Westpac 2020 Interim Financial Results Announcement

ASX Release


4 MAY 2020

Westpac 2020 Interim Financial Results Announcement (incorporating
requirements of Appendix 4D)

Westpac Banking Corporation (“Westpac”) today provides the attached Westpac
2020 Interim Financial Results Announcement (incorporating requirements of
Appendix 4D).








For further information:

David Lording Andrew Bowden
Group Head of Media Relations Head of Investor Relations
0419 683 411 T. (02) 8253 4008 (ext. 24008)
M. 0438 284 863


This document has been authorised for release by Tim Hartin, Group Company Secretary.


Level 18, 275 Kent Street
Sydney, NSW, 2000

Westpac Banking Corporation
ABN 33 007 457 141
A Westpac Little Ripper drone in flight above bushfire affected areas. A trial initiative supported
by Westpac, in partnership with WIRES, is using innovative technology to assist with wildlife
search and rescue.  
2020
Interim Financial
Results
For the six months ended 31 March 2020
Incorporating the requirements of Appendix 4D

ii2020 Interim Financial Results
Results Announcement to the market
ASX Appendix 4D
Results for announcement to the market
1

Report for the half year ended 31 March 2020
2
Revenue from ordinary activities
3,4
($m)up6%to$10,604
Profit from ordinary activities after tax attributable to equity holders
4
($m)down62%to$1,190
Net profit for the period attributable to equity holders
4
($m)down62%to$1,190
Dividend Distributions (cents per ordinary share)
Amount per
security
Franked amount
per security
Interim Dividend
5
TBDTBD
Record date for determining entitlements to the dividend
5
TBD
1. This document comprises the Westpac Group 2020 Interim Financial Results, including the 2020 Interim Financial Report contained in Section 4 and is
provided to the Australian Securities Exchange under Listing Rule 4.2A.
2. This report should be read in conjunction with the Westpac Group Annual Report 2019 and any public announcements made in the period by the
Westpac Group in accordance with the continuous disclosure requirements of the Corporations Act 2001 and ASX Listing Rules.
3. Comprises reported interest income, interest expense and non-interest income.
4. Above comparisons are to the reported results for the six months ended 31 March 2019.
5. The Board has deferred the decision on determining an interim dividend and no dividend will be paid in June 2020.

iii2020 Interim Financial Results
1
2
3
4
5
6
7
Results Announcement to the market
Index
01Group results1
1.1 Reported results1
1.2 Key financial information2
1.3 Cash earnings results3
1.4 Market share and system multiple metrics8
02Review of Group operations9
2.1 Performance overview13
2.2 Review of earnings21
2.3 Credit quality33
2.4 Balance sheet and funding35
2.5 Capital and dividends40
2.6 Sustainability performance46
03Divisional results52
3.1 Consumer53
3.2 Business57
3.3 Westpac Institutional Bank60
3.4 Westpac New Zealand62
3.5 Group Businesses65
042020 Interim Financial Report67
4.1 Directors’ report68
4.2 Consolidated income statement97
4.3 Consolidated statement of comprehensive income98
4.4 Consolidated balance sheet99
4.5 Consolidated statement of changes in equity100
4.6 Consolidated cash flow statement101
4.7 Notes to the consolidated financial statements102
4.8 Statutory statements136
05Cash earnings financial information139
06Other information150
6.1 Disclosure regarding forward-looking statements150
6.2 References to websites151
6.3 Credit ratings151
6.4 Dividend reinvestment plan151
6.5 Information on related entities151
6.6 Financial calendar and Share Registry details152
6.7 Exchange rates156
07Glossary157

iv2020 Interim Financial Results
Results Announcement to the market
In this Interim Financial Results Announcement (Results Announcement) references to ‘Westpac’, ‘WBC’, ‘Westpac Group’, ‘the
Group’, ‘we’, ‘us’ and ‘our’ are to Westpac Banking Corporation and its controlled entities, unless it clearly means just Westpac
Banking Corporation.
All references to $ in this Results Announcement are to Australian dollars unless otherwise stated.
Financial calendar
Interim Results Announcement released 4 May 2020
Ex-dividend date for interim dividend
1
TBD
Record date for interim dividend (Sydney)
1
TBD
Interim dividend payable
1
TBD
Final Results Announcement (scheduled) 2 November 2020
1. The Board has deferred the decision on determining an interim dividend and no dividend will be paid in June 2020.

12020 Interim Financial Results
1
2
3
4
5
6
7
Group results
1.0 Group results
1.1 Reported results
Reported net profit attributable to owners of Westpac Banking Corporation (WBC) is prepared in accordance with the
requirements of Australian Accounting Standards (AAS) and regulations applicable to Australian Authorised Deposit-taking
Institutions (ADIs).
Half YearHalf YearHalf Year% Mov’t
1
$m
March
2020
Sept
2019
March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
Net interest income 9,000 8,644 8,263 4 9
Net fee income 755 829 826 (9)(9)
Net wealth management and insurance income 465 703 326 (34) 43
Trading income 460 492 437 (7) 5
Other income(76) 2 127 largelarge
Net operating income before operating expenses and impairment charges 10,604 10,670 9,979 (1) 6
Operating expenses(6,181)(5,015)(5,091) 23 21
Profit before impairment charges and income tax expense 4,423 5,655 4,888 (22)(10)
Impairment charges(2,238)(461)(333)largelarge
Profit before income tax 2,185 5,194 4,555 (58)(52)
Income tax expense(994)(1,580)(1,379)(37)(28)
Net profit for the period 1,191 3,614 3,176 (67)(63)
Net profit attributable to non-controlling interests(1)(3)(3)(67)(67)
Net profit attributable to owners of WBC 1,190 3,611 3,173 (67) (62)
Net profit attributable to owners of Westpac Banking Corporation for First Half 2020 was $1,190 million, a decrease of
$1,983 million or 62% compared to First Half 2019. First Half 2020 included a significant increase in impairment charges due to
the expected economic impact of the COVID-19 pandemic, costs associated with AUSTRAC proceedings including a provision
for a potential penalty, and the impact of estimated customer refunds, payments, associated costs and litigation, which together
reduced net profit before tax by $3,008 million. These items are further discussed in Section 1.3.2, Section 2.1, Section 2.2.9
and in Note 10 and Note 14 of the 2020 Interim Financial Report.
Net interest income increased $737 million compared to First Half 2019 from a 2% increase in average interest-earning assets
(mostly higher liquid assets) and an increase in net interest margin of 12 basis points to 2.21%. The movement in net interest
income is attributable to:
• movements in economic hedges; and
• a decrease in the charge for estimated customer refunds, payments, associated costs and litigation; partially offset by
• the impact of lower rates on average interest earning assets exceeding benefits from the decrease in the Group’s funding
costs.
Net interest income, loans, deposits and other borrowings and net interest margin are discussed further in Sections 2.2.1 to
2.2.4.
In aggregate, non-interest income decreased $112 million compared to First Half 2019 mainly due to:
• a decrease in net fee income from lower product volumes and exit of the Advice business;
• a decrease in the valuation of Pendal; and
• lower asset sales; partially offset by
• a reduced charge for estimated customer refunds, payments, associated costs and litigation.
Non-interest income is discussed further in Section 2.2.5.
Operating expenses increased $1,090 million or 21% compared to First Half 2019. The rise was mainly due to:
• costs associated with AUSTRAC proceedings including a provision for a potential penalty; and
• an increase in amortisation and impairment of the Group’s software; partially offset by
• provisions for Wealth restructuring in the prior period.
Operating expenses are discussed further in Section 2.2.8.
Impairment charges were $1,905 million higher compared to First Half 2019 reflecting the rapid deterioration in the economy
as a result of the COVID-19 pandemic which has led to a significant increase in the expected credit losses the Group has
estimated under AASB9. Asset quality was sound, with stressed exposures as a percentage of total committed exposures at
1.32%, up 22 basis points compared to First Half 2019. Given that COVID-19’s economic impact only escalated in March 2020,
these metrics do not fully reflect the more challenging position beginning to emerge across the economy and its impact on
customers. Impairment charges are discussed further in Section 2.2.9 and Note 10 of the 2020 Interim Financial Report.
The effective tax rate of 45.5% was higher than the First Half 2019 effective tax rate of 30.3% as the costs associated with
AUSTRAC proceedings including a provision for a potential penalty were substantially non deductible. Income tax expense is
discussed further in Section 2.2.10.
1. Percentage movement represents an increase/(decrease) to the relevant comparative period.

22020 Interim Financial Results
Group results
1.2 Key financial information
1
Half YearHalf YearHalf Year% Mov’t
March
2020
Sept
2019
March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
Shareholder value
Earnings per ordinary share (cents) 33.2 104.1 92.3 (68)(64)
Weighted average ordinary shares (millions)
2
3,574 3,464 3,436 3 4
Fully franked dividends per ordinary share (cents)
3
TBD 80 94 TBDTBD
Dividend payout ratio
3
TBD 77.26% 102.00%TBDTBD
Return on average ordinary equity 3.52% 11.24% 10.05%largelarge
Average ordinary equity ($m) 67,625 64,078 63,348 6 7
Average total equity ($m) 67,678 64,126 63,400 6 7
Net tangible asset per ordinary share ($) 15.43 15.36 15.12 - 2
Business performance
Interest spread 2.08% 1.99% 1.89% 9 bps 19 bps
Benefit of net non-interest bearing assets, liabilities and equity 0.13% 0.16% 0.20%(3 bps)(7 bps)
Net interest margin 2.21% 2.15% 2.09% 6 bps 12 bps
Average interest earning assets ($m) 812,971 803,165 794,660 1 2
Expense to income ratio 58.29% 47.00% 51.02%largelarge
Capital, funding and liquidity
Common equity Tier 1 capital ratio
- APRA Basel III 10.81% 10.67% 10.64% 14 bps 17 bps
- Internationally comparable 15.81% 15.85% 16.17%(4 bps)(36 bps)
Credit risk weighted assets (credit RWA) ($m) 369,142 367,864 362,762 - 2
Total risk weighted assets (RWA) ($m) 443,905 428,794 419,819 4 6
Liquidity coverage ratio (LCR) 154% 127% 138%largelarge
Net stable funding ratio (NSFR) 117% 112% 113%large 396 bps
Asset quality
Gross impaired exposure to gross loans 0.30% 0.25% 0.24% 5 bps 6 bps
Gross impaired exposure to equity and total provisions 2.93% 2.54% 2.57% 39 bps 36 bps
Gross impaired exposure provisions to gross impaired exposure 50.09% 44.92% 45.74%largelarge
Total committed exposures (TCE) ($bn) 1,082 1,050 1,047 3 3
Total stressed exposures as a % of TCE
4
1.32% 1.20% 1.10% 12 bps 22 bps
Total provisions to gross loans 80 bps 54 bps 56 bps 26 bps 24 bps
Mortgages 90+ day delinquencies 0.87% 0.82% 0.75% 5 bps 12 bps
Other consumer loans 90+ day delinquencies 1.94% 1.69% 1.80% 25 bps 14 bps
Collectively assessed provisions to credit RWA 140 bps 95 bps 98 bps 45 bps 42 bps
Balance sheet ($m)
Loans 719,678 714,770 714,297 1 1
Total assets 967,662 906,626 891,062 7 9
Deposits and other borrowings 582,920 563,247 555,007 3 5
Total liabilities 900,016 841,119 827,127 7 9
Total equity 67,646 65,507 63,935 3 6
Wealth Management
Average Group Funds ($bn) 224.6 221.8 207.3 1 8
Life insurance in-force premiums (Australia) ($m) 1,208 1,212 1,259 - (4)
General insurance gross written premiums (Australia) ($m) 273 279 259 (2) 5
1. Averages are based on a six month period.
2. Weighted average number of fully paid ordinary shares listed on the ASX for the relevant period less average Westpac shares held by the Group
(“Treasury shares”).
3. The Board has deferred the decision on determining an interim dividend and no dividend will be paid in June 2020.
4. Stressed exposures include program managed loans 90 days plus and non-performing transaction managed loans.

32020 Interim Financial Results
1
2
3
4
5
6
7
Group results
1.3 Cash earnings results
Throughout this Results Announcement, reporting and commentary of financial performance refers to ‘cash earnings results’,
unless otherwise stated. Section 4 is prepared on a reported basis. A reconciliation of cash earnings to reported results is set
out in Section 5, Note 8.
Certain commentary throughout this Results Announcement refers to performance excluding ‘notable items’. Details on notable
items are discussed in Section 1.3.2.
Half YearHalf YearHalf Year% Mov’t
$m
March
2020
Sept
2019
March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
Net interest income 8,666 8,564 8,389 1 3
Non-interest income 1,675 1,988 1,714 (16)(2)
Net operating income 10,341 10,552 10,103 (2) 2
Operating expenses(6,160)(4,990)(5,041) 23 22
Core earnings 4,181 5,562 5,062 (25)(17)
Impairment charges(2,238)(461)(333)largelarge
Operating profit before income tax 1,943 5,101 4,729 (62)(59)
Income tax expense(949)(1,545)(1,430)(39)(34)
Net profit for the period 994 3,556 3,299 (72)(70)
Net profit attributable to non-controlling interests(1)(3)(3)(67)(67)
Cash earnings 993 3,553 3,296 (72)(70)
Add back notable items 1,285 377 753 large 71
Cash earnings excluding notable items 2,278 3,930 4,049 (42)(44)

42020 Interim Financial Results
Group results
1.3.1 Key financial information – cash earnings basis
Half YearHalf YearHalf Year% Mov’t
March
2020
Sept
2019
March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
Shareholder value
Cash earnings per ordinary share (cents) 27.7 102.4 95.8 (73)(71)
Economic profit/(loss) ($m)
1
(2,146) 959 660 largelarge
Weighted average ordinary shares (millions)
2
3,579 3,470 3,442 3 4
Dividend payout ratio
3
TBD 78.58% 98.33%TBDTBD
Cash earnings return on average ordinary equity (ROE) 2.94% 11.06% 10.43%largelarge
Cash earnings return on average tangible ordinary equity (ROTE) 3.42% 13.01% 12.30%largelarge
Average ordinary equity ($m) 67,625 64,078 63,348 6 7
Average tangible ordinary equity ($m)
4
58,024 54,478 53,748 7 8
Business performance
Interest spread 1.99% 1.96% 1.92% 3 bps 7 bps
Benefit of net non-interest bearing assets, liabilities and equity 0.14% 0.17% 0.20%(3 bps)(6 bps)
Net interest margin 2.13% 2.13% 2.12%- 1 bps
Average interest earning assets ($m) 812,971 803,165 794,660 1 2
Expense to income ratio 59.57% 47.29% 49.90%largelarge
Full time equivalent employees (FTE) 34,199 33,288 34,241 3 -
Revenue per FTE ($ ‘000’s) 309 314 294 (2) 5
Effective tax rate 48.84% 30.29% 30.24%largelarge
Impairment charges
Impairment charges to average loans annualised 62 bps 13 bps 9 bps 49 bps 53 bps
Net write-offs to average loans annualised 12 bps 15 bps 12 bps(3 bps)-
1. Refer to Section 5, Note 9 for further details.
2. Weighted average ordinary shares – cash earnings: represents the weighted average number of fully paid ordinary shares listed on the ASX for the
relevant period.
3. The Board has deferred the decision on determining an interim dividend and no dividend will be paid in June 2020.
4. Average tangible ordinary equity is calculated as average ordinary equity less intangible assets (excluding capitalised software).

52020 Interim Financial Results
1
2
3
4
5
6
7
Group results
1.3.2 Impact of notable items
The table below summarises the impact of notable items on the financial results. Cash earnings and individual line items for the
halves were impacted by:
• costs associated with AUSTRAC proceedings including a provision for a potential penalty;
• estimated customer refunds, payments, associated costs and litigation; and
• the restructuring of the Wealth business.
These items are referred to as ‘notable items’ through the document and their impacts on each half are disclosed in the table
below.
Half Year March 2020Half Year Sept 2019Half Year March 2019
$m
Costs
associated
with
AUSTRAC
proceedings
including a
provision for
a potential
penalty
Estimated
customer
refunds,
payments,
associated
costs and
litigationTotal
Estimated
customer
refunds,
payments,
associated
costs and
litigation
Wealth
RestructuringTotal
Estimated
customer
refunds,
payments,
associated
costs and
litigation
Wealth
RestructuringTotal
Net interest income- (106)(106)(132)- (132)(212)- (212)
Net fee income- (147)(147)(118)- (118)(165)- (165)
Net wealth
management and
insurance income- 16 16 (102)- (102)(435)- (435)
Non-interest income- (131)(131)(220)- (220)(600)- (600)
Net operating income- (237)(237)(352)- (352)(812)- (812)
Staff expenses- (61)(61)(33)(27)(60)(66)(142)(208)
Technology expenses- (3)(3)(2)(13)(15)(9)(11)(20)
Other expenses(1,058)(68)(1,126)(101)(11)(112)(9)(37)(46)
Operating expenses(1,058)(132)(1,190)(136)(51)(187)(84)(190)(274)
Operating profit before
tax(1,058)(369)(1,427)(488)(51)(539)(896)(190)(1,086)
Income tax expense 31 111 142 147 15 162 279 54 333
Cash earnings(1,027)(258)(1,285)(341)(36)(377)(617)(136)(753)
1.3.3 Key financial information – cash earnings basis excluding the impact of notable items
Half YearHalf YearHalf Year% Mov’t
March
2020
Sept
2019
March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
Cash earnings per ordinary share (cents) 63.6 113.3 117.6 (44)(46)
Cash earnings return on average ordinary equity (ROE) 6.74% 12.23% 12.82%largelarge
Net interest margin 2.16% 2.16% 2.17%- (1 bps)
Expense to income ratio 46.98% 44.05% 43.67% 293 bps 331 bps

62020 Interim Financial Results
Group results
1.3.4 Cash earnings policy
In assessing financial performance, including divisional results, Westpac Group uses a measure of performance referred to
as ‘cash earnings’. Cash earnings is viewed as a measure of the level of profit that is generated by ongoing operations and is
therefore considered in assessing distributions, including dividends. Cash earnings is neither a measure of cash flow nor net
profit determined on a cash accounting basis, as it includes both cash and non-cash adjustments to statutory net profit.
Management believes this allows the Group to more effectively assess performance for the current period against prior periods
and to compare performance across business divisions and across peer companies.
To determine cash earnings, three categories of adjustments are made to reported results:
• Material items that key decision makers at the Westpac Group believe do not reflect the Group’s operating performance;
• Some items that are not considered when dividends are recommended, such as the amortisation of intangibles, impact of
Treasury shares and economic hedging impacts; and
• Accounting reclassifications between individual line items that do not impact reported results.
A full reconciliation of reported results to cash earnings is set out in Section 5, Note 8:
Reconciliation of reported results to cash earnings and cash earnings excluding notable items
Half YearHalf YearHalf Year% Mov’t
$m
March
2020
Sept
2019
March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
Net profit attributable to owners of WBC 1,190 3,611 3,173 (67)(62)
Fair value (gain)/loss on economic hedges(219)(90) 125 143 large
Ineffective hedges(24)(15)(5) 60 large
Adjustments related to Pendal 63 40 5 58 large
Treasury shares(17) 7 (2)largelarge
Total cash earnings adjustment (post-tax)(197)(58) 123 largelarge
Cash earnings 993 3,553 3,296 (72)(70)
Add back notable items 1,285 377 753 large 71
Cash earnings excluding notable items 2,278 3,930 4,049 (42)(44)
Outlined below are the cash earnings adjustments to the reported result:
• Fair value (gain)/loss on economic hedges (which do not qualify for hedge accounting under AAS) comprise:
–The unrealised fair value (gain)/loss on foreign exchange hedges of future New Zealand earnings impacting non-interest
income is reversed in deriving cash earnings as they may create a material timing difference on reported results but do
not affect the Group’s cash earnings over the life of the hedge; and
–The unrealised fair value (gain)/loss on hedges of accrual accounted term funding transactions are reversed in deriving
cash earnings as they may create a material timing difference on reported results but do not affect the Group’s cash
earnings over the life of the hedge.
• Ineffective hedges: The unrealised (gain)/loss on ineffective hedges is reversed in deriving cash earnings because the gain
or loss arising from the fair value movement in these hedges reverses over time and does not affect the Group’s profits
over time;
• Adjustments related to Pendal: Consistent with prior periods’ treatment, this item has been treated as a cash earnings
adjustment given its size and that it does not reflect ongoing operations. The Group has indicated that it may sell the
remaining shareholding in Pendal at some future date. The adjustment relates to the mark to market of the shares and
separation costs related to the original sell down. Any future gain or loss on this shareholding will similarly be excluded from
the calculation of cash earnings;
• Treasury shares: Under AAS, Westpac shares held by the Group in the managed funds and life businesses are deemed to
be Treasury shares and the results of holding these shares cannot be recognised in the reported results. In deriving cash
earnings, these results are included to ensure there is no asymmetrical impact on the Group’s profits because the Treasury
shares support policyholder liabilities and equity derivative transactions which are re-valued in determining income; and
• Accounting reclassifications between individual line items that do not impact reported results comprise:
–Operating leases: Under AAS rental income on operating leases is presented gross of the depreciation of the assets
subject to the lease. These amounts are offset in deriving non-interest income and operating expenses on a cash
earnings basis; and
–Policyholder tax recoveries: Income and tax amounts that are grossed up to comply with the AAS covering
Life Insurance Business (policyholder tax recoveries) are reversed in deriving income and taxation expense on a cash
earnings basis.

72020 Interim Financial Results
1
2
3
4
5
6
7
Group results
Full Year 2019 Revisions
In 2020, Westpac implemented a change to the presentation of its divisional financial information. The change has no impact on
the Group’s overall results or balance sheet but impacts divisional results and balance sheets. Comparative divisional financial
information has been restated for this change.
The change realigned divisional earnings and balance sheet disclosures for Consumer and Business for customer migrations
following a refinement to Westpac’s definition of a small to medium size enterprise customer. The change is aimed at providing
a more tailored service to the customers, by aligning them with the division that is best able to meet their needs. The change
moves approximately 49,000 customers from the Business to Consumer division.
This Results Announcement is unaudited
PricewaterhouseCoopers have reviewed the financial statements contained within Section 4 of this Results Announcement
and have issued an unmodified review report. All other sections, including the Directors’ Report in Section 4 of the Results
Announcement have not been subject to review by PricewaterhouseCoopers. The financial information contained in this Results
Announcement includes information extracted from the reviewed financial statements together with information that has not
been reviewed. The cash earnings disclosed as part of this Results Announcement have not been separately reviewed by
PricewaterhouseCoopers.

82020 Interim Financial Results
Group results
1.4 Market share and system multiple metrics
1.4.1 Market share
As atAs atAs at
31 March
2020
30 Sept
2019
31 March
2019
Australia
Banking system (Australian Prudential Regulation Authority (APRA))
1
Housing credit
2
23%24%24%
Cards23%23%23%
Household deposits22%22%23%
Business deposits20%20%20%
Financial system (Reserve Bank of Australia (RBA))
1
Housing credit
2
22%23%23%
Business credit16%17%18%
Retail deposits
3
21%22%21%
New Zealand (Reserve Bank of New Zealand (RBNZ))
4
Consumer lending18%18%18%
Deposits19%18%19%
Business lending17%16%17%
Australian Wealth Management
5
Platforms (includes Wrap and Corporate Super)18%18%18%
Retail (excludes Cash)18%17%17%
Corporate Super15%14%13%
1.4.2 System multiples
Half YearHalf YearHalf Year
March
2020
Sept
2019
March
2019
Australia
Banking system (APRA)
1
Housing credit
2,6
n/a 0.6 0.5
Cards
6
n/an/an/a
Household deposits 0.3 0.6 0.1
Business deposits 0.6 2.6 0.1
Financial system (RBA)
1
Housing credit
2,6
n/a 0.6 0.5
Business credit
6
0.2 n/an/a
Retail deposits
3,6
0.3 0.7 n/a
New Zealand (RBNZ)
4
Consumer lending 1.0 1.1 0.4
Household deposits 1.2 0.2 1.4
1. From March 2019 certain statistical data has been restated as a result of APRA’s implementation of the new Economic and Financial Statistics (EFS)
collection requirements. APRA’s EFS collection requirements have clarified and revised a number of key reporting definitions including residency,
industry sectors, and loan purpose. In addition, the EFS collection coverage has been expanded to include credit unions and building societies. The
restated balances are reported in APRA’s new Monthly Authorised Deposit-taking Institutional Statistics (MADIS) publication, which replaces APRA’s
Monthly Banking Statistics (MBS) publication. Westpac’s market share and growth multiples for First Half 2020 and Second Half 2019 have been
calculated based on APRA’s MADIS publication, with prior period comparative balances prepared on the previous MBS publication approach. As a
result of this change, market share and system multiples are not comparable to reporting periods prior to Second Half 2019.
2. Includes securitised loans.
3. Retail deposits as measured by the RBA, financial system includes financial corporations’ deposits.
4. New Zealand comprises New Zealand banking operations.
5. Market Share Australian Wealth Management based on market share statistics from Strategic Insight as at 31 December 2019 (for First Half 2020),
as at 30 June 2019 (for Second Half 2019) and as at 31 December 2018 (for First Half 2019).
6. n/a indicates that system growth or Westpac growth was negative.

92020 Interim Financial Results
1
2
3
4
5
6
7
Review of Group operations
2.0 Review of Group operations
Divisional cash earnings summary
Half Year March 2020
ConsumerBusiness
Westpac
Institutional
Bank
Westpac New
Zealand
1

(A$)
Group
BusinessesGroup

$m
Net interest income 4,177 2,438 655 940 456 8,666
Non-interest income 313 706 603 167 (114) 1,675
Net operating income 4,490 3,144 1,258 1,107 342 10,341
Operating expenses(2,024)(1,468)(654)(516)(1,498)(6,160)
Core earnings 2,466 1,676 604 591 (1,156) 4,181
Impairment (charges)/benefits(448)(805)(315)(200)(470)(2,238)
Operating profit before income tax 2,018 871 289 391 (1,626) 1,943
Income tax expense(608)(267)(113)(110) 149 (949)
Net profit 1,410 604 176 281 (1,477) 994
Net profit attributable to non-controlling interests- - (1)- - (1)
Cash earnings 1,410 604 175 281 (1,477) 993
Add back notable items(3) 99 - 5 1,184 1,285
Cash earnings excluding notable items 1,407 703 175 286 (293) 2,278
Half Year Sept 2019
ConsumerBusiness
Westpac
Institutional
Bank
Westpac New
Zealand
1

(A$)
Group
BusinessesGroup$m
Net interest income 4,094 2,538 700 915 317 8,564
Non-interest income 584 721 610 189 (116) 1,988
Net operating income 4,678 3,259 1,310 1,104 201 10,552
Operating expenses(1,901)(1,460)(631)(486)(512)(4,990)
Core earnings 2,777 1,799 679 618 (311) 5,562
Impairment (charges)/benefits(317)(194)(31) 24 57 (461)
Operating profit before income tax 2,460 1,605 648 642 (254) 5,101
Income tax expense(737)(483)(176)(181) 32 (1,545)
Net profit 1,723 1,122 472 461 (222) 3,556
Net profit attributable to non-controlling interests- - (2)- (1)(3)
Cash earnings 1,723 1,122 470 461 (223) 3,553
Add back notable items 31 119 - 23 204 377
Cash earnings excluding notable items 1,754 1,241 470 484 (19) 3,930
Mov’t Mar 20 - Sept 19
ConsumerBusiness
Westpac
Institutional
Bank
Westpac New
Zealand
1

(A$)
Group
BusinessesGroup%
Net interest income 2 (4)(6) 3 44 1
Non-interest income(46)(2)(1)(12)(2)(16)
Net operating income(4)(4)(4)- 70 (2)
Operating expenses 6 1 4 6 193 23
Core earnings(11)(7)(11)(4)large(25)
Impairment (charges)/benefits 41 largelargelargelargelarge
Operating profit before income tax(18)(46)(55)(39)large(62)
Income tax expense(18)(45)(36)(39)large(39)
Net profit(18)(46)(63)(39)large(72)
Net profit attributable to non-controlling interests- - (50)- (100)(67)
Cash earnings(18)(46)(63)(39)large(72)
Add back notable itemslarge(17)- (78)largelarge
Cash earnings excluding notable items(20)(43)(63)(41)large(42)
1. Refer to Section 3.4 for the Westpac New Zealand NZ$ divisional result.

102020 Interim Financial Results
Review of Group operations
Movement in cash earnings ($m)
First Half 2020 – Second Half 2019
2H19 cash
earnings
Add
back
2H19
notable
items
2H19
cash
earnings
ex notable
items
Net
interest
income
Non-
interest
income
Operating
expenses
Impairment
charges
Tax &
non-
controlling
interests
1H20 cash
earnings
ex
notable
items
1H20
notable
items
1H20 cash
earnings
3,553
3773,930
76
(402)
(167)
(1,777)
6182,278
(1,285)
993
(72%)
(42%)
Movement in core earnings by division ($m)
First Half 2020 – Second Half 2019
2H19 core
earnings
Add
back
2H19
notable
items
2H19
core
earnings
ex notable
items
ConsumerBusinessWIBWestpac
New
Zealand
(A$)
Group
Businesses
1H20 core
earnings
ex
notable
items
1H20
notable
items
1H20 core
earnings
5,562
539
6,101
(362)
(153)
(75)
(52)
1495,608
(1,427)
4,181
(25%)
(8%)

112020 Interim Financial Results
1
2
3
4
5
6
7
Review of Group operations
Half Year March 2020
ConsumerBusiness
Westpac
Institutional
Bank
Westpac New
Zealand
1

(A$)
Group
BusinessesGroup

$m
Net interest income 4,177 2,438 655 940 456 8,666
Non-interest income 313 706 603 167 (114) 1,675
Net operating income 4,490 3,144 1,258 1,107 342 10,341
Operating expenses(2,024)(1,468)(654)(516)(1,498)(6,160)
Core earnings 2,466 1,676 604 591 (1,156) 4,181
Impairment (charges)/benefits(448)(805)(315)(200)(470)(2,238)
Operating profit before income tax 2,018 871 289 391 (1,626) 1,943
Income tax expense(608)(267)(113)(110) 149 (949)
Net profit 1,410 604 176 281 (1,477) 994
Net profit attributable to non-controlling interests- - (1)- - (1)
Cash earnings 1,410 604 175 281 (1,477) 993
Add back notable items(3) 99 - 5 1,184 1,285
Cash earnings excluding notable items 1,407 703 175 286 (293) 2,278
Half Year March 2019
ConsumerBusiness
Westpac
Institutional
Bank
Westpac New
Zealand
1

(A$)
Group
BusinessesGroup

$m
Net interest income 3,915 2,487 743 945 299 8,389
Non-interest income 554 746 682 234 (502) 1,714
Net operating income 4,469 3,233 1,425 1,179 (203) 10,103
Operating expenses(1,867)(1,394)(653)(453)(674)(5,041)
Core earnings 2,602 1,839 772 726 (877) 5,062
Impairment (charges)/benefits(272)(70)(15)(14) 38 (333)
Operating profit before income tax 2,330 1,769 757 712 (839) 4,729
Income tax expense(694)(531)(210)(188) 193 (1,430)
Net profit 1,636 1,238 547 524 (646) 3,299
Net profit attributable to non-controlling interests- - (3)- - (3)
Cash earnings 1,636 1,238 544 524 (646) 3,296
Add back notable items 2 151 - - 600 753
Cash earnings excluding notable items 1,638 1,389 544 524 (46) 4,049
Mov’t Mar 20 - Mar 19
ConsumerBusiness
Westpac
Institutional
Bank
Westpac New
Zealand
1

(A$)
Group
BusinessesGroup%
Net interest income 7 (2)(12)(1) 53 3
Non-interest income(44)(5)(12)(29)(77)(2)
Net operating income - (3)(12)(6)large 2
Operating expenses 8 5 - 14 122 22
Core earnings(5)(9)(22)(19) 32 (17)
Impairment (charges)/benefits 65 largelargelargelargelarge
Operating profit before income tax(13)(51)(62)(45) 94 (59)
Income tax expense(12)(50)(46)(41)(23)(34)
Net profit(14)(51)(68)(46) 129 (70)
Net profit attributable to non-controlling interests- - (67)- - (67)
Cash earnings(14)(51)(68)(46) 129 (70)
Add back notable itemslarge(34)- - 97 71
Cash earnings excluding notable items(14)(49)(68)(45)large(44)
1. Refer to Section 3.4 for the Westpac New Zealand NZ$ divisional result.

122020 Interim Financial Results
Review of Group operations
Movement in cash earnings ($m)
First Half 2020 – First Half 2019
1H19 cash
earnings
Add
back
1H19
notable
items
1H19
cash
earnings
ex notable
items
Net
interest
income
Non-
interest
income
Operating
expenses
Impairment
charges
Tax &
non-
controlling
interests
1H20 cash
earnings
ex
notable
items
1H20
notable
items
1H20 cash
earnings
3,296
7534,049
171
(508)
(203)
(1,905)
674
2,278
(1,285)
993
(70%)
(44%)
Movement in core earnings by division ($m)
First Half 2020 – First Half 2019
1H19 core
earnings
Add
back
1H19
notable
items
1H19
core
earnings
ex notable
items
ConsumerBusinessWIBWestpac
New
Zealand
(A$)
Group
Businesses
1H20 core
earnings
ex
notable
items
1H20
notable
items
1H20 core
earnings
5,062
1,0866,148
(157)
(239)
(168)
(128)
152
5,608
(1,427)
4,181
(17%)
(9%)

132020 Interim Financial Results
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2
3
4
5
6
7
2.1 Performance overview
Overview
Westpac’s performance in First Half 2020 was significantly impacted by the COVID-19 pandemic, including its effect on
employees, customers and the broader economy. Westpac’s coordinated approach to the crisis is focused on the safety of its
people, support for customers and helping the economy through this challenging time.
Westpac’s First Half 2020 financial results were considerably lower over both the prior half and prior corresponding period due
to the immediate and expected flow-on impacts of COVID-19 on impairment charges, along with two other major factors outlined
below.
The first is the provisions and costs related to the Australian Transaction Reports and Analysis Centre’s (AUSTRAC) civil
proceedings against Westpac in relation to alleged contraventions of the Anti-Money Laundering and Counter-Terrorism
Financing Act. These civil proceedings contributed to Board and management changes and led to a provision for a potential
penalty along with additional costs, including from the Group’s Response Plan. In aggregate, these costs reduced cash earnings
in First Half 2020 by over $1 billion. Other impacts of the AUSTRAC civil proceedings are set out below.
Secondly, the financial services sector, including Westpac, has continued to respond to the recommendations from the Royal
Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (Royal Commission), as well
as governance, culture and accountability self-assessments. For Westpac, implementing these recommendations and putting
things right for customers where the Group got it wrong has contributed to higher regulatory and compliance costs and
additional provisions for estimated customer refunds, payments, associated costs and litigation. These provisions reduced cash
earnings in First Half 2020 by $258 million.
Prior to the emergence of COVID-19, the sector had been impacted by a slowing in GDP growth, continued low wages
growth, subdued business and consumer sentiment and lower interest rates. For financial services companies, this resulted
in relatively modest demand for lending, further pressure on net interest margins and increased competition, particularly from
new and smaller players. The housing market on the other hand had shown some signs of recovery with house prices generally
improving in major markets through the half. However, given recent events this recovery is unlikely to be sustained.
COVID-19
The largest financial impact of COVID-19 on performance in First Half 2020 has been a material increase in impairment charges
linked to the changed economic outlook. Slower activity, together with falls in asset values, have also contributed to the write-
down of certain assets and capitalised software. While other aspects of Westpac’s operations were impacted by the effects of
COVID-19, as the crisis emerged late in the period, the financial impact was relatively modest. Additional effects are expected to
emerge in Second Half 2020, the size of which will depend on a range of factors including the duration of the crisis, the impact
of stimulus measures and how consumers and businesses respond.
Over the last two centuries, Westpac has supported its people, customers, and the community more broadly through recessions,
depressions and a range of crises. Westpac will continue to do so through the COVID-19 pandemic. Some examples of
Westpac’s actions include the following:
Protecting employees
The physical and mental wellbeing of employees is paramount, and the Group has enhanced policies, practices and procedures
to keep our people safe, assist them to work effectively and continue supporting customers and the community, including:
• Supporting around 22,000 employees working from home in Australia, with around 4,000 employees remaining in corporate
sites to deliver essential banking services;
• Over 300,000 hours of video conferencing in March 2020 compared to 42,000 hours 12 months ago;
• Enhanced corporate cleaning, increased availability of hand sanitisers, temperature checks in larger sites, installation of
polycarbonate protective screens, and increased resources to help employees manage their physical and mental wellbeing;
• Actively changed work arrangements to deal with increased customer demand for assistance, a decline in branch visits and
lockdowns experienced by some offshore service providers; and
• Special paid leave for employees (including casuals) required to self-isolate.
Supporting consumers
Helping consumers to bank safely and manage their finances effectively, including:
• A range of initiatives to reduce personal contact by helping customers set up internet banking, encouraging self-serve and
increasing the use of electronic and contactless channels;
• Remaining open for business with over 94% of Australian branches open, and ATM availability exceeding 98% through
March 2020;
• Supporting consumers with a range of special assistance packages including principal and interest deferral for mortgages
(6 months) and cards/personal loans (3 months);
• Around 120,000 assistance packages for mortgages have been approved;
• Special interest rates for term deposits, fixed rate home loans for 1, 2 and 3 year terms; and
• Increased limits on tap-and-go transactions to $200 from $100 and increased limits on digital cheque deposits.
Review of Group operations
Review of Group operations

142020 Interim Financial Results
Supporting businesses
Helping businesses manage their finances through these challenging times, including:
• Payment deferral options for businesses with certain loans of up to $10 million;
• Seconding certain of the Group’s business specialists into contact centres to support businesses manage their cash flow;
• Approved over 31,000 assistance packages;
• Providing unsecured loans of up to $0.25 million for 3 years for businesses with turnover <$50 million (50% guaranteed by
the Federal Government);
• Providing temporary funding to businesses waiting for JobKeeper payments;
• Working closely with large corporates and institutions to support liquidity needs with WIB supporting a $5 billion increase in
lending late in First Half 2020; and
• Special interest rates and fees: 200 basis point discount on overdrafts, 100 basis point discount on cash-based loans, fees
waived on merchant terminal rentals for up to 3 months, no establishment fee for equipment finance loans.
Supporting the economy and community
As one of Australia’s and New Zealand’s major banks, Westpac plays a critical role in supporting the economy and the
communities in which it operates, including:
• Materially improving system stability and resilience, with a 48% reduction in high severity incidents while keeping our
systems and data safe from external hacks;
• Supporting State governments with debt purchases and data insights on the impacts of the COVID-19 on consumers and
businesses;
• Updating the Group’s employee matching gifts program to support certain COVID-19 related causes;
• With their major sponsor impacted by the effects of COVID-19, St.George Bank stepped in to help fund Little Wings which
provides a free service to help rural families travel to the Sydney Children’s Hospital to receive vital medical treatment;
• Working constructively with government and the industry to develop effective support mechanisms for customers.
Through First Half 2020, Westpac responded to the severe bushfires that impacted much of eastern Australia by setting up
practical, on-the-ground support for customers, our people and for those caring for affected communities. Some of the initiatives
included: allocating $3.8 million for emergency cash grants for consumers and businesses, making mortgage payments for one
year for those losing their principal residence and providing low interest rates on loans to help businesses rebuild. Additional
community support included funds for financial counselling along with donations to the Salvation Army’s Disaster Appeal, state
bushfire appeals and to various volunteer services. For our people, Westpac provided uncapped paid leave to emergency
services volunteers in bushfire affected areas along with grants of $5,000 to employees needing emergency relief.
CEO priorities
Following his appointment as CEO, Peter King announced some changes to the Group’s priorities which reflect Westpac’s
immediate regulatory and compliance needs, responding to the more challenging operating environment and actions to improve
Westpac’s performance focus. These priorities also reaffirm the Group’s customer focus and its service orientation. The four
priorities are:
1. Customer Franchise – in the short term, support customers through the COVID-19 crisis. Longer term, grow the customer
base and deepen relationships through superior service;
2. Performance Discipline – simplify the portfolio and drive improved execution across the Group’s banking businesses;
3. Digital Transformation – build a common and upgraded technology platform, and migrate more activity to digital; and
4. Risk Management – build a stronger risk culture driven from the first line. Implement recommendations of the Group’s
Culture, Governance and Accountability (CGA) self-assessment and the Royal Commission and respond to AUSTRAC
matters, including implementing the response plan.
Financial performance summary
With this backdrop, cash earnings for First Half 2020 were $993 million, down $2,560 million or 72% on Second Half 2019 and
$2,303 million lower (or 70%) than First Half 2019. The result was significantly affected by higher impairment charges along
with AUSTRAC related costs and other notable items. The notable items help to explain Westpac’s performance and include
estimated customer refunds, payments, associated costs and litigation and are explained later in this overview with more
information in Sections 1.3.2 and Section 4.7, Note 14.
The cash earnings impact of notable items was $1,285 million in First Half 2020 (compared to $377 million in Second Half
2019 and $753 million in First Half 2019). Excluding notable items, cash earnings were $2,278 million, down $1,652 million or
42% over Second Half 2019 and down 44% compared to First Half 2019 with most of that decline due to the significant increase
in impairment charges. Earnings excluding notable items are summarised later in this overview.
Review of Group operations

152020 Interim Financial Results
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2
3
4
5
6
7
Net interest income was 1% higher over the prior half with a 1% increase in average interest earning assets and flat net interest
margins. Balance sheet growth was relatively modest for most of First Half 2020 although a flight to quality and higher demand
for liquidity saw loans and customer deposits end First Half 2020 up 1% and 4% respectively.
The decline in non-interest income in First Half 2020 of 16% was mostly due to higher insurance claims from severe storms
and bushfires while wealth income was also lower. Expenses were higher, up 23% over the prior half, with most of the increase
due to AUSTRAC related costs. Excluding this and other notable items, expenses were 3% higher reflecting increased risk and
compliance costs, some asset write-downs and higher software amortisation.
Asset quality metrics were sound over First Half 2020 with impaired exposures to gross loans of 30 basis points at
31 March 2020 compared to 25 basis points at 30 September 2019. Stressed exposures to total committed exposures ended
the half at 1.32% compared to 1.20% at 30 September 2019. Given the effects of COVID-19 only began to escalate in March,
these metrics do not reflect the more difficult position beginning to emerge across the economy and its impact on customers.
While there was a small rise in stressed exposures at March 2020, a significant change in the economic and industry outlook
related to the COVID-19 pandemic has led to impairment charges of $2,238 million in First Half 2020, up $1,777 million over the
prior half and up $1,905 million over the prior corresponding period. Assessing the likely impact of the COVID-19 outbreak was
the main contributor to the increased impairment charges in First Half 2020.
The increase in impairment charges lifted impairment provisions and provision coverage ratios with the ratio of collectively
assessed provisions to credit risk weighted assets of 1.40% at 31 March 2020 up from 0.95% at 30 September 2019.
The lower cash earnings, combined with capital raised in the half, translated to a decline in return and per share metrics. The
cash earnings return on equity was 2.9% in First Half 2020 down from 11.1% in Second Half 2019. Cash earnings per ordinary
share were 27.7 cents in First Half 2020, down around 73% over both the prior half and prior corresponding period. Excluding
notable items, cash earnings per share were 63.6 cents.
Cash earnings were lower across all divisions with a decline in core earnings and higher impairment charges across the Group.
Reviewing movements on the prior corresponding period, in First Half 2020 cash earnings were 70% lower than First Half 2019.
Excluding notable items, First Half 2020 cash earnings were 44% lower than First Half 2019. Most of this decline was from the
increase in impairment charges and higher notable items.
On capital, Westpac completed an institutional share placement and a retail share purchase plan in the half, raising $2.8 billion.
These lifted capital levels and contributed to a 3.5% increase in shares on issue.
As a result, the Group reported a common equity tier 1 (CET1) capital ratio of 10.8% at 31 March 2020 compared to 10.7% at
30 September 2019 and 10.6% at 31 March 2019. The higher capital ratio was achieved while absorbing higher risk weighted
assets (RWA) from an additional $500 million operational risk capital overlay from APRA associated with the AUSTRAC
matter, and payment of the final 2019 dividend. Interest rate risk in the banking book RWA was also higher, including from a
$500 million capital overlay that will apply until a new IRRBB model is finalised and approved. Net tangible assets per share
were $15.43 at 31 March 2020 compared to $15.36 at 30 September 2019.
The Group’s funding and liquidity was strong over the half with liquidity ratios remaining comfortably above regulatory
minimums. Higher customer deposit growth relative to loan growth lifted the deposit to loan ratio to over 75% while the liquidity
coverage ratio (LCR) and the net stable funding ratio (NSFR) ended the half at 154% and 117% respectively.
Dividends
The Board has deferred the decision on determining an interim dividend and no dividend will be paid in June 2020. This was a
difficult decision given many retail shareholders rely on our dividends.
Westpac remains well provisioned and capitalised. Nevertheless, the Board recognises the uncertain economic and operating
conditions and how these may develop over the next six months. The Board also accepted APRA’s consistent guidance on
dividends and being prudent at this point in time. Westpac has kept APRA informed about its stress testing scenarios and capital
position. WBC has not received any concerns from APRA on the bank’s capital position. The Board will continue to review
dividend options over the course of this year.
Westpac will continue to assess opportunities to improve capital utilisation across the Group. The strategic review of Specialist
Businesses will also consider ways to further optimise capital. Refer to Significant Developments in the Directors’ Report
(Section 4.1) for information on Specialist Businesses.
Bank Levy
Despite the lower earnings, the Government’s Bank Levy cost $196 million in First Half 2020, similar to the $198 million in
Second Half 2019. The Bank Levy in First Half 2020 was equal to 20% of cash earnings and is equivalent to 4 cents per share
and is included in net interest income where it reduced net interest margin by 5 basis points. In aggregate, taxes paid along with
the Bank Levy give Westpac an adjusted effective tax rate of 50.8%.
Review of Group operations

162020 Interim Financial Results
AUSTRAC Civil Proceedings
On 20 November 2019, AUSTRAC launched civil proceedings against Westpac in the Federal Court of Australia, lodging a
Statement of Claim with the Court. Westpac had previously disclosed that it had self-reported to AUSTRAC a failure to report
a large number of international funds transfer instructions (IFTIs) and that AUSTRAC was also investigating a number of other
areas relating to Westpac’s processes, procedures and monitoring.
Commencement of the civil proceedings has significantly impacted Westpac and has contributed to:
• The stepping down of the CEO, Brian Hartzer, and the appointment of Peter King as CEO;
• The Chairman Lindsay Maxsted bringing forward his retirement and the subsequent appointment of John McFarlane as
Westpac Chairman (from April 2020);
• Cancellation of the annual short-term incentives for the CEO and the Group Executives for Full Year 2020.
• The commencement of a detailed response plan to immediately lift the Group’s financial crime standards and protect people
from online child exploitation;
• A provision for a potential penalty of $900 million (not tax deductible) relating to AUSTRAC’s civil proceedings along with
additional costs associated with the response plan (earnings impact of $127 million after tax);
• Additional investigations by the corporate regulator (ASIC) and the prudential regulator (APRA), along with APRA imposing
an additional operational risk capital overlay equal to $500 million; and
• The launch of shareholder class actions in Australia and in the United States.
Since the civil proceedings were launched, Westpac has been in discussions and mediation with AUSTRAC seeking to agree
a Statement of Agreed Facts and Admissions along with a proposed penalty that could be put to the Court on a joint basis with
AUSTRAC.
At the case management hearing on 30 March 2020, the Court ordered that the parties file a Statement of Agreed Facts and
Admissions with the Court by 8 May 2020, and that Westpac file a Defence in relation to the remaining matters by 15 May 2020.
Westpac considered the available information and has made a provision of $900 million for a potential penalty in relation to
AUSTRAC’s 20 November 2019 Statement of Claim. The provision has been taken in circumstances where there remains
considerable uncertainty on the approach the Court might take in assessing the appropriate penalty and where there remains a
prospect that Westpac and AUSTRAC could agree a penalty which could be recommended to the Court on a joint basis (which
the Court would have regard to but not be obliged to accept).
The Court’s decision on the appropriate penalty will likely involve balancing many different competing and complex factors and
the exercise of discretion. Accordingly, the actual penalty paid by Westpac may be materially higher or lower than the current
provision. Further details on this provision can be found in Section 4.7, Note 14.
On 24 November 2019 Westpac announced a detailed response plan to the AUSTRAC proceedings. This response plan
included three elements and progress over the half included:
Response plan elementsProgress
Immediate fixes• Reported outstanding IFTIs to AUSTRAC.
• Closed relevant Australasian Cash Management and LitePay products.
Lifting our standards• Established a new Board Financial Crime Committee.
• Appointed Promontory to provide assurance over Westpac’s assessment of management
accountability in relation to the issues raised in the AUSTRAC proceedings and the
adequacy of Westpac’s Financial Crime Program.
• Established an independent Advisory Panel to review Board risk governance and Board
accountability in relation to the issues raised in the AUSTRAC proceedings.
• Updated transaction monitoring rules and implemented enhanced oversight of the
processes.
Protecting people• Investing to reduce human impact of financial crime, including partnerships with
International Justice Mission and Save the Children.
• Established the Safer Children, Safer Communities Roundtable to guide investments for a
program of work to support the prevention of online child exploitation.
Further details on the AUSTRAC matter can be found in Significant Developments and Risk Factors in the Directors’ Report
(Section 4.1) and in Section 4.7, Note 14.
Review of Group operations

172020 Interim Financial Results
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2
3
4
5
6
7
Enhancing Risk Management
Over recent years, the Group has conducted significant work to review its products and operations, improve the handling
of complaints, enhance culture, and strengthen risk processes and controls. This has included: ongoing product reviews,
assessing the quantum of known customer remediation, implementing recommendations from its culture governance and
accountability (CGA) self-assessment and the Royal Commission, exiting non-core activities, closing-out legacy regulatory and
compliance matters, and reshaping the way we identify and respond to complaints.
In First Half 2020, and following the AUSTRAC Statement of Claim, APRA requested that Westpac reassess its CGA
remediation plan to determine whether it is ‘fit for purpose’. The reassessment is underway and due to be completed by
30 June 2020. In parallel with the reassessment, Westpac is continuing to implement recommendations from its various
programs of work, including:
• Royal Commission: Of the 49 Royal Commission recommendations relevant to Westpac, 13 are implemented, 22 are being
implemented, and 14 are awaiting further regulatory clarity; and
• CGA self-assessment: Implementing the CGA remediation plan, with 67% of recommendations implemented for design
effectiveness as at 31 March 2020.
Customer remediation
Through its ‘get it right, put it right’ initiatives, products, processes and policies have continued to be reviewed to identify where
the Group may not have got it right for customers. Where problems have been identified, the Group has committed to fix them
and refund customers. These initiatives identified a number of issues that have required remediation. The Group booked an
after-tax cost of $258 million for provisions for estimated customer refunds and payments, associated costs and litigation in First
Half 2020.
The cost of major items in First Half 2020 related to:
• Provisions for estimated refunds to certain business customers who were provided with business loans where they should
have been provided with loans covered by the National Consumer Credit Protection Act and the National Credit Code;
• Provisions for estimated compensation to customers on the Group’s platforms who were not advised of certain corporate
actions. As these customers may have missed out on value associated with these actions a compensating payment is being
made; and
• Provisions for estimated refunds to some BT customers where certain wealth fees were inadequately disclosed.
Management of the Group’s key customer remediation programs have been centralised in the Group’s remediation hub and
over 600,000 customers have now received over $350 million in refunds.
Financial performance First Half 2020 – Second Half 2019
1
Cash earnings of $993 million, were down $2,560 million or 72% over Second Half 2019. The decline in cash earnings was
principally due to higher impairment charges and higher charges for notable items.
To help explain Westpac’s performance, certain major items in this result are described as ‘notable items’. These include:
• Provisions for estimated customer refunds and payments, associated costs, and litigation;
• Restructuring costs associated with the reset of Westpac’s wealth strategy in 2019;
• A provision for a potential penalty relating to AUSTRAC’s civil proceedings; and
• Costs associated with Westpac’s AUSTRAC response plan.
Throughout this Results Announcement, the term ‘notable items’ refers only to these items. Notable items are also discussed
further in Section 1.3.2 and Section 4.7, Note 14.
Notable items impact cash earnings, the major income statement line items and certain performance metrics. The following
tables present the quantum of these items and their impact on movements in the income statement (Table 1) and certain
performance metrics (Table 2) over the last three halves.
1. Unless otherwise stated.
Review of Group operations

182020 Interim Financial Results
Table 1. Cash earnings impact from notable items and impact on movements in key line items
Size of notable items ($m)
Growth
Mar 20 - Sep 19 (%)
Half YearHalf Year
As reported
Ex notable
items$m
March
2020
Sept
2019
Net interest income(106)(132) 1 1
Non-interest income(131)(220)(16)(18)
Operating expenses(1,190)(187) 23 3
Core earnings(1,427)(539)(25)(8)
Impairment charges- - largelarge
Income tax expense 142 162 (39)(36)
Cash earnings
(1,285)(377)(72) (42)
Size of notable items ($m)
Growth
Mar 20 - Mar 19 (%)
Half YearHalf Year
As reported
Ex notable
items$m
March
2020
March
2019
Net interest income(106)(212) 3 2
Non-interest income(131)(600)(2)(22)
Operating expenses(1,190)(274) 22 4
Core earnings(1,427)(1,086)(17)(9)
Impairment charges- - largelarge
Income tax expense 142 333 (34)(38)
Cash earnings
(1,285)(753)(70) (44)
Table 2. Certain cash earnings performance metrics including and excluding notable items
Half Year March 2020Half Year Sept 2019Half Year March 2019
%
Cash
earnings
Cash
earnings
ex notable
items
Cash
earnings
Cash
earnings
ex notable
items
Cash
earnings
Cash
earnings
ex notable
items
Return on equity 2.94% 6.74% 11.06% 12.23% 10.43% 12.82%
Net interest margin 2.13% 2.16% 2.13% 2.16% 2.12% 2.17%
Expense to income ratio 59.57% 46.98% 47.29% 44.05% 49.90% 43.67%
Cash earnings in First Half 2020, excluding notable items, were $2,278 million, down $1,652 million or 42% over
Second Half 2019. The decline was principally due to higher impairment charges and lower wealth and insurance income.
Net interest income increased $102 million (up 1%) over the prior half, with the increase due to 1% increase in average interest
earning assets and flat interest margins. Notable items had little impact on movements in net interest income.
Lending was up 1% with a higher contribution from New Zealand and other overseas lending partially offset by a decline in
Australian lending. Growth in New Zealand was evenly spread across mortgages and business lending and its contribution
was further supported by a weaker A$ relative to the NZ$. In Australia, mortgage lending declined due to lower new lending
and elevated repayments while all other consumer lending (cards, personal loans and auto lending) also ended the half down.
Business lending was higher, particularly from corporates drawing down on their facilities late in First Half 2020 to build liquidity.
Customer deposits were up 4% over the half (up $19 billion), more than funding loan growth (up $4.9 billion) and, as a result,
the customer deposit to loan ratio increased by over 2 percentage point to 75.6%. Most of the growth in customer deposits
occurred towards the end of First Half 2020 as government and corporate customers sought to hold additional liquidity in bank
deposits. The weaker A$ also contributed to the increase.
Net interest margins were flat over the half although were down 3 basis points excluding Treasury and Markets income. The
decline was principally due to the impact of lower interest rates on deposit spreads, capital and liquidity. Competition for new
lending and retention negatively impacted margins through the half, particularly mortgages. These declines were partially offset
by the impact of pricing changes late in Second Half 2019 and lower short-term funding costs.
Non-interest income was 16% lower than Second Half 2019 and excluding notable items was 18% lower or $402 million.
The decline was mainly due to higher insurance claims (mostly from bushfires and severe storms across eastern Australia), a
write-down on deferred acquisition costs (DAC) from changes to the provision of group life insurance to BT Super, along with
lower margins on investment platforms. Markets non-interest income was also lower, mostly due to a $40 million increase in the
derivative valuation adjustment charge.
Review of Group operations

192020 Interim Financial Results
1
2
3
4
5
6
7
Expenses increased 23% mostly from higher notable items related to AUSTRAC matters. Excluding this and other notable
items, expenses were 3% higher with an increase in regulatory and compliance related spending, and a write-down of certain
assets, including capitalised software. Ordinary expenses increased $167 million over the half more than offset by $188 million
in productivity savings, including a further reduction of 31 branches and the full period impact from the reset of the Group’s
wealth business.
Asset quality was sound at 31 March 2020, although most asset quality metrics experienced some deterioration later in the half.
That deterioration reflected higher new impaired exposures and increased customer hardship following the bushfires and severe
storms experienced through summer. It also reflects a reallocation of resources to work on assessing COVID-19 hardship
applications rather than managing existing delinquencies.
Mortgage 90+ day delinquencies were up 5 basis points over the half while 30+ day mortgage delinquencies were
23 basis points higher. In both instances, the rise largely occurred in March 2020. The Group has also seen a significant rise in
mortgage hardship which increased by over 50%. Other consumer 90+ day delinquencies were also higher, up 25 basis points
over the half. The full impact of COVID-19 is expected to emerge in future periods.
As part of the industry-wide response to COVID-19, the Group has seen many consumers and small businesses apply for
principal and interest deferrals. Customers approved for these deferrals will not be recorded in traditional stress metrics while
part of these packages but will nevertheless be monitored closely, particularly once the deferral period ends.
Reflecting the trends in asset quality, along with a deterioration in the economic and industry outlook, impairment charges were
materially higher over the half, up $1,777 million. In aggregate, COVID-19 related impairment charges were $1,581 million.
The increase in impairment charges has seen a lift in provision coverage with the ratio of collectively assessed provisions to
credit risk weighted assets of 1.40% at 31 March 2020 up from 0.95% at 30 September 2019.
Westpac’s tax rate was 48.8% for First Half 2020 well above Australia’s corporate tax rate of 30%. Excluding the impact of the
non-deductible AUSTRAC penalty provision the effective tax rate would have been 33.4%.
Financial performance summary First Half 2020 – First Half 2019
Cash earnings of $993 million, was down $2,303 million or 70% over First Half 2019. The decline was principally due to higher
impairment charges and higher expenses related to the AUSTRAC response plan. Excluding notable items, cash earnings of
$2,278 million were $1,771 million lower.
Net interest income was 3% higher than the prior corresponding half, principally due to lower notable items and higher average
interest earning assets. Excluding notable items, net interest income was 2% higher. Total lending was 1% higher over the year
(up $5 billion) with a $6 billion contribution from NZ lending and a $1.7 billion contribution from offshore lending (mostly FX
related). The increase was partially offset by lower Australian lending (down $2.5 billion). The decline in Australian lending was
due to lower consumer lending and higher provisions, partially offset by increased corporate loan balances. Customer deposits
were higher over the year with strong growth in late March 2020 as customers increased liquidity in response to COVID-19.
Net interest margins were higher over the year from lower notable items. Excluding notable items, the margin excluding
Treasury and Markets was down 5 basis points. Lower interest rates and strong competition were behind the decline.
Non-interest income was lower over the year, down 22% excluding notable items. The fall was due to lower insurance income
from higher claims and a DAC write-down, lower advice income, a decline in card fees, lower syndication activity and a higher
derivative valuation adjustment charge. Asset sales were also lower.
Expenses were much higher, up 22% from higher notable items. Excluding notable items and expenses were up 4%. The rise
was due to higher regulatory and compliance spending and an increase in software amortisation. Ordinary expenses increased
$144 million over the half partially offset by $188 million in productivity savings.
Asset quality deteriorated modestly over the half from the weaker operating environment and from bushfires and severe weather
events. The COVID-19 outbreak only had a small impact on asset quality metrics in First Half 2020.
Impairment charges were significantly higher, up $1,905 million to $2,238 million reflecting the rise in stress and the COVID-19
related provisions.
Review of Group operations

202020 Interim Financial Results
Divisional performance summary
The performance of each division is based on First Half 2020 compared to Second Half 2019 and is discussed below.
Consumer
Cash earnings of $1,410 million were $313 million (or 18%) lower than Second Half 2019 from an increase in insurance claims
associated with bushfires and severe weather events, the write-down of certain assets (including a DAC write-down related to
group life insurance), and from higher impairment charges. Lending declined over the prior half, particularly in mortgages as
new flows slowed and run-off increased. Other personal lending also declined (6%) as customers sought to use other forms of
short-term finance. Interest margins were higher principally due to pricing changes late in 2019 although margins subsequently
eased through the half. Expenses were higher as the division invested more in both risk and compliance activities and from the
continued roll-out of the Group’s Customer Service Hub. Impairment charges were higher, mostly reflecting COVID-19 impacts.
Business
Cash earnings of $604 million were $518 million (or 46%) lower than Second Half 2019. Excluding notable items, cash earnings
were $538 million (or 43%) lower from higher impairment charges, lower net interest margins and a decline in wealth income.
Excluding notable items, net interest income was lower, from a 2% decline in loans (across most forms of lending) and a
4 basis point decline in margins. The decline in net interest margins was primarily due to lower spreads on deposits from lower
interest rates. Non-interest income was also down, mostly from lower fees on a range of wealth and super products. Expenses
excluding notable items increased $43 million from the write-down of certain assets, including some of the capitalised software
costs of Panorama. Technology expenses and regulatory and compliance costs were also higher, as were salaries although
these were largely offset by productivity initiatives implemented early in the period. Higher impairment charges mostly reflecting
COVID-19 impacts.
Westpac Institutional Bank
Cash earnings of $175 million were $295 million (or 63%) lower than Second Half 2019. The reduction was mostly from an
increase in impairment charges reflecting higher impaired exposures and changes in economic scenarios from the impact
of COVID-19. Lower net interest margins and higher expenses also contributed to the decline in cash earnings. Net interest
income declined by 6%, mostly from an 11 basis point decline in margins from reduced deposit spreads. Non-interest income
also fell, including from a $40 million increase in the charge for derivative valuation adjustments partially offset by higher
Markets income. Expenses were higher as the division invested in its financial crime capabilities.
Westpac New Zealand
Cash earnings of NZ$295 million were NZ$192 million (or 39%) lower than Second Half 2019. The decline was due to higher
impairment charges, lower non-interest income from further fee simplification initiatives and a 5% increase in expenses including
from higher risk, regulatory and compliance costs along with a rise in expenses associated with improving work arrangements.
Net interest income was little changed over the prior half with a 3% increase in lending (mostly mortgages and small business
lending) offset by a 3 basis point decline in margins, mostly from lower deposit spreads as interest rates eased. Impairment
charges were higher reflecting COVID-19 impacts.
Group Businesses
Group Businesses recorded a loss of $1,477 million in First Half 2020 compared to a $223 million loss in Second Half 2019.
This was mostly due to a $900 million (non-deductible) provision for a potential penalty related to the AUSTRAC proceedings
and a $470 million impairment charge related to COVID-19. These impacts were partly offset by higher Treasury income, lower
expenses related to the exit of the Advice business and lower restructuring expenses.
Review of Group operations

212020 Interim Financial Results
1
2
3
4
5
6
7
Review of Group operations
2.2 Review of earnings
2.2.1 Net interest income
1
Half YearHalf YearHalf Year% Mov’t
March
2020
Sept
2019
March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
Net interest Income ($m)
Net interest income excluding Treasury & Markets 8,155 8,210 8,081 (1) 1
Treasury net interest income
2
444 273 240 63 85
Markets net interest income 67 81 68 (17)(1)
Net interest income 8,666 8,564 8,389 1 3
Add back notable items 106 132 212 (20)(50)
Net interest income excluding notable items 8,772 8,696 8,601 1 2
Average interest earning assets ($m)
Loans 675,273 675,756 674,159 - -
Third party liquid assets
3
115,771 107,786 97,222 7 19
Other interest earning assets 21,927 19,623 23,279 12 (6)
Average interest earning assets 812,971 803,165 794,660 1 2
Net interest margin (%)
Group net interest margin 2.13% 2.13% 2.12%- 1 bps
Group net interest margin excluding Treasury & Markets
4
2.01% 2.04% 2.04%(3 bps)(3 bps)
Excluding notable items (%)
Group net interest margin 2.16% 2.16% 2.17%- (1 bps)
Group net interest margin excluding Treasury & Markets
4
2.04% 2.07% 2.09%(3 bps)(5 bps)
First Half 2020 – Second Half 2019
Net interest income increased $102 million or 1% compared to Second Half 2019. Key features include:
• A 1% increase in average interest earning assets primarily from New Zealand lending and higher holdings of third party
liquid assets, partially offset by a reduction in Australian mortgage balances;
• Group net interest margin was flat at 2.13%. Group net interest margin excluding Treasury and Markets, and notable items
decreased 3 basis points. The decline was primarily due to lower interest rates impacting customer deposit spreads and
income earned on capital, along with higher holdings of third party liquid assets. These were partially offset by pricing
changes on Australian variable rate mortgages. Refer to section 2.2.4 for further details on net interest margin; and
• Treasury and Markets net interest income increased $157 million or 44%, with higher Treasury revenue primarily driven by
positioning for interest rate changes, partially offset by lower markets net interest income.
First Half 2020 – First Half 2019
Net interest income increased $277 million or 3% compared to First Half 2019. Key features include:
• A 2% growth in average interest earning assets, primarily from New Zealand mortgages and higher holdings of third party
liquid assets, partially offset by lower institutional bank lending;
• Group net interest margin increased 1 basis point to 2.13%. Group net interest margin excluding Treasury and Markets, and
notable items decreased 5 basis points. The decline was primarily due to lower interest rates impacting customer deposit
spreads and income earned on capital, along with higher holdings of third party liquid assets. These were partially offset by
lower short term funding costs and pricing changes on Australian variable rate mortgages. Refer to section 2.2.4 for further
details on net interest margin; and
• The contribution from Treasury and Markets increased $203 million or 66%, with higher Treasury revenue primarily driven by
positioning for interest rate changes.
1. Refer to Section 4, Note 3 for reported results breakdown. Refer to Section 5, Note 3 for cash earnings results breakdown. As discussed in Section 1.3,
commentary is reflected on a cash earnings basis.
2. Treasury net interest income excludes capital benefit.
3. Refer Glossary for definition.
4 Calculated by dividing net interest income excluding Treasury and Markets by total average interest earning assets.
Review of Group operations

222020 Interim Financial Results
Review of Group operations
2.2.2 Loans
1
As atAs atAs at% Mov’t
$m
31 March
2020
30 Sept
2019
31 March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
Australia 616,328 619,564 618,811 (1)-
Housing 445,663 449,201 447,164 (1)-
Personal 19,854 21,247 22,463 (7)(12)
Business 155,322 152,360 152,424 2 2
Provisions(4,511)(3,244)(3,240) 39 39
New Zealand (A$) 85,176 78,428 79,000 9 8
New Zealand (NZ$) 87,425 84,626 82,470 3 6
Housing 53,411 51,504 49,584 4 8
Personal 1,652 1,844 1,937 (10)(15)
Business 32,867 31,599 31,308 4 5
Provisions(505)(321)(359) 57 41
Other overseas (A$) 18,174 16,778 16,486 8 10
Total loans 719,678 714,770 714,297 1 1
First Half 2020 – Second Half 2019
Total loans increased $4.9 billion or 1% compared to Second Half 2019. Excluding foreign currency translation impacts,
total loans decreased $1.0 billion.
Key features of total loan movement were:
• Australian housing loans decreased $3.5 billion or 1%. The reduction reflects higher run off, repayments, and lower new
lending. The mix of the portfolio changed with interest only balances reducing 13%, and now comprising 23% of the portfolio;
• Australian personal lending decreased $1.4 billion or 7% across cards, personal loans and auto lending. Demand for
unsecured lending continued to decline in First Half 2020 consistent with market declines;
• Australian business lending increased $3.0 billion or 2%. Growth was skewed towards the end of First Half 2020 primarily
from corporates drawing down on their facilities to build liquidity to meet working capital requirements in response to
COVID-19;
• Australian provision balances increased $1.3 billion or 39% during First Half 2020 reflecting changes in economic scenarios
and weightings used in AASB 9 provision models as a result of COVID-19; and
• New Zealand loans increased NZ$2.8 billion or 3%. Housing loans grew 4% primarily in fixed rate products, and business
lending increased 4%. This was partially offset by personal lending decreasing 10%. Provisions increased by 57% or
NZ$0.2 billion reflecting changes in economic scenarios and weightings used in AASB 9 provision models as a result of
COVID-19.
First Half 2020 – First Half 2019
Total loans increased $5.4 billion or 1% compared to First Half 2019. Excluding foreign currency translation impacts, total loans
increased $1.3 billion.
Key features of total loan growth were:
• Australian housing loans decreased $1.5 billion. The reduction reflects higher run off and repayments from lower interest
rates;
• Australian personal lending decreased $2.6 billion or 12%, across cards, personal loans and auto lending. Demand for
unsecured lending continued to decline in First Half 2020 consistent with market declines;
• Australian business lending increased $2.9 billion or 2%. Growth was skewed towards the end of First Half 2020 with
corporates drawing down on their facilities to build liquidity to meet working capital requirements in response to COVID-19;
• Australian provision balances increased $1.3 billion or 39% reflecting changes in economic scenarios and weightings used
in AASB 9 provision models as a result of COVID-19; and
• New Zealand lending increased NZ$5.0 billion or 6%. Housing loans grew 8% primarily in fixed rate products and business
lending increased 5%. This was partially offset by personal lending decreasing 15%. Provisions increased by 41% or
NZ$0.1 billion reflecting changes in economic scenarios and weightings used in AASB 9 provision models as a result of
COVID-19.
1. Spot loan balances.

232020 Interim Financial Results
1
2
3
4
5
6
7
Review of Group operations
2.2.3 Deposits and other borrowings
1,2
As atAs atAs at% Mov’t
$m
31 March
2020
30 Sept
2019
31 March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
Customer deposits
Australia 460,561 449,066 433,736 3 6
At call 274,071 247,161 222,733 11 23
Term 141,933 158,564 168,313 (10)(16)
Non-interest bearing 44,557 43,341 42,690 3 4
New Zealand (A$) 67,273 59,743 61,516 13 9
New Zealand (NZ$) 69,050 64,464 64,218 7 8
At call 26,504 24,053 24,520 10 8
Term 32,768 33,540 33,320 (2)(2)
Non-interest bearing 9,778 6,871 6,378 42 53
Other overseas (A$) 15,967 15,707 16,391 2 (3)
Total customer deposits 543,801 524,516 511,643 4 6
Certificates of deposit 39,119 38,731 43,364 1 (10)
Australia 21,029 26,259 31,123 (20)(32)
New Zealand (A$) 3,452 1,058 858 largelarge
Other overseas (A$) 14,638 11,414 11,383 28 29
Total deposits and other borrowings 582,920 563,247 555,007 3 5
First Half 2020 – Second Half 2019
Total customer deposits increased $19.3 billion or 4% compared to Second Half 2019. Excluding foreign currency translation
impacts, total customer deposits increased $14.0 billion.
Key features of total customer deposits growth were:
• Australian customer deposits increased $11.5 billion or 3% with growth skewed towards the end of First Half 2020. Higher
at call balances reflected government and corporate customers holding additional liquidity in response to COVID-19. The
deposit portfolio mix shifted from term deposits to at call deposits as customers preferred to stay more liquid with a lower
benefit from holding term deposits in a low rate environment. Non-interest bearing deposits were up 3% due to an increase
in mortgage offset balances; and
• New Zealand customer deposits increased NZ$4.6 billion or 7%, with growth in business transaction balances and
consumer online and savings balances. Growth was also skewed towards the end of First Half 2020 with corporate
customers holding additional liquidity in response to COVID-19. Non-interest bearing deposits were up NZ$2.9 billion
primarily from growth in consumer transaction deposits.
Certificates of deposit increased 1% with certificates of deposit issued in New Zealand and other overseas jurisdictions partially
offset by a reduction in Australian certificates of deposit.
First Half 2020 – First Half 2019
Total customer deposits increased $32.2 billion or 6% compared to First Half 2019. Excluding foreign currency translation
impacts, total customer deposits increased $28.0 billion.
Key features of total customer deposits growth were:
• Australian customer deposits increased $26.8 billion or 6%, with growth in savings and transaction deposits. The deposit
portfolio mix shifted from term deposits to at call deposits as customers preferred to stay more liquid with a lower benefit
from holding term deposits in a low rate environment. This also reflected government and corporate customers holding
additional liquidity in response to COVID-19. Non-interest bearing deposits were up 4% primarily from growth in mortgage
offset balances; and
• New Zealand customer deposits increased NZ$4.8 billion or 8%, with growth in business transaction accounts as customers
held additional liquidity in response to COVID-19. Non-interest bearing deposits increased primarily from growth in
consumer transaction deposits.
Certificates of deposit decreased $4.2 billion or 10% as the reduction in Australian certificates of deposit balances was partially
offset by an increase in certificates of deposit issued in New Zealand and other overseas jurisdictions.
1. Spot deposit balances.
2. Non-interest bearing relates to instruments which do not carry a rate of interest.

242020 Interim Financial Results
Review of Group operations
2.2.4 Net interest margin
Group net interest margin movement (%)
First Half 2020 – Second Half 2019
2H19
Notables
2H19 ex
notables
Short term
Wholesale
Funding
Loans
Customer
Deposits
Capital
&
other
Liquidity
1H20 ex
notables
Treasury
&
Markets
1H20Notables
2.13%
0.09%
2.04%
0.09%
0.12%
2.07%2.04%
3bps
(3bps)
2.16%
4bps
1bp
3bps
(5bps)
(1bp)
(2bps)
2.16%
0.12%
2.01%
2.13%
Group margin flat
Excluding Treasury & Markets and notable items down 3bps
Treasury & Markets
Group Margin ex Treasury & Markets
First Half 2020 – Second Half 2019
First Half 2020 Group net interest margin of 2.13% was flat from Second Half 2019.
• Group net interest margin excluding Treasury and Markets and notable items decreased 3 basis points to 2.04% with key
features including:
–4 basis point increase from loan spreads following pricing changes to Australian variable loans and the impact of fixed
rate mortgage maturities switching to variable products with higher spreads. This was partially offset by lower new
lending spreads, competition and changes in the mix of the mortgage portfolio with customers continuing to switch from
interest only lending to principal and interest facilities;
–5 basis point decrease from lower customer deposit spreads primarily due to the impact of lower interest rates;
–1 basis point increase from lower short term wholesale funding costs;
–1 basis point decrease in capital and other due to lower returns on hedged capital balances; and
–2 basis point decrease from higher holdings of third party liquid assets.
• The contribution from Treasury and Markets increased 3 basis points on Second Half 2019 driven by positioning for interest
rate changes.

252020 Interim Financial Results
1
2
3
4
5
6
7
Review of Group operations
Group net interest margin movement (%)
First Half 2020 – First Half 2019
1H19
Notables
1H19 ex
notables
Short term
Wholesale
Funding
LoansCustomer
Deposits
Capital
&
other
Liquidity
1H20 ex
notables
Treasury
&
Markets
1H20Notables
2.12%
0.08%
2.04%
0.08%
0.12%
2.09%2.04%
5bps
(3bps)
2.17%
5bps
6bps
4bps
(11bps)
(2bps)
(3bps)
2.16%
0.12%
2.01%
2.13%
Group margin up 1bp
Excluding Treasury & Markets and notable items down 5bps
Treasury & Markets
Group Margin ex Treasury & Markets
First Half 2020 – First Half 2019
Group net interest margin of 2.13% increased 1 basis point from First Half 2019, with lower notable items improving margin by
2 basis points.
• Group net interest margin excluding Treasury and Markets, and notable items decreased 5 basis points to 2.04% with key
features including:
–5 basis point increase from loan spreads following pricing changes to Australian variable loans and the impact of fixed
rate mortgage maturities switching to variable products with higher spreads. This was partially offset by competition and
changes in the mix of the mortgage portfolio with customers continuing to switch from interest only lending to principal
and interest facilities;
–11 basis point decrease from lower customer deposit spreads primarily due to the impact of lower interest rates;
–6 basis point increase from lower short term wholesale funding costs from the impact of the bank bill swap rate (BBSW)
reducing over First Half 2020;
–2 basis point decrease in capital and other was due to lower income earned on hedged capital balances; and
–3 basis point decrease from higher holdings of third party liquid assets.
• Treasury and Markets contribution increased 4 basis points on First Half 2019 driven by positioning for interest rate changes.

262020 Interim Financial Results
Review of Group operations
2.2.5 Non-interest income
1
Half YearHalf YearHalf Year% Mov’t
$m
March
2020
Sept
2019
March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
Net fee income 755 829 826 (9)(9)
Net wealth management and insurance income 481 700 323 (31) 49
Trading income 429 443 464 (3)(8)
Other income 10 16 101 (38)(90)
Total non-interest income 1,675 1,988 1,714 (16)(2)
Add back notable items 131 220 600 (40)(78)
Total non-interest income excluding notable items 1,806 2,208 2,314 (18)(22)
First Half 2020 – Second Half 2019
Non-interest income decreased $313 million or 16% compared to Second Half 2019. Notable items were $89 million lower
over the half and, excluding this impact, non-interest income was down $402 million or 18%. This decline was primarily due to
lower net wealth management and insurance income (down $337 million) following an increase in general insurance claims
associated with bushfires and severe weather events, the write-off of deferred acquisition costs (DAC) from changes to the
provision of group life insurance, and lower margins on investment platforms. Trading income was also lower, primarily due to a
$40 million rise in derivative valuation adjustment charges.
Net fee income
Net fee income decreased $74 million or 9% compared to Second Half 2019. This included a net increase in notable items
of $29 million primarily related to financial planning. Excluding notable items, net fee income decreased $45 million or 5%,
primarily due to lower cards income (down $36 million) due to lower international volumes and lower net interchange income.
Net wealth management and insurance income
Net wealth management and insurance income decreased $219 million or 31% compared to Second Half 2019. This included
a net decrease in notable items of $118 million primarily related to financial planning. Excluding notable items, net wealth
management and insurance income decreased $337 million or 42%, due to:
• Lower general insurance income (down $150 million) primarily due to higher claims associated with bushfires and severe
weather events;
• Lower life insurance income (down $79 million) primarily due the write-off of deferred acquisition costs (DAC) from changes
to the provision of group life insurance;
• Lower Platforms and Superannuation income (down $38 million) reflecting margin compression from platform pricing
changes, product migration to lower margin products and the full period impact of changes linked to Protecting Your Super
legislation. Platform revenue was down from lower interest rates on cash duration managed balances; and
• Lower earnings on capital (down $39 million) reflecting market movements.
Trading income
Trading income decreased $14 million or 3% compared to Second Half 2019, primarily driven by the derivative valuation
adjustment from a widening in credit spreads (down $40 million), partially offset by higher non-customer markets income across
FX and commodities. Refer to Section 2.2.7 for further detail on Markets related income.
Other income
Other income decreased $6 million compared to Second Half 2019 from lower asset sales in the First Half 2020.
1. Refer to Section 4, Note 4 for reported results breakdown. Refer to Section 5, Note 4 for cash earnings results breakdown. As discussed in Section 1.3,
commentary is on a cash earnings basis.
Review of Group operations

272020 Interim Financial Results
1
2
3
4
5
6
7
Review of Group operations
First Half 2020 – First Half 2019
Non-interest income decreased $39 million or 2% compared to First Half 2019. Notable items were $469 million lower over the
half and, excluding this impact, non-interest income was down $508 million or 22%. This decline was primarily due to lower net
wealth management and insurance income (down $293 million) following an increase in general insurance claims associated
with bushfires and severe weather events, the write-off of deferred acquisition costs (DAC) from changes to the provision of
group life insurance and lower margins on investment platforms, and lower gains on investments and asset sales compared to
First Half 2019.
Net fee income
Net fee income decreased $71 million or 9% compared to First Half 2019, including an $18 million net decrease in notable items
primarily related to financial planning. Excluding notable items, net fee income reduced $89 million or 9% primarily due to:
• Lower cards income (down $51 million) primarily due to lower revenue associated with rewards programs and reduced net
interchange income;
• Lower syndication fees (down $25 million) due to lower customer activity; and
• Lower advice revenue following the exit of financial planning in Second Half 2019 (down $31 million).
Net wealth management and insurance income
Net wealth management and insurance income increased $158 million or 49% compared to First Half 2019. This included
a net decrease in notable items of $451 million primarily related to financial planning. Excluding notable items, net wealth
management and insurance income decreased $293 million or 39%, due to:
• Lower general insurance income (down $60 million) primarily due to higher claims associated with bushfires and severe
weather events;
• Life insurance income (down $131 million) primarily due to the write-off of DAC from changes to the provision of group life
insurance;
• Lower platforms and superannuation income (down $40 million) reflecting margin compression from platform pricing
changes, product migration to lower margin products, the full period impact of changes linked to Protecting Your Super
legislation and lower platform revenue from lower interest rates on cash duration managed balance; and
• Lower earnings on capital (down $43 million) reflecting market movements.
Trading income
Trading income decreased $35 million or 8% compared to First Half 2019, primarily driven by a derivative valuation adjustment
from a widening in credit spreads (down $82 million), partially offset by higher non-customer markets income across FX and
commodities. Refer to Section 2.2.7 for further detail on markets related income.
Other income
Other income was down $91 million or 90% compared to First Half 2019, primarily due higher gains on asset sales and
revaluations of fintech investments in First Half 2019.
2.2.6 Group funds
As atAs at% Mov’tAs at% Mov’t
$bn
31 March
2020InflowsOutflows
Net
flows
Other
Mov’t
30 Sept
2019
Mar 20 -
Sept 19
31 March
2019
Mar 20 -
Mar 19
Superannuation 35.3 2.0 (2.2)(0.2)(5.1) 40.6 (13) 38.9 (9)
Platforms 109.0 15.1 (15.9)(0.8)(16.7) 126.5 (14) 120.8 (10)
Packaged Funds 38.8 4.7 (3.8) 0.9 (5.7) 43.6 (11) 39.8 (3)
Other 2.8 - - - (1.9) 4.7 (40) 3.6 (22)
Total Australia funds 185.9 21.8 (21.9)(0.1)(29.4) 215.4 (14) 203.1 (8)
Total NZ funds (A$) 10.6 1.7 (1.7)- (0.1) 10.7 (1) 10.4 2
Total Group funds 196.5 23.5 (23.6)(0.1)(29.5) 226.1 (13) 213.5 (8)
Total NZ funds (NZ$) 10.9 1.8 (1.8)- (0.6) 11.5 (5) 10.9 -

282020 Interim Financial Results
Review of Group operations
2.2.7 Markets related income
1
Half YearHalf YearHalf Year% Mov’t
$m
March
2020
Sept
2019
March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
Net interest income 67 81 68 (17)(1)
Non-interest income 434 435 486 - (11)
Total Markets income 501 516 554 (3)(10)
Customer income 420 455 438 (8)(4)
Non-customer income 174 114 127 53 37
Derivatives valuation adjustments(93)(53)(11) 75 large
Total Markets income 501 516 554 (3)(10)
Markets income comprises sales and risk management revenue derived from the creation, pricing and distribution of risk
management products to the Group’s consumer, business, corporate and institutional customers. Dedicated relationship
specialists provide product solutions to these customers to help manage their interest rate, foreign exchange, commodity, credit
and structured products risk exposures.
First Half 2020 – Second Half 2019
Total markets income decreased by $15 million, or 3%, compared to Second Half 2019 primarily due to a $40 million higher
charge on derivative valuation adjustments due to a widening in credit spreads.
Customer income decreased 8% in the First Half 2020 from lower fixed income sales.
Non-customer income increased 53% due to higher foreign exchange and commodities income, partly offset by a lower fixed
income trading result.
First Half 2020 – First Half 2019
Total markets income reduced $53 million, or 10%, compared to First Half 2019, primarily due to a $82 million higher charge on
derivative valuation adjustments, partly offset by higher non-customer income.
Customer income was down 4% due to lower fixed income sales, with foreign exchange sales little changed.
Non-customer income rose $47 million compared to First Half 2019, reflecting an increase in foreign exchange and commodities
trading income.
Markets Value at Risk (VaR)
2
$mAverageHighLow
Half Year March 2020 7.0 33.4 3.3
Half Year September 2019 9.0 43.0 3.3
Half Year March 2019 9.6 17.5 6.3
The Components of Markets VaR are as follows:
AverageHalf YearHalf YearHalf Year
$m
March
2020
Sept
2019
March
2019
Interest rate risk 4.0 2.8 3.2
Foreign exchange risk 1.4 1.5 2.0
Equity risk 0.1 0.1 -
Commodity risk
3
2.2 8.2 8.1
Credit and other market risks
4
5.1 2.3 2.8
Diversification benefit(5.8)(5.9)(6.5)
Net market risk 7.0 9.0 9.6
1. Markets income includes WIB Markets, Business division, Consumer division and Westpac New Zealand markets.
2. The daily VaR presented above reflects a WIB divisional view of VaR. It varies from presentations of VaR in Westpac’s 2019 Annual Report and
Australian Prudential Standard (APS) 330 Prudential Disclosure under Basel III where market risk disclosures are segregated into trading and banking
book. VaR measures the potential for loss using a history of price volatility.
3. Includes electricity risk.
4. Includes pre-payment risk and credit spread risk (exposures to generic credit rating bonds).

292020 Interim Financial Results
1
2
3
4
5
6
7
Review of Group operations
2.2.8 Operating expenses
1
Half YearHalf YearHalf Year
% Mov’t
$m
March
2020
Sept
2019
March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
Staff expenses(2,444)(2,393)(2,624) 2 (7)
Occupancy expenses(493)(472)(497) 4 (1)
Technology expenses(1,277)(1,180)(1,139) 8 12
Other expenses(1,946)(945)(781) 106 149
Total operating expenses(6,160)(4,990)(5,041) 23 22
Add back notable items 1,190 187 274 largelarge
Total operating expenses excluding notable items(4,970)(4,803)(4,767) 3 4
First Half 2020 – Second Half 2019
Operating expenses increased $1,170 million or 23% compared to Second Half 2019. Excluding notable items ($1,003 million
higher), operating expenses were up $167 million or 3%. The increase was mostly due to capitalised software and physical
asset write-downs of $99 million and higher regulatory and compliance spend. Excluding these, expenses were down 1% with
benefits from productivity initiatives and the exit of the Advice business more than offsetting operating cost growth.
Staff expenses increased $51 million or 2% during First Half 2020. The increase was primarily due to annual salary increases
effective from January 2020. This was partly offset by a 1% decrease in average FTE from productivity initiatives and exit of the
Advice business.
Occupancy expenses increased $21 million or 4% compared to Second Half 2019, primarily due to write-downs of physical
assets and annual rental increases partly offset by productivity benefits from lower branch numbers (down 31).
Technology expenses increased $97 million or 8% compared to Second Half 2019. Excluding notable items ($12 million lower),
technology expenses increased $109 million or 9% from capitalised software write-downs and full half amortisation impact of the
Customer Service Hub launching in Second Half 2019.
Other expenses increased $1,001 million or 106% compared to Second Half 2019. Excluding notable items ($1,014 million
higher), other expenses decreased $13 million or 2%.
First Half 2020 – First Half 2019
Operating expenses increased $1,119 million or 22% compared to First Half 2019. Excluding notable items ($916 million
higher), operating expenses increased $203 million or 4% due to asset write-downs of $99 million, higher amortisation and
increased regulatory and compliance spend. Benefits from productivity initiatives and the exit of the Advice business more than
offset operating cost growth.
Staff expenses decreased $180 million or 7% compared to First Half 2019. Excluding notable items ($147 million lower), staff
expenses decreased $33 million or 1%. This was primarily due to a 3% decrease in average FTE from productivity initiatives
and exit of the Advice business, partly offset by annual salary increases.
Occupancy expenses decreased $4 million or 1% compared to First Half 2019, primarily due to lower branch numbers
(down 54) partially offset by write-downs of physical assets and annual rental increases.
Technology expenses increased $138 million or 12%. Excluding notable items ($17 million lower), technology expenses
increased $155 million or 14% largely due to capitalised software write-downs and amortisation of software assets as key
platforms became operational, including the Customer Service Hub and New Payments Platform.
Other expenses increased $1,165 million or 149%. Excluding notable items ($1,080 million higher), other expenses increased
$85 million or 12% from increased professional services costs.
1. Refer to Section 4, Note 5 for reported results breakdown. Refer to Section 5, Note 5 for cash earnings breakdown. As discussed in Section 1.3,
commentary is on a cash earnings basis.
Review of Group operations

302020 Interim Financial Results
Review of Group operations
Full Time Equivalent (FTE) employees
As atAs atAs at% Mov’t
Number of FTE
31 March
2020
30 Sept
2019
31 March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
Permanent employees 30,913 30,326 31,007 2 -
Temporary employees 3,286 2,962 3,234 11 2
FTE 34,199 33,288 34,241 3 -
Average FTE
1
33,433 33,648 34,344 (1)(3)
First Half 2020 – Second Half 2019
Spot FTE increased by 911 or 3% compared to Second Half 2019, mainly due to increased regulatory, risk, compliance and
remediation personnel, increased customer activity and the decision to insource Customer Care capabilities from external
partners, partially offset by productivity initiatives across the Group.
First Half 2020 – First Half 2019
Spot FTE was slightly lower compared to First Half 2019, mainly due to productivity initiatives across the Group which more than
offset increased regulatory, risk compliance and remediation personnel, increased customer activity and the decision to insource
Customer Care capabilities from external partners.
Investment spend
Half YearHalf YearHalf Year% Mov’t
$m
March
2020
Sept
2019
March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
Expensed 296 277 331 7 (11)
Capitalised software and fixed assets 432 506 392 (15) 10
Total 728 783 723 (7) 1
Growth and productivity 296 383 401 (23)(26)
Regulatory change 336 308 195 9 72
Other technology 96 92 127 4 (24)
Total 728 783 723 (7) 1
The Group invested $728 million in First Half 2020, with 41% directed to growth and productivity initiatives, 46% to regulatory
change, and 13% to other technology programs.
The 7% decline in investment spend in First Half 2020 compared to Second Half 2019 is consistent with the normal pattern of
annual investment and December annual leave where spending is typically lower in the first half of the year. Spending reflects
the completion of some major projects early First Half 2020 partially offset by higher investment in regulatory and compliance
frameworks (9% higher compared to Second Half 2019), particularly around financial crime.
Compared to the prior corresponding period, investment spend was 1% higher, mainly due to higher regulatory change
investment which was up 72%.
Across major investment categories the following progress was achieved in First Half 2020:
Regulatory Change
• Enhanced financial crime risk management capability including system upgrades, automation of exception reporting,
enhanced alert and case management capabilities and improved data quality and controls;
• Updated systems and processes to meet new regulatory obligations including: The Banking Code of Practice,
comprehensive credit reporting, open banking, Protecting Your Super legislation and APRA’s economics and financial
statistics reporting; and
• Delivered new and updated APRA Prudential Standards reporting (including APS221).
1. Averages are based on a six month period.

312020 Interim Financial Results
1
2
3
4
5
6
7
Review of Group operations
Productivity and Growth
• Platform Modernisation
– Customer Service Hub is a major program creating a multi-brand operating system. The system will provide a major
improvement in functionality and productivity and create a better experience for both customers and bankers. The
system went live for mortgages in 2019 and the rollout to Westpac home finance managers was also completed in 2019.
In First Half 2020 work continued to enable regional brands and broker home loan applications to be originated, this will
be enabled later in 2020;
– Unsecured Lending Platform launched in February 2020. This platform enables existing sole traders and single director
customers to apply for unsecured overdrafts and term lending facilities online via Westpac Live; and
– Significant upgrade of the Group’s PC and laptop operating system and infrastructure with Windows 10, Office 365, and
upgraded equipment. This upgrade supports a more mobile operating model with access to cloud-based collaboration
tools, improved security, the ability to share documents, faster and easier software and security updates and reduced
log-in times. This has significantly improved the Group’s work-from-home capability and has been highly effective in
supporting employees working from home during the COVID-19 restrictions.
• Digitising the company
The Group has continued to improve its digital capability, support customers to bank online, and to simplify and automate
back office processes. Key initiatives delivered have included:
– Launched Apple Pay for St.George, Bank of Melbourne and BankSA. Every purchase is authenticated by FaceID,
TouchID, or the device’s passcode. 150,000 customers have enrolled with more than 3 million purchases completed with
a value of $80 million;
– Increased the number of processes that can be performed online, including reviewing and accepting personal loan
contracts, disputing a card transaction, renewing farm management deposits, adding and updating ABN information and
COVID-19 Customer Support Package forms; and
– Improved a number of customer features while improving security such as: alerts when personal details are updated, if a
daily payment limit is changed, when a deposit or withdrawal is made and reminders when a credit card payment is due.
The Group also enabled a digital card allowing customers to use their new or replacement card to make purchases prior
to receiving their physical card.
Other technology
Major initiatives under this category included:
• Continued investment in protecting customers against cyber security risks, and data and privacy breaches;
• Ongoing strengthening of our core system resiliency with reduction in incidents and outages; and
• Significantly lifted the work from home capability of the Group, with over 22,000 employees working from home and the
capacity to double this.
Capitalised software
Half YearHalf YearHalf Year% Mov’t
$m
March
2020
Sept
2019
March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
Balance as at beginning of period 2,365 2,244 2,177 5 9
Total additions
1
430 511 395 (16) 9
Amortisation expense(393)(376)(318) 5 24
Impairment expense(75)(9)(16)largelarge
Foreign exchange translation 8 (5) 6 large 33
Balance as at end of period 2,335 2,365 2,244 (1) 4
Capitalised software balance as at 31 March 2020 was $2,335 million, a $30 million or 1% decrease compared to
Second Half 2019, and a $91 million or 4% increase compared to First Half 2019.
Compared to Second Half 2019, additions decreased by $81 million or 16%, from lower investment spend and a lower level of
capitalisation (59% compared to 65%). Compared to First Half 2019, additions increased $35 million or 9% due to a higher level
of capitalisation (59% compared to 54%).
Software amortisation expense increased $17 million (or 5%) compared to Second Half 2019 and $75 million (or 24%)
compared to First Half 2019, as major investments became operational.
COVID-19 has significantly impacted asset values globally and, as a result, the Group has revalued or reassessed the value of
certain assets. This review resulted in $66 million of capitalised software being written down.
In aggregate, the average amortisation period for our capitalised software assets is 2.9 years.
1. Includes capitalised borrowing costs and card scheme.

322020 Interim Financial Results
Review of Group operations
2.2.9 Impairment charges
Half YearHalf YearHalf Year% Mov’t
$m
March
2020
Sept
2019
March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
Individually assessed provisions (IAPs)
New IAPs(351)(170)(173) 106 103
Write-backs 70 69 79 1 (11)
Recoveries 100 101 71 (1) 41
Total IAPs, write-backs and recoveries(181)- (23)- large
Collectively assessed provisions (CAPs)
Write-offs(438)(535)(418)(18) 5
Impact of COVID-19(1,581)- - - -
Other changes in CAPs(38) 74 108 largelarge
Total new CAPs(2,057)(461)(310)largelarge
Total impairment charges(2,238)(461)(333)largelarge
Impairment charges have significantly increased to $2,238 million in First Half 2020, equal to 62 basis points of gross loans.
The increase in impairment charge was mostly due to the use of updated forward-looking economic inputs in the provisioning
calculation, increased weighting of the downside economic scenario, and increased overlay provisions from estimated impacts
of the pandemic, adding $1,581 million.
The following table indicates the weightings applied by the Group at 31 March 2020, 30 September 2019 and 31 March 2019:
Macroeconomic scenario weightings (%)
31 March 202030 Sept 201931 March 2019
Upside51010
Base5562.565
Downside4027.525
The increase in weighting to the downside scenario since 30 September 2019 is reflective of the significant risk regarding the
economic assumptions used in the base case. In particular, the current base case economic forecast indicates a relatively short
and sharp impact followed by a subsequent recovery.
First Half 2020 – Second Half 2019
Impairment charges for First Half 2020 were $2,238 million, up $1,777 million compared to Second Half 2019.
The provisions increase in First Half 2020 includes impacts of $1,581 million due to the COVID-19 pandemic which was a key
driver of the increase compared to Second Half 2019.
• Total new CAP changes were $1,596 million higher than Second Half 2019.
–CAP increases from the impact of COVID-19 were due to:
o $1,135 million increase in CAP due to changes in macroeconomic forward-looking outlook and scenario weightings
as a result of the COVID-19 pandemic;
o $446 million net increase in overlays primarily targeted on industries and consumers which will be most affected by
the economic shutdown;
–Other changes in CAPs were $112 million higher due to:
o other changes in the overlay of $61 million primarily related to the impact of the Australian bushfires and ongoing
Australian drought, compared to a $45 million reduction in Second Half 2019; and
o increases in CAP primarily from emerging stress in WIB and New Zealand.
–Write-offs were $97 million lower in First Half 2020 compared to Second Half 2019 as a result of seasonal impacts and
reduced balance sheet.
• Total IAPs, write-backs and recoveries were $181 million higher than Second Half 2019 principally due to:
–New IAPs were $181 million higher compared to Second Half 2019 driven by customer downgrades in Business Division
across a number of customers and three significant downgrades in the Institutional Bank overseas in manufacturing and
trade, and Westpac New Zealand in the manufacturing sector, that migrated to impaired from performing, watchlist and
substandard; and
–Write-backs and recoveries remaining flat compared to Second Half 2019.
First Half 2020 – First Half 2019
Impairment charges of $2,238 million were up $1,905 million compared to First Half 2019.
Total new CAP changes were $1,747 million higher due to a $1,727 million increase in CAPs and a $20 million increase in
write-offs principally in unsecured lending. $1,621m of the increase in other changes in CAPs was driven by updated economic
outlook, increased weighting of a downside economic scenario. Some underlying increase in CAPs has also been due to
increase in stressed exposures in WIB and Business divisions.
Total new IAPs, write-backs and recoveries were $158 million higher than First Half 2019. This was due to higher new IAPs
from three significant customer downgrades across trade and manufacturing, two customers in Institutional Bank and one in
New Zealand and higher recoveries in the Australian unsecured portfolio.
Review of Group operations

332020 Interim Financial Results
1
2
3
4
5
6
7
Review of Group operations
2.2.10 Income tax expense
First Half 2020 – Second Half 2019
The effective tax rate of 48.8% in First Half 2020 was significantly higher than the Second Half 2019 effective tax rate of 30.3%.
The effective tax rate is above the Australian corporate tax rate of 30%, with the key driver being the non-deductible provision
for the potential penalty relating to AUSTRAC civil proceedings.
First Half 2020 – First Half 2019
The effective tax rate of 48.8% in First Half 2020 was also significantly higher than the 30.2% in First Half 2019 due to the non-
deductible provision for the potential penalty relating to AUSTRAC civil proceedings.
2.2.11 Non-controlling interests
Non-controlling interests represent results of non-wholly owned subsidiaries attributable to shareholders other than Westpac.
These include profits attributable to the 10.1% shareholding in Westpac Bank-PNG-Limited and the 25% shareholding in
St.George Motor Finance Limited that are not owned by Westpac.
2.3 Credit quality
Prior to the onset of the pandemic the portfolio has been performing adequately with retail portfolios performing well and
institutional and business portfolios seeing modest increase in stressed exposures emerging from the low base seen in
recent years. Stressed exposures to TCE were 1.32%, 12 basis points higher than Second Half 2019 and 22 basis points
higher compared to First Half 2019. The 12 basis points rise in stressed exposures is driven by an increase in watchlist and
substandard (7 basis points) and both impaired loans and 90 days past due and not impaired (5 basis points). Emerging stress
is due to the impacts of the COVID-19 pandemic.
The increase in impaired loans saw the ratio of gross impaired exposures to gross loans 5 basis points higher at 0.30%
compared to Second Half 2019. At 31 March 2020, the ratio of gross impaired exposures provisions to gross impaired
exposures was 50.1% while the ratio of collectively assessed provisions to credit risk weighted assets increased to
140 basis points (a 45 basis points increase compared to Second Half 2019).
Provisioning levels increased by $1,867 million compared to Second Half 2019 driven by estimated impacts of the pandemic,
adding $1,581million and an increase in IAPs of $194 million.
The impact of the COVID-19 pandemic on the Australian economy and the Group remains uncertain. The severity of its impact
will depend on its spread and duration, customer responses, the capital markets reaction and the response of governments and
central banks.
The most severely impacted customers (across consumer, business and institutional) are expected to be in industries impacted
by social distancing, travel, supply chain disruption, and industries adjacent to these. High impacted industries include:
Hospitality (Pubs and Clubs, Cafes and Restaurants); Aviation and related infrastructure; Travel related industries; Retail Trade
(department stores, clothing and auto amongst others); Wholesale Trade; and Manufacturing.
The most significant second order impacts are on Commercial Real Estate due to reduced cash flows (through abatement,
refusal or default) and Construction (pause and or reduced investment).
Portfolio segments
The institutional segment has started to see modest increases in stressed exposures from the initial stages of the COVID-19
pandemic with stressed exposures to TCE at 1.18% increasing 50 basis points compared to Second Half 2019. We will continue
to monitor the portfolio for increases in stressed exposures as the management of the pandemic evolves.
The commercial property sector has continued to perform well, stress is 23 basis points higher at 31 March 2020 at 1.8%. This
has been trending slowly higher over recent periods. However, it is still well below the long-term average.
The small and medium business portfolio saw an increase in stressed exposures to TCE to 3.02% (an increase of
26 basis points compared to Second Half 2020). This was seen across several industries, largest being Retail Trade & Motor
Vehicle Retailers and Commercial Property.
The New Zealand business portfolio has seen stress increase principally from the exposure mentioned above, with gross
impaired exposures to TCE increasing 36 basis points to 0.59% compared to Second Half 2019.
Australian mortgage 90 days+ delinquencies increased 6 basis points compared to second half 2019 to 0.94% in
First Half 2020, following a significant increase in inbound call volumes for our Customer assist operations. Australian mortgage
hardship applications have increased from both the impact of the bushfires over the Australian summer and from early impacts
from customers requesting the pandemic package relief in March 2020. Properties in possessions (PIPs) decreased by
90 to 468 compared to Second Half 2019 driven by Qld (down 29) and WA (down 37), but NSW increased by 6 over the same
period. Against First Half 2019, PIPs decreased by 14 driven by WA (down 37) offset by NSW (increase 15) and SA (increase 9).
Realised mortgage losses were $67 million for First Half 2020, this compares to $59 million in Second Half 2019 and $52 million
in First Half 2019.
Other consumer 90+ day delinquencies were 25 basis points higher than Second Half 2019 at 1.94% and were 14 basis points
higher than First Half 2019. The contraction in the portfolio size contributed around 8 basis points of the rise. The largest
increase in 90+ day delinquencies was experienced in Personal Loans and Credit cards portfolios. The remaining growth in
other consumer delinquencies was related to the disruption to customer assist.
New Zealand other consumer loan 90 days + delinquencies increased 77 basis points to 1.59% compared to Second Half 2019
primarily due to balance sheet contraction and a change in the way delinquency is measured for customers who have been
granted hardship assistance.

342020 Interim Financial Results
Review of Group operations
Provisioning
Over the period provisions increased by $1,867 million compared to Second Half 2019 to $5,791 million where:
• CAPs on loans and credit commitments were $5,160 million at First Half 2020, $1,659 million higher compared to
Second Half 2019. The increase in provisions was mostly due to the updated forward-looking economic inputs in the
provisioning calculation, increased weighting of the downside economic scenario, and increased overlay provisions resulting
from estimated impacts of the COVID-19 pandemic, adding $1,581 million. Other changes in CAP of $78 million was from
the modest rise in stress.
• IAPs were $194 million higher at $606 million due to a rise in impaired exposures primarily due to three large customer
downgrades across trade and manufacturing, two customers in Institutional Bank and one in New Zealand, and offset by
higher recoveries in Australian unsecured portfolio.
2.3.1 Credit quality key metrics
As atAs atAs at
31 March
2020
30 Sept
2019
31 March
2019
Stressed exposures by credit grade as a % of TCE:
Impaired 0.20% 0.17% 0.17%
90 days past due and not impaired 0.50% 0.48% 0.43%
Watchlist and substandard 0.62% 0.55% 0.50%
Total stressed exposures 1.32% 1.20% 1.10%

Gross impaired exposures to TCE for business and institutional:
Business Australia 0.71% 0.61% 0.59%
Business New Zealand 0.59% 0.23% 0.41%
Institutional 0.08% 0.03% 0.05%

Mortgage 90+ day delinquencies:
Group 0.87% 0.82% 0.75%
Australia 0.94% 0.88% 0.82%
New Zealand 0.27% 0.13% 0.14%

Other consumer loans 90+ day delinquencies:
Group 1.94% 1.69% 1.80%
Australia 1.97% 1.77% 1.87%
New Zealand 1.59% 0.82% 1.02%

Other
1:
Gross impaired exposures to gross loans 0.30% 0.25% 0.24%
Gross impaired exposures provisions to gross impaired exposures 50.09% 44.92% 45.74%
Total provisions to gross loans 80 bps 54 bps 56 bps
Collectively assessed provisions to credit risk weighted assets 140 bps 95 bps 98 bps
Total provisions to credit risk weighted assets 157 bps 107 bps 110 bps
Impairment charges to average gross loans annualised 62 bps 13 bps 9 bps
Net write-offs to average loans annualised 12 bps 15 bps 12 bps
2.3.2 Movement in gross impaired exposures
Half YearHalf YearHalf Year% Mov’t
$m
March
2020
Sept
2019
March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
Balance as at beginning of period 1,763 1,749 1,416 1 25
New and increased - individually managed 897 550 519 63 73
Write-offs(537)(655)(499)(18) 8
Returned to performing or repaid(516)(447)(378) 15 37
Portfolio managed - new/increased/returned/repaid 572 565 701 1 (18)
Exchange rate and other adjustments(25) 1 (10)large 150
Balance as at end of period 2,154 1,763 1,749 22 23
1. Averages are based on a six month period.

352020 Interim Financial Results
1
2
3
4
5
6
7
Review of Group operations
2.4 Balance sheet and funding
2.4.1 Balance sheet
As atAs atAs at% Mov’t
$m
31 March
2020
30 Sept
2019
31 March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
Assets
Cash and balances with central banks 45,815 20,059 19,486 128 135
Collateral paid 5,339 5,930 6,103 (10)(13)
Trading securities and financial assets measured at fair value through income
statement (FVIS) and investment securities 112,069 105,182 97,843 7 15
Derivative financial instruments 56,661 29,859 21,765 90 160
Loans 719,678 714,770 714,297 1 1
Life insurance assets 2,574 9,367 9,374 (73)(73)
Other assets 25,526 21,459 22,194 19 15
Total assets 967,662 906,626 891,062 7 9
Liabilities
Collateral received 12,728 3,287 1,889 largelarge
Deposits and other borrowings 582,920 563,247 555,007 3 5
Other financial liabilities 33,996 29,215 29,013 16 17
Derivative financial instruments 48,089 29,096 23,384 65 106
Debt issues 185,835 181,457 188,759 2 (2)
Life insurance liabilities 604 7,377 7,503 (92)(92)
Loan capital 25,807 21,826 16,736 18 54
Other liabilities 10,037 5,614 4,836 79 108
Total liabilities 900,016 841,119 827,127 7 9
Equity
Total equity attributable to owners of WBC 67,590 65,454 63,884 3 6
Non-controlling interests 56 53 51 6 10
Total equity 67,646 65,507 63,935 3 6
First Half 2020 – Second Half 2019
The Group’s loan growth during First Half 2020 was subdued as Australian housing loans decreased $3.5 billion. With the onset
of COVID-19 deposits rose sharply in March 2020 with government and corporate customers holding additional liquidity. As a
result the Group’s holdings of liquid assets, particularly cash also increased, with the LCR rising from 127% in Second Half 2019
to 154% in First Half 2020.
Key movements during the half included:
Assets
• Cash and balances with central banks increased $25.8 billion or 128% reflecting higher liquid assets held in this form;
• Trading securities and financial assets measured at FVIS and investment securities increased $6.9 billion or 7% reflecting
higher balances held in this form;
• Derivative assets increased $26.8 billion or 90% mainly driven by movements in cross currency swaps and foreign currency
forward contracts;
• Loans increased $4.9 billion or 1%. Refer to Section 2.2.2 Loans for further information;
• Life insurance assets decreased $6.8 billion or 73% mainly due to transfers to non-consolidated funds in First Half 2020; and
• Other assets increased $4.1 billion or 19% mainly due to the adoption of AASB 16.

362020 Interim Financial Results
Review of Group operations
Liabilities
• Collateral received increased $9.4 billion primarily due to an increase in net collateralised derivative assets;
• Deposits and other borrowings increased $19.7 billion or 3%. Refer to Section 2.2.3 Deposits and other borrowings for
further information;
• Other financial liabilities increased $4.8 billion or 16% mainly driven by higher securities sold under agreements to
repurchase;
• Derivative liabilities increased $19.0 billion or 65% driven by movements in cross currency swaps and foreign currency
forward contracts;
• Debt issues increased $4.4 billion or 2% ($8.1 billion or 4% decrease excluding foreign currency impacts). Refer to
Section 2.4.2 Funding and liquidity risk management for further information;
• Life insurance liabilities decreased $6.8 billion or 92% mainly due to transfers to non-consolidated funds in First Half 2020;
• Loan capital increased $4.0 billion or 18% mainly due to the issuance of US$1.5 billion Tier 2 capital instruments and foreign
currency translation and fair value hedging impacts of $2.0 billion; and
• Other liabilities increased $4.4 billion or 79% mainly due to the adoption of AASB 16 and $1.5 billion increase in provisions.
Equity attributable to owners of Westpac Banking Corporation increased $2.1 billion or 3% reflecting $2.8 billion of new shares
issuances, 2019 final dividend reinvestment plan (DRP) and retained profits, partly offset by dividends paid during the period.
First Half 2020 – First Half 2019
The Group’s loan growth during First Half 2020 was subdued as Australian housing loans decreased $1.5 billion. With the
onset of COVID-19, deposits rose sharply in March 2020 with government and corporate customers holding additional
liquidity. As a result the Group’s holdings of liquid assets, particularly cash also increased, with the LCR rising from 138% in
First Half 2019 to 154% in First Half 2020.
Key movements included:
Assets
• Cash and balances with central banks increased $26.3 billion or 135% reflecting higher liquid assets held in this form;
• Trading securities and financial assets measured at FVIS and investment securities increased $14.2 billion or 15% reflecting
higher balances held in this form;
• Derivative assets increased $34.9 billion or 160% mainly driven by movements in cross currency swaps and foreign
currency forward contracts;
• Loans increased $5.4 billion or 1%. Refer to Section 2.2.2 Loans for further information;
• Life insurance assets decreased $6.8 billion or 73% mainly due to transfers to non-consolidated funds in First Half 2020; and
• Other assets increased $3.3 billion or 15% mainly due to the adoption of AASB 16.
Liabilities
• Collateral received increased $10.8 billion due to an increase in net collateralised derivative assets;
• Deposits and other borrowings increased $27.9 billion or 5%. Refer to Section 2.2.3 Deposits and other borrowings for
further information;
• Other financial liabilities increased $5.0 billion or 17% mainly driven by higher securities sold under agreements to
repurchase and securities sold short;
• Derivative liabilities increased $24.7 billion or 106% driven by movements in cross currency swaps and foreign currency
forward contracts;
• Debt issues decreased $2.9 billion or 2% ($20.5 billion or 11% decrease excluding foreign currency impacts). Refer to
Section 2.4.2 Funding and liquidity risk management for further information;
• Life insurance liabilities decreased $6.9 billion or 92% mainly due to transfers to non-consolidated funds in First Half 2020;
• Loan capital increased $9.1 billion or 54% mainly due to the issuance of $6.5 billion Tier 2 capital instruments and foreign
currency translation and fair value hedging impacts of $2.8 billion; and
• Other liabilities increased $5.2 billion or 108% mainly due to the adoption of AASB 16 and $1.9 billion increase in provisions.
Equity attributable to owners of Westpac Banking Corporation increased $3.7 billion or 6% reflecting $2.8 billion of new shares
issuances, 2019 interim DRP and final DRP and retained profits, partly offset by dividends paid during the period.

372020 Interim Financial Results
1
2
3
4
5
6
7
Review of Group operations
2.4.2 Funding and liquidity risk management
Liquidity risk is the risk that the Group will be unable to fund assets and meet obligations as they become due. This type of
risk is inherent for all banks as intermediaries between depositors and borrowers. The Group has a liquidity risk management
framework which seeks to meet cash flow obligations under a wide range of market conditions, including name specific and
market-wide stress scenarios, as well as meeting the regulatory requirements of the LCR and NSFR.
The challenges presented by COVID-19 to the global economy since January 2020 have highlighted the speed and extent to
which financial markets can become dislocated and the critical importance of banks maintaining sufficient liquidity at all times.
We believe the Group is well positioned for these challenges, having maintained funding and liquidity metrics comfortably above
regulatory minimums before the crisis. At 31 March 2020, the Group’s LCR was 154% and its NSFR was 117% compared to
regulatory minimums of 100% for both.
On 19 March 2020, the Reserve Bank announced extensive measures aimed at providing liquidity to financial markets
and to support the banks in providing credit to businesses. As well as lowering the cash rate, these measures included
injecting extra liquidity into the financial system through daily market operations, the purchasing of Australian Government
bonds in the secondary market, increasing the interest rate on Exchange Settlement Balances, and the introduction of the
Term Funding Facility (TFF).
The primary purpose of the TFF is to support lending to Australian businesses. In aggregate, ADIs have access to at least
$90 billion under the TFF, comprised of an Initial Allowance for each ADI, plus an Additional Allowance. Based on the terms
of the facility, Westpac’s Initial Allowance is $17.9 billion and can be drawn down until 30 September 2020. The Additional
Allowance is based on the growth in lending provided by the ADI to both large businesses and SMEs from the quarter ending
31 January 2020 to the quarter ending 31 January 2021 and can be drawn down until 31 March 2021.
Funding is provided to ADIs through the TFF at a fixed interest rate of 25 basis points, for a maximum of three years. To access
the TFF, ADIs must pledge eligible collateral, which includes self-securitised residential mortgage-backed securities.
Under the regulatory approach to the TFF, the Initial Allowance and Additional Allowance may be included in the calculation of
the LCR and NSFR to the extent an ADI has sufficient unencumbered collateral. Westpac has included the full amount of its
Initial Allowance in the LCR and NSFR calculations for 31 March 2020.
Liquidity
The Group has a number of sources of liquidity that provide a buffer against periods of liquidity stress. These include
High Quality Liquid Assets (HQLA) and the Committed Liquidity Facility (CLF), both of which are used to meet the Group’s LCR
requirements. The Group also has access to non-HQLA and other assets that are eligible for re-purchase with a central bank
under certain conditions.
• At 31 March 2020, Westpac held $121.0 billion in HQLA (30 September 2019: $89.9 billion). HQLA include cash, deposits
with central banks, government securities and other high quality securities that are repo-eligible with the RBA. The HQLA
portfolio is managed within the Group’s risk appetite and within regulatory requirements.
• Westpac’s CLF allocation for the 2020 calendar year, as approved by APRA, is $52 billion (2019 calendar year: $54 billion).
The CLF is a commitment by the RBA to provide funds secured by high-quality collateral through a period of liquidity stress.
This commitment can be counted by ADIs towards meeting the LCR requirement given the limited amount of government
debt in Australia. In order to have access to a CLF, ADIs must satisfy qualifying conditions and are required to pay a fee
to the RBA on the approved undrawn facility. The fee was increase by the RBA on 1 January 2020 to 17 basis points
(from 15 basis points) and will increase to 20 basis points on 1 January 2021.
• The Group also holds a portfolio of non-HQLA liquid assets that are repo-eligible with the Reserve Bank of Australia. These
include private securities and self-originated AAA-rated mortgage backed securities.
The Group’s total unencumbered liquid assets were $199.9 billion as at 31 March 2020 (30 September 2019: $169.9 billion).
LCR
The LCR enhances banks’ short-term resilience, requiring them to hold sufficient HQLA, as defined, to withstand 30 days under
a regulator-defined acute stress scenario. In addition to HQLA, Australian ADIs including Westpac also have access to the CLF,
as set out above, to meet the requirements of the LCR.
Westpac’s LCR for 31 March 2020 calculated on a spot basis was 154% (30 September 2019: 127%). The inclusion of
Westpac’s allowance of the TFF added 14 percentage points to the ratio. Other movements in the Group’s LCR reflect an
increase in HQLA by $31.1 billion over the half, while net cash outflows (NCOs) increased by $10.2 billion.
NSFR
The NSFR is designed to encourage banks’ longer-term funding resilience. To comply, banks are required to maintain an NSFR
of at least 100% at all times. Westpac had an NSFR of 117% at 31 March 2020 (30 September 2019: 112%). The inclusion of
Westpac’s allowance of the TFF added 2 percentage points to the ratio. Other movements in the Group’s NSFR over the half
mainly reflect a $21 billion increase in available stable funding, due to deposits (up $9 billion), wholesale funding (up $9 billion)
and other (up $3 billion). Required stable funding increased by $2 billion excluding the impact of the TFF.
Funding
The Group monitors the composition and stability of its funding so that it remains within the Group’s funding risk appetite. This
includes compliance with both the LCR and NSFR. The composition of the Group’s funding mix was little changed over the half.
Review of Group operations

382020 Interim Financial Results
Review of Group operations
Customer deposits
Customer deposits made up 62.7% of the Group’s total funding at 31 March 2020, which was 20 basis points higher compared
to 30 September 2019 (62.5%). Growth in customer deposits over the half was matched in other sources of funding, partly due
the increase in offshore wholesale balances in line with the lower Australian dollar.
Long term wholesale funding
Long term wholesale funding made up 16.3% of the Group’s total funding at 31 March 2020 (30 September 2019: 16.6%) and
securitisation made up a further 1.1% (30 September 2019: 1.0%).
During the First Half 2020, the Group raised $12.9 billion in new long term wholesale funding. Almost all funding was issued
early in the 2020 calendar year, as the Group took advantage of constructive market conditions. This enabled the Group to stay
out of global markets later in the half as conditions significantly deteriorated due to the COVID-19 pandemic.
Westpac’s new issuance was principally senior unsecured bonds ($5.6 billion), covered bonds ($2.6 billion), residential
mortgage-backed securities ($2.5 billion) and Tier 2 capital securities ($2.2 billion). USD issuance made up 77% of the Group’s
new long term wholesale funding reflecting favourable pricing in that market early in 2020. Westpac continues to be the only
major Australian bank able to issue SEC Registered bonds in the USD market, which Westpac believes delivers superior
liquidity compared to non-SEC Registered bonds, amongst other benefits.
The weighted average maturity (excluding securitisation) of new term issuance in First Half 2020 was 5.2 years, slightly shorter
compared to Full Year 2019 (6.0 years).
Short term wholesale funding
Short term wholesale funding as a proportion of total funding was unchanged over the half at 12.1%. The short-term portfolio
(including long term to short term scroll) was $104.9 billion (30 September 2019: $101.2 billion) and had a weighted average
maturity of 136 days.
Liquidity coverage ratio
As atAs atAs at% Mov’t
$m
31 March
2020
30 Sept
2019
31 March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
High Quality Liquid Assets (HQLA)
1
121,017 89,883 79,701 35 52
Committed Liquidity Facility (CLF)
1
52,000 54,000 54,000 (4)(4)
Term Funding Facility (TFF)
1
17,897 - - - -
Total LCR liquid assets 190,914 143,883 133,701 33 43
Cash outflows in a modelled 30-day APRA defined stressed scenario
Customer deposits 85,922 74,860 65,819 15 31
Wholesale funding 12,639 14,544 11,741 (13) 8
Other flows
2
25,036 23,986 19,482 4 29
Total 123,597 113,390 97,042 9 27
LCR
3
154% 127% 138%largelarge
Net stable funding ratio
As atAs atAs at% Mov’t
$m
31 March
2020
30 Sept
2019
31 March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
Available stable funding 627,676 606,774 606,217 3 4
Required stable funding 536,601 543,958 536,414 (1)-
Net stable funding ratio 117% 112% 113%large 396 bps
1. Refer to Glossary for definition.
2. Other flows include credit and liquidity facilities, collateral outflows and inflows from customers.
3. Calculated on a spot basis.

392020 Interim Financial Results
1
2
3
4
5
6
7
Review of Group operations
Funding by residual maturity
As at 31 March
2020
As at 30 Sept
2019
As at 31 March
2019
$mRatio %$mRatio %$mRatio %
Wholesale funding
Less than 6 months 49,097 5.7 45,334 5.4 58,244 7.0
6 to 12 months 17,301 2.0 25,566 3.1 22,860 2.8
Long term to short term scroll
1
38,539 4.4 30,255 3.6 32,375 3.9
Wholesale funding - residual maturity less than 12 months 104,937 12.1 101,155 12.1 113,479 13.7
Securitisation 9,523 1.1 8,190 1.0 9,472 1.1
Greater than 12 months 140,974 16.3 139,328 16.6 132,089 15.9
Wholesale funding - residual maturity greater than 12 months 150,497 17.4 147,518 17.6 141,561 17.0
Customer deposits 543,801 62.7 524,516 62.5 511,643 61.6
Equity
2
67,604 7.8 65,785 7.8 64,347 7.7
Total funding 866,839 100.0 838,974 100.0 831,030 100.0
Deposits to net loans ratio
As at 31 March
2020
As at 30 Sept
2019
As at 31 March
2019
$mRatio %$mRatio %$mRatio %
Customer deposits 543,801 524,516 511,643
Net loans 719,678 75.6% 714,770 73.4% 714,297 71.6%
Funding view of the balance sheet
$m
Total liquid
assets
Customer
deposits
Wholesale
funding
Customer
franchise
Market
inventoryTotal
As at 31 March 2020
Total assets 199,949 - - 673,994 93,719 967,662
Total liabilities- (543,801)(255,434)- (100,781)(900,016)
Total equity- - - (67,604)(42)(67,646)
Total 199,949 (543,801)(255,434) 606,390 (7,104)-
Net loans
3
63,189 - - 656,489 - 719,678
As at 30 September 2019
Total assets 169,871 - - 670,261 66,494 906,626
Total liabilities- (524,516)(248,673)- (67,930)(841,119)
Total equity- - - (65,785) 278 (65,507)
Total 169,871 (524,516)(248,673) 604,476 (1,158)-
Net loans
3
59,278 - - 655,492 - 714,770
As at 31 March 2019
Total assets 151,588 - - 679,713 59,761 891,062
Total liabilities- (511,643)(255,040)- (60,444)(827,127)
Total equity- - - (64,347) 412 (63,935)
Total 151,588 (511,643)(255,040) 615,366 (271)-
Net loans
3
49,151 - - 665,146 - 714,297
1. Scroll represents wholesale funding with an original maturity greater than 12 months that now has a residual maturity less than 12 months.
2. Includes total share capital, share based payments reserves and retained profits.
3. Liquid assets in net loans include internally securitised assets that are eligible for repurchase agreements with the RBA/RBNZ.

402020 Interim Financial Results
Review of Group operations
2.5 Capital and dividends
As atAs atAs at% Mov’t
31 March
2020
30 Sept
2019
31 March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
Level 2 Regulatory capital structure
Common equity Tier 1 (CET 1) capital after deductions ($m) 47,982 45,752 44,680 5 7
Risk weighted assets (RWA) ($m) 443,905 428,794 419,819 4 6
CET 1 capital ratio 10.81% 10.67% 10.64% 14 bps 17 bps
Additional Tier 1 capital ratio 2.13% 2.17% 2.20%(4 bps)(7 bps)
Tier 1 capital ratio 12.94% 12.84% 12.84% 10 bps 10 bps
Tier 2 capital ratio 3.35% 2.79% 1.78% 56 bps 157 bps
Total regulatory capital ratio 16.29% 15.63% 14.62% 66 bps 167 bps
APRA leverage ratio
1
5.66% 5.68% 5.72%(2 bps)(6 bps)
Level 1 Regulatory capital structure
CET 1 capital after deductions ($m) 48,482 46,380 43,850 5 11
Risk weighted assets ($m) 437,137 422,475 409,231 3 7
Level 1 CET 1 capital ratio 11.09% 10.98% 10.72% 11 bps 37 bps
APRA announcements on capital
As part of its response to the current economic environment following COVID-19, APRA has adjusted its expectations for bank
capital. On 19 March 2020 APRA announced that during the period of disruption caused by COVID-19 APRA would not be
concerned if banks were not meeting its 10.5% “unquestionably strong benchmark” for CET1. Banks may use their current
capital buffers provided they remain above the current regulatory requirement (currently at least 8.0% for domestic systemically
important banks (D-SIBs)
2
). APRA has also indicated that they do not envisage reinstating the “unquestionably strong”
benchmarks for at least 12 months. Accordingly, Westpac has updated its capital management strategy which is set out below.
APRA has also deferred implementation of the Basel III capital reforms by one year to January 2023 and announced
amendments to the calculation of RWA for COVID-19 relief packages which allow for payment deferrals. These COVID-19
packages have not impacted RWA at 31 March 2020 due to the timing of these packages being offered, however may impact
future periods.
Further details of APRA’s regulatory changes are set out in the Significant Developments section of the 2020 Interim Financial Report.
Capital management strategy
Westpac’s approach to capital management seeks to ensure that it is adequately capitalised as an ADI. Westpac evaluates its
approach to capital management through an Internal Capital Adequacy Assessment Process (ICAAP), the key features of which
include:
• The development of a capital management strategy, including consideration of regulatory minimums, capital buffers and
contingency plans;
• Consideration of both regulatory and economic capital requirements;
• A stress testing framework that challenges the capital measures, coverage and requirements including the impact of adverse
economic scenarios; and
• Consideration of the perspectives of external stakeholders including rating agencies as well as equity and debt investors.
During the period of disruption caused by COVID-19, Westpac will seek to operate with the following principles in relation to capital:
• Prioritise maintaining capital strength;
• In line with APRA guidance, utilise some of the “unquestionably strong” buffer and seek to maintain a buffer above the
regulatory minimum;
• Retain capital to absorb further downside on credit quality and acknowledge a high degree of uncertainty regarding the
length and depth of this stress; and
• Allow for capital flexibility to support lending to customers.
These principles take into consideration:
• Current regulatory capital minimums and the capital conservation buffer (CCB), which together are the Total CET1
Requirement. In line with the above, the Total CET1 Requirement for Westpac is at least 8.0%, based upon an industry
minimum CET1 requirement of 4.5% plus a capital buffer of at least 3.5% applicable to D-SIBs
3,4
;
• Stress testing to calibrate an appropriate buffer against a downturn; and
• Quarterly volatility of capital ratios due to the half yearly cycle of ordinary dividend payments.
Westpac will revise its target capital levels once the medium to longer term impacts of COVID-19 are clearer, taking into
account APRA’s expectations for the timing of any capital rebuilding required and the finalisation of APRA’s review of the capital
adequacy framework.
Review of Group operations
1. Refer to Glossary for definition.
2. Noting that APRA may apply higher CET1 requirements for an individual ADI.
3. Noting that APRA may apply higher CET1 requirements for an individual ADI.
4. If an ADI’s CET1 ratio falls below the Total CET1 Requirement (at least 8%), they face restrictions on the distribution of earnings, such as dividends,
distribution payments on AT1 capital instruments and discretionary staff bonuses.

412020 Interim Financial Results
1
2
3
4
5
6
7
Review of Group operations
CET1 capital ratio movement for First Half 2020
Sep-19
Cash earnings
ex notable
items
Notable
items
2H19
dividend
(net of DRP)
Capital
deductions
and other capital
movements
Ordinary
RWA
growth
Mar-20
RWA model
changes and
overlays
10.67%
62
51
(29)
(3)
(57)
18
(30)
10.81%
Capital
raised
2
FX
translation
impact
Cash earnings +22bps
Westpac’s CET1 capital ratio was 10.81% at 31 March 2020. The CET1 ratio was 14 basis points higher than
30 September 2019 reflecting the institutional placement and share purchase plan (which together raised $2.8 billion of capital)
and earnings for the half, partially offset by payment of the final 2019 dividend and higher RWA.
Cash earnings for First Half 2020 were $993 million (22 basis point increase). Cash earnings included additional impairment
charges of $1,107 million after tax in anticipation of credit losses that Westpac expects to incur from the COVID-19 pandemic.
The net impact to the CET1 capital ratio of the increased impairment provisions related to COVID-19 is an 11 basis point
decrease reflecting the impact to cash earnings, the reduction in regulatory expected loss deduction to nil and a higher
deduction for deferred tax assets. Cash earnings were also impacted by notable items ($1,285 million after tax) relating to
provisions and costs associated with the AUSTRAC proceedings and an increase for estimated customer refunds, payments,
associated costs and litigation (29 basis point impact).
Key movements over the half were as follows:
• Capital raised totalling $2.8 billion over the half (62 basis point increase);
• First Half 2020 cash earnings, including notable items (22 basis point increase);
• The 2019 final dividend payment, net of the dividend reinvestment plan (DRP) share issuance (57 basis point decrease);
• Capital deductions and other capital movements (18 basis point increase). This mainly reflects the impact of increased
impairment provisions related to COVID-19, which reduced the regulatory expected loss deduction to nil (25 basis point
increase) and a higher deduction for deferred tax assets (13 basis point decrease). Other capital items increased
6 basis points primarily driven by movements in fair value on economic hedges recognised in net profit;
• Ordinary RWA growth (before model changes, overlays and foreign currency translation) decreased slightly over the period
(2 basis point increase); and
• Foreign currency impacts from the appreciation of the NZ$ against the A$ (3 basis point decrease)
1
.
RWA model changes and overlays increased RWA $12.3 billion leading to a 30 basis point decrease in the CET1 capital ratio.
This was primarily driven by:
• Operational Risk capital overlay of $500 million imposed by APRA following AUSTRAC’s Statement of Claim (15 basis point
decrease, $6.25 billion increase in RWA);
• An increase in IRRBB capital from plans to implement a new IRRBB model more suited to low interest rates. Until the
model is finalised and approved, Westpac will include an IRRBB capital overlay of $500 million (15 basis point decrease,
$6.25 billion increase in RWA);
• Adoption of AASB 16 Leases methodology from 1 October 2019 in other assets risk calculation (8 basis point decrease,
$3.3 billion increase in RWA); and
• Model changes for a segment of the Australian mortgage portfolio and also New Zealand mortgages (8 basis point increase,
$3.5 billion decrease in RWA).
1. Reflecting the net impact of movements in the foreign currency translation reserve and RWA.

422020 Interim Financial Results
Review of Group operations
Additional Tier 1 and Tier 2 capital movement for First Half 2020
During the half, Westpac Issued US $1.5 billion of Tier 2 capital instruments (49 basis point increase) and redeemed
CNY1.25 billion of Tier 2 capital instruments (6 basis point decrease). The higher new issuance was in response to APRA’s
increased total capital requirements to be met by 1 January 2024.
Leverage ratio
The leverage ratio represents the amount of Tier 1 capital relative to exposure
1
. At 31 March 2020, Westpac’s leverage ratio was
5.66%, down 2 basis points since 30 September 2019.
Internationally comparable capital ratios
The APRA Basel III capital adequacy requirements are more conservative than those of the Basel Committee on Banking
Supervision (BCBS), leading to lower reported capital ratios when compared to international peers. APRA conducted a study in
July 2015 outlining its methodology for measuring international comparable capital ratios. For details on the adjustments refer to
Westpac’s 2020 Interim Investor Discussion Pack.
The table below calculates the Group’s reported capital ratios consistent with this methodology.
As atAs atAs at% Mov’t
%
31 March
2020
30 Sept
2019
31 March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
Internationally comparable capital ratios
CET 1 capital ratio 15.81% 15.85% 16.17%(4 bps)(36 bps)
Tier 1 capital ratio 18.55% 18.64% 19.07%(9 bps)(52 bps)
Total regulatory capital ratio 22.69% 22.08% 21.25% 61 bps 144 bps
Leverage ratio 6.28% 6.36% 6.39%(8 bps)(11 bps)
1. As defined under Attachment D of APS110: Capital Adequacy.

432020 Interim Financial Results
1
2
3
4
5
6
7
Review of Group operations
Risk Weighted Assets (RWA)
As atAs atAs at% Mov’t
$m
31 March
2020
30 Sept
2019
31 March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
Credit risk:
Corporate
1
78,288 74,807 73,551 5 6
Business lending
2
34,493 35,470 35,294 (3)(2)
Sovereign
3
2,192 2,068 1,653 6 33
Bank
4
6,956 8,339 7,066 (17)(2)
Residential mortgages 131,424 131,629 132,133 - (1)
Australian credit cards 4,837 5,089 5,910 (5)(18)
Other retail 11,594 12,395 13,082 (6)(11)
Small business
5
16,812 16,090 16,092 4 4
Specialised lending: Property and project finance
6
56,004 55,262 54,833 1 2
Securitisation
7
5,747 5,749 5,583 - 3
Standardised 9,506 9,653 10,455 (2)(9)
Mark-to-market related credit risk 11,289 11,313 7,110 - 59
Total credit risk 369,142 367,864 362,762 - 2
Market risk 8,396 9,350 8,338 (10) 1
Operational risk
8
54,093 47,680 38,641 13 40
Interest rate risk in the banking book (IRRBB) 5,305 530 7,076 large(25)
Other 6,969 3,370 3,002 107 132
Total risk weighted assets 443,905 428,794 419,819 4 6
Total RWA increased $15.1 billion or 3.5% this half mainly driven by an increase in non-credit risk RWA.
The $1.3 billion increase in credit risk RWA included:
• A $1.1 billion increase in RWA from changes in asset quality within Australian mortgages including higher consumer
delinquencies;
• Lower lending primarily within retail products, which decreased RWA by $1.2 billion;
• Model changes detailed above which reduced RWA by $3.5 billion;
• Foreign currency translation impacts which increased RWA by $3.9 billion from the appreciation of the US$ and NZ$ against
the A$ mainly impacting corporate and NZ mortgages; and
• An increase in mark-to-market related credit risk and counterparty credit risk RWA of $1.0 billion mostly within corporate
exposures.
A $13.8 billion increase in non-credit RWA mostly from the impact of the capital overlays and the adoption of AASB 16 detailed
above. These were partly offset by a $1.0 billion decrease in market risk RWA and a higher embedded gain from lower interest
rates in IRRBB RWA.
1. Corporate – typically includes exposure where the borrower has annual turnover greater than $50 million, and other business exposures not captured
under the definitions of either Business lending or Small Business.
2. Business lending – includes exposures not captured elsewhere where the borrower has annual turnover less than or equal to $50 million.
3. Sovereign – includes exposures to governments themselves and other non-commercial enterprises that are owned or controlled by them.
4. Bank – includes exposures to licensed banks and their owned or controlled subsidiaries, and overseas central banks.
5. Small business – program managed business lending exposures.
6. Specialised lending – property and project finance – includes exposures to entities created to finance and/or operates specific assets where, apart from
the income received from the assets being financed, the borrower has little or no independent capacity to repay from other activities or assets.
7. Securitisation – exposures reflect Westpac’s involvement in activities ranging from originator to investor and include the provision of securitisation
services for clients wishing to access capital markets.
8. Operational risk – the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events, including legal
risk but excluding strategic or reputational risk.

442020 Interim Financial Results
Review of Group operations
Capital adequacy
As atAs atAs at
$m
31 March
2020
30 Sept
2019
31 March
2019
Tier 1 capital
CET 1 capital
Paid up ordinary capital 40,503 37,508 36,351
Treasury shares(619)(575)(571)
Equity based remuneration 1,645 1,548 1,527
Foreign currency translation reserve 59 (199)(331)
Accumulated other comprehensive income(190)(68) 15
Non-controlling interests - other 61 58 54
Retained earnings 25,985 27,188 26,949
Less retained earnings in life and general insurance, funds management and securitisation entities(1,326)(1,407)(1,289)
Deferred fees 229 267 234
Total CET 1 capital 66,347 64,320 62,939
Deductions from CET 1 capital
Goodwill (excluding funds management entities)(8,673)(8,648)(8,665)
Deferred tax assets(2,610)(2,034)(1,710)
Goodwill in life and general insurance, funds management and securitisation entities(935)(940)(941)
Capitalised expenditure(1,656)(1,719)(1,778)
Capitalised software(2,029)(2,019)(1,881)
Investments in subsidiaries not consolidated for regulatory purposes(1,633)(1,540)(1,522)
Regulatory expected downturn loss in excess of eligible provisions- (1,106)(1,148)
Defined benefit superannuation fund surplus(80)(73)(66)
Equity investments(327)(425)(482)
Regulatory adjustments to fair value positions(407)(63)(65)
Other Tier 1 deductions(15)(1)(1)
Total deductions from CET 1 capital(18,365)(18,568)(18,259)
Total CET 1 capital after deductions 47,982 45,752 44,680
Additional Tier 1 capital
Basel III complying instruments 9,473 9,299 9,216
Total Additional Tier 1 capital 9,473 9,299 9,216
Net Tier 1 regulatory capital 57,455 55,051 53,896
Tier 2 capital
Basel III complying instruments 14,455 11,645 7,143
Basel III transitional instruments 567 519 495
Eligible general reserve for credit loss 79 62 66
Total Tier 2 capital 15,101 12,226 7,704
Deductions from Tier 2 capital
Investments in subsidiaries not consolidated for regulatory purposes(140)(140)(140)
Holdings of own and other financial institutions Tier 2 capital instruments(102)(115)(103)
Total deductions from Tier 2 capital(242)(255)(243)
Net Tier 2 regulatory capital 14,859 11,971 7,461
Total regulatory capital 72,314 67,022 61,357
Risk weighted assets 443,905 428,794 419,819
CET 1 capital ratio 10.81% 10.67% 10.64%
Additional Tier 1 capital ratio 2.13% 2.17% 2.20%
Tier 1 capital ratio 12.94% 12.84% 12.84%
Tier 2 capital ratio 3.35% 2.79% 1.78%
Total regulatory capital ratio 16.29% 15.63% 14.62%

452020 Interim Financial Results
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Review of Group operations
Dividends
Half YearHalf YearHalf Year% Mov’t
Ordinary dividend (cents per share)
March
2020
Sept
2019
March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
Interim (fully franked)TBD- 94 TBDTBD
Final (fully franked)- 80 - - -
Total ordinary dividendTBD 80 94 TBDTBD
Payout ratio (reported)TBD 77.26% 102.00%TBDTBD
Payout ratio (cash earnings)TBD 78.58% 98.33%TBDTBD
Adjusted franking credit balance ($m) 2,881 1,558 1,234 85 133
Imputation credit (cents per share - NZ)TBD 7.0 7.0 TBDTBD
The Board has deferred the decision on determining an interim dividend and no dividend will be paid in June 2020. This was a
difficult decision given many retail shareholders rely on our dividends.
Westpac remains well provisioned and capitalised. Nevertheless, the Board recognises the uncertain economic and operating
conditions and how these may develop over the next six months. The Board also accepted APRA’s consistent guidance on
dividends and being prudent at this point in time. Westpac has kept APRA informed about its stress testing scenarios and capital
position. WBC has not received any concerns from APRA on the bank’s capital position. The Board will continue to review
dividend options over the course of this year.
Westpac will continue to assess opportunities to improve capital utilisation across the Group. The strategic review of Specialist
Businesses will also consider ways to further optimise capital. Refer to Significant Developments in the Directors’ Report
(Section 4.1) for information on Specialist Businesses.
Capital deduction for regulatory expected credit loss
For capital adequacy purposes APRA requires the amount of regulatory expected credit losses in excess of eligible provisions to
be deducted from CET1 capital. The table below shows the calculation of this capital deduction.
As atAs atAs at
$m
31 March
2020
30 Sept
2019
31 March
2019
Provisions associated with eligible portfolios
Total provisions for expected credit losses (Section 4, Note 10) 5,791 3,924 3,997
plus provisions associated with partial write-offs 41 41 94
less ineligible provisions
1
(129)(89)(79)
Total eligible provisions 5,703 3,876 4,012
Regulatory expected downturn loss 5,540 4,982 5,160
(Excess)/shortfall in eligible provisions compared to regulatory expected downturn loss(163) 1,106 1,148
CET 1 capital deduction for regulatory expected downturn loss in excess of eligible provisions
2
- (1,106)(1,148)
1. Provisions associated with portfolios subject to the Basel standardised approach to credit risk are not eligible.
2. Regulatory expected loss is calculated for portfolios subject to the Basel advanced capital IRB approach to credit risk. The comparison between
regulatory expected loss and eligible provisions is performed separately for defaulted and non-defaulted exposures.

462020 Interim Financial Results
Review of Group operations
2.6 Sustainability performance
Westpac’s approach to sustainability
The Group’s approach to operating sustainably is outlined in our 2018-2020 Sustainability Strategy and is designed to
anticipate, respond to and shape the most pressing emerging issues and opportunities that have the potential to materially
impact customers, employees, suppliers, shareholders and communities.
As one of Australia’s largest financial institutions, Westpac plays a role in helping to create positive social, economic and
environmental impact. We are:
• a founding signatory to the Principles for Responsible Banking;
• a signatory to the Business Coalition Statement on Climate which highlights our support for the Paris Agreement;
• a supporter of the United Nations Sustainable Development Goals (SDGs) and its agenda for action on improving the
wellbeing of present and future generations; and
• guided by the United Nations Guiding Principles on Business and Human Rights.
Key developments
Bushfires and COVID-19
Helping our customers, people and communities through the bushfire crisis, and more recently the impacts of COVID-19, has
been a major focus. We have put in place a series of support packages and initiatives designed to help those most affected. Our
priority through COVID-19 has been to protect our people while remaining open for business so we can support our customers,
communities and the Australian economy. Initiatives include:
• Tailored support packages to help consumer and business customers, including repayment relief and special lending and
deposit rates;
• $10 billion home lending fund to support the economy by assisting more Australians into home ownership as well as support
for the Government’s Coronavirus SME Guarantee Scheme;
• Implementing a broad range of measures to protect the health and wellbeing of our employees, including enhanced cleaning
protocols at our facilities and offices, provision of personal protective equipment (PPE), distributed working arrangements
and social distancing measures. With a large majority of our workforce working from home, we have prioritised new ways
of working and mental wellbeing for our people, releasing podcasts and support materials including from our Chief Mental
Health Officer; and
• Westpac Foundation
1
has brought forward grant payments to support social enterprises creating jobs for vulnerable
Australians, and is collaborating with industry partners to offer pro bono skills to support the social enterprise sector.
$1 million in Westpac Foundation Community Grants funding has also been brought forward to help small local not-for-
profits focused on employment, training and education.
Our bushfire support has been aimed at helping our customers, communities and employees recover and rebuild. This includes:
• Providing over $3.8 million in emergency cash grants to consumer and business customers;
• Providing over 1,980 relief packages to consumer and business customers;
• Mortgage repayments paid for up to one year for customers who have lost their principal place of residence due to the
bushfires (up to $1,200 per month);
• Helping over 500 customers lodge their general insurance claims and launching an interest free mortgage product to help
fund the gap between building insurance payout and rebuilding costs;
• Interest free and discounted loans to affected consumer and business customers;
• Uncapped paid leave for our employees who are emergency services volunteers in bushfire affected areas as well as three
days paid volunteering leave for those wanting to volunteer in affected communities;
• Over $1.4 million in donations to community groups and charities, including Financial Counselling Australia, state-based
volunteer fire services, Foundation for Rural and Regional Renewal (FRRR), Salvation Army and Victorian Bushfire Appeal;
and
• Collecting over $1.4 million for the Salvation Army through customer and employee donations.
Safer Children, Safer Communities
We continue to deliver on the commitments set out in our AUSTRAC Response Plan. This includes a series of actions and
investments to reduce the human impact of financial crime. In February 2020, we established the Safer Children, Safer
Communities Roundtable comprised of members experienced in human rights, ethics and child protection, and prevention of
child exploitation to guide investments for a program of work to support the prevention of online child exploitation. Westpac
will provide funding of up to $10 million per year for three years to implement these recommendations. We also finalised
partnerships with International Justice Mission, investing $18 million over three years to tackle online sexual exploitation of
children in the Philippines, and with Save the Children, investing $6 million over six years to raise awareness of online sexual
exploitation of children, complementing the Australian Government’s current level of funding for its SaferKidsPH partnership.
Review of Group operations
1. Westpac Foundation is administered by Westpac Community Limited (ABN 34 086 862 795) as trustee for Westpac Community Trust (ABN 53 265 036
982). Westpac Community Trust is a Public Ancillary Fund, endorsed by the ATO as a Deductible Gift Recipient and is not a part of Westpac Group.

472020 Interim Financial Results
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Review of Group operations
Climate Change and Human Rights
We have updated our Climate Change Position Statement and 2023 Action Plan, which re-affirms our 2015 commitment to
managing our business in alignment with the Paris Agreement and the need to transition to a net zero emissions economy by
2050. We also updated our Human Rights Position Statement and 2023 Action Plan which lays out the principles that guide our
approach to human rights and sets out a series of actions for how we will continue to embed respect for human rights into our
business practices and stakeholder relationships. Both statements were approved by the Board in April 2020 and are available
on our website.
Performance against our 2018-2020 Sustainability Strategy
The table below summarises additional progress against the goals set out in our Sustainability Strategy. All data in the table is
for the period 1 October 2019 to 31 March 2020, unless stated otherwise.
Priority areasGoalsHalf Year 2020 performance
Helping people
make better
financial
decisions
Help more people
better understand
their financial position,
improving their
financial confidence
• Continued to offer financial health check programs for superannuation members, including
the digital Wealth Review tool and My Wellbeing online portal;
• Delivered a range of financial literacy programs to individuals, businesses, not-
for-profit organisations and community groups through Westpac’s Davidson Institute in
Australia and the Managing Your Money program in New Zealand; and
• Delivered financial capability communications for different demographic segments including
for young Australians, in partnership with Year 13; women, via Ruby Connection; and older
Australians, via Starts at 60.
Helping people
by being there
when it matters
most to them
Help people recover
from financial hardship
• Helped customers experiencing financial hardship, issuing over 34,700 financial assistance
packages.
Help people lift out
of a difficult time and
recover stronger
• Refer to the ‘Bushfires and COVID-19’ updates provided in the Key developments section
above.
Helping our most
vulnerable customers
• Developed a Vulnerable Customer Standard to provide guidance to staff when supporting
customers in vulnerable circumstances;
• Assisted over 1,700 customers since launching the Priority Assist team to support
customers experiencing vulnerable circumstances, including domestic and family violence
and financial abuse;
• Enhanced our series of Life Moments tools and resources to assist customers and their
families going through challenging circumstances such as the loss of a loved one, divorce
or separation, with over 125,000 visits to the Life Moments web page; and
• Supported over 4,500 Indigenous Australians since the establishment in December 2018 of
a dedicated Customer Care team to support remote Indigenous communities.
Helping
people create
a prosperous
nation
Build the workforce of
the future
• Over 2,400 employees from our Consumer division completed ‘Own the Moment’
workshops – providing training to help frontline employees deepen their relationships with
customers and deliver on Our Service Promise; and
• Partnered with Macquarie University to deliver our Core Lending Program, with over
800 business bankers completing this program since launching through The Business
Institute.
Invest and back the
people and ideas
shaping Australia
• Westpac Scholars Trust¹ has awarded $3.9 million in educational scholarships to the next
64 Westpac Scholars, bringing the total cohort to 479;
• Westpac Foundation
2
job creation grants to social enterprises helped to create 539 jobs
3

for vulnerable Australians;
• Added 208 businesses through our Many Rivers partnership; cumulatively the partnership
is currently supporting 2,495 people with jobs
2
, with 868 identifying as Indigenous;
• Maintained a portfolio of direct investment in nine early stage companies; and
• Current commitment to Reinventure of $150 million across three funds, supporting
Reinventure’s investment in 27 early stage companies.
Back the growth
of climate change
solutions
• Increased lending to climate change solutions, taking total committed exposure to
$9.7 billion, progressing towards our 2020 target of $10 billion; and
• Facilitated $4.5 billion in funding for climate change solutions, exceeding our 2020 target of
$3 billion.
Bring together
partners and harness
the Group’s capacity
to tackle pressing
social issues that
matter most to the
nation
• Continued involvement in the implementation of the Principles for Responsible Banking, an
initiative of the United Nations Environment Programme Finance Initiative (UNEP FI); and
• Refer to the ‘AUSTRAC – Safer Children, Safer Communities’ update provided in the Key
developments section above.
1. Westpac Scholars Trust (ABN 35 600 251 071) is administered by Westpac Scholars Limited (ABN 72 168 847 041) as trustee for the Westpac
Scholars Trust. Westpac Scholars Trust is a private charitable trust and is not a part of Westpac Group.
2. Westpac Foundation is administered by Westpac Community Limited (ABN 34 086 862 795) as trustee for Westpac Community Trust (ABN 53 265 036
982). Westpac Community Trust is a Public Ancillary Fund, endorsed by the ATO as a Deductible Gift Recipient and is not a part of Westpac Group.
3. Jobs created through the Westpac Foundation job creation grants to social enterprises and Many Rivers job creation are for the year ended
31 December 2019.

482020 Interim Financial Results
Review of Group operations
Priority areasGoalsHalf Year 2020 performance
A culture that is
caring, inclusive
and innovative
Promote an inclusive
society, where our
workforce reflects our
customers
• Maintained 50% women in leadership
1
roles; and
• 80 new-to-bank Aboriginal or Torres Strait Islander hires.
Increase channels
where customers can
provide feedback
• Reduced non-external dispute resolution average time to solve for complaints from
9.4 days in First Half 2019 to 6 days; and
• 74% complaints resolved within five days, compared to 62% in First Half 2019.
Continuing to
lead on the
Sustainability
Fundamentals
Employees• Maintained lost time injury frequency rate (LTIFR) of 0.4 and achieved total recordable
injury frequency rate (TRIFR) of 2.4, a 23% reduction from Full Year 2019; and
• Refer to the ‘Bushfires and COVID-19’ updates provided in the Key developments section
above.
Human rights• Published our 2019 Slavery and Human Trafficking Statement in accordance with the
requirements of the United Kingdom’s Modern Slavery Act 2015;
• Progressed work to meet the requirements of the Australian Modern Slavery Act (2018);
and
• Joined the Australian Banking Association’s (ABA) Corporate Sustainability Working
Group to promote the implementation of best practice approaches to Modern Slavery Act
reporting within the ABA membership.
Sustainable lending
and investment
• Continued to embed the requirements of our updated Sustainability Risk Management
Framework; and
• Announced first green loan developed for the superannuation sector, specifically for
Local Government Property Fund (LGPF), managed by Local Government Super (LGS)
Environment
2
• Maintained carbon neutral status³;
• On track to achieve an 8% reduction in GHG emissions compared to Full Year 2019 and
25% compared to Full Year 2016;
• Group paper consumption on track to achieve a 4% reduction compared to Full Year 2019
and 48% reduction compared to Full Year 2016;
• On track to achieve over 25% reduction in water consumption in our Australian workplaces
4

compared to Full Year 2016; and
• Achieved 73% diversion of waste from landfill in our main Australian offices
5
.
Responsible sourcing• Sourced $6.1 million from diverse suppliers, including $1.4 million from Indigenous
suppliers.
Community and social
impact
• 7.9% employees participated in our volunteering programs, with 362 Westpac employees
involved with skilled volunteering support to community partners and social enterprises to
build their financial sustainability and social impact; and
• Refer to the ‘Bushfires and COVID-19’ updates provided in the Key developments section
above.
1. Women in Leadership refers to the proportion of women (permanent and maximum term) in leadership roles across the Group. It includes 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.
2 Environmental footprint data as at 31 December 2019, unless otherwise stated.
3. Metric updated annually. Status as at 30 June 2019.
4. Australian workplaces include commercial offices, retail branches, data centres and subsidiary sites.
5. Our main Australian offices are Sydney based Westpac buildings located at Kent Street, Barangaroo and Kogarah.

492020 Interim Financial Results
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2
3
4
5
6
7
Review of Group operations
1 Westpac’s Climate Change Position Statement and 2023 Action Plan does not apply to investments made where a Westpac Group entity is acting
as a trustee (for example Responsible Super Entity licensee or Responsible Entity) or insurer. The governance and strategies for ESG risk in these
portfolios (including climate change) are the responsibility of the relevant board and management of these entities.
2.6.1 Climate-related financial disclosures
Westpac recognises that climate change is one of the most significant issues that will impact the long-term prosperity of the
global economy and our way of life. The Group is committed to managing its business in alignment with the Paris Agreement,
and the need to transition to a net zero emissions economy by 2050. This includes how the Group provides financial services,
supports communities, operates its facilities, engages on matters of policy, and contributes to industry initiatives.
Westpac continues to integrate the consideration of climate-related risks and opportunities into its business operations. Since
2018, the Group has published disclosures in line with the recommendations of the Task Force on Climate-related Financial
Disclosures (TCFD), which the Group has publicly committed to support. Westpac’s performance against the recommendations
of the TCFD is summarised below.
Oversight
The Board has oversight of the Group’s approach to and management of climate change. The Group’s fourth Climate Change
Position Statement and 2023 Action Plan (CCPS) was approved by the Board in April 2020¹. The Board Risk and Compliance
Committee considers and approves Westpac’s Sustainability Risk Management Framework (which includes climate change
risks) every two years.
The implementation and management of Westpac’s response to climate change is delegated to Group Executives. The
Sustainability Council (Council), formed in 2008 and sponsored by the Group Executive, Customer and Corporate Relations,
comprises senior leaders from across the Group with responsibility for managing Westpac’s sustainability agenda, including
climate change. The Council meets at least quarterly and has climate change as a standing agenda item. The Council reports to
the Executive Team and Board through twice-yearly updates.
Various committees oversee different elements of the Group’s climate change strategy:
• the Sustainable Finance Committee coordinates initiatives to achieve Westpac’s climate change solutions targets. It reports
to the Council;
• the Climate Change Risk Committee oversees work to identify and manage the potential impact on credit exposures from
climate change-related transition and physical risks across the Group. It reports to the Group Credit Risk Committee; and
• the Environment Management Committee oversees strategies and initiatives to reduce the Group’s environmental footprint,
particularly targets around energy and emissions. It reports to the Council.
Divisional risk committees consider the climate change dimensions of our business activities as required.
Strategy
The CCPS describes the principles that underpin Westpac’s climate change strategy, recognising that:
• A transition to a net zero emissions economy is required by 2050;
• Economic growth and emissions reductions are complementary goals;
• Addressing climate change creates opportunities;
• Climate-related risk is a financial risk; and
• Collective action, transparency and disclosure matter.
To address climate change risk and opportunities, the CCPS identifies three focus areas where the Group is expected to direct
its attention over the short, medium and long term:
• We will help customers and communities respond to climate change;
• We will continue to improve the climate change performance of our operations; and
• We will continue to support initiatives and policies to achieve the goals of the Paris Agreement.
Westpac uses scenario analysis to guide its climate change strategy and to analyse the implications of climate-related factors
to its business. Westpac expects to be well positioned to capitalise on opportunities to support solutions and technology that
accelerate the transition to a low carbon economy, aiming to provide $3.5 billion of new lending to climate change solutions by
2023, and $15 billion by 2030.

502020 Interim Financial Results
Review of Group operations
Risk management and scenario analysis
Climate change risks are managed within the Group’s risk management framework. Westpac seeks to understand the potential
for climate-related transition, physical and litigation risks to impact its business, in particular the possible impact on credit risk,
regulatory and reporting obligations, and its reputation.
Through its CCPS, the Group sets out criteria for lending to emissions-intensive and climate-vulnerable sectors, supporting
customers that are in, or reliant, on these sectors and who assess the financial implications of climate change on their business,
including how their strategies are likely to perform under various forward-looking scenarios, and demonstrate a rigorous
approach to governance, strategy setting, risk management and reporting.
The Group reviews its Risk Management Framework, Risk Management Strategy, Sustainability Risk Management Framework,
risk appetite measures and policies ensuring the criteria set out in the CCPS are integrated. These criteria are applied at the
portfolio, customer and transaction level where appropriate. Escalation of risks to relevant divisional risk committees occurs
in accordance with the Sustainability Risk Management Framework. If the identified risks are not within risk appetite then the
application of conditions to manage the risks may be considered, or the transaction may be declined.
Westpac uses scenario analysis to inform its assessment of climate-related risks over short, medium and long-term horizons
1
.
The findings from scenario analysis conducted in 2019 informed Westpac’s current CCPS which outlined enhanced lending
standards for energy sectors including management of the thermal coal portfolio to reduce exposure to zero by 2030.
The Group understands the importance of both climate mitigation and adaptation efforts, including government planning
measures, and the benefits of climate-resilient building characteristics to reduce property damage and impacts on customers
and communities.
Along with the Group’s broader commitment to the Paris Agreement, Westpac expects to continue to help individual customers
respond to climate change, and to continue to advocate for more research and investment into helping communities adapt and
become resilient to climate-related impacts.
Westpac continues to assess:
• The resilience of its Business and Institutional lending² to transition risks under 1.5 and 2-degrees scenarios; and
• The potential impact of climate-related physical risks on the Australian mortgage portfolio³ arising from global warming
scenarios of both 2 and 4-degrees.
As at 31 March 2020:
• Westpac’s Business and Institutional lending exposure to sectors that by 2030 are likely to face growth constraints under a
1.5-degrees scenario is approximately 2.3%;
• Westpac’s Business and Institutional lending exposure to sectors that by 2030 are likely to face growth constraints under a
2-degrees scenario is approximately 0.9%; and
• Approximately 1.6% of the Australian mortgage portfolio is exposed to postcodes that are likely to experience higher
physical risk at 2050.
The Group has conducted preliminary analysis of its lending portfolios to understand the profile of its scope 3
4
financed
emissions. This analysis used publicly available average emissions factors for Australian homes and generic emissions factors
for industry sectors. The results of the analysis showed that the material customer sectors are utilities, mining, agribusiness,
property, residential mortgages, manufacturing and transport. Westpac will continue to refine its approach to measuring portfolio
scope 3 emissions in line with its commitment to develop financing strategies to support the transition to a low carbon economy.
1 Further details explaining the Group’s approach to scenario analysis can be found in the 2019 Sustainability Performance Report.
2 Excludes retail, sovereign, and bank exposures.
3 Excludes RAMS.
4 Scope 3 financed emissions are an estimate of the greenhouse gas emissions arising from activities supported by Westpac’s lending activity (including,
Australian mortgage lending, SME and corporate loans).

512020 Interim Financial Results
1
2
3
4
5
6
7
Review of Group operations
Metrics and targets
MetricsHalf Year 2020 performance
Energy generation
1
• Emission intensity of electricity generation portfolio• 0.26 (tCO
2
e/MWh) vs 2020 target 0.30 (tCO
2
e/MWh)
• Energy mix of electricity generation exposure (WIB only)• 75% renewable versus 25% non-renewable
Mining and coal exposure
• Mining (TCE)• $10.3 billion mining exposure representing 0.95% of Group TCE
• Coal mining (metallurgical and thermal) (TCE)
1
• $0.7 billion coal mining exposure representing 0.06% of Group TCE
• Thermal coal mining exposure as % of coal mining (WIB only)
• Thermal coal mining lending portfolio quality thresholds (kCal/kg)
• 61%
• Existing projects > 5,700 kCal/kg – Compliant
New projects > 6,300 kCal/Kg - Compliant
Direct footprint
1
• Total Scope 1 and 2 emissions (tCO
2
e)• 121,168 tCO
2
e - an annual reduction of 5.6% towards 2020
target of 9% (2016 baseline)
• Total Scope 3 emissions (tCO
2
e)²• 87,262tCO
2
e
• Carbon neutral operations• Carbon neutrality maintained
• Commitment to 100% renewable energy• Committed to source 100% global electricity consumption
through renewable energy sources by 2025
Climate change portfolio resilience
• Transition risk – 1.5-degree scenario• Approximately 2.3% of current Business and Institutional
lending exposed to sectors which by 2030 are likely to
experience higher risk in a transition to a 1.5-degree economy
• Transition risk – 2-degree scenario• Approximately 0.9% of current Business and Institutional
lending exposed to sectors which by 2030 are likely to
experience higher risk in a transition to a 2-degree economy
• Physical risk – 4-degree scenario• Approximately 1.6% of current Australian mortgage portfolio
in postcodes which by 2050 are likely to be exposed to higher
physical risks under a 4-degrees scenario
1. Metrics updated annually. Data as at 30 June 2019.
2. 2019 figure restated to reflect methodology update in First Half 2020.

522020 Interim Financial Results
Divisional results
3.0 Divisional results
Comparative divisional results have been restated. These changes have no impact on the overall Group’s results or balance
sheet. Refer Section 4, Note 2.
Notable items
The table below shows the impact of notable items on the divisions in First Half 2020 and Second Half 2019. Notable items are
discussed in Section 1.3.2. These items are discussed further in Note 14 of the 2020 Interim Financial Report.
ConsumerBusiness
Westpac
Institutional
Bank
Westpac New
Zealand
(A$)
Group
BusinessesGroup

$m
Half Year March 2020
Net interest income 5 (107)- (4)- (106)
Non-interest income- (2)- (3)(126)(131)
Operating expenses- (32)- - (1,158)(1,190)
Core earnings 5 (141)- (7)(1,284)(1,427)
Tax and non-controlling interests(2) 42 - 2 100 142
Cash earnings 3 (99)- (5)(1,184)(1,285)
Half Year Sept 2019
Net interest income(38)(81)- (13)- (132)
Non-interest income(2)(23)- (4)(191)(220)
Operating expenses(6)(67)- (15)(99)(187)
Core earnings(46)(171)- (32)(290)(539)
Tax and non-controlling interests 15 52 - 9 86 162
Cash earnings(31)(119)- (23)(204)(377)
Half Year March 2019
Net interest income(47)(165)- - - (212)
Non-interest income- (32)- - (568)(600)
Operating expenses 31 (20)- - (285)(274)
Core earnings(16)(217)- - (853)(1,086)
Tax and non-controlling interests 14 66 - - 253 333
Cash earnings(2)(151)- - (600)(753)
Divisional results

532020 Interim Financial Results
1
2
3
4
5
6
7
Divisional results
3.1 Consumer
Consumer is responsible for sales and service to 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.
The division also uses a third party to manufacture certain general insurance products.
Banking products are provided under the Westpac, St.George, BankSA, Bank of Melbourne, and RAMS brands, while insurance
products are provided under Westpac and BT brands. Consumer works with Business and WIB in the sales, service, and
referral of certain financial services and products including superannuation, platforms, auto lending and foreign exchange. The
revenue from these products is mostly retained by the product originators.
Half YearHalf YearHalf Year% Mov’t
$m
March
2020
Sept
2019
March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
Net interest income 4,177 4,094 3,915 2 7
Non-interest income 313 584 554 (46)(44)
Net operating income 4,490 4,678 4,469 (4)-
Operating expenses(2,024)(1,901)(1,867) 6 8
Core earnings 2,466 2,777 2,602 (11)(5)
Impairment charges(448)(317)(272) 41 65
Profit before income tax 2,018 2,460 2,330 (18)(13)
Income tax expense and non-controlling interests (NCI)(608)(737)(694)(18)(12)
Cash earnings 1,410 1,723 1,636 (18)(14)
Add back notable items(3) 31 2 largelarge
Cash earnings excluding notable items 1,407 1,754 1,638 (20)(14)
Expense to income ratio 45.08% 40.64% 41.78%large 330 bps
Net interest margin 2.34% 2.27% 2.20% 7 bps 14 bps
As atAs atAs at% Mov’t
$bn
31 March
2020
30 Sept
2019
31 March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
Customer deposits
Term deposits 53.4 59.9 65.4 (11)(18)
Other 157.4 150.7 141.8 4 11
Total customer deposits 210.8 210.6 207.2 - 2
Net loans
Mortgages 378.6 381.1 379.0 (1)-
Other 11.8 12.5 13.3 (6)(11)
Provisions(1.6)(1.5)(1.5) 7 7
Total net loans 388.8 392.1 390.8 (1)(1)
Deposit to loan ratio 54.22% 53.71% 53.02% 51 bps 120 bps
Total assets 400.4 402.9 401.5 (1)-
TCE 455.5 460.9 459.5 (1)(1)
Average interest earning assets
1
356.3 359.8 356.6 (1)-
Credit quality
As atAs atAs at
31 March
2020
30 Sept
2019
31 March
2019
Impairment charges to average loans annualised
2
0.23% 0.16% 0.14%
Mortgage 90+ day delinquencies 0.94% 0.90% 0.84%
Other consumer loans 90+ day delinquencies 1.96% 1.75% 1.67%
Total stressed exposures to TCE 0.85% 0.81% 0.74%
1. Averages are based on a six month period.
2. The presented ratios are based on a six month period.

542020 Interim Financial Results
Divisional results
Cash earnings excluding notable items
Half YearHalf YearHalf Year% Mov’t
$m
March
2020
Sept
2019
March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
Banking 1,463 1,626 1,541 (10)(5)
Insurance - Life insurance(19) 41 77 largelarge
Insurance - General insurance(41) 62 - large-
Insurance - Lenders mortgage insurance 10 13 10 (23)-
Capital and other(6) 12 10 largelarge
Total insurance (including capital and other)(56) 128 97 largelarge
Total cash earnings (ex notable items) 1,407 1,754 1,638 (20)(14)
Insurance key metrics
Half YearHalf YearHalf Year% Mov’t
March
2020
Sept
2019
March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
Life Insurance in-force premiums ($m)
Balance as at beginning of period 1,212 1,259 1,277 (4)(5)
Sales / New Business 67 33 55 103 22
Lapses(71)(80)(73)(11)(3)
Balance as at end of period
1
1,208 1,212 1,259 - (4)
Claims ratios
2
for Insurance Business (%)
Life insurance 54 53 48 1 large
General insurance 107 43 81 largelarge
Lenders mortgage insurance 15 16 25 (1)large
Gross written premiums ($m)
General insurance gross written premium 273 279 259 (2) 5
Lenders mortgage insurance gross written premium
3
89 84 76 6 17
1. The life insurance in-force premium is comprised of:
Retail for as at 31 March 2020 of $949 million (as at 30 September 2019: $960 million; as at 31 March 2019: $979 million); and Group Life Insurance
as at 31 March 2020 of $259 million (as at 30 September 2019: $252 million; as at 31 March 2019: $280 million).
2. Claims ratios are claims over earned premium plus reinsurance rebate. The lenders mortgage insurance claims ratios have been calculated to include
exchange commission.
3. LMI gross written premium includes loans >90% LVR reinsured with Arch Reinsurance Limited. First half March 2020 gross written premiums include
$63 million from the arrangement (Second half 2019: $56 million; First Half 2019: $52 million).

552020 Interim Financial Results
1
2
3
4
5
6
7
Divisional results
Financial performance
First Half 2020 – Second Half 2019
Cash earnings of $1,410 million were $313 million (or 18%) lower than Second Half 2019 from an increase in insurance claims
associated with bushfires and severe weather events, the write-down of certain assets and higher impairment charges.
Net interest
income
up $83m, 2%
• Loans were down 1% (or $3.3 billion) from lower new flows and increased run-off in mortgages.
Personal lending was also lower across both cards and personal loans;
• Deposits were little changed over the half, with lower term deposit balances largely offset by a 5% rise
in at call accounts, particularly transaction accounts; and
• Net interest margin was 7 basis points higher, (5 basis points excluding the impact of notable
items) from the timing of the mortgage repricing (this benefit was partly offset by elevated retention
pricing, switching from interest only (I/O) to principal and interest lending and lower spreads on new
mortgages). Deposit spreads were lower from the further reduction in interest rates.
Non-interest
income
down $271m, 46%
• Non-interest income was lower from:
– General insurance claims of $140 million for bushfires and severe weather events. There were no
severe weather events in Second Half 2019;
–A $97 million write-off of deferred acquisition costs (DAC) relating to changes to the provision of
group life insurance; and
–Lower credit card and debit card revenue also contributed to the reduction.
Expenses
up $123m, 6%
• Expenses increased from:
–Write-down of certain assets following a detailed review, including capitalised software, property,
equipment and leasehold improvements, totalling $66 million;
–Increased costs associated with the roll-out of the Customer Service Hub;
–Higher spending on risk, regulatory and compliance programs; and
–Cost increases from annual salary reviews and inflation were offset by productivity benefits
primarily from organisational redesign, rationalisation of a further 24 branches in First Half 2020,
and further use of digital channels.
Impairment
charges
up $131m, 41%
• Mortgage 90+ day delinquencies of 0.94% were up 4 basis points since September 2019 (0.90%).
Other consumer 90+ day delinquencies of 1.96%, up 21 basis points over the half, with most of the
increase due to reduced collections capacity from COVID-19 impacts. Portfolio contraction also
contributed to the increase; and
• Impairment charges were higher, mostly reflecting COVID-19 impacts. These resulted in changes
to the base case economic forecasts and increasing the weight applied to the downside economic
scenario used in AASB 9 provision models, and an increase in the overlay provision for other personal
lending.

562020 Interim Financial Results
Divisional results
Financial performance
First Half 2020 – First Half 2019
Cash earnings of $1,410 million were $226 million (or 14%) lower than First Half 2019 from an increase in insurance claims
associated with bushfires and severe weather events, the write-down of certain assets and higher impairment charges.
Net interest
income up
$262m, 7%
• Loans were down $2.0 billion over the year, mostly in credit cards and personal lending (down
$1.4 billion) as customers sought to use other forms of short term finance;
• Deposits increased 2% (or $3.6 billion), with higher transaction account balances, including mortgage
offset accounts partially offset by lower term deposit balances;
• The deposit to loan ratio of 54.2% increased 120 basis points over the year; and
• Net interest margin was 14 basis points higher (or 11 basis points excluding the impact of notable
items), from the timing of the mortgage repricing (this benefit was partly offset by elevated retention
pricing, switching from I/O to principal and interest lending and lower spreads on new mortgages).
Deposit spreads were lower from the further reduction in interest rates.
Non-interest
income down
$241m, 44%
• Non-interest income was lower from:
–A reduction in life insurance income (down $130 million) from the $97 million DAC write-off
reflecting changes to group life insurance and the impact of Protecting Your Super legislation;
–A $68 million increase in general insurance claims primarily from bushfires and severe weather
events; and
–Lower cards fee income consistent with the lower balances also contributed to the decline.
Expenses up
$157m, 8%
• First Half 2019 benefited from a provision release related to notable items of $31 million. Excluding
the impact of this, expenses were up $126 million, or 7% due to:
–Write-down of certain assets following a detailed review including capitalised software, property,
equipment and leasehold improvements totalling $66 million;
–Increased costs associated with the roll-out of the Customer Service Hub, risk and compliance
programs; and
–Higher costs associated with annual salary reviews, and inflation were offset by structural
productivity benefits including the full period impact of the 57 branches closed in 2019.
Impairment
charges up
$176m, 65%
• Mortgage 90+ day delinquencies of 0.94% were up 10 basis points since March 2019 (0.84%).
Other consumer 90+ day delinquencies of 1.96%, up 29 basis points over the year, with most of the
increase due to reduced collections capacity related to COVID-19 impacts. Portfolio contraction also
contributed to the increase; and
• Impairment charges were higher, mostly reflecting COVID-19 impacts. These resulted in changes
to the base case economic forecasts and increasing the weight applied to the downside economic
scenario used in AASB 9 provision models and an increase in the overlay provision for other personal
lending. The increase in 90+ day delinquencies also contributed to the increase.

572020 Interim Financial Results
1
2
3
4
5
6
7
Divisional results
3.2 Business
Business provides business banking and wealth facilities and products for customers across Australia. Business is responsible
for manufacturing and distributing facilities to SME and Commercial business customers (including Agribusiness) generally for
up to $200 million in exposure. SME customers include relationship managed and non-relationship managed SME customers.
The division offers a wide range of banking products and services to support their borrowing, payments and transaction
needs. In addition, specialist services are provided for cash flow finance, trade finance, automotive and equipment finance
and property finance. The division is also responsible for Private Wealth and the manufacture and distribution of investments
(including margin lending and equities broking), superannuation and retirement products as well as wealth administration
platforms. Business operates under the Westpac, St.George, BankSA, Bank of Melbourne, and BT brands. Business works
with Consumer and WIB in the sale, referral and service of select financial services and risk management products (including
corporate superannuation, foreign exchange and interest rate hedging). The revenue from these products is mostly retained by
the product originators.
Half YearHalf YearHalf Year% Mov’t
$m
March
2020
Sept
2019
March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
Net interest income 2,438 2,538 2,487 (4)(2)
Non-interest income 706 721 746 (2)(5)
Net operating income 3,144 3,259 3,233 (4)(3)
Operating expenses(1,468)(1,460)(1,394) 1 5
Core earnings 1,676 1,799 1,839 (7)(9)
Impairment charges(805)(194)(70)largelarge
Profit before income tax 871 1,605 1,769 (46)(51)
Income tax expense and NCI(267)(483)(531)(45)(50)
Cash earnings 604 1,122 1,238 (46)(51)
Add back notable items 99 119 151 (17)(34)
Cash earnings excluding notable items 703 1,241 1,389 (43)(49)
Expense to income ratio 46.69% 44.80% 43.12% 189 bps 357 bps
Net interest margin 3.01% 3.10% 3.06%(9 bps)(5 bps)
Cash earnings excluding notable items
Banking (including Private Wealth) 647 1,134 1,249 (43)(48)
Super, Investments, Platforms and Other
1
56 107 140 (48)(60)
Total cash earnings excluding notable items 703 1,241 1,389 (43)(49)
As atAs atAs at% Mov’t
$bn
31 March
2020
30 Sept
2019
31 March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
Customer deposits
Term deposits 56.2 62.1 64.1 (10)(12)
Other 90.8 84.4 77.2 8 18
Total customer deposits 147.0 146.5 141.3 - 4
Net loans
Mortgages 67.0 68.2 68.5 (2)(2)
Business 92.8 93.4 91.7 (1) 1
Other 8.5 9.3 9.8 (9)(13)
Provisions(2.1)(1.5)(1.4) 40 50
Total net loans 166.2 169.4 168.6 (2)(1)
Deposit to loan ratio 88.45% 86.48% 83.81% 197 bpslarge
Total assets 174.0 183.8 182.9 (5)(5)
TCE 209.5 211.3 213.2 (1)(2)
Average interest earning assets
2
161.8 163.5 163.0 (1)(1)
Total funds 185.9 215.4 203.1 (14)(8)
Average funds
2
213.5 211.2 197.3 1 8
1. Includes capital and other.
2. Averages are based on a six month period.

582020 Interim Financial Results
Divisional results
Credit quality
As atAs atAs at
%
31 March
2020
30 Sept
2019
31 March
2019
Impairment charges to average loans annualised
1
0.95% 0.23% 0.08%
Mortgage 90+ day delinquencies 0.93% 0.84% 0.72%
Other consumer loans 90+ day delinquencies 1.98% 1.80% 2.18%
Business: impaired exposures to TCE 0.71% 0.62% 0.59%
Total stressed exposures to TCE 3.02% 2.76% 2.47%
Financial performance
First Half 2020 – Second Half 2019
Cash earnings of $604 million were $518 million (or 46%) lower than Second Half 2019. Excluding notable items cash earnings
were $538 million (or 43%) lower mostly from higher impairment charges related to changes in the economic outlook linked to
the impact of COVID-19. Lower net interest margin and wealth income also contributed to the decline.
Net interest
income down
$100m, 4%
• Loans were 2% (or $3.2 billion) lower over the half, driven by a 2% (or $1.2 billion) reduction in
mortgages (mostly investment lending), lower business lending (down 1%, or $0.6 billion) and lower
Auto lending (down 6% or $0.4 billion) consistent with lower new car sales. Increased provisions also
contributed to the decline in net loans;
• Deposits were $0.5 billion higher, with a 9% rise in transaction balances and an increase in savings
balances partially offset by a decline in term deposits given a growing preference to hold more funds
at call; and
• Net interest margin was 9 basis points lower, (down 4 basis points excluding notable items). The
lower margin was mostly from reduced deposit spreads impacted by low interest rates, partly offset by
a repricing of mortgage and business loans and the changing mix of deposits.
Non-interest
income down
$15m, 2%
• Notable items in First Half 2020 were $21 million lower than Second Half 2019. Excluding these, non-
interest income was down $36 million (or 5%) due to:
–Margin compression from platform pricing changes, product migration to lower margin super
products and the full period impact of changes linked to Protecting Your Super legislation;
–Lower Platforms revenue, from lower interest rates on cash duration managed balances; and
–Partly offset by higher merchant income.
Expenses up
$8m, 1%
• Notable items in First Half 2020 were $35 million lower than Second Half 2019. Excluding these,
expenses were $43 million (or 3%) higher mostly from the write-down of certain assets, including
some of the capitalised software balance of Panorama. Excluding these items, expenses were
relatively flat as increased spending on risk, regulatory and compliance programs and other
technology projects were offset by productivity including operating model simplification.
Impairment
charges up
$611m, large
• The level of stressed exposures to TCE increased 26 basis points to 3.02% from the Commercial
portfolio, mostly from an increase in watchlist and substandard; and
• Impairment charges were higher, reflecting COVID-19 impacts. These resulted in changes to the
base case economic forecasts and increasing the weight applied to the downside economic scenario
used in AASB 9 provision models and an overlay associated with Auto loans. Individually assessed
provisions also increased $40 million, largely from a number of single name large exposures.
1. The presented ratios are based on a six month period.