US Form 6-K Filing – 2020 Interim Financial Results

06 05 2020
Market Announcements Office
ASX Limited
20 Bridge Street
SYDNEY NSW 2000

Westpac Place
Level 18, 275 Kent Street
Sydney NSW 2000

Dear Sir / Madam
US FORM 6-K (INTERIM FINANCIAL RESULTS ANNOUNEMENT FOR THE SIX MONTHS ENDED 31
MARCH 2020, PREPARED FOR DISTRIBUTION IN THE UNITED STATES)
Westpac Banking Corporation (Westpac) has filed with the US Securities and Exchange Commission a
Form 6-K, which attaches Westpac’s Interim Financial Results Announcement for the six months ended 31
March 2020, prepared specifically for distribution in the United States (US Interim Financial Results
Announcement). This filing has been prepared to meet US securities law requirements and is necessary
to update Westpac’s US debt issuance programs.
As the US Interim Financial Results Announcement has been prepared to meet US requirements, its
presentation differs in some respects from Westpac’s 2020 Interim Financial Results, incorporating the
requirements of Appendix 4D (lodged with the ASX on 4 May 2020). In particular, the 2020 Interim
Financial Results, incorporating the requirements of Appendix 4D predominately focuses on cash earnings
while the US Interim Financial Results Announcement is focused on Westpac’s consolidated statutory
results.
A copy of the Form 6-K is attached for release to the market.
Yours sincerely,

Tim Hartin
Group Company Secretary

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
May 5, 2020
Commission File Number 1-10167
WESTPAC BANKING CORPORATION
(Translation of registrant’s name into English)
275 KENT STREET, SYDNEY, NEW SOUTH WALES 2000, AUSTRALIA
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
Form 20-F _ Form 40-F …
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): …
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): …

Incorporation by Reference
The information contained in Exhibit 1 to this Report on Form 6-K (excluding the “Auditor’s Independence Declaration” on page 90 and the
“Independent auditor’s review report to the members of Westpac Banking Corporation” on pages 132-133 of such Exhibit) and Exhibit 101 to this Report on Form
6-K shall be incorporated by reference in the prospectuses relating to the Registrant’s securities contained in the Registrant’s Registration Statements on Form F-3
(File Nos. 333-228295, 333-228294 and 333-220373), as such prospectuses may be amended or supplemented from time to time.
Index to Exhibits
Exhibit
No.Description
1
2020 Interim Financial Results – prepared for distribution in the United States of America
101.INSXBRL Instance Document
101.SCHXBRL Taxonomy Extension Schema Document
101.CALXBRL Taxonomy Extension Calculation Linkbase Document
101.DEFXBRL Taxonomy Extension Definition Linkbase Document
101.LABXBRL Taxonomy Extension Labels Linkbase Document
101.PREXBRL Taxonomy Extension Presentation Linkbase Document
Disclosure regarding forward-looking statements
The information contained in this Report on Form 6-K contains statements that constitute “forward-looking statements” within the meaning of section 21E of the
U.S. Securities Exchange Act of 1934. Forward-looking statements are statements about matters that are not historical facts. Forward-looking statements appear in a
number of places in this Report and include statements regarding our intent, belief or current expectations with respect to our business and operations, market
conditions, results of operations and financial condition.
We use words such as ‘will’, ‘may’, ‘expect’, ‘indicative’, ‘intend’, ‘seek’, ‘would’, ‘should’, ‘could’, ‘continue’, ‘plan’, ‘aim’, ‘probability’, ‘risk’, ‘forecast’,
‘likely’, ‘estimate’, ‘anticipate’, ‘believe’ or other similar words to identify forward-looking statements. These forward-looking statements reflect our current views
with respect to future events and are subject to change, certain risks, uncertainties and assumptions which are, in many instances, beyond our control and have been
made based upon management’s expectations and beliefs concerning future developments and their potential effect upon us. There can be no assurance that future
developments will be in accordance with our expectations or that the effect of future developments on us will be those anticipated. Should one or more of the risks or
uncertainties materialize, or should underlying assumptions prove incorrect, actual results could differ materially from the expectations described in this Report.
Factors that may impact on the forward-looking statements made include, but are not limited to, those described in the section entitled ‘Risk factors’ in Westpac’s
2020 Interim Financial Results on Form 6-K filed with the U.S. Securities and Exchange Commission, as well as the ongoing impact of COVID-19. When relying
on forward-looking statements to make decisions with respect to us, investors and others should carefully consider such factors and other uncertainties and events.
We are under no obligation, and do not intend, to update any forward-looking statements contained in this Report, whether as a result of new information, future
events or otherwise, after the date of this Report.

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
WESTPAC BANKING CORPORATION
(Registrant)
Date:May 5, 2020By: /s/ Yvette Adiguzel
Yvette Adiguzel
Tier One Attorney

Exhibit 1
2020
Interim
Financial Results
THE INTERIM FINANCIAL RESULTS ANNOUNCEMENT HAS BEEN
PREPARED FOR DISTRIBUTION IN THE UNITED STATES OF AMERICA
Westpac Banking Corporation
ABN 33 007 457 141

ii2020 Interim Financial Results
Introduction
This Interim Financial Results Announcement has been prepared for distribution in the United States.
Our interim period refers to the six months ended 31 March 2020 (First Half 2020). Throughout this Interim Financial Results Announcement, we also
refer to the six months ended 31 March 2019 (First Half 2019) and the six months ended 30 September 2019 (Second Half 2019).
The selected financial information for First Half 2020, First Half 2019 and Second Half 2019 contained in this Interim Financial Results Announcement
is based on the financial statements contained in the unaudited consolidated Interim Financial Report for Westpac Banking Corporation (Westpac)
and its controlled entities (Group) for the six months ended 31 March 2020. The Interim Financial Report has been prepared and presented in
accordance with Australian Accounting Standards (AAS) as they relate to interim financial reports. The Interim Financial Report also complies with
International Financial Reporting Standards as issued by the International Accounting Standards Board (IASB) as they relate to interim financial
reports.
All dollar values in this Interim Financial Results Announcement are in Australian dollars unless otherwise noted. References to ‘dollars’, ‘dollar
amounts’, ‘$’, ‘AUD’ or ‘A$’ are to Australian dollars, references to ‘US$’, ‘USD’ or ‘US dollars’ are to United States dollars and references to ‘NZ$’,
‘NZD’ or ‘NZ dollars’ are to New Zealand dollars. Solely for the convenience of the reader, certain Australian dollar amounts have been translated into
US dollars at a specified rate. These translations should not be construed as representations that the Australian dollar amounts actually represent
such US dollar amounts or have been or could be converted into US dollars at the rate indicated. Unless otherwise stated, the translation of
Australian dollar amounts into US dollar amounts has been made at the rate of A$1 = US$0.6139, the noon buying rate in New York City for cable
transfers in Australian dollars as certified for customs purposes by the Federal Reserve Bank of New York (the noon buying rate) on 31 March 2020.
Refer to Section 5.7 for information regarding the rates of exchange between the Australian dollar and the US dollar applied by the Group as part of
its operating activities for First Half 2020, Second Half 2019 and First Half 2019.
In addition to discussing the AAS financial information in this Interim Financial Results Announcement, we also discuss the following non-AAS
financial information:
Cash earnings policy
In assessing financial performance, including divisional results, Westpac Group uses a measure of performance referred to as ‘cash earnings’. Cash
earnings is viewed as a measure of the level of profit that is generated by ongoing operations and is therefore considered in assessing distributions,
including dividends. Cash earnings is neither a measure of cash flow nor net profit determined on a cash accounting basis, as it includes both cash
and non-cash adjustments to statutory net profit.
Management believes this allows the Group to more effectively assess performance for the current period against prior periods and to compare
performance across business divisions and across peer companies.
To determine cash earnings, three categories of adjustments are made to reported results:
•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.
Outlined in Section 6.1 are the cash earnings adjustments to the reported result.
Average Ordinary Equity
Average ordinary equity is calculated as the daily average of total equity less average non-controlling interests. Management believes this measure of
average ordinary equity is useful in the calculation of return on equity as it removes the impact of equity attributable to non-controlling interests.
Other companies may use different methodologies to calculate average ordinary equity or similar non-AAS financial measures.

2020 Interim Financial Results
iii
Table of contents
Index
1.0Group results1
1.1 Reported results1
1.2 Key financial information2
1.3 Market share and system multiple metrics4
2.0Review of Group operations5
2.1 Performance overview5
2.2 Review of reported results15
2.3 Credit quality27
2.4 Balance sheet and funding29
2.5 Capital and dividends34
2.6 Sustainability performance40
3.0Divisional results46
3.1 Consumer48
3.2 Business52
3.3 Westpac Institutional Bank55
3.4 Westpac New Zealand57
3.5 Group Businesses60
4.02020 Interim Financial Report62
4.1 Directors’ report63
4.2 Consolidated income statement92
4.3 Consolidated statement of comprehensive income93
4.4 Consolidated balance sheet94
4.5 Consolidated statement of changes in equity95
4.6 Consolidated cash flow statement96
4.7 Notes to the consolidated financial statements97
4.8 Statutory statements131
5.0Other information134
5.1 Disclosure regarding forward-looking statements134
5.2 References to websites135
5.3 Credit ratings135
5.4 Dividend reinvestment plan135
5.5 Information on related entities135
5.6 Financial calendar and Share Registry details136
5.7 Exchange rates140
5.8 Group earnings reconciliation140
6.0Cash earnings supplementary information143
6.1 Cash earnings adjustments143
7.0Glossary144

iv2020 Interim Financial Results
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 released4 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.

2020 Interim Financial Results1
Group Results
1.0Group results
1.1Reported results 1
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 YearHalf Year% Mov’t
1
March
2020
March
2020
Sept
2019
March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
$mUS$A$A$A$
Net interest income5,5259,0008,6448,26349
Net fee income463755829826(9)(9)
Net wealth management and insurance income285465703326(34)43
Trading income282460492437(7)5
Other income(45)(76)2127largelarge
Net operating income before operating expenses and
impairment charges6,51010,60410,6709,979(1)6
Operating expenses(3,795)(6,181)(5,015)(5,091)2321
Impairment charges(1,374)(2,238)(461)(333)largelarge
Profit before income tax1,3412,1855,1944,555(58)(52)
Income tax expense(610)(994)(1,580)(1,379)(37)(28)
Net profit for the period7311,1913,6143,176(67)(63)
Net profit attributable to non-controlling interests-(1)(3)(3)(67)(67)
Net profit attributable to owners of WBC7311,1903,6113,173(67)(62)
Effective tax rate45.5%45.5%30.4%30.3%largelarge
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 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. 7

2 2020 Interim Financial Results
Group Results
1.2
Key financial information
1
Half YearHalf YearHalf YearHalf Year
MarchMarchSeptMarch% Mov’t
2020202020192019Mar 20 -Mar 20 -
US$A$A$A$Sept 19Mar 19
Shareholder value
Earnings per ordinary share (cents)
2
20.433.2104.192.3(68)(64)
Weighted average ordinary shares (millions)
3
3,5743,5743,4643,43634
Fully franked dividends per ordinary share (cents)
4
TBDTBD8094TBDTBD
Dividend payout ratio
4
TBDTBD77.26%102.00%TBDTBD
Return on average ordinary equity
5
3.52%3.52%11.24%10.05%largelarge
Average ordinary equity ($m)
6
41,51567,62564,07863,34867
Average total equity ($m)
7
41,54867,67864,12663,40067
Net tangible asset per ordinary share ($)
8
9.4715.4315.3615.12-2
Business performance
Interest spread
9
2.08%2.08%1.99%1.89%9 bps19 bps
Benefit of net non-interest bearing assets, liabilities and
equity
10
0.13%0.13%0.16%0.20%(3 bps)(7 bps)
Net interest margin
11
2.21%2.21%2.15%2.09%6 bps12 bps
Average interest earning assets ($m)499,083812,971803,165794,66012
Expense to income ratio
12
58.29%58.29%47.00%51.02%largelarge
Capital, funding and liquidity
Common equity Tier 1 capital ratio
- APRA Basel III10.81%10.81%10.67%10.64%14 bps17 bps
- Internationally comparable15.81%15.81%15.85%16.17%(4 bps)(36 bps)
Credit risk weighted assets (credit RWA) ($m)226,616369,142367,864362,762-2
Total risk weighted assets (RWA) ($m)272,513443,905428,794419,81946
Liquidity coverage ratio (LCR)154%154%127%138%largelarge
Net stable funding ratio (NSFR)117%117%112%113%large396 bps
Asset quality
Gross impaired exposure to gross loans0.30%0.30%0.25%0.24%5 bps6 bps
Gross impaired exposure to equity and total provisions2.93%2.93%2.54%2.57%39 bps36 bps
Gross impaired exposure provisions to gross impaired
exposure
13
50.09%50.09%44.92%45.74%largelarge
Total committed exposures (TCE) ($bn)6641,0821,0501,04733
Total stressed exposures as a % of TCE
14
1.32%1.32%1.20%1.10%12 bps22 bps
Total provisions to gross loans80 bps80 bps54 bps56 bps26 bps24 bps
Mortgages 90+ day delinquencies0.87%0.87%0.82%0.75%5 bps12 bps
Other consumer loans 90+ day delinquencies1.94%1.94%1.69%1.80%25 bps14 bps
Collectively assessed provisions to credit RWA140 bps140 bps95 bps98 bps45 bps42 bps
Balance sheet ($m)
Loans441,810719,678714,770714,29711
Total assets594,048967,662906,626891,06279
Deposits and other borrowings357,855582,920563,247555,00735
Total liabilities552,520900,016841,119827,12779
Total equity41,52867,64665,50763,93536
Wealth Management
Average Group Funds ($bn)137.9224.6221.8207.318
Life insurance in-force premiums (Australia) ($m)7421,2081,2121,259-(4)
General insurance gross written premiums (Australia) ($m)168273279259(2)5

2020 Interim Financial Results3
Group Results
1Averages are based on a six month period.
2Based on the weighted average number of fully paid ordinary shares outstanding for the relevant six month period. Earnings are calculated as net profit attributable to owners of
WBC. 1
3Weighted average number of fully paid ordinary shares listed on the ASX for the relevant period less Westpac shares held by the Group (“Treasury shares”).
4.The Board has deferred the decision on determining an interim dividend and no dividend will be paid in June 2020.
5Calculated as net profit attributable to owners of WBC divided by average ordinary equity (annualised).
6Calculated as average total equity less average non-controlling interests.
7Average total equity is the average balance of shareholders’ equity, including non-controlling interests.
8Total equity attributable to owners of WBC after deducting intangible assets divided by the number of ordinary shares outstanding, less Treasury shares held.
9Calculated as the difference between the average yield on all interest earning assets and the average rate paid on all interest bearing liabilities (annualised).
10Calculated as the difference between net interest margin and interest spread, and represents benefits derived from holdings of the net non-interest bearing component of the balance
sheet (including equity) (annualised).
11Calculated by dividing net interest income by average interest earning assets (annualised). 2
12Calculated as Group operating expenses excluding impairment charges divided by Group net operating income before operating expenses and impairment charges.
13Impairment provisions relating to impaired exposures include individually assessed provisions plus the proportion of the collectively assessed provisions that relate to impaired
exposures.
14Stressed exposures include program managed loans 90 days plus and non-performing transaction managed loans.

4 2020 Interim Financial Results
Group Results
1.3Market share and system multiple metrics
1.3.1Market share
As at
31 March
2020
As at
30 Sept
2019
As at
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%
1.3.2System multiples
Half Year
March
2020
Half Year
Sept
2019
Half Year
March
2019
Australia
Banking system (APRA)
1
Housing credit
2,6
n/a0.60.5
Cards
6
n/an/an/a
Household deposits0.30.60.1
Business deposits0.62.60.1
Financial system (RBA)
1
Housing credit
2,6
n/a0.60.5
Business credit
6
0.2n/an/a
Retail deposits
3,6
0.30.7n/a
New Zealand (RBNZ)
4
Consumer lending1.01.10.4
Household deposits
1.20.21.4
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.

2020 Interim Financial Results5
Review of Group operations
2.0Review of Group operations
Section 2 ‘Review of Group operations’ focuses on our Group results and key drivers for movements, with reference to our significant divisions. For
more commentary at the divisional level, refer to Section 3 ‘Divisional results’.
2.1Performance overview
Overview
Half YearHalf YearHalf YearHalf Year% Mov’t
1
March
2020
March
2020
Sept
2019
March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
$mUS$A$A$A$
Net interest income5,5259,0008,6448,26349
Net fee income463755829826(9)(9)
Net wealth management and insurance income285465703326(34)43
Trading income282460492437(7)5
Other income(45)(76)2127largelarge
Net operating income before operating expenses and
impairment charges6,51010,60410,6709,979(1)6
Operating expenses(3,795)(6,181)(5,015)(5,091)2321
Profit before impairment charges and income tax expense2,7154,4235,6554,888(22)(10)
Impairment charges(1,374)(2,238)(461)(333)largelarge
Profit before income tax1,3412,1855,1944,555(58)(52)
Income tax expense(610)(994)(1,580)(1,379)(37)(28)
Net profit for the period7311,1913,6143,176(67)(63)
Net profit attributable to non-controlling interests-(1)(3)(3)(67)(67)
Net profit attributable to owners of WBC7311,1903,6113,173(67)(62)
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 lower over both Second Half 2019 and First Half 2019 due to the immediate and expected flow-on
impacts of COVID-19 on impairment charges, along with two other 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 net profit attributable to owners of WBC 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 net profit attributable to owners of WBC 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:
1Percentage movement represents an increase/(decrease) to the relevant comparative period.

6 2020 Interim Financial Results
Review of Group operations
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.
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.

2020 Interim Financial Results7
Review of Group operations
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, net profit attributable to owners of WBC for First Half 2020 was $1,190 million, down $2,421 million or 67% on Second Half 2019
and $1,983 million lower (or 62%) than First Half 2019. The First Half 2020 result was significantly impacted by higher impairment charges along with
costs associated with AUSTRAC proceedings including a provision for a potential penalty and estimated customer refunds, payments, associated
costs and litigation. These items help explain Westpac’s performance and are explained later in this overview with more information in Section 4.7,
Note 14.
Estimated customer refunds, payments, associated costs and litigation and costs associated with AUSTRAC proceedings including a provision for a
potential penalty totalled $1,285 million in First Half 2020 (compared to $377 million in Second Half 2019 and $753 million in First Half 2019).
Excluding estimated customer refunds, payments, associated costs and litigation, costs associated with AUSTRAC proceedings including a provision
for a potential penalty, and the restructuring of the Wealth business in Second Half 2019, net profit attributable to owners of WBC was $2,475 million,
down $1,513 million or 38% over Second Half 2019 and down 37% compared to First Half 2019, with most of that decline due to the increase in
impairment charges in First Half 2020. Net profit attributable to owners of WBC excluding estimated customer refunds, payments, associated costs
and litigation, costs associated with AUSTRAC proceedings including a provision for a potential penalty, and the restructuring of the Wealth business
is summarised later in this overview.
Net interest income was 4% higher over Second Half 2019, with a 1% increase in average interest earning assets and 6 basis point increase in net
interest margin. 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 21% was mostly due to higher insurance claims from severe storms and bushfires while
wealth income was also lower. Operating expenses were higher, up 23% over Second Half 2019, with most of the increase due to costs associated
with AUSTRAC proceedings including a provision for a potential penalty. Excluding costs associated with estimated customer refunds and payments
and litigation, costs associated with AUSTRAC proceedings including a provision for a potential penalty, and the restructuring of the Wealth business
in Second Half 2019, operating 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 rise in stressed exposures at 31 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 Second Half 2019 and up
$1,905 million over
First Half 2019. Assessing the likely impact of the COVID-19 pandemic 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 net profit attributable to owners of WBC, combined with capital raised in First Half 2020, translated to a decline in return and per share
metrics. The return on average ordinary equity was 3.52% in First Half 2020, down from 11.24% in Second Half 2019. Earnings per ordinary share
were 33.2 cents in First Half 2020, down 68% over Second Half 2019 and 64% over First Half 2019. Excluding estimated customer refunds,
payments, associated costs and litigation and associated with AUSTRAC proceedings including a provision for a potential penalty, earnings per
ordinary share were 69.2 cents.
Net profit attributable to owners of WBC was lower across all divisions with a decline in net operating income before operating expenses and
impairment charges and higher impairment charges across the Group.
Reviewing movements on the prior corresponding period, in First Half 2020 net profit attributable to owners of WBC was 62% lower than First Half
2019. Excluding estimated customer refunds, payments, associated costs and litigation, costs associated with AUSTRAC proceedings including a
provision for a potential penalty, and the restructuring of the Wealth business in First Half 2019, First Half 2020 net profit attributable to owners of
WBC was 37% lower than First Half 2019. Most of this decline was from the increase in impairment charges.

8 2020 Interim Financial Results
Review of Group operations
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 liquidity ratios remained 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 First Half 2020 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 net profit attributable to owners of WBC, 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 12% of net profit attributable to owners of WBC, 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 47.5%.
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 Statem
ent 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.

2020 Interim Financial Results9
Review of Group operations
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.
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 estimated customer refunds,
payments, associated costs and litigation in First Half 2020.
The cost of major items in First Half 2020 related to:
5
•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.

10 2020 Interim Financial Results
Review of Group operations
Financial performance First Half 2020 – Second Half 2019
Net profit attributable to owners of WBC of $1,190 million was down $2,421 million or 67% over Second Half 2019. The decline in net profit
attributable to owners of WBC was principally due to higher impairment charges and higher estimated customer refunds, payments, associated costs
and litigation and costs associated with AUSTRAC proceedings including a provision for a potential penalty.
To help explain Westpac’s performance, certain items in this result are described as ‘customer refunds, payments, associated costs and litigation’,
‘costs associated with AUSTRAC proceedings including a provision for a potential penalty’, and ‘restructuring of the Wealth business’. These include:
•Provisions for estimated customer refunds and payments, associated costs, and litigation;
•A provision for a potential penalty relating to AUSTRAC’s civil proceedings;
•Costs associated with Westpac’s AUSTRAC response plan; and
•Restructuring costs associated with the reset of Westpac’s wealth strategy in 2019.
Throughout this Results Announcement, the terms ‘estimated customer refunds and payments’, ‘costs associated with estimated customer refunds
and payments and litigation’, ‘costs associated with AUSTRAC proceedings including a provision for a potential penalty’, and ‘restructuring of the
Wealth business’ refer only to these items, which are also discussed further in Section 4.7, note 14.
These items impact net profit attributable to owners of WBC, the major income statement line items and certain performance metrics. The following
tables present the impact of these items on major income statement line items (Table 1), the quantum of these items and their impact on key line
items in the income statement (Table 2) and certain performance metrics (Table 3) over the last three halves.

2020 Interim Financial Results11
Review of Group operations
Table 1: Impact of estimated customer refunds, payments, associated costs and litigation, costs associated with AUSTRAC proceedings
including a provision for a potential penalty, and the restructuring of the Wealth business
Half Year March 2020 Half Year Sept 2019Half Year March 2019
$m
Costs
associated
with
AUSTRAC
proceedings
including a
provision for
a potential
penalty
Estimated
customer
refunds,
payments,
associated
costs and
litigation Total
Estimated
customer
refunds,
payments,
associated
costs and
litigation
Wealth
Restructuring Total
Estimated
customer
refunds,
payments,
associated
costs and
litigation
Wealth
Restructuring Total
Net interest income-(106)(106)(132)-(132)(212)-(212)
Net fee income-(147)(147)(118)-(118)(165)-(165)
Net wealth management and
insurance income-1616(102)-(102)(435)-(435)
Non-interest income-(131)(131)(220)-(220)(600)-(600)
Net operating income before
operating expenses and
impairment charges-(237)(237)(352)-(352)(812)-(812)
Staff expenses-(61)(61)(33)(27)(60)(66)(142)(208)
Technology expenses-(3)(3)(2)(13)(15)(9)(11)(20)
Other expenses(1,058)(68)(1,126)(101)(11)(112)(9)(37)(46)
Operating expenses(1,058)(132)(1,190)(136)(51)(187)(84)(190)(274)
Profit before income tax(1,058)(369)(1,427)(488)(51)(539)(896)(190)(1,086)
Income tax expense311111421471516227954333
Net profit attributable to owners
of WBC(1,027)(258)(1,285)(341)(36)(377)(617)(136)(753)
Table 2. Impact of estimated customer refunds, payments, associated costs and litigation, costs associated with AUSTRAC proceedings
including a provision for a potential penalty, and the restructuring of the Wealth business, and impact on movements in key line items 4
Impact in Key Line Items
1
($m)
Growth
Mar 20 - Sep 19 (%)
$m
Half Year
March
2020
Half Year
Sept
2019As reported
Ex impact
of certain
items
1
Net interest income(106)(132)44
Non-interest income(131)(220)(21)(23)
Operating expenses(1,190)(187)233
Profit before impairment charges and income tax expense(1,427)(539)(22)(6)
Impairment charges--largelarge
Income tax expense142162(37)(35)
Net profit attributable to owners of WBC(1,285)(377)(67)(38)
Impact in Key Line Items
1
($m)
Growth
Mar 20 - Sep 19 (%)
$m
Half Year
March
2020
Half Year
March
2019As reported
Ex impact
of certain
items
1
Net interest income(106)(212)97
Non-interest income(131)(600)(7)(25)
Operating expenses(1,190)(274)213
Profit before impairment charges and income tax expense(1,427)(1,086)(10)(2)
Impairment charges--largelarge
Income tax expense142333(28)(34)
Net profit attributable to owners of WBC(1,285)(753)(62)(37)
1.Excluding impact of estimated customer refunds, payments, associated costs and litigation, costs associated with AUSTRAC proceedings including a provision for a potential penalty,
and the restructuring of the Wealth business, unless otherwise stated.

12 2020 Interim Financial Results
Review of Group operations
Table 3. Certain performance metrics including and excluding estimated customer refunds, payments, associated costs and litigation,
costs associated with AUSTRAC proceedings including a provision for a potential penalty, and the restructuring of the Wealth business
Half Year March 2020Half Year Sept 2019Half Year March 2019
%As reported
Ex impact of
certain
items
1
As reported
Ex impact of
certain
items
1
As reported
Ex impact of
certain
items
1
Return on equity3.52%7.32%11.24%12.41%10.05%12.43%
Net interest margin2.21%2.24%2.15%2.18%2.09%2.14%
Expense to income ratio58.29%46.04%47.00%43.80%51.02%44.64%
Net profit attributable to owners of WBC in First Half 2020 excluding estimated customer refunds, payments, associated costs and litigation, costs
associated with AUSTRAC proceedings including a provision for a potential penalty, and the restructuring of the Wealth business in Second Half 2019
was $2,475 million, down $1,513 million or 38% over Second Half 2019. The decline was principally due to higher impairment charges and lower
wealth and insurance income.
Net interest income increased $356 million (up 4%) over Second Half 2019, with the increase due to 1% increase in average interest earning assets
and higher Treasury and markets income. Estimated customer refunds and payments had little impact on movements in net interest income.
Lending was up 1% with a higher contribution from New Zealand and other overseas lending partially offset by a decline in Australian lending. Growth
in New Zealand was evenly spread across mortgages and business lending and its contribution was further supported by a weaker A$ 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 margin was up 6 basis points compared to Second Half 2019. The increase reflected a $411 million increase in Treasury and Markets
income. Excluding this, net interest margin decreased by 3 basis points, 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 21% lower than Second Half 2019 and excluding estimated customer refunds and payments was 23% lower. 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.
Expenses increased 23% mostly from higher costs associated with estimated customer refunds and payments and litigation and costs associated
with AUSTRAC proceedings including a provision for a potential penalty. Excluding costs associated with estimated customer refunds and payments
and litigation, costs associated with AUSTRAC proceedings including a provision for a potential penalty, and the restructuring of the Wealth business
in Second Half 2019, 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 a
nd 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 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 effective income tax rate was 45.5% for First Half 2020, which is higher than Australia’s corporate tax rate of 30%. Excluding the impact of
the non-deductible AUSTRAC penalty provision, the effective tax rate would have been 32.2%.
1.Excluding impact of estimated customer refunds, payments, associated costs and litigation, costs associated with AUSTRAC proceedings including a provision for a potential penalty,
and the restructuring of the Wealth business, unless otherwise stated.

2020 Interim Financial Results13
Review of Group operations
Financial performance summary First Half 2020 - First Half 2019
Net profit attributable to owners of WBC of $1,190 million was down $1,983 million or 62% over First Half 2019. The decline was principally due to
higher impairment charges and higher expenses related to the AUSTRAC response plan. Excluding estimated customer refunds, payments,
associated costs and litigation, costs associated with AUSTRAC proceedings including a provision for a potential penalty, and the restructuring of the
Wealth business in First Half 2019, net profit attributable to owners of WBC of $2,475 million was $1,451 million lower than First Half 2019.
Net interest income was 9% higher over First Half 2019, principally due to lower estimated customer refunds and payments and higher average
interest earning assets. Excluding estimated customer refunds and payments, net interest income was 7% 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 estimated customer
refunds and payments. Excluding estimated customer refunds and payments, the margin excluding Treasury and markets was down 5 basis points.
Lower interest rates and competition were behind the decline.
Non-interest income was lower over the year, down 25% excluding estimated customer refunds and payments. 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 up 21% from higher costs associated with estimated customer refunds and payments and litigation and costs associated with
AUSTRAC proceedings including a provision for a potential penalty. Excluding costs associated with estimated customer refunds and payments and
litigation, costs associated with AUSTRAC proceedings including a provision for a potential penalty, and the restructuring of the Wealth business in
First Half 2019, expenses were up 4%. The rise was due to higher regulatory and compliance spending and an increase in software amortisation.
Asset quality deteriorated over First Half 2020 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 higher, up $1,905 million to $2,238 million, reflecting the rise in stress and the COVID-19 related provisions.

14 2020 Interim Financial Results
Review of Group operations
Divisional Net Profit After Tax (NPAT) Summary
1
Summary of movement in NPAT by Business Divisions (First half 2020 - First Half 2019)
Consumer NPAT decreased $226 million (or 14%) compared to First 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. Impairment charges were higher reflecting COVID-19 impacts.
Business NPAT decreased $692 million (or 56%) compared to First Half 2019 from higher impairment charges, lower net interest margins and a
decline in wealth income. Impairment charges were higher reflecting COVID-19 impacts.
Westpac Institutional Bank NPAT decreased $369 million (or 68%) compared to First 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 also contributed to the decline in NPAT. Impairment charges were higher reflecting COVID-19 impacts.
Westpac New Zealand NPAT decreased $227 million (or 44%) compared to First Half 2019. The decline was due to higher impairment charges, lower
non-interest income from further fee simplification initiatives and increases in expenses including from higher risk, regulatory and compliance costs
along with a rise in expenses associated with improving work arrangements. Impairment charges were higher reflecting COVID-19 impacts.
Group Businesses NPAT decreased $469 million (or 62%) compared to First Half 2019. This was mostly due to a $900 million (non-deductible)
provision for a potential penalty relating to AUSTRAC’s civil proceedings and higher impairment charges related to COVID-19.
1.The NPAT graph illustrates the movements in NPAT (in $ value) for each division.
2.Certain items include estimated customer refunds, payments, associated costs and litigation, costs associated with AUSTRAC proceedings including a provision for a potential
penalty and the restructuring of the Wealth business.

2020 Interim Financial Results15
Review of Group operations
2.2Review of reported results
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 ($m)9,0008,6448,26349
Average interest earning assets ($m)812,971803,165794,66012
Group net interest margin (%)2.21%2.15%2.09%6 bps12 bps
First Half 2020 – Second Half 2019
Net interest income increased $356 million or 4% 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;2
•Group net interest margin increased 6 basis points, reflecting a $411 million increase in Treasury and Markets revenue. This was primarily driven
by fair value movements in economic hedges and positioning for interest rate changes in Treasury; and
•Group net interest margin excluding Treasury and Markets 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.
First Half 2020 – First Half 2019
Net interest income increased $737 million or 9% compared to First Half 2019. Key features include:
•A 2% increase 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 12 basis points. This was driven by a $663 million increase in Treasury and Markets revenue due to fair
value movements in economic hedges and positioning for interest rate changes; and
•Group net interest margin excluding Treasury and Markets 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 lower short term funding costs, pricing changes on Australian variable rate mortgages, and lower estimated customer refunds and
payments.
1.Refer to Section 4 Note 3 for reported results breakdown.

16 2020 Interim Financial Results
Review of Group operations
2.2.2
Loans
1
As atAs atAs at% Mov’t
$m
31 March
2020
30 Sept
2019
31 March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
Australia616,328619,564618,811(1)-
Housing445,663449,201447,164(1)-
Personal19,85421,24722,463(7)(12)
Business155,322152,360152,42422
Provisions(4,511)(3,244)(3,240)3939
New Zealand (A$)85,17678,42879,00098
New Zealand (NZ$)87,42584,62682,47036
Housing53,41151,50449,58448
Personal1,6521,8441,937(10)(15)
Business32,86731,59931,30845
Provisions(505)(321)(359)5741
Other overseas (A$)18,17416,77816,486810
Total loans719,678714,770714,29711
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.

2020 Interim Financial Results17
Review of Group operations
2.2.3
Deposits and other borrowings
1,2
As atAs atAs at% Mov’t
$m
31 March
2020
30 Sept
2019
31 March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
Customer deposits
Australia460,561449,066433,73636
At call274,071247,161222,7331123
Term141,933158,564168,313(10)(16)
Non-interest bearing44,55743,34142,69034
New Zealand (A$)67,27359,74361,516139
New Zealand (NZ$)69,05064,46464,21878
At call26,50424,05324,520108
Term32,76833,54033,320(2)(2)
Non-interest bearing9,7786,8716,3784253
Other overseas (A$)15,96715,70716,3912(3)
Total customer deposits543,801524,516511,64346
Certificates of deposit39,11938,73143,3641(10)
Australia21,02926,25931,123(20)(32)
New Zealand (A$)3,4521,058858largelarge
Other overseas (A$)14,63811,41411,3832829
Total deposits and other borrowings582,920563,247555,00735
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. 6
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.

18 2020 Interim Financial Results
Review of Group operations
2.2.4Net interest margin
First Half 2020 – Second Half 2019
•Group net interest margin of 2.21% increased 6 basis points from Second Half 2019 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 from 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 9 basis points due to higher Treasury driven by positioning for interest rate changes.
1.Certain items relate to estimated customer refunds and payments.

2020 Interim Financial Results19
Review of Group operations
First Half 2020 – First Half 2019
Group net interest margin of 2.21% increased 12 basis points from First Half 2019. Estimated customer refunds and payments were lower, improving
margin by 2 basis points.
•Group net interest margin excluding Treasury and Markets decreased 3 basis points to 2.01% 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 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 15 basis points on First Half 2019 driven by positioning for interest rate changes.
1.Certain items relate to estimated customer refunds and payments.

20 2020 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 income755829826(9)(9)
Net wealth management and insurance income465703326(34)43
Trading income460492437(7)5
Other income(76)2127largelarge
Total non-interest income1,6042,0261,716(21)(7)
First Half 2020 – Second Half 2019
Non-interest income decreased $422 million or 21% compared to Second Half 2019. Key features include:
•$89 million decrease from estimated customer refunds and payments; and
•Except for these items, non-interest income decreased $511 million or 23% primarily due to lower net wealth management and insurance income.
Net fee income
Net fee income decreased $74 million or 9% compared to Second Half 2019. This included a net increase in estimated customer refunds and
payments of $29 million primarily related to financial planning. Except for these 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 $238 million or 34% compared to Second Half 2019. This included a net decrease in
estimated customer refunds and payments of $118 million primarily related to financial planning. Except for these items, net wealth management and
insurance income decreased $356 million or 44%, 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 $124 million) primarily due to the write-off of deferred acquisition costs (DAC) from changes to the provision of
group life insurance and lower policyholder tax recoveries;
•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 $32 million or 7% 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.
Other income
Other income decreased $78 million compared to Second Half 2019 primarily reflecting lower asset sales in the First Half 2020 and a decrease in the
valuation of Pendal.
1.Refer to Section 4, Note 4 for reported results breakdown.

2020 Interim Financial Results21
Review of Group operations
First Half 2020 – First Half 2019
Non-interest income decreased $112 million or 7% compared to First Half 2019, key features include:
•$469 million net decrease in estimated customer refunds and payments; and
•Except for these items non-interest income decreased $581 million or 25% mainly from reduced net wealth management and insurance income.
Net fee income
Net fee income decreased $71 million or 9% compared to First Half 2019, including an $18 million net decrease in estimated customer refunds and
payments primarily related to financial planning. Except for these 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 $139 million or 43% compared to First Half 2019. This included a net decrease in estimated
customer refunds and payments of $451 million primarily related to financial planning. Except for these items, net wealth management and insurance
income decreased $312 million, 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 $167 million) primarily due to the write-off of DAC from changes to the provision of group life insurance and lower
policyholder tax recoveries;
•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 increased $23 million or 5% compared to First Half 2019, primarily driven by:
•Higher non-customer markets income across FX and commodities (up $99 million); partly offset by
•Derivative valuation adjustment from a widening in credit spreads (down $82 million). 4
Other income
Other income was down $203 million compared to First Half 2019, primarily due to a revaluation loss in the First Half 2020 and higher gains on asset
sales and revaluations of fintech investments in First Half 2019.
2.2.6Group funds
$bn
As at 31
March
2020InflowsOutflows
Net
flows
Other
Mov’t
As at
30 Sept
2019
% Mov’t
Mar 20 -
Sept 19
As at
31 March
2019
% Mov’t
Mar 20 -
Mar 19
Superannuation35.32.0(2.2)(0.2)(5.1)40.6(13)38.9(9)
Platforms109.015.1(15.9)(0.8)(16.7)126.5(14)120.8(10)
Packaged Funds38.84.7(3.8)0.9(5.7)43.6(11)39.8(3)
Other2.8---(1.9)4.7(40)3.6(22)
Total Australia
funds185.921.8(21.9)(0.1)(29.4)215.4(14)203.1(8)
Total NZ funds
(A$)10.61.7(1.7)-(0.1)10.7(1)10.42
Total Group
funds196.523.5(23.6)(0.1)(29.5)226.1(13)213.5(8)
Total NZ funds
(NZ$)10.91.8(1.8)-(0.6)11.5(5)10.9-

22 2020 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 income678168(17)(1)
Non-interest income434435486-(11)
Total Markets income501516554(3)(10)
Customer income420455438(8)(4)
Non-customer income1741141275337
Derivatives valuation adjustments(93)(53)(11)75large
Total Markets income501516554(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 20207.033.43.3
Half Year September 20199.043.03.3
Half Year March 20199.617.56.3
The Components of Markets VaR are as follows:
AverageHalf YearHalf YearHalf Year
$m
March
2020
Sept
2019
March
2019
Interest rate risk4.02.83.2
Foreign exchange risk1.41.52.0
Equity risk0.10.1-
Commodity risk
3
2.28.28.1
Credit and other market risks
4
5.12.32.8
Diversification benefit(5.8)(5.9)(6.5)
Net market risk7.09.09.6
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).

2020 Interim Financial Results23
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)(2,645)2(8)
Occupancy expenses(514)(497)(526)3(2)
Technology expenses(1,277)(1,180)(1,139)812
Other expenses(1,946)(945)(781)106149
Total operating expenses(6,181)(5,015)(5,091)2321
First Half 2020 – Second Half 2019
Operating expenses increased $1,166 million or 23% compared to Second Half 2019. Excluding costs associated with AUSTRAC proceedings
including a provision for a potential penalty ($1,058 million), costs associated with estimated customer refunds and payments and litigation, and costs
associated with the restructuring of the Wealth business ($55 million lower), operating expenses were up $163 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 $17 million or 3% 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 costs associated with estimated customer refunds and
payments and litigation, and costs associated with the restructuring of the Wealth business ($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 costs associated with AUSTRAC proceedings including
a provision for a potential penalty ($1,058 million), costs associated with estimated customer refunds and payments and litigation, and costs
associated with the restructuring of the Wealth business ($44 million lower), other expenses decreased $13 million or 2%.
First Half 2020 – First Half 2019
Operating expenses increased $1,090 million or 21% compared to First Half 2019. Excluding costs associated with AUSTRAC proceedings including
a provision for a potential penalty ($1,058 million), costs associated with estimated customer refunds and payments and litigation, and costs
associated with the restructuring of the Wealth business ($142 million lower), operating expenses increased $174 million or 4% mainly 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 $201 million or 8% compared to First Half 2019. Excluding costs associated with estimated customer refunds and
payments and litigation, and costs associated with the restructuring of the Wealth business ($147 million lower), staff expenses decreased $54 million
or 2%. This was primarily due to a 3% decrease in average FTE from productivity initiatives, exit of the Advice business and BTIM separation costs,
partly offset by annual salary increases.
Occupancy expenses decreased $12 million or 2% compared to First Half 2019, primarily due lower branch numbers (down 54) partially offset by
write-downs of physical assets and annual rental increases. 5
Technology expenses increased $138 million or 12%. Excluding costs associated with estimated customer refunds and payments and litigation, and
costs associated with the restructuring of the Wealth business ($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 costs associated with AUSTRAC proceedings including a provision for a potential
penalty ($1,058 million), costs associated with estimated customer refunds and payments and litigation, and costs associated with the restructuring of
the Wealth business ($22 million higher), other expenses increased $85 million or 12% from increased professional services costs.
1Refer to Section 4 Note 5 for reported results breakdown.

24 2020 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 employees30,91330,32631,0072-
Temporary employees3,2862,9623,234112
FTE34,19933,28834,2413-
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
Expensed2962773317(11)
Capitalised software and fixed assets432506392(15)10
Total728783723(7)1
Growth and productivity296383401(23)(26)
Regulatory change336308195972
Other technology96921274(24)
Total728783723(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).

2020 Interim Financial Results25
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
2,3652,2442,17759
Total additions
1
430511395(16)9
Amortisation expense(393)(376)(318)524
Impairment expense(75)(9)(16)largelarge
Foreign exchange translation8(5)6large33
Balance as at end of period
2,3352,3652,244(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. 6
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.

26 2020 Interim Financial Results
Review of Group operations
2.2.9Impairment 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)106103
Write-backs7069791(11)
Recoveries10010171(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)74108largelarge
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:
oother 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
oincreases 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.

2020 Interim Financial Results27
Review of Group operations
2.2.10 Income tax expense
First Half 2020 – Second Half 2019
The effective tax rate of 45.5% in First Half 2020 was significantly higher than the Second Half 2019 effective tax rate of 30.4%. 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 45.5% in First Half 2020 was also significantly higher than the 30.3% 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.
2.3Credit 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.

28 2020 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.
2.3.1Credit 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:
Impaired0.20%0.17%0.17%
90 days past due and not impaired0.50%0.48%0.43%
Watchlist and substandard0.62%0.55%0.50%
Total stressed exposures1.32%1.20%1.10%
Gross impaired exposures to TCE for business and institutional:
Business Australia0.71%0.61%0.59%
Business New Zealand0.59%0.23%0.41%
Institutional0.08%0.03%0.05%
Mortgage 90+ day delinquencies:
Group0.87%0.82%0.75%
Australia0.94%0.88%0.82%
New Zealand0.27%0.13%0.14%
Other consumer loans 90+ day delinquencies:
Group1.94%1.69%1.80%
Australia1.97%1.77%1.87%
New Zealand1.59%0.82%1.02%
Other
1
:
Gross impaired exposures to gross loans0.30%0.25%0.24%
Gross impaired exposures provisions to gross impaired exposures50.09%44.92%45.74%
Total provisions to gross loans80 bps54 bps56 bps
Collectively assessed provisions to credit risk weighted assets140 bps95 bps98 bps
Total provisions to credit risk weighted assets157 bps107 bps110 bps
Impairment charges to average gross loans annualised62 bps13 bps9 bps
Net write-offs to average loans annualised12 bps15 bps12 bps
2.3.2Movement 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 period1,7631,7491,416125
New and increased - individually managed8975505196373
Write-offs(537)(655)(499)(18)8
Returned to performing or repaid(516)(447)(378)1537
Portfolio managed - new/increased/returned/repaid5725657011(18)
Exchange rate and other adjustments(25)1(10)large150
Balance as at end of period2,1541,7631,7492223
1.Averages are based on a six month period.

2020 Interim Financial Results29
Review of Group operations
2.4Balance sheet and funding
2.4.1Balance sheet
As atAs atAs atAs at% Mov’t
31 March
2020
31 March
2020
30 Sept
2019
31 March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
$mUS$A$A$A$
Assets
Cash and balances with central banks28,12645,81520,05919,486128135
Collateral paid3,2785,3395,9306,103(10)(13)
Trading securities and financial assets measured at fair value through
income statement (FVIS) and investment securities68,799112,069105,18297,843715
Derivative financial instruments34,78456,66129,85921,76590160
Loans441,810719,678714,770714,29711
Life insurance assets1,5802,5749,3679,374(73)(73)
Other assets15,67125,52621,45922,1941915
Total assets
594,048967,662906,626891,06279
Liabilities
Collateral received7,81412,7283,2871,889largelarge
Deposits and other borrowings357,855582,920563,247555,00735
Other financial liabilities20,87033,99629,21529,0131617
Derivative financial instruments29,52248,08929,09623,38465106
Debt issues114,084185,835181,457188,7592(2)
Life insurance liabilities3716047,3777,503(92)(92)
Loan capital15,84325,80721,82616,7361854
Other liabilities6,16110,0375,6144,83679108
Total liabilities
552,520900,016841,119827,12779
Equity
Total equity attributable to owners of WBC41,49467,59065,45463,88436
Non-controlling interests34565351610
Total equity
41,52867,64665,50763,93536
Average balances
Total assets560,100912,364902,253887,15413
Loans and other receivables429,887700,256694,373696,11211
Total equity41,54867,67864,12663,40067
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 5
•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.

30 2020 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.

2020 Interim Financial Results31
Review of Group operations
2.4.2Funding and liquidity risk management
Liquidity risk is the risk that the Group will be unable to fund assets and meet obligations as they become due. This type of risk is inherent for all
banks 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. 4
•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.

32 2020 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
121,01789,88379,7013552
Committed Liquidity Facility (CLF)
1
52,00054,00054,000(4)(4)
Term Funding Facility (TFF)
1
17,897----
Total LCR liquid assets190,914143,883133,7013343
Cash outflows in a modelled 30-day APRA defined stressed scenario
Customer deposits85,92274,86065,8191531
Wholesale funding12,63914,54411,741(13)8
Other flows
2
25,03623,98619,482429
Total123,597113,39097,042927
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 funding627,676606,774606,21734
Required stable funding536,601543,958536,414(1)-
Net stable funding ratio117%112%113%large396 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.

2020 Interim Financial Results33
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 months49,0975.745,3345.458,2447.0
6 to 12 months17,3012.025,5663.122,8602.8
Long term to short term scroll
1
38,5394.430,2553.632,3753.9
Wholesale funding - residual maturity less than 12 months
104,93712.1
101,15512.1113,47913.7
Securitisation9,5231.18,1901.09,4721.1
Greater than 12 months140,97416.3139,32816.6132,08915.9
Wholesale funding - residual maturity greater than 12
months
150,49717.4
147,51817.6141,56117.0
Customer deposits
543,80162.7
524,51662.5511,64361.6
Equity
2
67,6047.8
65,7857.864,3477.7
Total funding
866,839100.0
838,974100.0831,030100.0
Deposits to net loans ratio
As at 31 March
2020
As at 30 Sept
2019
As at 31 March
2019
$mRatio %$mRatio %$mRatio %
Customer deposits543,801524,516511,643
Net loans719,67875.6%714,77073.4%714,29771.6%
Funding view of the balance sheet
$m
Total liquid
assets
Customer
deposits
Wholesale
funding
Customer
franchise
Market
inventoryTotal
As at 31 March 2020
Total assets199,949--673,99493,719967,662
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 assets169,871--670,26166,494906,626
Total liabilities-(524,516)(248,673)-(67,930)(841,119)
Total equity---(65,785)278(65,507)
Total169,871(524,516)(248,673)604,476(1,158)-
Net loans
3
59,278--655,492-714,770
As at 31 March 2019
Total assets151,588--679,71359,761891,062
Total liabilities-(511,643)(255,040)-(60,444)(827,127)
Total equity---(64,347)412(63,935)
Total151,588(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. 7
3.Liquid assets in net loans include internally securitised assets that are eligible for repurchase agreements with the RBA/RBNZ.

34 2020 Interim Financial Results
Review of Group operations
2.5Capital 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 ($m)47,98245,75244,68057
Risk weighted assets (RWA) ($m)443,905428,794419,81946
CET 1 capital ratio10.81%10.67%10.64%14 bps17 bps
Additional Tier 1 capital ratio2.13%2.17%2.20%(4bps)(7bps)
Tier 1 capital ratio12.94%12.84%12.84%10 bps10 bps
Tier 2 capital ratio3.35%2.79%1.78%56 bps157 bps
Total regulatory capital ratio16.29%15.63%14.62%66 bps167 bps
APRA leverage ratio
1
5.66%5.68%5.72%(2bps)(6bps)
Level 1 Regulatory capital structure
CET 1 capital after deductions ($m)48,48246,38043,850511
Risk weighted assets ($m)437,137422,475409,23137
Level 1 CET 1 capital ratio11.09%10.98%10.72%11 bps37 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.
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.

2020 Interim Financial Results35
Review of Group operations
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 NPAT for the half, partially offset by payment of the
final 2019 dividend and higher RWA.
NPAT for First Half 2020 was $1,190 million (27 basis point increase). NPAT 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 NPAT, the reduction in regulatory expected loss
deduction to nil and a higher deduction for deferred tax assets. NPAT was also impacted by additional provisions and costs associated with the
AUSTRAC proceedings and an increase in for estimated customer refunds, payments, associated costs and litigation (totalling $1,285 million after
tax, 29 basis point impact).
Key movements over the half were as follows:
•Capital raised totalling $2.8 billion over the half (62 basis point increase);
•First Half 2020 NPAT (27 basis point increase);
•The 2019 final dividend payment, net of the dividend reinvestment plan (DRP) share issuance (57 basis point decrease);
•Capital deductions and other capital movements (13 basis point increase). This mainly reflects the impact of increased impairment provisions
related to COVID-19, which reduced the regulatory expected loss deduction to nil (25 basis point increase) and a higher deduction for deferred
tax assets (13 basis point decrease). Other capital items increased by 1 basis point;
•Ordinary RWA growth (before model changes, overlays and foreign currency translation) decreased slightly over the period (2 basis point
increase); and
•
Foreign currency impacts from the appreciation of the NZ$ 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.

36 2020 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 ratio15.81%15.85%16.17%(4 bps)(36 bps)
Tier 1 capital ratio18.55%18.64%19.07%(9 bps)(52 bps)
Total regulatory capital ratio22.69%22.08%21.25%61 bps144 bps
Leverage ratio6.28%6.36%6.39%(8 bps)(11 bps)
1.As defined under Attachment D of APS110: Capital Adequacy.

2020 Interim Financial Results37
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
78,28874,80773,55156
Business lending
2
34,49335,47035,294(3)(2)
Sovereign
3
2,1922,0681,653633
Bank
4
6,9568,3397,066(17)(2)
Residential mortgages131,424131,629132,133-(1)
Australian credit cards4,8375,0895,910(5)(18)
Other retail11,59412,39513,082(6)(11)
Small business
5
16,81216,09016,09244
Specialised lending: Property and project finance
6
56,00455,26254,83312
Securitisation
7
5,7475,7495,583-3
Standardised9,5069,65310,455(2)(9)
Mark-to-market related credit risk11,28911,3137,110-59
Total credit risk
369,142367,864362,762-2
Market risk8,3969,3508,338(10)1
Operational risk
8
54,09347,68038,6411340
Interest rate risk in the banking book (IRRBB)5,3055307,076large(25)
Other6,9693,3703,002107132
Total risk weighted assets
443,905428,794419,81946
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.

38 2020 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 capital40,50337,50836,351
Treasury shares(619)(575)(571)
Equity based remuneration1,6451,5481,527
Foreign currency translation reserve59(199)(331)
Accumulated other comprehensive income(190)(68)15
Non-controlling interests - other615854
Retained earnings25,98527,18826,949
Less retained earnings in life and general insurance, funds management and securitisation entities(1,326)(1,407)(1,289)
Deferred fees229267234
Total CET 1 capital66,34764,32062,939
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 deductions47,98245,75244,680
Additional Tier 1 capital
Basel III complying instruments9,4739,2999,216
Total Additional Tier 1 capital9,4739,2999,216
Net Tier 1 regulatory capital57,45555,05153,896
Tier 2 capital
Basel III complying instruments14,45511,6457,143
Basel III transitional instruments567519495
Eligible general reserve for credit loss796266
Total Tier 2 capital15,10112,2267,704
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 capital14,85911,9717,461
Total regulatory capital72,31467,02261,357
Risk weighted assets443,905428,794419,819
CET 1 capital ratio10.81%10.67%10.64%
Additional Tier 1 capital ratio2.13%2.17%2.20%
Tier 1 capital ratio12.94%12.84%12.84%
Tier 2 capital ratio3.35%2.79%1.78%
Total regulatory capital ratio16.29%15.63%14.62%

2020 Interim Financial Results39
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-94TBDTBD
Final (fully franked)-80---
Total ordinary dividend
TBD
8094
TBDTBD
Payout ratio (reported)TBD77.26%102.00%TBDTBD
Adjusted franking credit balance ($m)2,8811,5581,23485133
Imputation credit (cents per share - NZ)TBD7.07.0TBDTBD
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)5,7913,9243,997
plus provisions associated with partial write-offs414194
less ineligible provisions
1
(129)(89)(79)
Total eligible provisions5,7033,8764,012
Regulatory expected downturn loss5,5404,9825,160
(Excess)/shortfall in eligible provisions compared to regulatory expected downturn loss(163)1,1061,148
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.

40 2020 Interim Financial Results
Review of Group operations
2.6Sustainability 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.
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.

2020 Interim Financial Results41
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
Help more people
better understand
•Continued to offer financial health check programs for superannuation members, including the digital Wealth
Review tool and My Wellbeing online portal;
Helping people make
better financial decisions
their financial position,improving
their financial confidence
•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.
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 people by being
there when it matters
Helping our most
vulnerable customers
•Developed a Vulnerable Customer Standard to provide guidance to staff when supporting customers in vulnerable
circumstances;
most to them•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.
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
•Westpac Scholars Trust¹ has awarded $3.9 million in educational scholarships to the next 64 Westpac Scholars,
bringing the total cohort to 479;
shaping Australia•
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;
Helping people create a •Maintained a portfolio of direct investment in nine early stage companies; and
prosperous nation•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
•Increased lending to climate change solutions, taking total committed exposure to $9.7 billion, progressing towards
our 2020 target of $10 billion; and
solutions•Facilitated $4.5 billion in funding for climate change solutions, exceeding our 2020 target of $3 billion.
Bring together
partners and harness
•Continued involvement in the implementation of the Principles for Responsible Banking, an initiative of the United
Nations Environment Programme Finance Initiative (UNEP FI); and
the Group’s capacity to tackle
pressing social issues that matter
most to the nation
•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.

42 2020 Interim Financial Results
Review of Group operations
Priority areasGoalsHalf Year 2020 performance
Promote an inclusive•
Maintained 50% women in leadership
1
roles; and
A culture that is
caring, inclusive and
society, where our
workforce reflects our customers
•80 new-to-bank Aboriginal or Torres Strait Islander hires.
innovative
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.
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.
Continuing to lead
Sustainable lending•Continued to embed the requirements of our updated Sustainability Risk Management Framework; and
on the Sustainability
Fundamenta
and investment •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.
2Environmental 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.

2020 Interim Financial Results43
Review of Group operations
2.6.1Climate-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.
1Westpac’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.

44 2020 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 lending
2
to transition risks under 1.5 and 2-degrees scenarios; and
•
The potential impact of climate-related physical risks on the Australian mortgage portfolio
3
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.
1Further details explaining the Group’s approach to scenario analysis can be found in the 2019 Sustainability Performance Report.
2Excludes retail, sovereign, and bank exposures.
3Excludes RAMS.
4Scope 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).

2020 Interim Financial Results45
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)•61%
•Thermal coal mining lending portfolio quality thresholds (kCal/kg)•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.

46 2020 Interim Financial Results
Divisional results
3.0Divisional results
Cash earnings policy
The accounting standard AASB 8 Operating Segments requires segment results to be presented on a basis that is consistent with information
provided internally to Westpac’s key decision makers. In assessing financial performance, including divisional results, Westpac Group uses a
measure of performance referred to as ‘cash earnings’. Cash earnings is viewed as a measure of the level of profit that is generated by ongoing
operations and is therefore considered in assessing distributions, including dividends. Cash earnings is neither a measure of cash flow nor net profit
determined on a cash accounting basis, as it includes both cash and non-cash adjustments to statutory net profit.
Management believes this allows the Group to more effectively assess performance for the current period against prior periods and to compare
performance across business divisions and across peer companies.
To determine cash earnings, three categories of adjustments are made to reported results:
•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.
The guidance provided in Australian Securities and Investments Commission (ASIC) Regulatory Guide 230 has been followed when presenting this
information.
In presenting divisional results on a management reporting basis, internal charges and transfer pricing adjustments are included in the performance of
each division reflecting the management structure rather than the legal entity (these results cannot be compared to results for individual legal
entities). Where management reporting structures or accounting classifications have changed, financial results for comparative periods have been
revised and may differ from results previously reported.
Our internal transfer pricing frameworks facilitate risk transfer, profitability measurement, capital allocation and business unit alignment, tailored to the
jurisdictions in which we operate. Transfer pricing allows us to measure the relative contribution of our products and divisions to the Group’s net
interest margin and other dimensions of performance. Key components of our transfer pricing frameworks are funds transfer pricing for interest rate
and liquidity risk, and allocation of basis and contingent liquidity costs, including capital allocation
In First Half 2020, Westpac restated divisional income statement and balance sheet for the re-alignment of customers between Consumer and
Business.
The discussion of our divisional results and certain data in Sections 3 and 5 are presented on a cash earnings basis, unless otherwise stated. Cash
earnings are not directly comparable to statutory results presented in other parts of this Results Announcement.

2020 Interim Financial Results47
Divisional results
Impact of estimated customer refunds, payments, associated costs and litigation, and costs associated with AUSTRAC proceedings
including a provision for a potential penalty, and the restructuring of the Wealth business
The table below shows the impact of estimated customer refunds, payments, associated costs and litigation, and costs associated with AUSTRAC
proceedings including a provision for a potential penalty, and the restructuring of the Wealth business on the divisions in First Half 2020 and Second
Half 2019. These items are discussed further in Note 14 of the 2020 Interim Financial Report.
$mConsumerBusiness
Westpac
Institutional
Bank
Westpac New
Zealand (A$)
Group
BusinessesGroup
Half Year March 2020
Net interest income5(107)-(4)-(106)
Non-interest income-(2)-(3)(126)(131)
Operating expenses-(32)--(1,158)(1,190)
Profit before impairment charges and income tax expense5(141)-(7)(1,284)(1,427)
Tax and non-controlling interests(2)42-2100142
Cash earnings3(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)
Profit before impairment charges and income tax expense(46)(171)-(32)(290)(539)
Tax and non-controlling interests1552-986162
Cash earnings(31)(119)-(23)(204)(377)
Half Year March 2019
Net interest income(47)(165)---(212)
Non-interest income-(32)--(568)(600)
Operating expenses31(20)--(285)(274)
Profit before impairment charges and income tax expense(16)(217)--(853)(1,086)
Tax and non-controlling interests1466--253333
Cash earnings(2)(151)--(600)(753)

48 2020 Interim Financial Results
Divisional results
3.1Consumer
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 income4,1774,0943,91527
Non-interest income313584554(46)(44)
Net operating income before operating expenses and impairment charges4,4904,6784,469(4)-
Operating expenses(2,024)(1,901)(1,867)68
Profit before impairment charges and income tax2,4662,7772,602(11)(5)
Impairment charges(448)(317)(272)4165
Profit before income tax2,0182,4602,330(18)(13)
Income tax expense and non-controlling interests (NCI)(608)(737)(694)(18)(12)
Cash earnings1,4101,7231,636(18)(14)
Cash earnings adjustments-----
Net profit after tax1,4101,7231,636(18)(14)
Cash earnings1,4101,7231,636(18)(14)
Add back estimated customer refunds, payments, associated costs and litigation(3)312large large
Cash earnings excluding estimated customer refunds, payments, associated costs
and litigation1,4071,7541,638(20)(14)
Operating expenses to net operating income ratio (cash earnings basis)45.08%40.64%41.78%large330 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 deposits53.459.965.4(11)(18)
Other157.4150.7141.8411
Total customer deposits210.8210.6207.2-2
Net loans
Mortgages378.6381.1379.0(1)-
Other11.812.513.3(6)(11)
Provisions(1.6)(1.5)(1.5)77
Total net loans388.8392.1390.8(1)(1)
Total assets400.4402.9401.5(1)-

2020 Interim Financial Results49
Divisional results
Cash earnings excluding estimated customer refunds, payments, associated costs and litigation
Half YearHalf YearHalf Year% Mov’t
$m
March
2020
Sept
2019
March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
Banking1,4631,6261,541(10)(5)
Insurance - Life insurance(19)4177largelarge
Insurance - General insurance(41)62-large-
Insurance - Lenders mortgage insurance101310(23)-
Capital and other(6)1210largelarge
Total insurance (including capital and other)(56)12897largelarge
Total cash earnings (ex estimated customer refunds, payments, associated costs and
litigation)1,4071,7541,638(20)(14)
Insurance key metrics
Half YearHalf YearHalf Year% Mov’t
March
2020
Sept
2019
March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
Life Insurance in-force premiums ($m)
Balance as at beginning of period1,2121,2591,277(4)(5)
Sales / New Business67335510322
Lapses(71)(80)(73)(11)(3)
Balance as at end of period
1
1,2081,2121,259-(4)
Claims ratios
2
for Insurance Business (%)
Life insurance5453481large
General insurance1074381largelarge
Lenders mortgage insurance151625(1)large
Gross written premiums ($m)
General insurance gross written premium273279259(2)5
Lenders mortgage insurance gross written premium
3
898476617
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).

50 2020 Interim Financial Results
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 estimated customer refunds and
payments) 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 •Non-interest income was lower from:
income
down $271m, 46%
–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•Expenses increased from:
up $123m, 6%–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.

2020 Interim Financial Results51
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 estimated customer refunds and
payments), 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 •Non-interest income was lower from:
income down $241m,
44%
–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 costs associated with estimated customer refunds and
payments and litigation 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.
2

52 2020 Interim Financial Results
Divisional results
3.2Business
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 income2,4382,5382,487(4)(2)
Non-interest income706721746(2)(5)
Net operating income before operating expenses and impairment charges3,1443,2593,233(4)(3)
Operating expenses(1,468)(1,460)(1,394)15
Profit before impairment charges and income tax1,6761,7991,839(7)(9)
Impairment charges(805)(194)(70)largelarge
Profit before income tax8711,6051,769(46)(51)
Income tax expense and NCI(267)(483)(531)(45)(50)
Cash earnings6041,1221,238(46)(51)
Cash earnings adjustments(63)(40)(5)58large
Net profit after tax5411,0821,233(50)(56)
Cash earnings6041,1221,238(46)(51)
Add back estimated customer refunds, payments, associated costs and litigation99119151(17)(34)
Cash earnings excluding estimated customer refunds, payments, associated costs
and litigation7031,2411,389(43)(49)
Operating expenses to net operating income ratio (cash earnings basis)46.69%44.80%43.12%189 bps357 bps
Cash earnings excluding estimated customer refunds, payments, associated costs
and litigation
Banking (including Private Wealth)6471,1341,249(43)(48)
Super, Investments, Platforms and Other
1
56107140(48)(60)
Total cash earnings excluding estimated customer refunds, payments, associated
costs and litigation7031,2411,389(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 deposits56.262.164.1(10)(12)
Other90.884.477.2818
Total customer deposits147.0146.5141.3-4
Net loans
Mortgages67.068.268.5(2)(2)
Business92.893.491.7(1)1
Other8.59.39.8(9)(13)
Provisions(2.1)(1.5)(1.4)4050
Total net loans166.2169.4168.6(2)(1)
Total assets174.0183.8182.9(5)(5)
1.Includes capital and other.

2020 Interim Financial Results53
Divisional results
Financial performance
First Half 2020 – Second Half 2019
Cash earnings of $604 million were $518 million (or 46%) lower than Second Half 2019. Excluding estimated customer refunds, payments, associated
costs and litigation 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 estimated customer refunds and payments).
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%
•Estimated customer refunds and payments 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%
•Costs associated with estimated customer refunds and payment and litigation 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.

54 2020 Interim Financial Results
Divisional results
First Half 2020 – First Half 2019
Cash earnings of $604 million were $634 million (or 51%) lower than First Half 2019. Excluding estimated customer refunds, payments, associated
costs and litigation, cash earnings were $686 million or 49% lower mostly from an increase in impairment charges linked to the impact of COVID-19.
Reduced net interest margins, lower wealth revenue, and increased risk, regulatory and compliance costs also contributed to the decline in cash
earnings.
Net interest income
down $49m, 2%
•Loans were 1% (or $2.4 billion) lower over the year, with growth in business lending offset by a 2% reduction in mortgages
(mostly investment loans) and lower Auto lending;
•Deposits increased 4% (or $5.7 billion) mostly in transaction and at call balances. These gains were partly offset by a 12%
decline in term deposits. Term deposits were lower from a customer preference to retain funds in at call accounts; and
•Net interest margin decreased 5 basis points, however, excluding the impact of lower estimated customer refunds and
payments ($58 million), net interest margin declined 11 basis points. 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 $40m, 5%
•Estimated customer refunds and payments in First Half 2020 were $30 million lower than First Half 2019. Excluding this,
non-interest income was down $70 million (or 9%) mostly due to:
–Margin compression from platform pricing changes, product migration to lower margin super products, and
implementation of Protecting Your Super legislation; and
–Platforms income was also lower from the impact of low interest rates on cash balances.
Expenses up $74m,
5%
•Costs associated with estimated customer refunds and payments and litigation in First Half 2020 were $12 million higher
than First Half 2019. Excluding this, expenses were up $62 million, or 5% due to:
–The write-down of certain assets, including a reduction in the capitalised value of Panorama; and
–Higher costs of regulatory, risk and compliance programs (including financial crime) and software amortisation were
partly offset by productivity including operating model simplification.
Impairment charges
up $735m, large
•The level of stressed exposures increased 55 basis points to 3.02% from an increase across Commercial, mostly in the
watchlist and substandard categories. The higher stress was mostly in retail trade, including motor vehicle retailers, and
commercial property; and
•Increased impairment charges mostly reflecting COVID-19 impacts on collectively assessed provisions ($691 million).
Individually assessed provisions also increased $40 million, largely from a number of single name large exposures.

2020 Interim Financial Results55
Divisional results
3.3Westpac Institutional Bank (WIB)
Westpac Institutional Bank (WIB) delivers a broad range of financial products and services to corporate, institutional and government customers
operating in, or with connections to, Australia and New Zealand. WIB operates through dedicated industry relationship and specialist product teams,
with expert knowledge in financing, transactional banking, and financial and debt capital markets. Customers are supported throughout Australia and
via branches and subsidiaries located in New Zealand, the US, UK and Asia. WIB is also responsible for Westpac Pacific providing a full range of
banking services in Fiji and PNG. WIB works with all the Group’s divisions in the provision of markets related financial needs including foreign
exchange and fixed interest solutions.
Half YearHalf YearHalf Year% Mov’t
$m
March
2020
Sept
2019
March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
Net interest income655700743(6)(12)
Non-interest income603610682(1)(12)
Net operating income before operating expenses and impairment charges1,2581,3101,425(4)(12)
Operating expenses(654)(631)(653)4-
Profit before impairment charges and income tax604679772(11)(22)
Impairment charges(315)(31)(15)largelarge
Profit before income tax289648757(55)(62)
Income tax expense and NCI(114)(178)(213)(36)(46)
Cash earnings175470544(63)(68)
Cash earnings adjustments-----
Net profit after tax175470544(63)(68)
Operating expenses to net operating income ratio (cash earnings basis)51.99%48.17%45.82%382 bpslarge
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 deposits112.5101.395.71118
Net loans
Loans80.875.676.775
Provisions(0.4)(0.2)(0.2)100100
Total net loans80.475.476.575
Total assets112.898.099.815.013.0
Revenue contribution
Half YearHalf YearHalf Year% Mov’t
$m
March
2020
Sept
2019
March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
Lending and deposit revenue767801848(4)(10)
Markets, sales and fee income433445458(3)(5)
Total customer revenue1,2001,2461,306(4)(8)
Derivative valuation adjustments(93)(53)(11)75large
Trading revenue1741141265338
Other
1
(23)34largelarge
Total WIB revenue1,2581,3101,425(4)(12)
1.Includes capital benefit and the Bank Levy.

56 2020 Interim Financial Results
Divisional results
Financial performance
First Half 2020 – Second Half 2019
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 changes in economic conditions from the impact of COVID-19. Lower net interest margin and higher expenses also contributed to
the decline in cash earnings.
Net interest income
down $45m, 6%
•Net loans increased 7% (or $5.0 billion) with most of the increase occurring late in the half as customers sought to
strengthen their liquidity and working capital requirements in response to the COVID-19 crisis by utilising existing facilities.
FX movements (from a weaker A$) added $1.5 billion to lending in the half;
•Deposits were up 11% (or $11.2 billion) primarily from higher at call balances as customers increased liquidity in response
to COVID-19 impacts. FX movements contributed $1.3 billion to the increase. This was partly offset by lower term
deposits, reflecting customer preference for readily available funds; and
•Net interest margin was down 11 basis points, with lower interest rates reducing deposit spreads. Lower Markets income
and lower returns on capital also contributed to the decline in net interest margin.
Non-interest income •A $40 million increase in the charge for derivative valuation adjustments primarily due to widening credit spreads towards
the end of the half;
down $7m, 1%•Customer markets income was down from lower fixed income sales; partly offset by
•Higher non-customer Markets income across FX and commodities.
Expenses up $23m,
4%
•Expenses increased mostly from higher technology costs and increased spending on risk, regulatory and compliance
programs; and
•Cost increases from annual salary reviews and inflation were largely offset by productivity benefits from organisational
redesign.
Impairment charges •Stressed exposures to TCE of 1.18%, up 50 basis points compared to September 2019; and
up $284m, large•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. The
downgrade of a number of facilities to impaired in First Half 2020 also contributed to an increase in individually assessed
provisions. This was partly offset by higher write-backs and recoveries.
First Half 2020 – First Half 2019
Cash earnings of $175 million were $369 million (or 68%) lower than First Half 2019, primarily from higher impairment charges and a 12% decline in
operating income. An $82 million increase in the charge for derivative valuation adjustments and a 14 basis point decline in net interest margin were
the key drivers of the lower operating income.
Net interest income
down $88m, 12%
•Net loans increased 5% (or $3.9 billion) with around half of the increase ($2.2 billion) due to FX translation impacts.
Increased utilisation of existing facilities to support customers’ liquidity and working capital requirements arising from
economic impact of COVID-19 contributed to the remaining increase;
•Deposits increased 18% (or $16.8 billion) primarily from higher government deposits and at call balances. FX translation
impacts contributed $1.7 billion to the increase. This was partly offset by lower term deposits, reflecting customer
preference for readily available funds; and
•Net interest margin down 14 basis points, with the low interest rate environment reducing deposit spreads. This was partly
offset by higher loan spreads from disciplined pricing.
Non-interest income •Higher charge on derivative valuation adjustments ($93 million charge in First Half 2020 compared to $11 million charge in
First Half 2019);
down $79m, 12%•Reduced syndication fees with First Half 2019 including several large transactions; partly offset by
•Higher non-customer Markets income across FX and commodities.
Expenses up $1m, flat•Productivity benefits from organisational redesign (with FTE down 6% over the year) and lower variable remuneration
costs were largely offset by higher regulatory, risk and compliance costs.
Impairment charges •Stressed exposures to TCE of 1.18%, up 55 basis points compared to March 2019; and
up $300m, large•Increased impairment charges mostly reflecting COVID-19 impacts on collectively assessed provisions ($156 million) and
from the downgrade of a number of facilities.

2020 Interim Financial Results57
Divisional results
3.4Westpac New Zealand
Westpac New Zealand is responsible for sales and service of banking, wealth and insurance products for consumer, business and institutional
customers in New Zealand. Westpac conducts its New Zealand banking business through two banks: Westpac New Zealand Limited, which is
incorporated in New Zealand, and Westpac Banking Corporation (New Zealand Branch), which is incorporated in Australia. Westpac New Zealand
operates via an extensive network of branches and ATMs across both the North and South Islands. Business and institutional customers are also
served through relationship and specialist product teams. Banking products are provided under the Westpac brand while insurance and wealth
products are provided under Westpac Life and BT brands, respectively. New Zealand also maintains its own infrastructure, including technology,
operations and treasury.
Half YearHalf YearHalf Year% Mov’t
NZ$m
March
2020
Sept
2019
March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
Net interest income9879671,0002(1)
Non-interest income175200248(13)(29)
Net operating income before operating expenses and impairment charges1,1621,1671,248-(7)
Operating expenses(541)(513)(480)513
Profit before impairment charges and income tax621654768(5)(19)
Impairment (charges)/benefits(211)24(14)largelarge
Profit before income tax410678754(40)(46)
Income tax expense and NCI(115)(191)(199)(40)(42)
Cash earnings295487555(39)(47)
Cash earnings adjustments125(6)140large
Net profit after tax307492549(38)(44)
Cash earnings295487555(39)(47)
Add back estimated customer refunds, payments, associated costs and litigation524-(79)-
Cash earnings excluding estimated customer refunds, payments, associated costs
and litigation300511555(41)(46)
Operating expenses to net operating income ratio (cash earnings basis)46.56%43.96%38.46%260 bpslarge
As atAs atAs at% Mov’t
NZ$bn
31 March
2020
30 Sept
2019
31 March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
Customer deposits
Term deposits32.833.533.3(2)(2)
Other36.331.030.91717
Total customer deposits69.164.564.278
Net loans
Mortgages53.351.549.637
Business32.531.130.955
Other1.71.92.0(11)(15)
Provisions(0.5)(0.3)(0.4)6725
Total net loans87.084.282.136
Total assets105.097.193.4812

58 2020 Interim Financial Results
Divisional results
Financial performance (NZ$)
First Half 2020 – Second Half 2019
Cash earnings of $295 million were $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 mostly from higher risk, regulatory and compliance costs.
Net interest income
up $20m, 2%
•Loans were 3% (or $2.8 billion) higher over the half, from a $1.8 billion increase in mortgages. Business lending increased
$1.4 billion, with growth across a range of segments;
•Deposits increased 7% (or $4.6 billion) supported by growth in transaction accounts, with consumer balances up $1.6
billion, and business balances up $3.7 billion. Term deposits were lower from customer preference to retain funds in at call
accounts; and
•Net interest margin was 3 basis points lower, (down 5 basis points excluding estimated customer refunds and payments).
Excluding estimated customer refunds and payments, the decline in margins was mostly due to further reductions in
interest rates which reduced deposit spreads. This was partly offset by improved spreads on fixed rate mortgages and
some repricing of business loans.
Non-interest income •Most of the decline in non-interest income was due to further fee simplification initiatives; and
down $25m, 13%•Investment, insurance and cards income were also lower.
Expenses up $28m,
5%
•Excluding the impact of costs associated with estimated customer refunds and payments and litigation ($16 million lower in
First Half 2020), expenses increased $44 million (or 9%);
•Most of this was from increased spending on risk, regulatory and compliance programs (including BS11 outsourcing) and
increased restructuring expenses; and
•Salary increases and other inflationary rises were offset by productivity benefits.
Impairment charge of
$211m compared to
•Stressed exposures to TCE decreased 2 basis points to 1.64%, COVID-19 is expected to lead to a deterioration in asset
quality as both consumers and businesses face additional stress;
an impairment benefit
of $24m
•During 2019, the methodology for reporting hardship was aligned to APRA definition which has impacted delinquencies.
These changes increased other consumer 90+ day delinquencies by 77 basis points and mortgage 90+ day delinquencies
by 14 basis points. Excluding the impact of these changes, other consumer 90+ day delinquencies increased 37 basis
points and mortgage 90+ day delinquencies increased 3 basis point; and
•Impairment charges were higher, reflecting expected COVID-19 impacts. These included changes to the base case
economic forecasts and increasing the weight applied to the downside economic scenario used in provision models. New
individually assessed provisions for two large exposures also contributed to the increase.
First Half 2020 – First Half 2019
Cash earnings of $295 million were $260 million (or 47%) lower than First Half 2019. Excluding a gain on the sale of an asset in First Half 2019 ($40
million post-tax), cash earnings were $220 million (or 40%) lower. The decline was due to higher impairment charges, lower net interest margins, a
decline in fee income and increased risk, regulatory and compliance costs.
Net interest income
down $13m, 1%
•Loans were 6% (or $4.9 billion) higher over the year. Mortgages increased $3.7 billion (7%) with the majority of the growth
in fixed rate mortgages. Business lending increased $1.6 billion (or 5%), with growth across a range of segments;
•Deposits increased 8% (or $4.9 billion) supported by growth in transaction accounts (up $5.4 billion). Term deposits
declined reflecting customer preference to maintain balances at call; and
•Net interest margin decreased 17 basis points, mostly from reduced deposit spreads reflecting the low interest rate
environment. The change in lending mix also contributed to lower margins. The decline was partly offset by repricing of
housing and business loans.
Non-interest income
down $73m, 29%
•First Half 2019 included a $40 million gain on the sale of Paymark. Excluding this, non-interest income was down $33
million or 13% mostly due to fee simplification initiatives; and
•Investment, insurance and cards income were also lower.
Expenses up $61m,
13%
•Increased spending on risk, regulatory and compliance programs (including BS11 outsourcing) along with higher
restructuring expenses; and
•Salary increases and other inflationary rises also contributed to the increase.
Impairment charges •Stressed exposures to TCE increased 7 basis points to 1.64% over the year;
up $197m, large•Other consumer 90+ day delinquencies increased 57 basis points to 1.59% from changes in the methodology for reporting
hardship. Mortgage 90+ days delinquencies increased 13 basis points also from methodology changes noted above; and
•Impairment charges were higher, reflecting COVID-19 impacts. These included changes to the base case economic
forecasts and increasing the weight applied to the downside economic scenario used in provision models. New individually
assessed provisions for two large exposures also contributed to the increase.

2020 Interim Financial Results59
Divisional results
3.4.1Westpac New Zealand division performance (A$ Equivalent)
Results have been translated into Australian dollars (A$) at the average exchange rates for each reporting period, First Half 2020: $1.0493 (Second
Half 2019: $1.0565; First Half 2019: $1.0584). Unless otherwise stated, assets and liabilities have been translated at spot rates as at the end of the
period, First Half 2020: $1.0264 (Second Half 2019: $1.0790; First Half 2019: $1.0439).
Half YearHalf YearHalf Year% Mov’t
$m
March
2020
Sept
2019
March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
Net interest income9409159453(1)
Non-interest income167189234(12)(29)
Net operating income before operating expenses and impairment charges1,1071,1041,179-(6)
Operating expenses(516)(486)(453)614
Profit before impairment charges and income tax591618726(4)(19)
Impairment (charges)/benefits(200)24(14)largelarge
Profit before income tax391642712(39)(45)
Income tax expense and NCI(110)(181)(188)(39)(41)
Cash earnings281461524(39)(46)
Cash earnings adjustments114(5)175large
Net profit after tax292465519(37)(44)
Cash earnings281461524(39)(46)
Add back estimated customer refunds, payments, associated costs and litigation523-(78)-
Cash earnings excluding estimated customer refunds, payments, associated costs
and litigation286484524(41)(45)
Operating expenses to net operating income ratio
1
(cash earnings basis)46.56%43.96%38.46%260 bpslarge
As atAs atAs at% Mov’t
$bn
31 March
2020
30 Sept
2019
31 March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
Customer deposits67.359.761.5139
Net loans84.878.078.698
Total assets102.390.089.51414
Total funds10.610.710.4(1)2
1.Ratios calculated using NZ$.

60 2020 Interim Financial Results
Divisional results
3.5Group Businesses
This segment comprises:
•Treasury which is responsible for the management of the Group’s balance sheet including wholesale funding, capital and management of
liquidity. Treasury also manages the interest rate risk and foreign exchange risks inherent in the balance sheet, including managing the mismatch
between Group assets and liabilities. Treasury’s earnings are primarily sourced from managing the Group’s balance sheet and interest rate risk,
(excluding Westpac New Zealand) within set risk limits;
•
Group Technology
1
, which comprises functions for the Australian businesses, is responsible for technology strategy and architecture,
infrastructure and operations, applications development and business integration;
•
Core Support
2
, which comprises functions performed centrally, including Australian banking operations, property services, strategy, finance, risk,
compliance, legal, human resources, and customer and corporate relations;
•Following the Group’s decision in March 2019 to restructure its wealth operations and exit its Advice business, the residual Advice operations
(including associated remediation) and certain support functions of the former BTFG division have been transferred to Group Businesses; and
•Group Businesses also includes earnings on capital not allocated to divisions, accounting entries for certain intra-group transactions that facilitate
presentation of performance of the Group’s operating segments, earnings from non-core asset sales, earnings and costs associated with the
Group’s Fintech investments, and certain other head office items such as centrally raised provisions.
Half YearHalf YearHalf Year% Mov’t
$m
March
2020
Sept
2019
March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
Net interest income4563172994453
Non-interest income(114)(116)(502)(2)(77)
Net operating income before operating expenses and impairment charges342201(203)70large
Operating expenses(1,498)(512)(674)193122
Profit/(loss) before impairment charges and income tax expense(1,156)(311)(877)large32
Impairment (charges)/benefits(470)5738largelarge
Profit/(loss) before income tax(1,626)(254)(839)large94
Income tax expense and NCI14931193large(23)
Cash earnings(1,477)(223)(646)large129
Cash earnings adjustments24994(113)165large
Net profit/(loss) after tax(1,228)(129)(759)large62
Cash earnings(1,477)(223)(646)large129
Add back
Costs associated with AUSTRAC proceedings including a provision for a potential
penalty1,027----
Estimated customer refunds, payments, associated costs and litigation157168464(7)(66)
Wealth restructuring-36136(100)(100)
Cash earnings excluding costs associated with AUSTRAC proceedings including a
provision for a potential penalty, estimated customer refunds, payments, associated
costs and litigation, and Wealth restructuring(293)(19)(46)largelarge
TreasuryHalf YearHalf YearHalf Year% Mov’t
$m
March
2020
Sept
2019
March
2019
Mar 20 -
Sept 19
Mar 20 -
Mar 19
Net interest income4292732395779
Non-interest income(1)9(4)large(75)
Net operating income before operating expenses and impairment charges4282822355282
Cash earnings2731791435391
Cash earnings adjustments22252(83)largelarge
Net profit/(loss) after tax49523160114large
Treasury Value at Risk (VaR)
3
$mAverageHighLow
Half Year March 202046.3176.733.7
Half Year September 201935.141.128.6
Half Year March 201926.833.620.9
1.Costs are fully allocated to other divisions in the Group.
2.Costs are partially allocated to other divisions in the Group, with costs attributed to enterprise activity retained in Group Businesses.
3.VaR includes trading book and banking book exposures. The banking book component includes interest rate risk, credit spread risk in liquid assets and other basis risks as used for
internal management purposes.

2020 Interim Financial Results61
Divisional results
Financial performance
First Half 2020 - Second Half 2019
Group Businesses cash earnings loss of $1,477 million were $1,254 million lower than Second Half 2019. Excluding 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 in Second Half 2019, Group Businesses cash earnings were $274 million lower than Second Half 2019 primarily due to $470
million impairment charges partly offset by a higher contribution from Treasury.
Net operating income •Higher Treasury revenue related to positioning for interest rate changes; partially offset by
up $141m, 70%•Lower assets sales in First Half 2020; and
•Lower revenue with the exit of the financial planning.
Expenses up $986m,
193%
•Costs associated with customer refunds and payments and litigation, estimated costs associated with AUSTRAC
proceedings including a provision for a potential penalty, and the restructuring of the Wealth business in Second Half 2019
were $1,059 million higher than Second Half 2019; partially offset by
•Lower costs from the exit of the Advice business and lower restructuring costs.
Impairment charges
up $527m, large
•Impairments were a $470 million charge. The movement of $527 million was mainly due to centrally held overlays to reflect
the impacts of COVID-19, bushfires and drought.
First Half 2020 - First Half 2019
Group Businesses cash earnings loss of $1,477 million were $831 million higher than the First Half 2020. Excluding 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 in First Half 2019, Group Businesses cash earnings were $247 million lower than First Half 2019 primarily due $470 million
impairment charges partly offset by a higher contribution from Treasury.
Net operating income •Estimated customer refunds and payments were $442 million lower than First Half 2019; and
up $545m, large•Higher Treasury revenue related to positioning for interest rate changes; partially offset by
•Lower gains on investments and assets sales compared to First Half 2020; and
•Lower revenue with the exit of the financial planning.
Expenses up $824m,
122%
•Costs associated with customer refunds and payments and litigation, costs associated with AUSTRAC proceedings
including a provision for a potential penalty, and the restructuring of the Wealth business in First Half 2019 were $873
million higher than First Half 2019; partially offset by
•Lower costs from the exit of the Advice business.
Impairment charges
up $508m, large
•Impairments were a $470 million charge. The movement of $508 million was mainly due to centrally held overlays to reflect
the impacts of COVID-19, bushfires and drought.

62 2020 Interim Financial Report
Table of contents
4.0 2020 Interim Financial Report
4.1Directors’ report63
4.2Consolidated income statement92
4.3Consolidated statement of comprehensive income93
4.4Consolidated balance sheet94
4.5Consolidated statement of changes in equity95
4.6Consolidated cash flow statement96
4.7Notes to the consolidated financial statements97
Note 1Financial statements preparation97
Note 2Segment reporting99
Note 3Net interest income103
Note 4Non-interest income104
Note 5Operating expenses105
Note 6Income tax106
Note 7Earnings per share106
Note 8Average balance sheet and interest rates107
Note 9Loans108
Note 10Provisions for expected credit losses108
Note 11Credit quality113
Note 12Deposits and other borrowings115
Note 13Fair values of financial assets and liabilities116
Note 14Provisions, contingent liabilities, contingent assets and credit commitments121
Note 15Shareholders’ equity127
Note 16Notes to the consolidated cash flow statement129
Note 17Subsequent events130
4.8
Statutory statements131

2020 Interim Financial Report63
Directors’ report
4.0Interim Financial Report 2020
4.1Directors’ report
1
The Directors of Westpac present their report together with the financial statements of Westpac and its controlled entities (collectively referred to as
‘the Group’) for the half year ended 31 March 2020.
Directors
The names of the Directors of Westpac holding office at any time during, and since the end of, the half year and the period for which each has served
as a Director are set out below:
NamePosition
John McFarlaneDirector and Chairman Elect since February 2020 and Chairman since April 2020.
Peter KingManaging Director and Acting Chief Executive Officer since December 2019. Chief Executive Officer since April 2020.
Nerida CaesarDirector since September 2017.
Alison DeansDirector since April 2014.
Craig DunnDirector since June 2015.
Steven HarkerDirector since March 2019.
Peter MarriottDirector since June 2013.
Peter NashDirector since March 2018.
Margaret SealeDirector since March 2019.
Lindsay MaxstedRetired on 31 March 2020. Chairman from December 2011 and Director from March 2008.
Anita FungRetired on 31 March 2020. Director from October 2018.
Ewen Crouch AMRetired on 12 December 2019. Director from February 2013.
Brian HartzerResigned as Managing Director and Chief Executive Officer in December 2019. Director from February 2015.
Review and results of the Group’s operations during the half year
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
1
are
discussed further 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 from 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.
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.
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.
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.
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.
1.The impact (before tax) of these items is reflected within the additions/reversal of unutilised provisions line items of the Compliance, regulation and remediation provision, and the
restructuring provision in Note 14.

64 2020 Interim Financial Report
Directors’ report
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.
A review of the operations and results of the Group and its divisions for the half year ended 31 March 2020 is set out in Section 2 and Section 3 of
this Interim Financial Results Announcement and in ‘Risk factors’, which forms part of the Directors’ Report.
Further information about our financial position and financial results is included in the financial statements, which form part of the 2020 Interim
Financial Report.
Significant developments
COVID-19 impacts on Westpac
COVID-19 has had a significant impact on Westpac’s operations and many of Westpac’s customers, counterparties and third party suppliers, as well
as the broader Australian economy.
In response to COVID-19, a number of laws have been enacted by the Australian Government to help reduce the economic impact of the pandemic
including in relation to the $130 billion JobKeeper payment announced on 30 March 2020.
In order to mitigate the spread of the pandemic, the Australian, State and Territory Governments have implemented a range of material restrictions on
businesses, venues, travel, movement and gatherings of people. There have also been similar restrictions put in place in other jurisdictions in which
the Group operates. Many of these new measures have impacted the operations of Westpac.
In response to the current COVID-19 pandemic, Westpac has provided support to its customers by implementing a range of initiatives, such as
lowering interest rates on certain products, waiving certain fees and granting deferrals of mortgage and business loan repayments to customers
affected by the COVID-19 pandemic.
Further information on the actual and potential impacts of COVID-19 and the Group’s response are set out in the ‘Performance Overview’ and ‘Risk
Factors’ sections of this interim results announcement.
Westpac significant developments
Executive changes
On 2 December 2019, Brian Hartzer stepped down as Chief Executive Officer (CEO) of Westpac with Chief Financial Officer (CFO), Peter King,
taking over as acting CEO and Chief Operating Officer, Gary Thursby, appointed as acting CFO. On 2 April 2020, Westpac’s Chairman, John
McFarlane, announced the appointment of Mr King as CEO with immediate effect. Mr King has committed to the role for a period of two years.
Alastair Welsh has been appointed as Acting Group Executive, Enterprise Services while Mr Thursby acts in the role of CFO.
New Specialist Businesses division
On 4 May 2020, Westpac announced a new Specialist Businesses division will be created which will include the following businesses:
•Wealth Platforms;
•Superannuation and Retirement Products;
•Investments;
•Insurance;
•Auto Finance; and
•Westpac Pacific.
The division will be run by Jason Yetton who will report to the CEO and these businesses will undergo a strategic review.
Board changes
On 12 December 2019, Director Ewen Crouch did not seek re-election at Westpac’s Annual General Meeting.
On 23 January 2020, Westpac announced the appointment of John McFarlane to the Westpac Board as Non-Executive Director and Chairman-Elect,
succeeding Lindsay Maxsted. Mr McFarlane commenced his role as Non-Executive Director on 17 February 2020.
Mr Maxsted retired from the Westpac Board effective 31 March 2020, following which Mr McFarlane became Chairman of the Board and the Board
Nominations Committee and a member of the Board Risk & Compliance Committee effective 1 April 2020.
Anita Fung also retired from the Westpac Board effective 31 March 2020.

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Board Committee changes
On 27 November 2019, as part of Westpac’s Response Plan in relation to the AUSTRAC proceedings (both described below), Westpac established a
Board Financial Crime Committee to oversee the implementation of Westpac’s enhanced financial crime program. Peter Nash was appointed
Chairman of the Board Financial Crime Committee.
On 12 December 2019, Mr Nash was appointed Chairman of the Board Audit Committee and Peter Marriott was appointed Chairman of the Board
Risk & Compliance Committee.
On 2 April 2020, Mr McFarlane announced proposed changes to the Board Committee structure. Regulatory and legal investigations and remediation,
including financial crime remediation, will be handled by a separate committee, allowing the Board Risk & Compliance Committee to focus on setting,
and ensuring adherence to, risk appetite, current and future credit policies, market and operational risks as well as mitigating them. Mr McFarlane
also announced that the Board Nominations Committee, which deals primarily with the appointment of directors, will also oversee governance
developments, as well as key management appointments reporting to the CEO. In addition to technology, the Board Technology Committee will also
oversee data.
AUSTRAC civil proceedings
On 20 November 2019, AUSTRAC commenced civil proceedings in the Federal Court of Australia against Westpac in relation to alleged
contraventions of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth). These proceedings relate to non-reporting of a large
number of International Funds Transfer Instructions (IFTIs), alleged failings in relation to record keeping and the passing on of certain data required in
IFTIs, failure to comply with correspondent banking obligations, AML/CTF Program failures and contraventions of ongoing customer due diligence
obligations. AUSTRAC has alleged over 23 million contraventions of the AML/CTF Act.
The Court has ordered a timetable for the next steps in the proceedings being the filing of a Statement of Agreed Facts and Admissions by 8 May
2020, the filing of Westpac’s Defence by 15 May 2020 and the filing of AUSTRAC’s Reply to the Defence by 5 June 2020. The parties expect to be
before the Court again in mid to late June 2020.
Westpac has considered the available information and has made a provision for a potential penalty in relation to the AUSTRAC civil proceedings
brought against it on 20 November 2019. Further information on the provision is set out in Note 14 of this interim results announcement.
Australian Prudential Regulation Authority (APRA) and Australian Securities and Investments Commission (ASIC) investigations
On 17 December 2019, APRA commenced an investigation into possible breaches of the Banking Act 1959 (Cth) by Westpac. APRA stated that it
would focus on conduct that led to matters alleged in the AUSTRAC proceedings and the actions taken to rectify and remediate issues after they
were identified, and would examine whether Westpac, its directors and/or senior managers breached the Banking Act (including the Banking
Executive Accountability Regime), or contravened APRA prudential standards.
ASIC has also commenced an investigation into matters related to the AUSTRAC allegations in the AUSTRAC proceedings. To date, that has largely
involved Westpac providing ASIC with information and documents relevant to their inquiries.
Westpac is committed to cooperating and working constructively with APRA and ASIC during their investigations which will likely continue for a
number of months.
Australian and US class actions
Westpac has been served with two shareholder class actions filed by Phi Finney McDonald and Johnson Winter & Slattery in Australia relating to
market disclosure issues connected to Westpac’s monitoring of financial crime over the relevant period and matters which are the subject of the
recent AUSTRAC proceedings. The claims are brought on behalf of certain shareholders who acquired an interest in Westpac securities between 16
December 2013 and 19 November 2019.
On 31 January 2020, a US class action was filed against Westpac and our current and former CEO by Rosen Law Firm on behalf of purchasers of
Westpac securities between 11 November 2015 and 19 November 2019. That claim also relates to market disclosure issues connected to Westpac’s
monitoring of financial crime over the relevant period and matters which are the subject of the recent AUSTRAC proceedings. The three respective
class actions largely overlap in terms of subject matter and claims do not identify the amount of any damages sought, however, given the time period
in question in each of the relevant proceedings, and the nature of the claims it is likely that the damages sought from the app
licants in those
proceedings will be significant.
Westpac is defending these class actions and no provision has been taken in relation to those potential exposures.
AUSTRAC response plan and external reviews
As a bank, Westpac recognises it plays a key role in combating money laundering and terrorism financing. Further, Westpac acknowledges the
significant impact that deficiencies in its systems and processes can have on efforts to combat money laundering and terrorism financing. Further
information on Westpac’s AUSTRAC response plan which was announced on 25 November 2019 is set out in the ‘Performance Overview’ section of
this interim results announcement.
Since the commencement of the AUSTRAC proceedings, Westpac has commissioned 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.
It has also established an independent Advisory Panel whose members will review Board risk governance and Board accountability in relation to the
issues raised in the AUSTRAC proceedings. The work of Promontory and the Advisory Panel is progressing. An update will be provided on the
outcomes of these reviews upon their completion.

66 2020 Interim Financial Report
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APRA review into risk governance
On 17 December 2019, APRA announced that in addition to its investigation into possible breaches of the Banking Act 1959 (Cth) by Westpac, it
would initiate an extensive review program focused on Westpac’s risk governance. The review program will include risk management, accountability,
remuneration and culture.
On 23 March 2020, APRA advised that its supervision priorities outlined in January 2020 will be largely suspended until at least 30 September 2020
particularly where they involve intensive engagement with regulated entities.
An element of APRA’s review will be the examination of the steps Westpac has been taking to strengthen risk governance, including through its self-
assessment, which is referred to below.
Operational risk capital overlays
On 11 July 2019, Westpac received APRA’s response to its Culture, Governance and Accountability (CGA) self-assessment. In its response, APRA
decided to apply an additional $500 million to Westpac’s operational risk capital requirement. This follows APRA concluding that Westpac was
required to improve its management and oversight of non-financial risk. The additional capital requirement will remain in place until APRA is satisfied
that Westpac has completed its action plan. The $500 million requirement, applied through an increase in risk weighted assets (RWA), took effect
from 30 September 2019 and impacted Westpac’s Level 2 common equity tier 1 (CET1) capital ratio at 30 September 2019 by 16 basis points.
As part of its announcement on 17 December 2019, APRA also imposed an additional $500 million capital overlay in response to the magnitude and
nature of issues alleged by AUSTRAC in its Statement of Claim. The additional overlay applied from 31 December 2019. This change reduced
Westpac’s Level 2 CET1 capital ratio by 15 basis points, as at 31 March 2020.
Westpac reviews
Financial crime
In addition to the AML/CTF Response Plan and the financial crime improvements following the commencement of the AUSTRAC proceedings,
Westpac continues to progress a significant multi-year program of work that is required to rectify its management of financial crime risks (including
Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF), sanctions, Anti-Bribery and Corruption, FATCA and Common Reporting
Standards (CRS)).
This extensive work involves a review of its AML/CTF policies, the completeness of data feeding into its AML/CTF systems and the adequacy and
appropriateness of its AML/CTF processes and controls including in relation to important aspects of its money laundering and terrorism financing risk
assessments and governance (which have been identified as needing to be strengthened). Westpac is continuing to implement a number of
improvements to its AML/CTF program, governance, policies, systems and controls, including in relation to the issues identified in AUSTRAC’s
Statement of Claim. Westpac is undertaking related remediation work in respect of certain controls and reporting practices and has engaged with and
provided AUSTRAC with updates on this work. These remediation efforts relate to matters such as customer identification, customer and payment
screening, risk assessments, ensuring appropriate controls over information relevant to the ‘tipping off’ prohibitions, ongoing and enhanced customer
due diligence, transaction monitoring and regulatory reporting (including in relation to International Funds Transfer Instructions (IFTIs), Suspicious
Matter Reports and Threshold Transaction Reports (TTRs)).
As part of these efforts, Westpac has identified deficiencies in certain systems and controls relevant to its obligation to file TTRs. This has, over a
number of years, resulted in instances where the Group has failed to report TTRs, as well as instances where the Group filed TTRs with incomplete
or inaccurate information.
The Group has self-reported these TTR deficiencies to AUSTRAC and is keeping AUSTRAC apprised of the status of its investigations. To date, the
remediation has involved the late reporting of 17,870 TTRs to AUSTRAC. Additionally, there are multiple TTR reporting scenarios which based on the
preliminary analysis undertaken to date (which has not been finally quantified or resolved), could amount to an estimated 60,000 to 90,000 TTRs that
have not been reported to AUSTRAC.
As part of the Group’s work to rectify its management of financial crime risks, the Group is also working to remediate gaps and
enhance controls to
support compliance with its FATCA and CRS obligations. The Group has been engaging with the Australian Tax Office (ATO) on its CRS remediation
program and will continue to engage with the ATO on further programs of work.
Details about the consequences of failing to comply with financial crime obligations is set out in the ‘Risk Factors’ section of this report.
APRA self-assessment
On 29 November 2018, Westpac submitted to APRA its self-assessment on its frameworks and practices in relation to governance, culture and
accountability. Westpac has a program of work underway, under the oversight of the Westpac Board to address the recommendations identified in the
self-assessment report (CGA Remediation Plan). Westpac is implementing the recommendations identified in the self-assessment. All implemented
items will be subject to post-implementation verification to ensure durability of changes made.
In light of the AUSTRAC proceedings, APRA has required Westpac to complete a reassessment of the existing CGA Remediation Plan. This
reassessment will consider developments since the completion of the CGA self-assessment to verify if the existing recommendations and actions
remain fit for purpose, and to identify any additional recommendations and actions that should be incorporated into the CGA Remediation Plan.
External assurance over the reassessment process and outcomes will also be performed. The reassessment and updated plan will be submitted to
APRA by 30 June 2020.
Customer remediation
Through the Group’s ‘get it right, put it right initiative’, Westpac is continuing to undertake a number of reviews to identify and resolve prior issues that
have the potential to impact our customers and reputation. These internal reviews continue to identify a number of issues in respect of which we are
takings steps or will take steps to put things right so that our customers are not at a

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disadvantage from certain past practices, including making compensation/remediation payments to customers and/or providing refunds where
identified. By undertaking these reviews, we can also continue to improve our processes and controls.
Further information in relation to compliance, reputation and remediation provisions is included in Note 14 in this 2020 Interim Financial Report and
further information on our ongoing customer remediation progress is included in the ‘Performance Overview’ section.
Review of risk processes
Westpac is upgrading its end to end risk management capabilities. This is part of an ongoing program of work that spans both financial and non-
financial risk. A key component is the implementation of a refined three lines of defence model and uplifting risk capability across the organisation.
Westpac believes that investing in and enhancing end to end risk management capabilities are essential imperatives. Recent reviews have identified
various policies, systems, data, and risk capabilities which need to be strengthened. A detailed implementation plan to facilitate these improvements
is progressing, which includes hiring additional experts in areas such as operational risk, stress testing, modelling, financial crime, risk systems and
data management.
Clearer accountability
On 2 April 2020, the Chairman announced that the CEO had decided to put in place a clearer accountability regime which will speed up decision
making and implementation, as well as defining more clearly who is individually accountable and for what. This transformation will see Westpac retain
its focus on deepening customer relationships but move away from full matrix reporting and shift instead to a clearer line of business model.
Regulatory and Government focus
Regulatory response to the effects of COVID-19
In response to COVID-19, Australian domestic regulators have sought to initiate and re-prioritise activity that will assist financial institutions support
customers through the conditions created by the pandemic. This has caused some regulatory activity to be deferred, while other projects have been
accelerated due to their potential to assist economic recovery. The most significant of these updates or changes for Westpac are described in the
relevant paragraphs below.
On 23 March 2020, the Council of Financial Regulators used their quarterly statement to communicate their coordinated approach to the COVID-19
pandemic. The Reserve Bank of Australia (RBA) announced extensive measures to provide liquidity to financial markets and to support the banking
system in providing credit to businesses. APRA announced that it would suspend the majority of its planned policy and supervision initiatives,
including substantive public consultations and actions to finalise revisions of the prudential framework, until 30 September 2020. APRA stated it would
progress certain data projects, such as data related to the impact of COVID-19 during this period.
ASIC announced that at least until 30 September 2020, the Commission would give enforcement priority to matters where there is the risk of
significant consumer harm, serious breaches of the law, risk to market integrity and time-critical matters. ASIC immediately suspended a number of
near-term activities that were not time-critical. On 14 April 2020, both ASIC and APRA published detailed lists of deferred reviews, meetings,
investigations and relief granted.
From March 2020, the ACCC has been providing urgent interim authorisation for companies within various industries to discuss and put in place
measures to allow access to essential services during the COVID-19 pandemic. This includes:
•two urgent interim authorisations to allow the Australian Banking Association and certain of its participating members, including Westpac, to work
together to implement a small business relief package, as well as to co-operate to provide supplementary relief packages for individuals and
businesses affected by COVID-19;
•the Australian Securitisation Forum, of which Westpac is a member, to allow its members to work together to assist smaller lenders to maintain
liquidity and issue loans to consumers and small businesses during the economic disruption caused by COVID-19; and
•the Financial Services Council, of which Westpac and St George are members, to allow its member life insurance companies to give effect to a
commitment to ensure that frontline healthcare workers are not denied life insurance, charged higher premiums or excluded from benefits, due to
exposure, or potential exposure, to COVID-19.
Royal Commission into the banking, superannuation and financial services industries
The Final Report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (Final Report) and the
Australian Government’s proposed response was released on 4 February 2019.
Implementation of the 76 express recommendations in the Final Report is likely to continue to have a significant impact on banking and financial
services entities and their regulators. Some of the most significant recommendations include those concerning the regulation of mortgage brokers,
changes to regulatory breach reporting, changes to unsolicited sales of financial products and the removal of grandfathered commissions.
In line with the Government’s Royal Commission implementation roadmap, on 31 January 2020 the Government released draft legislation for
consultation in relation to a number of Royal Commission recommendations.
The COVID-19 pandemic may alter the Government’s timeline for the passing of Royal Commission related legislation.
In keeping with a desire to be proactive, some recommendations in the Final Report have been implemented unilaterally by Westpac (where possible
and subject to any anticipated legislation or regulation being released). This approach may require Westpac to review and enhance its existing
practices at a later date, and some recommendations previously implemented may require additional uplift of existing practices by Westpac,
depending on the final legislation/regulation.

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Of the 49 recommendations which presently apply to Westpac, 13 recommendations have been implemented to date, with Westpac either
establishing new practices and procedures to meet the recommendations or having existing practices consistent with the recommendation.
Additionally, the Group has commenced work in relation to all the recommendations that have been the subject of legislative activity and/or regulatory
activity to date. This work will increase over the next 12 to 24 months as the Government completes its legislative agenda for the bulk of the
outstanding recommendations. There are 22 recommendations where implementation is underway. Most of these recommendations will require
legislative or regulatory action before implementation can be completed.
The remaining 14 recommendations require legislative or regulatory action before implementation work can commence. Westpac is undertaking
preparatory work where possible, including through participation in Government consultation.
In anticipation of the removal of grandfathering of conflicted remuneration payable to financial advisers effective from 1 January 2021, we are also
currently reviewing third party remuneration arrangements.
Other impacts arising from the Royal Commission include a number of claims being brought against financial institutions in relation to certain matters
considered during the Royal Commission, and the referral of several cases of misconduct to the financial regulators by Commissioner Hayne.
Regulatory reviews and inquiries
Provision of credit - reviews by and engagement with regulators
The provision and availability of credit for residential mortgage holders, property investors and businesses has continued to be a key area of
Government, regulator and industry focus in First Half 2020. Regulatory focus on credit from APRA has primarily related to serviceability at an
industry level and impacts to credit quality and provisioning from COVID-19, while on 9 December 2019 ASIC released updated guidance on
responsible lending obligations. Judicial guidance on the extent of responsible lending obligations was also obtained from the Federal Court in its
judgment in ASIC’s responsible lending test case against Westpac (with the judgment currently subject to an appeal by ASIC). More information on
these proceedings is set out in this section below.
The economic disruption caused by the COVID-19 pandemic has led Westpac and other major banks to offer certain mortgage and business
customers a deferral of certain interest and principal repayments of between 3 and 6 months. Both APRA and ASIC have supported the provision of
credit to customers in these circumstances but will remain closely engaged to understand the impact of these measures on Westpac’s credit risk
profile and liquidity. ASIC and APRA are taking an active interest in the number of hardship applications received by Westpac as the conditions
caused by the pandemic continue to evolve.
Prior to COVID-19, APRA engaged with Westpac on the adequacy of our credit risk management framework including our controls, policies and
operating systems. Following feedback from APRA, the Group is making a number of changes to its systems and controls to improve its end to end
approach in relation to its mortgage and business lending portfolios, as well as other key processes. This includes enhancing portfolio management
practices, data governance, systems upgrades (including data collection and rationalisation), strengthening collateral management processes and
improving assurance and oversight over our credit management frameworks. This program of work also addresses issues identified by Westpac’s
internal assurance and audit teams. This work is progressing where possible during the conditions caused by COVID-19.
Westpac expects further engagement with APRA on its work to improve its end to end credit processes.
Australian Competition and Consumer Commission (ACCC) inquiry into home loan pricing
On 14 October 2019, the ACCC was directed by the Treasurer of Australia to conduct an inquiry into home loan pricing during the period from 1
January 2019 to 31 October 2019. The inquiry has been established to:
•investigate the prices charged for home loans across the sector;
•consider how banks make pricing decisions, including their approach to passing on movements in the official cash rate;
•examine differences in the prices paid by new and existing customers;
•examine differences between the interest rates published by suppliers and the interest rates paid by customers; and
•investigate barriers that may prevent consumers from switching lenders.
An interim report was published on 27 April 2020 and a final report is due to the Treasurer by 30 September 2020.
AFCA look back review
On 4 February 2019, the Australian Government announced that, in response to the recommendations contained in the Royal Commission’s Final
Report, it would expand the remit of the Australian Financial Complaints Authority (AFCA) for 12 months so that it can consider customer claims
dating back to 1 January 2008 and award compensation where appropriate. AFCA has expanded its jurisdiction to consider these legacy complaints
for an additional 12 month period to 30 June 2020.
Increased regulatory powers and oversight
Financial Accountability Regime
On 4 February 2019, the Australian Government announced that in response to the recommendations contained in the Royal Commission’s Final
Report, it would extend the Banking Executive Accountability Regime to all APRA regulated entities. On 22 January 2020, the Australian Treasury
released a Proposal Paper in relation to the proposed Financial Accountability Regime (FAR). The Proposal Paper provides for (amongst other
things) ASIC and APRA to jointly administer the FAR and sets out enhanced penalties for individuals who fail to perform their obligations.
Submissions on the Proposal Paper closed on 14 February 2020 and Westpac made a submission. Westpac is considering the potential implications
of implementing the FAR including, for example, whether it will result in Westpac needing to appoint additional accountable persons. It is unclear

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due to delays caused by the COVID-19 pandemic, when the exposure draft of the proposed legislation will be released by the Australian Treasury.
ASIC Enforcement Review Taskforce
On 16 April 2018, the Australian Government agreed to implement all of the recommendations made by the ASIC Enforcement Review Taskforce in
its review of the suitability of ASIC’s existing regulatory tools.
Progress continues to be made in implementing these recommendations, including:
•the Financial Sector Reform (Hayne Royal Commission Response–Stronger Regulators (2019 Measures) Act 2020 (Cth) receiving royal assent
on 17 February 2020. The Act implements a number of powers in line with the recommendations, relating to search warrants, access to
telecommunications interception information, licensing and banning orders;
•the Taskforce releasing a report on 2 October 2019, which sets out ASIC’s observations on director and officer oversight of non-financial risk,
how directors and officers of large and complex financial services companies are discharging their duties in relation to oversight and monitoring of
non-financial risk, and ways that governance practices could be improved; and
•an exposure draft of the Financial Sector Reform (Hayne Royal Commission Response – Protecting Consumers (2020 Measures)) Bill 2020 (Cth)
being released on 31 January 2020. If passed, the Bill would reform the breach reporting regime for Australian financial services and credit
licensees. Due to the suspension of Parliament as a result of COVID-19, passage of the Bill has been delayed and it is not certain when it will be
introduced and take effect.
Product design and distribution obligations and product intervention power
On 5 April 2019, the Treasury Laws Amendment (Design and Distribution Obligations and Product Intervention Powers) Act 2019 (Cth) received royal
assent. The Act grants ASIC a product intervention power and introduces a new product design and distribution obligation on issuers and distributors.
The product intervention powers came into force on 6 April 2019, with the design and distribution obligations due to come into effect on 5 April 2021.
ACCC enforcement approach
On 25 February 2020, the ACCC outlined its compliance and enforcement priorities in its annual Compliance and Enforcement Policy refresh. While
competition issues in financial services is no longer specifically mentioned as an enforcement priority, criminal cartel conduct and anti-competitive
conduct remain enduring priorities for the ACCC and there are currently two active cartel proceedings (neither involving Westpac) in the financial
services industry. The ACCC is also currently undertaking market studies into home loan prices and insurance in Northern Australia. The ACCC’s
competition enforcement approach and objectives are supported by increased budget support from the Australian Government announced in
February 2020.
On 27 March 2020, the ACCC announced that while its 2020 Compliance and Enforcement Priorities remain in place, it will refocus its efforts to those
priorities of most relevance to competition and consumer issues arising from the impact of COVID-19.
Review into corporate criminal responsibility regime
On 29 April 2020, the Australian Law Reform Commission delivered the final report to the Attorney-General in relation to its comprehensive review of
Australia’s corporate criminal responsibility regime. The report is yet to be tabled in Parliament. Westpac will consider the findings and
recommendations of the final report once it is publicly available.
General regulatory changes affecting our business
Banking Code of Practice
The new ASIC approved Banking Code of Practice (Code) came into effect on 1 July 2019 for each bank that has subscribed to the Code (including
Westpac). The Code includes a range of new measures including a commitment to take extra care with customers in vulnerable circumstances and to
train staff to help in these circumstances, simplified loan contracts for small business written in plain English, better protection for guarantors and
stronger enforcement of the Code via the independent Banking Code Compliance Committee.
The Code has been further updated with key amendments to implement the recommendations contained in the Royal Commission’s Final Report.
These changes, which have been approved by ASIC and conditionally authorised by the ACCC relate to having a greater focus on customers in
remote areas and those with limited English, not allowing informal overdrafts on basic bank accounts without prior express agreement with the
customer, abolishing dishonour fees and overdrawn fees on basic bank accounts and following AUSTRAC’s guidance on the identification and
verification of persons of Aboriginal or Torres Strait Islander heritage. These updates were effective from 1 March 2020.
Open banking regime
The Treasury Laws Amendment (Consumer Data Right) Act 2019 (Cth) (CDR Act) received royal assent on 12 August 2019. The CDR Act amends
the Competition and Consumer Act 2010 (Cth), the Privacy Act 1988 (Cth) and the Australian Information Commissioner Act 2010 (Cth) to introduce a
consumer data right. The banking sector is the first sector to which the consumer data right will apply.
The consumer data right gives customers in Australia a right to direct that their data (starting with banking data) be shared with accredited third
parties. Data sharing facilitates competition through easier product comparison and switching. This has had significant implications for consumers and
banks.
On 20 December 2019, the ACCC announced that the commencement of Open Banking will be deferred from 1 February 2020 to 1 July 2020.
Westpac will now be required to share credit card, debit card, deposit account and transaction account data from 1 July 2020. Other obligations under
the Open Banking regime that were scheduled to commence on 1 July 2020 will be deferred to 1 November 2020. Westpac will be required to share
data relating to mortgages, personal loans, joint accounts, closed accounts, direct debits and scheduled payments from 1 November 2020. Other
brands in the Westpac Group will be