WBC – NZ Banking Group Disclosure Statement – 31 Mar 2020

ASX Release


26 MAY 2020

Westpac Banking Corporation – New Zealand Banking Group Disclosure
Statement

Westpac Banking Corporation (“Westpac”) today provides the attached Westpac New
Zealand Banking Group Disclosure Statement for the six months ended 31 March
2020.








For further information:

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


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


Level 18, 275 Kent Street
Sydney, NSW, 2000

Westpac
Banking
Corporation -
New Zealand
Banking Group
Di
sclosure Statement
For the six months ended 31 March 2020

This page has been intentionally left blank

Contents
Westpac Banking Corporation - New Zealand Banking Group 3
Directors’ and the Chief Executive Officer, NZ Branch’s statement4
Financial statements
Income statement5Note 6 Provisions for expected credit losses14
Statement of comprehensive income5Note 7 Deposits and other borrowings19
Balance sheet6Note 8 Debt issues19
Statement of changes in equity7Note 9 Related entities19
Statement of cash flows8
Note 1 Statement of accounting policies9
Note 10 Fair values of financial assets and financial
liabilities
20
Note 2 Net interest income11
Note 3 Non-interest income12
Note 11 Credit related commitments, contingent
assets and contingent liabilities
24
Note 4 Impairment charges/(benefits)13Note 12 Segment reporting24
Note 5 Loans13Note 13 Subsequent events25
Registered bank disclosures
i. General information26v. Insurance business37
ii. Additional financial disclosures29vi. Risk management policies37
iii. Asset quality35
iv. Credit and market risk exposures and capital
adequacy
36
Conditions of registration38
Independent auditor’s review report39
Glossary of terms
Certain information contained in this Disclosure Statement is required by the Registered Bank Disclosure Statements (Overseas Incorporated
Registered Banks) Order 2014 (as amended) (‘Order’).
In this Disclosure Statement, reference is made to five main reporting groups:
Overseas Bank – refers to Westpac Banking Corporation;
Overseas Banking Group – refers to the Overseas Bank and all other entities included in the Overseas Bank’s group for the purposes of public
reporting of the group financial statements in Australia;
NZ Branch – refers to the New Zealand business (as defined in the Order) of the Overseas Bank;
Westpac New Zealand – refers to Westpac New Zealand Limited; and
NZ Banking Group – refers to the financial reporting group (as defined in the Order) of the Overseas Bank. Controlled entities of the NZ Banking
Group are set out in Note 22 to the financial statements included in the Disclosure Statement for the year ended 30 September 2019.
Words and phrases not defined in this Disclosure Statement, but defined by the Order, have the meaning given by the Order when used in this
Disclosure Statement.

Directors’ and the Chief Executive Officer, NZ
Branch’s statement
4 Westpac Banking Corporation - New Zealand Banking Group
Each Director of the Overseas Bank and the Chief Executive Officer, NZ Branch, believe, after due enquiry, that, as at the date on which this
Disclosure Statement is signed, the Disclosure Statement:
(a) contains all information that is required by the Order; and
(b) is not false or misleading.
Each Director of the Overseas Bank and the Chief Executive Officer, NZ Branch, believe, after due enquiry, that, over the six months ended 31
March 2020:
(a) the Overseas Bank has complied with all conditions of registration that applied during that period, except as noted on page 38; and
(b) the NZ Branch and other members of the NZ Banking Group had systems in place to monitor and control adequately the material risks of relevant
members of the NZ Banking Group, including credit risk, concentration of credit risk, interest rate risk, currency risk, equity risk, liquidity risk and
other business risks, and that those systems were being properly applied. For this purpose, a relevant member of the NZ Banking Group means a
member of the NZ Banking Group that is not a member of Westpac New Zealand’s banking group, as defined in Westpac New Zealand’s Disclosure
Statement for the six months ended 31 March 2020.
The Disclosure Statement has been signed on behalf of all of the Directors by David Alexander McLean, Chief Executive, Westpac New Zealand,
and by Simon James Power as Chief Executive Officer, NZ Branch.
David McLean
Simon Power
Dated this 25
th
day of May 2020

Income statement for the six months ended 31 March 2020
Westpac Banking Corporation - New Zealand Banking Group 5
NZ BANKING GROUP
Six MonthsSix Months
EndedEnded
31 Mar 2031 Mar 19
$ millionsNoteUnauditedUnaudited
Interest income:
Calculated using the effective interest rate method2 1,886 2,052
Other2 33 45
Total interest income2 1,919 2,097
Interest expense2 (941) (1,086)
Net interest income 978 1,011
Net fees and commissions income3 82 102
Net wealth management and insurance income3 83 96
Trading income3 72 22
Other income3 16 46
Net operating income before operating expenses and impairment charges 1,231 1,277
Operating expenses (551) (494)
Impairment (charges)/benefits4 (210) (14)
Profit before income tax 470 769
Income tax expense (135) (203)
Net profit attributable to the owners of the NZ Banking Group 335 566
The above income statement should be read in conjunction with the accompanying notes.
Statement of comprehensive income for the six months ended 31 March 2020
NZ BANKING GROUP
Six MonthsSix Months
EndedEnded
31 Mar 2031 Mar 19
$ millions
UnauditedUnaudited
Net profit attributable to the owners of the NZ Banking Group 335 566
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Gains/(losses) recognised in equity on:
Investment securities (20) (6)
Cash flow hedging instruments 44 (70)
Transferred to income statement:
Cash flow hedging instruments 45 21
Income tax on items taken to or transferred from equity:
Investment securities 5 2
Cash flow hedging instruments (24) 14
Items that will not be reclassified subsequently to profit or loss (net of tax)
Remeasurement of defined benefit obligation (5) (8)
Other comprehensive income for the period (net of tax) 45 (47)
Total comprehensive income attributable to the owners of the NZ Banking Group 380 519
The above statement of comprehensive income should be read in conjunction with the accompanying notes.

Balance sheet as at 31 March 2020
6 Westpac Banking Corporation - New Zealand Banking Group
NZ BANKING GROUP
31 Mar 2030 Sep 19
$ millionsNote
UnauditedAudited
Assets
Cash and balances with central banks 5,210 2,002
Collateral paid 363 417
Trading securities and financial assets measured at fair value through income statement ('FVIS') 6,587 4,871
Derivative financial instruments 8,806 6,257
Investment securities 3,778 4,469
Loans5 87,425 84,626
Other financial assets 394 400
Life insurance assets 350 335
Due from related entities 6,263 2,367
Property and equipment 421 137
Deferred tax assets 184 138
Intangible assets 669 685
Other assets 75 58
Total assets 120,525 106,762
Liabilities
Collateral received 1,331 623
Deposits and other borrowings7 72,594 65,606
Other financial liabilities 3,074 1,748
Derivative financial instruments 7,677 5,825
Due to related entities 3,631 2,892
Debt issues8 19,526 17,846
Current tax liabilities 25 91
Provisions 194 150
Other liabilities 426 139
Loan capital 3,356 3,185
Total liabilities 111,834 98,105
Net assets 8,691 8,657
Head office account
Branch capital 1,300 1,300
Retained profits 1,050 989
Total head office account 2,350 2,289
NZ Banking Group equity
Share capital 143 143
Reserves (19) (69)
Retained profits 6,217 6,294
Total NZ Banking Group equity 6,341 6,368
Total equity attributable to the owners of the NZ Banking Group 8,691 8,657
The above balance sheet should be read in conjunction with the accompanying notes.

Statement of changes in equity for the six months ended 31 March 2020
Westpac Banking Corporation - New Zealand Banking Group 7
NZ BANKING GROUP
NZ BRANCHOTHER MEMBERS OF THE NZ BANKING GROUP
Head Office
Account
Reserves
Available-
for-saleInvestmentCash Flow
BranchRetained Share SecuritiesSecuritiesHedgeRetainedTotal
$ millions
Capital ProfitsCapital ReserveReserveReserveProfitsEquity
As at 30 September 2018 (Audited) 1,300 869 143 9 - (64) 6,126 8,383
Impact on adoption of new accounting standards - - - (9) 9 - (24) (24)
As at 1 October 2018 (Restated) 1,300 869 143 - 9 (64) 6,102 8,359
Six months ended 31 March 2019 (Unaudited)
Net profit attributable to the owners of the NZ
Banking Group - 39 - - - - 527 566
Net gains/(losses) from changes in fair value - - - - (6) (70) - (76)
Income tax effect - - - - 2 20 - 22
Transferred to income statement - - - - - 21 - 21
Income tax effect - - - - - (6) - (6)
Remeasurement of defined benefit obligations - - - - - - (11) (11)
Income tax effect - - - - - - 3 3
Total comprehensive income for the
six months ended 31 March 2019 - 39 - - (4) (35) 519 519
Transactions with owners:
Dividends paid on ordinary shares - - - - - - (437) (437)
As at 31 March 2019 (Unaudited) 1,300 908 143 - 5 (99) 6,184 8,441
As at 30 September 2019 (Audited) 1,300 989 143 - 4 (73) 6,294 8,657
Six months ended 31 March 2020 (Unaudited)
Net profit attributable to the owners of the NZ
Banking Group - 61 - - - - 274 335
Net gains/(losses) from changes in fair value - - - - (20) 44 - 24
Income tax effect - - - - 5 (12) - (7)
Transferred to income statement - - - - - 45 - 45
Income tax effect - - - - - (12) - (12)
Remeasurement of defined benefit obligations - - - - - - (7) (7)
Income tax effect - - - - - -
2
2
Total comprehensive income for the
six months ended 31 March 2020 - 61 - - (15) 65 269 380
Transactions with owners:
Dividends paid on ordinary shares (refer to Note 9) - - - - - - (346) (346)
As at 31 March 2020 (Unaudited) 1,300 1,050 143 - (11) (8) 6,217 8,691
The above statement of changes in equity should be read in conjunction with the accompanying notes.

Statement of cash flows for the six months ended 31 March 2020
8 Westpac Banking Corporation - New Zealand Banking Group
NZ BANKING GROUP
Six MonthsSix Months
EndedEnded
31 Mar 2031 Mar 19
$ millionsUnauditedUnaudited
Cash flows from operating activities
Interest received
1,942 2,091
Interest paid
(1,043) (1,117)
Non-interest income received
215 224
Operating expenses paid
(463) (464)
Income tax paid (264) (286)
Cash flows from operating activities before changes in operating assets and liabilities 387 448
Net (increase)/decrease in:
Collateral paid
54 (333)
Trading securities and financial assets measured at FVIS
(1,745) (141)
Loans
(2,953) (1,618)
Other financial assets
48 1
Due from related entities
(2,931) (125)
Other assets
(8) (3)
Net increase/(decrease) in:
Collateral received
708 (271)
Deposits and other borrowings
6,988 2,009
Other financial liabilities
1,388 220
Due to related entities
(22) (2)
Other liabilities
12 5
Net movement in external and related entity derivative financial instruments 196 (186)
Net cash provided by/(used in) operating activities 2,122 4
Cash flows from investing activities
Purchase of investment securities
(65) (1,535)
Proceeds from investment securities
714 1,363
Net movement in life insurance assets
(15) 15
Proceeds from disposal of associates
- 48
Purchase of capitalised computer software
(24) (21)
Purchase of property and equipment (4) (16)
Proceeds from disposal of property and equipment - 3
Net cash provided by/(used in) investing activities 606 (143)
Cash flows from financing activities
Net movement in due to related entities
(47) (23)
Proceeds from debt issues
3,029 1,721
Repayments of debt issues
(2,093) -
Payments for the principal portion of lease liabilities
(31) -
Dividends paid to ordinary shareholders (346) (437)
Net cash provided by/(used in) financing activities 512 1,261
Net increase/(decrease) in cash and cash equivalents
3,240 1,122
Cash and cash equivalents at beginning of the period 2,074 1,529
Cash and cash equivalents at end of the period 5,314 2,651
Cash and cash equivalents at end of the period comprise:
Cash on hand
464 290
Balances with central banks
4,746 1,950
Interbank lending classified as cash and cash equivalents
1
104 411
Cash and cash equivalents at end of the period 5,314 2,651
1
Interbank lending is included within other financial assets on the balance sheet.
The above statement of cash flows should be read in conjunction with the accompanying notes.

Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group 9
Note 1 Statement of accounting policies
These condensed consolidated interim financial statements (‘financial statements’) have been prepared and presented in accordance with the
Order and Generally Accepted Accounting Practice, as appropriate for for-profit entities, and the New Zealand equivalent to International
Accounting Standard 34 Interim Financial Reporting and should be read in conjunction with the financial statements included in the Disclosure
Statement for the year ended 30 September 2019. These financial statements comply with International Accounting Standard 34 Interim Financial
Reporting as issued by the International Accounting Standards Board (‘IASB’).
Financial statements preparation
These financial statements have been prepared under the historical cost convention, as modified by applying fair value accounting to investment
securities and financial assets and financial liabilities (including derivative instruments) measured at FVIS or in other comprehensive income
(‘FVOCI’). The going concern concept has been applied.
All amounts in these financial statements have been rounded to the nearest million dollars unless otherwise stated.
Comparative information has been revised where appropriate to enhance comparability.
All policies have been applied on a basis consistent with that used in the financial year ended 30 September 2019, except as set out in the
‘amendments to accounting standards effective this period’ section below.
The areas of judgement, estimates and assumptions in these financial statements, including the key sources of estimation uncertainty, are
consistent with those in the Disclosure Statement for the year ended 30 September 2019 except for as noted below:
Goodwill
As at 31 March 2020, the COVID-19 pandemic has led to significant changes with adverse effects to the NZ Banking Group’s economic environment,
which is an indicator of impairment. As a result, an impairment test was performed which confirmed that the NZ Banking Group continues to have
considerable headroom when determining whether goodwill is recoverable, and no impairment should be recognised.
We have reassessed the base assumptions and revised them where we consider it necessary in order to provide a reasonable estimate of the value-
in-use of the business units and the NZ Banking Group in the current environment. We have revised the assumptions used at 30 September 2019 as
reported in the Disclosure Statement from a zero growth rate beyond 2 year forecasts to a 2% growth rate beyond 3.5 year forecasts.
Given the uncertainty of a rapidly changing economic environment, market sentiment, and regulatory and industry responses, the forecasts are
likely to change. This will continue to be reviewed and a further impairment test will be performed at year end.
Provisions for expected credit losses (‘ECL’)
Details on specific judgements in relation to the impact of COVID-19 on the calculation of provisions for ECL are included in Note 6.
Amendments to Accounting Standards effective this period
NZ IFRS 16 Leases
NZ IFRS 16 Leases (‘NZ IFRS 16’) was adopted by the NZ Banking Group on 1 October 2019. NZ IFRS 16 requires all operating leases of greater than 12
months duration be presented on balance sheet by the lessee as a right-of-use (‘ROU’) asset and lease liability. There are no significant changes to
lessor accounting.
The NZ Banking Group adopted the standard using the simplified approach to transition with no restatement of comparative information and no
effect on retained earnings.
The lease liabilities are measured at the present value of the remaining lease payments, discounted at the lessee’s incremental borrowing rate at 1
October 2019. On transition to the new standard, the lease liability recognised in other liabilities was $292 million. The associated ROU assets were
measured at an amount equal to the lease liability. The ROU assets are recognised in property and equipment.
All leases on balance sheet give rise to a combination of interest expense on the lease liability and depreciation of the ROU asset. Interest expense is
recognised in net interest income on an effective yield basis. Depreciation expense is recognised in operating expenses on a straight-line basis over
the lease term.
Extension options are included in a number of lease contracts. The extension options are only included in the lease term if the lease is reasonably
certain to be extended, which is assessed by the NZ Banking Group at the lease commencement date. The assessment is reviewed if a significant
event or significant change in circumstances occurs which affects this assessment and is within the control of the NZ Banking Group.
The NZ Banking Group used the incremental borrowing rate based on the remaining maturity of leases at the date of transition as the discount rate
when determining present value. The weighted average incremental borrowing rate applied was 2.40%.
The table below shows the reconciliation of operating lease commitments disclosed as at 30 September 2019 to the lease liability recognised on 1
October 2019:

Notes to the financial statements
10 Westpac Banking Corporation - New Zealand Banking Group
Note 1 Statement of accounting policies (continued)
NZ BANKING GROUP
$ millions
Operating lease commitments at 30 September 2019 (Audited) 306
Recognition exemption for short-term leases
(2)
Adjustment for extension options reasonably certain to be exercised
21
Undiscounted lease payments as at 30 September 2019 325
Effect of discounting (weighted average incremental borrowing rate of 2.40%) (33)
Lease liability as at 1 October 2019 (Audited) 292
NZ IFRIC 23 Uncertainty over Income Tax Treatments
NZ IFRIC 23 Uncertainty over Income Tax Treatments (‘NZ IFRIC 23’) was adopted by the NZ Banking Group on 1 October 2019. NZ IFRIC 23 clarifies
the recognition and measurement criteria in NZ IAS 12 Income Taxes where there is uncertainty over income tax treatments, and requires an
assessment of each uncertain tax position as to whether it is probable that a taxation authority will accept the position.
Where it is not considered probable, the effect of the uncertainty will be reflected in determining the relevant taxable profit or loss, tax bases,
unused tax losses and unused tax credits or tax rates. The amount will be determined as either the single most likely amount or the sum of the
probability weighted amounts in a range of possible outcomes, whichever better predicts the resolution of the uncertainty. Judgements will be
reassessed as and when new facts and circumstances are presented.
NZ IFRIC 23 did not have a material impact on the NZ Banking Group.
Interest Rate Benchmark Reform
Interest Rate Benchmark Reform - amendments to NZ IFRS 9 Financial Instruments (‘NZ IFRS 9’), NZ IAS 39 Financial Instruments: Recognition and
Measurement (‘NZ IAS 39’) and NZ IFRS 7 Financial Instruments: Disclosures (‘NZ IFRS 7’), was early adopted, as permitted by the standard, by the
NZ Banking Group on 1 October 2019. These amendments allow the NZ Banking Group to apply certain exceptions to the standard hedging
requirements in respect of hedge relationships that are impacted by a market wide interest rate benchmark reform. Specifically the exceptions
allow the NZ Banking Group to:
 Assume that the interest rate benchmark on which the hedged cash flows are based is not altered as a result of the reform when determining
whether a forecast transaction is highly probable;
 Assume that the interest rate benchmark of the hedged item/instrument is not altered for the life of the hedge when assessing whether a hedge is
expected to continue to be highly effective;
 A hedge relationship impacted by uncertainty arising from benchmark interest rate reform is not required to pass the 80%-125% effectiveness
test, however any actual ineffectiveness must be recorded in the income statement; and
 The determination of a designated component of an exposure in portfolio hedges is only required to be made the first time that component is
designated, and not when the portfolio is de-designated and re-designated.
The exceptions allowed by the amendments are being applied to the NZ Banking Group’s London Interbank Offered Rate (‘LIBOR’) linked hedge
relationships that mature after the LIBOR discontinuance date of 31 December 2021. The NZ Banking Group’s LIBOR transition project has
commenced focusing on identification of exposures and internal processes that will be affected by the changes.
A key assumption made when performing hedge accounting at the reporting date is that both the hedged item and instrument will be amended
from existing LIBOR linked floating rates to new alternative reference rates (‘ARRs’) on the same date. Where actual differences between those dates
arise hedge ineffectiveness will be recorded in the income statement.
On 9 April 2020, the IASB issued an exposure draft for Interest Rate Benchmark Reform – Phase 2 which considers the issues that will affect financial
reporting when an existing benchmark interest rate is replaced by an ARR. The NZ Banking Group continues to monitor these developments and the
expected impact.
The table below summarises the LIBOR exposures the NZ Banking Group currently has in hedging relationships maturing after 31 December 2021
which will be impacted by the Interest Rate Benchmark Reform and the quantum of those risks. The extent of the risk exposure also reflects the
notional amounts of related hedging instruments.
NZ BANKING GROUP
31 Mar 20
Unaudited
$ millions
Notional hedged exposure
Benchmark
USD LIBOR 2,076

Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group 11
Note 2 Net interest income
NZ BANKING GROUP
Six MonthsSix Months
EndedEnded
31 Mar 2031 Mar 19
$ millions
UnauditedUnaudited
Interest income
Calculated using the effective interest rate method
Cash and balances with central banks 7 12
Collateral paid 2 4
Investment securities 58 78
Loans 1,802 1,947
Due from related entities 16 11
Other interest income 1 -
Total interest income calculated using the effective interest rate method 1,886 2,052
Other
Trading securities and financial assets measured at FVIS 33 42
Due from related entities - 3
Total other 33 45
Total interest income 1,919 2,097
Interest expense
Calculated using the effective interest rate method
Collateral received 3 4
Deposits and other borrowings 532 664
Due to related entities 16 26
Debt issues 135 141
Loan capital 71 74
Other interest expense 9 3
Total interest expense calculated using the effective interest rate method 766 912
Other
Deposits and other borrowings 8 11
Due to related entities - 3
Debt issues 24 4
Other interest expense
1
143 156
Total other 175 174
Total interest expense 941 1,086
Net interest income 978 1,011
1
Includes the net impact of the NZ Banking Group's interest rate and liquidity management activities.

Notes to the financial statements
12 Westpac Banking Corporation - New Zealand Banking Group
Note 3 Non-interest income5967-2 04-18
NZ BANKING GROUP
Six MonthsSix Months
EndedEnded
31 Mar 2031 Mar 19
$ millions
UnauditedUnaudited
Net fees and commissions income
Facility fees 30 25
Transaction fees and commissions 75 94
Other non-risk fee income 11 13
Fees and commissions income 116 132
Credit card loyalty programs (19) (16)
Transaction fees and commissions related expenses (15) (14)
Fees and commissions expenses (34) (30)
Net fees and commissions income 82 102
Net wealth management and insurance income
Wealth management income 27 27
Net life insurance income and change in policy liabilities 56 69
Net wealth management and insurance income 83 96
Trading income 72 22
Other income
Net ineffectiveness on qualifying hedges 15 -
Other non-interest income 1 46
Total other income 16 46
Total non-interest income 253 266
Non-interest income in scope of NZ IFRS 15 Revenue from Contracts with Customers (‘NZ IFRS 15’) can be further disaggregated into the
following operating segments and is consistent with the segment descriptions detailed in Note 12:
NZ BANKING GROUP
$ millions
Consumer
Banking and
Wealth
Commercial,
Corporate and
Institutional
Investments and
Insurance
Reconciling
ItemsTotal
Six months ended 31 March 2020 (Unaudited)
Fees and commissions income
Facility fees 20 8 - 2 30
Transaction fees and commissions 41 30 - 4 75
Other non-risk fee income 5 9 - (3) 11
Fees and commissions income 66 47 - 3 116
Fees and commissions expenses (34) - - - (34)
Net fees and commissions income 32 47 - 3 82
Wealth management income - - 19 8 27
Six months ended 31 March 2019 (Unaudited) (restated)
Fees and commissions income
Facility fees 14 7 - 4 25
Transaction fees and commissions 59 36 - (1) 94
Other non-risk fee income 6 12 - (5) 13
Fees and commissions income 79 55 - (2) 132
Fees and commissions expenses (30) - - - (30)
Net fees and commissions income 49 55 - (2) 102
Wealth management income - - 22 5 27

Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group 13
Note 4 Impairment charges/(benefits)
NZ BANKING GROUP
Six MonthsSix Months
Ended Ended
31 Mar 2031 Mar 19
$ millions
UnauditedUnaudited
Provisions raised/(released):
Performing 133 (8)
Non-performing 68 14
Bad debts written-off/(recovered) directly to the income statement 9 8
Impairment charges/(benefits) 210 14
of which relates to:
Loans and credit commitments 210 14
Impairment charges/(benefits) 210 14
Impairment charges/(benefits) on all other financial assets are not material to the NZ Banking Group. Refer to Note 6 for details on the impact of
COVID-19 on the provision for ECL.
Note 5 Loans
NZ BANKING GROUP
31 Mar 2030 Sep 19
$ millions
UnauditedAudited
Residential mortgages 53,411 51,504
Other retail 3,503 3,753
Corporate 30,858
29,579
Other 159
111
Total gross loans 87,931 84,947
Provisions for ECL on loans (Note 6) (506) (321)
Total net loans 87,425 84,626
As at 31 March 2020, $7,531 million of housing loans, accrued interest (representing accrued interest on the outstanding housing loans) and cash
(representing collections of principal and interest from the underlying housing loans) were used by the NZ Banking Group to secure the
obligations of Westpac Securities NZ Limited (‘WSNZL’) under Westpac New Zealand’s Global Covered Bond Programme (‘CB Programme’) (30
September 2019: $7,530 million). These pledged assets were not derecognised from the NZ Banking Group’s balance sheet in accordance with the
accounting policies outlined in Note 1 to the financial statements included in the Disclosure Statement for the year ended 30 September 2019. As
at 31 March 2020, the New Zealand dollar equivalent of bonds issued by WSNZL under the CB Programme was $5,502 million (30 September 2019:
$5,274 million).

Notes to the financial statements
14 Westpac Banking Corporation - New Zealand Banking Group
Note 6 Provisions for expected credit losses
Loans and credit commitments
The reconciliation of the provision for ECL for loans and credit commitments as at 31 March 2020 below has been determined by an aggregation of
monthly movements over the period. The key line items in the reconciliation represent the following:
The transfers between stages lines represent transfers between stage 1, stage 2 and stage 3 prior to remeasurement of the provision for ECL.
The other charges/(credits) to the income statement line represents the impact on the provision for ECL due to changes in credit quality
during the period (including transfers between stages), changes due to forward looking economic scenarios, the COVID-19 overlay, and
partial repayments and additional drawdowns on existing facilities over the period.
Write-offs represent a reduction in the provision for ECL as a result of derecognition of exposures where there is no reasonable expectation
of full recovery.
Movements in components of loss allowances
The following table shows the collectively assessed provisions (‘CAP’) and individually assessed provisions (‘IAP’) for loans and credit commitments.
NZ BANKING GROUP
31 Mar 20
Unaudited
PerformingNon-performing
Stage 1Stage 2Stage 3Stage 3
$ millions
CAPCAPCAPIAP
Total
Provision for ECL as at 1 October 2019 91 180 53 28 352
Due to changes in credit quality:
Transfers to Stage 1 117 (110) (7) - -
Transfers to Stage 2 (16) 33 (14) (3) -
Transfers to Stage 3 CAP - (22) 23 (1) -
Transfers to Stage 3 IAP - (19) (1) 20 -
Reversals of previously recognised impairment charges - - - (7) (7)
New financial assets originated 9 - - - 9
Financial assets derecognised during the period (7) (14) (9) - (30)
Changes in CAP due to amounts written off - - (21) - (21)
Other charges/(credits) to the income statement (79) 241 56 32 250
Total charges/(credits) to the income statement for ECL 24 109 27 41 201
Amounts written off from IAP - - - (1) (1)
Total provision for ECL on loans and credit commitments as
at 31 March 2020
115 289 80 68 552
Presented as:
Provision for ECL on loans (refer to Note 5) 97 261 80 68 506
Provision for ECL on credit commitments 18 28 - - 46
Total provision for ECL on loans and credit commitments as
at 31 March 2020
115 289 80 68 552

Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group 15
Note 6 Provisions for expected credit losses (continued)
NZ BANKING GROUP
30 Sep 19
Audited
PerformingNon-performing
Stage 1Stage 2Stage 3Stage 3
$ millions
CAPCAPCAPIAP
Total
Provision for ECL as at 1 October 2018 103 203 53 36 395
Due to changes in credit quality:
Transfers to Stage 1 261 (245) (16) - -
Transfers to Stage 2 (16) 43 (26) (1) -
Transfers to Stage 3 CAP - (38) 42 (4) -
Transfers to Stage 3 IAP - - (8) 8 -
Reversals of previously recognised impairment charges - - - (15) (15)
New financial assets originated 24 - - - 24
Financial assets derecognised during the year (19) (41) (21) - (81)
Changes in CAP due to amounts written off - - (53) - (53)
Other charges/(credits) to the income statement (262) 258 82 9 87
Total charges/(credits) to the income statement for ECL (12) (23) - (3) (38)
Amounts written off from IAP - - - (5) (5)
Total provision for ECL on loans and credit commitments as
at 30 September 2019
91 180 53 28 352
Presented as:
Provision for ECL on loans (refer to Note 5) 76 164 53 28 321
Provision for ECL on credit commitments 15 16 - - 31
Total provision for ECL on loans and credit commitments as
at 30 September 2019
91 180 53 28 352
Impacts of changes in gross financial assets on loss allowances
The following table explains how changes in gross carrying amounts of loans during the period have contributed to changes in the provisions for
ECL on loans.
It is important to note that as a result of the COVID-19 overlay (discussed in the ‘COVID-19 overlay’ section below), the gross carrying amount is
impacted by $5.0 billion of loans ($3.7 billion relating to the business portfolio and $1.3 billion relating to the retail portfolio) transferred from
stage 1 to stage 2 on the same basis as the overlays for determining a significant increase in credit risk (‘SICR’) were. As with determining the level
of overlays to reflect the provision for ECL associated with a SICR, there is equally a degree of uncertainty with the amount of loans reflected in
stage 2. In particular, while the provision for ECL as a proportion of gross carrying amount on stage 2 loans has decreased, these exposures
referred to in determining the COVID-19 overlay are still performing, and while some may experience a credit deterioration we do not expect that
all these exposures used to calculate the overlay will result in a loss. We expect that the treatment of these loans will continue to evolve as the
situation unfolds and more data is available to accurately model and understand the credit risk/loss implications from the COVID-19 pandemic.

Notes to the financial statements
16 Westpac Banking Corporation - New Zealand Banking Group
Note 6 Provisions for expected credit losses (continued)
NZ BANKING GROUP
31 Mar 20
Unaudited
Performing Non-performing
Stage 1Stage 2Stage 3Stage 3
$ millions
CAPCAPCAPIAP
Total
Total gross carrying amount as at 1 October 2019 80,435 4,064 379 69 84,947
Transfers:
Transfers to Stage 1 2,168 (2,121) (47) - -
Transfers to Stage 2 (7,649) 7,732 (69) (14) -
Transfers to Stage 3 CAP (43) (225) 271 (3) -
Transfers to Stage 3 IAP - (87) (11) 98 -
Net further lending/(repayment) (1,217) 44 (11) (2) (1,186)
New financial assets originated 11,083 - - - 11,083
Financial assets derecognised during the period (6,542) (280) (66) (3) (6,891)
Amounts written-off - - (21) (1) (22)
Total gross carrying amount as at 31 March 2020 78,235 9,127 425 144 87,931
Provision for ECL as at 31 March 2020 (97) (261) (80) (68) (506)
Total net carrying amount as at 31 March 2020 78,138 8,866 345 76 87,425
NZ BANKING GROUP
30 Sep 19
Audited
Performing Non-performing
Stage 1Stage 2Stage 3Stage 3
$ millions
CAPCAPCAPIAP
Total
Total gross carrying amount as at 1 October 2018 76,946 3,775 383 80 81,184
Transfers:
Transfers to Stage 1 4,205 (4,108) (92) (5) -
Transfers to Stage 2 (5,058) 5,176 (115) (3) -
Transfers to Stage 3 CAP (158) (347) 519 (14) -
Transfers to Stage 3 IAP (6) (2) (40) 48 -
Net further lending/(repayment) (2,475) 228 (76) (24) (2,347)
New financial assets originated 17,749 - - - 17,749
Financial assets derecognised during the year (10,768) (658) (147) (8) (11,581)
Amounts written-off - - (53) (5) (58)
Total gross carrying amount as at 30 September 2019 80,435 4,064 379 69 84,947
Provision for ECL as at 30 September 2019 (76) (164) (53) (28) (321)
Total net carrying amount as at 30 September 2019 80,359 3,900 326 41 84,626
Impact of COVID-19 on the provision for ECL for the six months ended 31 March 2020
COVID-19 has had a significant impact on global and domestic economies and, as such, many of the NZ Banking Group’s customers. The current
and prospective rapid deterioration in the economy due to COVID-19 has resulted in a material increase in the provision for ECL.
The following table attributes the other charges/(credits) to the income statement of the movements in components of loss allowances for the
period.

Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group 17
Note 6 Provisions for expected credit losses (continued)
NZ BANKING GROUP
31 Mar 20
$ millionsUnaudited
Modelled provision for ECL using updated economic inputs / weightings 97
COVID-19 overlay 49
Impact of COVID-19 on the provision for ECL as at 31 March 2020 146
Other net movements 104
Total other charges/(credits) to the income statement for the six months ended 31 March 2020 250
Details of these changes, which are based on reasonable and supportable information up to the date of this disclosure statement are provided
below.
Modelled provision for ECL
The modelled provision for ECL is a probability weighted estimate based on three scenarios which together are representative of the NZ Banking
Group’s view of the forward-looking distribution of potential loss outcomes. The increase in provisions as a result of changes in modelled ECL are
reflected through the “Other charges/(credits) to the income statement” line in the “Movements in components of loss allowances” table. Of the
$250 million total other charges/(credits) to the income statement, $97 million relates to updates made to the modelling inputs to address the
COVID-19 impacts on the NZ Banking Group’s customers. “Other net movements” includes changes in modelling inputs and portfolio changes not
related to COVID-19 including migration from stage 2 (performing) to stage 3 (non-performing).
The base case scenario uses current NZ Banking Group economic forecasts and reflects the latest available macroeconomic view which shows a
deterioration in the short-term, with a subsequent recovery. This view considers both the economic and societal impacts of COVID-19 as well as
the government stimulus measures implemented to cushion the impacts. The NZ Banking Group’s economic forecast assumes the following:
 a short-term contraction with annual GDP growth to decline to -13.7% in June 2020 quarter, improving to a contraction of -3.5% in the December
2020 quarter, and a recovery to positive growth over 2021 (all figures based on growth over the same quarter of the previous year);
 a decline of 5% in residential property prices in the year to December 2020, with a further fall of 6% by the end of the March quarter in 2021.
Prices are expected to be rising again later in 2021.
The downside scenario is a more severe scenario with ECL higher than those under the current base case scenario. The more severe loss outcome
for the downside is generated under a recession scenario in which the combination of negative GDP growth, declines in residential property prices
and an increase in the unemployment rate simultaneously impact ECL across all portfolios from the reporting date.
The upside scenario represents a modest improvement to the base case.
The following sensitivity table shows the reported provision for ECL based on the probability weighted scenarios and what the provisions for ECL
would be assuming a 100% weighting is applied to the base case scenario and to the downside scenario (with all other assumptions, including
customer risk grades, held constant).
NZ BANKING GROUP
31 Mar 20
$ millionsUnaudited
Reported probability-weighted ECL 552
100% base case ECL 424
100% downside ECL 748
The following table indicates the weightings applied by the NZ Banking Group as at 31 March 2020 and 30 September 2019.
31 Mar 2030 Sep 19
Macroeconomic scenario weightings (%)UnauditedAudited
Upside510
Base5562.5
Downside4027.5
The increase in weighting to the downside scenario since 30 September 2019 reflects 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 economic impact followed by a
subsequent recovery. There is a risk that the economic impacts of COVID-19 could be deeper or more prolonged, leading to higher credit losses
than those modelled under the base case.

Notes to the financial statements
18 Westpac Banking Corporation - New Zealand Banking Group
Note 6 Provisions for expected credit losses (continued)
The COVID-19 pandemic is leading to material structural shifts in the behaviour of the economy and customers, and unprecedented actions by
banks, governments and regulators in response. ECL models are expected to be subject to a higher than usual level of uncertainty during this
period. In this environment, there is a heightened need for the application of judgement in order to reflect these evolving relationships and risks.
COVID-19 overlay
While the impacts on the broad economy are included in the assumptions used in the economic scenarios and the weightings applied to these
scenarios, these general economy wide impacts will not reflect the specific impact on individual customers. As the full impacts of the COVID-19
pandemic were yet to be felt at the balance date, the NZ Banking Group is yet to see the anticipated increase in delinquencies, downgrades and
defaults. As these expected future downgrades are not currently captured in the modelled outcome, the NZ Banking Group has specifically
considered the likely industry specific and retail customer impacts and raised a $49 million overlay in addition to the modelled provision.
The COVID-19 overlay reflects that the ECL model does not yet fully capture loans and credit commitments for which there has been a SICR as a
result of COVID-19, as we have not yet observed any significant impact to customer credit ratings. We expect that the treatment of these loans
and credit commitments will evolve as the situation unfolds and more data is available to model or understand the credit risk/loss implications
from the COVID-19 pandemic and the mitigating impact of government stimulus packages. Over time we expect the overlay to reduce as the
impact will be better reflected in the modelled outcome.
We note that while deferral of payments by customers in hardship arrangements is generally treated as an indication of a SICR, the deferral of
payments under the current COVID-19 support packages for mortgages and business loans has not, in isolation, been treated as an indication of
SICR. These packages are available to customers who have had income losses as a result of COVID-19, who otherwise had up to date payment
status prior to the onset of COVID-19, and have been designed to provide short-term cash flow support while the most significant COVID-19
restrictions are in place. As these are expected to be short-term in nature, there is an expectation that most customers making use of the
arrangements will subsequently return to normal trading or employment arrangements. Accordingly, at this stage, we do not consider that
customers making use of the packages have necessarily experienced a SICR as this assessment is based on changes in lifetime probability of
default. This is consistent with the ‘IFRS 9 and COVID-19’ guidance issued by the IASB on 27 March 2020.
We will reassess this treatment as the situation evolves and the longer-term impacts of the COVID-19 pandemic become clearer. Beyond the
specific COVID-19 support packages, it is likely that some customers will move into general hardship arrangements and will thus be treated as
having experienced a SICR.
As an alternative to treating all customers who are making use of the COVID-19 support packages as having experienced a SICR, we have
considered the likely impacts at a portfolio level and raised a provision for lifetime ECL for our business and retail segments where a SICR has likely
occurred as described below.
Business lending (including institutional)
Industry segments have been rated as high, medium or low risk based on judgement as to the likely economic impact of COVID-19 on that
industry. We have assessed that the most severely impacted customers are those in industries impacted by social distancing, travel, supply chain
disruption and industries adjacent to these. The high impacted industries include transport, manufacturing, retail trade, entertainment and
hospitality, travel, tourism, food and beverage. The most significant second order impacts are on commercial real estate and construction.
In determining which exposures in high and medium rated industries should be included in determining the ECL overlay, we have considered
factors such as whether exposures are investment or non-investment risk grade, potential to raise capital or attract additional funding and
capacity to take other measures to support their businesses. We considered the increase in provisions that would arise if we were to increase the
modelled provisions for these customers to the expected lifetime ECL (stage 2) in significantly stressed macroeconomic conditions using current
customer risk grades. For the medium rated industries, a similar comparison was performed to consider the increase in a 12-month ECL (stage 1)
in moderately stressed macroeconomic conditions. We then applied judgement to estimate the necessary increase in provisions.
Based on this judgement, we have identified $9 billion of high rated business portfolio loans and credit commitments on which a lifetime ECL
overlay has been determined. This has resulted in a $7 million overlay for high rated industries which is included in stage 2 provisions. A $16 million
overlay for medium rated industries is included in stage 1 and stage 2 provisions.
The judgements and assumptions used in estimating the overlays will be reviewed and refined as the COVID-19 pandemic evolves. We expect the
overlay to be reduced as we observe customer risk grade migration through the portfolio.
Retail lending
The forecast structural increase in long-term unemployment rates is expected to result in longer term increases in stage 2 balances and losses. A
portfolio level increase in the stage 2 population of 2.5% for New Zealand retail (representing the expected medium-term increase in
unemployment) is used to derive this overlay. This approach assumes that the NZ Banking Group’s customer base is representative of the wider
community. It reflects that, whilst individual customer impacts are not yet evident in customer credit performance, there has been a SICR for a
proportion of the portfolio.
We have identified $1.5 billion of retail exposures on which a lifetime ECL overlay has been determined. This has resulted in a $26 million overlay
which is included in stage 2 provisions.

Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group 19
Note 7 Deposits and other borrowings-2 04-18
NZ BANKING GROUP
31 Mar 2030 Sep 19
$ millionsUnauditedAudited
Certificates of deposit 3,543 1,142
Non-interest bearing, repayable at call 9,778 6,871
Other interest bearing:
At call 26,505 24,053
Term 32,768 33,540
Total deposits and other borrowings 72,594 65,606
Deposits and other borrowings have been recognised under both the historical cost convention and by applying fair value accounting to certain
products. Refer to Note 10 for further details.
Note 8 Debt issues
NZ BANKING GROUP
31 Mar 2030 Sep 19
$ millionsUnauditedAudited
Short-term debt
Commercial paper 3,052 2,312
Total short-term debt 3,052 2,312
Long-term debt
Non-domestic medium-term notes 7,558 7,343
Covered bonds 5,490 5,263
Domestic medium-term notes 3,426 2,928
Total long-term debt 16,474 15,534
Total debt issues 19,526 17,846
Debt issues have been recognised under both the historical cost convention and by applying fair value accounting to certain products. Refer to
Note 10 for further details.
Note 9 Related entities
Controlled entities of the NZ Banking Group are set out in Note 22 to the financial statements included in the Disclosure Statement for the year ended 30
September 2019.
The NZ Banking Group entered into loan agreements with several entities within the Overseas Banking Group which amounted to $4,304 million as
at 31 March 2020 (30 September 2019: $1,351 million).
On 26 March 2020, $315 million of dividends were declared and paid by the following entity:
Westpac New Zealand Group Limited declared and paid a dividend of $315 million to Westpac Overseas Holdings No. 2 Pty Limited.
On 20 March 2020, $31 million of dividends were declared and paid by the following entities:
Westpac Group Investment-NZ-Limited declared and paid a dividend of $2 million pro-rata to the shareholders, Westpac Overseas Holdings Pty
Limited and Westpac Custodian Nominees Pty Limited;
BT Financial Group (NZ) Limited declared and paid a dividend of $23 million to Westpac Equity Holdings Pty Limited; and
Westpac Financial Services Group-NZ- Limited declared and paid a dividend of $6 million to Westpac Equity Holdings Pty Limited.

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

Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group 21
Note 10 Fair values of financial assets and financial liabilities (continued)
Level 2 instruments
The fair value for financial instruments that are not actively traded is determined using valuation techniques which maximise the use of observable
market prices. Valuation techniques include:
 the use of market standard discounting methodologies;
 option pricing models; and
 other valuation techniques widely used and accepted by market participants.
InstrumentBalance sheet categoryIncludes:Valuation technique
Interest rate
products
Derivative financial instruments
Due from related entities
Due to related entities
Interest rate swaps,
forwards and options
– derivative financial
instruments
Industry standard valuation models are used to calculate the
expected future value of payments by product, which is
discounted back to a present value. The model’s interest rate
inputs are benchmark interest rates and active broker quoted
interest rates in the swap, bond and futures markets. Interest rate
volatilities are sourced from brokers and consensus data
providers. If consensus prices are not available, these are
classified as Level 3 instruments.
Foreign exchange
products
Derivative financial instruments
Due from related entities
Due to related entities
FX swaps and FX
forward contracts –
derivative financial
instruments
Derived from market observable inputs or consensus pricing
providers using industry standard models.
Asset backed
debt instruments
Trading securities and financial
assets measured at FVIS
Investment securities
Asset backed securities
Valued using an industry approach to value floating rate debt with
prepayment features. The main inputs to the model are the
trading margin and the weighted average life of the security.
These inputs are sourced from a consensus data provider. If
consensus prices are not available, these are classified as Level 3
instruments.
Non-asset backed
debt instruments
Trading securities and financial
assets measured at FVIS
Investment securities
Other financial liabilities
Local authority and NZ
public securities, other
bank issued certificates of
deposit, commercial
paper, other government
securities, off-shore
securities and corporate
bonds
Repurchase agreements
and reverse repurchase
agreements over non-
asset backed debt
securities
Valued using observable market prices which are sourced from
independent pricing services, broker quotes or inter-dealer prices.
Deposits and
other borrowings
at fair value
Deposits and other borrowingsCertificates of deposit
Discounted cash flow using market rates offered for deposits of
similar remaining maturities.
Debt issues at fair
value
Debt issuesCommercial paper
Discounted cash flows, using a discount rate which reflects the
terms of the instrument and the timing of cash flows adjusted for
market observable changes in the applicable credit rating of the NZ
Banking Group.
Life insurance
assets
Life insurance assets
Local authority securities,
investment grade
corporate bonds, life
insurance contract
liabilities and units in
unlisted unit trusts
Valued using observable market prices or other widely used and
accepted valuation techniques utilising observable market
inputs.

Notes to the financial statements
22 Westpac Banking Corporation - New Zealand Banking Group
Note 10 Fair values of financial assets and financial liabilities (continued)
Level 3 instruments
Financial instruments valued where at least one input that could have a significant effect on the instrument’s valuation is not based on observable
market data due to illiquidity or complexity of the product. These inputs are generally derived and extrapolated from other relevant market data and
calibrated against current market trends and historical transactions.
These valuations are calculated using a high degree of management judgement.
InstrumentBalance sheet categoryIncludes:Valuation technique
Interest rate
derivatives
Derivative financial
instruments
Non-vanilla interest
rate (inflation
indexed) derivatives
and long-dated NZD
caps
Valued using industry standard valuation models utilising
observable market inputs which are determined separately
for each parameter. Where unobservable, inputs will be set
with reference to an observable proxy.
The table below summarises the attribution of financial instruments measured at fair value to the fair value hierarchy:
NZ BANKING GROUP
31 Mar 2030 Sep 19
UnauditedAudited
$ millions
Level 1Level 2Level 3
1
TotalLevel 1Level 2Level 3
1
Total
Financial assets measured at fair value on a recurring basis
Trading securities and financial assets measured at FVIS 193 6,394 - 6,587 29 4,842 - 4,871
Derivative financial instruments 2 8,803 1 8,806 - 6,256 1 6,257
Investment securities 1,102 2,676 - 3,778 1,049 3,420 - 4,469
Life insurance assets - 350 - 350 - 335 - 335
Due from related entities 5 1,942 - 1,947 - 985 - 985
Total financial assets measured at fair value 1,302 20,165 1 21,468 1,078 15,838 1 16,917
Financial liabilities measured at fair value on a recurring basis
Deposits and other borrowings at fair value - 3,543 - 3,543 - 1,142 - 1,142
Other financial liabilities 122 345 - 467 180 27 - 207
Derivative financial instruments 1 7,659 17 7,677 - 5,807 18 5,825
Due to related entities 3 2,150 - 2,153 - 1,334 - 1,334
Debt issues at fair value - 3,052 - 3,052 - 2,312 - 2,312
Total financial liabilities measured at fair value 126 16,749 17 16,892 180 10,622 18 10,820
1
Balances within this category of the fair value hierarchy are not considered material to the total derivative financial instruments balances.
There were no material changes in fair values estimated using a valuation technique incorporating significant non-observable inputs that were
recognised in the income statement or the statement of comprehensive income of the NZ Banking Group during the six months ended 31 March 2020
(30 September 2019: no material changes in fair value).
Analysis of movements between fair value hierarchy levels
During the period, there were no material transfers between levels of the fair value hierarchy (30 September 2019: no material transfers between
levels).

Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group 23
Note 10 Fair values of financial assets and financial liabilities (continued)
Financial instruments not measured at fair value
The following table summarises the estimated fair value of the NZ Banking Group’s financial instruments not measured at fair value:
NZ BANKING GROUP
31 Mar 2030 Sep 19
UnauditedAudited
CarryingCarrying
$ millions
AmountFair ValueAmountFair Value
Financial assets not measured at fair value
Cash and balances with central banks 5,210 5,210 2,002 2,002
Collateral paid 363 363 417 417
Loans 87,425 87,748 84,626 84,880
Other financial assets 394 394 400 400
Due from related entities 4,316 4,316 1,382 1,382
Total financial assets not measured at fair value 97,708 98,031 88,827 89,081
Financial liabilities not measured at fair value
Collateral received 1,331 1,331 623 623
Deposits and other borrowings 69,051 69,121 64,464 64,537
Other financial liabilities 2,607 2,607 1,541 1,541
Due to related entities 1,478 1,481 1,558 1,565
Debt issues
1
16,474 16,229 15,534 15,701
Loan capital
1
3,356 2,848 3,185 3,112
Total financial liabilities not measured at fair value 94,297 93,617 86,905 87,079
1
The estimated fair value of debt issues and loan capital includes the impact of changes in the NZ Banking Group's credit spreads since origination.
A detailed description of how fair value is derived for financial instruments not measured at fair value is disclosed in Note 24 of the financial statements
included in the Disclosure Statement for the year ended 30 September 2019.5967-2 04-18

Notes to the financial statements
24 Westpac Banking Corporation - New Zealand Banking Group
Note 11 Credit related commitments, contingent assets and contingent liabilities
NZ BANKING GROUP
31 Mar 2030 Sep 19
$ millions
UnauditedAudited
Letters of credit and guarantees 931 964
Commitments to extend credit 26,601 25,881
Total undrawn credit commitments 27,532 26,845
Contingent assets
The credit commitments shown in the table above also constitute contingent assets. These commitments would be classified as loans on the balance
sheet on the contingent event occurring.
Contingent liabilities
The NZ Banking Group has contingent liabilities in respect of actual and potential claims and proceedings. An assessment of the NZ Banking Group’s
likely loss in respect of these matters has been made on a case-by-case basis and provision has been made in these financial statements where
appropriate.
Compliance, regulation and remediation
The NZ Banking Group is subject to continued regulatory action and internal reviews relating to matters pertaining to the provision of services to our
customers. Contingent liabilities may exist in respect of actual or potential claims, compensation payments and/or refunds identified as part of
these reviews. An assessment of the NZ Banking Group’s likely loss has been made on a case-by-case basis for the purpose of the financial
statements but cannot always be reliably estimated.
Note 12 Segment reporting
The NZ Banking Group operates predominantly in the consumer banking and wealth, commercial, corporate and institutional banking, and
investments and insurance sectors within New Zealand. On this basis, no geographical segment reporting is provided.
The operating segment results have been presented on a management reporting basis and consequently internal charges and transfer pricing
adjustments have been reflected in the performance of each operating segment. Intersegment pricing is determined on a cost recovery basis.
The NZ Banking Group does not rely on any single major customer for its revenue base.
Segment comparative information for the six months ended 31 March 2019 has been restated to ensure consistent presentation with the current
reporting period. This includes adjustments for changes in the segmentation classification for small business customers and changes to expense
allocations and the Overseas Bank’s capital allocation framework.
The NZ Banking Group’s operating segments are defined by the customers they serve and the services they provide. The NZ Banking Group has
identified the following main operating segments:
–Consumer Banking and Wealth provides financial services predominantly for individuals;
–Commercial, Corporate and Institutional Banking provides a broad range of financial services for commercial, corporate, property finance,
agricultural, institutional and government customers, and the supply of derivatives and risk management products to the entire Westpac
customer base in New Zealand; and
–Investments and Insurance provides funds management and insurance services.
Reconciling items primarily represent:
–business units that do not meet the definition of operating segments under NZ IFRS 8 Operating Segments;
–elimination entries on consolidation/aggregation of the results, assets and liabilities of the NZ Banking Group’s controlled entities in the
preparation of the aggregated financial statements of the NZ Banking Group; and
–results of certain business units excluded for management reporting purposes, but included within the aggregated financial statements of the NZ
Banking Group for statutory financial reporting purposes.

Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group 25
Note 12 Segment reporting (continued)
NZ BANKING GROUP
ConsumerCommercial,Investments
Banking andCorporate andandReconciling
$ millionsWealth InstitutionalInsuranceItemsTotal
Six months ended 31 March 2020 (Unaudited)
Net interest income506474-(2)
978
Non-interest income65
815552253
Net operating income before operating expenses and
impairment charges
57155555501,231
Operating expenses(394)(139)(18)-
(551)
Impairment (charges)/benefits(101)(109)--
(210)
Profit before income tax763073750470
Six months ended 31 March 2019 (Unaudited) (restated)
Net interest income528466-17
1,011
Non-interest income
821106311266
Net operating income before operating expenses and
impairment charges
61057663281,277
Operating expenses(351)(127)(13)(3)
(494)
Impairment (charges)/benefits(20)5-1
(14)
Profit before income tax2394545026769
As at 31 March 2020 (Unaudited)
Total gross loans47,31540,436-18087,931
Total deposits and other borrowings36,45332,598-3,54372,594
As at 30 September 2019 (Audited) (restated)
Total gross loans45,73039,079-13884,947
Total deposits and other borrowings35,12529,340-1,14165,606
Note 13 Subsequent events
On 2 April 2020, a decision was made by the Reserve Bank of New Zealand (‘Reserve Bank’) to freeze the distribution of dividends on ordinary
shares by all locally incorporated banks in New Zealand (including Westpac New Zealand) during the period of economic uncertainty caused by
COVID-19.

Registered bank disclosures
Unaudited
Unaudited
26 Westpac Banking Corporation - New Zealand Banking Group
This section contains the additional disclosures required by the Registered Bank Disclosure Statements (Overseas Incorporated Registered Banks)
Order 2014 (as amended).
i. General information
Limits on material financial support by the Overseas Bank
On 19 November 2015, the Australian Prudential Regulation Authority (‘APRA’) informed the Overseas Bank that its Extended Licensed Entity
(‘ELE’) non-equity exposures to New Zealand banking subsidiaries is to transition to be below a limit of 5% of the Overseas Bank’s Level 1 Tier 1
capital, as part of an initiative to reduce Australian bank non-equity exposure to their respective New Zealand banking subsidiaries and branches.
The ELE consists of the Overseas Bank and its subsidiary entities that have been approved by APRA to be included in the ELE for the purposes of
measuring capital adequacy.
APRA has allowed a period of five years commencing on 1 January 2016 to transition to be less than the 5% limit. Exposures for the purposes of
this limit include all committed, non-intraday, non-equity exposures including derivatives and off-balance sheet exposures. For the purposes of
assessing this exposure, the 5% limit excludes equity investments and holdings of capital instruments in New Zealand banking subsidiaries.
While the limit and associated conditions do not apply to the ELE’s non-equity exposures to the NZ Branch (which is within the ELE), the limit and
associated conditions do apply to the NZ Branch’s non-equity exposures to the rest of the NZ Banking Group other than Westpac New Zealand
Group Limited. As at 31 March 2020, the ELE’s non-equity exposures to New Zealand banking subsidiaries affected by the limit were below 5% of
Level 1 Tier 1 capital of the Overseas Bank.
APRA has also confirmed the terms on which the Overseas Bank ‘may provide contingent funding support to a New Zealand banking subsidiary
during times of financial stress’. APRA has confirmed that, at this time, only covered bonds meet its criteria for contingent funding arrangements.
Guarantee arrangements
No material obligations of the Overseas Bank that relate to the NZ Branch are guaranteed as at the date the Directors and the Chief Executive
Officer, NZ Branch signed this Disclosure Statement.
Directors
The Directors of the Overseas Bank at the time this Disclosure Statement was signed were:
John McFarlane, MBA, MA – Chairman
Peter King, BEc, FCA –Managing Director & Chief Executive Officer
Nerida Caesar, BCom, MBA, GAICD
Alison Deans, BA, MBA, GAICD
Craig Dunn, BCom, FCA
Steven Harker BEc (Hons.), LLB
Peter Marriott, BEc (Hons.), FCA
Peter Nash, BCom, FCA, F Fin
Margaret Seale, BA, FAICD
Changes to Directorate
On 2 December 2019, Brian Hartzer stepped down as Managing Director and Chief Executive Officer (CEO) of the Overseas Bank with Chief Financial
Officer (CFO), Peter King, taking over as acting CEO and Chief Operating Officer, Gary Thursby, appointed as acting CFO.
On 12 December 2019, Director of the Overseas Bank, Ewen Crouch, did not seek re-election at the Overseas Bank’s Annual General Meeting.
On 23 January 2020, the Overseas Bank 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 a Non-Executive Director on 17 February 2020.
On 5 March 2020, the Overseas Bank confirmed Mr. Maxsted would retire from the board effective 31 March 2020. Following Mr. Maxsted’s retirement,
Mr. McFarlane became Chairman of the Overseas Bank’s Board and the Board Nominations Committee effective 1 April 2020. The Overseas Bank also
announced on 5 March 2020 that Yuen Mei Anita Fung would retire from the Westpac Board as a Non-Executive Director effective 31 March 2020.
On 2 April 2020, the Overseas Bank’s Chairman, John McFarlane, announced the appointment of Peter King as CEO with immediate effect.
Chief Executive Officer, NZ Branch
Simon James Power QSO, BA, LLB, AMP (Harvard), CMInstD, INFINZ (Fellow)

Registered bank disclosures
Unaudited
Unaudited
Westpac Banking Corporation - New Zealand Banking Group 27
i. General information (continued)
Responsible person
All the Directors named above have authorised in writing David Alexander McLean, Chief Executive, Westpac New Zealand to sign this Disclosure
Statement on the Directors’ behalf in accordance with section 82 of the Reserve Bank Act.
Auditor
PricewaterhouseCoopers
PricewaterhouseCoopers Tower
188 Quay Street
Auckland, New Zealand
Credit ratings
The Overseas Bank has the following credit ratings with respect to its long-term senior unsecured obligations, including obligations payable in New
Zealand in New Zealand dollars, as at the date the Directors and the Chief Executive Officer, NZ Branch signed this Disclosure Statement:
Rating AgencyCurrent Credit RatingRating Outlook
Fitch Ratings
Moody’s Investors Service
S&P Global Ratings
A+
Aa3
AA-
Negative
Stable
Negative
On 7th April 2020, following an assessment of the economic impact of the COVID-19 pandemic on the Australian and New Zealand economies, Fitch
Ratings (Fitch) have downgraded their long-term ratings for the major Australian banks (including the Overseas Bank) by one notch, to A+ (from
AA-). Fitch has maintained the rating outlook for the major Australian banks as “negative”, reflecting the major downside risk to Fitch’s economic
outlook in light of the evolving global situation.
On 8th April 2020, S&P Global Ratings affirmed Australia’s AAA/A-1+ ratings but revised the outlook on these ratings to “negative”. As a result of the
change in Australia’s sovereign rating outlook, S&P Global Ratings affirmed the Overseas Bank’s current issuer credit rating of AA- long term and A-
1+ short term but the outlook has been revised to “negative”.
Other material matters
Financial Services Conduct and Culture Review
Following the developments and findings of the Financial Services Conduct and Culture Review and the Australian Royal Commission, the Financial
Markets (Conduct of Institutions) Amendment Bill was introduced to Parliament on 11 December 2019. The Bill introduces a conduct licensing regime
for banks, insurers and non-bank deposit takers and their intermediaries in respect of their conduct in relation to retail customers. The regime will
require licensed institutions to comply with a fair conduct principle to treat consumers fairly, and establish, implement and maintain an effective fair
conduct programme. It will also require institutions to comply with regulations that regulate incentives (including a prohibition on volume and value
sales targets). The Bill is currently before the Select Committee.
In addition to those matters identified above, the NZ Banking Group remains subject to continued regulatory engagement in the nature of ongoing
investigations and reviews which may result in further regulatory change or requirements for customer remediation. The NZ Banking Group
continues to identify and remediate conduct issues and risks as they arise.
Reserve Bank Capital Review
On 5 December 2019, the Reserve Bank announced changes to the capital adequacy framework in New Zealand. The new framework includes the
following key components:
Setting a Tier 1 capital requirement of 16% of risk-weighted assets (‘RWA’) for systemically important banks (including Westpac New Zealand)
and 14% for all other banks;
Additional Tier 1 capital (‘AT1’) can comprise no more than 2.5% of the 16% Tier 1 capital requirement;
Eligible Tier 1 capital will comprise common equity and redeemable perpetual preference shares. Existing AT1 instruments will be phased out
over a seven year period;
Maintaining the existing Tier 2 capital requirement of 2% of RWA; and
Recalibrating RWA for internal rating based banks, such as Westpac New Zealand, such that aggregate RWA will increase to 90% of
standardised RWA.

Registered bank disclosures
Unaudited
Unaudited
28 Westpac Banking Corporation - New Zealand Banking Group
i. General information (continued)
Westpac New Zealand is already strongly capitalised with a Tier 1 capital ratio of 14.1% at 31 March 2020 based on the current Reserve Bank rules. On
a pro forma basis, (including the new RWA and capital requirements) at 31 March 2020 and assuming a Tier 1 capital ratio of 16-17%, Westpac New
Zealand would require a further NZ$2.1-$2.7 billion of Tier 1 capital to meet the new requirements that are fully effective in 2028.
In response to the impacts of COVID-19, and to support credit availability, the Reserve Bank has delayed the start date of the new capital regime by
12 months to 1 July 2021 and the Reserve Bank will consider further delays in 2021 if it considers that market conditions warrant it. Banks will be given
up to seven years to comply.
AUSTRAC proceedings issued against the Overseas Bank
On 20 November 2019 the Overseas Bank received a statement of claim from AUSTRAC (the Australian money-laundering regulator) commencing
civil proceedings in relation to alleged contraventions of the Overseas Bank’s obligations under Australia’s Anti-Money Laundering and Counter-
Terrorism Financing Act 2006 (Cth). The proceedings relate to the alleged failure to report a large number of international fund 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 the Overseas Bank’s ongoing customer due diligence obligations. The matter
is now before the Federal Court of Australia.
APRA and the Australian Securities and Investments Commission (‘ASIC’) have also separately commenced investigations into matters related to the
AUSTRAC allegations, including possible breaches of the Banking Act 1959 (Cth) and APRA prudential standards by the Overseas Bank.
The Overseas Bank has also been served with a shareholder class action in Australia relating to market disclosure issues connected to the Overseas
Bank’s monitoring of financial crime over the relevant period and matters which are the subject of the recent AUSTRAC proceedings. The claim is
brought on behalf of certain shareholders who acquired an interest in the Overseas Bank’s securities between 16 December 2013 and 19 November
2019.
On 31 January 2020, a US class action was filed against the Overseas Bank and its current and former CEO by Rosen Law Firm on behalf of
purchasers of the Overseas Bank’s securities between 11 November 2015 and 19 November 2019.
The two 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
applicants in those proceedings will be significant. The Overseas Bank is defending these class actions.
Business Finance Guarantee Scheme
On 13 April 2020 Westpac New Zealand entered into a deed of indemnity with the New Zealand Government to implement the New Zealand
Government’s business finance guarantee scheme (‘Scheme’). The terms of the Scheme are as follows:
The Scheme permits banks to lend up to $500,000 to qualifying borrowers for a maximum of three years. Various conditions apply including a
requirement for transparent interest rates and application of credit underwriting standards as modified to allow Westpac New Zealand to give
effect to the Scheme.
Subject to compliance with the terms of the deed of indemnity, the New Zealand Government will pay 80% of any loss incurred by Westpac
New Zealand on a loan it makes under the Scheme, after Westpac New Zealand has exhausted its recoveries procedures, with the other 20%
carried by Westpac New Zealand.
Freeze on NZ Bank Dividends
On 2 April 2020, a decision was made by the Reserve Bank to freeze the distribution of dividends on ordinary shares by all locally incorporated banks
in New Zealand (including Westpac New Zealand) during the period of economic uncertainty caused by COVID-19.
Reserve Bank steps to support liquidity and customer lending
On 16 March 2020 the Reserve Bank announced that it would provide term funding through a Term Auction Facility (‘TAF’) to give banks (including
Westpac New Zealand) the ability to access term funding, with collateralised loans out to a term of twelve months, in order to alleviate pressures in
funding markets as a result of COVID-19. From 26 May 2020, for a period of six months, the Reserve Bank will make available a Term Lending Facility
(‘TLF’), to offer loans for a fixed term of three years at the rate of the Official Cash Rate, with access to the funds linked to banks’ lending under the
Scheme. On 2 April 2020, the Reserve Bank reduced the core funding ratio for banks (including Westpac New Zealand) from 75% to 50%.
Disclosure statements of the NZ Banking Group and the financial statements of the Overseas Bank and the Overseas
Banking Group
Disclosure Statements of the NZ Banking Group for the last five years are available, free of charge, at the internet address www.westpac.co.nz. A
printed copy will also be made available, free of charge, upon request and will be dispatched by the end of the second working day after the day on
which the request is made.
The most recently published financial statements of the Overseas Bank and the Overseas Banking Group are for the year ended 30 September 2019
and for the six months ended 31 March 2020, respectively, and can be accessed at the internet address www.westpac.com.au.

Registered bank disclosures
Unaudited
Unaudited
Westpac Banking Corporation - New Zealand Banking Group 29
ii. Additional financial disclosures
Additional information on balance sheet
NZ BANKING GROUP
31 Mar 2030 Sep 19
$ millions
Unaudited Audited
Interest earning and discount bearing assets 107,642 97,740
Interest and discount bearing liabilities 90,978 83,028
Total amounts due from related entities 6,263 2,367
Total amounts due to related entities 4,698 4,013
Total liabilities of the NZ Branch, net of amounts due to related entities 12,367 9,098
Total retail deposits of the NZ Branch - -
Financial assets pledged as collateral
The NZ Banking Group is required to provide collateral to other financial institutions, as part of standard terms, to secure liabilities. In addition to
assets supporting the CB Programme disclosed in Note 5, the carrying value of these financial assets pledged as collateral is:
NZ BANKING GROUP
31 Mar 2030 Sep 19
$ millions
UnauditedAudited
Cash 363 417
Securities pledged under repurchase agreements:
Trading securities and financial assets measured at FVIS
126 19
Residential mortgage-backed securities
1
238 -
Total amount pledged to secure liabilities (excluding CB Programme) 727 436
1
During the six months ended 31 March 2020, the NZ Banking Group has undertaken repurchase agreements with the Reserve Bank using residential mortgage backed
securities. The repurchase cash amount at 31 March 2020 is $200 million with underlying securities to the value of $238 million provided under the arrangement.

Registered bank disclosures
Unaudited
Unaudited
30 Westpac Banking Corporation - New Zealand Banking Group
ii. Additional financial disclosures (continued)
Additional information on concentrations of credit risk
NZ BANKING GROUP
$ millions31 Mar 20
On-balance sheet credit exposures consists of
Cash and balances with central banks 5,210
Collateral paid 363
Trading securities and financial assets measured at FVIS 6,587
Derivative financial instruments 8,806
Investment securities 3,778
Loans 87,425
Other financial assets 394
Due from related entities 6,263
Total on-balance sheet credit exposures 118,826
Analysis of on-balance sheet credit exposures by industry sector
Accommodation, cafes and restaurants 508
Agriculture 8,970
Construction 584
Finance and insurance 15,383
Forestry and fishing 437
Government, administration and defence 11,303
Manufacturing 2,390
Mining 290
Property 8,101
Property services and business services 1,391
Services 2,234
Trade 2,457
Transport and storage 1,465
Utilities 2,315
Retail lending 55,162
Other 8
Subtotal 112,998
Provisions for ECL (506)
Due from related entities 6,263
Other financial assets 71
Total on-balance sheet credit exposures 118,826
Off-balance sheet credit exposures consists of
Credit risk-related instruments 27,532
Total off-balance sheet credit exposures 27,532
Analysis of off-balance sheet credit exposures by industry sector
Accommodation, cafes and restaurants 149
Agriculture 804
Construction 504
Finance and insurance 1,693
Forestry and fishing 346
Government, administration and defence 872
Manufacturing 1,740
Mining 56
Property 1,972
Property services and business services 705
Services 665
Trade 1,782
Transport and storage 947
Utilities 1,603
Retail lending 13,694
Total off-balance sheet credit exposures 27,532
Australia and New Zealand Standard Industrial Classification (‘ANZSIC’) has been used as the basis for disclosing industry sectors.

Registered bank disclosures
Unaudited
Unaudited
Westpac Banking Corporation - New Zealand Banking Group 31
ii. Additional financial disclosures (continued)
Additional information on concentrations of funding
NZ BANKING GROUP
$ millions31 Mar 20
Funding consists of
Collateral received 1,331
Deposits and other borrowings 72,594
Other financial liabilities
1
2,625
Due to related entities
2
1,466
Debt issues
3
19,526
Loan capital 3,356
Total funding 100,898
Analysis of funding by geographical area
3
New Zealand 72,820
Australia 3,866
United Kingdom 9,202
United States of America 6,565
Other 8,445
Total funding 100,898
Analysis of funding by industry sector
Accommodation, cafes and restaurants 522
Agriculture 1,550
Construction 2,147
Finance and insurance 44,025
Forestry and fishing 217
Government, administration and defence 2,553
Manufacturing 2,226
Mining 70
Property services and business services 5,976
Services 4,393
Trade 1,771
Transport and storage 668
Utilities 697
Households 28,275
Other
4
4,342
Subtotal 99,432
Due to related entities
2
1,466
Total funding 100,898
1
Other financial liabilities, as presented above, are in respect of securities sold under agreements to repurchase, securities sold short and interbank placements.
2
Amounts due to related entities, as presented above, are in respect of deposits and borrowings and exclude amounts which relate to derivative financial
instruments and other liabilities.
3
The geographic region used for debt issues is based on the nature of the debt programmes. The nature of the debt programmes is used as a proxy for the location
of the original purchaser. Where the nature of the debt programmes does not necessarily represent an appropriate proxy, the debt issues are classified as 'Other’.
These instruments may have subsequently been on-sold.
4
Includes deposits from non-residents.
ANZSIC has been used as the basis for disclosing industry sectors.

Registered bank disclosures
Unaudited
Unaudited
32 Westpac Banking Corporation - New Zealand Banking Group
ii. Additional financial disclosures (continued)
Additional information on interest rate sensitivity
The following table presents a breakdown of the earlier of the contractual repricing or maturity dates of the NZ Banking Group’s net asset position as at
31 March 2020. The NZ Banking Group uses this contractual repricing information as a base, which is then altered to take account of customer behaviour,
to manage its interest rate risk.
NZ BANKING GROUP
31 Mar 20
Non-
Overinterest
$ millions
Up to 3
Months
Over 3
Months and
Up to 6
Months
Over 6
Months and
Up to 1 Year
Over 1 Year
and Up to 2
Years
2 YearsBearingTotal
Financial assets
Cash and balances with central banks4,746----4645,210
Collateral paid363-----363
Trading securities and financial assets
measured at FVIS4,94169433167554-6,587
Derivative financial instruments-----8,8068,806
Investment securities1,180331806891,696-3,778
Loans45,5496,84714,75415,8364,797(358)87,425
Other financial assets80----314394
Life insurance assets-----350350
Due from related entities4,304--1-1,9586,263
Total financial assets61,1637,57415,26516,5937,04711,534119,176
Non-financial assets1,349
Total assets120,525
Financial liabilities
Collateral received1,331-----1,331
Deposits and other borrowings45,62310,2455,0651,2776069,77872,594
Other financial liabilities2,326200---5483,074
Derivative financial instruments-----7,6777,677
Due to related entities 1,423----2,2083,631
Debt issues7,7211,9055152,0617,324-19,526
Loan capital1,067---2,289-3,356
Total financial liabilities59,49112,3505,5803,33810,21920,211111,189
Non-financial liabilities645
Total liabilities111,834
On-balance sheet interest rate repricing
gap
1,672(4,776)9,68513,255(3,172)
Net derivative notional principals
Net interest rate contracts (notional):
Receivable/(payable)12,600(4,675)(13,955)(819)6,849
Net interest rate repricing gap14,272(9,451)(4,270)12,4363,677

Registered bank disclosures
Unaudited
Unaudited
Westpac Banking Corporation - New Zealand Banking Group 33
ii. Additional financial disclosures (continued)
Additional information on liquidity risk
Contractual maturity of financial liabilities
The table below presents cash flows associated with financial liabilities, payable at the balance sheet date, by remaining contractual maturity. The
amounts disclosed in the table are the future contractual undiscounted cash flows, whereas the NZ Banking Group manages inherent liquidity risk based
on expected cash flows.
Cash flows associated with these financial liabilities include both principal payments, as well as fixed or variable interest payments incorporated into the
relevant coupon period. Principal payments reflect the earliest contractual maturity date. Derivative financial instruments designated for hedging
purposes are expected to be held for their remaining contractual lives, and reflect gross cash flows over the remaining contractual term.
Derivatives held for trading and certain liabilities classified in “Other financial liabilities” which are measured at FVIS are not managed for liquidity
purposes on the basis of their contractual maturity, and accordingly these liabilities are presented in either the on demand or up to 1 month columns.
Only the liabilities that the NZ Banking Group manages based on their contractual maturity are presented on a contractual undiscounted basis in the
table below.
NZ BANKING GROUP
31 Mar 20
OnUp to
$ millionsDemand1 Month
Over 1
Month and
Up to 3
Months
Over 3
Months and
Up to 1 Year
Over 1 Year
and Up to 5
Years
Over 5
Years
Total
Financial liabilities
Collateral received-1,331----1,331
Deposits and other borrowings32,9889,42813,08915,5961,975-73,076
Other financial liabilities2,28718971250--2,797
Derivative financial instruments:
Held for trading7,098-----7,098
Held for hedging purposes (net settled)-30752122252544
Held for hedging purposes (gross settled):
Cash outflow-4-560--564
Cash inflow---(525)--(525)
Due to related entities:
Non-derivative balances1,184-2297--1,483
Derivative financial instruments:
Held for trading 2,123-----2,123
Held for hedging purposes (gross settled):
Cash outflow--2327--329
Cash inflow--(2)(297)--(299)
Debt issues-4031,2705,17812,81540620,072
Loan capital--9261363,1773,348
Total undiscounted financial liabilities45,68011,38514,51621,62415,1513,585111,941
Total contingent liabilities and commitments
Letters of credit and guarantees931-----931
Commitments to extend credit26,601-----26,601
Total undiscounted contingent liabilities and
commitments
27,532-----27,532

Registered bank disclosures
Unaudited
Unaudited
34 Westpac Banking Corporation - New Zealand Banking Group
ii. Additional financial disclosures (continued)
Liquid assets
The table below shows the NZ Banking Group’s holding of liquid assets and represents the key liquidity information provided to management.
Liquid assets include high quality assets readily convertible to cash to meet the NZ Banking Group’s liquidity requirements. In management’s
opinion, liquidity is sufficient to meet the NZ Banking Group’s present requirements.
NZ BANKING GROUP
$ millions31 Mar 20
Cash and balances with central banks 5,210
Interbank lending 104
Supranational securities 1,198
NZ Government securities 3,758
NZ public securities 2,526
NZ corporate securities 2,123
Residential mortgage-backed securities 7,531
Total liquid assets 22,450
Overseas Banking Group profitability and size
Information on the Overseas Banking Group is from the most recently published financial statements of the Overseas Banking Group for the six
months ended 31 March 2020.
Profitability31 Mar 20
Net profit after tax for the six months ended 31 March 2020 (A$ millions)
1
1,191
Net profit after tax for the 12 month period to 31 March 2020 as a percentage of average total assets 0.5%
Total assets and equity31 Mar 20
Total assets (A$ millions)967,662
Percentage change in total assets over the 12 months ended 31 March 2020
8.6%
Total equity (A$ millions)67,646
1
Net profit after tax represents the amount before deductions for net profit attributable to non-controlling interests.
Reconciliation of mortgage-related amounts
The table below provides the NZ Banking Group’s reconciliation between any amounts disclosed in this Disclosure Statement that relate to
mortgages on residential property.
NZ BANKING GROUP
$ millions31 Mar 20
Residential mortgages - total gross loans (as disclosed in Note 5) 53,411
Reconciling items:
Unamortised deferred fees and expenses (193)
Fair value hedge adjustments (180)
Value of undrawn commitments and other off-balance sheet amounts relating to residential mortgages 10,550
Undrawn at default
1
(2,681)
Residential mortgages by LVR (as disclosed in Additional mortgage information in Section iv.)
60,907
1
Estimate of the amount of committed exposure not expected to be drawn by the customer at the time of default.

Registered bank disclosures
Unaudited
Unaudited
Westpac Banking Corporation - New Zealand Banking Group 35
iii. Asset quality
Past due assets
NZ BANKING
GROUP
$ millions31 Mar 20
Past due but not individually impaired assets
Less than 30 days past due1,458
At least 30 days but less than 60 days past due212
At least 60 days but less than 90 days past due107
At least 90 days past due195
Total past due but not individually impaired assets1,972
Movements in components of loss allowance and impacts of changes in gross financial assets on loss allowances
Refer to Note 6 for the movements in components of loss allowance and impacts of changes in gross financial assets on loss allowances.
Other asset quality information
NZ BANKING
GROUP
Undrawn commitments with individually impaired counterparties 7
Other assets under administration
-
Overseas Banking Group asset quality
Information on the Overseas Banking Group is from the most recently published financial statements of the Overseas Banking Group for the six months
ended 31 March 2020.
31 Mar 20
Total individually impaired assets
1, 2
(A$ millions)2,154
Total individually impaired assets expressed as a percentage of total assets 0.2%
Total individually assessed provision for ECL
3
(A$ millions)1,079
Total individually assessed provision for ECL expressed as a percentage of total individually impaired assets50.1%
Total collectively assessed provision for ECL
3
(A$ millions)
5,182
1
Total individually impaired assets are before provision for ECL and net of interest held in suspense. Total individually impaired assets includes A$1,304 million of assets
which are determined to be impaired, but which are not individually significant, and therefore have been grouped into pools of assets for the purpose of collectively
calculating an impairment provision.
2
Non-financial assets have not been acquired through the enforcement of security.
3
Total individual provision for ECL and total collective provision for ECL both include A$473 million of provision for ECL that has been calculated collectively on groups
of assets which have been determined to be impaired, but which are not individually significant.

Registered bank disclosures
Unaudited
Unaudited
36 Westpac Banking Corporation - New Zealand Banking Group
iv. Credit and market risk exposures and capital adequacy
Additional mortgage information
Residential mortgages by loan-to-value ratio (‘LVR’) as at 31 March 2020
LVRs are calculated as the current exposure divided by the NZ Banking Group’s valuation of the residential security at origination.
The NZ Banking Group utilises data from its loan system to obtain origination valuations. For loans originated prior to 1 January 2008, or those
originated outside of the loan system, the origination valuation is not recorded in the system and is therefore, due to system limitations, not available
for disclosure. For these loans, the NZ Banking Group utilises the earliest valuation recorded as the closest available alternative to estimate an
origination valuation.
Exposures for which no LVR is available have been included in the ‘Exceeds 90%’ category in accordance with the requirements of the Order.
NZ BANKING GROUP
31 Mar 20
LVR range ($ millions)
Does not
exceed 60%
Exceeds 60%
and not 70%
Exceeds 70%
and not 80%
Exceeds 80%
and not 90%Exceeds 90%
Total
On-balance sheet exposures 22,820 12,769 13,474 2,752 1,223 53,038
Undrawn commitments and other off-balance
sheet exposures 5,604 1,180 776 101 208 7,869
Value of exposures 28,424 13,949 14,250 2,853 1,431 60,907
Market risk
Market risk notional capital charges
The NZ Banking Group’s aggregate market risk exposure is derived in accordance with the Reserve Bank document ‘Capital Adequacy Framework
(Standardised Approach) (BS2A)’(‘BS2A’) and is calculated on a six monthly basis. The end-of-period aggregate market risk exposure is calculated
from the period end balance sheet information.
For each category of market risk, the NZ Banking Group’s peak end-of-day aggregate capital charge is derived by determining the maximum over
the six months ended 31 March 2020 of the aggregate capital charge for that category of market risk at the close of each business day derived in
accordance with BS2A.
The following table provides a summary of the NZ Banking Group’s notional capital charges by risk type as at the reporting date and the peak end-
of-day notional capital charges by risk type for the six months ended 31 March 2020:
NZ BANKING GROUP
31 Mar 20
$ millions
Implied risk-weighted exposureNotional capital charge
End-of-period
Interest rate risk
5,399 432
Foreign currency risk
18 1
Equity risk
- -
Peak end-of-day
Interest rate risk
6,345 508
Foreign currency risk
38 3
Equity risk
- -

Registered bank disclosures
Unaudited
Unaudited
Westpac Banking Corporation - New Zealand Banking Group 37
iv. Credit and market risk exposures and capital adequacy (continued)
Overseas Bank and Overseas Banking Group capital adequacy
The table below represents the capital adequacy calculation for the Overseas Banking Group and Overseas Bank as at 31 March 2020 based on
APRA’s application of the Basel III capital adequacy framework.
%
31 Mar 2031 Mar 19
Overseas Banking Group (excluding entities specifically excluded by APRA regulations)
1, 2
Common Equity Tier 1 capital ratio 10.8 10.6
Additional Tier 1 capital ratio 2.1 2.2
Tier 1 capital ratio 12.9 12.8
Tier 2 capital ratio 3.4 1.8
Total regulatory capital ratio 16.3 14.6
Overseas Bank (Extended Licensed Entity)
1, 3
Common Equity Tier 1 capital ratio 11.1 10.7
Additional Tier 1 capital ratio 2.2 2.3
Tier 1 capital ratio 13.3 13.0
Tier 2 capital ratio 3.4 1.8
Total regulatory capital ratio 16.7 14.8
1

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

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

Overseas Bank (Extended Licensed Entity) comprises the Overseas Bank and its subsidiary entities that have been approved by APRA as being part of a single Extended
Licensed Entity for the purposes of measuring capital adequacy (Level 1).
Under APRA’s Prudential Standards, Australian authorised deposit taking institutions (‘ADI’), including the Overseas Banking Group and the Overseas
Bank are required to maintain minimum ratios of capital to risk weighted assets, as determined by APRA. For the calculation of risk weighted assets,
the Overseas Banking Group and the Overseas Bank are accredited by APRA to apply advanced models permitted by the Basel III global capital
adequacy regime. The Overseas Banking Group and the Overseas Bank use the Advanced Internal Ratings Based (‘Advanced IRB’) approach for credit
risk, the Advanced Measurement Approach (‘AMA’) for operational risk and the internal model approach for interest rate risk in the banking book for
calculating regulatory capital.
APRA’s prudential standards are generally consistent with the International Regulatory Framework for Banks, also known as Basel III, issued by the
Basel Committee on Banking Supervision (‘BCBS’), except where APRA has exercised certain discretions.
The Overseas Banking Group is required to disclose additional detailed information on its risk management practices and capital adequacy on a
quarterly basis. This information is made available to users via the Overseas Banking Group’s website (www.westpac.com.au).
The Overseas Banking Group (excluding entities specifically excluded by APRA regulations), and the Overseas Bank (Extended Licensed Entity as
defined by APRA), exceeded the minimum capital adequacy requirements as specified by APRA as at 31 March 2020.
v. Insurance business
The following table presents the aggregate amount of the NZ Banking Group’s insurance business conducted through one of its controlled entities,
Westpac Life-NZ- Limited, calculated in accordance with the Overseas Bank’s (the registered bank) conditions of registration as at the reporting
date.
NZ BANKING GROUP
$ millions31 Mar 20
Total assets of insurance business 224
As a percentage of total consolidated assets of the NZ Banking Group0.19%
vi. Risk management policies
During the period, the NZ Banking Group made changes to a number of policies within credit manuals to reflect the NZ Government’s COVID-19
relief schemes, including mortgage payment deferrals and the Business Finance Guarantee.

Conditions of registration
38 Westpac Banking Corporation - New Zealand Banking Group
Non-compliance with conditions of registration
On 19 March 2020, the Overseas Bank was not compliant with condition of registration 7, which requires that the liabilities of the NZ Branch, net of
amounts due to related parties, (NZ Liabilities) do not exceed $15bn. Due to significant exchange rate and interest rate fluctuations resulting
from the impact of the COVID-19 pandemic, liability under interest rate and cross currency swaps increased sharply, resulting in the NZ Liabilities
increasing to $16.025bn on 19 March 2020. The NZ Liabilities fell back below $15bn the following day. The Overseas Bank continues to closely
monitor its NZ Liabilities.
Westpac New Zealand conditions of registration
In February 2017 the Reserve Bank required Westpac New Zealand to obtain an independent review of its compliance with advanced internal
rating-based aspects of the Reserve Bank’s ‘Capital Adequacy Framework (Internal Models Based Approach) (BS2B)’ (‘BS2B’). In June 2019,
Westpac New Zealand presented the Reserve Bank with a submission providing an overview of its credit risk rating system and activities
undertaken to address compliance issues and enhance risk management practices.
On 30 October 2019, the Reserve Bank informed Westpac New Zealand that it had accepted the submission and measures undertaken by Westpac
New Zealand to achieve satisfactory compliance with BS2B, and that Westpac New Zealand would retain its accreditation to use internal models
for credit risk in the calculation of its regulatory capital requirements. With effect from 31 December 2019, the Reserve Bank removed the
requirement imposed on Westpac New Zealand since 31 December 2017 to maintain minimum regulatory capital ratios which were two
percentage points higher than the ratios applying to other locally incorporated banks.
Westpac New Zealand has disclosed non-compliance with BS2B (compliance with which is a condition of registration for Westpac New Zealand) in
its disclosure statements since September 2016. In particular, Westpac New Zealand has disclosed that when calculating LVRs for less than one
percent of its residential mortgages by loan value, Westpac New Zealand uses total committed exposure rather than exposure at default for
capital adequacy purposes and for less than 5% of accounts by number, it uses an updated valuation of the security value and not the origination
value. These limitations on Westpac New Zealand’s LVR calculations are reflected in the LVR values disclosed by the NZ Banking Group in Note iv.
of the Registered bank disclosures.
Westpac New Zealand has also disclosed non-compliance with its condition of registration 25 relating to the Reserve Bank’s BS11: Outsourcing
Policy in its disclosure statement for the six months ended 31 March 2020.
These matters have no impact on the compliance by the Overseas Bank with its conditions of registration.
Changes to conditions of registration
The Reserve Bank amended the Overseas Bank’s conditions of registration with effect from 1 May 2020, to remove restrictions on the Overseas
Bank’s new residential mortgage lending at high loan-to-valuation (‘LVR’) ratios.

Westpac Banking Corporation - New Zealand Banking Group 39
Independent auditor’s review report
To the Directors of Westpac Banking Corporation
Report on the Disclosure Statement
We have reviewed pages 5 to 25 and pages 29 to 37 of the Disclosure Statement for the six months ended 31 March
2020 (the “Disclosure Statement”) of Westpac Banking Corporation, which includes the financial statements of
Westpac Banking Corporation – New Zealand Banking Group (“NZ Banking Group”) required by Clause 26 of the
Registered Bank Disclosure Statements (Overseas Incorporated Registered Banks) Order 2014 (as amended) (the
“Order”) and the supplementary information required by Schedules 5, 7, 9, 12 and 14 of the Order. The NZ Banking
Group comprises the New Zealand operations of Westpac Banking Corporation.
The financial statements on pages 5 to 25 comprise the balance sheet as at 31 March 2020, the income statement,
the statement of comprehensive income, the statement of changes in equity and the statement of cash flows for the
six months then ended, and the notes to the financial statements that include a statement of accounting policies and
selected explanatory notes.
The supplementary information is included within notes 3, 5 and 6 of the financial statements and notes ii to vi of
the registered bank disclosures.
Directors’ responsibility for the Disclosure Statement
The Directors of Westpac Banking Corporation (the “Directors”) are responsible, on behalf of Westpac Banking
Corporation, for the preparation and fair presentation of the Disclosure Statement, which includes financial
statements prepared in accordance with Clause 26 of the Order and for such internal control as the Directors
determine is necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
In addition, the Directors are responsible, on behalf of Westpac Banking Corporation, for the preparation and fair
presentation of the supplementary information in the Disclosure Statement which complies with Schedules 3, 5, 7,
9, 12 and 14 of the Order.
Our responsibility
Our responsibility is to express the following conclusions on the financial statements and supplementary
information presented by the Directors based on our review:
 the financial statements (excluding the supplementary information): whether, in our opinion on the basis of
the procedures performed by us, anything has come to our attention that would cause us to believe that the
financial statements have not been prepared, in all material respects, in accordance with New Zealand
Equivalent to International Accounting Standard 34: Interim Financial Reporting (NZ IAS 34) and
International Accounting Standard 34: Interim Financial Reporting (IAS 34);
 the supplementary information (excluding the supplementary information relating to credit and market risk
exposures and capital adequacy): whether, in our opinion on the basis of the procedures performed by us,
anything has come to our attention that would cause us to believe that the supplementary information does not
fairly state the matters to which it relates in accordance with Schedules 5, 7, 12 and 14 of the Order; and
 the supplementary information relating to credit and market risk exposures and capital adequacy: whether, in
our opinion on the basis of the procedures performed by us, anything has come to our attention that would
cause us to believe that the supplementary information is not, in all material respects, disclosed in accordance
with Schedule 9 of the Order.
We conducted our review in accordance with the New Zealand Standard on Review Engagements 2410: Review of
Financial Statements Performed by the Independent Auditor of the Entity (NZ SRE 2410). As the auditor of the
NZ Banking Group, NZ SRE 2410 requires that we comply with the ethical requirements relevant to the audit of
the annual financial statements.
PricewaterhouseCoopers, 188 Quay Street, Private Bag 92162, Auckland 1142, New Zealand
T: +64 9 355 8000, F: +64 9 355 8001, pwc.co.nz

40 Westpac Banking Corporation - New Zealand Banking Group
A review in accordance with NZ SRE 2410 is a limited assurance engagement. The auditor performs procedures,
primarily consisting of making enquiries, primarily of persons responsible for financial and accounting matters,
and applying analytical and other review procedures. The procedures performed in a review are substantially less
than those performed in an audit conducted in accordance with International Standards on Auditing (New
Zealand) and International Standards on Auditing. Accordingly, we do not express an audit opinion on the
financial statements and supplementary information.
We are independent of the NZ Banking Group. Our firm carries out other services for the NZ Banking Group in
the areas of other audit related services relating to the issuance of comfort letters and agreed upon procedures
reports on debt issuance programmes. In addition, certain partners and employees of our firm may deal with the
NZ Banking Group on normal terms within the ordinary course of trading activities of the NZ Banking Group.
These matters have not impaired our independence as auditor of the NZ Banking Group.
Conclusion
We have examined the financial statements and supplementary information and based on our review, nothing has
come to our attention that causes us to believe that:
a)the financial statements (excluding the supplementary information) have not been prepared, in all material
respects, in accordance with NZ IAS 34 and IAS 34;
b)the supplementary information that is required to be disclosed under Schedules 5, 7, 12 and 14 of the Order,
does not fairly state the matters to which it relates in accordance with those Schedules; and
c)the supplementary information relating to credit and market risk exposures and capital adequacy that is
required to be disclosed under Schedule 9 of the Order is not, in all material respects, disclosed in
accordance with Schedule 9 of the Order.
Who we report to
This report is made solely to the Directors, as a body. Our review work has been undertaken so that we might state
those matters which we are required to state to them in our review report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone other than Westpac Banking
Corporation and the Directors, as a body, for our review procedures, for this report, or for the conclusions we have
formed.
For and on behalf of:
Chartered AccountantsAuckland
25 May 2020

This page has been intentionally left blank