Owner occupiedIPL
0
5
10
15
20
25
30
<=50
50<=75
75<=100
100<=125125<=150150<=200200<=500
500<=1m
1m+
Owner occupiedIPL
Investment property portfolio by number of properties per
customer (%)
62
26
7
2
1
1
1
2
3
4
5
6+
Chart does not add to 100 due to rounding
Mortgage portfolio by gross income band (%) Mortgage portfolio by LVR at origination (%)
% %

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

Australian mortgage lending
1
by origination date, dynamic LV R
2
and income bands (%)
98
21
7
2
34
14
5
11
4
1
66
25
9
<6060-80>80
38
6
2
33
7
3
7
1
79
14
6
<6060-80>80
10
11
5
19
23
12
8
7
4
37
41
22
<6060-80>80
% of portfolio at 30 September 2019 16 22 62
Westpac SVR
3
(%) (excl. discounts) 7.86 6.89 – 5.70 5.38 – 4.83
Westpac interest rate buffer (%) 1.80 1.80 2.25 (2.50 effective Jul 2019)
Westpac interest rate floor (%) 6.80 6.80 7.25 (5.35 effective Sep 2019)
House price changes
4
At least +27% +12% to +36% (8%) to +12%
<2011 2011-14 2015+
Dynamic LVR
2
bands (%)
>$250k
$100k - $250k
<$100k

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

Lenders mortgage insurance arrangements
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
1 Since 18 May 2015 WLMI has underwritten all mortgage insurance, where required, on Westpac originated mortgages. The in-force portfolio of loans includes mortgage insurance provided by external providers. 2 Prudential Capital Requirement
(PCR) calculated in accordance with APRA standards. 3 Insured coverage is net of quota share. 4 Low doc loans no longer sold. Refers to arrangements in place for legacy products. 5 No WLMI coverage if the loan goes to 90+ arrears in the first
twelve months and insurance via WLMI ceases once the loans is 8 years from origination (unless in a securitised pool). 6 Loss ratio is claims over the total earned premium plus exchange commission. 7 LMI gross written premium includes loans
>90% LVR reinsured with Arch Reinsurance Limited. 2H19 gross written premium includes $56m from the arrangement (1H19: $52m and 2H18: $61m)
Lenders mortgage insurance arrangements Lenders mortgage insurance (LMI)
99
LVR Band insurance
•LVR ≤80%
• Low doc
4
LVR ≤60%
Not required
•LVR >80% to ≤ 90%
• Low doc
4

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

•LMI not required for certain borrower groups
•Reinsurance arrangements:
−40% risk retained by WLMI
−60% risk transferred through quota share arrangements with Arch Reinsurance
Limited, Renaissance Re, Endurance Re, Everest Re, Trans Re, AWAC and
Capita 2232
• LVR >90% •100% reinsurance through Arch Reinsurance Limited
−Reinsurance arrangements see loans with LVR >90% insured through WLMI with
100% of risk subsequently transferred to Arch Reinsurance Limited
2H18 1H19 2H19
Insurance claims ($m) 4 7 5
WLMI claims ratio
6
(%) 11 25 16
WLMI gross written premiums
7
($m) 90 76 84
Insurance statistics
•Where mortgage insurance is required, mortgages
are insured through Westpac’s captive mortgage
insurer, Westpac Lenders Mortgage Insurance
1
(WLMI), and reinsured through external LMI
providers, based on risk profile
•WLMI is well capitalised (separate from bank
capital) and subject to APRA regulation. WLMI
targets a capitalisation ratio of 1.2x PCR
2
and has
consistently been above this target
•Scenarios indicate sufficient capital to fund claims
arising from events of severe stress – estimated
losses for WLMI from a 1 in 200 year event are
$88m net of re-insurance recoveries
(1H19: $97m)
Credit quality
84
9
6
Not insured
Insured by third
parties
Insured by WLMI
Westpac’s Australian
mortgage portfolio at 30 Sep 2019 (%)
3
Chart does not add due to rounding

Mortgage portfolio stress testing outcomes
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
1 Assumes 50% of LMI claims will be rejected in a stressed scenario. 2 Represents 1H19 actual losses of $51m annualised. 3 Stressed loss rates are calculated as a percentage of average exposure at default (EAD).
100
Credit quality
Stressed scenario
Key assumptions Current Year 1 Year 2 Year 3
Portfolio size ($bn) 449 432 423 421
Unemployment rate (%) 5.3 11.6 10.6 9.6
Interest rates (cash rate, %) 1.00 0.00 0.00 0.00
House prices
(% change cumulative)
- (18.5) (29.7) (35.2)
Annual GDP growth (%) 1.4 (3.9) (0.2) 1.7
Stressed loss outcomes (net of LMI recoveries)
1
Portfolio at 31 March 2019
$ million

102
2
1,837 2,578 874
Basis points
3
2 38 54 19
Portfolio at 30 September 2019
$ million

108 1,948 2,729 973
Basis points
3
2 40 57 21
•Westpac regularly conducts a range of portfolio stress tests as part of its
regulatory and risk management activities
•The Australian mortgage portfolio stress testing scenario assumes a severe
recession in which significant reductions in consumer spending and business
investment lead to six consecutive quarters of negative GDP growth. This results
in a material increase in unemployment and nationwide falls in property and other
asset prices
•Estimated Australian housing portfolio losses under these stressed conditions are
manageable and within the Group’s risk appetite and capital base
−Cumulative total losses of $5.1bn over three years for the uninsured portfolio
(FY18: $4.4bn)
−Cumulative claims on LMI, both WLMI and external insurers, of $1.0bn over the
three years (FY18: $1.0bn)
−Loss rates have increased primarily due to further declines in house prices
which lead to a higher dynamic LVR starting point for the portfolio and an
increase in the LMI claim rejection rate from 30% to 50%
•WLMI separately conducts stress testing to test the sufficiency of its capital
position to cover mortgage claims arising from a stressed mortgage environment
•Capital targets incorporate buffers at the Westpac Group level that also consider
the combined impact on the mortgage portfolio and WLMI of severe stress
scenarios
Australian mortgage portfolio stress testing

Capital, Funding
and Liquidity

10.63
10.64
92
27
17
58 ~11.25
(75)
(4)
(6)
(13)
(14)
(16) (5)
10.67
Sep-18Mar-19Cash
earnings ex
notable items
Interim
dividend
DRPOrdinary
RWA
growth
IRRBBOther capital
movements
Notable itemsDerivative
standard
Op Risk
CGA overlay
Op Risk
standardised
overlay
Sep-19Capital
expected to
be raised
Sep-19
Pro forma
CET1 ratio of 10.7%, increasing to ~11.25%
on a pro forma basis
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
1 58 basis point increase reflects the impact of the Placement $2.0bn and assumes the SPP raises $500 million. The basis point impact is net of issue costs. 2 Dividend reinvestment plan (DRP) reflects 1.5%
discount applied for Interim 2019 dividend. 3 The impact of notable items on the CET1 capital ratio includes the capital deductions for associated deferred tax assets.
•AASB16 leasing accounting standard applies from 1 October 2019
(~8bps reduction to the CET1 ratio)
•APRA unquestionably strong capital of 10.5% to be met by 1
January 2020
•Further clarity on revised APRA capital framework expected over
2019/20
•Final RBNZ capital proposals expected in December 2019

•CET1 ratio of 10.67%, up 3bps from 31 March 2019
•Over the half, organic capital growth of 51bps, was largely offset by
other items (48bps). Other items related to higher RWAs from
operational risk overlays (21bps), a new derivative RWA standard
(14bps) and the impact of notable items (13bps)
•On a pro forma basis, taking into account an expected $2.5bn
1

capital raise, the September 2019 CET1 ratio would increase to
~11.25%
CET1 capital ratio movements (%, bps)
Future developments Capital update
102
Capital, Funding and Liquidity
Organic
(+51bps)
Other Items
(-48bps)
Up 3 basis points
2
1
3

Key capital ratios
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
1 Internationally comparable methodology aligns with the APRA study titled ‘International Capital Comparison Study’ dated 13 July 2015. For more details on adjustments refer slide 108. 2. Group 1 banks BIS 75
th

percentile fully phased-in Basel III capital ratios from BIS monitoring report released 2 October 2019.
CET1 capital ratio (%) and CET1 capital ($bn)
Key capital ratios (%)
10.7
12.8
15.6
15.9
18.6
22.1
CET1Tier 1Total
regulatory
capital
CET1Tier 1Total
regulatory
capital
BIS 75th Percentile
103
40
43
44
45
45
46
10.0
10.6
10.5
10.6
10.6
10.7
~11.25
0
2
4
6
8
10
12
15
20
25
30
35
40
45
50
55
Mar-17Sep-17Mar-18Sep-18Mar-19Sep-19Sep-19
Pro forma
Westpac CET1 capital (lhs, $bn)Westpac CET1 capital ratio (rhs, %)
%
Sep-18 Mar-19 Sep-19
CET1 capital ratio 10.6 10.6 10.7
Additional Tier 1 capital 2.2 2.2 2.2
Tier 1 capital ratio 12.8 12.8 12.8
Tier 2 capital 1.9 1.8 2.8
Total regulatory capital ratio 14.7 14.6 15.6
Risk weighted assets
(RWA)

($bn)
425 420 429
Leverage ratio 5.8 5.7 5.7
Internationally
comparable ratios
1

Leverage ratio
(internationally comparable)
6.5 6.4 6.4
CET1 capital ratio
(internationally comparable)
16.1 16.2 15.9
APRA basis
Internationally comparable
1
basis
Capital, Funding and Liquidity
Capital ratios
2

Well placed to respond to New Zealand changes
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
1 “Revisions to APS 111 Capital Adequacy: Measurement of Capital” released on 15 October 2019. For this purpose equity investments includes Additional Tier 1 and Tier 2 capital. 2 63 basis point increase reflects
the Level 1 impact of the underwritten $2.0bn Placement and assumes the SPP raises $500 million after allowing for the change to risk weights from the proposed change to APS 111. The basis point impact is net of
issue costs. 3 Based on the WNZL balance sheet as at 30 September 2019 including the estimated impact of the RBNZ’s proposed changes to risk weighted assets. Assumes that some of WNZL’s supplementary
capital can be issued externally over time.

•APRA has proposed changes to the capital treatment of a parent
ADI’s (“Level 1”) equity investments in subsidiary banking and
insurance companies to commence 1 January 2021
1
•Based on 30 September 2019, the impact is a ~40bps reduction in
Westpac’s Level 1 CET1 ratio, primarily from Westpac’s equity
investment in WNZL
•Taking into account the expected $2.5bn
2
capital raise, the Level 1
pro forma would be 11.21%
•The RBNZ is consulting on capital requirements for New Zealand
banks, including a Tier 1 capital requirement of 16% for systemically
important NZ banks including WNZL, and changes to risk weighted
asset measurement. Further clarity from the RBNZ is expected in
December 2019
•On a pro forma basis, the proposals would increase Westpac’s
Level 1 capital requirements by NZ$1.2 - NZ$1.8 billion (assuming
a WNZL Tier 1 capital ratio of 16-17%) if the proposals were
applied at 30 September 2019
3
•Westpac is well placed to respond to the changes within the
proposed transition period (currently 5 years)
RBNZ proposals – WNZL Tier 1 capital ratio (%)
Level 1 CET1 capital ratio (%, bps) Level 1 and New Zealand Capital Review
104
13.9
16.0 – 17.0
Sep-19 WNZL Tier 1
capital ratio
WNZL Tier 1
capital ratio with RBNZ
10.98
63 11.21
~11.25
(40)
Sep-19
Level 1
APRA
proposal
Capital
expected to
be raised
Sep-19
Level 1
pro forma
Sep-19
Level 2
pro forma
2
Proposed change to APRA
treatment of equity investments
1

Capital, Funding and Liquidity

425.4
419.8
5.1
1.0
9.0
0.4 428.8
(6.5)
Sep-18Mar-19Credit riskMarket
risk
IRRBBOperational
risk
OtherSep-19
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
Risk weighted assets ($bn)

Movement in credit risk weighted assets ($bn)

Capital, Funding and Liquidity
Up $9.0bn or 2%
362.7
362.8
0.8
2.0
5.3 367.9
(2.3)
(0.7)
Sep-18Mar-19Business growthCredit quality and
portfolio mix
FX translation
impacts
Mark-to-marketDerivative capital
standard
Sep-19
Up $5.1bn or 1%
See below
105
Translation impact,
mostly NZ$ loans
RWA higher from operational risk overlays
and new derivative capital standard

•Credit risk weighted assets up due to the introduction of a
new derivative capital standard

•Operational risk RWA up due to APRA overlay in response
to the CGA self-assessment ($6.3bn) and to align Westpac’s
operational risk capital to the standardised approach
($ 2.1bn)

•IRRBB RWA reduced $6.5bn to $0.5bn due to impact of
lower interest rates on the embedded gain

Expected timetable on various regulatory changes
1

1 Regulatory change timeline based on APRA’s paper “Revisions to the capital framework for authorised deposit-taking institutions” (published 12 June 2019).
106
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
Standardised approach to
credit risk
Consult, additional quantitative impact study Finalise Implementation
Advanced approach to
credit risk
Consult, additional quantitative impact study Finalise Implementation
Operational risk Consult and finalise Implementation
Leverage ratio Finalise Implementation
Measurement of capital Consult Finalise Implementation
Capital floor Consult Finalise Implementation
Interest-rate risk in the
banking book
Consult Finalise Implementation
Level 1 equity exposures Consult and finalise Implementation
RBNZ capital framework Finalise Implementation date and transition under consultation
Related party exposures Finalise Implementation
Loss absorbing capacity
1
st
phase announced
+3ppts of RWA as
Tier 2
Further consultation on 2nd phase
2024
Implementation
Capital, Funding and Liquidity
2022
First half
2020

2021
Second half
2020
Second half
2019

Well placed on internationally comparable
CET1 and leverage ratios
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
1. Peer group comprises listed commercial banks with assets in excess of A$700bn and which have disclosed fully implemented Basel III ratios or provided sufficient disclosure to estimate. Based on company reports/ presentations. Ratios at 30 June
2019, except for NAB which is at 31 March 2019, ANZ and Westpac which are at 30 September 2019, and Bank of Montreal, Scotiabank, Royal Bank of Canada and Toronto Dominion are at 31 July 2019. Assumes Basel III capital reforms fully
implemented. Leverage ratio is on a transitional basis. Where accrued expected dividends have been deducted and disclosed, these have been added back for comparability. US banks are excluded from leverage ratio analysis due to business model
differences, for example from loans sold to US Government sponsored enterprises. NAB has not disclosed an internationally comparable leverage ratio since September 2017.
Common equity Tier 1 ratio (%)
1

Leverage ratio (%)
1

Capital, Funding and Liquidity
107
Norinchukin Bank

Danske Bank

RBS

ANZ

CBA

Sumitomo Mitsui

Westpac 15.9%

Rabobank

Nordea
BPCE
ING Group

Lloyds

NAB

HSBC

China Construction Bank

Barclays

Standard Chartered

Intesa Sanpaolo

Deutsche Bank

Commerzbank

ICBC
Mitsubishi UFJ

Credit Suisse

Mizuho FG

Societe Generale

JPMorgan Chase

BNP Paribas

Citigroup

Unicredit

Toronto Dominion Bank

Wells Fargo

Royal Bank of Canada

Credit Agricole SA

BBVA
Bank of America

Santander

Natixis

China Merchants Bank

Bank of Montreal

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

ICBC
Bank of China

BBVA
Agricultural Bank of China

Bank of Communications

CBA

China Merchants Bank

Westpac 6.4%

ANZ

Intesa Sanpaolo

Rabobank

Norinchukin Bank

RBS

HSBC

Credit Suisse

Standard Chartered

Nordea

Unicredit

BPCE
Santander

Lloyds

Mitsubishi UFJ

Sumitomo Mitsui

Barclays

Commerzbank

Danske Bank

ING Group

Credit Agricole SA

Societe Generale

Royal Bank of Canada

Bank of Montreal

Mizuho FG

Scotiabank

BNP Paribas

Deutsche Bank

0%
2%
4%
6%
8%

Internationally comparable capital ratio reconciliation
1 Methodology aligns with the APRA study titled “International capital comparison study", dated 13 July 2015.
Capital, Funding and Liquidity
(%)
Westpac’s CET1 capital ratio (APRA basis)

10.7
Equity investments Balances below prescribed threshold are risk weighted, compared to a 100% CET1 deduction under APRA’s requirements 0.4
Deferred tax assets Balances below prescribed threshold are risk weighted, compared to a 100% CET1 deduction under APRA’s requirements 0.5
Interest rate risk in the banking
book (IRRBB)
APRA requires capital to be held for IRRBB. The BCBS does not have a Pillar 1 capital requirement for IRRBB 0.0
Residential mortgages
Loss given default (LGD) of 15%, compared to the 20% LGD floor under APRA’s requirements. APRA also applies a
correlation factor for mortgages higher than the 15% factor prescribed in the Basel rules
1.9
Unsecured non-retail exposures LGD of 45%, compared to the 60% or higher LGD under APRA’s requirements 0.7
Non-retail undrawn commitments Credit conversion factor of 75%, compared to 100% under APRA’s requirements 0.5
Specialised lending

Use of internal-ratings based (IRB) probabilities of default (PD) and LGDs for income producing real estate and project
finance exposures, reduced by application of a scaling factor of 1.06. APRA applies higher risk weights under a supervisory
slotting approach, but does not require the application of the scaling factors
0.7
Currency conversion threshold
Increase in the A$ equivalent concessional threshold level for small business retail and small to medium enterprise
corporate exposures
0.2
Capitalised expenses
APRA requires these items to be deducted from CET1. The BCBS only requires exposures classified as intangible assets
under relevant accounting standards to be deducted from CET1
0.3
Internationally comparable CET1 capital ratio 15.9
Internationally comparable Tier 1 capital ratio 18.6
Internationally comparable total regulatory capital ratio 22.1
APRA’s Basel III capital requirements are more conservative than those of the Basel Committee on Banking Supervision (BCBS), leading to lower reported
capital ratios by Australian banks. In July 2015, APRA published a study that compared the major banks’ capital ratios against a set of international peers
1
.
The following details the adjustments from this study and how Westpac’s APRA Basel III CET1 capital ratio aligns to an internationally comparable ratio
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
108

Long term wholesale funding
109
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
1 Based on residual maturity and FX spot currency translation. Includes all debt issuance with contractual maturity greater than 13 months excluding US Commercial Paper and Yankee Certificates of Deposit. 2 Contractual maturity date for hybrids
and callable subordinated instruments is the first scheduled conversion date or call date for the purposes of this disclosure. 3 Perpetual sub-debt has been included in >FY25 maturity bucket. Maturities exclude securitisation amortisation. 4 Tenor
excludes RMBS and ABS. 5 WAM is weighted average maturity.
1
8
7
5
17
7
11
1
30
38
42
43
46
41
FY17FY18FY19
>5years
5 years
4 years
3 years
2 years
1 year
5.8yrs
New term issuance by tenor
2,4
(%)
6.5yrs
WAM
5
New term issuance by type (%) New term issuance by currency (%)
66
73
51
18
13
24
5
5
8
4
5
4
8
4
13
FY17FY18FY19
Subordinated
debt
Hybrid
Securitisation
Covered bonds
Senior
unsecured
7
15
7
22
21
21
49
32
27
21
32
46
FY17FY18FY19
AUD
USD
EUR
Other
Capital, Funding and Liquidity
Charts may not add to 100 due to rounding.
Charts may not add to 100 due to rounding. Charts may not add to 100 due to rounding.
6.0yrs
33
31
42
37
32
34
31
33
26
18
25
6
28
FY14FY15FY16FY17FY18FY19FY20FY21FY22FY23FY24FY25
>FY25
Covered bondHybridSenior/SecuritisationSub debt
Issuance Maturities
Term debt issuance and maturity profile
1,2,3
($bn)
•A$33.5bn new term wholesale funding raised in FY19
•Majority of new issuance in senior unsecured bonds
(51%) and covered bonds (24%) in line with prior
years
•Increased Tier 2 issuance ($4.2bn in FY19), as the
Group made progress towards meeting APRA’s TLAC
requirements
•Additional diversity provided through issuance of
$1.4bn AT1 and $2.8bn in RMBS
•Higher proportion of AUD term issuance in FY19
reflects strong liquidity and demand in the Australian
market relative to prior years

Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
Funding and liquidity metrics
1 Includes long term wholesale funding with a residual maturity less than or equal to 1 year. 2 Equity excludes FX translation, Available-for-Sale securities and Cash Flow Hedging Reserves. 3 LCR is calculated as the percentage ratio of stock of HQLA
and CLF over the total net cash outflows in a modelled 30 day defined stressed scenario. Calculated on a spot basis. HQLA includes HQLA as defined in APS 210, RBNZ eligible liquids, less RBA open repos funding end of day ESA balances with the
RBA. Committed Liquidity Facility or CLF is made available to Australian Authorised Deposit-taking Institutions by the RBA that, subject to qualifying conditions, can be accessed to meet LCR requirements under APS210 – Liquidity. Other flows include
credit and liquidity facilities, collateral outflows and inflows from customers. 4 Other includes derivatives and other assets. 5 Other loans includes off balance sheet exposures and residential mortgages >35% risk weight.
44
63
63
5
8
8
1
1
1
10
12
12
4
4
5
20
7
7
16
5
5
Sep-08Sep-18Sep-19
Wholesale Onshore <1yr
Wholesale Offshore <1yr
Wholesale Onshore >1yr
Wholesale Offshore >1yr
Securitisation
Equity
Customer deposits
110
Funding composition by residual maturity (%)
Net stable funding ratio (NSFR) at 30 September 2019 ($bn)
Available Stable FundingRequired Stable Funding
606.8
544.0
Capital
Retail &
SME
deposits
Corporate &
Institutional
deposits
Wholesale
funding and
other liabilities
Residential
mortgages
≤35% risk
weight
Other
loans
5
Liquids
and other
4
31 March 2019 30 September 2019
Customer deposits High Quality Liquid Assets
Wholesale funding Committed Liquidity Facility
Other flows
NSFR
31 Mar 2019 113%
30 Sep 2019 112%
2
1
1
Capital, Funding and Liquidity
Bars may not add to 100 due to rounding
97.0
133.7
113.4
143.9
Net cash outflowsLiquid assetsNet cash outflowsLiquid assets
Liquidity coverage ratio (LCR)
3
($bn and %)
LCR 138% LCR 127%

Divisional
Results

1,573
1,607
2 1,609
167
31
1,712
1,681
(8)
(45)
(42)
(31)
2H181H19
Add back notable
items
1H19 ex-notable
items
Net interest income
Non-interest income
Operating expenses
Impairment charges
Tax and NCI
2H19 ex-notable
items
Notable items
2H19
Consumer earnings up 6% (excluding notable items)
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
2H18 1H19 2H19
Change
on 1H19
Revenue
1
($m)
4,442 4,439 4,644
5%
Net interest margin
1
(%)
2.14 2.20 2.27
7bps
Expense to income
1
(%)
43.9 42.5 41.6
(91bps)
Customer deposit to loan ratio (%)
53.5 53.2 53.9
71bps
Stressed exposures to TCE
1
(%)

0.65 0.74 0.81
7bps
Life Insurance in-force premiums
1
($m)
1,277 1,259 1,212
(4%)
General Insurance GWP ($m) 252 259
279
8%
2H18 1H19 2H19
Change
on 1H19
Total banking customers (#m)
9.5 9.5 9.6 1%
Active digital banking customers (#m)
4.3 4.4 4.4 -
Digital sales
2
(%)
37 38 39
1ppt
Total branches (#)
1,006 971 955
(16)
Total ATMs (#)
2,542 2,213 2,193
(20)
Customer satisfaction
2,3

7.3
(2
nd
)
7.3
(2
nd
)
7.3
(2
nd
)
-
Net promoter score (NPS)
2,3
6mma
4
-6.8
(2
nd
)
-6.6
(2
nd
)
-7.3
(3
rd
)
Down 1
place
Key operating metrics
Key financial metrics Cash earnings ($m)
112
Consumer
AIEA up 1%, higher margin
from lower short term
wholesale funding costs
offset by lower deposit and
mortgage spreads
Up $103m or 6%
Higher unsecured
write-offs and lower
recoveries
Up $74m or 5%
Lower weather
related insurance
claims
1 Restated for the impact of restructure of BTFG. 2 Refer pages 153 and 154 for metric definitions and details of provider. 3 Customer satisfaction and NPS metrics refer to total Consumer customers across the
Westpac Group. Data for 2H19 as at August 2019. 4 6 month moving average.

2,893
2,494
2,553
2,713
1H182H181H192H19
4,719
4,442
4,439
4,644
1H182H181H192H19
2H19 performance reflects disciplined management
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
Revenue per FTE ($’000) Loans ($bn) & deposit to loan ratio (%) Expense to income ratio (%)

Core earnings ($m) Cash earnings ($m) Revenue ($m)
113
Consumer
1,850
1,573
1,607
1,681
1H182H181H192H19
38.7
43.9
42.5
41.6
1H182H181H192H19
427
398
414
440
1H182H181H192H19
379
385
387
389
52.7
53.5
53.2
53.9
Mar-18Sep-18Mar-19Sep-19
LoansCustomer deposit to loan ratio
Core earnings reduced by
notable items of
1H19:($16m) 2H19:($46m)
Cash earnings reduced by notable
items of 1H19:($2m) 2H19:($31m)
Revenue reduced by notable
items of 1H19:($47m)
2H19:($40m)
Expense to income ratio
impacted by notable items
1H19:(-0.2%) 2H19:(+0.5%)

Jun-15Jun-16Jun-17Jun-18Jun-19
WBCPeer 1Peer 2Market Avg
Insurance fundamentals
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
Insurance claims rates (%)
Life insurance market share
1,2
(%)
Insurance premiums ($m)
Life insurance lapse rates
1
(%)
1 Strategic Insights June 2019. 2 Market share is Retail life insurance new sales.
114
Consumer
54
37
81
43
44
42
48
53
1H182H181H192H19
General InsuranceLife Insurance
251
252
259
279
1,000
994
979
960
276
283
280
252
1,527
1,529
1,518
1,491
1H182H181H192H19
General Insurance GWPRetail Life in-force premiums
Group Life in-force premiums
Jun-15Jun-16Jun-17Jun-18Jun-19
WBCPeer 1Peer 2Avg next top 4

Making banking easy
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
1 Eligibility criteria applies when qualifying for premium discounts. 2 This feature only available for Westpac Group members.
Simplify
115
Digitising Connecting
Consumer
Online Home Loan app
•Paperless application
with document upload
and e-sign
•Extended to in-branch
lenders
Term Deposit Pricing
Platform
•View, accept and fulfil
term deposits online
•Reduction in pricing
escalations to bankers
from 25% to 2%
eWallet transactions up
82% PCP
•All customers can access
−Google Pay
−Samsung Pay
−New Payments Platform
General Insurance
•Enhanced online claims
experience with 40%
quicker lodgement time
and better document
upload capability,
improving claim
response time
•Online lodgements for
Home and Contents
have increased 59% on
prior year

Life Insurance
•‘My Wellbeing’ portal
giving customers
improved content,
tools, ‘Benefits Now’
rewards and discounts
on premiums
1
•Portal for self service
claims lodgement,
document upload and
payment tracking,
accessed via online
banking or Panorama
2

Webchat
•Customers on Westpac desktop and mobile
can contact Westpac via secured messaging
and Webchat anywhere, anytime
•Westpac’s Red (bot) has conducted almost
1 million live chats with over 70% of issues
resolved without escalation to a banker
Personalising the online
experience
•Relevant, timely offers
based on customer
behaviour
•Deposit click-to-action
rate increased from 4%
to 20%
•Customer recurring
payments

Business 2H19 performance impacted by notable items and higher
impairments
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
1 Represents Business customers only. Excludes Private wealth. 2 DBM external ratings, 2H19 as at August 2019. SME refers to Total SME. 3 Share of sales made digitally for eligible products, excludes wealth. 4
Retail Platforms market share sourced from Strategic Insight, All Master Funds Admin segment and represents the Westpac Business Wealth market share disclosed in Strategic Insight as at June 2019 (2H19),
December 2018 (1H19) and June 18 (2H18).

151
(30)
1,358
1,267
1,418
(124)
60
1,164
(33)
(8)
(119)
1,283
2H181H19
Add back notable items
1H19 ex-notable items
Net interest income
Non-interest income
Operating expenses
Impairment charges
Tax and NCI
2H19 ex-notable items
Notable items
2H19
2H18 1H19 2H19
Change
on 1H19
Revenue ($m)
3,472 3,263 3,293
1%
Net interest margin (%)
3.18 3.04 3.08
4bps
Expense to income (%) 38.9 42.1 43.4
129bps
Customer deposit to loan ratio (%)
82.83 82.76 85.43
267bps
Stressed exposures to TCE (%)
2.48% 2.43% 2.72%
29bps
Total funds ($bn) (spot)
205.6
203.1 215.4
6%
2H18 1H19 2H19
Change
on 1H9
Total business customers
1
(‘000’s)
1,079 1,073 1,072
-
Customer satisfaction
2
(rank)
#1 #1 #1
-
Customer satisfaction – SME
2
(rank)
#1 #1 #1
-
Digital sales
3
(%) 15 20 21 1ppt
Platform FUA market share
4
(inc. Corp Super) (%)
19 18 18 -
Key operating metrics
Key financial metrics Cash earnings ($m)
116
Business
AIEA flat. Margins down 6bps
(ex notable items) from reduced
deposit spreads
Lower wealth revenue
and merchant fees
Down $103m or 8%
Higher stressed exposures
and an increased weighting
to the downturn scenario in
provisioning models
Down $135m or 10%
ex notable items

2H19 key metrics
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack
1,398
1,358
1,267
1,164
1H182H181H192H19
172
174
172
173
81.2
82.8 82.8
85.4
Mar-18Sep-18Mar-19Sep-19
LoansCustomer deposit to loan ratio
3,452
3,472
3,263
3,293
1H182H181H192H19
39.2
40.1
2.9
3.3
37.7
38.9
42.1
43.4
1H182H181H192H19
Notable items impact
657
668
644
650
1H182H181H192H19
2,152
2,121
1,888
1,863
1H182H181H192H19
Revenue per FTE ($’000) Expense to income ratio (%)
Core earnings ($m) Cash earnings

($m)
117
Business
Core earnings lower from
notable items of
1H19:($217m) 2H19:($171m)
Cash earnings lower from
notable items of
1H19:($151m) 2H19:($119m)
Revenue lower from
notable items of
1H19 ($197m) 2H19 ($104m)
Revenue ($m)
Loans ($bn) & deposit to loan ratio (%) Loans ($bn) & deposit to loan ratio (%)
Revenue per FTE lower from
notable items
1H19:($39k) 2H19:($21k)

Transforming Business
Westpac Group 2019 Full Year Results Presentation & Investor Discussion Pack

Digitising our customer experience
•Biz Invoice – over 10,000 SME customers have signed
up to our free online invoicing solution, which creates,
sends and auto reconciles invoices. New features include
automatic overdue payment reminders, reporting, BPAY,
and an integrated merchant facility
•Digital Sales - investment in digital capabilities has
supported a 6ppt rise in the proportion of digital sales to
21% from 15% in 2H18
Customer enhancements
•Presto Smart - provides seamless payment integration
capability. In July, launched a merchant dashboard,
providing real time transaction information
•Business Loan Finder – online tool that helps customers
to find a suitable loan product
•Merchant Service Visibility – giving merchant customers
better facility visibility and access online
•ABN update – business customers can update their ABN
online
Digital Transformation
118

Simplifying our operating model
Streamlined our operating model to drive greater efficiency
and better serve customers by bringing all brands together
under the following teams: commercial, SME and servicing
Leveraging regulatory investment to deliver strategic
capabilities
•Developed a risk platform with capability to meet new
APRA commercial property requirements, as well as
enhancing our control environment
•Streamlined and automated the generation of lending
documents resulting in 25% fewer words and 47%
reduction in documentation, making them easier for
customers to read and understand. This also provides
greater operational control and future flexibility
•Leveraging the capability developed to meet ATO
regulatory requirements, to enable foundational self-
service for merchant customers, including the delivery of
eStatements, and merchant account visibility

Performance Disciplines
Business
Empowering customers with
enhanced online account opening
and servicing capabilities
Building a simpler and better
business for the future by embracing
regulatory change and simplifying
our operating model
Investing in banker capacity and
capability to provide w
[TRUNCATED]

Westpac acknowledges financial product advice ruling WBC – Trading Halt of Securities Lifted

Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.