2019 Westpac Group Annual Review and Sustainability Report

Help when
it matters.
2019
Annual Review &
Sustainability Report

Our commitment to helping
started in 1817 when Westpac first
opened its doors, helping to build
a fledgling colony’s diversified
economy and its own currency.
Helping is at the heart of what we do and is central
to our vision to become one of the world’s great
service companies. Whether it’s helping customers
buy and pay off their homes, manage their finances
or kick start a business – or by supporting them in
times of change or difficulty – we are there to help
in the moments that matter.
By getting service right, customers benefit, the
community benefits and shareholders benefit.
Watch the ad at
www.westpac.com.au
Westpac Banking Corporation
ABN 33 007 457 141
Cover image and this page:
Westpac’s 2019 ‘Baker of Beirut’
campaign.
Help when
it matters.

Westpac’s 2019
Reporting Suite.
Westpac’s annual reporting suite brings together the Group’s financial,
non-financial, risk and sustainability performance for the year, as well
as other shareholder information. It includes the key disclosures listed
below under the heading of the primary area of focus (noting there is
some overlap). This Annual Review and Sustainability Report brings
together key elements of the entire suite.
NAVIGATION ICONS
Additional reporting information
Visit our Investor Centre at
www.westpac.com.au/investorcentre.
Annual General Meeting
Westpac’s Annual General Meeting
(AGM) will be held at 10am (Sydney
time) on Thursday, 12 December 2019 at:
International Convention Centre Sydney
Darling Harbour Theatre,
Level 2, 14 Darling Drive
Sydney NSW 2000
The AGM will be webcast live and
available via on Westpac’s website at
www.westpac.com.au/investorcentre.
ANNUAL REVIEW AND SUSTAINABILITY REPORT
Case study
Read more or refer to another
report for information.
Watch this video
All figures in this Review are on a cash earnings basis and are for the 12 months ended 30 September 2019 unless otherwise indicated. All comparisons are against results for the
12 months ended 30 September 2018 unless otherwise indicated. All dollar amounts are in Australian dollars unless otherwise indicated.
For an explanation of cash earnings and reconciliation to reported results, refer to the Group’s 2019 Full Year Financial Results announcement.
www.westpac.com.au/
2019annualreport
• ANNUAL REPORT
• 2019 FULL YEAR
FINANCIAL RESULTS
• FY19 INVESTOR DISCUSSION PACK
• PILLAR 3 REPORT
• CORPORATE GOVERNANCE
STATEMENT
• REMUNERATION REPORT
(PART OF ANNUAL REPORT)
• SUSTAINABILITY PERFORMANCE
REPORT
FinancialsGovernanceSustainability
2WESTPAC GROUP

Contents.
06.
About
Westpac
ABOUT WESTPAC
08.
Our
Strategy
04.
2019 Year
in review
SUSTAINABILITY
26.
Building a
sustainable
future
YEAR IN REVIEW HIGHLIGHTS
REPORT & LETTER
16.
CEO Shareholder
Letter
10.
Chairman’s
Report
GOVERNANCE
36. Board of Directors
38. Executive Team
40. Remuneration
42. Five-year summary
44. Financial calendar
14.2m
CUSTOMERS
1%
$907bn
TOTAL ASSETS
3%
174c
DIVIDENDS PER SHARE
198.2c
CASH EARNINGS PER SHARE
16%
Case study, page 23
Case study, page 21
2019 ANNUAL REVIEW & SUSTAINABILITY REPORTCONTENTS 3

2019 has been a significant year for Westpac.
It has been a period of industry change: of a
Royal Commission; of heightened regulatory
scrutiny; of increased competition; of
ongoing digital adoption; and of a shifting
economic environment. We’ve faced into
these developments by stepping up on our
programs of work to address the issues,
investing more in risk and compliance, and
refunding customers where we’ve got it wrong.
These programs of work are a significant and necessary investment
that will strengthen our business for the long term and deliver
improved outcomes for customers, for our employees, for
shareholders and for the community.
Against this backdrop, Westpac reported cash earnings of
$6,849 million for the year, down 15% on 2018. Costs of our
investment in compliance and regulatory change along with
provisions associated with customer remediation payments and costs
accounted for the majority of the decline, although the effects of
competition and a slowing economy also contributed. In particular,
we have experienced reduced interest margins, slower growth and
a reduction in wealth management and insurance income.
However, our balance sheet remains strong across capital, liquidity,
funding and asset quality. Our common equity tier 1 capital ratio
remains above APRA’s unquestionably strong benchmark, key
liquidity ratios are ahead of regulatory minimums and we have
maintained a sound funding mix.
2019 performance is discussed in more depth in the
Chairman’s Report and CEO Letter.
2019 Yea r
i n rev iew.
Supporting customers and businesses 
in Australia and New Zealand.
TOTAL BUSINESS LENDING
$152bn
AUSTRALIA
$449bn
TOTAL HOME LENDING
AUSTRALIA
$32bn
NEW ZEALAND ($NZ)
$52bn
NEW ZEALAND ($NZ)
5.8m
DIGITALLY ACTIVE CUSTOMERS
CUSTOMERS
14.2m1%
CUSTOMER DEPOSITS
$525bn
1%
HELPING
Customers
See Chairman’s Report and CEO Letter
for more on 2019 performance.
4 2019 YEAR IN REVIEWWESTPAC GROUP
ABOUT WESTPAC

_38A5888
1. Full time equivalent. 36,311 headcount.
2. Proportion of women (permanent and maximum
term) in leadership roles across the Group, including
the CEO, Group Executives, General Managers,
senior leaders with significant influence on business
outcomes (direct reports to General Managers and
their direct reports), large (3+) team people leaders
three levels below General Manager, and Bank and
Assistant Bank Managers.
3. Employee Commitment Index measured monthly,
six month rolling average.
4. Excludes commercial sponsorships.
5. Climate bonds and other green
debt instruments.
$5.0bn
PAID TO EMPLOYEESCLIMATE CHANGE SOLUTIONS
33,288
EMPLOYEES

FTE
1
$130m
COMMUNITY INVESTMENT
4
$3.0bn
$391m
BANK LEVY
INCOME TAX PAYMENT
50%
71%
WOMEN IN LEADERSHIP ROLES
2
EMPLOYEE COMMITMENT
3
$3.6bn
TO FACILITATE CLIMATE SOLUTIONS
5
Building a future-ready workforce with
a culture focused on service and 
doing the right thing.
Helping to create a prosperous nation
for the benefit of all.
$9.3bn
COMMITTED
EXPOSURE
SUPPORTING
Shareholders
ENGAGING
Employees
CONTRIBUTING TO
Communities
See our broader economic
contribution on page 9 of
this report.
CASH RETURN ON EQUITY
CASH EARNINGS PER SHARE
$15.36
NET TANGIBLE ASSETS PER SHARE
48.6%
EXPENSE TO INCOME RATIO
174c
DIVIDENDS

PER SHARE
Returning value to Westpac’s 610,000+
shareholders, the majority being
Australian individuals and super funds.
198.2c16%
10.8%225 BPS
2019 ANNUAL REVIEW & SUSTAINABILITY REPORT 5
ABOUT WESTPAC

About Westpac.
Consumer
Serves the banking needs of consumer
customers in Australia. Consumer is also
responsible for the Group’s insurance
business, which covers the manufacture
and distribution of life, general and lenders
mortgage insurances.
Business
Serves the banking needs of small-to-medium
enterprises and commercial and agribusiness
customers across Australia. Business is also
responsible for specialist auto and equipment
finance, Private Wealth, the manufacture of
investments, superannuation and retirement
products as well as wealth administration platforms.
Westpac Institutional Bank
Delivers a broad range of financial services
to commercial, corporate, institutional and
government customers operating in and with
connections to Australia and New Zealand.
Westpac New Zealand
Delivers banking, wealth and insurance
services for consumer, business and
institutional customers across New Zealand.
48%
35%
14%
15%
Contribution
to Group
cash earnings.
See full descriptions of our
divisions in our 2019 Annual
Report and performance in our
2019 Full Year Results.
Note: % contribution adds up to 112%
because Group Businesses recorded
negative cash earnings (mostly head office
activities, and are not shown here).
Supporting customers
through four divisions.
Founded in 1817,
Westpac is Australia’s
first bank and oldest
company. Westpac is
one of four major banks
in Australia and one
of the largest banks in
New Zealand.
We provide a broad range of
consumer, business and institutional
banking and wealth management
services to over 14 million customers
through a portfolio of financial
services brands and businesses.
At 30 September 2019, our market
capitalisation was $103 billion with
over $907 billion of total assets.
6 ABOUT WESTPACWESTPAC GROUP
ABOUT WESTPAC

1. APRA Banking Statistics, September 2019
2. RBA Financial Aggregates, September 2019.
3. Strategic Insights July 2019, All Master Funds Admin.
4. RBNZ, September 2019.
MARKET SHARE
We focus on our core markets
to help meet the financial
needs of customers.
2019 ANNUAL REVIEW & SUSTAINABILITY REPORT 7
22%
AUSTRALIAN
HOUSEHOLD DEPOSIT
MARKET SHARE
1
23%
AUSTRALIAN
MORTGAGE
MARKET SHARE
2
17%
AUSTRALIAN
BUSINESS CREDIT
MARKET SHARE
2
18%
AUSTRALIAN
WEALTH PLATFORMS
MARKET SHARE
3
18%
NEW ZEALAND
CONSUMER LENDING
MARKET SHARE
4
18%
NEW ZEALAND
DEPOSIT MARKET
SHARE
4
Our portfolio of brands.
Pacific
ABOUT WESTPAC

_B4A0087
Our Strategy.
Customer Franchise
• Deliver great customer outcomes with a
best-in-class service experience
• Enable channels to work together seamlessly
• Maintain a strong and differentiated brand portfolio
• A highly engaged workforce with a renewed
focus on delivery
Performance disciplines
Digital transformation
• Strengthen our data infrastructure and capabilities
• Transform our platforms
• Strengthen digital partnerships to efficiently close
capability gaps
• Create superior digital experiences for customers
• Be the best-managed bank in the sector across
the dimensions of growth, productivity, return
and strength
• ‘Get it right, put it right’ initiative
• Enhance execution proficiency
• Drive structural cost reduction
Strategic PrioritiesVision
To be one of the world’s
great service companies,
helping our customers,
communities and people
to prosper and grow.
Supporting our customer-focused
strategy is a strong set
of company-wide values
Our company values
See the CEO letter for a more
detailed progress update.
8 OUR STRATEGYWESTPAC GROUP
ABOUT WESTPAC

2019 Progress
PROGRESS
• New customer based management
structure across States
• Significant investment in 1st and
2nd line risk and compliance systems
and capabilities
• Exited financial planning business
• $405m in productivity savings
PROGRESS
• # 1 Commercial, SME & Micro NPS
• # 3 Consumer NPS; closing gap to #1
• Strong service ethos and disciplines
• ‘Help when it matters’ brand campaign
supporting customer growth
PROGRESS
• Customer Service Hub rolled out for
Westpac first party mortgages
• Panorama build complete; fastest-growing
platform in market ($23bn in FUA)
• New Payments Platformcomplete; c. 40%
of all payments in the market
• No Severity 1 incidents in FY19
Integrity
We earn trust by
demonstrating the
highest standards of
honesty and ethical
behaviour
Service
We are here to
help and delight
our customers
One Team
We collaborate to
deliver the best
outcomes for our
customers and the
company overall
Courage
We challenge the status
quo and find a way to
make things better
Achievement
We strive for excellence
and deliver results
Westpac’s focus is on continuing to grow the value
of our franchise by increasing customer numbers
and building stronger and deeper customer
relationships. This focus is supported by our
unique portfolio of financial services brands that
gives us the flexibility to meet the needs of a
broader range of customers.
_38A6577
Sustainability Priorities
Helping people
make better
financial decisions
Helping people
by being there
when it matters
most to them
Helping people
create a
prosperous nation
See our Sustainability
Performance Report for
more information.
2019 ANNUAL REVIEW & SUSTAINABILITY REPORT 9
ABOUT WESTPAC

A challenging year
This year has been a challenging
period for the financial services sector,
and for Westpac. At an industry level,
the repercussions from the Royal
Commission into Misconduct in the
Banking, Superannuation and Financial
Services Industry (Royal Commission)
have continued, self-assessments into
governance, culture and accountability
have been completed, and there has
been an increase in regulatory actions
and remediation costs. The operating
environment has also become more
difficult with lower economic growth,
historically low interest rates, and even
more competition from international banks,
non-banks and niche players.
Despite the challenges presented by the
environment, our capital remains above
the Australian Prudential Regulation
Authority’s (APRA) unquestionably strong
benchmark, our funding and liquidity
is sound, and our customer franchise is
healthy with a market share of around
20% across most of the major segments
in which we operate. At the same time we
have been rated the most sustainable bank
in Australia (and rated 9th in world) by the
Dow Jones Sustainability Index.
Noting our overall position, we do however
face a number of challenges. Over the
last 12 months we have faced into these,
sought to work through the issues and
commenced a number of programs
to further strengthen our position –
particularly in enhancing our approach to
governance and risk management. We will
continue to do so.
Royal Commission
Last year in my letter to you I spoke about
the impact of the Royal Commission and
the lessons for Westpac. These were:
1. that we were slow to focus on
non-financial risks such as conduct,
compliance and reputation;
2. we did not fully appreciate the
underlying risks in the financial
planning business; and
3. that some remuneration
arrangements inadvertently
contributed to poor behaviour.
A challenging period for
the financial services
sector, and for Westpac.
Chairman’s Report
10 CHAIRMAN’S REPORT LINDSAY MAXSTEDWESTPAC GROUP
REPORT

$6.0bn
DIVIDENDS
$5.0bn
STAFF EXPENSES
$5.1bn
OTHER EXPENSES
MOSTLY SUPPLIERS
$3.0bn
30.4% INCOME TAX RATE
$0.7bn
RETAINED FOR GROWTH
$0.8bn
IMPAIRMENT CHARGES
Sharing returns
WHERE WESTPAC’S REVENUE GOES
$20.6bn
1
2019 REVENUE
has contributed to an “organisational
imperative for safety” and a tendency
to over-analyse issues. On the face of
it this could be a strength for a large
financial institution however, these
characteristics have also meant that
we have tended to be slow in decision-
making and weak on execution.
Enhancing Governance
In response to the findings of our CGA
self-assessment, we have commenced
a detailed program of work to fix the
issues. This work is also aligned with
our Royal Commission Response plan.
While there is still much to do we have
nevertheless made significant progress:
• Of the 45 recommendations in our
CGA self-assessment, 40% have now
been implemented.
• Of the 49 Royal Commission
recommendations that require action
by us, 11 have been implemented
and progress is underway with
a further 11. The remaining 27
recommendations require further
clarity or legislative change before
we can fully progress but we are
doing all we can now.
I want to highlight that the Board
sees these changes as a positive and
necessary investment in Westpac’s
long-term sustainability and we are
monitoring progress closely. However
I do not want to underestimate the
task ahead of us. It is complex and
it will take some time before we can
claim completion. That said, we are
determined to invest what is necessary
to complete our plans and build an
even more sustainable organisation.
Shareholders should also be aware
that the increase in scrutiny may
result in further regulatory action
and litigation against your company.
We will continue to investigate these
matters fully and impartially and where
we recognise we have done the wrong
thing we will take responsibility; and
if customers have been affected we
will put things right. There will at times
however be genuine disagreement
with regulators and in those cases we
will continue to engage constructively.

Having identified many of our
shortcomings last year, our focus this
year has been on fixing the issues
and beginning to restore the trust
that you and customers have placed
in us. Dealing with these lessons in
reverse order, we have already made
a number of changes in remuneration
across the organisation to reduce
potential conflicts and ensure the right
incentives are in place for employees.
We’ve also made changes to executive
remuneration – which I discuss
further below.
In relation to the second lesson, in
March this year, following a detailed
review, we announced our decision to
exit the financial planning business.
As part of this change we ceased
providing personal financial advice
by salaried financial advisers under
our own brands and discontinued
the practice of enabling independent
advice groups to operate under
our licence.
On non-financial risks, in addition
to some of the findings of the
Royal Commission we completed a
detailed analysis through our Culture
Governance and Accountability (CGA)
self-assessment. This report was
produced for the Board and APRA and
provided a thorough assessment of
our strengths and weaknesses in risk
culture, governance and accountability.
The report was prepared by a
dedicated team supported by Oliver
Wyman (a global independent expert
in financial services) and is available
on our website.
The CGA self-assessment indicated
that “Westpac’s governance,
accountability and culture settings,
in their totality generally support
sound management of the Group’s
non-financial risks.” The report
also highlighted that “Westpac’s
management of non-financial risks...
remains generally less mature than its
management of financial risks and this
factor is likely near, or at the root cause
of many of Westpac’s non-financial risk
related issues.”
In other findings, the report indicated
that some of Westpac’s strengths
had side effects that impacted the
Group’s culture. For example, the
Group’s strong focus on financial risk
4%
29%
24%25%
15%
3%
1. Reported profit basis.
2019 ANNUAL REVIEW & SUSTAINABILITY REPORT 11
REPORT

IMPLEMENTATION
UNDERWAY
LEGISLATIVE/REGULATORY
ACTION REQUIRED
IMPLEMENTED
NO ACTION REQUIRED
BY WESTPAC
76
RECOMMENDATIONS
49
27
27
11
11
Change is underway across Westpac
as we respond to the findings of the
Royal Commission into Misconduct
in the Banking, Superannuation
and Financial Services Industry
(Royal Commission).
The Royal Commission highlighted
a number of shortcomings across
the financial system, including in the
management of non-financial risks,
employee incentive models and the
treatment of customers. Released in
February 2019, the Final Report made
76 recommendations to address the
shortcomings, 49 of which presently
apply to Westpac.
Westpac has taken important lessons
from the findings and we are taking
action, alongside other programs
and initiatives – including our Culture,
Accountability and Governance self-
assessment action plan – to strengthen
our management of non-financial
risk, improve culture and enhance our
handling of complaints.
With Group Executive accountability
and Board oversight, Westpac’s
Royal Commission response is well
underway and a dedicated team is
coordinating the implementation of
all the recommendations applicable
to Westpac.
Response plan progress
Of the 49 Royal Commission
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
See Westpac’s website at www.westpac.com.au for more on the progress of
our Royal Commission response plan and details of the recommendations.
Westpac’s Royal
Commission
response.
CASE STUDY
Royal Commission
PROGRESS
12 CHAIRMAN’S REPORT LINDSAY MAXSTEDWESTPAC GROUP
REPORT

Financial Performance
This year our financial performance was
disappointing. While we have continued
to grow the balance sheet, and customer
numbers, the significant costs associated
with remediating customers, improving
governance and responding to regulatory
change have contributed to a reduction
in earnings. Brian will deal with financial
performance in more detail in his letter but
let me cover the key points.
Reported net profit in Full Year 2019 was
$6,784 million down from $8,095 million in
2018. Cash earnings (our preferred measure
of performance) for the year ended 30
September 2019 was $6,849 million,
15% lower than the 2018 financial year.
To put performance in perspective, of the
$1,216 million decline in cash earnings,
$849 million was due to higher costs
associated with customer remediation
and costs associated with exiting financial
planning, what we have called ‘notable
items’. The remaining decline was mainly
due to lower interest margins, a decline
in wealth management and insurance
revenue and increased regulatory and
compliance costs.
On the balance sheet, liquidity, funding
and credit quality remain strong. Our
key liquidity ratios continue to remain
comfortably above regulatory minimums
and we have maintained a sound
funding mix.
Credit quality has continued to be a
highlight with all elements of the portfolio
in good shape. The ratio of stressed assets
to total committed exposures has remained
near cyclical lows at 1.20%, while impaired
assets represent just 0.25% of total lending.
There has been some increase in consumer
delinquencies over the last couple of
years consistent with the softening in the
economy but this is not unexpected.
Capital
Reflecting our priority for strength,
Westpac has materially strengthened its
capital position over many years with our
ordinary equity almost doubling since
2009 while our asset base has increased
by closer to 50% – a material reduction in
gearing. Our CET1 capital ratio started the
decade below 7% and at September 2019
was 10.67%.
Despite this position, the lower earnings
and a variety of changes in the calculation
of the components of the CET1 capital ratio
(CET1 capital and risk weighted assets)
has meant that, absent any action on our
behalf, we would not have had a sufficient
buffer above APRA’s unquestionably
strong benchmark of 10.5%. As a result,
the Board has taken the decision to raise
capital through an institutional placement
and a share purchase plan to raise
around $2.5 billion.
The raising is expected to lift the Group’s
capital ratios by around 58 basis points
giving us extra capacity to support
customers, including if the economy
weakens, while increasing the buffer for
any additional factors that may impact
capital in the period ahead, including
regulatory actions, litigation or changes in
APRA or RBNZ capital requirements.
Dividends
The Board also took the difficult decision
this half to reduce the final 2019 dividend
to 80 cents per share, fully franked. This
is a 15% reduction on both the final 2018
dividend and the interim 2019 dividend
of 94 cents per share. This dividend
represents a final dividend pay-out ratio
of 79% and a dividend yield of 5.4%
(before franking).
This brings the full year dividend to
174 cents per share, down from 188 cents
per share in 2018.
There were a number of factors that led to
the decision to reduce the dividend and we
recognise the impact on shareholders, but
as a Board we must continue to prioritise
strength and make decisions that we
believe are in the best long-term interests
of the company.
In setting the dividend, the Group seeks to
maintain a payout ratio that is sustainable,
which we currently assess as being around
70–75%. While the final dividend payout
ratio is above this level, if we exclude the
notable items referred to earlier, the payout
ratio, on a cash earnings basis is 71%.
It is also worth highlighting that the Bank
Levy has continued to weigh on earnings
and on returns to shareholders. This year,
the Bank Levy was equivalent to around
8 cents per share (4 cents per share each
half). The Bank Levy is based on the
size of certain liabilities, not on earnings.
Accordingly, while earnings were lower this
year, the Bank Levy was higher.
The final ordinary dividend will be paid on
20 December 2019 with the record date of
13 November 2019.
Remuneration
At our 2018 AGM, we received a significant
vote against the adoption of our 2018
Remuneration Report and, as a result,
incurred a ‘first strike’. In accordance
with Australia’s Corporations Act, if we
receive a ‘second strike’ against our 2019
Remuneration Report, a separate resolution
must be put to shareholders at the
2019 AGM asking if they wish to hold an
extraordinary general meeting, known as
a ‘spill meeting’.
I and the Board recognise that our
decisions on executive remuneration in
2018 were not in line with shareholder
expectations. In response, we have
consulted extensively over the year to
better understand shareholder views
and act on their feedback. We met with
groups of individuals with the help of
the Australian Shareholders’ Association
and we held a number of meetings with
institutional shareholders and advisory
groups. I have also received significant
correspondence from shareholders.
I greatly appreciate the time that
shareholders have taken to share their
thoughts directly with me and your Board.
Our financial performance was
disappointing... although our
balance sheet, liquidity and
credit quality remain strong.
2019 ANNUAL REVIEW & SUSTAINABILITY REPORT13
REPORT

1. Three out of the 45 (7%) recommendations are culture recommendations which will be ongoing and do not have a target closure date. As at 1 November, 2019.
2. At Westpac’s 2018 Annual General Meeting, shareholders voted against the Remuneration Report.
Read more about the CGA
self-assessment in the 2019
Full Year Results Investor
Discussion Pack.
Strengthening
culture, governance
and accountability.
CASE STUDY
Culture, Governance and
Accountability Self-assessment
Change is under way to strengthen
Westpac’s management of
non-financial risk, approach
to customer complaints and
our culture.
Following the request from the
Australian Prudential Regulation
Authority (APRA), Westpac completed a
Culture, Governance and Accountability
(CGA) self-assessment in November
2018. It examined Westpac’s risk
culture, governance and accountability
frameworks and practices, and their
impact on the management of
non-financial risks.
As well as highlighting a number
of strengths across the Group, the
CGA self-assessment identified
some shortcomings and proposed
recommendations across five key areas.
40% of the actions on Westpac’s action
plan, which is sponsored by the Chief
Risk Officer and overseen by the Board,
have been implemented and the entire
plan is on-track to be finalised by 20211
1
.
• 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
• Resetting the perception of complaints through Group-wide Navigate program,
customer complaints training and ‘Spot It, Log It, Own It’ campaigns
• Improved Group-wide complaints policy, framework and standards
• Increasing accountability for customer complaints through specific KPIs in Executive
and General Manager scorecards
• Using complaints data to identify root causes and use insights in product reviews
• 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
• Comprehensive review of our three lines of defence operating model
• Clarification of roles and responsibilities in each line of defence
• New business structure focussed on customer segments
• Implemented Banking Executive Accountability Regime in 2018, including statements
of responsibility for all key direct reports of Accountable Persons
• Various changes to executive remuneration following shareholder feedback
2
• New leadership development programs, including a program for Business Leaders and
their direct reports focusing on better execution, accountability and culture leadership
• Simplified ‘Our Service Promise’ in June 2019, to make service expectations clearer
• Centralised the way we investigate concerns and introduced a new online system with
a simplified user experience. We also updated our whistleblower program to reflect
legislative changes that took effect in July 2019.
Board and executive governance
Governance is being strengthened
by enhancing Board and executive
reporting, meeting effectiveness,
management of non-financial risks
and the Group’s governance structures.
Customer
Through our centralised Customer
and Corporate Relations division and
complaints strategy, we are changing
our complaints culture and making
things better for customers.
Risk and compliance
Strengthening Westpac’s three lines of
defence and risk operating models by
increasing clarity and accountability
and enhancing risk infrastructure.
Remuneration and accountability
Strengthening conduct by
clarifying accountability, enhancing
remuneration practices and rewarding
the right behaviours.
Culture
Building a stronger culture of service
with a particular focus on leadership,
skills and behaviours.
Changes include:
Read more about the CGA
self-assessment in the 2019
Full Year Results Investor
Discussion Pack.
14 CHAIRMAN’S REPORT LINDSAY MAXSTEDWESTPAC GROUP
REPORT

In my letter to shareholders accompanying
the interim dividend earlier this year,
I explained that the key concern of
shareholders was that your Board did not
apply sufficient discretion to short-term
variable reward (STVR) outcomes in 2018,
given Westpac’s flat financial performance
in 2018 and the significant risk and
reputation matters that arose.
Shareholders also provided feedback
on the overall quantum of executive
pay, the use of a fair value allocation
methodology to determine the award value
of long-term variable reward and the lack
of variability in short-term variable reward
to executives over time.
In response to this feedback, combined
with your Board’s assessment, we made
a number of changes to executive
remuneration outcomes this year.
The remuneration report discusses these
in more detail, however the key features
of remuneration in 2019 include:
• The CEO has not received any STVR
this year. At the same time, the CEO
has had no increase in his base pay,
and indeed he has not had an increase
in his base pay since he commenced
the role in 2015.
• Group Executives received between
0% and 83% of their STVR.
• The Board used its discretion to apply
downward remuneration adjustments to
two Group Executives and two former
Group Executives in response to material
risk and compliance matters that
impacted the Group. These adjustments
reduced 2019 STVR outcomes to zero
for the two former Group Executives.
Many of these adjustments related to
events from prior periods. In addition,
the Board exercised its discretion to
apply downward adjustments to a
portion of deferred STVR for two former
Group Executives.
• No LTVR vested for the CEO and Group
Executives in 2019 as performance
hurdles were not met. These awards
typically make up around one third of
each of the CEO’s or a Group Executive’s
total remuneration; and
• Director base fees were reduced by
20% for all current Non-executive
Directors for the 2019 financial year.
Changes have also been made to 2020
remuneration structures including
the removal of fair value allocation
methodology (and moving to face value)
to determine the number of performance
share rights issued under the LTVR to the
CEO and Group Executives. This change
contributes to a reduction in the total
target remuneration of the CEO and Group
Executives by 23% and 12.5%, respectively.
We will continue to assess our approach
to remuneration, taking into account
shareholder feedback and new
requirements which are being developed
by APRA.
Further details on Westpac’s 2019
performance, governance and
remuneration outcomes, is available in our
2019 Annual Report and our Annual Review
and Sustainability Report.
Board renewal
Over recent years, your Board has
undergone significant renewal and I am
confident the Board has the right mix of
skills, experience and diversity to guide our
business. This year we welcomed two new
members to the Board: Margie Seale and
Steve Harker.
Margie has already proven to be a
valuable addition to your Board with over
25 years of senior executive experience
in both Australia and internationally. With
a background in consumer goods and
global publishing, Margie also has direct
experience in how digital can disrupt
traditional businesses, which is of great
value to your Board.
Steve Harker has strengthened the Board’s
banking and financial services skills, with
a particular focus on investment and
institutional banking. Prior to joining the
Board, Steve was Vice Chairman of Morgan
Stanley Australia and was Managing
Director of Morgan Stanley Australia for
almost 20 years.
Remuneration outcomes
reflect accountability for
performance.

LINDSAY MAXSTED
Chairman
Westpac Group
The Board’s commitment
In closing, I would like to reiterate a point
from last year’s report; that your Board is
here to represent shareholders and we shall
unashamedly continue to do so, including
striving to provide you with the best
possible returns on your investment over
the long-term.
We recognise that we still have work to do
to rebuild the platform that will improve
Westpac’s sustainability and restore
the trust that you, the community and
customers have placed in us – our role will
be to ensure that the plans we have put in
place will be followed through.
Finally, while the Board has been
disappointed with the findings of the
Royal Commission and the CGA self-
assessment we recognise that Westpac
is a truly special company. Westpac
is Australia’s oldest company with a
deep history of not only supporting its
customers but supporting the nation and
the communities in which we operate.
A key part of Westpac’s progress is the
incredible people whose hard work and
dedication I see every day. It is these same
people that will see Westpac emerge from
this environment as an even stronger,
sustainable company.
2019 ANNUAL REVIEW & SUSTAINABILITY REPORT15
REPORT

1. Officially, “The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry”.
2. Westpac’s Culture, Governance and Accountability self-assessment (CGA) was produced for the Westpac Board and
APRA. A copy is available on our website.
Dear Shareholder,
The 2019 financial year was a watershed
year for the banking industry, and for
Westpac. In response to the issues
highlighted by the Royal Commission
1

and our Culture, Governance, and
Accountability (CGA) self-assessment
2
,
various regulatory actions across the
industry, and a rapidly evolving competitive
environment, we have made significant
changes to the way we serve customers,
to our business structure, and in the
technology we use to support our people
and our customers.
These changes include the implementation
of the new Banking Code of Practice; new
policies and approaches for supporting
vulnerable customers; the decision to
exit our financial planning business; the
implementation of a number of new
controls and compliance processes,
particularly in lending; and the roll-out
of a major new technology system – the
Customer Service Hub – that provides
the foundation for improving both service
quality and cost over the next several years.
We also booked significant provisions
for customer remediation payments and
costs associated with our former financial
planning network and various other
operational issues we identified as part of
our ‘get it right, put it right’ initiative.
Externally, we confronted the impact of
significantly lower interest rates and a
substantial fall in demand for lending. This
coincided with increased competition from
both traditional and new competitors,
many of whom are being enabled by
advances in digital and mobile technology.
Due to these and other factors, our
financial performance for the year was
disappointing. I am acutely aware of the
faith you place in us to look after your
investment and deliver acceptable returns
– including dividends. And I would like
CEO Shareholder
Letter
In a watershed year, we have made significant
changes to the way we serve customers,
our business structure and in the technology
we use to support our people and customers.
LETTER
16 CEO SHAREHOLDER LETTER BRIAN HARTZER
WESTPAC GROUP

to assure you that, despite the unusually
large number of challenges we faced this
year, your management team is committed
to investing in the changes needed to
build a more sustainable business and
deliver superior returns over time.
As part of this commitment, we made
further progress on our aspiration to be
one of the world’s great service companies.
This included improvements in service
quality, digital transformation, productivity,
and service culture. While much work
remains, we finish this year stronger than
we started, with a clear plan and a high
quality, motivated workforce who are
committed to improving execution and
getting things done.
As in previous years, my goal with this
letter is to explain what happened this
year, what we have achieved, and where
we have fallen short. I also want to address
the changing strategic environment that
we face and how we are adapting so
we emerge from this period as the best
positioned bank to deliver sustainable
returns into the future.
I’ve organised this letter to respond to
the following questions:
1. What drove financial performance
this year?
2. Why are we raising capital?
3. How are we progressing on our key
priorities?
4. How are we improving non-financial risks,
culture, and governance?
5. How is the market evolving, and what are
our priorities to respond?
6. What is the outlook for 2020?
1. What drove financial performance
this year?
We consider financial performance
across four dimensions: strength, return,
productivity, and growth. To be sustainable,
banks must strike the right balance across
all these dimensions – and we have had
reasonable success on each.
Balance sheet strength will always be our
number one priority. The lessons of the
1991 recession (the importance of strong
credit risk disciplines) and the 2008 Global
Financial Crisis (the importance of strong
funding, liquidity, and capital) are alive
and well.
Credit quality remained sound over the
year, although as expected we did see a
moderate deterioration in delinquencies on
housing loans, with 0.88% of loan balances
more than 90 days past due. This mostly
reflects some increase in stress and a
slowdown in housing turnover in certain
parts of the country, increasing the time it
takes for people to clear their loans when
they need to sell. Our institutional bank
impaired assets to total exposure remain
very low at just 0.08%, while in business
lending, impaired assets to total exposure
were up just 3 basis points to 0.62%, over
the last 6 months. In New Zealand, the
picture is similar with impaired assets to
total exposure just 0.08%, with the ratio
almost halving over the year. The quality
of our credit book meant that impairment
charges declined 2% to $794 million,
representing 11 basis points of gross loans.
We finished the year with a strong funding
and liquidity position, which provides
resilience in the event of market disruption.
We fully funded new lending with customer
deposits, and our Net Stable Funding ratio
(which measures the proportion of our
funding that comes from ‘sticky’ deposits
and other long-term funding sources) was
112% – well above the 100% regulatory
minimum. At the end of September, we
held $144 billion in cash and other liquid
assets, representing 127% of our short-term
liabilities (the Liquidity Coverage Ratio).
Our Common equity tier 1 capital ratio
finished the year at 10.7%, and above
APRA’s ‘unquestionably strong’ benchmark.
(I will discuss our capital position in more
detail later in this letter.)
Funding and Liquidity
• Overall funding mix was relatively
stable over the year.
• Customer deposits fully funded
lending in FY19 with the customer
deposits to net loans ratio rising
to 73.4% (up from 73.0% in 2018).
$65bn
SHAREHOLDER’S
EQUITY
$525bn
CUSTOMER
DEPOSITS
– TERM DEPOSITS
– SAVINGS
$249bn
WHOLESALE FUNDING
– SHORT TERM
– LONG TERM
– SECURITISATION
$839bn

FUNDING
$718bn
TOTAL GROSS
LOANS
1
$449bn
AUSTRALIAN
HOME LOANS
$152bn
AUSTRALIAN
BUSINESS LOANS
$21bn
AUSTRALIAN
PERSONAL LOANS
$78bn
2

NEW ZEALAND
LOANS
$17bn
OTHER OVERSEAS
LOANS
1. Total Gross Loans excludes provisions of $3bn.
2. $AUD.
LETTER
2019 ANNUAL REVIEW & SUSTAINABILITY REPORT 17

Turning to returns, our overall financial
result for FY19 was disappointing.
Reported profit was down 16% to
$6,784 million and cash earnings were
$6,849 million in FY19, down 15% or
$1,216 million.
Performance was significantly impacted
by notable items of $1,130 million (after
tax) in FY19 – $849 million higher than
the previous year and accounting for
most of the decline in cash earnings.
These notable items largely reflect
provisions we’ve set aside for customer
remediation and costs associated with
exiting our financial planning business.
Excluding notable items, cash earnings
were $367 million lower – down 4%
compared to FY18. This decline was
mostly due to a 7 basis-point decline
in margins to 2.16% as a consequence
of a lower Treasury contribution and an
extremely competitive environment.
Earnings were also impacted by lower
revenue in wealth management, and
insurance. In wealth, revenue was
down following the exit of our financial
planning business, the removal of
grandfathered commissions, the
migration of MySuper accounts and the
decision to reprice platform margins
– each of which hurts revenue in the
short term but supports customers
and helps us build a more sustainable
business. The lower Insurance income
was primarily due to higher claims,
particularly from the severe weather
events (Qld storms and NSW hailstorms)
experienced early in 2019.
Given the challenging environment,
productivity was a major focus this year.
We achieved our productivity goal by
delivering $405 million in savings. This
reflected the continued progress on our
digital agenda – as customers shift to
self-service and we automate manual
processes – as well as better supplier
management and the implementation
of a simpler management structure
across the Group.
Growth this year – particularly balance
sheet growth – was relatively slow,
reflecting lower credit demand in
the economy, our risk appetite, and
the decision to prioritise margin. In
housing, we also implemented a number
of changes to our loan assessment
approach, and unfortunately, did so in
a way that made the application process
harder than it needed to be. Given
industry competition, some customers
and brokers diverted their business
elsewhere – and our lending slowed.
In response, we’re working hard to
simplify our processes, with a number
of improvements already rolled out.
As a result, we expect home lending
to contract early in the year but to be
growing in line with the system by the
end of the 2020 financial year.
Small business growth has also been
affected by more onerous lending
requirements, given the links between
many small business customers’ personal
and business finances. Credit demand
was also weaker among larger customers
– including corporates – but this was
more a function of weaker business
sentiment and a softer economic outlook.
The reduction in cash earnings, and an
increase in the strength of our capital
base, meant that the return on equity
declined to 10.75% – down over 2
percentage points over the year. Given
the importance of capital as a driver
of return on equity, it is important to
understand why we are raising capital
at this point.
2. Why are we raising capital?
Our common equity tier 1 (CET1) capital
ratio of 10.7% remains well above the 8%
minimum regulatory requirement and is
ahead of APRA’s unquestionably strong
benchmark. We hold around $46 billion
in common equity, up $7 billion over the
last three years. That capital provides the
backing to absorb losses in the event of a
downturn and forms part of the funding
pool for our lending. In addition, banks
with high capital backing are generally
rewarded with higher credit ratings,
which make it cheaper to borrow in
capital markets, particularly offshore.
We achieved our productivity
goal of delivering $405m
in savings.
Performance Metrics
Cash earnings basis
RETURNS
CASH RETURN ON EQUITY (%)
0481216
2019
2018
2017
2016
2015
10.8
13.0
13.8
14.0
15.8
MARGINS
NET INTEREST MARGIN (%)
1
0.000.460.921.381.842.30
2019
2018
2017
2016
2015
2.12
2.22
2.19
2.13
2.08
EFFICIENCY
EXPENSE TO INCOME RATIO (%)
01020304050
2019
2018
2017
2016
2015
48.6
43.8
42.2
42.1
42.1
LIQUIDITY COVERAGE RATIO
(%)
0285684112140
2019
2018
2017
2016
2015
127
133
124
134
121
1. 2015 and 2016 numbers have not been restated
in line with current accounting standards.
18 CEO SHAREHOLDER LETTER BRIAN HARTZERWESTPAC GROUP
LETTER

The complexity comes in the way
regulators assess our capital position
– usually through the ratio of capital to
risk-weighted assets (the CET1 capital
ratio). From time-to-time regulators
recalibrate how they measure risk-
weighted assets, and what should be
included, or excluded, from the capital
base. This in turn can reduce the reported
capital ratio, despite the actual dollar
amount of capital going up. In addition,
earlier in the year APRA applied a $500
million capital overlay to Westpac (and
other Major banks) until such time as we
complete the actions from our CGA self-
assessment. This overlay translated into a
further reduction in our CET1 capital ratio
of 16 basis points.
At the end of September, our CET1
capital ratio would have been around
75 basis points higher had it not been
for such developments. Looking ahead,
we face continued uncertainty around
APRA’s capital requirements, the
potential for further regulatory actions
and costs, and the earnings headwinds
of low interest rates and higher
compliance costs. Furthermore, the
Reserve Bank of New Zealand is currently
proposing to significantly increase the
capital requirements for New Zealand
Banks (although the amount of the
increase is yet to be finalised).
Given our priority for balance sheet
strength, we concluded that the prudent
course of action was to seek to raise
$2.5 billion in capital, which increases
our CET1 capital ratio by around 58
basis points. This capital is expected
to increase our buffer above APRA’s
unquestionably strong benchmark of
10.5% and position us to respond to
potential future impacts on capital
(indicated above) and continue to lend
and support the economy in the event
of a downturn.
Our decision to reduce the dividend to
80 cents per share was not easy, as we
know that many shareholders rely on
our dividends for income. In addition,
we carry a substantial balance of franking
credits that we would like to distribute
to our shareholders. However, with
increased shares on issue and downward
pressure on returns, we felt it was
prudent to bring our payout to a range
that allows us to retain sufficient capital
to support future growth.
Westpac’s coordinated approach
across banking and insurance
helped customers affected by the
recent Townsville flood get back
on their feet.
When a one-in-five-hundred year flood
struck Townsville in February 2019,
Westpac trucked in its portable branch
– known as our ‘bank in a box’ – to
help customers manage their banking,
process their insurance claims, and get
them back on their feet.
The 40ft shipping container was
equipped with smart ATMs, an electronic
night safe for small businesses to make
deposits, meeting rooms and video
conferencing facilities; and was staffed
with employees ready to help.
Alan Francis, a Senior Insurance Claims
Consultant was part of the team on
the ground and helped customers
make insurance claims, including a
mother of two small children having
to urgently evacuate her home due to
rising flood waters.
“She was of course very distressed,”
said Alan.
“Ensuring the personal safety of
customers is our first priority. We
immediately organised a $5,000
emergency payment to help pay for
emergency accommodation, clothing
and personal necessities for the
customer and her children while the
family home was assessed and repaired.
“It was a massive relief for the customer
at an incredibly stressful time.”
Flood relief
Westpac provided over 435
disaster relief packages to flood-
affected customers to help make
it easier for them to manage their
finances, including providing
alternative arrangements such as
repayment holidays.
Over 1,751 General Insurance claims
were received, totalling $74 million.
1,394 claims have been finalised and
$55 million paid to customers.
Westpac committed $50 million to a
flood relief fund dedicated to helping
farmers rebuild their businesses. Loans
of up to $2 million were also made
available to eligible customers on an
interest-only basis for up to three years
and at a reduced interest rate.
Westpac also donated $250,000 to
flood-affected communities: $150,000
to the Salvation Army and $100,000
to the Foundation for Rural &
Regional Renewal to support disaster
recovery and programs to build local
community resilience.
Alan Francis, Senior Insurance Claims Consultant
on the ground after the Townsville flood.
Helping customers
through a one-in-five-
hundred year flood.
CASE STUDY
Helping when it matters
2019 ANNUAL REVIEW & SUSTAINABILITY REPORT19
LETTER

FY18
FY18
notable
items
FY18
ex-notable
items
Net interest
income
Non-interest
income
Expenses
Impairment
charges
Tax & NCI
FY19
ex-notable
items
FY19
notable
items
FY19
8,065
2815
1618
213
8,346
7,979
(619)
(1,130)
6,849
0
2000
4000
6000
8000
Down 15%
Down 4% ex-notable items
The faster we resolve these
issues, the sooner we can
refocus investment and
management attention on
delivering more for customers.
Financial performance
1

Movement in cash earnings ($million)
3. How are we progressing on our
strategic priorities?
In my letter last year, I identified three
priorities for the year ahead:
• Deal with outstanding issues;
• Maintain momentum in our customer
franchise; and
• Structural cost reduction.
Deal with outstanding issues
In recent years a number of issues
have emerged relating to past business
practices, operational errors, gaps in
compliance, or changes in regulation.
These were identified through the Royal
Commission, our CGA self-assessment,
ongoing product reviews, and various
regulatory actions. The faster we resolve
these issues, the sooner we can refocus
investment and management attention
on delivering more for customers, thereby
increasing the value of our franchise.
The most significant change over the
year was the exit of our financial planning
business and reducing our operating
divisions from five to four. The financial
planning business had been loss-making
for some time and so this change is
expected to be EPS positive in 2020.
Exiting the business came with an
immediate shut-down cost, but this will
be quickly offset by cost savings and
reduced risk. Our remaining Insurance,
Superannuation, Investments, Platforms
and Private Wealth businesses have
been integrated into our Consumer and
Business divisions.
Customer remediation was another area
of focus. Over the course of the year we
continued to work through a backlog of
historical issues in our financial planning
and banking businesses and we continue
to work with regulators to agree on a fair
and reasonable approach to remediation.
The most significant of these issues is
the so-called “fee for no service” issue in
financial planning.
Under the “Future of Financial Advice”
(FOFA) legislation introduced in
2012, financial planning businesses
were required to eliminate ‘conflicted
remuneration’ (commission) payments
Performance Metrics
Cash earnings basis
EARNINGS
CASH EARNINGS PER ORDINARY SHARE (CENTS)
2019
2018
2017
2016
2015
198.2
236.2
239.7
235.5
248.2
ASSET QUALITY STRESSED
ASSETS TO TOTAL COMMITTED EXPOSURES (%)
0.00.20.40.60.81.01.2
2019
2018
2017
2016
2015
1.20
1.08
1.05
1.20
0.99
CAPITAL
COMMON EQUITY TIER 1 CAPITAL RATIO (%)
0.0000001.8333333.6666675.5000007.3333339.16666711.000000
2019
2018
2017
2016
2015
10.7
10.6
10.6
9.5
9.5
DIVIDENDS
(CENTS PER SHARE)
050100150200
2019
2018
2017
2016
2015
174
188
188
188
187
1. In FY19 and FY18, the Group raised certain provisions known as ‘notable items’.
See our 2019 Investor Discussion Pack for further details.
20 CEO SHAREHOLDER LETTER BRIAN HARTZERWESTPAC GROUP
LETTER

to planners and move to a fee-for-service
model. As part of this, BT implemented
systems (including new contracts, new
technology, and an annual fee disclosure
statement) seeking to ensure customers
received the advice services they were
paying for. However, as with other financial
planning businesses, we identified some
incidences of advice not being provided
and cases where insufficient records were
retained to meet regulator expectations.
We have therefore been working through
a process to review our customer files
and repay customers where appropriate.
This issue is more complex in the case
of aligned dealer group planners, who
operated separately, but under our licence.
This was a standard industry practice,
where companies like BT provided
licensing and back-office services to
planning groups. In these cases, we face
significant logistical challenges in obtaining
and checking all the historical files of those
non-Westpac advisers, particularly if they
have left the industry.
Other remediation matters include
instances where we didn’t meet
certain reporting standards, or made
administrative or operational errors in
certain products. We have established a
dedicated remediation hub to streamline
the process of refunding customers.
Currently there are around 750 staff
dedicated to remediation activities, and
since 2017 we have paid out $350m in
compensation to customers.
Beyond remediation, our response to
the findings of the Royal Commission
and our CGA self-assessment are well
underway. We have implemented 11
recommendations as part of our Royal
Commission program with a further
11 currently being implemented. We
have commenced work on most of the
remaining 27 recommendations that
presently apply to us, but we will need
to wait until the government passes the
required legislation before we can fully
progress the bulk of these. With our CGA
action plan, we have implemented 40% of
the recommendations and we expect to
implement the remainder by March 2021.
Changes we have made so far include
centralising our complaints management,
enhancing consequence management and
remuneration governance, and introducing
new board and committee processes.

Presto is helping businesses like
Melbourne’s Lune Croissanterie
provide a better experience
to customers.
Croissants from Lune Croissanterie
have been hailed as one of the
world’s finest by a New York Times
food critic. The customer following
amassed over the last seven years
is testament to this claim.
Kate Reid, a former aerospace
engineer, founded Lune in 2012.
She channelled her precision and
technical skills into making the
perfect croissant and started selling
them from a hole-in-the-wall shop in
the bay-side suburb of Elwood.
After joining forces with her brother,
Cameron, in 2015 the siblings
expanded the baking business and
today have two stores – one in
Melbourne’s CBD, the other in Fitzroy
– and employ 65 staff.
“We’re passionate about our pastries
and are determined that the whole
experience for customers is fantastic
– from the moment they step into our
store, to the last bite,” says Cameron.
Lune serves over 2,500 croissants
a day which translates into a similar
number of transactions.
“Most of our customers pay by card,
so having a reliable merchant terminal
integrated with our systems is
important to us,” says Cameron.
Presto integrates the merchant
terminal with Lune’s point-of-sale
system, eliminating the need to
manually key in sale amounts and
complete end-of-day reconciliations.
This improves productivity, reduces
risk of error and streamlines
reconciliations.
“By making the transaction process
faster and easier for our staff and
seamless for customers, Presto is a
welcomed addition to our business.”
Presto,
Lune Croissanterie.
CASE STUDY
Better supporting customers
2019 ANNUAL REVIEW & SUSTAINABILITY REPORT21
LETTER

Maintaining momentum in our
customer franchise
The long-term success of our business
depends on the strength and depth of
our customer relationships. In 2019 we
continued to improve our service offering
and the technology needed to deliver
better service in the future.
In recent years we have built a strong
service ethos throughout the company.
Employees participate at least weekly
in service ‘huddles’, where we review
our service standards, share stories
and examples of good service, and
discuss where we can improve. This
reinforces our customer-first approach
and is further supported by embedding
customer satisfaction and related service
metrics in individual scorecards and
performance rewards.
A focus this year was on improving our
ability to identify and support vulnerable
customers. This included setting up a new
Customer Vulnerability Council, making
changes to various complaints policies,
and rolling out training to our people on
how to identify customers experiencing
vulnerability. We promoted this through
our Westpac “Help when it matters”
advertising, with campaigns around
relationship breakdown, loss of a loved one,
and the impact of natural disasters.
Our continued focus on service has led
to a 2% rise in customers to 11.2 million
in Australia. In business, we held our #1
NPS
3
ranking in each of our key segments
and increased our lead on #2, while in
consumer, we rank #3 on NPS and closed
the gap to #1.
In technology, we delivered several new
digital innovations to make things better
for customers. These included our AI
chat-bot ‘Red’, which can respond in
real time to customer enquiries, a fully
digital mortgage process for St.George
customers, a new Digital Institutional Bank
platform, an online pricing platform for
term deposits, and an extensive rollout
of the real time New Payments Platform
which has seen us process around 40% of
the flows on this platform. Around 40% of
our digital sales are now completed online
– a material uplift from just a few years ago.
We have also completed major upgrades
to our technology infrastructure that
have improved reliability and will
ultimately enable us to deliver even
more for customers.
These include:
• Launching our ‘Customer Service Hub’,
a modern platform for originating and
servicing mortgages and other consumer
banking products;
• Rolling out a new data platform that
supports the Government’s ‘Open
Banking’ regulations and will allow us to
better understand customer needs;
• Completing the rollout of Panorama, our
market-leading investment platform for
independent financial advisors and their
clients; and
• Renewing much of our underlying
network and data centre infrastructure.
This included moving over 600
applications to the new environment and
upgrading over 300 applications hosted
on legacy infrastructure.
These and other changes have materially
improved system stability with no major
system outages in FY19 – a big step up
when you consider just a few years ago
we experienced one or two major issues
a month. Further changes and upgrades
are planned that will further improve the
experience for customers and enable more
efficient processes for our bankers.
At the same time, competition has
intensified, especially in the mortgage
business. As I indicated earlier, stepping
out of line with the market quickly impacts
market share. This happened to us in the
latter part of the FY19, although we expect
this to normalise through the year ahead.

Increasing structural productivity
Using technology to drive down costs is
an important part of our strategy to remain
competitive and deliver good returns
over time. This is increasingly important
in a low-rate, slow-growth environment
where margins are under pressure and
regulatory and compliance costs are rising.
At the same time, emerging competitors
have no physical networks to support
and have a cost advantage in delivering
some products.
This year our $405 million in productivity
savings through a company-wide focus on
simplification, automation, and digitisation
was up one-third on the productivity
savings delivered last year. Part of this
reflects the benefits from prior investments
in digitisation and automation, while
a continued shift of customers from
physical to digital channels allowed us to
rationalise 61 branches and reduce ATM
numbers by 375.
Physical presence continues to be
important for many customers and we
are investing to upgrade our branch
network in high-volume locations. However,
changing customer traffic patterns into
regional centres and the increasing use of
contactless cards and mobile payments
mean that we need fewer, well located
branches to meet demand. To further
improve efficiency, we have entered into an
agreement to sell most of our ‘off-site’ ATM
network to a third-party. This agreement
materially retains the level of service
Westpac customers currently receive
from our ATM network but will allow us
to benefit from scale efficiencies that this
third party can achieve with their other
cash processing.
Other cost initiatives during the
year included renegotiating supplier
arrangements, further automating
back-office operations, and simplifying
our organisational structure. In total, these
changes resulted in a net 5% reduction
in full-time equivalent headcount across
the company, despite adding significant
extra resources to support the remediation
activities described above.
The long-term success of
our business depends on the
strength and depth of our
customer relationships.
3. For details of the metric and metric provider, refer to Westpac Group 2019 Full Year Results Presentation and Investor Discussion Pack available at www.westpac.com.au.
22 CEO SHAREHOLDER LETTER BRIAN HARTZERWESTPAC GROUP
LETTER

Increased compliance, regulatory, and
remediation costs along with revenue
headwinds mean that productivity
benefits are not yet visible in traditional
measures of bank productivity, such
as the cost-to-income ratio. However I
am confident that, as these programs
and the related costs roll off over the
next few years, the improved efficiency
and competitiveness of our underlying
business will become apparent.
4. How are we strengthening
non-financial risk, governance,
and accountability?
The findings of the Royal Commission
and our CGA self-assessment highlighted
a number of areas where we need to
improve non-financial risk management,
governance, and accountability. To address
these, several major programs of work
are under way, with specific actions being
tracked and reported at both the Group
Executive level and to the Board.
Specific areas of focus include:
• Improving the identification, escalation,
and resolution of non-financial risk issues
across the Group, with a particular focus
on financial crime-related issues;
• Enhancing our end-to-end lending
processes;
• Providing more detailed reporting on
operational and compliance incidents to
the Executive team and Board;
• Improving the efficiency and
effectiveness of committee meetings;
• Clarifying and strengthening resources
under the ‘Three Lines of Defence’
approach to risk management;
• Clarifying individual accountability for
all managers, in line with the new BEAR
4

regime; and
• Improving awareness and protection for
whistle-blowers.
In addition, we continue to enhance and
reinforce general risk awareness across
the Group.
5. How is the market evolving, and
what are our priorities to respond?
In 2015 we recognised that a once-in-
a-generation change in banking was
underway, as a consequence of changing
customer behaviour, new technology, new
competitors, and increased community
and regulatory expectations. Over the
past year, these trends have accelerated.
In particular, we see:
• An increasing shift to digital self-service
among customers;
• Increased competition, especially in
mortgages, from foreign and regional
banks who rely on mortgage brokers
for their sales;
• The rise of digital-only competitors;
• The growth of fintech businesses offering
new, data-driven services;
• Increased compliance costs and capital
requirements across traditional banking
businesses; and
• Continued reputational challenges for
banks as a result of issues identified
through the Royal Commission.
While these challenges are significant –
particularly in the short term – we believe
the longer-term outlook for a large bank
like Westpac remains positive given:
• The size and strength of our balance
sheet (especially our deposit base and
diverse funding sources);
• The quality and scale of our customer
franchise, including our portfolio of
brands and extensive data assets;
• The financial resources and skills required
to build the technical innovations and
partnerships required in a digital world;
• Our ability to meet ever-rising regulatory
expectations; and
• Our ability to attract and retain top
quality talent in a small market, given our
reputation as an employer of choice.
4. BEAR: The Bank Executive Accountability Regime, administered by APRA.
Westpac’s Scams Assist team
is helping to protect customers
against scams and in the process
helped recover $26.3 million for
customers this year.
Keeping customer data and their
accounts safe is a priority for
Westpac and we continue to invest
in strengthening our cyber security
systems to deter attacks and help
protect customers.
A recent case managed by Westpac
fraud officer, Cherish, brings to life the
way we fend off scammers.
A customer was on her landline phone
speaking with someone pretending
to be from her telco provider. The
scammer had asked to download
software to ‘fix some issues’ he
claimed were affecting her computer.
Through our internal scams alert
system, I noticed unusual activity
on the customer’s online account.
The customer rarely used internet
banking and when she did, it was only
to check her accounts and never to
make a payment.
I immediately contacted the customer
on her mobile phone, explaining that
she was potentially the victim of a
remote access scam. Confused at
first, she wasn’t sure who to believe,
but after I explained the situation
she immediately shut her computer
down and hung up her landline. This
saved the customer $5,000 that the
scammer had attempted to transfer.
She was incredibly grateful.
Protecting
customers
from scams.
CASE STUDY
Cyber security
2019 ANNUAL REVIEW & SUSTAINABILITY REPORT23
LETTER

We recognise that we are a service
business: We’ve set the goal for Westpac
to be “one of the world’s great service
companies, helping our customers,
communities and our people to prosper
and grow.”
To grow the long-term value of the
company, our strategy is to build scale
in customer relationships through the
provision of world-class service; supported
by a strong balance sheet, great people,
and a modern, highly efficient technology
platform, as well as a network of
partnerships among new, digitally-savvy
competitors and suppliers.
To bring this strategy to life, we are
continuing to deliver on a multi-year
investment program we call the “Service
Revolution”, designed to strengthen
our competitive offers and reshape the
capabilities and cost structure of the
company. This program is organised
around three themes:
• Performance disciplines: Prudently
managing our capital, funding, and
liquidity; seeking to maintain a superior
ROE to the peer average while remaining
targeted and disciplined on asset growth
and credit quality;
• Service leadership: Continuing to
grow the Group’s customer base while
increasing the quality and depth of those
relationships, as measured through the
number of customers who view us as
their main financial institution. We look
to achieve this by delivering world-class
service levels (both personal and digital),
as measured by NPS; recognising that
a great service business requires a
high quality, well-trained, diverse, and
engaged workforce; and
• Digital transformation: Using technology
to materially improve efficiency and
reduce the Group’s cost-to-income ratio
below 40% in the medium-term. This will
include migrating more sales and service
activity to digital, reshaping the Group’s
distribution network, modernising
underlying technology platforms, and
building an extensive network of digital
partnerships and data assets.
While we will continue to deliver this
program of work over several years, we
have set a number of specific priorities
over the next couple of years. These are:
1. Service leadership:
• Extend our #1 in NPS for business
• Close the gap to the #1 major bank
in consumer
2. Digital transformation:
• Complete roll-out of the Customer
Service Hub to all our mortgage
bankers and to external brokers
• Launch a new mobile banking app with
improved usability and functionality
• Launch Open Banking data capabilities
• Drive digital sales to 45% across
the Group
3. Performance discipline:
• Deliver $500 million in annual
productivity savings in FY20
(23% above FY19)
• Further reshape the network
• Improve controls and risk management
capabilities to ensure Westpac is
resilient for the future, including
further implementation of the Royal
Commission and CGA self-assessment
recommendations
We will report progress against each of
these goals in our regular market updates.
6. What is the outlook for 2020?
The economic outlook for Australia remains
challenging, in part reflecting a softer
global environment. Annualised growth
in the June quarter of 2019 was only 1.4%,
which is lower than population growth
of 1.6%. The dynamics of global trade,
weak real wages growth, a softer housing
market, low interest rates and subdued
economic activity have all dampened
consumer confidence.
That said, overall GDP growth remains
positive and the economy continues to
benefit from a strong resources sector, a
lower Australian dollar, large infrastructure
investments, and targeted income tax cuts.
A slowdown in residential construction over
the last year, combined with lower interest
rates, should see a continued recovery in
house prices building on the momentum
we have seen in the September quarter,
particularly in Sydney and Melbourne.
However GDP growth is likely to remain
below longer-term averages (which is
2.75%) at 2.3% for calendar 2019 and 2.4%
for calendar 2020.
With consumer and business confidence
relatively weak, credit growth has been
slow. Overall credit growth for the
Australian financial system slowed to 2.7%
in the year to September 2019, down from
4.5% a year ago. That included a decline in
housing credit growth from 5.4% to 3.1%;
business from 3.8% to 3.3% and personal
credit contracting by 4.4% after declining
by 1% a year earlier.
We expect credit growth to lift slightly in
2020 to 3% overall, with housing credit
growth increasing to 3.5%. Business credit
growth is also expected to grow by around
3%, while other personal credit is expected
to contract by around 2%.
Interest rates are expected to remain
very low. The RBA reduced the cash rate
from 1.5% to 0.75% over the year, and we
Westpac’s future is very bright
and 2019 will prove to be a
watershed for us.
24 CEO SHAREHOLDER LETTER BRIAN HARTZERWESTPAC GROUP
LETTER

BRIAN HARTZER
Chief Executive Officer
Westpac Group
expect a further rate cut to 0.5% in early
2020. With rates at this level, there are
limited options for the RBA to cut further
if the economy turns down; however the
Commonwealth Budget is set to return to
surplus in 2019/20 and the Commonwealth
government has the scope for additional
stimulus if required.
Economic conditions in New Zealand have
also softened, with sluggish consumer
spending and weak business confidence.
We expect a small improvement in 2020
supported by lower interest rates; some
fiscal stimulus; and the competitive (lower)
New Zealand dollar.
For banks, the environment remains
challenging. Interest rates at these low
levels put significant pressure on margins,
as many deposits are essentially at a ‘floor’
beyond which they can’t be repriced
down. In addition, earnings on invested
capital and liquidity are progressively
lower as the portfolio rolls-over to much
lower interest rates.
Regulatory actions – flowing from the
Royal Commission and other industry
reviews and investigations – will continue
to require significant investment and
management attention. Regulators have
substantially stepped up their resources
and enforcement activity, leading to a
dramatic increase in our own costs as we
respond to the various enquiries, make
improvements in our non-financial risk and
control environment, and deal with the
consequences – including fines and other
legal fees – related to any adverse findings.
In addition, regulators in Australia and
New Zealand have a number of reviews
underway, in many areas including home
loan pricing, remuneration, and capital/risk
weighted asset methodologies across the
sector. Further clarity on these reviews is
expected in the year ahead.
Conclusion
I want to conclude by thanking
shareholders, on behalf of the management
team and all of our employees, for your
continued support this year. We recognise
that reputational issues, regulatory and
legal issues, and financial performance
challenges have made this a difficult year
to be an investor in Westpac.
The year ahead will continue to be
challenging, from multiple perspectives
– economic, competitive, legal,
reputational, and regulatory. I hope that my
letter has provided some useful context as
to the nature of these challenges and the
clear-eyed way in which we are responding
to this environment. We recognise where
we have fallen short, and are absolutely
committed to executing better and
delivering on our strategy for the future.
Through everything that has happened this
year, I remain very proud of this company,
and its people. We are well positioned,
with many talented, dedicated bankers
who come to work every day genuinely
seeking to deliver world-class service and
innovation for customers.
I believe Westpac’s future is very bright
and 2019 will prove to be a watershed for
us in confronting the realities of a changed
banking environment and responding
decisively in ways that set us up to
outperform in the future.
Once again, thank you for your continued
support and faith in the Westpac Group.
Australia’s most
sustainable bank.
2019 Dow Jones Sustainability
Indices Review.
It is the 18th year in a row that Westpac has
been ranked amongst the global banking
leadership group by the DJSI, this year at
#9 globally.
#1
2019 ANNUAL REVIEW & SUSTAINABILITY REPORT25
LETTER

26 BUILDING A SUSTAINABLE FUTUREWESTPAC GROUP
SUSTAINABILITY
Building a
Sustainable
Future.
As one of the country’s largest
companies, we play an important
role in helping to create
positive social, economic and
environmental impact, for the
benefit of all.
Every year, through our
materiality assessment process,
we identify the opportunities and
challenges that matter most to
our stakeholders, now and into
the future.
The issues
that matter.
For detailed information refer
to the 2019 Sustainability
Performance Report.
It’s about
all of us.
2019 most material topics.
Conduct and
culture
Instances of poor conduct have eroded public
trust in the financial services sector, driving
an increased focus on corporate culture and
improved outcomes for customers
Customer
satisfaction
and experience
Customers’ needs are becoming more complex,
and at the same time their expectations around
how they want to engage with us are evolving
Governance
and risk
Clear governance practices, active management
of risk, commitment to compliance, and fair
remuneration in our operations, supplier and
partner relationships are critical to the longevity
and financial wellbeing of the Group
Information
security
and data privacy
Maintaining customer confidentiality and
the security of our systems is paramount to
maintaining trust and confidence
Financial and
economic
performance
Maintaining a healthy financial performance and
strong balance sheet is vital to the Group’s long-
term sustainability
Changing
regulatory
landscape
Supervision and regulation in jurisdictions that
the Group operates in continue to evolve, creating
uncertainty in the operating environment
Digital product
and service
transformation
Digitisation offers opportunities to improve
efficiency and deliver new and better customer
experiences when, how and where customers
choose to engage with us
Customer
vulnerability
and hardship
Our ability to support customers in times of
financial hardship and anticipating times when
they can become vulnerable allows us to help
when it matters most
Executive
remuneration
Appropriate remuneration structures align
executive remuneration and accountability with
stakeholder interests over the long term, and play
an important role in effective corporate governance
Climate change
risks and
opportunities
As a major financial institution, we have an
important role to play in managing the risks and
opportunities of climate change; supporting
collaborative efforts to limit global warming,
while also taking steps to help the economy
and communities become more resilient to
the expected effects

2019 ANNUAL REVIEW & SUSTAINABILITY REPORT27
SUSTAINABILITY
In November 2017, we
introduced our 2018–2020
Sustainability Strategy centred
around three priorities:
Underpinning this is our commitment to fostering
a culture of care and doing the right thing,
and continuing to lead on the sustainability
fundamentals – policies, action plans, frameworks
and metrics reporting, in particular building on the
climate change, human rights and Reconciliation
action plans developed in 2017.
Our Sustainability Strategy.
Helping people
make better
financial decisions
Helping people
by being there
when it matters
most to them
Helping people
create a prosperous
nation
Culture
Fundamentals
We are making progress in
meeting the measures in our
2020 Sustainability Strategy,
with performance highlights
outlined in the following pages.
Full details including performance
metrics and commentary on
the Issues that Matter can be
found in our 2019 Sustainability
Performance Report.
We plan to announce
our next Sustainability Strategy
in November 2020.
2019 Progress.

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Whether starting your financial
journey, actively investing or winding
down to retirement, Ruby shares
real-life stories, as well as practical
tools and resources.
Westpac Ruby Connection
28 BUILDING A SUSTAINABLE FUTUREWESTPAC GROUP
SUSTAINABILITY
Second year progress highlights
on our 2018–2020 Sustainability
Strategy include:
Our first Agribusiness Centre
In August, we opened a new dedicated
Agribusiness Centre in Naracoorte, on
South Australia’s Limestone Coast. The
first-of-its-kind centre provides a range
of services for our relationship managed
agribusiness customers in the region,
including access to specialists in interest
rate risk management, foreign exchange
and commodity risk management.
Simplifying the home
ownership experience
Through our Customer Service Hub
roll-out, we continue to improve the home
ownership experience. Our home loan
offer document is now approximately 60%
shorter, written in easy-to-understand
language, and we are making it easier
for customers to set up and manage
their accounts.
Putting customers in control
of their finances
Through our product lifecycle reviews and
other processes, we continue to simplify
our products and improve their design
to better meet the needs of customers.
Through digital tools such as Wealth
Review, BT superannuation members are
able to see their current wealth position
and access real-time industry insights.
Building financial confidence
During the year, we delivered financial
literacy training to over 148,000 people
via face-to-face workshops, online
webinars and other resources available on
Westpac’s Davidson Institute website. We
also support the Salvation Army’s You’re
the Boss program, which helps people
experiencing financial challenges to better
manage their money and debt.
ALIGNMENT TO THE UN SUSTAINABLE
DEVELOPMENT GOALS
We believe in creating
a fairer, more inclusive
and confident society
by helping people
understand money. We
help customers track and
grow their wealth so they
will feel more confident
with financial decisions
no matter their situation.
Helping people
make better
financial
decisions.

Separating from
a par tner.
One in three marriages in Australia
end in divorce. Not only is it a time
of heightened emotions – but it
is also a time to make important
financial decisions and take steps to
regain financial independence.
How we can help:
• repayment relief options such
as mortgage repayment pauses
and reductions
• Separation Calculator to take
stock of joint and individual assets
and liabilities
• making it easier to remove a name
from a joint home loan
• specialist teams to assist customers
in complex situations who need
extra care
CASE STUDY
Helping when it matters
Westpac separation hub
2019 ANNUAL REVIEW & SUSTAINABILITY REPORT29
SUSTAINABILITY
Help in the moments that matter
This year, a big focus has been building on
the support we offer customers at times of
change in their lives. We launched a series
of Life Moments tools and resources to
assist customers and their families going
through challenging circumstances such
as divorce, separation, serious illness or the
loss of a loved one.
Fraud protection
Keeping customer data and accounts safe
24x7 is a priority. We continue to invest in
strengthening our cybersecurity systems
to deter attacks and help protect our
customers. With scams a growing problem,
we have set up a dedicated Scams Assist
team to help protect customers, and
hosted scam protection and awareness
seminars in branches around the country.
Supporting those in need
of extra care
Improving the way we support customers
in vulnerable circumstances continues
to be a major focus. Initiatives include
publishing our Customer Vulnerability
2020 Action Plan to articulate the Group’s
principles for engaging with customers
experiencing vulnerability, and rolling out
training to over 20,000 employees on
understanding and providing extra care to
those in vulnerable circumstances.
A dedicated ‘1800’ Priority Assist
telephone line staffed by specialists
provides additional support for customers
in complex vulnerable situations such as
family violence and financial abuse. Since
its establishment in 2018, Priority Assist has
assisted over 900 customers. This builds
on our commitment as part of the new
Banking Code of Practice, which came into
effect on 1 July 2019.
Disaster relief & support for
communities affected by drought
We have extended the $100 million
drought relief fund launched last year
to support farmers and committed
$50 million to a flood relief fund
dedicated to helping farmers in North
Queensland. We donated $150,000 to the
Salvation Army and a further $100,000
to the Foundation for Rural & Regional
Renewal (FRRR) to support disaster
recovery and programs to build local
community resilience.
ALIGNMENT TO THE UN SUSTAINABLE
DEVELOPMENT GOALS
We understand that life
has its tough moments,
and vulnerability is
something that can
affect anyone at any
time. We want to be by
our customers’ side and
help more people as
they go through major
life events.
Helping people
by being there
when it matters
most to them.
Improving financial access
in remote Australia
We now have a dedicated customer
care team to support our Aboriginal and
Torres Strait Islander customers located
in remote locations. The Yuri Ingkarninthi
team – which means ‘deep listening’ in
the Kaurna language – has supported
over 3,000 Indigenous Australian
customers, with a focus on making the
customer identification process easier
and proactively contacting customers to
discuss their banking needs and make sure
they are not accruing unnecessary fees.
Providing better banking experiences is a
key pillar of our 2018–2020 Reconciliation
Action Plan.

Helping to change
lives, one job at
a time.
Green Collect is a waste collection
social enterprise based in
Melbourne that finds solutions
for hard to recycle items while
providing jobs for people who face
barriers to mainstream employment.
Westpac Foundation has supported
Green Collect for the past seven
years with funding and pro bono
support. In 2019, we engaged Green
Collect as a supplier to remove
and re-purpose waste from branch
refurbishments in Victoria.
Through the procurement
opportunity, Green Collect has so
far removed over 1,000 office items
and surplus furniture, resulting in
99.5% of these items being diverted
from landfill. The work to collect and
process these items generated 615
hours of employment for people
previously excluded from work due
to barriers such as English language
skills, homelessness and mental
health challenges.
CASE STUDY
30 BUILDING A SUSTAINABLE FUTUREWESTPAC GROUP
SUSTAINABILITY
Backing the people and ideas
shaping Australia
Five years since its inception, Westpac
Scholars Trust continues to invest in the
next generation of Australians to challenge,
explore and set new benchmarks in
innovation, research and social change.
Westpac Scholars Trust has now awarded
416 scholarships valued at $20.2 million
in partnership with 22 universities
across Australia.
Backing the growth of climate
change solutions
We maintained our position as the largest
financier to greenfield renewable energy
projects in Australia
1
and continued
to deliver innovations in sustainable
finance products such as green deposits,
sustainability-linked loans and green
bonds. Learn more in our Spotlight on
climate change on the next page.
Partnering to tackle the issues that
matter most
Earlier this year, we joined other financial
institutions to form the Australian
Sustainable Finance Initiative, as well as
becoming a proud founding bank and
signatory of the Principles for Responsible
Banking, an initiative of the United Nations
Environment Programme Finance Initiative
(UNEP FI). We were also the only Australian
bank to contribute to the Liechtenstein
Initiative for a Financial Sector Commission
on Modern Slavery and Human Trafficking –
a public-private partnership to end modern
slavery and human trafficking.
Investing in a future-ready workforce
To help our people prepare for the future
of work, we have built a range of learning
curricula in areas such as digital, agility
and collaboration. A new program aimed
at fast tracking the development of young
high-potential employees saw 71% move
into new or expanded roles following
the program.
Our world is changing at
an unprecedented rate,
affecting how we all live
and work. We want to
help more people gain
the skills that will be
needed in the future,
and accelerate how we
identify and solve the
biggest issues impacting
Australia and the world.
Helping people
create a
prosperous
nation.
Westpac Foundation
– 140 years of helping
Westpac Foundation provides
funding and programs to support
social enterprises and community
organisations creating jobs and
opportunities for those who need
it most.
ALIGNMENT TO THE UN SUSTAINABLE
DEVELOPMENT GOALS
1. IJGlobal, September 2019.
For more information on
our sustainability approach,
performance and metrics, please visit
www.westpac.com.au/sustainability

2019 ANNUAL REVIEW & SUSTAINABILITY REPORTSPOTLIGHT ON CLIMATE CHANGE 31
SUSTAINABILITY
Spotlight on
climate change.
We have a long history of action on climate
change. We were the first Australian bank to
release a climate change position statement in
2008 and to commit to the goals of the Paris
Agreement in 2015.
At the heart of our approach is a recognition
that climate change is one of the most
significant issues that will impact the long-term
prosperity of our economy and way of life.
Taking action on climate change.
1991
Founding member of the
United Nations Environment
Programme (UNEP)
2012
Commitment
to carbon
neutrality across
our business
2013 –
2017
Second Climate
Change Position
Statement
2008 –
2013
First Climate
Change
Position
Statement
2015
Commitment to
UN Sustainable
Development
Goals and
Paris Climate
Agreement
Commenced portfolio
carbon reporting for
BT MySuper portfolios
2016
Climate Scenario
Analysis
2-degree
2003
founding signatories
to Equator Principles
One of nine
2017
Signatory to
Climate
Action
100 +
2019
Climate Scenario
Analysis
1.5-degree
2020
Scheduled
release of
Fourth Climate
Change Position
Statement &
Action Plan
2018
TCFD
disclosures
published
2018 –
2020
2018
Climate Scenario
Analysis
4-degree
Third Climate
Change Position
Statement &
Action Plan
For detailed information refer
to the climate change section
in the 2019 Sustainability
Performance Report as well
as the 2019 Annual Report.

Westpac Industry Associations
for further information.
32 SPOTLIGHT ON CLIMATE CHANGEWESTPAC GROUP
SUSTAINABILITY
1. Providing finance to
back climate change
solutions
We have short and medium term targets for lending to climate change solutions.
At 30 September 2019, $9.3 billion

committed to climate change solutions, progressing towards
our target of $10 billion by 2020
1
and on track for
$25 billion by 2030.
Renewables represent over
75% of lending to the electricity
generation sector, up from 59%
three years ago.
Exceeded our $3 billion target to
facilitate climate change solutions.
Became the first New Zealand bank to
raise funding through the issuance of
a green bond with a €500 million deal.
Launched the world’s first Green
Tailored Deposit to be certified
by internationally recognised
Climate Bonds Initiative (CBI).
The leading financier
to greenfield
renewable energy
projects in Australia,
two years in a row
2
.
Support for customers’
transition strategies
through innovative
products such as
sustainability-linked loans.
Reduced the emissions intensity
of our lending to the electricity
generation sector over the last three
years, from 0.38 tCO
2
e/MWh in 2016
to
0.26 tCO
2
e/MWh in 2019,
ahead of
our 2020 target of 0.30 tCO
2
e/MWh,
and well below the National Electricity
Market average of 0.75 tCO
2
e/MWh.
Maintained our commitment to stringent
lending standards in the thermal coal sector
– any lending to new thermal coal mines or
projects must be in existing basins and where
coal quality ranks in the top 15% globally.
Our overall exposure to the mining sector
remains around 1% of total lending.
Reviewed our Financing
Agribusiness Position Statement
to update our commitments,
particularly for soft commodities
such as soy, palm oil and timber.
2. Supporting businesses
that manage their
climate-related risks
1. Progress and targets for lending to climate solutions are reported on an as ‘as-at’, non-cumulative basis.
2. IJGlobal, September 2019.
Progress on our
climate change strategy.
Our Climate Action Plan focuses
on five key areas where we believe
climate change has greatest
significance to our customers,
business and stakeholders.

4. Improve and disclose
our climate change
performance
5. Advocate for policies
that stimulate
investment in climate
change solutions
3. Help individual
customers respond
to climate change
Over
500+
disaster relief
packages
issued to assist customers
affected by floods, bushfires and
other disasters.
This commitment will play a key part in
enabling us to meet our current target
to reduce scope 1 & 2 emissions by
34% by 2030.
in the Australian Banking Association’s Corporate
Sustainability Working Group, Investor Group on Climate
Change (IGCC) and Expert Advisory Group for the
development of Science Based Targets for Financial
Institutions, to contribute to the ongoing dialogue around
climate change disclosures in the finance sector.
Committed to sourcing
the equivalent of 100%
of our global electricity
consumption from
renewable sources by
2025 and joined RE100.
Participate
Through our BT products we continued to provide customers the
information they need to understand how they can make climate
change conscious investments – for further information visit the
BT website.
Continued our work with the
Australian Business Roundtable
for Disaster Resilience and
Safer Communities
to define approaches to assist
government, business and
communities mitigate and respond
to natural disasters.
and deepened our
engagement in New
Zealand in the Climate
Leaders Coalition
and the New Zealand
Sustainable Finance
Forum.
Undertook a review of our membership of industry
associations, in line with our Industry Association Principles,
with a focus on climate change and energy policy, lobbying
and advocacy. The review focused on:
• identifying both alignment and differences between the
position Westpac holds on climate and energy policy
(as set out in our Climate Action Plan) and the advocacy
positions on climate and energy policy taken by key
industry associations to which we belong
• assessing the principles by which Westpac engages with
industry associations.
Actively engaged
in the Australian
Sustainable Finance
Initiative and
Australian Business
Roundtable for
Disaster Resilience
& Safer Communities
Maintained reporting in line with
the TCFD and support industry-
based efforts to establish clear,
comparable and consistent
climate disclosures.
Engaged institutional investors to
understand their evolving information
requirements and expanded the scope
of climate change information across
our reporting suite.
The review affirmed Westpac’s principles for
engagement with industry associations and identified
areas of both alignment and variance between
Westpac’s Climate Action Plan and associations of
which we are a member.
2019 ANNUAL REVIEW & SUSTAINABILITY REPORT 33
SUSTAINABILITY
At 30 September 2019, $9.3 billion

committed to climate change solutions, progressing towards
our target of $10 billion by 2020
1
and on track for
$25 billion by 2030.

A highlight during the
year was committing to
source 100% of our global
electricity consumption
from renewable sources
by 2025.
As one of the first Australian companies
to make this commitment, we became
a member of RE100, a global leadership
initiative led by The Climate Group
in partnership with CDP
1
, bringing
together the world’s most influential
businesses who have committed to go
100% renewable.
The first phase of our transition will be
achieved through a power purchase
agreement with Bomen Solar Farm,
under construction in Wagga Wagga,
New South Wales, and expected to be
operational by mid-2020.
Ceri Binding, Head of Energy and Utilities in
Westpac Group’s property team,
onsite at Bomen Solar Farm.
100% renewables
by 2025.
CASE STUDY
Bomen Solar Farm
34 BUILDING A SUSTAINABLE FUTUREWESTPAC GROUP
SUSTAINABILITY
1. A not-for-profit that runs a global disclosure system for investors, companies, cities, states and regions to
manage their environmental impacts, formerly known as the Carbon Disclosure Project.

Managing and
protecting the privacy
rights of individuals
Customer
vulnerability
Exclusion and
discrimination in
employment
Unfair wages and
conditions for workers
in our value chain
We prioritise those issues with the biggest adverse impact on people – our salient human rights issues
1
:
Our salient human rights issues.
Complying with applicable
privacy laws and using or
disclosing information in
ways that individuals would
reasonably expect.
Customers in circumstances
that make them more
susceptible to disadvantage.
Exclusion and
discrimination affecting
an individual’s full
participation in
employment.
Unfair wages and working
conditions impacting
worker prosperity, security
and standards of living.
We continue to enhance
and uplift our processes in
relation to privacy, including
to reflect recent regulatory
developments such as the
Notifiable Data Breach
Scheme in Australia and the
European Union General
Data Protection Regulation.
Established a dedicated
1800 Priority Assist
telephone line to provide
additional support for
customers in vulnerable
circumstances.
Formally introduced a new
Gender Transition leave
policy within our new
enterprise agreement.
Westpac New Zealand
Limited is the first bank
to be accredited as a
Living Wage
2
employer in
New Zealand, voluntarily
adopting the Living Wage.
WHAT WE MEAN
WHAT WE ARE DOING
1. UN language for Human Rights ‘at risk of most severe impact through a company’s activities and business relationships’.
2. The Living Wage is the hourly rate a worker and his or her family is deemed to need to pay for the necessities of life and actively participate in the community. It is set independently
by the New Zealand Family Care Social Policy Unit. At the time of Westpac’s accreditation (December 2018) the rate was $20.55 per hour and the minimum wage set by the
New Zealand Government was $16.50 per hour. See www.livingwage.org.nz for more information about the Living Wage.
Taking action on human rights.
20022 017
2015
2019
2020
2018
2016
Founding signatory
to the UN Global
Compact
2nd Human Rights
Position Statement
and Action Plan
1st Human Rights
Position Statement
and Action Plan
Commenced preparations
for the Australian Modern
Slavery Act (2018)
Scheduled release of 3rd
Human Rights Position
Statement and Action Plan
Determined our salient
human rights issues
Commenced
reporting against
UK Modern
Slavery Act (2015)
Established a
Group-wide
Human Rights
Working Group
With the introduction of the Modern
Slavery Act in Australia, we have begun
work to embed its requirements into our
procurement practices.
We will be publishing our first Australian
Slavery and Human Trafficking Statement
in 2021, reporting on our activities for the
FY20 period.
Spotlight on
human rights.
We believe that respecting and advancing
human rights helps us to achieve our vision
to help our customers, communities and
people to prosper and grow.
2019 ANNUAL REVIEW & SUSTAINABILITY REPORTSPOTLIGHT ON HUMAN RIGHTS 35
SUSTAINABILITY
Preparing for reporting
in line with the
Australian Modern
Slavery Act (2018).
For detailed information refer
to the human rights section
in the 2019 Sustainability
Performance Report.

Board of Directors.
1 LINDSAY MAXSTED
DipBus (Gordon), FCA, FAICD
Director since March 2008 and Chairman since
December 2011. Chairman of the Board Nominations
Committee. Member of each of the Board Audit and
Board Risk & Compliance Committees.
Lindsay was formerly a partner at KPMG
and was the CEO of that firm from 2001 to
2007. His principal area of practice prior to his
becoming CEO was in the corporate recovery
field managing a number of Australia’s largest
insolvency/workout/turnaround engagements
including Linter Textiles (companies associated
with Abraham Goldberg), Bell Publishing Group,
Bond Brewing, McEwans Hardware and Brashs.
He is also a former Director and Chairman of the
Victorian Public Transport Corporation.
Current directorships: Transurban Group
(Chairman), BHP Group Limited, BHP Group plc,
Baker Heart and Diabetes Institute and Align
Capital Pty Ltd (Managing Director).
2 BRIAN HARTZER
BA, CFA
Managing Director & Chief Executive Officer
since February 2015. Member of the Board
Technology Committee.
Brian was appointed Managing Director & Chief
Executive Officer in February 2015. Brian joined
Westpac as Chief Executive, Australian Financial
Services in June 2012, encompassing Westpac
Retail & Business Banking, St.George Banking
Group and BT Financial Group. Prior to joining
Westpac, Brian spent three years in the UK as
CEO for Retail, Wealth and Ulster Bank at the
Royal Bank of Scotland Group. Prior to that, he
spent ten years with Australia and New Zealand
Banking Group Limited (ANZ) in Australia in a
variety of roles, including his final role as CEO,
Australia and Global Segment Lead for Retail and
Wealth. Before joining ANZ, Brian spent ten years
as a financial services consultant in New York,
San Francisco and Melbourne.
Current directorships: The Australian National
University Business and Industry Advisory
Board (Chairman), the Financial Markets
Foundation for Children and Australian Banking
Association Incorporated.
3 NERIDA CAESAR
BCom, MBA, GAICD
Director since September 2017. Member of each
of the Board Risk & Compliance and Board
Technology Committees.
Scheduled for re-election in December 2019.
Nerida has over 30 years of broad-ranging
commercial and business management
experience. She was Group Managing Director
and Chief Executive Officer, Australia and New
Zealand, of Equifax (formerly Veda Group Limited)
from February 2011 to June 2017. Nerida is also a
former director of Genome.One Pty Ltd and Stone
and Chalk Limited.
Nerida was formerly Group Managing Director,
Telstra Enterprise and Government, responsible
for Telstra’s corporate, government and large
business customers in Australia as well as the
international sales division. Nerida also worked
as Group Managing Director, Telstra Wholesale,
and, prior to that, held the position of Executive
Director Enterprise & Government, where she was
responsible for managing products, services, and
customer relationships throughout Australia.
Nerida also held several senior management and
sales positions with IBM within Australia and
internationally over a 20-year period, including as
Vice President of IBM’s Intel Server Division for the
Asia-Pacific region.
Current directorships: Workplace Giving Australia
Limited (Chairman) and Spark Investment Holdco
Pty Ltd.
Other interests: Member of the Advisory Board of
IXUP Limited, and advisor to Equifax Australia and
New Zealand.
4 EWEN CROUCH AM
BEc (Hons.), LLB, FAICD
Director since February 2013. Chairman of the Board Risk
& Compliance Committee. Member of each of the Board
Audit, Board Nominations and Board Remuneration
Committees.
Scheduled for re-election in December 2019.
Ewen was a Partner at Allens from 1988 to 2013,
where he was one of Australia’s most accomplished
mergers and acquisitions lawyers. He served as a
member of the firm’s board for 11 years, including
four years as Chairman of Partners. His other
roles at Allens included Co-Head Mergers and
Acquisitions and Equity Capital Markets, Executive
Partner, Asian offices and Deputy Managing
Partner. Ewen served as a director of Mission
Australia from 1995 and as Chairman from 2009,
before retiring in November 2016. From 2010 to
2015, Ewen was a member of the Takeovers Panel.
In 2013, Ewen was awarded an Order of Australia in
recognition of his significant service to the law as a
contributor to legal professional organisations and
to the community.
Current directorships: Corporate Travel
Management Limited (Chairman), BlueScope Steel
Limited, Sydney Symphony Orchestra Holdings Pty
Limited and Jawun.
Other interests: Member of the Commonwealth
Remuneration Tribunal, Law Committee of
the Australian Institute of Company Directors,
Corporations Committee of the Law Council of
Australia and ASIC’s Director Advisory Panel.
5 ALISON DEANS
BA, MBA, GAICD
Director since April 2014. Chairman of the Board
Technology Committee. Member of each of the Board
Nominations, Board Remuneration and Board Risk &
Compliance Committees.
Alison has more than 20 years’ experience in
senior executive roles focused on building digital
businesses and digital transformation across
e-commerce, media and financial services. During
this time, Alison served as the CEO of eCorp
Limited, CEO of Hoyts Cinemas and CEO of eBay,
Australia and New Zealand. She was the CEO of a
technology-based investment company netus Pty
Ltd. Alison was an Independent Director of Social
Ventures Australia from September 2007 to April
2013 and a director of kikki.K Holdings Pty Ltd from
October 2014 to June 2018.
Current directorships: Cochlear Limited, Ramsay
Health Care Limited, The Observership Program
Limited, SCEGGS Darlinghurst Limited and Deputy
Group Pty Ltd.
Other interests: Senior Advisor, McKinsey
& Company and Investment Committee
member of the CSIRO Innovation Fund (Main
Sequence Ventures).
6 CRAIG DUNN
BCom, FCA
Director since June 2015. Chairman of the Board
Remuneration Committee. Member of each of the Board
Nominations and Board Risk & Compliance Committees.
Craig has more than 20 years’ experience in
financial services, including as CEO of AMP
Limited from 2008 to 2013. Craig was previously
a director of Financial Literacy Australia Limited,
a Board member of each of the Australian
Japanese Business Cooperation Committee, Jobs
for New South Wales, and the New South Wales
Government’s Financial Services Knowledge
36 BOARD OF DIRECTORSWESTPAC GROUP
1
3
5
7
9
11
6
8
2
4
10
GOVERNANCE

Skills matrix
1
Board Diversity
117
117
118
1110
1110
11
117
119
119
911
Strategic and commercial acumen
Financial services experience
Financial acumen
Risk
Technology
Governance
People, culture and conduct
Executive leadership
Listed company experience
International
Customer focus
Hub. He is the former Chairman of Stone and
Chalk Limited, and of the Investment and
Financial Services Association (now the Financial
Services Council). Craig was also a member of
the Financial Services Advisory Committee, the
Australian Financial Centre Forum, the Consumer
and Financial Literacy Taskforce and a Panel
member of the Australian Government’s Financial
System Inquiry.
Current directorships: Telstra Corporation Limited
and The Australian Ballet (Chairman).
Other interests: Chairman of the International
Standards Technical Committee on Blockchain and
Distributed Ledger Technologies (ISO/TC 307).
Consultant to King & Wood Mallesons.
7 ANITA FUNG
BSocSc, MAppFin
Director since October 2018. Member of the Board Risk
& Compliance Committee. Member of Westpac’s Asia
Advisory Board since October 2018.
Anita’s career in the banking industry spans over
30 years, including 19 years at HSBC.
During her time at HSBC, Anita held a number of
senior management roles including Group General
Manager, HSBC Group and most recently as Chief
Executive Officer, Hong Kong from 2011 to 2015.
Prior to joining HSBC, Anita held various positions
at Standard Chartered Bank in its Treasury and
Capital markets business.
Current directorships: Hong Kong Exchanges
and Clearing Limited, China Construction Bank
Corporation, Hang Lung Properties Limited
and Board member of the Airport Authority
Hong Kong.
Other interests: Member of the Hong Kong
Museum Advisory Committee.
8 STEVEN HARKER
BEc (Hons.), LLB
Director since March 2019. Member of each of the
Board Audit and Board Risk & Compliance Committees.
Scheduled for re-election in December 2019.
Steve has over 35 years of experience in
investment banking. Steve was formerly Managing
Director and Chief Executive Officer of Morgan
Stanley Australia from 1998 to 2016 and then Vice
Chairman until February 2019. Prior to joining
Morgan Stanley, he spent 15 years with Barclays
de Zoete Wedd (BZW, now Barclays Investment
Bank). Steve is a former Chairman and Director of
Australian Financial Markets Association Limited
and a former Director of Investa Property Group.
Steve also previously served on the board of the
Centre for International Finance and Regulation.
He is also a former Guardian of the Future Fund
of Australia.
Current directorships: The Banking and Finance
Oath Limited, The Hunger Project Australia, ASX
Refinitiv Charity Foundation, New South Wales
Golf Club Foundation Limited and Ascham
School Ltd.
Other interests: Honorary Treasurer of
Ascham School.
9 PETER MARRIOTT
BEc (Hons.), FCA
Director since June 2013. Chairman of the Board
Audit Committee. Member of each of the Board
Nominations, Board Risk & Compliance and Board
Technology Committees.
Scheduled for re-election in December 2019.
Peter has over 30 years’ experience in senior
management roles in the finance industry
encompassing international banking, finance and
auditing. Peter joined Australia and New Zealand
Banking Group Limited (ANZ) in 1993 and held
the role of Chief Financial Officer from July 1997
to May 2012.
Prior to his career at ANZ, Peter was a banking
and finance, audit and consulting partner at
KPMG Peat Marwick. Peter was formerly a
Director of ANZ National Bank Limited in New
Zealand and various ANZ subsidiaries.
Current directorships: ASX Limited,
ASX Clearing Corporation Limited,
ASX Settlement Corporation Limited and
Austraclear Limited.
Other interests: Chairman of the Monash
University Council’s Resources and
Finance Committee. Member of Monash
University Council.
10 PETER NASH
BCom, FCA, F Fin
Director since March 2018. Member of
each of the Board Audit and Board Risk &
Compliance Committees.
Peter was formerly a Senior Partner with KPMG
until September 2017, having been admitted
to the partnership of KPMG Australia in 1993.
He most recently served as the National
Chairman of KPMG Australia from 2011 until
August 2017, where he was responsible for the
overall governance and strategic positioning
of KPMG in Australia. In this role, Peter also
served as a member of KPMG’s Global and
Regional Boards. Peter has experience
providing advice on a range of topics including
business strategy, risk management, internal
controls, business processes and regulatory
change. He has also provided both financial
and commercial advice to many Government
businesses at both a Federal and State level.
Peter is a former member of the Business
Council of Australia and its Economic and
Regulatory Committee.
Current directorships: Johns Lyng Group
Limited (Chairman), ASX Limited, Mirvac
Group, Reconciliation Australia Limited and
Golf Victoria Limited.
Other interests: Board member of the Koorie
Heritage Trust and Migration Council Australia.
Member of the University of Melbourne
Centre for Contemporary Chinese Studies
Advisory Board.
11 MARGARET SEALE
BA FAICD
Director since March 2019. Member of each
of the Board Remuneration and Board
Risk & Compliance Committees.
Scheduled for re-election in December 2019.
Margie has more than 25 years’ experience
in senior executive roles in Australia and
overseas, including in consumer goods, global
publishing, sales and marketing, and the
successful transition of traditional business
models to digital environments. Prior to her
non-executive career, Margie was Managing
Director of Random House Australia and New
Zealand and President, Asia Development for
Random House Inc.
Margie is a former Director and then Chair of
Penguin Random House Australia Pty Limited,
and a former Director of Ramsay Health Care
Limited, Bank of Queensland Limited and
the Australian Publishers’ Association. She
also previously served on the boards of Chief
Executive Women (chairing its Scholarship
Committee), the Powerhouse Museum, and the
Sydney Writers Festival.
Current directorships: Scentre Group Limited,
Telstra Corporation Limited and Australian
Pacific (Holdings) Pty Limited.
Other interests: Member of the Australian
Public Service Commission Centre for Learning
and Leadership Advisory Board.
64%
Male
36%
Female
Board Tenure
0-3
Years
3-6
Years
6-9+
Years
11
For detailed information
of the Board skills matrix
refer to the Corporate
Governance Statement.
2019 ANNUAL REVIEW & SUSTAINABILITY REPORT37
GOVERNANCE
1. Number of directors with specific skills identified.

Executive team.
1 BRIAN HARTZER
BA, CFA
Managing Director & Chief Executive Officer
Brian was appointed Managing Director & Chief
Executive Officer in February 2015. Brian joined
Westpac as Chief Executive, Australian Financial
Services in June 2012, encompassing Westpac
Retail & Business Banking, St.George Banking
Group and BT Financial Group.
Brian is a Director of the Australian Banking
Association and was formerly the Chairman until
December 2015. Prior to joining Westpac, Brian
spent three years in the UK as CEO for Retail,
Wealth and Ulster Bank at the Royal Bank of
Scotland Group. Prior to that, he spent ten years
with Australia and New Zealand Banking Group
Limited (ANZ) in Australia in a variety of roles,
including his final role as CEO, Australia and Global
Segment Lead for Retail and Wealth. Before
joining ANZ, Brian spent ten years as a financial
services consultant in New York, San Francisco
and Melbourne.
Brian graduated from Princeton University with
a degree in European History and is a Chartered
Financial Analyst.
2 CRAIG BRIGHT
B.Comp
Chief Information Officer
Craig was appointed Group Chief Information
Officer in December 2018. Craig has more
than 30 years’ experience in technology and
financial services. He has held divisional CIO
roles in retail banking, business banking and
investment banking and led complex global scale
technology operations.
Prior to joining Westpac, Craig was Chief
Technology Officer, Global Consumer Bank
at Citigroup. He led a division of technology
employees executing a cloud and mobile first
strategy supporting digital channels and a mix
of Citi Smart Banking formats worldwide. Craig
has also held senior roles at Barclays in London,
National Australia Bank and Ernst & Young.
Craig has a Bachelor of Computing from
Monash University and a Computer Field Service
Certificate from Royal Melbourne Institute
of Technology.
3 LYN COBLEY
BEc, SF FIN, GAICD
Chief Executive, Westpac Institutional Bank
Lyn was appointed Chief Executive, Westpac
Institutional Bank in September 2015. She has
responsibility for Westpac’s global relationships
with corporate, institutional and government
clients as well as all products across financial and
capital markets, transactional banking, structured
finance and working capital payments. In addition,
Lyn oversees Westpac’s International and Pacific
Island businesses.
Lyn has over 27 years’ experience in financial
services. Prior to joining Westpac, Lyn held a
variety of senior positions at the Commonwealth
Bank of Australia including serving as Group
Treasurer from 2007 to 2013 and most recently
as Executive General Manager, Retail Products
& Third Party Banking. She also held senior roles
at Barclays Capital in Australia and Citibank in
Australia and Asia Pacific, and was CEO of Trading
Room (a joint venture between Macquarie Bank
and Fairfax).
Lyn is a Board member of the Australian Financial
Markets Association (AFMA), the Banking &
Finance Oath and the Westpac Foundation. She is
Chairman of Westpac’s Asia Advisory Board and is
also a member of Chief Executive Women.
Lyn has a Bachelor of Economics from Macquarie
University, is a Senior Fellow of the Financial
Services Institute of Australia and is a graduate of
the Australian Institute of Company Directors.
4 PETER KING
BEc, FCA
Chief Financial Officer
Peter was appointed Chief Financial Officer
in April 2014. Peter has responsibility for
Westpac’s Finance, Tax, Treasury and Investor
Relations functions.
Prior to this appointment, Peter was the Deputy
Chief Financial Officer for three years and has held
other senior finance positions across the Group,
including in Group Finance, Business and Consumer
Banking, Business and Technology Services,
Treasury and Financial Markets.
Peter commenced his career at Deloitte Touche
Tohmatsu. He has a Bachelor of Economics from
Sydney University and completed the Advanced
Management Programme at INSEAD. He is a Fellow
of the Institute of Chartered Accountants.
5 REBECCA LIM
B Econ, LLB (Hons)
Group Executive, Legal & Secretariat
Rebecca was appointed as a Westpac Group
Executive in October 2016 and is responsible for
legal and secretariat functions globally. She was
appointed Group General Counsel in November
2011 and was Chief Compliance Officer from 2013
to 2017.
Rebecca joined Westpac in 2002 and has
held a variety of other senior leadership roles
including General Manager, Human Resources for
St.George Bank and General Manager, St.George
Private Clients.
Rebecca began her career at Blake Dawson
Waldron (now Ashurst) before joining the US firm
Skadden Arps where she worked in both New
York and London. Rebecca then moved into an
in-house role in investment banking at Goldman
Sachs in London before returning to Australia and
joining Westpac.
Rebecca is Deputy Chair of the GC100
Executive Committee and a member of
Chief Executive Women.
38 EXECUTIVE TEAMWESTPAC GROUP
12
3
5
7
9
11
12
10
6
8
4
GOVERNANCE

6 DAVID LINDBERG
HBA (Hons. Economics)
Chief Executive, Consumer
David was appointed Chief Executive, Consumer
in April 2019, responsible for the end to end
relationships with consumer customers. This
includes all consumer distribution, digital,
marketing, banking and insurance products
and services under the Westpac, St.George,
BankSA, Bank of Melbourne, BT, and RAMS
brands. Prior to this appointment, David was
Chief Executive, Business Bank from June 2015
managing relationships with business customers
for the Westpac, St.George, BankSA and Bank of
Melbourne brands.
Before this David was Chief Product Officer for
the Group’s retail and business products, as well
as overseeing the Group’s digital activities. Before
joining Westpac in 2012, David was Executive
General Manager, Cards, Payments & Retail
Strategy at the Commonwealth Bank of Australia.
David was also formerly Managing Director,
Strategy, Marketing & Customer Segmentation at
Australia and New Zealand Banking Group Limited
and Vice President and Head of Australia for
First Manhattan.
7 CAROLYN MCCANN
BBus (Com), BA, GradDipAppFin, GAICD
Group Executive, Customer & Corporate Relations
Carolyn was appointed as Westpac’s Group
Executive, Customer & Corporate Relations
in June 2018. This division brings together
management of the Group’s customer resolution
and reporting, alongside our corporate affairs,
communications and sustainability functions,
recognising the importance of setting high
service standards and quickly resolving customer
issues in managing the Group’s relationship with
its customers.
Carolyn joined the Westpac Group in 2013,
as General Manager, Corporate Affairs &
Sustainability, during which time she played
an instrumental role in leading the Group’s
bicentenary program, including the launch of the
$100 million Westpac Scholars Trust (formerly
known as the Westpac Bicentennial Foundation).
Prior to joining Westpac, Carolyn spent 13 years
at Insurance Australia Group in various positions,
including Group General Manager, Corporate
Affairs & Investor Relations. Carolyn began her
career in consulting and has extensive experience
in financial services.
8 DAVID MCLEAN
LLB (Hons.)
Chief Executive Officer, Westpac New Zealand
David was appointed Chief Executive Officer,
Westpac New Zealand in February 2015. Since
joining Westpac in February 1999, David has held
a number of senior roles, including Head of Debt
Capital Markets New Zealand, General Manager,
Private, Wealth and Insurance New Zealand and
Head of Westpac Institutional Bank New Zealand,
and most recently, Managing Director of the
Westpac New York branch.
Before joining Westpac, David was Director,
Capital Markets at Deutsche Morgan Grenfell from
1994. He also established the New Zealand branch
of Deutsche Bank and was New Zealand Resident
Branch Manager. In 1988, David joined Southpac/
National Bank as a Capital Markets Executive.
Prior to this, David worked as a lawyer in private
practice and also served as in-house counsel for
NatWest NZ from 1985.
9 CHRISTINE PARKER
BGDipBus (HRM)
Group Executive, Human Resources
Christine was appointed to Westpac Group’s
Executive Team in October 2011. As Group
Executive, Human Resources, Christine leads
the HR function for the Group, responsible for
strengthening our service oriented and inclusive
culture, attracting and retaining the best talent,
developing and helping our workforce to grow
skills for the future, rewarding and recognising
our people and ensuring the health and wellbeing
of our people. Christine also oversees the
Group’s Customer Advocate function, corporate
communications, and supports the CEO and
Board on culture and conduct. Christine also has
responsibility for Office of the Banking Executive
Accountability Regime.
Since joining Westpac in 2007, Christine has held a
variety of senior leadership roles including Group
General Manager, Human Resources and General
Manager, Human Resources for Westpac New
Zealand Limited. Before joining Westpac, Christine
held senior HR roles in a number of high profile
organisations and across a range of industries,
including Carter Holt Harvey and Restaurant
Brands New Zealand.
Christine was previously a Director of
Women’s Community Shelters and is a
current member of the Chief Executive
Women, Governor of St.George Foundation
and member of the Veterans’ Employment
Industry Advisory Committee.
10 DAVID STEPHEN
BBus
Chief Risk Officer
David was appointed Chief Risk Officer in October
2018, with responsibility for risk management and
compliance activities across the Group.
Prior to this, David was the Chief Risk Officer for
Royal Bank of Scotland (RBS) from 2013, having
first joined RBS in 2010 as the Deputy Chief Risk
Officer. David has also previously held other senior
roles at both retail and investment banks in the
UK, USA, Hong Kong and Australia, including
serving as Chief Risk Officer at ANZ and Chief
Credit Officer at Credit Suisse Financial Products.
David has a Bachelor of Business in Banking and
Finance from Monash University and is a Board
member of both the International Financial Risk
Institute and the Financial Services Institute of
Australia (FINSIA).
11 GARY THURSBY
BEc, DipAcc, FCA
Chief Operating Officer
Gary was appointed Chief Operating Officer in
April 2019, having previously been in the role of
Group Executive, Strategy & Enterprise Services
since October 2016. In addition to leading the
Group’s strategy function, his role is designed to
support delivery of the Group’s Service Revolution
and provide services to support the Group’s
operating businesses.
Gary’s responsibilities also include banking
operations, advice remediation, procurement,
property, analytics, and enterprise investments. In
addition, Gary oversees the Group’s corporate and
business development portfolios.
Before joining Westpac in 2008, Gary held a
number of senior finance roles at Commonwealth
Bank of Australia including Deputy CFO and CFO
Retail Bank. Gary has over 20 years’ experience in
financial services, covering finance, M&A and large
scale program delivery. He commenced his career
at Deloitte Touche Tohmatsu.
Gary has a Bachelor of Economics and a Post
Graduate Diploma in Accounting from Flinders
University of South Australia and is a Fellow of the
Institute of Chartered Accountants.
12 ALASTAIR WELSH
MBA, BCA, CA
Acting Chief Executive, Business
Alastair was appointed Acting Chief Executive,
Business in April 2019. The Business division leads
relationships with Australia’s small, commercial,
corporate and agri businesses providing a wide
range of banking services and support across
Westpac, St George, BankSA, Bank of Melbourne
and Capital Finance brands. The division also
supports customers’ wealth and investment
needs including Private Wealth, Superannuation,
Platforms, Investments and Operations businesses
through all of our brands.
Alastair holds more than 30 years’ experience in
banking in the UK, New Zealand and Australia.
Since joining Westpac NZ in 1992, he has held a
variety of roles from relationship management
through to leadership positions for Small Business
Banking, BT Financial Group and Group Customer
Transformation. Prior to this appointment, Alastair
was General Manager for the Westpac Commercial
Business Bank.
2019 ANNUAL REVIEW & SUSTAINABILITY REPORT39
GOVERNANCE

Remuneration
reflects
performance.
2019 remuneration outcomes – snapshot
Chief Executive Officer
All employeesDirectors
Group Executives
The CEO recommended to the Board
that he forego his STVR for this year.
The Board separately considered
the matter and determined that a
zero STVR outcome for 2019 for
the CEO was appropriate to reflect
accountability for poor non-financial
risk and financial outcomes, as well
as some poor customer outcomes,
including those highlighted at the
Royal Commission.
The 2016 LTVR lapsed in full
because the relative TSR and cash
EPS performance hurdles were not
achieved. The CEO has not received
a share-based payment under the
LTVR for four consecutive years,
equating to $15.96 million worth of
lapsed performance share rights
over that period. This result is
aligned with shareholder outcomes
over the period.
In 2019, the CEO received $2.69
million in fixed remuneration and
$1.33 million in deferred STVR
awarded in prior years that vested
during the year, equalling $4.02
million in total realised remuneration
(i.e. take-home pay). This outcome is
33% of the maximum remuneration
he could have received for the year.
The CEO has not received a total
target remuneration increase since
his appointment in 2015.
The 2019 Group variable reward pool
for all employees was reduced by
$126 million from 2018 to align with
Group performance.
Downward remuneration
adjustments to STVR outcomes were
approved for 13 General Managers
in response to material risk and
compliance matters impacting the
Group, ranging from 10% to 100%.
Non-executive Director base fees
were reduced by 20% for all current
Non-executive Directors for the 2019
financial year as a one-off measure.
Group Executives received between
0% and 83% of their 2019 STVR
target opportunity.
The 2016 LTVR lapsed in full
because the relative TSR and cash
EPS performance hurdles were
not achieved.
The 2019 STVR scorecard outcome
for non-financial risk measures
was reduced to zero for Group
Executives. In addition, downward
remuneration adjustments were
applied to two Group Executives
and two former Group Executives
in response to material risk and
compliance matters that impacted
the Group, in some instances
reducing 2019 STVR outcomes to
zero. Many of these adjustments
related to events from prior periods
which have continued to develop
and, in some cases, for which
material remediation costs were
accounted for in 2019.
In addition, the Board exercised
its discretion to apply downward
adjustments to a portion of deferred
STVR awarded in prior years for two
former Group Executives.
40 REMUNERATIONWESTPAC GROUP
GOVERNANCE
We have made significant changes
to executive remuneration
this year to respond to
shareholder feedback received
on the 2018 Remuneration Report.
Westpac’s 2019 performance is discussed
in detail in both the Chairman’s report
and the CEO’s annual letter in this
Review. The 2019 variable reward
outcomes reflect Group, divisional
and individual performance and risk
outcomes. This includes through 2019
Short Term Variable Reward (STVR)
outcomes that are below target (and in
some cases zero) and the lapsing of 2016
Long Term Variable Reward (LTVR).
Following the first strike received against
our 2018 Remuneration Report at last
year’s Annual General Meeting, we have
increased engagement with shareholders
to better understand their views. As
a result of this feedback, along with
the Board’s own assessment, we have
implemented a number of changes to
remuneration, including:
• A reduction to the 2020 total target
remuneration of 23% for the CEO and
12.5% for Group Executives;
• The introduction of clawback as an
additional adjustment tool to recover
(to the extent legally permissable)
deferred variable reward after it has
vested in certain limited circumstances
(such as serious misconduct or other
conduct that resulted in, or would
justify, termination of employment).
Clawback will apply to variable
remuneration awarded in respect of
performance periods commencing
on or after 1 October 2019 where the
conduct warranting clawback occurs
after this date.
• The removal of the use of a fair value
allocation methodology to determine
the number of performance share rights
issued to the CEO and Group Executives.
2019 remuneration outcomes,
summarised on the opposite page, reflect
performance against the 2019 scorecard
and the Board’s discretion to adjust
variable remuneration outcomes for the
CEO and Group Executives.
For more information, see the
2019 Remuneration Report, part
of Westpac’s 2019 Annual Report,
online at www.westpac.com.au
/2019annualreport