Westpac Banking Corporation/Announcement

Westpac 2020 Group Annual Report

Annual Report1 November 2020WBCFinancials

ASX Release

2 November 2020

Westpac 2020 Group Annual Report

Westpac Banking Corporation (“Westpac”) today provides the attached Westpac
2020 Group Annual Report.

For further information:

David Lording Andrew Bowden
Group Head of Media Relations Head of Investor Relations
0419 683 411 0438 284 863

This document has been authorised for release by Tim Hartin, General Manager & Company
Secretary.

Level 18, 275 Kent Street
Sydney, NSW, 2000

2020
ANNUAL REPORT
Fix
Simplify
Perform
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Navigating this report
About this report
Westpac’s 2020 Annual Report is our primary statutory and regulatory
reporting disclosure. It comprises information about our activities,
strategy, and financial and non-financial results over the reporting period.
Westpac’s annual reporting suite
Our annual reporting suite brings together the Group’s financial, non-
financial, risk and sustainability performance for the year. It includes our
Annual Report, FY20 Financial Results Announcement, FY20 Investor
Discussion Pack, Pillar 3 Report, Sustainability Performance Report, and
our Corporate Governance Statement. Access the full suite online at
www.westpac.com.au/2020annualreport.
Westpac Banking Corporation
ABN 33 007 457 141
Read more or refer to another
report for more information
Case study
Rebuilding after bushfires
St.George customer, Lyn Grey,
and Ulladulla branch manager,
Lloyd Pigram, at Lyn’s property
on the NSW South Coast.
Full story on page 31.
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1
WESTPAC GROUP 2020 ANNUAL REPORT
It’s been a challenging year and we should have done
better. We’ve taken accountability for our shortcomings
and are working to fix our mistakes, simplify the business
and restore performance. We’ve made progress, but
there’s much to do to restore value, and the trust you’ve
placed in us. Here is our plan.
CONTENTS
1 STRATEGIC REVIEW 01
Strategic Report 01
About Westpac 02
2020 Year in review 04
Chairman’s report 06
Chief Executive Officer’s report 08
Performance review 10
External environment 12
Our strategy 14
Our priorities 18
Building a sustainable future 34
Corporate Governance 52
Directors’ Report 56
Board of Directors 57
Executive team 61
Remuneration Report 70
Information on Westpac 101
Significant developments 102
2 GROUP PERFORMANCE 111
Five year summary 112
Reading this report 115
Review of Group operations 117
Income statement review 120
Balance sheet review 125
Capital resources 129
Divisional performance 131
Consumer 135
Business 136
Westpac Institutional Bank 138
Westpac New Zealand 139
Specialist Businesses 141
Group Businesses 143
Risk and risk management 144
Risk management 144
Risk factors 151
Other Westpac business
information 164
3 FINANCIAL STATEMENTS 167
Financial statements 168
Notes to the financial statements 174
Statutory statements 311
4 SHAREHOLDER INFORMATION 321
Shareholding information 322
Additional information 332
Information for shareholders 336
Glossary of abbreviations
and defined terms 339
Contact us inside back cover
In this Annual Report a reference to ‘Westpac’, ‘Group’, ‘Westpac Group’, ‘we’, ‘us’ and ‘our’ is to Westpac Banking Corporation ABN 33 007 457 141
and its subsidiaries unless it clearly means just Westpac Banking Corporation. All figures in this Annual Report are for the 12 months ended
30 September 2020 unless otherwise indicated. All comparisons are against results for the 12 months ended 30 September 2019 unless otherwise
indicated. All dollar amounts are in Australian dollars unless otherwise indicated. For certain information about the basis of preparing the financial
information in this Annual Report see ‘Reading this report’ in Section 2. In addition, this Annual Report contains statements that constitute
‘forward-looking statements’ within the meaning of Section 21E of the US Securities Exchange Act of 1934. For an explanation of forward-looking
statements and the risks, uncertainties and assumptions to which they are subject, see ‘Reading this report’ in Section 2. Information contained in
or accessible through the websites mentioned in this Annual Report does not form part of this report unless we specifically state that it is incorporated
by reference and forms part of this report. All references in this report to websites are inactive textual references and are for information only.
1 STRATEGIC REVIEW
2 GROUP PERFORMANCE
3 FINANCIAL STATEMENTS
4 SHAREHOLDER INFORMATION
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2
WESTPAC GROUP 2020 ANNUAL REPORT
ABOUT WESTPAC
Serves the banking needs of consumers in Australia
including the sales and service of banking products,
from mortgages, credit cards, personal loans and
savings to deposit products. Also works with Business,
Westpac Institutional Bank (WIB), and Specialist
Businesses in the sales, service and referral of certain
financial services and products including general and
life insurance, superannuation, platforms, auto lending
and foreign exchange.
Founded in 1817, Westpac is Australia’s
first bank and oldest company.
FY20 CASH EARNINGSOVERVIEWDIVISION
$2,746m
$2,608m
TOTAL CASH
EARNINGS
1
$2,290m
REPORTED
PROFIT
CONSUMER
Delivers banking, wealth and insurance services
to consumer, business, and institutional customers
across New Zealand.
$612m
NEW ZEALAND
Delivers a broad range of financial services
to commercial, corporate, institutional and
government customers operating in, and with
connections to, Australia and New Zealand.
$332m
WESTPAC
INSTITUTIONAL
BANK
Serves the banking needs of small-to-medium
businesses and commercial and agribusiness
customers across Australia. Also supports the
banking needs of high net worth individuals in
our Private Wealth business.
$734m
BUSINESS
Brings together the Group’s non-core Australian
businesses, including superannuation, wealth
platforms, investments, auto finance, general
insurance, life insurance, lenders mortgage
insurance, along with our operations in Fiji
and Papua New Guinea.
($506m)
SPECIALIST
BUSINESSES
Includes Treasury, Technology and Core Support,
which comprises Group support functions of
Australian banking operations, property services,
strategy, finance, risk, compliance, legal, human
resources, and customer and corporate relations
.
($1,310m)
GROUP
BUSINESSES
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2
WESTPAC GROUP 2020 ANNUAL REPORT
With our portfolio of brands, we provide over 14.1 million
2
customers with a full
range of banking services. We also provide selected insurance, superannuation and
wealth platform services to consumers and businesses. Our market capitalisation is
$61 billion with $912 billion of total assets (at 30 September 2020).
AUSTRALIA
NEW ZEALAND
Customers
12.1m
Customers
1.3m
Household
deposits
3
21%
Consumer
lending
6
19%
Business
credit
4
16%

Mortgage
4

22%

Deposits
6

18%
Wealth
platforms
5
18%
FY20 CASH EARNINGSBRANDSMARKET SHARE
$2,746m
Westpac Pacific
1 Refer to page 10 for a reconciliation of reported profit to
cash earnings.
2 Includes Westpac Pacific customers.
3 APRA Banking Statistics, September 2020.
4 RBA Financial Aggregates, September 2020.
5 Strategic Insights, June 2020. All Master Funds Admin.
6 RBNZ, September 2020.
1 STRATEGIC REVIEW
2 GROUP PERFORMANCE
3 FINANCIAL STATEMENTS
4 SHAREHOLDER INFORMATION
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2
WESTPAC GROUP 2020 ANNUAL REPORT
ABOUT WESTPAC
Serves the banking needs of consumers in Australia
including the sales and service of banking products,
from mortgages, credit cards, personal loans and
savings to deposit products. Also works with Business,
Westpac Institutional Bank (WIB), and Specialist
Businesses in the sales, service and referral of certain
financial services and products including general and
life insurance, superannuation, platforms, auto lending
and foreign exchange.
Founded in 1817, Westpac is Australia’s
first bank and oldest company.
FY20 CASH EARNINGSOVERVIEWDIVISION
$2,746m
$2,608m
TOTAL CASH
EARNINGS
1
$2,290m
REPORTED
PROFIT
CONSUMER
Delivers banking, wealth and insurance services
to consumer, business, and institutional customers
across New Zealand.
$612m
NEW ZEALAND
Delivers a broad range of financial services
to commercial, corporate, institutional and
government customers operating in, and with
connections to, Australia and New Zealand.
$332m
WESTPAC
INSTITUTIONAL
BANK
Serves the banking needs of small-to-medium
businesses and commercial and agribusiness
customers across Australia. Also supports the
banking needs of high net worth individuals in
our Private Wealth business.
$734m
BUSINESS
Brings together the Group’s non-core Australian
businesses, including superannuation, wealth
platforms, investments, auto finance, general
insurance, life insurance, lenders mortgage
insurance, along with our operations in Fiji
and Papua New Guinea.
($506m)
SPECIALIST
BUSINESSES
Includes Treasury, Technology and Core Support,
which comprises Group support functions of
Australian banking operations, property services,
strategy, finance, risk, compliance, legal, human
resources, and customer and corporate relations
.
($1,310m)
GROUP
BUSINESSES
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3
WESTPAC GROUP 2020 ANNUAL REPORT
With our portfolio of brands, we provide over 14.1 million
2
customers with a full
range of banking services. We also provide selected insurance, superannuation and
wealth platform services to consumers and businesses. Our market capitalisation is
$61 billion with $912 billion of total assets (at 30 September 2020).
AUSTRALIA
NEW ZEALAND
Customers
12.1m
Customers
1.3m
Household
deposits
3
21%
Consumer
lending
6
19%
Business
credit
4
16%

Mortgage
4

22%

Deposits
6

18%
Wealth
platforms
5
18%
FY20 CASH EARNINGSBRANDSMARKET SHARE
$2,746m
Westpac Pacific
1 Refer to page 10 for a reconciliation of reported profit to
cash earnings.
2 Includes Westpac Pacific customers.
3 APRA Banking Statistics, September 2020.
4 RBA Financial Aggregates, September 2020.
5 Strategic Insights, June 2020. All Master Funds Admin.
6 RBNZ, September 2020.
1 STRATEGIC REVIEW
2 GROUP PERFORMANCE
3 FINANCIAL STATEMENTS
4 SHAREHOLDER INFORMATION
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4
WESTPAC GROUP 2020 ANNUAL REPORT
2020
Year in review
This year has been challenging, overshadowed by the
AUSTRAC proceedings, bushfires and storms, and
COVID-19. Through it all, we have remained focused
on helping customers, employees, and the Australian
and New Zealand economies.
The AUSTRAC issues highlighted shortcomings in our
management of financial crime risk and have been a
catalyst for change across the Group. In the last year,
we have refreshed our Board and Executive Team, are
refocusing on core banking, and are accelerating our
program to address shortcomings in our management
of risk. Change is underway, but there is a lot to do.
The Group’s financial results were disappointing.
Reported profit was $2,290 million, down 66%. Cash
earnings were $2,608 million, down 62%. Much of
the decline resulted from our operating environment,
where we faced lower margins and higher impairment
charges – a direct result of COVID-19. However, the
poor result was also due to higher costs related to the
AUSTRAC proceedings along with asset write-downs
from businesses we plan to exit.
Nevertheless, our balance sheet remained strong.
Our capital ratios are in the top quartile of banks
globally and funding and liquidity ratios are
comfortably ahead of regulatory minimums.
Amplified by COVID-19, our share price declined over
the year and dividends were significantly lower. Our
three priorities of fix, simplify and perform underpin
our plans to fix the issues, simplify our business and
improve performance. Progress over the year included:
—Five new Group Executives;
—Establishing our new Specialist Businesses division
bringing together non-core activities;
—Launching our new Lines of Business operating
model to clarify responsibility and accountability
for end-to-end performance;
—Implementing structural and operational changes
to the management of risk; and
—Commencing our CORE program bringing
together initiatives to improve non-financial
risk management.
With a committed team and priorities to fix, simplify,
and perform, we are confident that we are on the
path to become a simpler, stronger bank.
HIGHS
LOWS
#3
Consumer NPS ranking
4

Delays responding
to customers given increased
queries during COVID-19
Mortgage 90+ day
delinquencies up
68 basis points to
1.50%
Strong balance sheet
CET1 capital ratio
11.13%
Net Stable
Funding Ratio
122%
Efficiency savings
$400m
+

$1.2
bn
Notable Items after tax,
excluding AUSTRAC
No 2020 interim
dividend
Final dividend per share
31c
Share price
5
43%
Supporting customers during
COVID-19
~175,000
Mortgage deferral packages
~40,000
Deferrals for businesses
1,980
1
Bushfire recovery support
packages
Long-dated complaints

93%
#1
Business Banking NPS ranking
2,3
CustomersFinancial
1 Bushfire recovery packages at 31 March 2020.
2 Net Promoter Score measures the net likelihood of recommendation to others of the customer’s main financial institution for retail or business banking. Net
Promoter ScoreSMis a trademark of Bain & Co Inc., SatmetrixSystems, Inc., and Mr Frederick Reichheld. Using a 11 point numerical scale where 10 is ‘Extremely
likely’ and 0 is ‘Extremely unlikely’, Net Promoter Score is calculated by subtracting the percentage of Detractors (0-6) from the percentage of Promoters (9-10).
3 Source: DBM Consultants Business Atlas, March – August 2020, 6MMA. MFI customers, all businesses.
4 Source: DBM Consultants Consumer Atlas, March – August 2020, 6MMA. MFI Westpac Group customers.
5 Based on 30 September 2020 vs 30 September 2019 closing share prices.
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5
WESTPAC GROUP 2020 ANNUAL REPORT
Launched
New
Westpac
app
Branch and ATM availability
during COVID-19
>90%
Strengthened infrastructure,
major system outages more
than halved
Bringing
1,000
jobs back to Australia
Updated position
statements:
— Climate Change
— Human Rights
$10.1bn
lending to climate
change solutions
$150m
+

in community investment
6

#1
largest financier to greenfield
renewable energy projects in
Australia for the past three
years
7
New Board Legal, Regulatory,
Compliance & Conduct
Committee
New Financial Crime function
with Group Executive
reporting to CEO
400
+

new Risk, Compliance and
Financial Crime employees
Employee commitment
index
8
73%
Supported people
working from home
at the peak of COVID-19
22,000
Women in leadership
9
50%
9.4%
of employees using
Employee Access Program
for confidential counseling
and coaching
Mortgage balances
declining

2%
Complexity of IT
infrastructure – long
timeframe to fix
Inadequate transaction
monitoring to help identify
potential child exploitation
AUSTRAC’s Statement
of Claim and provision
for penalty of
$1.3bn
Additional
$500m
APRA capital overlay
for risk deficiencies
Credit impairment charge
$3.2bn
$2.4bn
Remuneration consequences
following review of AUSTRAC
matters
10
$20m
Board and Executive departures
OperationsSustainabilityEmployeesRisk
6 Excludes commercial sponsorships.
7 IJGlobal, September 2020.
8 Six-month rolling average.
9 Proportion of women (permanent and maximum term) in leadership roles across the Group, including the CEO, Group Executives, General Managers, senior
leaders with significant influence on business outcomes (direct reports to General Managers and their direct reports), large (3+) team people leaders three
levels below General Manager, and Bank and Assistant Bank Managers.
10 Refer to explanation in Remuneration Report in the Directors’ Report.
1 STRATEGIC REVIEW
2 GROUP PERFORMANCE
3 FINANCIAL STATEMENTS
4 SHAREHOLDER INFORMATION
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6
WESTPAC GROUP 2020 ANNUAL REPORT
CHAIRMAN’S REPORT
Dear fellow shareholders,
I am very pleased to have become the Chairman of
such an important Australian company as Westpac
in what has become a difficult time for us and the
industry more broadly.
The country, the banking sector and Westpac have
been here before, but in different circumstances, and
as before, recovery will re-emerge.
This is my first Annual Report letter to you as Chairman,
and there are three messages I would like to deliver.
The first is to express my disappointment at a number of
issues we are facing, in particular, the AUSTRAC matters,
subdued financial performance, as well as our inability to
pay a first half dividend this year. Despite the subdued
economic environment, these issues are partly of our
own making, and therefore simply not good enough.
For this I apologise sincerely on behalf of the Company.
The decision on the first half dividend was particularly
disappointing for shareholders, especially those relying
on dividends. Many shareholders have written to me
expressing their disappointment and anger at this, as
well as at the loss of the value of their investments.
Shareholders legitimately are aggrieved and deserve
better outcomes.
I am fully aware that in a low growth environment, a solid
dividend yield is important to total shareholder return.
We have been able to declare a final dividend of 31 cents
per share. This dividend represents a payout ratio of
49% of our Full Year 2020 statutory earnings.
It is important we work quickly towards a consistent
dividend each half by improving the performance of
our portfolio of businesses and maintaining our capital
strength. With respect to the latter, our capital position
remains strong and we have options to ensure we
maintain capital strength, without resorting to external
sources.
It is my role as Chairman, that of my Board colleagues,
and our management team to assist the country and our
customers to manage through this difficult period. As
we undertake this task, we must fix our issues and boost
performance and shareholder value. We are committed
to seeing this through, and we have made good progress
already.
We are taking firm and urgent steps to resolve matters.
While we can continue to address some issues quickly,
many will however take time, and I ask for your patience,
which I believe will be rewarded. I look forward to
updating you on this progress.
The second is while there remain matters to fix, we
are primarily focused on the future. I am genuinely
pleased at the way the Board and management have
responded to these past challenges as well as setting
out a new agenda for the Company. While it may not yet
be transparent externally, there has been considerable
progress over the past six months, which will set a new
foundation for the Company.
Westpac’s heritage and foundations are strong, and
there is much we can build upon, particularly our strong
core domestic franchises.
There have been few times in history where we have
needed to move so rapidly. Circumstances are different
now, and our approach must change.
Third, we are well advanced to improve the way we
manage and respond to the challenges before us.
For example, we have moved from committee-based
decision making, to faster decision making with clear
individual accountabilities.
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WESTPAC GROUP 2020 ANNUAL REPORT
Immediately on my appointment and that of the CEO, we
announced a strategy reset to get back to core banking.
We transferred several businesses into a new division
and many of these will be exited, adding additional
capital strength. This will also help us to become leaner,
more agile and more accountable while maintaining our
caring and helping orientation. Managing fewer things
should also ensure we do them better and resolve issues
more quickly.
We are also responding to an increasingly digital world
and making it easier for customers to do business
with us online and with mobile technology. A great
example has been the completion of our new generation
Westpac Banking app that will be available to all iPhone
customers in the year ahead.
In designing and delivering our strategy, there is no
substitute for having a best-in-class management team
and Board.
The Board was renewed with the appointments of
Chris Lynch and Michael Hawker during the year. Chris
has a strong management and finance background,
having been the CFO at both Rio Tinto and BHP, as well
as the CEO of Transurban. Mike is a highly experienced
director and given his extensive financial services
experience will complement the Board’s skills. As part
of the Board’s renewal we expect to appoint additional
Directors in the period ahead, adding to the Board’s
skills, experience and diversity.
We’ve already made significant changes to the
management team, including the appointment of
Peter King as CEO. Peter’s experience in banking,
and of Westpac, is extensive, and he has a strong
execution bias, as have the team overall.
Peter has announced and implemented a new business-
line management structure which will give the heads of
these businesses, end-to-end personal accountability
for progress and results, and he has also launched
comprehensive business and cultural transformation
programmes across the Group.
Central to our change has been to improve
accountability, and this year significant consequences
were applied in relation to the AUSTRAC matters.
In addition to the management and Board changes,
remuneration consequences of more than $20 million
1

were applied to decrease remuneration outcomes across
38 executives, managers and other employees.
This included cancelling all short-term variable reward
for the Group Executive Team this year. With the
AUSTRAC proceedings settled and remuneration
consequences applied, we must now look ahead and
implement the necessary change to rebuild Westpac.
We have also changed the way the Board works, taking
steps to improve processes and oversight, to ensure
we are focusing on all elements of success including
strategy, management, customer service, economic
performance, capital, dividends and importantly given
our current regulatory issues, financial and non-financial
risk management compliance and culture. With respect
to compliance, we have established a new Board
Legal, Regulatory and Compliance Committee to give
greater focus to this area and have also given separate
management focus to these functions.
We have made changes to the conduct of Board and
committee meetings, to improve decision making and
allow us to focus on the most important matters.
All of these changes have been necessary as a
foundation to ensure we get and put things right, get
them done, ensure they have been done and don’t
happen again.
During the year, Brian Hartzer, our former CEO, stepped
down, a number of Directors retired from the Board –
Lindsay Maxsted our former Chairman, Ewen Crouch and
Anita Fung, Non-executive Directors – and Alison Deans
has elected to step down at this year’s Annual General
Meeting. I would like to take this opportunity to thank
them for their service to the Company.
Looking forward, it is unfortunate that COVID-19, and its
impact, will likely be with us for a while yet. It will take
some time before we fully understand the impact on
our customers and the bank. This said, while uncertainty
remains, we are working hard to produce better results
in 2021, but it is unlikely that we will see a return to
a more normal situation until 2022, at the earliest.
Rest assured, the Board and management are fully
committed to restoring Westpac to its rightful position
at the earliest possibility, and I am confident that this will
happen.
Your sincerely,
John McFarlane
Chairman
It is important we work quickly
towards a consistent dividend
each half by improving
performance of our portfolio of
businesses and maintaining our
capital strength.”
1 Refer to explanation in Remuneration Report in the Directors’ Report.
1 STRATEGIC REVIEW
2 GROUP PERFORMANCE
3 FINANCIAL STATEMENTS
4 SHAREHOLDER INFORMATION
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8
WESTPAC GROUP 2020 ANNUAL REPORT
CEO’S REPORT
Dear shareholders,
This has been a year like no other. COVID-19’s impact
has been profound and has created challenges for
many individuals and companies. The sharp decline
in economic growth, low interest rates and higher
impairment charges have materially impacted the
sector’s and our earnings.
At the same time, our own issues, including responding
to our shortcomings in risk management – particularly
in financial crime – have contributed to lower earnings.
These factors saw dividends and the value of your
investment fall.
You expected more from Westpac and we apologise for
letting you down. I recognise the distress lower dividends
caused to many shareholders, especially retirees. I
assure you that while it will take some time, we are doing
everything we can to fix things and rebuild Westpac.
I do not underestimate the importance of leading
Australia’s oldest company at such a pivotal moment
– it is a great privilege. Having spent the best part of
my career at Westpac, I know this Company has strong
foundations and deeply committed people, and so I am
confident we will fix our issues, simplify our business
and perform for our stakeholders.
Turning things around
On 20 November 2019, AUSTRAC commenced civil
proceedings against Westpac in relation to alleged
contraventions of the Anti-Money Laundering and
Counter-Terrorism Financing Act 2006 (Cth). This had
a major impact this year, highlighting weaknesses in
our management of financial crime. We have taken
responsibility for our failings and in September this year,
we reached an agreement with AUSTRAC to resolve the
proceedings. As part of the settlement, Westpac agreed
to pay a civil penalty of $1.3 billion, which the Court
has approved.
While this is a significant cost for shareholders, the overall
settlement is an important step forward, allowing us to
direct our energy to getting back on track.
We have investigated the underlying issues, and we
know we need to do better. We carried out a number of
internal reviews including an assessment of management
accountability in relation to the issues raised in the
AUSTRAC proceedings and the adequacy of Westpac’s
financial crime program. We also established an
independent Advisory Panel to review Board governance
and Board accountability in relation to the issues raised in
the AUSTRAC proceedings and reassessed our 2018 Culture,
Governance and Accountability self-assessment program.
The recommendations and findings of these reviews were
published on 4 June and 17 July 2020 respectively.
Complexity has been at the heart of our issues – in our
systems, processes, and businesses. Accountability was
often not clear, and the right skills and capabilities were
lacking in some areas. We didn’t have the right culture
and we were too reactive and slow to respond when
issues emerged.
For change to be effective it must start at the top.
There has been significant change at the executive level
with the team renewed. We have sharpened our focus on
Australia and New Zealand and are moving back to core
banking, with our Specialist Businesses division bringing
our non-core businesses together.
We have enhanced our operating structures by
implementing a Lines of Business model which aligns
our businesses to our major customer offers such as
mortgages, everyday banking, or business lending.
Individuals are now responsible for each Line of Business,
including financial performance, risk management and
customer outcomes. This model aims to improve decision
making, creates clear end-to-end accountability for
our activities, streamlines management and speeds
up decision making.
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9
WESTPAC GROUP 2020 ANNUAL REPORT
These changes are complemented by our new purpose
and values and will help guide our cultural change.
We have also made changes in risk management, including
the creation of a new role – Group Executive, Financial
Crime, Compliance and Conduct, and added significant
skills and resources to our risk management areas. Fixing
our management of risk is a key priority.
We have made good progress in improving our financial
crime program and are making Company-wide changes
through our Customer Outcomes and Risk Excellence
program. This program deals with the source of our issues,
seeking to strengthen non-financial risk management and
improve our risk culture.
I am confident that these changes are steering Westpac
in the right direction, towards becoming a simpler and
stronger bank. The turnaround will take some years, but we
are determined to rebuild value and importantly, your trust.
Helping customers when they need it most
Against this backdrop, I am very proud of how our people
stepped up to support customers through COVID-19,
and the bushfires and floods that affected large parts of
Australia this year. We worked hard to support customers
through this time, changing our operations to remain open,
diverting resources to areas of most need and providing a
range of tailored support packages.
With the bushfires, in addition to the many employees
working on the front line, our teams worked tirelessly
to ensure customers could access their funds while also
providing emergency grants to those most affected.
Around 2,000 relief packages were provided.
With COVID-19, our focus was doing everything we could
to keep our people safe while supporting customers. We
kept as many branches as we could open while enabling
around 22,000 employees to work from home. We
provided customers with special interest rates, certain
fee waivers, and temporary loans and supported over
215,000 consumer and business customers with repayment
deferrals.
While there were a few setbacks through the year, such
as increased wait times and delays to loan processing,
we have (and will continue to) supported customers
through this uncertain time.
Performance
Our financial performance this year was disappointing.
The Group’s reported profit was $2,290 million down 66%
(or $2,608 million in cash earnings, down 62%), partly a
result of our operating environment including low interest
rates, materially higher impairment charges and higher
costs from navigating COVID-19. The AUSTRAC settlement,
further remediation costs, asset writedowns and high risk
and compliance costs also contributed. The larger impacts
on results included:
—Impairment charges of $3,178 million, reflecting an
increase in provisions for expected credit losses due
to COVID-19 impacts;
—$1,442 million after tax in provisions for AUSTRAC
proceedings including a civil penalty of $1,300 million;
and
—Additional provisions for customer refunds, repayments,
associated costs and litigation items of $440 million
after tax.
Despite the strength of our franchise, lending stalled over
the year. While demand was lower, we did not keep pace
with the market – particularly in our core mortgage portfolio.
Net interest margins were also down due principally to low
interest rates and a highly competitive market.
However, our balance sheet remains strong. Key liquidity
and funding ratios are above target, and our CET1 capital
ratio was 11.13% – the highest level for at least the last
20 years. This strength made possible the payment of the
final dividend, albeit reduced, and allows us to continue
supporting customers and the economy through this
challenging time.
We remain comfortable with our current capital ratios and
have buffers to absorb a potential further deterioration
in asset quality. Capital will also be generated as we exit
activities in our Specialist Businesses division.
Looking ahead
In the near term, growth is already benefitting from the
reopening of the economy. Next year we expect that
to continue, albeit at a slower pace. Risks around the
containment of the virus, the gradual unwinding of support
measures, and prospects for the global economy emphasise
the high uncertainty we will continue to experience.
Growth in financial services will also be challenged,
particularly in a persistent low interest rate environment.
Impairment charges are also likely to remain elevated as
consumer and business defaults rise following stimulus
measures unwind.
With our three priorities of fix, simplify and perform we are
becoming a simpler and stronger bank focused on our core
consumer, business and institutional segments. Through
our program of change we are implementing our new
Lines of Business operating model, strengthening our risk
management capability, finalising customer remediation,
enhancing our risk culture and simplifying where we operate.
Finally, I want to thank our people. I know how deeply
many have been affected by our issues this year. Despite
the challenges our people have worked incredibly hard
and always maintained their passion to help each other
and customers.
Importantly, we move ahead with a strong balance sheet
and the financial resources and commitment to continue
supporting customers and shareholders through this
difficult time.
Yours sincerely,
Peter King
CEO
I do not underestimate the
importance of leading Australia’s
oldest company at such a pivotal
moment – it is a great privilege.”
1 STRATEGIC REVIEW
2 GROUP PERFORMANCE
3 FINANCIAL STATEMENTS
4 SHAREHOLDER INFORMATION
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10
WESTPAC GROUP 2020 ANNUAL REPORT
PERFORMANCE REVIEW
FY20 performance
overview
Westpac Group delivered a net profit attributable
to owners of Westpac Banking Corporation for
Full Year 2020 of $2,290 million, a decrease of
$4,494 million, down 66%.
Much of the decline can be traced back to the impact
of COVID-19 on customers and on our business. This
included a material increase in impairment charges
as we put aside provisions for the estimated impact
of potential future credit losses. Earnings were also
impacted by our own issues, including the costs
associated with the AUSTRAC matters.
In assessing performance, we use ‘cash earnings’
– a measure of profit determined by adjusting
reported earnings by three factors:
1. Material items that do not reflect ongoing
performance;
2. Some items that may not be considered when
determining dividends, including the amortisation
of intangible items, treasury shares or economic
hedging impacts; and
3. Accounting classifications between individual items
that do not impact reported results.
FULL YEAR
SEPT 2020
FULL YEAR
SEPT 2019
% MOV’T
SEPT 20
– SEPT 19
Net interest income16,696
16,907(1)
Non interest income3,4873,742(7)
Net operating income20,183
20,649(2)
Operating expenses(12,739)(10,106)26
Net profit before impairment charges and income tax7,444
10,543(29)
Impairment charges(3,178)(794)large
Profit before income tax4,266
9,749(56)
Income tax expense(1,974)(2,959)(33)
Net profit for the period2,292
6,790(66)
Profit attributable to non-controlling interests (NCI)(2)(6)(67)
Net profit attributable to owners of WBC2,290
6,784(66)
Total cash earnings adjustments (post tax)318
65large
Cash earnings2,608
6,849(62)
Add back notable items2,6191,047150
Cash earnings excluding notable items5,227
7,896(34)
To further explain performance, we have identified a
number of major items that do not reflect underlying
performance. These are ‘notable items’ and in
FY20 were $2,619 million and included:
—Provisions and costs associated with the AUSTRAC
proceedings $1,442 million after tax;
—Provisions for customer refunds, repayments,
associated costs and litigation items $440 million
after tax;
—The write-down of intangible items $614 million; and
—The net impact of major asset sales and revaluations
$123 million.
The charts on the next page are presented on a cash
earnings basis.
2,608
2,290
6,849
6,784
8,065
8,095
WESTPAC MEASURES OF PROFIT ($m)
Reported Net Profit Cash earnings
FY18FY19FY20
1.9
1.2
1.1
ASSET QUALITY (%)
Stressed exposures to total committed exposures
Sept 18Sept 19Sept 20
REPORTED NET PROFIT ATTRIBUTABLE TO OWNERS OF WESTPAC ($m)
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11
WESTPAC GROUP 2020 ANNUAL REPORT
16.50
11.13
15.85
10.67
16.14
10.63
STRONG BALANCE SHEET (%)
Common equity tier 1 capital ratio
Reported Internationally comparable
Sept 18Sept 19Sept 20
Top quartile of
banks globally
1.9
1.2
1.1
ASSET QUALITY (%)
Stressed exposures to total committed exposures
Sept 18Sept 19Sept 20
2.08
2.12
2.22
NET INTEREST MARGINS (%)
Cash earnings basis
Sept 18Sept 19Sept 20
Low interest
rates, st rong
competition
GROSS LENDING ($bn)
Sept 18Sept 19
441449445
148152154
82
7874
161711
17
2123
Sept 20
Australian
housing
Australian
businesses
Australian
personal
New
Zealand
Other
overseas
CASH EARNINGS FY19-FY20 ($m)
FY19Add back
notable
items
FY19
ex-notable
items
FY20
ex-notable
items
Notable
items
Net
interest
income
Non-
interest
income
ExpensesImpairment
charges
Tax
& NCI
1
FY20
7, 896(68)(636)
(591)
(2,384)
1,010
5,227
(2,619)
2,608
6,849
1,047
Down 34%
Down 62%
Lower activity, fee
waivers (supporting
customers) along with
a lower insurance and
wealth contribution
Average assets higher
(mostly liquid assets) net
interest margins down
Higher risk and compliance spending and
costs of responding to COVID-19 impacts
including more customer support resources
Provisions for higher
expected credit losses
related to COVID-19
1 STRATEGIC REVIEW
2 GROUP PERFORMANCE
3 FINANCIAL STATEMENTS
4 SHAREHOLDER INFORMATION
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12
WESTPAC GROUP 2020 ANNUAL REPORT
EXTERNAL ENVIRONMENT
External environment
2020 has been the most challenging year for the
banking system since the early 1990s recession.
This has been largely due to the direct and indirect
impacts of the COVID-19 pandemic which, at 30
September 2020, contributed to around one million
deaths from over 32 million confirmed cases worldwide
1
.
While Australia and New Zealand acted decisively to
control the health risks of the pandemic, the lockdowns
have had a profound impact on our economies.
Both nations are in recession, Australia for the first time
in almost 30 years. Further spikes in infection rates may
increase restrictions already in place and considerable
uncertainty remains around when State and international
border restrictions will be lifted.
Government bodies and financial institutions have
worked together to help mitigate COVID’s impact and
maintain financial stability. Governments and central
banks have provided unprecedented levels of fiscal
and monetary stimulus, while banks have supported
customers with substantial hardship packages.
Not surprisingly, the environment for most businesses
is challenging; including financial services companies.
Unemployment has increased significantly, and
underemployment is also high, consumer sentiment
has only recently recovered from the record lows
during the height of the pandemic while business
investment is still contracting.
Financial services companies have experienced lower
returns, driven by very low interest rates, less activity,
and higher impairment provisions in anticipation of a
rise in customer defaults.
At the same time, the sector continues to face intense
regulatory and legal scrutiny. Regulators are investigating
several sector and company specific matters, including
those that emerged in the Royal Commission into
Misconduct in the Banking, Superannuation and Financial
Services Industry. These have led to some class actions.
In particular, ASIC has indicated it is pursuing a number
of potential cases which may lead to additional actions.
In response, financial service companies are focusing on
raising governance, culture and accountability standards.
Competition
The Group operates in a highly competitive environment.
We serve the banking and risk management needs of
consumers, small businesses, corporate and institutional
customers and compete with a large number of providers
across every product and service. Competitors in
Australia and New Zealand include banks (both domestic
and global), investment banks, credit unions, building
societies, finance companies, mortgage originators,
card issuers, buy now pay later firms and other money
lenders, fund administration companies, industry funds,
insurance companies, online financial services providers,
and technology companies.
Our competitive position is determined by many
factors including:
—the quality, range, innovation and pricing of
products and services;
—digital and technology solutions;
—customer service and convenience;
—the effectiveness of, and access to, distribution
channels;
—brand reputation and preference;
—the type of customers served; and
—the talent and experience of our employees.
Digital innovation is also redefining the competitive
landscape. This has accelerated through the COVID-19
pandemic, as customers move away from physical
outlets to online services.
In Australia and New Zealand competition for deposits
and lending remains fierce. Apart from the number of
providers and the range of product and service options,
slowing demand and a rise in liquidity from monetary
stimulus has heightened competitive intensity. While
the pandemic has reduced the local focus of some
international institutions, digital finance providers
have added to competitive intensity across a range
of products and services.
Outlook
The outlook for 2021 is uncertain. COVID-19’s path
remains unpredictable and the risk of outbreaks is ever
present. While government assistance has provided
a buffer to the economic impacts, this initial support
is scheduled to unwind and is likely to be replaced by
other more targeted support. The Federal Budget, which
featured personal tax cuts and investment incentives, has
been an important addition but further fiscal stimulus
may be required.
Against this backdrop, we expect GDP in Australia to
increase by around 4% in the year to September 2021,
a rebound from the significant decline of around 5%
expected in the year to September quarter of 2020. The
outlook remains challenging. In the near term, growth is
already benefitting from the reopening of the economy.
Next year we expect that to continue, albeit at a slower
pace. Risks around the ongoing containment of the
virus, the gradual unwinding of the extensive support
measures, and prospects for the global economy
emphasise the unusually high uncertainty we will
continue to experience.
While some government programs will be wound back,
both fiscal and monetary policy are likely to remain
highly stimulatory until unemployment falls below
6% – a key focus of the Australian Government.
Unemployment is expected to increase in the latter
months of 2020 to around 8%. While this is better than
initial expectations, it is expected to remain between
7% to 8% in 2021. If the economy continues to reopen,
1 WHO Coronavirus Disease (COVID-19) Dashboard (996,000 deaths at 28 September 2020).
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13
WESTPAC GROUP 2020 ANNUAL REPORT
jobs growth will lift but the pace of recovery will likely
be slow due to the restructuring of businesses, sluggish
demand, and the need to rebalance government support.
New Zealand’s response to COVID-19 has proven
effective, with activity bouncing back from the initial
lockdowns and unemployment remaining closer to
4%. Nevertheless, GDP growth in 2021 is expected to
remain below levels recorded in 2019 due to a lack of
international tourism and offshore students along with
limited immigration; all these factors have been good
contributors to GDP in recent years.
Australian house prices have already fallen by around
3% from the peak in April 2020. Low interest rates and
a supportive financial system able to maintain activity
will likely support the housing market. While the impact
of the rundown of banks’ deferred loans is uncertain, it
is likely customers will be provided with significant time
to get back on their feet. Once stressed loans reduce, a
recovery in house prices is anticipated in 2022 and 2023.
Banking and financial services conditions will remain
challenging with slower growth, margin pressure from
low interest rates and the deterioration in asset quality
as companies and individuals continue to experience
reduced income.
Credit growth for the Australian financial system was 2%
for the year to September 2020, down from 2.7% a year
earlier. Total credit growth is expected to slow to around
0.5% to September 2021. Housing credit growth is likely
to be little changed at 3.2%, while business credit growth
is expected to decline with subdued investment. Personal
credit, which has been in decline for some years, is
expected to fall further in 2021 as consumers remain
cautious on debt and use alternative sources of financial
credit.
Near zero interest rates will continue to weigh on banks
and place pressure on net interest margins. The Reserve
Bank of Australia (RBA) has indicated that the cash rate
will not be increased until progress is made towards
full employment and inflation is sustained within the
2% to 3% target band. Very low interest rates are
therefore likely to remain for some time and with them,
margin pressure.
The RBA has offered banks a Term Funding Facility
(TFF) to support lending, particularly to businesses.
The TFF is capped for each bank and allows them to
borrow from the RBA for three years at 0.25%. The
facility is expected to be in place until at least June 2021
and will support the Group’s term wholesale funding
needs for much of the coming year. At 30 September
2020, we have drawn down $18 billion of the TFF.
The Reserve Bank of New Zealand (RBNZ) has been
similarly downbeat, committing to maintain its overnight
cash rate at 0.25% until at least March 2021. The RBNZ
has also flagged that it could take the rate below zero if
further stimulus were required.
Fee income may reduce as fee waivers linked to the
pandemic continue and overall growth remains low.
Wealth and insurance income is also likely to fall, due
to changes in life insurance markets (less cover and
higher reinsurance costs), and strong competition in
wealth platforms.
In the period ahead, the economic impacts of COVID-19
are expected to lead to higher defaults by consumers
and increased business bankruptcies. To date, these
impacts have been cushioned by the supportive
industry measures to defer repayments and from
government stimulus. The banking sector’s approach to
the completion of deferrals and the potential for further
government action may limit any shock to the economy
as other support measures unwind.
In 2020, impairment provisions materially increased
to account for higher expected losses and are likely to
remain elevated into 2021.
Westpac has devoted significant time and effort to
improving the management of risk over the year,
including in non-financial risk and financial crime. This
will continue in the year ahead which will likely see costs
remain high. While Westpac has resolved some legal
cases through the year it is possible that regulators may
take further legal action on matters currently under
investigation or on new matters. This is discussed further
in the risk management and risk factors section.
Consistent with our focus on Australian and New Zealand
banking, we set up our Specialist Businesses division this
year to manage activities not expected to be long-term
strategic options for us. We are looking at alternatives
for these businesses, including sale. The timing of any
sale and settlement will depend on a range of factors but
some transactions may occur in the year ahead.
We remain well capitalised with a CET1 capital ratio of
11.13%. This ratio may ease from a rise in risk weighted
assets as customer stress increases. This will however be
partially offset by efforts to improve capital efficiency
and may include the sale of businesses. Regardless, we
expect to manage our capital position to keep our CET1
capital ratio comfortably above regulatory minimums.
We remain committed to supporting customers and
the economy through these challenging times. Our
immediate priority is to fix our outstanding issues,
including improving risk management, enhancing our
culture, and completing remediation. We have committed
to simplify, focusing on our markets of Australia and
New Zealand, exiting non-core businesses, and reducing
our product set. We also expect to complete the
implementation of our Lines of Business operating model
to clarify responsibilities and accountability. Finally, we
are focused on performance, restoring growth in our
key products including mortgages and business loans,
enhancing returns and resetting our cost base.
Importantly, our strong balance sheet, committed team
and solid customer franchise position us to see these
plans through.
1 STRATEGIC REVIEW
2 GROUP PERFORMANCE
3 FINANCIAL STATEMENTS
4 SHAREHOLDER INFORMATION
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14
WESTPAC GROUP 2020 ANNUAL REPORT
— Risk management
— Culture, including
risk culture
— Customer remediation
— IT complexity
— Reduce customer
pain points
— Exit non-core businesses
and consolidate
international locations
— Rationalise products
— Implement Line of
Business operating model
— Transform using digital
and data
— Customer service –
market leading
— Mortgage growth
— Enhance returns,
optimise capital
— Strong balance sheet
— Re-set cost base
1 All figures for FY20.
2 Proportion of women (permanent and maximum term) in leadership roles
across the Group, including the CEO, Group Executives, General Managers,
senior leaders with significant influence on business outcomes (direct reports
to General Managers and their direct reports), large (3+) team people leaders
three levels below General Manager, and Bank and Assistant Bank Managers.
3 Excludes commercial sponsorships.
4 Westpac Foundation is administered by Westpac Community Limited (ABN 34
086 862 795) as trustee for Westpac Community Trust (ABN 53 265 036 982).
The Westpac Community Trust is a Public Ancillary Fund, endorsed by the ATO as
a Deductible Gift Recipient. None of Westpac Foundation, Westpac Community
Trust Limited nor the Westpac Community Trust are pa
rt of Westpac Group.
Westpac provides administrative support, skilled volunteering, donations and
funding for operational costs of Westpac Foundation.
5 Jobs created through the Westpac Foundation job creation grants to social
enterprises are for the year ended 30 June 2020.
6 The majority (76%) of the tax paid comprises corporate income tax. Other taxes
paid include the Major Bank Levy, non-recoverable GST, payroll tax and fringe
benefits tax.
Addressing our
shortcomings by materially
improving our management
of risk and risk culture,
reducing customer pain
points, completing historical
customer remediation
program, and reducing
the complexity of our
technology.
Returning to our core
businesses of banking in
Australia and New Zealand,
including exiting some
businesses and international
locations. Rationalising
products and simplifying
processes to make it easier
for customers.
Improving performance by
building customer loyalty
and growth through service,
sharpening our focus on
returns, and resetting our
cost base. A strong balance
sheet and engaged
workforce form the
foundations of performance.
WHAT THIS
MEANS
OUR
PRIORITIES
WHAT IT
INVOLVES
CUSTOMERS EMPLOYEESSHAREHOLDERSTHE ECONOMY
COMMUNITIES
THE
ENVIRONMENT
SUPPLIERS
OUR VALUES –
WHAT YOU CAN
EXPECT
HELPFUL
ETHICAL
LEADING CHANGE
PERFORMING
SIMPLE
Passionate about
providing a great
customer experience
Trusted to do the
right thing
Determined to make it
better and be better
Accountable
to get it done
Inspired to keep it
simple and easy
Choosing suppliers responsibly
and paying them on time.
— Procured goods and services
worth
$6.5bn
with
$5.9m

in spend towards Indigenous-
owned businesses
— Delivering on our 2023 Human
Rights Action Plan and working
to eliminate risk of modern
slavery across our business
operations and supply chain
Supporting the transition
to a climate resilient future.
—
$10.1bn lending to climate
change solutions
— Climate Change Position
Statement and 2023 Action Plan
Support local communities.
— Over
$150m in community
investment
3

— 1m+ participants in
financial education
— Westpac Foundation
4
grants to
social enterprises helped create
719 jobs
5
for vulnerable Australians
Creating an environment
where the best people
want to work.
— Paid over
$5.0bn
to 40,225 employees
— 50% women
in leadership roles
2
— Recognised by the
Bloomberg Gender
Equality Index for the
4th consecutive year
Generating appropriate returns
over the long-term, including for
families who directly own almost
half of our total shares on issue.
— Our strong balance sheet
positions us to manage the
downturn and deliver
long-term shareholder value
— Earnings per share 63.7 cents,
or 72.5 cents (cash earning
basis); dividends 31 cents
per share
Delivering financial services
to consumers, businesses and
institutions in Australia and
New Zealand.
— Trusted with over $555bn
in customer deposits
— Supported over $693bn
in lending
Supporting the financial system
Banks play an important role in supporting
the economy through lending, deposits,
and the efficient flow of funds.
Supporting Australia and New Zealand
— Supported customers through COVID-19:
around 175,000 mortgage deferrals and
around
40,000 businesses with deferrals
— One of the first banks to enable access to
data as part of the 'Open Banking' initiative
— A major contributor of New Payments
Platform transactions
One of Australia's largest tax payers
— Westpac paid over
$4bn
6
globally in various
taxes during 2020, 99.7% of which were paid
in Australia and New Zealand (including the
Major Bank Levy).
— Our effective tax rate for 2020 was
46%
or 56% including the Major Bank Levy.
Perform
Simplify
Fix
Helping
Australians and
New Zealanders
succeed.
Our
purpose
Banking for Australian
and New Zealand
consumers, businesses
and institutional
customers.
Our
focus
OUR STRATEGYDELIVERING FOR OUR STAKEHOLDERS
1
Our strategy supports
our purpose, harnesses
our strengths and refocuses
where change is required.
We have sharpened the
markets and products in
which we operate,
returning to banking,
and our home markets of
Australia and New Zealand
leveraging our portfolio
of brands.
Our focus is on consumers,
businesses and institutional
– segments we know well.
Our three priorities
recognise our need to
address our shortcomings,
reshape the business to
concentrate on our core
businesses and markets
while lifting service and
creating a stronger
performance ethic. This
will help us to become a
simpler, stronger bank.
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15
WESTPAC GROUP 2020 ANNUAL REPORT
— Risk management
— Culture, including
risk culture
— Customer remediation
— IT complexity
— Reduce customer
pain points
— Exit non-core businesses
and consolidate
international locations
— Rationalise products
— Implement Line of
Business operating model
— Transform using digital
and data
— Customer service –
market leading
— Mortgage growth
— Enhance returns,
optimise capital
— Strong balance sheet
— Re-set cost base
1 All figures for FY20.
2 Proportion of women (permanent and maximum term) in leadership roles
across the Group, including the CEO, Group Executives, General Managers,
senior leaders with significant influence on business outcomes (direct reports
to General Managers and their direct reports), large (3+) team people leaders
three levels below General Manager, and Bank and Assistant Bank Managers.
3 Excludes commercial sponsorships.
4 Westpac Foundation is administered by Westpac Community Limited (ABN 34
086 862 795) as trustee for Westpac Community Trust (ABN 53 265 036 982).
The Westpac Community Trust is a Public Ancillary Fund, endorsed by the ATO as
a Deductible Gift Recipient. None of Westpac Foundation, Westpac Community
Trust Limited nor the Westpac Community Trust are part of Westpac Group.
Westpac provides administrative support, skilled volunteering, donations and
funding for operational costs of Westpac Foundation.
5 Jobs created
through the Westpac Foundation job creation grants to social
enterprises are for the year ended 30 June 2020.
6 The majority (76%) of the tax paid comprises corporate income tax. Other taxes
paid include the Major Bank Levy, non-recoverable GST, payroll tax and fringe
benefits tax.
Addressing our
shortcomings by materially
improving our management
of risk and risk culture,
reducing customer pain
points, completing historical
customer remediation
program, and reducing
the complexity of our
technology.
Returning to our core
businesses of banking in
Australia and New Zealand,
including exiting some
businesses and international
locations. Rationalising
products and simplifying
processes to make it easier
for customers.
Improving performance by
building customer loyalty
and growth through service,
sharpening our focus on
returns, and resetting our
cost base. A strong balance
sheet and engaged
workforce form the
foundations of performance.
WHAT THIS
MEANS
OUR
PRIORITIES
WHAT IT
INVOLVES
CUSTOMERS EMPLOYEESSHAREHOLDERSTHE ECONOMY
COMMUNITIES
THE
ENVIRONMENT
SUPPLIERS
OUR VALUES –
WHAT YOU CAN
EXPECT
HELPFUL
ETHICAL
LEADING CHANGE
PERFORMING
SIMPLE
Passionate about
providing a great
customer experience
Trusted to do the
right thing
Determined to make it
better and be better
Accountable
to get it done
Inspired to keep it
simple and easy
Choosing suppliers responsibly
and paying them on time.
— Procured goods and services
worth
$6.5bn
with
$5.9m

in spend towards Indigenous-
owned businesses
— Delivering on our 2023 Human
Rights Action Plan and working
to eliminate risk of modern
slavery across our business
operations and supply chain
Supporting the transition
to a climate resilient future.
—
$10.1bn lending to climate
change solutions
— Climate Change Position
Statement and 2023 Action Plan
Support local communities.
— Over
$150m in community
investment
3

— 1m+ participants in
financial education
— Westpac Foundation
4
grants to
social enterprises helped create
719 jobs
5
for vulnerable Australians
Creating an environment
where the best people
want to work.
— Paid over
$5.0bn
to 40,225 employees
— 50% women
in leadership roles
2
— Recognised by the
Bloomberg Gender
Equality Index for the
4th consecutive year
Generating appropriate returns
over the long-term, including for
families who directly own almost
half of our total shares on issue.
— Our strong balance sheet
positions us to manage the
downturn and deliver
long-term shareholder value
— Earnings per share 63.7 cents,
or 72.5 cents (cash earning
basis); dividends 31 cents
per share
Delivering financial services
to consumers, businesses and
institutions in Australia and
New Zealand.
— Trusted with over $555bn
in customer deposits
— Supported over $693bn
in lending
Supporting the financial system
Banks play an important role in supporting
the economy through lending, deposits,
and the efficient flow of funds.
Supporting Australia and New Zealand
— Supported customers through COVID-19:
around 175,000 mortgage deferrals and
around
40,000 businesses with deferrals
— One of the first banks to enable access to
data as part of the 'Open Banking' initiative
— A major contributor of New Payments
Platform transactions
One of Australia's largest tax payers
— Westpac paid over
$4bn
6
globally in various
taxes during 2020, 99.7% of which were paid
in Australia and New Zealand (including the
Major Bank Levy).
— Our effective tax rate for 2020 was
46%
or 56% including the Major Bank Levy.
Perform
Simplify
Fix
Helping
Australians and
New Zealanders
succeed.
Our
purpose
Banking for Australian
and New Zealand
consumers, businesses
and institutional
customers.
Our
focus
OUR STRATEGYDELIVERING FOR OUR STAKEHOLDERS
1
Our strategy supports
our purpose, harnesses
our strengths and refocuses
where change is required.
We have sharpened the
markets and products in
which we operate,
returning to banking,
and our home markets of
Australia and New Zealand
leveraging our portfolio
of brands.
Our focus is on consumers,
businesses and institutional
– segments we know well.
Our three priorities
recognise our need to
address our shortcomings,
reshape the business to
concentrate on our core
businesses and markets
while lifting service and
creating a stronger
performance ethic. This
will help us to become a
simpler, stronger bank.
1 STRATEGIC REVIEW
2 GROUP PERFORMANCE
3 FINANCIAL STATEMENTS
4 SHAREHOLDER INFORMATION
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— Risk management
— Culture, including
risk culture
— Customer remediation
— IT complexity
— Reduce customer
pain points
— Exit non-core businesses
and consolidate
international locations
— Rationalise products
— Implement Line of
Business operating model
— Transform using digital
and data
— Customer service –
market leading
— Mortgage growth
— Enhance returns,
optimise capital
— Strong balance sheet
— Re-set cost base
1 All figures for FY20.
2 Proportion of women (permanent and maximum term) in leadership roles
across the Group, including the CEO, Group Executives, General Managers,
senior leaders with significant influence on business outcomes (direct reports
to General Managers and their direct reports), large (3+) team people leaders
three levels below General Manager, and Bank and Assistant Bank Managers.
3 Excludes commercial sponsorships.
4 Westpac Foundation is administered by Westpac Community Limited (ABN 34
086 862 795) as trustee for Westpac Community Trust (ABN 53 265 036 982).
The Westpac Community Trust is a Public Ancillary Fund, endorsed by the ATO as
a Deductible Gift Recipient. None of Westpac Foundation, Westpac Community
Trust Limited nor the Westpac Community Trust are pa
rt of Westpac Group.
Westpac provides administrative support, skilled volunteering, donations and
funding for operational costs of Westpac Foundation.
5 Jobs created through the Westpac Foundation job creation grants to social
enterprises are for the year ended 30 June 2020.
6 The majority (76%) of the tax paid comprises corporate income tax. Other taxes
paid include the Major Bank Levy, non-recoverable GST, payroll tax and fringe
benefits tax.
Addressing our
shortcomings by materially
improving our management
of risk and risk culture,
reducing customer pain
points, completing historical
customer remediation
program, and reducing
the complexity of our
technology.
Returning to our core
businesses of banking in
Australia and New Zealand,
including exiting some
businesses and international
locations. Rationalising
products and simplifying
processes to make it easier
for customers.
Improving performance by
building customer loyalty
and growth through service,
sharpening our focus on
returns, and resetting our
cost base. A strong balance
sheet and engaged
workforce form the
foundations of performance.
WHAT THIS
MEANS
OUR
PRIORITIES
WHAT IT
INVOLVES
CUSTOMERS EMPLOYEESSHAREHOLDERSTHE ECONOMY
COMMUNITIES
THE
ENVIRONMENT
SUPPLIERS
OUR VALUES –
WHAT YOU CAN
EXPECT
HELPFUL
ETHICAL
LEADING CHANGE
PERFORMING
SIMPLE
Passionate about
providing a great
customer experience
Trusted to do the
right thing
Determined to make it
better and be better
Accountable
to get it done
Inspired to keep it
simple and easy
Choosing suppliers responsibly
and paying them on time.
— Procured goods and services
worth
$6.5bn with $5.9m
in spend towards Indigenous-
owned businesses
— Delivering on our 2023 Human
Rights Action Plan and working
to eliminate risk of modern
slavery across our business
operations and supply chain
Supporting the transition
to a climate resilient future.
—
$10.1bn lending to climate
change solutions
— Climate Change Position
Statement and 2023 Action Plan
Support local communities.
— Over
$150m in community
investment
3

— 1m+ participants in
financial education
— Westpac Foundation
4
grants to
social enterprises helped create
719 jobs
5
for vulnerable Australians
Creating an environment
where the best people
want to work.
— Paid over
$5.0bn

to 40,225 employees
— 50% women
in leadership roles
2
— Recognised by the
Bloomberg Gender
Equality Index for the
4th consecutive year
Generating appropriate returns
over the long-term, including for
families who directly own almost
half of our total shares on issue.
— Our strong balance sheet
positions us to manage the
downturn and deliver
long-term shareholder value
— Earnings per share 63.7 cents,
or 72.5 cents (cash earning
basis); dividends 31 cents
per share
Delivering financial services
to consumers, businesses and
institutions in Australia and
New Zealand.
— Trusted with over $555bn
in customer deposits
— Supported over $693bn
in lending
Supporting the financial system
Banks play an important role in supporting
the economy through lending, deposits,
and the efficient flow of funds.
Supporting Australia and New Zealand
— Supported customers through COVID-19:
around 175,000 mortgage deferrals and
around
40,000
businesses with deferrals
— One of the first banks to enable access to
data as part of the 'Open Banking' initiative
— A major contributor of New Payments
Platform transactions
One of Australia's largest tax payers
— Westpac paid over
$4bn
6
globally in various
taxes during 2020, 99.7% of which were paid
in Australia and New Zealand (including the
Major Bank Levy).
— Our effective tax rate for 2020 was
46%
or 56% including the Major Bank Levy.
Perform
Simplify
Fix
Helping
Australians and
New Zealanders
succeed.
Our
purpose
Banking for Australian
and New Zealand
consumers, businesses
and institutional
customers.
Our
focus
OUR STRATEGYDELIVERING FOR OUR STAKEHOLDERS
1
Our strategy supports
our purpose, harnesses
our strengths and refocuses
where change is required.
We have sharpened the
markets and products in
which we operate,
returning to banking,
and our home markets of
Australia and New Zealand
leveraging our portfolio
of brands.
Our focus is on consumers,
businesses and institutional
– segments we know well.
Our three priorities
recognise our need to
address our shortcomings,
reshape the business to
concentrate on our core
businesses and markets
while lifting service and
creating a stronger
performance ethic. This
will help us to become a
simpler, stronger bank.
16
WESTPAC GROUP 2020 ANNUAL REPORT
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— Risk management
— Culture, including
risk culture
— Customer remediation
— IT complexity
— Reduce customer
pain points
— Exit non-core businesses
and consolidate
international locations
— Rationalise products
— Implement Line of
Business operating model
— Transform using digital
and data
— Customer service –
market leading
— Mortgage growth
— Enhance returns,
optimise capital
— Strong balance sheet
— Re-set cost base
1 All figures for FY20.
2 Proportion of women (permanent and maximum term) in leadership roles
across the Group, including the CEO, Group Executives, General Managers,
senior leaders with significant influence on business outcomes (direct reports
to General Managers and their direct reports), large (3+) team people leaders
three levels below General Manager, and Bank and Assistant Bank Managers.
3 Excludes commercial sponsorships.
4 Westpac Foundation is administered by Westpac Community Limited (ABN 34
086 862 795) as trustee for Westpac Community Trust (ABN 53 265 036 982).
The Westpac Community Trust is a Public Ancillary Fund, endorsed by the ATO as
a Deductible Gift Recipient. None of Westpac Foundation, Westpac Community
Trust Limited nor the Westpac Community Trust are pa
rt of Westpac Group.
Westpac provides administrative support, skilled volunteering, donations and
funding for operational costs of Westpac Foundation.
5 Jobs created through the Westpac Foundation job creation grants to social
enterprises are for the year ended 30 June 2020.
6 The majority (76%) of the tax paid comprises corporate income tax. Other taxes
paid include the Major Bank Levy, non-recoverable GST, payroll tax and fringe
benefits tax.
Addressing our
shortcomings by materially
improving our management
of risk and risk culture,
reducing customer pain
points, completing historical
customer remediation
program, and reducing
the complexity of our
technology.
Returning to our core
businesses of banking in
Australia and New Zealand,
including exiting some
businesses and international
locations. Rationalising
products and simplifying
processes to make it easier
for customers.
Improving performance by
building customer loyalty
and growth through service,
sharpening our focus on
returns, and resetting our
cost base. A strong balance
sheet and engaged
workforce form the
foundations of performance.
WHAT THIS
MEANS
OUR
PRIORITIES
WHAT IT
INVOLVES
CUSTOMERS EMPLOYEESSHAREHOLDERSTHE ECONOMY
COMMUNITIES
THE
ENVIRONMENT
SUPPLIERS
OUR VALUES –
WHAT YOU CAN
EXPECT
HELPFUL
ETHICAL
LEADING CHANGE
PERFORMING
SIMPLE
Passionate about
providing a great
customer experience
Trusted to do the
right thing
Determined to make it
better and be better
Accountable
to get it done
Inspired to keep it
simple and easy
Choosing suppliers responsibly
and paying them on time.
— Procured goods and services
worth
$6.5bn with $5.9m
in spend towards Indigenous-
owned businesses
— Delivering on our 2023 Human
Rights Action Plan and working
to eliminate risk of modern
slavery across our business
operations and supply chain
Supporting the transition
to a climate resilient future.
—
$10.1bn lending to climate
change solutions
— Climate Change Position
Statement and 2023 Action Plan
Support local communities.
— Over
$150m in community
investment
3

— 1m+ participants in
financial education
— Westpac Foundation
4
grants to
social enterprises helped create
719 jobs
5
for vulnerable Australians
Creating an environment
where the best people
want to work.
— Paid over
$5.0bn

to 40,225 employees
— 50% women
in leadership roles
2
— Recognised by the
Bloomberg Gender
Equality Index for the
4th consecutive year
Generating appropriate returns
over the long-term, including for
families who directly own almost
half of our total shares on issue.
— Our strong balance sheet
positions us to manage the
downturn and deliver
long-term shareholder value
— Earnings per share 63.7 cents,
or 72.5 cents (cash earning
basis); dividends 31 cents
per share
Delivering financial services
to consumers, businesses and
institutions in Australia and
New Zealand.
— Trusted with over $555bn
in customer deposits
— Supported over $693bn
in lending
Supporting the financial system
Banks play an important role in supporting
the economy through lending, deposits,
and the efficient flow of funds.
Supporting Australia and New Zealand
— Supported customers through COVID-19:
around 175,000 mortgage deferrals and
around
40,000
businesses with deferrals
— One of the first banks to enable access to
data as part of the 'Open Banking' initiative
— A major contributor of New Payments
Platform transactions
One of Australia's largest tax payers
— Westpac paid over
$4bn
6
globally in various
taxes during 2020, 99.7% of which were paid
in Australia and New Zealand (including the
Major Bank Levy).
— Our effective tax rate for 2020 was
46%
or 56% including the Major Bank Levy.
Perform
Simplify
Fix
Helping
Australians and
New Zealanders
succeed.
Our
purpose
Banking for Australian
and New Zealand
consumers, businesses
and institutional
customers.
Our
focus
OUR STRATEGYDELIVERING FOR OUR STAKEHOLDERS
1
Our strategy supports
our purpose, harnesses
our strengths and refocuses
where change is required.
We have sharpened the
markets and products in
which we operate,
returning to banking,
and our home markets of
Australia and New Zealand
leveraging our portfolio
of brands.
Our focus is on consumers,
businesses and institutional
– segments we know well.
Our three priorities
recognise our need to
address our shortcomings,
reshape the business to
concentrate on our core
businesses and markets
while lifting service and
creating a stronger
performance ethic. This
will help us to become a
simpler, stronger bank.
17
WESTPAC GROUP 2020 ANNUAL REPORT
1 STRATEGIC REVIEW
2 GROUP PERFORMANCE
3 FINANCIAL STATEMENTS
4 SHAREHOLDER INFORMATION
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Fix
Addressing our shortcomings
by materially improving our
management of risk and risk
culture, reducing customer pain
points, completing our historical
customer remediation program
and reducing the complexity of
our technology systems.
James Grant,
Westpac Group
Financial Controller
18
WESTPAC GROUP 2020 ANNUAL REPORT
OUR PRIORITIES
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19
WESTPAC GROUP 2020 ANNUAL REPORT
In the past, Westpac’s management of
risk has been considered a strength,
particularly in our management of capital,
funding, liquidity, and credit risk.
While we retain a strong balance sheet,
several inquiries, including the Royal
Commission into Misconduct in the
Banking, Superannuation and Financial
Services Industry, the AUSTRAC
proceedings and our own assessments have
highlighted weaknesses in our management
of risk; particularly non-financial risk.
Our weaknesses were initially highlighted in
our Culture Governance and Accountability
self-assessment (CGA self-assessment)
completed in 2018. Our CGA self-
assessment included 45 recommendations
and a program to respond commenced
soon after. However, following the
AUSTRAC proceedings, APRA asked
Westpac to reassess these plans to ensure
that they remained ‘fit for purpose’.
We released our reassessment (CGA
reassessment) on 17 July 2020, reinforcing
the initial findings but also identifying that
our risk culture was reactive and immature
and that the three lines of defence
model (model defining risk management
responsibilities) was not well understood.
It was also clear that we had become too
complex and where issues were uncovered
we were slow to act.
The Group has been exposed to compliance
failures, regulatory breaches, customer
remediation and legal actions. See pages
22 to 23 for a detailed account of the
AUSTRAC matters.
We have accepted our shortcomings and
are seeking to materially lift our standards
and fix the issues identified.
The first step has been to refine our
operating structure. A new function for
Financial Crime, Conduct and Compliance
has been created to increase the focus
and resources devoted to this important
area. The Group Executive for this division
reports directly to the CEO. We have also
enhanced our risk management framework
(for identifying, assessing and managing
risk), and increased our risk management
resources.
Following the CGA reassessment we
established the Customer Outcomes and
Risk Excellence (CORE) program. The
program is designed to improve non-
financial risk oversight (including from our
initial CGA self-assessment), lift risk culture,
and strengthen our risk management
framework. The program has 14 streams
of work under three categories:
1. Direction and tone set by Board and
Group Executive – initiatives that set
clear tone and direction from leadership
to promote a proactive risk culture.
2. Clear risk boundaries for decision-
making – simplifying risk management
frameworks and increasing capability
and resources in the Risk function.
3. Accountable and empowered people –
providing additional training and support
for employees to help them understand
they all have a role in managing risk
and driving clearer accountability and
decision-making.
Progress over the year includes
400+
new Risk, Compliance and
Financial Crime employees
We have accepted our
shortcomings and have
commenced a number
of programs that seek
to materially lift our
standards and fix the
issues identified.”
Enhanced risk
management
framework
A new function for
Financial Crime,
Compliance &
Conduct was created
CORE program
underway
1 STRATEGIC REVIEW
2 GROUP PERFORMANCE
3 FINANCIAL STATEMENTS
4 SHAREHOLDER INFORMATION
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20
WESTPAC GROUP 2020 ANNUAL REPORT
Strengthening risk culture
The strength of risk management in a
company is underpinned by its risk culture.
A strong risk culture is an environment
where everyone can identify the risks they
are responsible for, are alert to changing
or new risks and pro-actively address risks
when they emerge. It also includes being
clear on accountability and feeling safe
to speak up.
Strengthening risk culture is a focus for
the Group and a key element of our CORE
program. Our new Lines of Business
operating model is establishing end-to-
end responsibility for customer outcomes
and improving our risk culture by clarifying
accountabilities. In addition, our 3LOD
model is supporting these structural
changes by lifting risk capability and
bench-strength across the Group.
Other changes to improve risk culture
include:
—New risk culture framework to better
define risk roles and responsibilities;
—Launch of an online tool to assess
a division’s current risk culture and
compare to our target, helping us identify
and prioritise areas for improvement;
—New Risk Fundamentals training program
being rolled out to all employees – to
ensure everyone understands the risk
culture we are seeking to develop;
—Risk culture dashboard to consistently
measure our progress; and
—Updating our Code of Conduct
reinforcing the importance of
speaking up.
Remediating customers
We have continued to review our products,
processes and policies where we have not
got it right for customers. Where problems
have been identified, we have committed
to fix them and refund customers. This task
is significant as it often involves individual
customers over many years. The Group
incurred an after-tax cost of $440 million
for provisions for estimated customer
refunds and payments, and litigation and
associated costs in FY2020. Major items
included:
—Certain business customers who were
provided with business loans where
they should have been provided loans
covered by the National Consumer
Credit Protection Act and the National
Credit Code;
—Compensation to platform customers
who were not advised of certain
corporate actions, and may have
been able to benefit; and
—Where certain wealth fees were
inadequately disclosed.

2m+
customers received over
$280 million in refunds in FY20
A strong risk culture includes
being clear on accountability
and creating an environment
where it is safe to speak up.”
Updated Code of
Conduct rolled out
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21
WESTPAC GROUP 2020 ANNUAL REPORT
TRANSFORMING OUR COMPLAINTS PROCESS
This year we launched ‘Resolve’, a new centralised customer complaints
management platform that brings together nine systems into one and makes
it easier for our people to log and resolve complaints.
In 2018, we changed the way we think about complaints to improve the way
we identify, manage and resolve them. However, our multiple legacy systems
were holding us back. Resolve has changed that by creating a single platform
and an intuitive dashboard for bankers.
“This has been a huge opportunity to significantly improve the customer
experience”, says Lisa Pogonoski, Westpac’s General Manager of Customer
Solutions. “Having our people work on one system provides a common view
of complaints and a single source of data.”
From 2021, customers will have direct access to the system, enabling them to
log and track the progress of their complaint. Over time, we will apply artificial
intelligence to help bankers and customers navigate through the complaints
process to reach a guided resolution that will be much faster.
“Resolve supports the fundamental change to how we think about complaints,”
says Lisa. “Its simple and comprehensive functionality allows employees to
own complaints and supports them to get the best outcome for customers.”
This year we have halved the time it takes to fix long dated complaints and
with Resolve we are planning for another step down.
CASE
STUDY
Reducing customer pain points
In 2018, we centralised the management
of complaints to improve how they are
identified, logged and resolved. This
included a shift in culture to see complaints
as an opportunity to learn and do better.
This heightened focus has contributed to
an increase in the number of complaints we
capture, while making significant progress
on improving how they are managed. In
FY20, we received 169,674 complaints, a
145% increase on FY19. In addition, we have:
—Reduced average time to resolution
for complaints to 6.5 days, from 9 days
in FY19;
—Reduced the number of long
dated complaints (45+ days old)
from 288 to 21 at 30 September 2020;
and
—Solved 63% of complaints on the same
day in September 2020 compared to
56% in September 2019.
Importantly, insights from better complaint
management have led to a number of
process improvements – reducing pain
points for customers.
Redoubling our efforts to remove
IT complexity
We started a program to reduce complexity
some years ago, which prioritised the
upgrade of our technology infrastructure
while commencing the development of our
customer service hub (which will become
the consumer bank’s central product
on-boarding platform). At the same time,
we have sought to ensure our customer
interface has kept pace with customer
demands. This program has successfully
strengthened the stability, speed and
security of our systems and helped ensure
the bank remained open for business
through the COVID-19 pandemic and
support customers via digital channels.
Having upgraded much of our technology
infrastructure, in 2020 we developed a
detailed technology roadmap for the next
phase of our transformation to build a
single, multi-brand operating environment.
That roadmap extends for over multiple
years, recognising that technology will
change and we must be flexible. Significant
work is still required but our development
plan is clear.
93%
reduction of long
dated complaints
74%
Australian Banking
1

complaints resolved
in 5 days compared
to 68% in FY19
1 Australian Banking includes Consumer and Business division products.
1 STRATEGIC REVIEW
2 GROUP PERFORMANCE
3 FINANCIAL STATEMENTS
4 SHAREHOLDER INFORMATION
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22
WESTPAC GROUP 2020 ANNUAL REPORT
AUSTRAC PROCEEDINGS EXPLAINED
AUSTRAC proceedings
overview
The AUSTRAC proceedings have
been discussed in various parts of our
Annual Report. With this overview we
aim to provide a snapshot of what
happened, the issues highlighted and
what we’re doing to fix them.
The issues highlighted by AUSTRAC in their
Statement of Claim in November 2019 deeply
disappointed shareholders, customers, and the
community, as well as Westpac’s employees.
The proceedings have become a catalyst for change
at Westpac. We have acknowledged our failings
and are deeply sorry for what occurred. We have
investigated the issues and are determined to fix
our shortcomings. A broader change program is
underway to address the root causes.
Following the AUSTRAC Statement of Claim and
recognising the seriousness of the issues:
—The former CEO stepped down and the Board
determined to forfeit all of his unvested equity;
—The former Chairman brought forward his
retirement; and
—A former Non-executive Director and Chairman of
the Board Risk & Compliance Committee did not
seek re-election.
On 24 September 2020, we reached an agreement
with AUSTRAC to resolve the proceedings, subject
to Court approval. The resolution involved the filing
of a Statement of Agreed Facts and Admissions
(SAFA) with the Court, which on 21 October 2020
approved the payment of a civil penalty of $1.3 billion
for the admitted contraventions of the Anti-Money
Laundering and Counter-Terrorism Financing Act
2006 (Cth) (AML/CTF Act).
What happened
On 20 November 2019, AUSTRAC commenced
civil proceedings in the Federal Court of Australia
against Westpac in relation to alleged contraventions
of the AML/CTF Act. The SAFA filed with the
Court is available on our website. In summary, it
acknowledged that we had not:
—Maintained an AML/CTF Program that
fully complied with the requirements of the
AML/CTF Rules;
—Reported over 19.5 million International
Funds Transfer Instructions (IFTIs) on time;
—Included all required information about the
payer in relation to over 76,000 IFTIs that
were reported on time;
—Passed on all relevant information in relation
to approximately 10,500 IFTIs;
—Kept appropriate records relating to over
3.5 million IFTIs;
—Appropriately assessed the risks posed by
our correspondent banks; and
—Appropriately monitored a number of customers’
transactions for child exploitation risk.
While we failed in our obligations, the SAFA
acknowledged that the contraventions were not
the result of any deliberate intention to breach the
AML/CTF Act.
We carried out a review of these matters to be clear
on what had occurred, understand the root cause,
and determine accountability. We also commissioned
a review by an external Advisory Panel into Board
Governance of AML/CTF obligations. The outcomes
of these reviews, including the Advisory Panel report,
were released in June 2020 and are also available on
our website.
The main findings of the reviews were that some
areas of AML/CTF risk were not sufficiently
understood; there were unclear end-to-end
accountabilities for managing AML/CTF compliance;
and there was a lack of sufficient AML/CTF expertise
and resourcing.
The Advisory Panel found that the way the Board
organised its general governance responsibilities
was mainstream and fit for purpose. They noted that,
with the benefit of hindsight, and noting the Board’s
escalating focus in the area, Directors could have
recognised earlier the systemic nature of some of the
financial crime issues Westpac was facing. They also
found that reporting to the Board on financial crime
matters was at times unintentionally incomplete
and inaccurate.
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23
WESTPAC GROUP 2020 ANNUAL REPORT
$24m
committed to two
significant partnerships
to reduce the human
impact of financial crime
Established a Board Legal,
Regulatory & Compliance
Committee
Monitoring and assessing transactions
One of the most serious allegations made by
AUSTRAC related to the way we monitored
transactions for potential child exploitation risks.
In summary, Westpac is required to monitor
transactions and submit suspicious matter reports
to AUSTRAC if it identifies that certain patterns of
transactions are indicative of child exploitation.
While we had monitoring in place, we should
have implemented more robust monitoring of
transactions for this risk earlier than we did.
Since the AUSTRAC proceedings, we have
further updated our monitoring, reassessed prior
transactions and submitted additional suspicious
matter reports to AUSTRAC.
Taking accountability
A range of remuneration consequences were
applied to 38 individuals, totalling over $20 million
1
.
This included cancelling 2020 short-term variable
reward (STVR) for the Group Executive team and,
in some instances, adjusting prior year awards that
had yet to vest. Consequences were not able to be
applied to some individuals as they had already left
the organisation and had no deferred remuneration
outstanding.
Fixing our mistakes
Within days of AUSTRAC’s allegations, we released
a Response Plan which detailed our areas of focus.
Immediate fixes: This included closing the two
products that were the main source of our failings
and reporting a small number of outstanding IFTIs
to AUSTRAC.
Lifting anti-money laundering and risk management
standards: We commenced a program to elevate
the importance of financial crime across the Group,
with more resources, increased seniority, and
greater oversight. We also updated our transaction
monitoring rules and enhanced oversight of the
processes.
Developments include:
—Establishing a Board Legal, Regulatory &
Compliance Committee;
—Elevating the Financial Crime, Compliance and
Conduct function, with the Group Executive
reporting directly to the CEO;
—Increasing risk resources, including adding over
200 additional employees to our financial crime
team; and
—Strengthening the management of financial crime
risks including our policies, data feeding systems,
processes and controls.
In addition, our broader plans to improve risk
management across the organisation will complement
the improved capability we are building in financial
crime, including enhancing our risk culture.
Safer Children, Safer Communities
We have also established a Safer Children, Safer
Communities work program to help reduce the human
impact of financial crime with a particular focus on
child safeguarding, guided by experts in human rights,
child safety, online safety and law enforcement. This
year, we established multi-year funding partnerships
with International Justice Mission and Save the Children
(Australia), and launched a new Impact Grants program.
For more about this, see page 40.
The AUSTRAC proceedings
have become a catalyst for
change at Westpac.”
1 Refer to explanation in Remuneration Report in the Directors’ Report.
1 STRATEGIC REVIEW
2 GROUP PERFORMANCE
3 FINANCIAL STATEMENTS
4 SHAREHOLDER INFORMATION
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24
WESTPAC GROUP 2020 ANNUAL REPORT
Simplify
Returning to our core businesses
of banking in Australia and New
Zealand, including exiting some
businesses and international
locations. Rationalising products
and simplifying processes to make
it easier for customers to bank
with us.
24
WESTPAC GROUP 2020 ANNUAL REPORT
OUR PRIORITIES
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25
WESTPAC GROUP 2020 ANNUAL REPORT
We are clear on the
locations, markets and
businesses in which we
will operate.”
Becoming a simpler bank
Complexity has been the source of many
of our issues. We expanded into areas
where we did not have a competitive
advantage or scale to compete effectively
and we lost traction in some of our core
businesses.
At the same time, our operating model
became too diffused. That is, decision
making was unclear, and we tended to
manage via committee and businesses
were not run end-to-end. This inclusive
management approach, while collaborative,
tended to dilute accountability and slow
decision making.
Fundamental change is underway, and we
are now clear on the locations, markets
and businesses in which we will operate.
Changes include:
—Setting up the Specialist Businesses
division to hold the businesses which we
do not view ourselves as the long-term
owners of;
—Consolidating our international
operations to focus more on the areas
where we can best support customers.
As a result, we will exit operations in
Beijing, Shanghai, Hong Kong, Mumbai
and Jakarta; and
—Moving to a Lines of Business operating
model. Under this model, each line (a
major customer offering) has end-to-
end responsibility for that business.
For example, in our Mortgages Line
of Business a Managing Director is
responsible for the entire mortgage
process from origination, pricing, credit
assessment and service.
1 Cash earnings excluding notable items.
Specialist Businesses
revenue contribution
to Group
1
8%
NEW OPERATING MODEL – LINES OF BUSINESS
CONSUMER
Customer
engagement
Mortgages
Everyday Banking
Consumer Finance
BUSINESS
Customer
engagement
Business Lending
Cash Management
Private Wealth
WIB
Customer
engagement
Corporate and Institutional
Banking
Financial Markets
Global Transactional Services
SPECIALIST BUSINESSES
Customer
engagement
Insurance
Superannuation, Platforms
and Investments
Auto and Vendor Finance
Westpac Pacific
1 STRATEGIC REVIEW
2 GROUP PERFORMANCE
3 FINANCIAL STATEMENTS
4 SHAREHOLDER INFORMATION
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26
WESTPAC GROUP 2020 ANNUAL REPORT
To improve customer service, we
must simplify the way we operate;
this includes streamlining our
products and digitising processes.”
Simplifying products for customers
To improve customer service, we must
simplify the way we operate; this includes
streamlining our products and digitising
processes.
One such initiative is the migration of
customers to newer and more flexible
products which will ultimately allow us
to close a raft of legacy products that
are no longer for sale.
Other initiatives contributing to simpler
and better customer experience in
FY20 include:
Consumer
—Implemented over 50 changes to
our mortgage process to streamline
applications; and
—Removed 40 fees (out of ~200)
from over 40 systems – 20 more
will go in FY21.
Business
—Migrated around 14,000 St.George
Everyday Banking accounts and
closed five products;
—Removed 11 fees across Westpac,
St.George, Bank of Melbourne
and Bank SA products; and
—Simplified our Merchant offering,
including the closure of 29 legacy
products.
WIB
—Simplifying our Global Transaction Service
product platform and refocusing on core
capabilities; and
—Reducing the number of correspondent
banks we transact with.
Westpac New Zealand
—Removed eight consumer products
including four discontinued home
loan products; and
—Migrated 12,000 credit card customers
from three discontinued products.
Wealth and insurance
—Continued to migrate customers and funds
from BT Wrap to the more modern and
flexible BT Panorama platform (transition
to be completed in FY21); and
—Moved 16 super products into our new
BT Super product (to be completed
by the end of 2021).
Inspired to keep it
simple and easy
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27
WESTPAC GROUP 2020 ANNUAL REPORT
NEW MOBILE APP BRINGS SIMPLICITY
Westpac’s new app launched to 240,000 customers at the end of the year. It
will be available to all customers who use iPhones in early 2021 and an Android
version is expected to be rolled out by the end of that year. The app simplifies
what customers do most and makes everything else easier. Developed in
collaboration with Apple and Google, customers can initiate payments without
opening the app via Apple’s intelligent assistant Siri. Other features include drag
and drop transfers, finding things quicker with ‘smart search’, start Apple Pay
setup with a single tap, establishing a ‘card hub’ that keeps track of plastic and
personalising the app with wallpapers. More features will be rolled out in 2021.
“Our Digital and GroupTech teams have listened to customers and reimagined
our mobile banking experience. Customers told us they wanted simpler and
faster banking. We’ve simplified the navigation and payments are faster to
friends and family,” says Martine Jager, Chief Digital & Marketing Officer. “This
is a significant leap for Westpac and sets a solid foundation for us to build on
in the future with more features and experiences.”
CASE
STUDY
We are using digital
to streamline and
automate processes
Transforming digital
We are modernising and simplifying our
technology, using digital to streamline
and automate processes and lift our data
capabilities to support risk management
and a better customer experience.
The events of this year have emphasised
the need to operate using online channels.
Our people have responded to a huge
increase in demand for online services.
Developments this year have included:
—Opening new accounts and providing
card access to elderly customers to avoid
having to enter a branch;
—Developing online forms to manage
customer demand for payment deferrals;
—Expanding the use of the new payments
platform for St.George customers;
—Introducing a COVID-19 chatbot to better
assist Australian customers with queries;
—Being one of the first banks to enable
access to data as part of the Open
Banking initiative;
—Launching (with other Australian banks)
a new blockchain technology to digitise
the bank guarantee process;
—Expanding WIB’s digital banking
platform – to make it easier for
corporates to manage their balance
sheets; and
—Creating new digital processes in
New Zealand including digital credit
submissions, complaints capture, and
online forms for COVID-19 related
assistance.
Central to our digital transformation has
been the need to improve data quality and
data management. We have established a
data quality and management assessment
dashboard, a series of metrics assessing
data quality and our data infrastructure. All
the metrics improved over the year due to:
—Introducing more central oversight to
data quality and management;
—Implementing data quality measurement
and monitoring across the Group; and
—Implementing a new data certification
process for new and changed processes.
1 STRATEGIC REVIEW
2 GROUP PERFORMANCE
3 FINANCIAL STATEMENTS
4 SHAREHOLDER INFORMATION
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28
WESTPAC GROUP 2020 ANNUAL REPORT
Perform
Improving performance by building
customer loyalty and growth
through service, sharpening our
focus on returns, and resetting our
cost base. A strong balance sheet
and engaged workforce form the
foundation of performance.
Holly Rogers,
Westpac Personal
Banking Advisor
28
WESTPAC GROUP 2020 ANNUAL REPORT
OUR PRIORITIES
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29
WESTPAC GROUP 2020 ANNUAL REPORT
DIGITAL ENHANCEMENTS DURING
COVID-19
The impact of COVID-19 was both
significant and rapid. Thousands of
customers needed urgent help when they
had to stop work or close their business.
The rise in requests led to increased
call wait times which was frustrating for
customers.
In response, we created a digital solution
for customers to apply for an immediate
repayment deferral online or via mobile,
giving instant cash flow relief. It also
allowed customers to exit or extend their
support package.
This new solution helped many Australians
find peace of mind in a time of immense
stress. It also freed up the time of our
people to support those customers with
more complex solutions.
“I’m incredibly proud of the way our people
rallied to help customers in need – it’s a
great example of how digital can simplify
and instantly make it easier for customers,”
says Dhiren Kulkarni – who leads our
Consumer Digital team.
Helping when it matters – a core
commitment
Helping Australians and New Zealanders
succeed has been behind our success for
over 200 years.
However, this year’s challenges and
uncertainties have tested us. While we
retained our number one service ranking in
Business Banking
1,2
against the other major
Australian banks, we remained at number
three in Consumer
3
. In New Zealand we are
fourth of the major banks in service but we
have been closing the gap this year.
Our people have been behind our success
in Business banking, responding to the
environment and working tirelessly to
support customers and businesses through
the ups and downs of the year.
Australian Consumer NPS has improved
over the year but our rank has not
increased. In part, this was because we
did not adequately keep up with increased
demands for assistance in our Contact
Centres. In addition, some of our offshore
partners were disrupted by lockdowns,
which impacted service in mortgages.
Supporting customers when it matters
most is one of our core commitments
and strengths. Our people stepped up to
the extraordinary events of the year, by
ensuring we remained open for business,
by supporting customers in their transition
to contactless banking and by helping
customers establish loan repayment
deferral arrangements.
We are focused on simplifying and
streamlining our operations so our people
can get on and do what they do best.
We are focused on
simplifying and streamlining
our operations so our
people can get on and do
what they do best, serve
customers.”
1 Net Promoter Score measures the net likelihood of recommendation to others
of the customer’s main financial institution for retail or business banking.
Net Promoter ScoreSMis a trademark of Bain & Co Inc., SatmetrixSystems,
Inc., and Mr Frederick Reichheld. Using a 11 point numerical scale where
10 is ‘Extremely likely’ and 0 is ‘Extremely unlikely’, Net Promoter Score
is calculated by subtracting the percentage of Detractors (0-6) from the
percentage of Promoters (9-10).
2 Source: DBM Consultants Business Atlas, March – August 2020, 6MMA.
MFI customers, all businesses.
3 Source: DBM Consultants Consumer Atlas, March – August 2020, 6MMA.
MFI Westpac Group customers.
#1
Business Banking
NPS ranking
2

#3
Consumer NPS
ranking
3

1 STRATEGIC REVIEW
2 GROUP PERFORMANCE
3 FINANCIAL STATEMENTS
4 SHAREHOLDER INFORMATION
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30
WESTPAC GROUP 2020 ANNUAL REPORT
Helping customers
through COVID-19
and natural disasters
COVID-19 has changed many aspects of
life, including how we bank. Cities have
at times been deserted, the use of cash
has dramatically fallen, and demands
on our contact centres have escalated.
Vulnerable customers, many of whom
prefer face-to-face banking, have not
been able to visit branches. In short,
many customers are doing it tough.
We were the first major bank to offer
customers a COVID-19 relief package on
11 February 2020 and responded quickly
by redirecting resources to where they
were needed most; closing some branches,
and helping customers adopt to new ways
of banking.
We worked hard to help those in financial
difficulty by providing repayment deferrals
and bridging facilities for businesses ahead
of government support payments. Many
customers still need support and we will
continue to work constructively with them
to determine the most appropriate options.
Workplace COVID-19 hygiene and safety
measures in place, including temperature
checking stations
~40k
deferrals for
businesses
~175k
mortgage deferral
packages
1.5k
new employees
recruited to our
customer service teams
2
>90%
of branch network
remained open
1
~220k
early release
superannuation
applications paid
SUPPORTING CUSTOMERS
PROVIDING CRITICAL BANKING SERVICES AND INFRASTRUCTURE
Updated policies and standards to help protect
the physical and mental health of our people
~22k
(85%) employees
working from home
1
1.3m
masks provided
to employees
1m
+
hours of audio
and video calls
SUPPORTING EMPLOYEES TO WORK EFFECTIVELY
Maintained focus on
customers and communities
affected by bushfires
Supported local community
organisations and social enterprises
through Westpac Foundation grants
and other charitable donations
STANDING BEHIND THE ECONOMY AND COMMUNITIES
1 At the peak of the COVID-19 restrictions across Australia.
2 March to September 2020.
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WESTPAC GROUP 2020 ANNUAL REPORT
HELPING THROUGH BUSHFIRES
On New Year’s Eve in 2019, bushfires ravaged the NSW South
Coast and swept through the seaside village of Lake Conjola.
Many properties were taken, including the home of St.George
customers, Lyn and her 92-year-old mother, Sharon.
“We lost everything. All that was left of our family home of
25 years was a pile of ash and rubble. Our photos, our memories
– everything,” says Lyn.
Lyn has been a St.George customer since 1980, when she
bought her first home. Since then, Lyn and Sharon have kept
close ties with their local Ulladulla branch. As part of their
weekly trip to town, they stop in to see the team and branch
manager, Lloyd Pigram.
When Lloyd heard the news, he got straight in touch, and
arranged a $2,000 emergency grant to help the family
back onto their feet.
“Lloyd has been a great support, and the grant really helped
us through the early stages,” says Lyn.
Lyn and Sharon’s property has been cleared and they are
waiting for planning approval before building starts on their
new home.
“Like a number of other customers, Lyn and Sharon have been
through so much,” says Lloyd. “It’s been humbling to witness
their resilience. They deserve every second of happiness their
new home brings.”
Recovering from natural disasters
Over the year, many Australians faced the
impacts of prolonged drought as well as
devastating bushfires and storms. Large
areas of bushland, numerous farms, and
townships were severely affected. In some
cases, communities were evacuated and
homes and businesses destroyed.
We helped customers back onto their
feet through a range of customer support
packages, including:
Drought – extended our support to
customers under a new drought assistance
package; and a $100 million fund to provide
carry-on finance loans of up to $1 million
to existing eligible Westpac agribusiness
customers at a heavily discounted variable
interest rate.
Bushfires – provided $3.8 million in
emergency cash grants to customers; and
around 1,980 disaster relief packages.
We also received 603 home and contents
insurance claims, with total claims from
bushfires currently estimated at over
$37 million.
In addition, we donated over $1.4 million to
community groups and charities, including
Financial Counselling Australia, State-based
volunteer fire services and the Foundation
for Rural and Regional Renewal.
For more on our bushfire response, see our
Sustainability Performance section on page 37.
Many Australians faced
the impacts of prolonged
drought, devastating
bushfires and storms
over the year. We helped
customers through a range
of support packages.”
$2,000
emergency grant provided by St.George
Bank to help get back on their feet
CASE
STUDY
Lloyd Pigram, St.George
Ulladulla branch manager,
with customer, Lyn Grey, at
her Lake Conjola property
1 STRATEGIC REVIEW
2 GROUP PERFORMANCE
3 FINANCIAL STATEMENTS
4 SHAREHOLDER INFORMATION
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32
WESTPAC GROUP 2020 ANNUAL REPORT
A motivated workforce with a
strong performance ethic
Great service is underpinned by a highly
motivated workforce who are capable,
engaged and driven by a set of clear values.
In responding to the challenges of the year,
our people have lived our values of being
helpful and ethical, caring for customers
in difficulty.
However, some elements of our culture
have held us back, particularly in the area
of risk. This was highlighted in our 2018
Culture, Governance and Accountability
(CGA) self-assessment.
This is now changing. We have commenced
a culture program that will build on our
strengths of helping when it matters, care
and empathy. The program focuses on
creating a simpler and stronger business
with high-performing teams where
everyone knows their role in delivering for
customers, and is able to constructively
challenge and raise issues early. At the
same time, it will help us to turn around
the aspects of our culture that are holding
us back, such as complexity, slow decision
making and diluted accountability.
Our new purpose and simplified values
and behaviours also support this cultural
change.
Despite the challenges faced over the year,
employee loyalty and support has been
little changed. Employee commitment was
73% at September 2020, up from 72% at
the end of FY19.
A clear purpose
In 2020, our people
developed a new
purpose, which has
been supported by a
refreshed set of values
and behaviours.
Our five values – helpful,
ethical, leading change,
performing, simple (or
HELPS) – guide the way and
help us achieve our purpose
‘Helping Australians and
New Zealanders succeed’.
A set of behaviours brings
these values to life, making
it clear for employees what
is expected of them.
Helping Australians and
New Zealanders succeed
HELPFUL
ETHICAL
LEADING CHANGE
PERFORMING
SIMPLE
Passionate about
providing a great
customer experience
Trusted to do the
right thing
Determined to make it
better and be better
Accountable
to get it done
Inspired to keep it
simple and easy
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33
WESTPAC GROUP 2020 ANNUAL REPORT
SHIFTING FOCUS DURING COVID-19
Manly Spirits founders, Vanessa and David Whittaker (pictured), made
some fast decisions this year to keep their business operating. With a
tasting bar in Brookvale in Sydney’s northern beaches, the craft spirits
distillery has built a strong local following. Its spirits are also sold across
Australia through independent and large retailers with international exports
growing rapidly.
“Our customers love our products and that’s reflected in our rate of growth
over the last five years,” says David. “Before COVID-19 hit, we had just taken
on more bar staff and extended our business loan to expand the production
of dark spirits.”
With the pandemic came social distancing and bar closures and the
business shifted its focus to retail outlets. It also diverted resources to the
manufacture of sanitiser, supplying hospitals and the Rural Fire Service,
among others.
“Our capabilities in manufacturing and alcohol along with Westpac’s
financial support allowed us to pivot quickly,” says David. “This kept
our people employed and revenue flowing while meeting an important
community need.”
CASE
STUDY
Strong balance sheet and
improved capital efficiency
Maintaining the strength of our balance
sheet while improving capital efficiency
is critical in this environment. To maintain
capital strength, we had to make some
difficult decisions over the year including
raising capital in November 2019, and not
paying the 2020 interim dividend.
We recognise that many shareholders
rely on dividends, especially self-funded
retirees. However, given the environment
and circumstances at the time, this decision
was considered to be in the best long-term
interests of Westpac and of shareholders.
Our capital position is strong and our CET1
capital ratio was 11.13% at 30 September
2020. Funding and liquidity also remain
robust, and well above APRA’s minimums.
This solid foundation allows us to continue
supporting customers and the economy
through this challenging time.
Improved capital efficiency will also emerge
as we exit businesses in our Specialist
Businesses division. In addition to not being
core to our future, these activities typically
have capital returns below the Group
average. We are also reconsidering other
low-returning products/services where a
path to acceptable returns is difficult to
achieve.
Restoring mortgage growth
Since 2019, our mortgage portfolio has grown
below system. This is a result of several factors
including accelerated repayments, the early
implementation of expanded mortgage
assessment criteria in 2019, operational
issues in processing mortgages including
the shut-down of certain offshore partners.
Restoring mortgage growth is a priority and
our Mortgages Line of Business has helped to
identify issues in our processes. We are now
implementing the necessary changes which
aim to improve growth relative to system in
the year ahead.
Productivity – a continual focus
As growth slows, improving efficiency becomes
even more important. Over recent years we have
improved efficiency by between $300 million
and $500 million annually. In 2020, we saved
over $400 million of costs, although this was
offset by inflationary cost increases, higher risk
and compliance costs and additional resources
devoted to our COVID-19 response.
While our priority remains supporting customers
through this difficult time, we have not lost
sight of the need to reset our cost base and
fundamentally improve efficiency. In part,
efficiency will likely improve as we simplify our
business and reduce complexity. Additional
opportunities are also expected to emerge from
digital, and assessing opportunities to reduce
our corporate footprint. We plan to announce a
cost reset program in 2021.
Restoring mortgage
growth is a key
priority
1 STRATEGIC REVIEW
2 GROUP PERFORMANCE
3 FINANCIAL STATEMENTS
4 SHAREHOLDER INFORMATION
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BUILDING ASUSTAINABLE FUTURE
As one of Australia’s largest financial institutions, we recognise our role in helping to create
positive social, economic and environmental impact.
Every year, through our sustainability materiality assessment process, we identify the
business opportunities and challenges that matter most to our stakeholders. This helps
inform our approach to how we create long-term sustainable value for our customers,
employees, suppliers, shareholders and communities.
2020 most material sustainability topics
Founding bank and signatory
to the Principles for
Responsible Banking
announced in September 2019.
Supporter of the United
Nation’s Sustainable
Development Goals (SDGs)
and its agenda for action on
improving the wellbeing of
present and future generations.
Signatory to the Business
Coalition Statement on Climate
in 2015, which highlights our
support for the Paris Climate
Agreement to limit global
warming to less than two degrees
Celsius above pre-industrial levels.
Founding signatory to the United
Nations Global Compact and a
supporter of the UN’s ‘Protect,
Respect, Remedy’ framework.
Climate change reporting aligned
to the recommendations of the
Task Force on Climate-related
Financial Disclosures.
1 GRI Index available in 2020 Sustainability Appendix.
For more information on our sustainability performance and sustainability
materiality assessment process, including further commentary on our material
topics, see our 2020 Sustainability Performance Report.
Our 2018-2020 Sustainability Strategy
We update our sustainability strategy every three years. Our last
sustainability strategy was launched in 2017 and centred on three
priorities where we believed we could have the greatest impact
and create sustainable long-term value by:
The following pages assess our progress on this strategy in its
final year, ahead of the launch of our 2021-2023 Sustainability
Strategy. We have made good progress over the last three years
meeting or exceeding over 80% of the measures set in 2017
2
.
Helping people
make better
financial
decisions
CultureFundamentals
Helping people by
being there when it
matters most to
them
Helping people
create a prosperous
nation
Our approach to identifying our material sustainability topics is aligned to the Global Reporting Initiative
(GRI) Standards (2016)
1
and the AA1000 AccountAbility Principles Standard (2018).
Conduct and culture
Poor conduct has eroded public trust in
Westpac and the financial services sector.
In response, we have plans in place designed
to strengthen our culture, and improve our
processes to deliver better customer
outcomes.
Governance and risk management
We have enhanced our governance this year
and are building a stronger risk management
capability. This change is critical to the
reputation and financial strength of the Group.
Financial performance
Delivering sound financial performance and
a strong balance sheet underpins our ability
to support customers, the economy and the
Group’s long-term success.
Changing regulatory landscape
Supervision and regulation in the financial
services sector continues to evolve, creating
change and complexity in how we operate.
Customer satisfaction and experience
Customers want banking to be easier,
simpler and more efficient. At the same time,
customer needs are becoming more complex.
Customer vulnerability and hardship
Our ability to support customers in times
of hardship and anticipate when they are
vulnerable allows us to help when it
matters most.
Customer safety and access
Maintaining an environment where customers
can safely and conveniently access our
products and services.
Digital product and service
transformation
Digitisation creates opportunities to improve
efficiency and deliver new and improved services
where, how and when customers choose to
engage with us.
Information security and data privacy
Maintaining confidentiality and the security of
our systems and data is paramount in retaining
the trust and confidence of our stakeholders.
Workforce wellbeing and talent
retention
Maintaining a secure, flexible and supportive
workplace helps us attract, retain and develop
our people.
Climate change risks and opportunities
As a major financial institution, we have
an important role in managing the risks and
opportunities of climate change.
Supporting communities in need
As an integral service provider in the
communities in which we operate, we support
those in need including in times of emergency
and recovery. We also support initiatives that
address complex societal and economic issues.
Human rights business risk
We seek to positively impact human rights in our
value chain through our role as an employer in
fostering inclusion and diversity, our lending,
understanding our role in supporting Indigenous
communities, our investments in funds, and
through our supply chain.
2 To tal number of measures met divided by total number of measures.
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BUILDING ASUSTAINABLE FUTURE
As one of Australia’s largest financial institutions, we recognise our role in helping to create
positive social, economic and environmental impact.
Every year, through our sustainability materiality assessment process, we identify the
business opportunities and challenges that matter most to our stakeholders. This helps
inform our approach to how we create long-term sustainable value for our customers,
employees, suppliers, shareholders and communities.
2020 most material sustainability topics
Founding bank and signatory
to the Principles for
Responsible Banking
announced in September 2019.
Supporter of the United
Nation’s Sustainable
Development Goals (SDGs)
and its agenda for action on
improving the wellbeing of
present and future generations.
Signatory to the Business
Coalition Statement on Climate
in 2015, which highlights our
support for the Paris Climate
Agreement to limit global
warming to less than two degrees
Celsius above pre-industrial levels.
Founding signatory to the United
Nations Global Compact and a
supporter of the UN’s ‘Protect,
Respect, Remedy’ framework.
Climate change reporting aligned
to the recommendations of the
Task Force on Climate-related
Financial Disclosures.
1 GRI Index available in 2020 Sustainability Appendix.
For more information on our sustainability performance and sustainability
materiality assessment process, including further commentary on our material
topics, see our 2020 Sustainability Performance Report.
Our 2018-2020 Sustainability Strategy
We update our sustainability strategy every three years. Our last
sustainability strategy was launched in 2017 and centred on three
priorities where we believed we could have the greatest impact
and create sustainable long-term value by:
The following pages assess our progress on this strategy in its
final year, ahead of the launch of our 2021-2023 Sustainability
Strategy. We have made good progress over the last three years
meeting or exceeding over 80% of the measures set in 2017
2
.
Helping people
make better
financial
decisions
CultureFundamentals
Helping people by
being there when it
matters most to
them
Helping people
create a prosperous
nation
Our approach to identifying our material sustainability topics is aligned to the Global Reporting Initiative
(GRI) Standards (2016)
1
and the AA1000 AccountAbility Principles Standard (2018).
Conduct and culture
Poor conduct has eroded public trust in
Westpac and the financial services sector.
In response, we have plans in place designed
to strengthen our culture, and improve our
processes to deliver better customer
outcomes.
Governance and risk management
We have enhanced our governance this year
and are building a stronger risk management
capability. This change is critical to the
reputation and financial strength of the Group.
Financial performance
Delivering sound financial performance and
a strong balance sheet underpins our ability
to support customers, the economy and the
Group’s long-term success.
Changing regulatory landscape
Supervision and regulation in the financial
services sector continues to evolve, creating
change and complexity in how we operate.
Customer satisfaction and experience
Customers want banking to be easier,
simpler and more efficient. At the same time,
customer needs are becoming more complex.
Customer vulnerability and hardship
Our ability to support customers in times
of hardship and anticipate when they are
vulnerable allows us to help when it
matters most.
Customer safety and access
Maintaining an environment where customers
can safely and conveniently access our
products and services.
Digital product and service
transformation
Digitisation creates opportunities to improve
efficiency and deliver new and improved services
where, how and when customers choose to
engage with us.
Information security and data privacy
Maintaining confidentiality and the security of
our systems and data is paramount in retaining
the trust and confidence of our stakeholders.
Workforce wellbeing and talent
retention
Maintaining a secure, flexible and supportive
workplace helps us attract, retain and develop
our people.
Climate change risks and opportunities
As a major financial institution, we have
an important role in managing the risks and
opportunities of climate change.
Supporting communities in need
As an integral service provider in the
communities in which we operate, we support
those in need including in times of emergency
and recovery. We also support initiatives that
address complex societal and economic issues.
Human rights business risk
We seek to positively impact human rights in our
value chain through our role as an employer in
fostering inclusion and diversity, our lending,
understanding our role in supporting Indigenous
communities, our investments in funds, and
through our supply chain.
2 To tal number of measures met divided by total number of measures.
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4 SHAREHOLDER INFORMATION
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BUILDING A SUSTAINABLE FUTURE
Sustainability
performance
progress
Progress highlights in the
final year of our 2018-2020
Sustainability Strategy.
Helping people
make better
financial decisions
During the past year we delivered a range
of financial education programs reaching
an estimated one million individuals, as well
as businesses, not for-profit organisations
and community groups through Westpac’s
Davidson Institute in Australia and
the Managing Your Money program in
New Zealand. Together with the launch of
a new online platform, we introduced new
easy to understand content, including a
financial fitness course.
Other initiatives include financial capability
resources for young Australians via Year 13
and through our new Instagram TV channel;
women via Ruby Connection; and older
Australians via Starts at 60.
Alignment to the sustainable
development goals
New and simpler products and services
Customers want simpler, smarter and
smoother banking. We continue to
review our products and processes
to reduce complexity and improve
service. To improve the home ownership
experience, we now have digital tools to
help customers prepare for their first home
loan appointment, upload documents,
accept a loan offer in one click and track
their application via online banking through
to settlement, with reminders and alerts.
With 80% of digital customers using their
phone for banking, we are rolling out a new
Westpac personal banking app, designed
for a faster and easier experience, with more
intuitive navigation and quicker payments.
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Helping people
by being there
when it matters
most to them
Our teams are working hard to support
customers, communities and the
economy throughout the COVID-19
pandemic. Our initial response focused
on protecting our people and customers
while remaining open for business and
putting in place a range of customer
support packages such as mortgage and
business loan deferrals. Our focus has now
shifted to working with customers who
need more individual support.
Before COVID-19, many customers and
communities were, and continue to be,
impacted by drought and last summer’s
devastating bushfires. Support packages
included mortgage and business loan
deferrals, emergency cash grants and
a $100 million fund to provide carry-on
finance loans of up to $1 million to existing
eligible drought affected agribusiness
customers at a discounted variable
interest rate.
We approved over 75,000 applications
for financial assistance from customers
experiencing financial hardship in FY20.
Helping those in need of extra care
We continue to improve support for
customers in vulnerable circumstances.
This year, we introduced an enterprise-
wide standard to help our people
support customers in vulnerable
circumstances. In addition, we developed
our Family or Domestic Violence Position
Statement, which outlines the principles
we apply when supporting affected
customers.
We offer a variety of resources to assist
customers and their families experiencing
challenging circumstances such as the
loss of a loved one, divorce or separation,
or elder financial abuse. Following
the COVID-19 restrictions, we offered
support for elderly customers and people
experiencing vulnerability to set up
contactless banking.
Remote banking support
Westpac Remote Services supports
Aboriginal and Torres Strait Islander
customers in remote communities who
may face geographic, language and cultural
barriers to accessing financial services.
First piloted in 2018, this year we
expanded Yuri Ingkarninthi, our Indigenous
Connection call centre, to customers
in all States and Territories, conducting
over 18,000 customer conversations to
support a variety of remote banking needs.
These included access to cards or cash,
establishing telephone and internet banking
and resolving issues related to scams
and fraud.
Alignment to the sustainable
development goals
Supporting more than
24,000 customers
experiencing
vulnerability through
our specialist teams
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THE BREAD AND BUTTER PROJECT
The Bread and Butter Project is
Australia’s first social enterprise bakery,
investing all its profits into training and
employment for refugees and asylum
seekers. As a wholesale bakery, the
closures of cafes and restaurants due
to COVID-19 initially resulted in a
60% loss in revenue.
With Westpac Foundation’s support,
the Project expanded its distribution to
Woolworths Metro stores. This helped
the bakery increase sales and keep its
bakers and trainees employed.
Helping create jobs for vulnerable
Australians
Westpac Foundation
1
paid $2.3 million in
grants to help organisations that provide
employment, education and training support
for some of Australia’s most vulnerable.
Given COVID-19’s impact, the Foundation
brought forward grant payments and
expanded its non-financial support, working
with industry partners to offer access to
pro bono skills.
This year, Westpac Foundation also
partnered with the Foundation for Rural
and Regional Renewal (FRRR) to award
grants to 50 community organisations in
rural, regional and remote communities
affected by drought, bushfires and
COVID-19.
Helping people
create a prosperous
nation
To help our people develop their skills, we
provide a range of structured and self-
paced learning experiences, including
virtual coaching support to help bankers
have great customer conversations and
deepen relationships.
We have also partnered with leading
universities to offer employees a range
of micro-credentials in disciplines such
as risk, lending and service.
1 Refer to footnote on page 17.
2 Jobs created through the Westpac Foundation job creation grants to social enterprises are for the year ended 30 June 2020.
3 Excludes commercial sponsorships.
CASE
STUDY
719 jobs
Westpac Foundation
1
grants to
social enterprises helped create
719 jobs
2
for vulnerable Australians
Delivered over $150 million
in community investment
3
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4 Westpac Scholars Trust (ABN 35 600 251 071) is administered by Westpac Scholars Limited (ABN 72 168 847 041) as trustee for the Westpac
Scholars Trust. Westpac Scholars Trust is a private charitable trust and neither the Trust nor the Trustee are part of Westpac Group. Westpac provides
administrative support, skilled volunteering, and funding for operational costs of Westpac Scholars Trust.
A QUANTUM ALPHABET
Quantum physicist and Westpac Scholar Dr Jacquiline
Romero believes the key to online security could lie in
a ‘quantum alphabet’ made not from letters, but from
different shapes of light. Dr Romero is exploring its
potential through her Westpac Research Fellowship
at The University of Queensland.
“I plan to use my Fellowship as an opportunity to
showcase what is possible and inspire young scientists
to follow their passion.”
“The Fellowship is expanding my network both inside
and outside of academia, which encourages a broader
conversation beyond physics. Talking to others in the
Westpac Scholars network, you get a sense that they
sincerely want to help you achieve your vision. That
backing helps me be bolder and more ambitious.”
CASE
STUDY
Tomorrow’s leaders
Westpac Scholars Trust
4
awards
100 scholarships each year to individuals
who have the ideas and drive to help shape
the future of Australia. Since beginning in
2014, Westpac Scholars Trust has awarded
scholarships valued at $24.6 million in
partnership with 22 universities across
Australia.
Westpac Scholars are talented Australians
focused on tackling a range of issues, from
finding treatments to rare diseases, to
creating innovative businesses that help
solve social problems. Today there are
almost 500 Westpac Scholars.
$3.9m
In full year 2020 Westpac Scholars
Trust awarded $3.9 million in
educational scholarships to the
next 64 Westpac Scholars
I plan to use my
Fellowship as an
opportunity to
showcase what is
possible and inspire
young scientists to
follow their passion.”
Dr Jacquiline Romero, Westpac Scholar
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Social and affordable housing
During the year we were joint lead
managers for National Housing Finance and
Investment Corporation (NHFIC) on two
social bonds, including the largest social
bond by an Australian issuer. Funds raised
by the bonds will support community
housing providers across New South Wales,
Queensland, South Australia, Tasmania,
Victoria and Western Australia, financing
over 4,700 properties, including over
1,100 new dwellings.
Our lending to the social and affordable
housing sector increased to $1.7 billion
6
.
This reflects a change in market dynamics,
with funding sources to the sector more
diversified. We continue to support
NHFIC and its clients.
Safer Children, Safer Communities
One of the commitments in our Response
Plan to the AUSTRAC proceedings was
to develop a program to help reduce
the human impact of financial crime.
The program involves a series of actions
and investments we intend to deliver in
Australia and across the Asia Pacific Region
over three years to make a meaningful
impact on child safety and protection.
To guide our approach, we established
the
Safer Children, Safer Communities
Roundtable
of experts in human rights,
child safety, online safety and law
enforcement.
5 Source: IJGlobal, September 2020.
6 Refers to the cumulative Total Approved Exposure to customers in the Social and Affordable Housing sector since 2013.
For full definition, see the 2020 Sustainability Appendix.
Progress this year included developing
strategic partnerships with International
Justice Mission to provide $18 million
over three years to tackle online sexual
exploitation of children in the Philippines,
and with Save the Children (Australia) to
provide $6 million over six years to support
the delivery of its ‘Protect Children –
Philippines’ project.
We are working with an international
non-government organisation to invest
$25 million in cross-industry data sharing
projects to better detect, monitor, report
and prevent harm to children associated
with financial crime.
Most recently, we launched a new Impact
Grants program, allocating $9.2 million to
support community organisations and not-
for-profits working across a range of child
safety and protection initiatives in Australia.
Principles for Responsible Banking
In 2017, we were a founding bank and
signatory to the Principles for Responsible
Banking (PRB), an initiative of the United
Nations Environment Programme Finance
Initiative (UNEP FI). Last year, we became
the first bank globally to report in
alignment with the draft principles.
For this year’s PRB Index, see the
2020 Sustainability Appendix.
Alignment to the sustainable
development goals
Australia’s largest
financier of greenfield
renewable energy
projects for the past
three years
5
- see
Climate change on
page 46 for more
information
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A culture that is
caring, inclusive
and innovative
We are working to address the culture
shortcomings outlined in the Culture,
Governance and Accountability (CGA)
self-assessment, with a program that
builds on our strengths of caring and
empathy, while turning around aspects of
our culture which have held us back, such
as complexity and diluted accountability.
Our new purpose and simplified values
and behaviours are also supporting this
cultural change.
Promoting an inclusive society,
where our workforce reflects
our customers
Recognising and embracing the diversity
of our people helps us to create an
inclusive culture where employees feel
they belong, are encouraged to bring new
ideas and understand the diversity of the
communities we serve.
We have introduced a new Cultural
Diversity Leadership Shadowing Program,
with 210 employees participating in the
first year.
Westpac was included in the Bloomberg
Gender Equality Index for the fourth
consecutive year.
We welcomed 115 new Aboriginal or Torres
Strait Islander employees and increased
the regional footprint of our Aboriginal and
Torres Strait Islander traineeship program,
which provides paid full-time or school-
based traineeships to build experience in
financial services.
We also launched the second intake of
our Tailored Talent program for those
on the Autism spectrum. This program
received Autism Australia’s 2020 Aspect
Advancement Award.
7 Group Internal Dispute Resolution complaints excluding WIB complaints.
Average time to
resolution for
complaints
7
is
6.5 days, compared
to 9 days in 2019
Improving the way we resolve
customer issues
Over the past two years, we have made
significant changes to the management
of customer complaints, both in terms
of our processes and by identifying and
addressing root cause issues that lead
to complaints.
Initiatives include complaints skilling
sessions for bankers with a focus on first
point resolution, an updated Complaints
Management Standard and continuing
to make information on how to make a
complaint easier to find. We have also
rolled out a new complaints management
system to help improve the customer
experience and for better compliance
and reporting.
We also continue to refund customers
where we have not got it right through
our customer remediation programs.
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SUSTAINABILITY-LINKED LOAN
Westpac NZ and Contact Energy
entered into a $50 million, four-year
sustainability-linked loan facility, one
of the first of its kind in New Zealand.
The loan’s incentive targets align with
continual improvement in Contact
Energy’s Environmental Social and
Governance (ESG) performance,
including assessment of its climate
strategy, electricity generation mix,
corporate governance and stakeholder
engagement.
Continuing to
make progress on
the sustainability
fundamentals
Health, safety and wellbeing
Our priority through COVID-19 has been
to protect our people while remaining
open for business. We have implemented
a range of measures to support the health
and wellbeing of employees, including
enhanced cleaning, providing personal
protective equipment, temperature
checks in larger sites and installation of
polycarbonate screens in branches. Where
possible, employees are working remotely,
with over 20,000 working from home. We
also introduced special leave provisions to
address illness, self-isolation and changing
childcare responsibilities.
Over 2,000 leaders have completed training
in the early intervention and prevention of
mental ill-health, and the importance of
supportive leadership. Since COVID-19, we
have introduced new health and wellbeing
resources, including for parents and carers
balancing home and work commitments,
and for employees exposed to increased
risks of domestic and family violence.
Sustainable lending and investment
Many corporate and institutional customers
are moving to more sustainable business
models. We offer a range of sustainable
finance products and services to
support them in the transition, including
sustainability-linked loans that incentivise
borrowers to meet pre-determined
sustainability targets.
During the year, we updated our
Sustainability Risk Management Framework
and ESG Credit Risk Policy, developed tools
to support bankers when considering ESG
risks, and enhanced our position statements
including on climate and human rights.
Human rights
See Human rights on page 44.
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Environment
1
We are committed to reducing the climate
change impacts of our operations. We
achieved an 11% reduction in Scope 1 and
Scope 2 greenhouse gas emissions in 2020
compared to 2019, and a 27% reduction
since 2016
2
. The reduction over the last four
years has been driven by commercial and
retail site consolidation and refurbishments
as well as onsite solar installations. Reduced
staff numbers at corporate sites due to
the COVID-19 pandemic contributed
approximately 2% of the reported reduction
in Scope 1 and 2 emissions this year.
Responsible sourcing
We work with over 8,600 supplier partners
and during the year procured goods and
services worth $6.5 billion across Australia
and New Zealand.
In response to the Modern Slavery Act 2018
(Cth), we have published a new Responsible
Sourcing Code of Conduct, updated our
Responsible Sourcing assessment tool
to increase our ability to identify risks of
modern slavery and expanded the scope
of our assessment activities to suppliers in
high risk categories, outside of our Top 100
by spend. We have commenced a redesign
of the Responsible Sourcing Program to
enhance our methods of identifying ESG
risks and take steps to mitigate and manage
ESG risks across different industries and
deeper into our supply chain.
Maintained carbon
neutral status
C0
2
A+
A+ rating for BT’s
sustainable investment
strategy and governance
through the Principles
for Responsible
Investment (PRI)
75%
Renewable energy
represents 75% of
our lending to the
electricity sector
FIRST GREEN LOAN IN
SUPERANNUATION
This year, we launched Australia’s
first green loan developed for the
superannuation sector. Working with
Local Government Super, the $65 million
green loan was structured by determining
which buildings in its Local Government
Property Fund met international
standards for green buildings set
by the Climate Bonds Initiative.
1 Environmental footprint data as at 30 June 2020, unless otherwise stated.
2 FY16 Scope 1 and 2 baseline: 147,620 tCO
2
-e.
Our supplier inclusion and diversity
program has continued to grow with
$19 million spent with diverse suppliers
during the year, including $5.9 million
with Indigenous-owned businesses.
Community and social impact
Through our community programs,
we support our employees to make
a difference in the issues and causes
important to them. More than 3,000
employees participated in our volunteering
programs, sharing their skills or time to
support community partners and social
enterprises.
In addition, over $2.7 million was donated
to more than 780 charities through our
Matching Gifts program, which matches
employee donations to eligible Australian
charities dollar-for-dollar.
For more detailed information on our
sustainability approach, performance and metrics,
please visit westpac.com.au/sustainability or see
our 2020 Sustainability Performance Report and
Sustainability Appendix.
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Our Human Rights
Position Statement
and 2023 Action
Plan:
Commits to 19 specific
actions over the next
three years; and
Sets out the principles
that guide our
approach and helps
stakeholders identify
the specific policies,
frameworks and other
documents where
those principles are
applied in practice.
Our commitment
to human rights
As a major financial institution, we
understand that through our activities we
may impact on human rights, whether in
our role as a financial services provider,
lender, purchaser of goods and services,
employer, or supporter of communities.
We recognise we have both a responsibility
to respect human rights, and opportunities
to positively impact human rights, across
our value chain. In particular, Westpac
acknowledges and has taken accountability
for its inadequate transaction monitoring
to help identify potential child exploitation.
Every three years, we review and update
our Human Rights Position Statement and
Action Plan (Human Rights Action Plan)
to lay out the principles that guide our
approach and help stakeholders identify
the specific policies, frameworks and other
documents where those principles are
applied in practice.
BUILDING A SUSTAINABLE FUTURE
In May, we published our third Human
Rights Position Statement since 2015,
together with our 2023 Action Plan.
This sets out nineteen specific actions to
be addressed over the next three years for
how we will more deeply embed respect
for human rights into our business and
business relationships, in line with the
UN Guiding Principles on Business and
Human Rights.
Governance and oversight
The Westpac Group Board has oversight
of our approach to human rights and our
management of human rights risks. Our
Human Rights Action Plan is reviewed by
the Executive Team and approved by the
Board every three years.
The Board Risk Committee considers and
approves Westpac’s Sustainability Risk
Management Framework (which includes
human rights risks) every two years.
The implementation and management
of Westpac’s approach to human rights
is led by Group Executives.
Human rights
Respecting and advancing human
rights helps us to achieve our
vision to help Australians and
New Zealanders succeed. It
reflects our belief that all people
are entitled to basic rights and
freedoms without discrimination.
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Managing human rights issues
This year, we took a number of important
steps to uplift our respect for human rights, in
line with the Human Rights Action Plan:
—delivered extra level of care and sensitivity
in the way we serve and support customers
experiencing vulnerability;
—progressed a significant multi-year program
of work to address management of financial
crime risks, including those associated with
child exploitation;
—commenced a series of actions and
investments in Australia and across the Asia
Pacific region through our Safer Children,
Safer Communities work program;
—updated our ESG Credit Risk Policy and
our position on certain sensitive sectors to
include further guidance on human rights
risks and to further embed the principle
of ‘risk to people’ as well as risk to the
business;
—supported the psychological health and
safety of our workforce, particularly in light
of bushfires and COVID-19; and
—published our Slavery and Human
Trafficking Statement for the 2019 financial
year in accordance with the
Modern Slavery
Act 2015
(UK) and made progress to meet
the requirements of the newly commenced
Australian
Modern Slavery Act 2018 (Cth).
Identifying our salient human rights issues
Salient human rights issues are the human rights at risk of the most severe negative
impact through a company’s activities and business relations. The following salient
human rights have been identified as key focus areas:
ROLESALIENT HUMAN RIGHTS
Financial services provider
—Customers experiencing vulnerability due to COVID-19,
serious illness and natural disasters, including bushfires
—Use of our services to adversely impact on human rights
—Access to services by Indigenous populations
—Information security and data privacy
Lender
—Labour rights and land-related human rights
Employer
—Work related mental ill-health
—Exclusion and discrimination
Purchaser of goods and
services
—Unfair wages and working conditions
—Modern slavery in our operations and supply chain
For more detailed information, see our 2020 Sustainability Performance Report,
Sustainability Appendix and Sustainability Datasheet.
TAKING ACTION ON MODERN
SLAVERY
In response to the Modern
Slavery Act 2018 (Cth), this year
we have taken steps to embed
its requirements across our
operations and supply chain.
These include:
—identifying ways to better
address modern slavery risk;
—conducting a modern slavery
risk assessment; and
—identifying areas for industry
collaboration.
Supported the
psychological health
and safety of our
workforce, particularly
in light of the impacts
of bushfires and
COVID-19
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Climate change
Westpac recognises that climate
change is one of the most
significant issues that will impact
the long-term prosperity of the
global economy and our way of life.
Climate-related
financial disclosure
We are committed to managing our
business in alignment with the Paris
Agreement and the need to transition to
a net zero emissions economy by 2050.
There is continued development in the
climate change agenda and increasing
interest from investors, regulators,
customers and the community in our
approach to this issue. This year, we
further integrated management of climate
change impacts into our business.
Since 2018, the Group has published
disclosures in line with the
recommendations of the Task Force on
Climate-related Financial Disclosures
(TCFD) and our performance against these
recommendations is summarised below.
Bomen Solar Farm in Wagga Wagga, NSW
BUILDING A SUSTAINABLE FUTURE
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1 Progress and targets for lending to climate solutions are reported on an ‘as-at’, non-cumulative basis.
2 BT’s annual climate-related disclosure can be found at bt.com.au/sustainability.
3 FY16 Scope 1 and 2 baseline: 147,620 tCO
2
-e.
Climate change: Strategy
Key achievements from our 2020 Climate Action Plan over the year:
CLIMATE CHANGE SOLUTIONS
Provide finance to
back climate change
solutions
—Increased lending to climate change solutions, taking total committed
exposure to $10.1 billion, exceeding our target
1
of $10 billion by 2020; and
—Facilitated $4.8 billion for climate change solutions, exceeding our
2020 target of $3 billion.
SUPPORT BUSINESSES
Support businesses
that manage their
climate-related risks
—Reduced the emissions intensity of our lending to the electricity
generation sector from 0.36 tCO
2
-e/MWh in 2017 to 0.25 tCO
2
-e/MWh
exceeding our 2020 target of 0.30 tCO
2
-e/MWh;
—Maintained our commitment to stringent lending standards in the
thermal coal mining sector;
—Supported customers’ transition strategies through sustainable finance
structures, such as sustainability-linked loans – see case study page 42;
and
—Through BT
2
, continued our involvement in Climate Action 100+, an
investor-led initiative to engage systemically important greenhouse
gas emitters and help achieve the goals of the Paris Agreement.
HELP CUSTOMERS
Help individual
customers respond
to climate change
—Provided over 3,400 natural disaster relief packages to assist customers
affected by floods, bushfires and other disasters over the year – see
page 31 for further details; and
—Westpac New Zealand launched a Warm Up Home Loan, offering
up to NZ$10,000 interest-free, for five years, to make homes healthier
and more energy efficient.
IMPROVE DISCLOSURE
Improve and disclose
our climate change
performance
—Reduced Scope 1 and 2 emissions by 27% since 2016
3
exceeding our
reduction target of 9% by 2020;
—Commenced renewable electricity supply from Bomen Solar Farm
in Q4 2020. We expect to source over 45% of our annual electricity
requirement from renewables in 2021, and are on track to meet our
commitment of 100% by 2025;
—Westpac New Zealand became New Zealand’s first Toitū carbon zero
certified bank in 2020; and
—Released our updated Climate Change Position Statement and 2023
Action Plan.
POLICY ADVOCACY
Advocate for policies
that stimulate
investment in climate
change solutions
—Actively engaged in industry initiatives on key climate change themes,
including through the UN Principles for Responsible Banking, Australian
Sustainable Finance Initiative, Australian Business Roundtable for
Disaster Resilience and Safer Communities, and Climate Measurement
Standards Initiative (CMSI).
1 STRATEGIC REVIEW
2 GROUP PERFORMANCE
3 FINANCIAL STATEMENTS
4 SHAREHOLDER INFORMATION
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Strategy update
In May, we released our updated Climate
Change Position Statement and 2023
Action Plan (Climate Action Plan)
1
. Our
updated Climate Action Plan describes
the principles that underpin our climate
change strategy, recognising that:
—a transition to a net zero emissions
economy is required by 2050;
—economic growth and emissions
reductions are complementary goals;
—addressing climate change creates
opportunities;
—climate-related risk is a financial risk; and
—collective action, transparency and
disclosure matter.
To address climate change risk and
opportunities, our Climate Action Plan
identifies three areas where we expect
to direct our attention over the short,
medium and long-term. We will:
—help customers and communities
respond to climate change;
—improve the climate change performance
of our operations; and
—support initiatives and policies to achieve
the goals of the Paris Agreement.
The Climate Action Plan also identifies
areas where we will continue to improve our
oversight, risk management and disclosure
of climate change risks and opportunities.
Oversight
The Board has oversight of the Group’s
approach to and management of climate
change and receives twice-yearly updates.
Our Climate Action Plan is approved by the
Board every three years. The Board Risk
Committee considers and approves our
Sustainability Risk Management Framework
(which includes climate change risks) every
two years.
The management of our response to
climate change is led by Group Executives.
The Sustainability Council (Council),
sponsored by the Group Executive,
Customer and Corporate Relations,
comprises senior leaders from across the
Group with responsibility for managing
Westpac’s sustainability agenda, including
climate change.
The Council meets at least quarterly and has
climate change as a standing agenda item.
The Council reports to the Executive Team
and Board through twice-yearly updates.
Various committees oversee different
elements of our climate change strategy:
—the Sustainable Finance Committee
coordinates initiatives to achieve
Westpac’s climate change solutions
targets. It reports to the Council;
—the Climate Change Risk Committee
oversees work to identify and manage the
potential impact on credit exposures from
climate change-related transition and
physical risks across the Group. It reports
to the Group Credit Risk Committee; and
—the Environment Management Committee
oversees strategies and initiatives to
reduce our environmental footprint,
particularly targets on energy and
emissions. It reports to the Council.
Divisional risk committees consider the
climate change dimensions of our business
activities as required.
During the year, the Board:
—attended a training workshop led by
industry experts to discuss climate
change risks, investor expectations
and directors’ duties;
—approved the Group’s fourth Climate
Action Plan in April 2020; and
—noted a summary of developments in
climate change in its six-monthly update.
To enhance oversight of climate change we:
—aligned the Climate Change Risk
Committee, chaired by the Group Chief
Credit Officer, to be a sub-committee
of the Group Credit Risk Committee to
improve oversight of climate-related
financial risks;
—implemented climate change updates to
risk forums for major customer-facing
divisions including Westpac Institutional
Bank (WIB), Business division, Consumer
division and Westpac New Zealand
Limited; and
—commenced work to enhance climate
change reporting to the Board.
1 Westpac’s Climate Change Position Statement and 2023 Action Plan does not apply to investments made where a Westpac Group entity is acting as a
trustee (for example Responsible Super Entity licensee or Responsible Entity) or insurer. The governance and strategies for ESG risk in these portfolios
(including climate change) are the responsibility of the relevant board and management of these entities.
Aim to provide
$3.5 billion new lending
to climate change
solutions by 2023 and
$15 billion by 2030
Climate change update (continued)
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CLIMATE CHANGE RISK COMMITTEE
We updated our Climate Change Risk Committee (CCRC) to improve oversight of
climate-related financial risks. The CCRC met three times during the year.
Now chaired by the Group Chief Credit Officer and reporting to the Group Credit
Risk Committee, the CCRC’s objectives are to:
—oversee identification, quantification and management of climate-related risks;
—integrate climate-related risks into risk management frameworks, lending policies
and lending guidelines;
—design, execute and integrate climate scenario analysis and portfolio resilience
testing;
—support climate change disclosures and reporting; and
—facilitate continuous improvement in climate-related risk management.
Managing climate-related risks
Climate change risks are managed within
the Group’s risk management framework.
We seek to understand the potential for
climate-related transition, physical and
litigation risks to impact our business, in
particular the possible impact on credit risk,
regulatory and reporting obligations, and
our reputation.
Through our Climate Action Plan, we set out
criteria for lending to emissions-intensive
and climate-vulnerable sectors, supporting
customers that are in, or reliant on, these
sectors and who assess the financial
implications of climate change on their
business, including how their strategies are
likely to perform under various forward-
looking scenarios, and demonstrate a
rigorous approach to governance, strategy
setting, risk management and reporting.
We review our Sustainability Risk
Management Framework, risk appetite
measures and policies ensuring the criteria
set out in the Climate Action Plan are
integrated. These criteria are applied at the
portfolio, customer and transaction level
where appropriate. Escalation of climate-
related risks to relevant divisional risk
committees occurs in accordance with the
Sustainability Risk Management Framework.
If the identified risks are not within risk
appetite then the application of conditions
to manage the risks may be considered, or
the transaction may be declined.
Risks associated
with climate change
have environmental,
social and economic
dimensions and are
predicted to impact all
aspects of society.
Bomen Solar Farm in Wagga Wagga, NSW
1 STRATEGIC REVIEW
2 GROUP PERFORMANCE
3 FINANCIAL STATEMENTS
4 SHAREHOLDER INFORMATION
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This year we improved climate-related
risk management by:
—establishing ‘Sustainability’ as a Level 1
Risk in the Group Risk Taxonomy
to enhance our focus on material
sustainability risks including climate
change;
—realigning ownership of the Sustainability
Risk Management Framework from
Group Sustainability to Risk to improve
integration with Group-wide risk
approaches;
—initiating a review of our Sustainability
Risk Management Framework, Risk
Appetite Statements and ESG Credit
Policy to integrate the criteria set out
in our new Climate Action Plan;
—analysing the credit characteristics
of lending in industry sectors and
postcodes which may face higher risks
by 2050 under climate change scenarios
developed in 2018 and 2019;
—completing Westpac New Zealand’s first
climate risk disclosures in line with TCFD
recommendations; and
—conducting a physical risk assessment
of the impact of sea level rise on
coastal flooding and erosion on the
Westpac New Zealand residential
mortgage book.
Scenario analysis
Since 2016, Westpac has evolved its scenario
analysis to inform its assessment of climate-
related risks and opportunities over the short,
medium and long-term. The findings from
our scenario analysis informed our current
Climate Action Plan which outlines a range
of commitments to help customers and
communities respond to climate change.
We continue to assess
1
:
—the resilience of our Australian Business
and Institutional
2
lending to transition risks
using 1.5 and 2-degrees scenarios; and
—the potential impact of climate-related
physical risks on the Australian mortgage
portfolio
3
arising from global warming
scenarios of both 2 and 4-degrees.
As at 30 September 2020:
—the share of our current Australian Business
and Institutional portfolio exposed
to sectors which may face relatively
higher growth constraints
4
at 2030 and
2050 under climate change transition
scenarios (1.5-degrees and 2-degrees) is
shown below:
20302050
1.5-degrees scenario
1.9%3.4%
2-degrees scenario
0.9%2.8%
—the share of our current Australian
mortgage portfolio in postcodes which
by 2050 are likely to be exposed to
higher physical risks under a 4-degrees
scenario is approximately 1.7%.
As part of our Climate Action Plan, further
work underway includes:
—assessing climate-related physical risks
on our Australian agribusiness portfolio
and how we can continue to support our
customers to respond;
—updating our assessment of physical risk in
our Australian mortgage book and how we
can help customers become more climate-
resilient;
—integrating climate change considerations
into our stress-testing capability; and
—analysing lending across the energy sector,
including a ‘deep dive’ on the oil and gas
sector under Paris-aligned scenarios –
see next page.
Westpac has long understood that
climate-related risk is a financial risk.
This is one of the reasons why we
have been taking action on this issue
for over a decade.
1 Using scenarios developed in 2018 and 2019 – for further details see pages 118-120 of our 2019 Annual Report.
2 Excludes retail, sovereign and bank exposures.
3 Excludes RAMS and Equity Access.
4 Sectors whose medium (2030) and long-term (2050) performance under a scenario deviated by more than one standard deviation below average
GDP growth were classified as ‘higher risk’.
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5 All figures are Total Committed Exposures (TCE) at 30 September 2020 for WIB only.
6 Australia and New Zealand only. Customers with operations across several sectors are attributed across those activities based on business segment
contribution.
7 Coal exposures within diversified miners are apportioned by the percentage EBITDA contribution of coal in their latest annual financial statements.
Thermal coal exposures within diversified miners are immaterial.
Energy sector focus
Our focus on the energy sector recognises its critical role in the transition to a low carbon economy and our
role in supporting this change. During the year we undertook further analysis to expand disclosure of our total
committed exposure to the energy sector value chain in WIB
5
.
In addition to the criteria for financing activities in the energy sector set out in our Climate Action
Plan, we have commenced work to further understand the role of oil and gas in the transition to a low
carbon economy. More extensive climate change disclosures can be found in our 2020 Sustainability
Performance Report.
Mining and
Extraction
TransportElectricity
Generation
6
Oil and Gas
Refining
$2.02 billion
Oil and Gas
Extraction
$2.22 billion
Exploration
$0.56 billion
Coal

Metallurgical
coal
$0.21 billion
Metallurgical
coal in diversified
miners
7

$0.03 billion
Thermal coal
$0.30 billion
Uranium
$0.03 billion

LNG Terminal
$0.57 billion
Coal
Rail
$0.28 billion
Port
$0.44 billion
Gas
$0.67 billion
Black coal
$0.27 billion
Brown coal
$0.03 billion
Liquid fuel
$0.12 billion
Hydro
$1.30 billion
Other renewables
$1.89 billion
Distribution
and Retail
Electricity
and Gas
6
Networks
$4.53 billion
Retailers
$0.77 billion
Oil and Gas
$1.32 billion
1 STRATEGIC REVIEW
2 GROUP PERFORMANCE
3 FINANCIAL STATEMENTS
4 SHAREHOLDER INFORMATION
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CORPORATE GOVERNANCE
Our corporate
governance
approach
Corporate governance is the framework
of systems, policies and processes by
which we operate, make decisions and
hold people to account.
The framework establishes the roles
and responsibilities of Westpac’s Board
and management. It also establishes
the systems, policies and processes
for monitoring and evaluating Board
and management performance and
the practices for corporate reporting,
disclosure, remuneration, risk management
and engagement of security holders.
Our approach to corporate governance is
based on a set of values and behaviours
that underpin our day-to-day activities and
are designed to promote transparency, fair
dealing and the protection of stakeholder
interests. It includes aspiring to the highest
standards of corporate governance,
which Westpac sees as fundamental to
the sustainability of our business and
our performance.
WESTPAC’S BOARD AND BOARD COMMITTEE STRUCTURE
Board
Independent AssuranceChief Executive Officer
External
Auditors
Group
Audit
Legal or other
professional advice
Group Executives
Board Committees
Nominations
& Governance
RemunerationAuditRiskTechnology
Legal, Regulatory
& Compliance
Sub-Committee
Provide relevant periodic assurances
and reports (as appropriate)
Provide relevant reports (as appropriate)
Provide assurance
on the remuneration
disclosures in the
Remuneration Report
Provide assurance on
risk components of
the annual report and
interim/annual financial
results announcements
Delegation
Assurance,
Oversight through
Reporting
Accountability
Accountability
Delegation
Delegation
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Board’s areas of focus in FY20
This has been a significant year for Westpac,
and has included an investigation by Westpac
into its anti-money laundering and counter-
terrorism financing (AML/CTF) compliance
failures following the filing of AUSTRAC’s
Statement of Claim and the reassessment of
our Culture, Governance and Accountability
program as required by APRA. One of the
main conclusions of the reassessment was that
aspects of our non-financial risk culture were
‘immature and reactive’. These events have led
to a number of changes across the Company.
The Group is focused on improving its risk
management capability and risk culture,
including through its Customer Outcomes
and Risk Excellence (CORE) program. The
Board is responsible for the governance of the
program, with oversight of the CORE program
workstreams by the Board Legal, Regulatory
& Compliance Committee. Further information
on the CORE program can be found on
page 19 and 20.
Much of the Board’s focus in 2020 (with
assistance from its Committees) stemmed
from these developments and included
seeking to understand the root cause of
issues, applying appropriate consequences
and overseeing the program of actions to
address the matters raised by AUSTRAC
in its Statement of Claim including by:
—establishing a Board Financial Crime
Committee
1
to oversee the implementation
of Westpac’s enhanced financial crime
program;
—appointing Promontory Australia to
undertake an external assurance review
of Westpac’s management accountability
review and a separate external review of
Westpac’s financial crime program;
—appointing an independent Advisory Panel
to review the Board’s governance relating
to the Group’s AML/CTF obligations; and
—determining accountability and applying
remuneration consequences for the issues
identified in AUSTRAC’s Statement of
Claim.
The Board also established a Board Legal,
Regulatory & Compliance Committee as
a new sub-committee of the Board Risk
Committee to assist with overseeing
management of financial crime risk, material
litigation and regulatory investigations,
customer remediation activities, compliance
and conduct risk.
In addition, the Board is overseeing broader
change across the Company, which in FY20
included:
—appointing a new CEO and overseeing
changes to, and succession planning of,
the Executive Team, including the creation
of three new Group Executive roles;
—overseeing the Group’s response to the
COVID-19 pandemic;
—overseeing the establishment of the
Specialist Businesses division which has
undertaken a strategic review of certain
businesses to simplify Westpac’s portfolio;
—overseeing the implementation of a new
Lines of Business operating model to
clarify responsibilities and accountability
for end-to-end performance;
—reviewing the findings of the reassessment
of the Culture, Governance and
Accountability program and overseeing
the CORE program that has been set up to
address, among other things, weaknesses
in our management of risk and our risk
culture; and
—approving a Code of Conduct, a new
purpose ‘Helping Australians and
New Zealanders succeed’, a new set of
values ‘Helpful, Ethical, Leading Change,
Performing and Simple’ and a set of
behaviours to bring those values to life.
1 The Board Financial Crime Committee was established and dissolved during the reporting period,
with its remaining responsibilities assumed by the Board Legal, Regulatory & Compliance Committee.
1 STRATEGIC REVIEW
2 GROUP PERFORMANCE
3 FINANCIAL STATEMENTS
4 SHAREHOLDER INFORMATION
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SKILLS AND EXPERIENCEDESCRIPTIONNUMBER OF DIRECTORS
Strategic
and
commercial
acumen
An ability to define strategic objectives,
constructively question business plans and
implement strategy using commercial judgement
Financial
services
experience
Experience working in, or advising, the banking
and financial services industry (including wealth
management), with strong knowledge of its
economic drivers and global business perspectives
Financial
acumen
Highly proficient in accounting or related financial
management and reporting for businesses of
significant size
Risk
Experience in anticipating, recognising and
managing risks, including regulatory, financial
and non-financial risks, and monitoring risk
management frameworks and controls
Technology
Experience in developing or overseeing the
application of technology in large complex
businesses, with particular reference to innovation
and the Group’s digital transformation strategic
priority
Governance
Commitment to, and knowledge of, governance,
environmental and social issues, with particular
reference to the legal, compliance, regulatory and
voluntary frameworks applicable to listed entities
and highly regulated industries
People,
culture and
conduct
Experience in people matters including workplace
cultures, morale, management development,
succession and remuneration, with particular
reference to the Group’s talent retention and
development initiatives and the ability to consider
and respond to matters relating to inclusion and
diversity
Executive
leadership
Being appointed as CEO or a similar senior
leadership role in a large complex organisation, and
having experience in that position in managing the
business through periods of significant change
Listed
company
experience
Held two or more Non-executive Directorships on
Australian or international listed companies
International
Senior leadership experience involving
responsibility for operations across borders, and
exposure to a range of political, cultural, regulatory
and business environments in that position
Customer
focus
Experience in developing and overseeing the
embedding of a strong customer-focused culture in
large complex organisations, and a demonstrable
commitment to achieving customer outcomes
10/10
7/10
8/10
8/10
8/10
10/10
9/10
7/10
6/10
8/10
9/10
BOARD SKILLS, EXPERIENCE AND ATTRIBUTES (AS AT 30 SEPTEMBER 2020)
Board skills, diversity and tenure
Westpac seeks to maintain a Board of Directors with a broad range of financial and other skills, experience and
knowledge necessary to guide the business of the Group. The Board uses a skills matrix to illustrate the key skills and
experience the Westpac Board is seeking to achieve in its membership collectively, and the number of Directors with
each skill and experience.
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0-3 years 60% 3-6 years 20% 6-9 years 20%
AVERAGE BOARD TENURE
2.8 years
FEMALE DIRECTORS
30%
BOARD DIVERSITY
For FY20, the Board had a target of maintaining at least 30% women on the Westpac Board.
The Board gender diversity as at 30 September 2020 is set out below.
Number of female Directors of the Board (3 out of 10).
BOARD TENURE
The Board tenure as at 30 September 2020 is set out below. The length of service of each
Director is set out in Section 1 of the Directors’ Report.
Corporate Governance Statement
Westpac’s 2020 Corporate Governance Statement describes our corporate governance
framework, policies and practices as at 1 November 2020 and is available on our website
at www.westpac.com.au/corpgov. The website contains copies and summaries of charters,
principles and policies referred to in the Corporate Governance Statement.
In October 2020, the Board Nominations & Governance Committee approved a revised target
of at least 40% women on the Westpac Board.
Westpac’s performance against the revised target will vary at any given time depending on the
timing of Board composition changes.
1 STRATEGIC REVIEW
2 GROUP PERFORMANCE
3 FINANCIAL STATEMENTS
4 SHAREHOLDER INFORMATION
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DIRECTORS’ REPORT
Directors’
report
Includes Board and Executive Team
biographies, report on the business,
Directors’ interests, environmental and
human rights supply chain disclosures,
political engagement, Directors’
meetings and Remuneration Report.
Our Directors present their report
together with the financial statements
of the Group for the financial year ended
30 September 2020.
Directors
The names of the persons who have been
Directors, or appointed as Directors, during
the period since 1 October 2019 and up to
the date of this report are: John McFarlane
(Director from 17 February 2020), Peter King
(Director from 2 December 2019), Lindsay
Maxsted (appointed as a Director on 1 March
2008 and retired as a Director on 31 March
2020), Brian Hartzer (appointed as a Director
on 2 February 2015 and retired as a Director on
2 December 2019), Nerida Caesar, Ewen Crouch
AM (appointed as a Director on 1 February 2013
and retired as a Director on 12 December 2019
following the completion of the 2019 Annual
General Meeting), Catriona Alison Deans (Alison
Deans), Craig Dunn, Yuen Mei Anita Fung (Anita
Fung) (appointed as a Director on 1 October
2018 and retired as a Director on 31 March
2020), Steven Harker, Peter Marriott, Peter
Nash, Margaret Seale and Christopher Lynch
(appointed as a Director on 1 September 2020).
Particulars of the skills, experience, expertise
and responsibilities of the Directors at the
date of this report, including all directorships
of other listed companies held by a Director
at any time in the three years immediately
before 30 September 2020, and the period
for which each directorship has been held,
are set out in the following pages.
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WESTPAC GROUP 2020 ANNUAL REPORT
CHAIRMAN AND INDEPENDENT NON-EXECUTIVE DIRECTOR
Appointed: Director since February 2020 and Chairman since April 2020.
Board Committees: Chairman of the Board Nominations & Governance Committee.
Experience: John is a senior figure in global banking and financial services and has 45 years of
experience in the sector. He was formerly Chairman of Barclays plc, Aviva plc and FirstGroup
plc, and Chairman of The City UK. He was also a Non-executive Director of Westfield Group/
Westfield Corporation, The Royal Bank of Scotland Group, Capital Radio plc and was a council
member of The London Stock Exchange.
John served as Chief Executive Officer of Australia and New Zealand Banking Group Limited
from 1997 to 2007, and as Group Executive Director at Standard Chartered. He also held senior
positions at Citicorp including as Managing Director of Citicorp Investment Bank Ltd and Head
of Citicorp and Citibank in the UK and Ireland. He began his career at Ford Motor Co.
Directorships of listed entities over the past three years: Unibail-Rodamco-Westfield SE
(since June 2018), Barclays plc (January 2015 to May 2019) and Westfield Corporation Limited
(July 2014 to June 2018).
Other principal directorships and interests: Director of Old Oak Holdings Ltd.
MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER
Appointed: Director since December 2019.
Board Committees: Member of the Board Technology Committee.
Experience: Peter was appointed Westpac Group Chief Executive Officer in April 2020.
Peter previously held this role on an acting basis between December 2019 and March 2020.
Since joining the Westpac Group in 1994, Peter also held senior finance roles including
Chief Financial Officer with responsibility for Westpac’s Finance, Tax, Treasury and Investor
Relations functions. Prior to this, he was Deputy Chief Financial Officer for three years. He has
also held senior positions across the Group including in Group Finance, Business and Consumer
Banking, Business and Technology Services, Treasury and Financial Markets. Peter commenced
his career at Deloitte Touche Tohmatsu. He has a Bachelor of Economics from Sydney
University and completed the Advanced Management Programme at INSEAD. He is a Fellow of
the Institute of Chartered Accountants.
Directorships of listed entities over the past three years: Nil.
Other principal directorships and interests: Director of Australian Banking Association
Incorporated and Institute of International Finance.
INDEPENDENT NON-EXECUTIVE DIRECTOR
Appointed: Director since September 2017.
Board Committees: Member of the Board Legal, Regulatory and Compliance and Board
Technology Committees.
Experience: Nerida has over 33 years of broad ranging commercial and business management
experience, with particular depth in technology led businesses. Nerida was Group Managing
Director and Chief Executive Officer, Australia and New Zealand, of Equifax (formerly the
ASX-listed Veda Group Limited) and was also a former director of Genome.One Pty Ltd and
Stone and Chalk Limited. Before joining Equifax, Nerida held several senior management roles
at Telstra, including Group Managing Director, Enterprise and Government and Group Managing
Director, Wholesale. Nerida also held several Executive and senior management positions with
IBM within Australia and internationally, including as Vice President of IBM’s Intel Server Division
for the Asia Pacific region.
Directorships of listed entities over the past three years: Nil.
Other principal directorships and interests: Chairman of Workplace Giving Australia Limited
and Director of Spark Investment Holdco Pty Ltd. Member of the Advisory Board of IXUP
Limited. Advisor to Equifax Australia and New Zealand and Carla Zampatti Pty Ltd.
JOHN M
C
FARLANE
MA, MBA
Age: 73
PETER KING
BEc, FCA.
Age: 50
NERIDA CAESAR
BCom, MBA, GAICD
Age: 56
BOARD OF DIRECTORS
1 STRATEGIC REVIEW
2 GROUP PERFORMANCE
3 FINANCIAL STATEMENTS
4 SHAREHOLDER INFORMATION
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58
WESTPAC GROUP 2020 ANNUAL REPORT
INDEPENDENT NON-EXECUTIVE DIRECTOR
Appointed: Director since June 2015.
Board Committees: Chairman of the Board Remuneration Committee. Member of the Board
Nominations & Governance and Board Risk Committees.
Experience: Craig has more than 20 years’ experience in financial services, including as CEO
of AMP Limited. He was formerly a director of Financial Literacy Australia Limited, and a Board
member of the Australian Japanese Business Cooperation Committee, Jobs for New South
Wales, and the New South Wales Government’s Financial Services Knowledge Hub. Craig was
Chairman of Stone and Chalk Limited and of the Investment and Financial Services Association
(now the Financial Services Council). He was also a member of the Financial Services Advisory
Committee, the Australian Financial Centre Forum, the Consumer and Financial Literacy
Taskforce and a Panel member of the Australian Government’s Financial System Inquiry.
Directorships of listed entities over the past three years: Telstra Corporation Limited (since
April 2016).
Other principal directorships and interests: Chairman of The Australian Ballet, Chairman
of the International Standards Technical Committee on Blockchain and Distributed Ledger
Technologies (ISO/TC 307), and consultant to King & Wood Mallesons.
INDEPENDENT NON-EXECUTIVE DIRECTOR
Appointed: Director since April 2014.
Board Committees: Chairman of the Board Technology Committee. Member of the Board
Nominations & Governance, Board Remuneration and Board Risk Committees.
Experience: Alison has more than 20 years’ experience in senior executive roles focused on
building digital businesses and digital transformation across e-commerce, media and financial
services. She has served as the CEO of eCorp Limited, CEO of Hoyts Cinemas and CEO of
eBay, Australia and New Zealand. Most recently, she was CEO of technology-based investment
company netus Pty Ltd, which was acquired by Fairfax Media Limited in 2012.
Directorships of listed entities over the past three years: Cochlear Limited (since January 2015),
Ramsay Health Care Limited (since November 2018), and Insurance Australia Group Limited
(February 2013 to October 2017).
Other principal directorships and interests: Director of SCEGGS Darlinghurst Limited,
The Observership Program Limited and Deputy Group Pty Ltd. Senior Advisor to McKinsey
& Company and Investment Committee member of the CSIRO Innovation Fund (Main
Sequence Ventures).
ALISON DEANS
BA, MBA, GAICD
Age: 52
CRAIG DUNN
BCom, FCA
Age: 57
INDEPENDENT NON-EXECUTIVE DIRECTOR
Appointed: Director since March 2019.
Board Committees: Member of the Board Audit and Board Legal, Regulatory & Compliance
Committees.
Experience: Steve has over 35 years’ experience in investment banking. He was formerly
Managing Director and Chief Executive Officer of Morgan Stanley Australia, and then Vice
Chairman until February 2019. Prior to joining Morgan Stanley, he spent 15 years with Barclays
de Zoete Wedd (BZW, now Barclays Investment Bank). Steve was Chairman and Director of
Australian Financial Markets Association Limited and a Director of Investa Property Group.
He also previously served on the Board of the Centre for International Finance and Regulation
and was a Guardian of the Future Fund of Australia.
Directorships of listed entities over the past three years: Nil.
Other principal directorships and interests: Chairman of the Investment and Executive
Committees at Future Now Ventures. Director of The Banking and Finance Oath Limited, The
Hunger Project Australia, ASX Refinitiv Charity Foundation, and New South Wales Golf Club
Foundation Limited.
INDEPENDENT NON-EXECUTIVE DIRECTOR
Appointed: Director since June 2013.
Board Committees: Chairman of the Board Risk Committee. Member of the Board Legal,
Regulatory & Compliance, Board Audit, Board Nominations & Governance and Board Technology
Committees.
Experience: Peter has over 30 years’ experience in senior management roles in the finance
industry, encompassing international banking, finance and auditing. He joined Australia and
New Zealand Banking Group Limited (ANZ) in 1993 and was Chief Financial Officer from July 1997
to May 2012. Prior to his career at ANZ, Peter was a banking and finance, audit and consulting
partner at KPMG Peat Marwick. Peter was formerly a Director of ANZ National Bank Limited in
New Zealand and various ANZ subsidiaries.
Directorships of listed entities over the past three years: ASX Limited (since July 2009).
Other principal directorships and interests: Director of ASX Clearing Corporation Limited,
ASX Settlement Corporation Limited and Austraclear Limited. Member of Monash University
Council and Chairman of the Monash University Council’s Resources and Finance Committee.
STEVEN HARKER
BEc (Hons.), LLB
Age: 65
PETER MARRIOTT
BEc (Hons.), FCA
Age: 63
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59
WESTPAC GROUP 2020 ANNUAL REPORT
INDEPENDENT NON-EXECUTIVE DIRECTOR
Appointed: Director since March 2019.
Board Committees: Member of the Board Remuneration and Board Legal, Regulatory &
Compliance Committees.
Experience: Margie has more than 25 years’ experience in senior executive roles in Australia
and overseas, including in consumer goods, global publishing, sales and marketing, and the
successful transition of traditional business models to digital environments. Prior to her non-
executive career, Margie was the Managing Director of Random House Australia and New
Zealand and President, Asia Development for Random House Inc. Margie was a Director and
then Chair of Penguin Random House Australia Pty Limited, and a Director of Ramsay Health
Care Limited, Bank of Queensland Limited and the Australian Publishers’ Association. She also
served on the Boards of Chief Executive Women (chairing its Scholarship Committee), the
Powerhouse Museum, and the Sydney Writers Festival.
Directorships of listed entities over the past three years: Telstra Corporation Limited
(since May 2012), Scentre Group Limited (since February 2016), Ramsay Health Care Limited
(April 2015 to October 2018) and Bank of Queensland Limited (January 2014 to June 2018).
Other principal directorships and interests: Nil.
INDEPENDENT NON-EXECUTIVE DIRECTOR
Appointed: Director since September 2020.
Board Committees: Member of the Board Audit and Board Risk Committees.
Experience: Chris has significant experience in mineral resources and infrastructure, having
spent over 30 years working in these fields globally. Chris was formerly the Global Chief
Financial Officer of Rio Tinto Group, based in London, and an Executive Director. Prior to this,
he was a Non-executive Director of Rio Tinto Group. Chris was the Chief Executive Officer of
Transurban Group, an international toll road developer and manager with interests in Australia
and North America from 2008 to 2012. His executive career also included seven years at BHP
Billiton where he was Chief Financial Officer and then Executive Director and Group President
– Carbon Steel Materials. Chris spent 20 years with Alcoa Inc. where he held a number of
executive positions, including Vice-President and Chief Information Officer based in Pittsburgh,
USA and Chief Financial Officer of Alcoa Europe in Switzerland. He was also managing director
of KAAL Australia Limited, a joint venture company formed by Alcoa and Kobe Steel. Chris was
formerly a Commissioner of the Australian Football League from 2008 until 2014.
Directorships of listed entities over the past three years: Rio Tinto Group (September 2011 to
September 2018).
Other principal directorships and interests: Director of Business for Millennium Development
Ltd, Chairman of the National Water Grid Authority Advisory Board.
MARGARET (MARGIE)
SEALE
BA, FAICD
Age: 60
CHRIS LYNCH
BCom, MBA, FCPA
Age: 67
INDEPENDENT NON-EXECUTIVE DIRECTOR
Appointed: Director since March 2018.
Board Committees: Chairman of the Board Audit and Board Legal, Regulatory & Compliance
Committees. Member of the Board Risk and Board Nominations & Governance Committees.
Experience: Peter was formerly a Senior Partner with KPMG, having been admitted to the
Australian partnership in 1993. He served as the National Chairman of KPMG Australia and
served on KPMG’s Global and Regional Boards. His previous positions with KPMG included
Regional Head of Audit for Asia Pacific, National Managing Partner for Audit in Australia and
head of KPMG Financial Services. Peter has worked in geographically diverse and complex
operating environments providing advice on a range of topics including business strategy,
risk management, internal controls, business processes and regulatory change. He has also
provided financial and commercial advice to many State and Federal Government businesses.
Peter is a former member of the Business Council of Australia and its Economic and Regulatory
Committee.
Directorships of listed entities over the past three years: Johns Lyng Group Limited (Chairman
since October 2017), Mirvac Group (since November 2018) and ASX Limited (since June 2019).
Other principal directorships and interests: Director of Reconciliation Australia Limited and
Golf Victoria Limited. Board member of the Koorie Heritage Trust.
PETER NASH
BCom, FCA, F Fin
Age: 58
1 STRATEGIC REVIEW
2 GROUP PERFORMANCE
3 FINANCIAL STATEMENTS
4 SHAREHOLDER INFORMATION
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60
WESTPAC GROUP 2020 ANNUAL REPORT
Company Secretary
Our Company Secretary as at 30 September 2020 was Tim Hartin.
COMPANY SECRETARY
Tim was appointed Company Secretary in November 2011. Before that appointment, Tim was
Head of Legal – Risk Management & Workouts, Counsel & Secretariat and prior to that, he was
Counsel, Corporate Core. Before joining Westpac in 2006, Tim was a Consultant with Gilbert
+ Tobin, where he provided corporate advisory services to ASX-listed companies. Tim was
previously a lawyer at Henderson Boyd Jackson W.S. in Scotland and in London in Herbert
Smith’s corporate and corporate finance division.
TIM HARTIN
LLB (Hons.)
Age: 45
Executive Team
As at 30 September 2020 our Executive Team was:
NAMEPOSITION
YEAR
JOINED
GROUP
YEAR
APPOINTED
TO POSITION
Peter King
Managing Director & Chief Executive Officer19942020
Richard Burton
Acting Chief Executive, Consumer 20102020
Rebecca Lim
Group General Counsel & Enterprise Executive20022020
Guilherme (Guil) Lima
Chief Executive, Business20192019
Carolyn McCann
Group Executive, Customer & Corporate Relations20132018
David McLean
Chief Executive Officer, Westpac New Zealand19992015
Christine Parker
Group Executive, Human Resources20072011
Michael Rowland
Chief Financial Officer20202020
David Stephen
Chief Risk Officer20182018
Gary Thursby
Chief Information Officer (Acting) 20082020
Les Vance
Group Executive, Financial Crime, Compliance & Conduct20082020
Alastair Welsh
Acting Group Executive, Enterprise Services19922019
Jason Yetton
Chief Executive, Specialist Businesses, Strategy & Transformation20202020
Curt Zuber
Acting Chief Executive, Westpac Institutional Bank1995 2020
There are no family relationships between or among any of our Directors or Executive Team members.
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CHIEF EXECUTIVE, BUSINESS DIVISION
Guilherme (Guil) joined Westpac Group as Chief Executive, Business Division in December
2019. The division supports Australia’s small business, commercial, agribusiness and private
wealth customers providing a wide range of banking services across the Westpac, St.George,
BankSA and Bank of Melbourne brands.
Guil has 22 years’ experience in banking and consulting in Hong Kong, Brazil, UK, US, Spain
and the Netherlands. Prior to his appointment, Guil was Group Head of Wealth Management
at HSBC Hong Kong. He started at HSBC as Group Head of Strategy in London in 2010 after a
career totalling 10 years at McKinsey & Co.
Guil holds a Bachelor of Business Administration in General Management and Finance from
Fundação Getulio Vargas (FGV) in Brazil and a Master of Business Administration in Strategy,
Corporate Finance and Investment Management from Harvard Business School.
RICHARD BURTON
BSc Mathematics (Hons)
Age: 48
REBECCA LIM
B Econ, LLB (Hons)
Age: 48
GUILHERME (GUIL)
LIMA
MBA, BBA
Age: 46
61
WESTPAC GROUP 2020 ANNUAL REPORT
EXECUTIVE TEAM AS AT 30 SEPTEMBER 2020
PETER KING
BEc, FCA
Age: 50
MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER, WESTPAC GROUP
Peter was appointed Westpac Group Chief Executive Officer in April 2020, after holding the
role on an acting basis between December 2019 and March 2020.
In his 25 years at Westpac, Peter has held senior finance roles including Chief Financial Officer
with responsibility for Westpac’s Finance, Group Audit, Tax, Treasury and Investor Relations
functions. Prior to this he was Deputy Chief Financial Officer for three years and worked in
senior positions across the Group including in Group Finance, Business and Consumer Banking,
Business and Technology Services, Treasury and Financial Markets.
Peter commenced his career at Deloitte Touche Tohmatsu. He has a Bachelor of Economics
from Sydney University and completed the Advanced Management Programme at INSEAD.
He is a Fellow of the Institute of Chartered Accountants.
GROUP GENERAL COUNSEL & ENTERPRISE EXECUTIVE
Rebecca is responsible for leading Westpac’s legal function globally, as well as leading the
CEO’s office.
Rebecca joined Westpac in 2002 and has held a variety of other senior leadership roles
including General Manager, Human Resources for St.George Bank and General Manager,
St.George Private Clients.
Rebecca began her career at Blake Dawson Waldron (now Ashurst) before joining the US firm
Skadden Arps where she worked in both New York and London. Rebecca then moved into an
in-house role in investment banking at Goldman Sachs in London before returning to Australia
and joining Westpac.
Rebecca is a member of Chief Executive Women.
ACTING CHIEF EXECUTIVE, CONSUMER DIVISION
Richard was appointed Acting Chief Executive, Consumer Division in June 2020. The division
provides a wide range of retail banking, lending and consumer finance services across the
Westpac, St.George, BankSA, Bank of Melbourne and RAMS brands.
In his 10 years at Westpac, Richard has held senior finance roles spanning consumer, business
and Group functions including Chief Financial Officer of the Consumer Division, Chief Financial
Officer of the Business Division, Acting General Manager, Group Finance and Acting Deputy
Chief Financial Officer. During this time, Richard led large teams of finance professionals while
driving performance, optimising investment to generate positive customer experiences and
managing all aspects of financial reporting.
Prior to joining Westpac, Richard held senior roles in financial services in Australia and the UK
including Head of Business Performance at Challenger Financial Services Group and Head of
Performance Management at National Australia Bank. Richard also led an advisory team for
KPMG in the UK.
Richard holds a Bachelor of Science in Mathematics with Honours, from the University of
Bristol.
1 STRATEGIC REVIEW
2 GROUP PERFORMANCE
3 FINANCIAL STATEMENTS
4 SHAREHOLDER INFORMATION
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62
WESTPAC GROUP 2020 ANNUAL REPORT
CHIEF EXECUTIVE OFFICER, WESTPAC NEW ZEALAND LIMITED
David was appointed Chief Executive Officer, Westpac New Zealand Limited in February 2015.
Since joining Westpac in February 1999, he has held a number of senior roles including Head
of Debt Capital Markets New Zealand, General Manager, Private, Wealth and Insurance New
Zealand and Head of Westpac Institutional Bank New Zealand, and most recently, Managing
Director of the Westpac New York branch.
Before joining Westpac, David was Director, Capital Markets at Deutsche Morgan Grenfell from
1994. He also established the New Zealand branch of Deutsche Bank and was New Zealand
Resident Branch Manager. In 1988, David joined Southpac/National Bank as a Capital Markets
Executive. Prior to this, David worked as a lawyer in private practice and served as in-house
counsel for NatWest NZ from 1985.
GROUP EXECUTIVE, HUMAN RESOURCES
Christine was appointed to Westpac Group’s Executive Team in October 2011. As Group Executive,
Human Resources, Christine leads the HR function for the Group, responsible for strengthening
our service oriented and inclusive culture, attracting and retaining the best talent, developing
and helping our workforce to grow skills for the future, rewarding and recognising our people
and ensuring their health and wellbeing. Christine has responsibility for the office of the Banking
Executive Accountability Regime (BEAR) and also supports the CEO and Board on culture and
conduct. Since joining Westpac in 2007, Christine has held a variety of senior leadership roles
including Group General Manager, Human Resources and General Manager, Human Resources
for Westpac New Zealand Limited. Before joining Westpac, Christine held senior HR roles in a
number of high-profile organisations and across a range of industries, including Carter Holt Harvey
and Restaurant Brands New Zealand. Christine is currently Chair of the St.George Foundation, a
member of the Chief Executive Women and was previously a Director of Women’s Community
Shelters and member of the Veterans’ Employment Industry Advisory Committee.
CHIEF FINANCIAL OFFICER
Michael joined Westpac Group as Chief Financial Officer in September 2020. He is responsible
for Westpac’s Finance, Group Audit, Investor Relations, Tax and Treasury functions.
Before joining Westpac, Michael was a Partner in Management Consulting at KPMG. Before that
he held a number of senior executive positions at ANZ from 1999 to 2013. This included CFO
Institutional Banking, CFO Wealth, CFO New Zealand, CFO Personal Financial Services, and
business leadership roles as CEO Pacific, Managing Director Mortgages and General Manager,
Transformation. Michael commenced his career at KPMG, where he was promoted to become a
Tax Partner in 1993.
Michael holds a Bachelor of Commerce, University of Melbourne and a Graduate Diploma of
Taxation Law, Monash University. He is a Fellow of the Institute of Chartered Accountants in
Australia and New Zealand.
CHIEF RISK OFFICER
David was appointed Chief Risk Officer in October 2018, with responsibility for risk management
across the Group.
Prior to this, David was the Chief Risk Officer for Royal Bank of Scotland (RBS) from 2013,
having joined in 2010 as the Deputy Chief Risk Officer. David has also previously held other
senior roles at both retail and investment banks in the UK, USA, Hong Kong and Australia,
including serving as Chief Risk Officer at ANZ and Chief Credit Officer at Credit Suisse
Financial Products.
David has a Bachelor of Business in Banking and Finance from Monash University and is a
Board member of the International Financial Risk Institute.
DAVID M
C
LEAN
LLB (Hons.)
Age: 62
CHRISTINE PARKER
BGDipBus (HRM)
Age: 60
MICHAEL ROWLAND
B.Comm, FCA
Age: 59
DAVID STEPHEN
BBus
Age: 56
GROUP EXECUTIVE, CUSTOMER & CORPORATE RELATIONS
Carolyn was appointed as Westpac’s Group Executive responsible for customer and corporate
relations in May 2018. This division originally brought together management of the Group’s
customer resolution of complaints, alongside the functions responsible for reputation, corporate
affairs, communications and sustainability. During the year, Carolyn assumed responsibility for
the Customer Advocate function as well as the Group’s Customer Outcomes and Risk Excellence
Program, a program to improve risk culture, governance and accountability. From 1 November
2020, the division will also include Westpac Group’s customer remediation function. Carolyn joined
Westpac in 2013, as General Manager, Corporate Affairs and Sustainability.
Prior to joining Westpac, Carolyn spent 13 years at Insurance Australia Group in various positions,
including Group General Manager, Corporate Affairs and Investor Relations. She began her career in
consulting and has extensive in-house and consulting experience in financial services.
CAROLYN M
C
CANN
BBus (Com), BA,
GradDipAppFin, GAICD
Age: 48
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63
WESTPAC GROUP 2020 ANNUAL REPORT
GROUP EXECUTIVE, FINANCIAL CRIME, COMPLIANCE AND CONDUCT
Les was appointed Group Executive, Financial Crime, Compliance and Conduct in June 2020.
In this newly created role, Les is responsible for overseeing and strengthening the governance
and management of these risks.
Les has over 25 years’ executive experience across transformation and program delivery, risk
and governance, operations and line management. Joining Westpac in 2008, Les has held a
variety of senior roles including Chief Operating Officer, Consumer Division and Chief Risk
Officer, BT Financial Group. Prior to Westpac, Les was Group Executive for External Funds at
Investa Property Group and Chief Executive for Gaming at TAB Limited. Les commenced his
career as a solicitor at the legal firm Freehills.
Les holds a Bachelor of Commerce and a Bachelor of Laws with Honours, both from
University of Queensland.
ACTING GROUP EXECUTIVE, ENTERPRISE SERVICES
Alastair was appointed Acting Group Executive, Enterprise Services in December 2019. His role
is designed to accelerate the delivery of the Group’s Service Revolution and provides services
to support the Group’s operating businesses. Alastair’s responsibility also includes banking
operations, advice and group remediation, procurement, property and enterprise investments.
Alastair holds more than 30 years’ experience in banking in the UK, New Zealand and Australia.
Since joining Westpac NZ in 1992, he has held a variety of roles from relationship management
through to leadership positions for BT Financial Group, Group Customer Transformation and
Business Banking.
Prior to his current appointment, Alastair was Acting Chief Executive, Business.
CHIEF EXECUTIVE, SPECIALIST BUSINESSES, STRATEGY & TRANSFORMATION
Jason was appointed Chief Executive, Specialist Businesses in May 2020.
He is responsible for Group Strategy, Transformation Office and Corporate & Business
Development. He is also accountable for the Strategic Reviews and potential divestments of the
Group’s Specialist Businesses. Specialist Businesses support customers with wealth needs including
Life and General Insurance, Superannuation and Platforms and Investments as well as Auto Finance
and Pacific banking. Most recently, Jason was Chief Executive Officer NewCo, CBA, where he was
appointed to lead the demerger of its wealth management and mortgage broking businesses. Prior
to that, he was Chief Executive Officer & Managing Director, SocietyOne, an early financial services
disrupter and consumer finance marketplace lender. Jason was previously with the Westpac Group
for more than 20 years, holding a number of senior positions including Group Executive, Westpac
Retail & Business Banking, and a range of senior executive positions in BT Financial Group.
ACTING CHIEF EXECUTIVE, WESTPAC INSTITUTIONAL BANK
Curt was appointed Acting Chief Executive, Westpac Institutional Bank in July 2020. He is
responsible for Westpac’s global relationships with corporate, institutional and government clients
as well as all products across financial and capital markets, transactional banking, structured
finance and working capital payments. He is also responsible for Westpac’s offices and branches
in Asia, London and New York. Curt joined Westpac in 1995 and was appointed Group Treasurer
in 2004 where he oversaw treasury operations, Group liquidity and Global wholesale funding
across all products, including securitisation, covered bonds and other structured products,
capital securities and unsecured issuance. He was also responsible for all on-balance-sheet risk
management, as well as management of the Group’s balance sheet, including capital planning and
execution and meeting the Group’s liquidity and funding regulatory requirements. Prior to this,
Curt held several roles including Deputy Group Treasurer and Head of Treasury Risk. Before joining
Westpac, Curt spent seven years at Household International in Chicago and Sydney in various
treasury-related roles, including risk management, funding and asset and liability management.
LES VANCE
BCom, LLB (Hons)
Age: 50
ALASTAIR WELSH
MBA, BCA, CA
Age: 55
JASON YETTON
B.Comm (Finance &
Mktg), GradDipAppFin
Age: 49
CURT ZUBER
BA, MBA
Age: 55
CHIEF INFORMATION OFFICER (ACTING)
Gary has held a number of Group Executive roles across the Group. He was appointed Chief
Information Officer (Acting) in 2020. Before this, he was Chief Financial Officer (Acting) from
December 2019 to August 2020. He has also held the roles of Chief Operating Officer and
Group Executive, Strategy & Enterprise Services.
Before joining Westpac in 2008, Gary held several senior finance roles at Commonwealth
Bank of Australia (CBA) including Deputy CFO and CFO Retail Bank. He has over 20 years’
experience in financial services, covering finance, M&A and large-scale program delivery.
He commenced his career at Deloitte Touche Tohmatsu.
Gary has a Bachelor of Economics and a Post Graduate Diploma in Accounting from Flinders
University of South Australia and is a Fellow of the Institute of Chartered Accountants.
GARY THURSBY
BEc, DipAcc, FCA
Age: 58
1 STRATEGIC REVIEW
2 GROUP PERFORMANCE
3 FINANCIAL STATEMENTS
4 SHAREHOLDER INFORMATION
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64WESTPAC GROUP 2020 ANNUAL REPORT
Directors’ report
3. Operating and financial review
a) Principal activities
The principal activities of the Group during the
financial year ended 30 September 2020 were the
provision of financial services including lending, deposit
taking, payments services, investment platforms,
superannuation and funds management, insurance
services, leasing finance, general finance, interest rate
risk management and foreign exchange services.
From 30 June 2019 and 30 September 2019 respectively,
Westpac ceased to provide personal financial advice
through its salaried BT Financial Group planners or its
authorised representatives. Other than this change, there
have been no significant changes in the nature of the
principal activities of the Group during 2020.
b) Operations and financial performance
The net profit attributable to owners of Westpac
Banking Corporation for 2020 was $2,290 million, a
decrease of $4,494 million or 66% compared to 2019.
Key features of this result were:
• Net interest income decreased $211 million or 1%
compared to 2019 predominantly due to a decrease
in net interest margin of 9 basis points to 2.03%.
The movement in net interest income is attributable
to the impact of:
–lower rates on average interest earning assets
exceeding benefits from the decrease in
the Group’s funding costs, which includes
movements in economic hedges; and
–lower charges for estimated customer refunds
and payments than in 2019.
• In aggregate, non-interest income decreased
$255 million compared to 2019 mainly due to:
–a decrease in net wealth and insurance income
due to lower rates, asset impairment and severe
weather events resulting in higher claims; and
–a decrease in net fee income from lower
customer activities and fee waivers; partially
offset by
–a lower charge for estimated customer refunds
and payments compared to 2019; and
–the realisation of a gain upon the derecognition
of an associate.
• Operating expenses increased $2,633 million or
26% compared to 2019. The rise was mainly due to:
–costs associated with AUSTRAC proceedings
including a provision for penalty;
–customer service costs associated with
responding to COVID-19; and
–asset impairments, and an increase in
amortisation and impairment of capitalised
software; partially offset by provisions for Wealth
restructuring in 2019.
• Impairment charges were $2,384 million higher
compared to 2019 reflecting the deterioration in
the economy as a result of the COVID-19 pandemic
which has led to a significant increase in the
expected credit losses. Asset quality deteriorated,
with stressed exposures as a percentage of total
committed exposures at 1.91%, up 71 basis points
compared to 2019.
The effective tax rate of 46.3% was higher than 2019’s
effective tax rate of 30.4% predominantly due to both
the provision for the AUSTRAC penalty and goodwill
impairment being non deductible.
A review of the operations of the Group and its
divisions and their results for the financial year
ended 30 September 2020 is set out in Section 2
of the Annual Report under the sections ‘Review of
Group operations’ (see pages 117 to 130), ‘Divisional
performance’ (see pages 131 to 143) and ‘Risk and risk
management’ (see pages 144 to 163), which form part
of this report.
Further information about our financial position and
financial results is included in the financial statements in
Section 3 of this Annual Report (see pages 167 to 320),
which form part of this report.
c) Dividends
Since 30 September 2020, Westpac has announced a
final ordinary dividend of 31 cents per Westpac ordinary
share, totalling approximately $1,120 million for the year
ended 30 September 2020. The dividend will be fully
franked and will be paid on 18 December 2020.
No interim ordinary dividend was paid for the half year
ended 31 March 2020.
Further, in respect of the year ended 30 September
2019, a fully franked final dividend of 80 cents per
ordinary share totalling $2,791 million was paid on
20 December 2019. The payment comprised direct cash
disbursements of $2,518 million with $273 million, being
reinvested by participants through the DRP.
New shares were issued under the DRP for the 2019
final ordinary dividend.
Directors’ report

1 STRATEGIC REVIEW
2 GROUP PERFORMANCE
3 FINANCIAL STATEMENTS
4 SHAREHOLDER INFORMATION
65WESTPAC GROUP 2020 ANNUAL REPORT
Directors’ report
d) Significant changes in state of affairs and events
during and since the end of the 2020 financial year
Throughout the financial year ended 30 September
2020, the Group has operated in a challenging
environment, including as a result of the COVID-19
pandemic which has had a significant and adverse
impact on the Australian and global economy and our
business, financial performance, customers and people,
as well as AUSTRAC’s Statement of Claim and matters
relating to those proceedings (refer to ‘AUSTRAC
proceedings overview’ section for more details (see
page 22)).
In this environment, significant changes in the state of
affairs of the Group were:
• implementing a range of initiatives to support
certain customers impacted by the COVID-19
pandemic, such as lowering interest rates on
certain products, waiving certain fees, providing
special loans to support customers to manage their
cash flow and granting deferrals of mortgage and
business loan repayments;
• modifying our operations in response to the material
restrictions which have been implemented by the
Australian, State and Territory governments as a
result of the COVID-19 pandemic;
• the filing of proceedings by AUSTRAC against
Westpac in November 2019 in relation to alleged
contraventions of the Anti-Money Laundering
and Counter-Terrorism Financing Act 2006 (Cth),
reaching an agreement with AUSTRAC to resolve
these proceedings and raising a provision for
a penalty of $1.3 billion. ASIC also continues to
conduct an extensive investigation into matters
related to the AUSTRAC proceedings;
• reassessing our Culture, Governance and
Accountability assessment at the request of APRA
and commencing the CORE program;
• implementing a number of multi-year programs (in
addition to the CORE program) that seek to address
identified shortcomings and significantly improve
Westpac’s management of risks;
• making changes to the Westpac Board and
Executive Team, including the appointment of a new
Chairman and Chief Executive Officer;
• establishing the Specialist Businesses division
which has completed a strategic review of certain
businesses to simplify Westpac’s portfolio;
• launching our new Lines of Business operating
model to clarify responsibility and accountability for
end-to-end performance; and
• ongoing regulatory changes and developments,
which have included changes relating to financial
services, access to data, hardship reporting
requirements and other regulatory requirements.
For a discussion of these matters, please refer to
‘Significant developments’ in Section 1 of the Annual
Report, which forms part of this report (see pages
102 to 108).
Other than set out above, the Directors are not aware
of any other matter or circumstance that has occurred
since 30 September 2020 that has significantly affected
or may significantly affect the operations of the Group,
the results of these operations or the state of affairs of
the Group in subsequent financial years.
e) Business strategies, developments and expected
results
Our business strategies, prospects and likely major
developments in the Group’s operations in future
financial years and the expected results of those
operations are discussed in the Strategic report (see
pages 1 to 55 and in ‘Significant developments’ in
Section 1 of the Annual Report (see pages 102 to 108),
which forms part of this report.
Further information on our business strategies and
prospects for the future financial years and likely
developments in our operations and the expected
results of operations have not been included in this
report because the Directors believe it would be likely
to result in unreasonable prejudice to us.
f) Risks to our financial performance, position and
our operations
Our financial position, our future financial results, our
operations and the success of our strategy are subject
to a range of risks. These risks are set out and discussed
in Section 2 of this Annual Report under the section
‘Risk and risk management’, which forms part of this
report (see pages 144 to 163).

66WESTPAC GROUP 2020 ANNUAL REPORT
Directors’ report
4. Directors’ interests
a) Directors’ interests in securities
The following particulars for each Director are set out in the Remuneration Report in Section 10 of the Directors’
report for the year ended 30 September 2020 and in the tables below:
• their relevant interests in our shares or the shares of any of our related bodies corporate;
• their relevant interests in debentures of, or interests in, a registered scheme made available by us or any of our
related bodies corporate;
• their rights or options over shares in, debentures of, or interests in, any registered scheme made available by us
or any of our related bodies corporate; and
• any contracts:
–to which the Director is a party or under which they are entitled to a benefit; and
–that confer a right to call for or deliver shares in, debentures of, or interests in, a registered scheme made
available by us or any of our related bodies corporate.
Directors’ interests in Westpac and related bodies corporate as at 1 November 2020
Number of Relevant
Interests in Westpac
Ordinary Shares
Number of Westpac
Share Rights
Westpac Banking Corporation
Current Directors
John McFarlane10,000-
Peter King131,886
1
346,795
2
Nerida Caesar13,583-
Alison Deans15,632-
Craig Dunn15,009-
Steven Harker11,605-
Chris Lynch13,090
3
-
Peter Marriott22,110-
Peter Nash15,260-
Margaret Seale22,960
4
-
Former Directors
Lindsay Maxsted25,592
5
-
5
Brian Hartzer130,545
6
-
6
Ewen Crouch79,690
7
-
7
Anita Fung-
8
-
8
1. Peter King’s interest in Westpac ordinary shares includes 23,697 restricted shares held under the Restricted Share Plan.
2. Share rights issued under the Long Term Variable Reward Plan.
3. Chris Lynch and his related bodies corporate also hold relevant interests in 1,137 Westpac Capital Notes 5.
4. Margaret Seale and her related bodies corporate also hold relevant interests in 3,220 Westpac Capital Notes 2.
5. Figure displayed is as at Lindsay Maxsted’s retirement date of 31 March 2020.
6. Figure displayed is as at Brian Hartzer’s retirement date of 2 December 2019.
7. Figure displayed is as at Ewen Crouch’s retirement date of 12 December 2019. Ewen Crouch and his related bodies corporate also held
relevant interests in 250 Westpac Capital Notes 2 as at 12 December 2019.
8. Figure displayed is at Anita Fung’s retirement date of 31 March 2020.
Note: Certain subsidiaries of Westpac offer a range of registered schemes. The Directors from time to time invest in these schemes and are
required to provide a statement to the ASX when any of their interests in these schemes change. ASIC has exempted each Director from
the obligation to notify the ASX of a relevant interest in a security that is an interest in BT Cash Management Trust (ARSN 087 531 539),
BT Premium Cash Fund (ARSN 089 299 730), Westpac Cash Management Trust (ARSN 088 187 928) or Advance Cash Multi-Blend Fund
(ARSN 094 113 050).

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67WESTPAC GROUP 2020 ANNUAL REPORT
Directors’ report
b) Indemnities and insurance
Under the Westpac Constitution, unless it is forbidden
or would be made void by statute, we indemnify any
person who is or has been a Director or Company
Secretary of Westpac and of each of our related bodies
corporate (except related bodies corporate listed on
a recognised stock exchange), any person who is or
has been an employee of Westpac or our subsidiaries
(except subsidiaries listed on a recognised stock
exchange), and any person who is or has been acting as
a responsible manager under the terms of an Australian
Financial Services Licence of any of Westpac’s wholly-
owned subsidiaries against every liability (other than a
liability for legal costs) incurred by each such person
in their capacity as director, company secretary,
employee or responsible manager, as the case may be;
and all legal costs incurred in defending or resisting
(or otherwise in connection with) proceedings, whether
civil or criminal or of an administrative or investigatory
nature, in which the person becomes involved because
of that capacity.
Each of the Directors named in this Directors’ report
and the Company Secretary of Westpac has the benefit
of this indemnity.
Consistent with shareholder approval at the 2000
Annual General Meeting, Westpac has entered into
a Deed of Access and Indemnity with each of the
Directors, which includes indemnification in identical
terms to that provided in the Westpac Constitution.
Westpac also executed a deed poll in September 2009
providing indemnification equivalent to that provided
under the Westpac Constitution to individuals who are
or have been acting as:
• statutory officers (other than as a director) of
Westpac;
• directors and other statutory officers of wholly-
owned subsidiaries of Westpac; and
• directors and statutory officers of other nominated
companies as approved by Westpac in accordance
with the terms of the deed poll and Westpac’s
Contractual Indemnity Policy.
Some employees of Westpac’s related bodies corporate
and responsible managers of Westpac and its related
bodies corporate are also currently covered by a deed
poll that was executed in November 2004, which is on
similar terms to the September 2009 deed poll.
The Westpac Constitution also permits us, to the extent
permitted by law, to pay or agree to pay premiums for
contracts insuring any person who is or has been a
Director or Company Secretary of Westpac or any of
its related bodies corporate against liability incurred by
that person in that capacity, including a liability for legal
costs, unless:
• we are forbidden by statute to pay or agree to pay
the premium; or
• the contract would, if we paid the premium, be
made void by statute.
Under the September 2009 deed poll, Westpac also
agrees to provide directors’ and officers’ liability
insurance to Directors of Westpac and Directors of
Westpac’s wholly-owned subsidiaries (except wholly-
owned subsidiaries listed on a recognised stock
exchange).
For the year ended 30 September 2020, the Group has
insurance cover which, in certain circumstances, will
provide reimbursement for amounts which we have to
pay under the indemnities set out above. That cover
is subject to the terms and conditions of the relevant
insurance, including but not limited to the limit of
indemnity provided by the insurance. The insurance
policies prohibit disclosure of the premium payable and
the nature of the liabilities covered.
c) Share rights outstanding
As at the date of this report there are 3,154,553 share
rights outstanding in relation to Westpac ordinary
shares. The latest dates for exercise of the share rights
range between 1 October 2021 and 1 July 2035.
Holders of outstanding share rights in relation to
Westpac ordinary shares do not have any rights under
the share rights to participate in any share issue or
interest of Westpac or any other body corporate.
d) Proceedings on behalf of Westpac
No application has been made and no proceedings have
been brought or intervened in, on behalf of Westpac
under section 237 of the Corporations Act.

68WESTPAC GROUP 2020 ANNUAL REPORT
Directors’ report
5. Environmental disclosure
As part of our 2020 Sustainability Strategy, we have set
targets for our environmental performance to 2020.
The Westpac Group’s environmental framework is made
up of:
• our Westpac Group Environment Policy;
• our Sustainability Risk Management Framework;
• our Climate Change Position Statement and 2023
Action Plan;
• our Responsible Sourcing Code of Conduct; and
• public reporting of our environmental performance.
We also participate in a number of voluntary initiatives
including the Dow Jones Sustainability Index, CDP
(formerly known as the Climate Disclosure Project),
the Equator Principles, the Principles for Responsible
Banking, the Principles for Responsible Investment, the
United Nations Global Compact, the RE100 and the
Australian Government Climate Active Carbon Neutral
Standard.
The National Greenhouse and Energy Reporting Act
2007 (NGER) came into effect in September 2007.
TheGroup reports on greenhouse gas emissions, energy
consumption and production under the NGER for the
period 1 July through 30 June each year.
Our operations are not subject to any other significant
environmental regulation under any law of the
Commonwealth of Australia or of any state or territory
of Australia. We may, however, become subject to
environmental regulation as a result of our lending
activities in the ordinary course of business and we
have policies in place to ensure that this potential risk is
addressed as part of our normal processes.
We are not aware of the Group incurring any material
liability (including for rectification costs) under any
environmental legislation.
Westpac has reported its performance against its
2020 Sustainability Strategy and provides an update
in the section titled ‘climate change’ in Section 1 of this
Annual Report. This section also includes disclosures
aligned to the recommendations of the Task Force on
climate-related Financial Disclosures (TCFD) (see pages
34 to 51).
Additional information about our environmental
performance, including information on our climate
change approach, details of our greenhouse gas
emissions profile and environmental footprint, and
progress against our environmental targets and carbon
neutral program are available on our website at https://
www.westpac.com.au/about-westpac/sustainability/.
6. Human rights supply chain disclosure
Westpac’s overall approach to human rights is set out in
our Human Rights Position Statement. Our Responsible
Sourcing Program, including the Responsible Sourcing
Code of Conduct and risk assessment methodology is
the primary framework for managing human rights in
our supply chain.
The Group is subject to the United Kingdom’s
Transparency in Supply Chains provisions under the
Modern Slavery Act 2015, which came into effect in
March 2015. Westpac publishes an annual statement
for the year ended 30 September to disclose the steps
taken during the year to help prevent modern slavery
from occurring within the Group’s operations and
supply chain.
The Group is subject to the Commonwealth of
Australia’s Modern Slavery Act 2018 (Cth), with the first
reporting year being 2020 and the first report being
due six months from the end of 30 September 2020.
Reporting under the Australia’s Modern Slavery Act
2018 (Cth) will satisfy our requirements to report under
the UK’s Modern Slavery Act 2015.
7. Rounding of amounts
Westpac is an entity to which ASIC Corporations
Instrument 2016/191 dated 24 March 2016, relating
to the rounding of amounts in directors’ reports and
financial reports, applies. Pursuant to this Instrument,
amounts in this Directors’ report and the accompanying
financial report have been rounded to the nearest
million dollars, unless indicated to the contrary.
8. Political engagement
In line with Westpac policy, no cash donations were
made to political parties during the financial year ended
30 September 2020.
In Australia, political expenditure for the financial year
ended 30 September 2020 was $141,495. This relates
to payment for participation in legitimate political
activities where they were assessed to be of direct
business relevance to Westpac. Such activities include
business observer programs attached to annual party
conferences, policy dialogue forums and other political
functions, such as speeches and events with industry
participants.
In New Zealand, political expenditure for the financial
year ended 30 September 2020 was NZD$9,175.

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2 GROUP PERFORMANCE
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4 SHAREHOLDER INFORMATION
69WESTPAC GROUP 2020 ANNUAL REPORT
Directors’ report
9. Directors’ meetings
Each Director attended the following meetings of the Board and Committees of the Board during the financial
year ended 30 September 2020. This table shows membership of standing Committees of the Board that operated
during the year ended 30 September 2020. From time to time the Board may form other committees or request
Directors to undertake specific extra duties.
Notes
Board
(Scheduled)
Board
(Un-
scheduled)
1
Audit
Committee
Risk
Committee
2
Legal,
Regulatory
&
Compliance
Committee
2
Nominations
&
Governance
Committee
3
Remuneration
Committee
Technology
Committee
Financial
Crime
Committee
4
Number of meetings
held during the year
DirectorABABABABABABABABAB
John McFarlane5441010n/an/a22n/an/a22n/an/an/an/an/an/a
Peter King6661212n/an/an/an/an/an/an/an/an/an/a33n/an/a
Nerida Caesar7772019n/an/a4433n/an/an/an/a4488
Alison Deans8772020n/an/a55
n/an/a446644n/an/a
Craig Dunn9772019n/an/a55n/an/a4466n/an/an/an/a
Steven Harker10772020554433n/an/an/an/an/an/a88
Christopher Lynch111133n/an/an/an/an/an/an/an/an/an/an/an/an/an/a
Peter Marriott1277202055553344n/an/a44n/an/a
Peter Nash1377202055553333n/an/an/an/a88
Margaret Seale14772020n/an/a4433n/an/a66n/an/a88
Former DirectorABA
BABABABABABABAB
Lindsay Maxsted154411112233n/an/a22n/an/an/an/an/an/a
Brian Hartzer161188n/an/an/an/an/an/an/an/an/an/a11n/an/a
Ewen Crouch1722991111n/an/a1111n/an/an/an/a
Anita Fung18431110n/an/a32n/an/an/an/an/an/an/an/an/an/a
A – Meetings eligible to attend as a member B – Meetings attended as a member
Unless otherwise stated, each Director has been a member, or the Chairman, of the relevant Committee for the
whole of the period from 1 October 2019.
1 Out of cycle Board meetings typically called for a special purpose that do not form part of the Board’s forward agenda.
2 Prior to 1 June 2020, the Board Risk Committee was known as the Board Risk & Compliance Committee. On 1 June 2020, the roles and
responsibilities of the Board Risk & Compliance Committee were revised, and the committee was renamed the Board Risk Committee.
At the same time, the Board established the Board Legal, Regulatory and Compliance Committee, which is a sub-committee of the
Board Risk Committee.
3 On 1 July 2020, the roles and responsibilities of the Board Nominations Committee were revised, and the committee was renamed the
Board Nominations & Governance Committee.
4 The Board Financial Crime Committee was established on 27 November 2019 and was dissolved on 1 June 2020 with its responsibilities
assumed by the Board Legal, Regulatory & Compliance Committee.
5 John McFarlane was appointed as a Director and member of the Board Risk Committee on 17 February 2020. He was appointed as
Board Chairman and Chairman of the Board Nominations & Governance Committee on 1 April 2020. He ceased as a member of the
Board Risk Committee on 1 June 2020.
6 Peter King was appointed as a Director and a member of the Board Technology Committee on 2 December 2019.
7 Nerida Caesar was appointed a member of the Board Financial Crime Committee on 27 November 2019. Nerida was also appointed
a member of the Board Legal, Regulatory & Compliance Committee on 1 June 2020 and ceased as a member of both the Board Risk
Committee and Board Financial Crime Committee on 1 June 2020. Member of the Board Technology Committee.
8 Chairman of the Board Technology Committee. Member of the Board Nominations & Governance Committee, Board Remuneration
Committee and the Board Risk Committee.
9 Chairman of the Board Remuneration Committee. Member of the Board Risk Committee and the Board Nominations &
Governance Committee.
10 Steven Harker was appointed a member of the Board Financial Crime Committee on 27 November 2019. He was also appointed a
member of the Board Legal, Regulatory & Compliance Committee and ceased as a member of both the Board Risk Committee and
Board Financial Crime Committee on 1 June 2020. Member of the Board Audit Committee.
11 Christopher Lynch was appointed as a Director and member of the Board Risk Committee and Board Audit Committee on
1 September 2020.
12 Peter Marriott ceased as Chairman of the Board Audit Committee on 12 December 2019. He was appointed as Chairman of the Board
Risk Committee on 12 December 2019. He was also appointed a member of the Board Legal, Regulatory & Compliance Committee on
1 June 2020. Member of Board Technology Committee and Board Nominations & Governance Committee.
13 Peter Nash was appointed as Chairman of the Board Financial Crime Committee on 27 November 2019. Peter Nash was appointed as
Chairman of the Board Audit Committee and a member of the Board Nominations & Governance Committee on 12 December 2019.
He was also appointed as Chairman of the Board Legal, Regulatory & Compliance Committee and ceased as Chairman of the Board
Financial Crime Committee on 1 June 2020 when that Committee was dissolved.
14 Margaret Seale was appointed a member of the Board Financial Crime Committee on 27 November 2019. She was also appointed a
member of the Board Legal, Regulatory & Compliance Committee and ceased as a member of both the Board Risk Committee and
Board Financial Crime Committee on 1 June 2020. Member of the Remuneration Committee.
15 Lindsay Maxsted retired from the Board and its Committees on 31 March 2020.
16 Brian Hartzer retired from the Board and its Committees on 2 December 2019.
17 Ewen Crouch retired from the Board and its Committees on 12 December 2019 at the completion of the 2019 Annual General Meeting.
18 Anita Fung retired from the Board and its Committees on 31 March 2020.

70WESTPAC GROUP 2020 ANNUAL REPORT
Directors’ report
Remuneration consequences for the AUSTRAC
matters
In June 2020, Westpac released the results of its
investigation into the Anti-Money Laundering and
Counter-Terrorism Financing (AML/CTF) compliance
issues that related to the AUSTRAC Statement of Claim
in November 2019. The consequences for the issues
included remuneration impacts and disciplinary actions.
While most remuneration consequences were applied
after the review of management accountability, there
were also remuneration adjustments applied in 2019
prior to the receipt of the AUSTRAC Statement of Claim
based on the information known by the Board at the
time.
As communicated to shareholders last year, we
implemented enhanced remuneration adjustment
guidelines as part of our response to the first strike.
These guidelines were used to support the Board’s
decision making during the year.
In summary, remuneration consequences were
applied to 38 individuals reflecting the level of direct
management responsibility or accountability and the
level of culpability for the compliance failures.
In addition, as the issues took place over many years, a
number of relevant individuals had since left Westpac’s
employment. For most of these former employees, a
remuneration adjustment was not possible as they did
not have unvested deferred variable reward on foot.
In aggregate, the amount of remuneration
consequences applied was $20.1 million
1
. This included
cancelling 2020 short term variable reward (STVR)
for the Group Executive team and, in some instances,
adjusting prior year awards that had yet to vest. Further
detail is set out in Section 3.1 of the Report.
10. Remuneration Report
Letter from the Chairman of the Board Remuneration Committee
Directors’ report
Dear shareholders,
On behalf of the Board, I am pleased to present
Westpac’s 2020 Remuneration Report.
Group performance and strategic priorities
2020 was a challenging year for Westpac, our
shareholders, employees, customers and the
communities in which we operate.
In particular, the sharp contraction in economic activity,
low interest rates and higher impairment charges
resulting from COVID-19 have impacted earnings. In
addition, the AUSTRAC matters and other remediation
costs further impacted financial performance.
The Board acknowledges the impact on shareholders
including the reduction in dividends. We recognise that
you felt deeply let down by the AUSTRAC matters. We
have taken action in response and we are committed to
doing better.
While the impacts of COVID-19 continue, the measures
we have put in place have allowed us to help our
customers and to keep credit flowing. Despite the
ongoing uncertainty, our balance sheet remains strong
and we have maintained our capital position and
liquidity ratios above regulatory requirements.
Importantly, the Group’s purpose and strategy have
been reset and clear priorities have been established.
Our transformation plans are underway with refreshed
leadership, changes in strategy and a detailed
program to address the Group’s shortcomings in risk
management.
Remuneration decisions will continue to play a key role
in supporting the changes underway.
2020 was
a challenging
year and we are
committed to
doing better
1. Includes the forfeiture of unvested STVR and LTVR for the former CEO as well as a range of downward remuneration adjustments, in
part or in full, to current and former executives and employees. Equity-based awards were valued using the five day volume weighted
average price (VWAP) of a Westpac share up to and including the date of receipt of the AUSTRAC Statement of Claim on 20 November
2019 ($26.20) and applying a 50% discount for LTVR subject to performance conditions. The cancellation of 2020 STVR for the CEO
and Group Executives was valued at 50% of target opportunity as at 2 April 2020.

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4 SHAREHOLDER INFORMATION
71WESTPAC GROUP 2020 ANNUAL REPORT
Directors’ report
Directors’ report
2020 remuneration outcomes
This year’s remuneration decisions, and the discretion
applied by the Board, reflect performance and risk
outcomes along with the outcomes experienced by
our stakeholders and feedback from the second strike
against the 2019 Remuneration Report.
In summary, key remuneration outcomes for 2020
include:
• Reductions in the value of 2020 Long Term
Variable Reward (LTVR) opportunity for the CEO
and Group Executives reflecting the change in
allocation methodology from a fair value to a face
value approach when determining the quantum of
performance share rights;
• The new CEO’s total target remuneration is 10.7%
lower than that of his predecessor whose total
target remuneration was reduced by 23% in October
2019;
• The cancellation of 2020 STVR for the CEO and
Group Executives to demonstrate collective
accountability for the financial crime outcomes in
Westpac’s businesses that led to the AUSTRAC
proceedings;
• Additional remuneration consequences were
applied to four Group Executives, including current
and former executives, for the AUSTRAC matters,
in addition to a range of other remuneration
consequences for other current and former
employees;
• The 2020 variable reward pool for the Group was
reduced by $139 million year on year, noting the
2019 pool was also significantly reduced;
• 2020 STVR for General Managers was cancelled in
light of performance and a challenging environment
created by COVID-19; and
• The 2017 LTVR lapsed in full for the fifth consecutive
year.
Second strike
At the 2019 Annual General Meeting, 35.9% of
shareholder votes were cast against the 2019
Remuneration Report resulting in a strike for a second
year in a row.
The second strike was a disappointing outcome
for the Board, particularly in light of the changes
made in response to the first strike against the 2018
Remuneration Report.
These included reducing total target remuneration
by 23% for the former CEO and 12.5% for Group
Executives for 2020 to reflect changes in the LTVR
allocation methodology, as well as applying downward
remuneration adjustments in light of material risk and
compliance matters.
In addition, the CEO’s 2019 STVR outcome was zero
as was the case for the former Chief Executive, BT
Financial Group and the former Chief Executive,
Consumer. Non-executive Director base fees for 2019
were also reduced by 20% as a one-off measure.
While most shareholders voted in favour of the report,
feedback we received from shareholders in relation to
the 2019 Remuneration Report included:
• discontent with the AUSTRAC Statement of Claim;
• negative sentiment following the reduction
in dividends in 2019 and overall poor Group
performance, including significant remediation
provisions for 2019; and
• a lack of support for 2019 STVR outcomes.
In 2020, the Chairman and I continued our consultation
with shareholders and shareholder advisory groups to
better understand shareholder views and to act on their
feedback.
This feedback has informed the decisions we have
made on remuneration outcomes throughout the year.
Leadership renewal
The leadership of the Group has changed significantly
since 2019.
Board changes
Lindsay Maxsted, Ewen Crouch, and Anita Fung retired
as Directors during the year and Alison Deans will retire
following the 2020 Annual General Meeting.
Chris Lynch and Michael Hawker were appointed to the
Board, in September and November 2020 respectively,
and we expect to appoint two more Board Directors in
the new year. All four appointments will diversify and
add to the Board’s skills.
The Board made changes to the structure of
its Committees. This included establishing a
Board Financial Crime Committee to oversee the
implementation of Westpac’s enhanced financial crime
program. The Board Legal, Regulatory & Compliance
Committee then replaced the Board Financial Crime
Committee.
Executive changes
Following Brian Hartzer stepping down from the role of
CEO, Peter King was appointed as Acting CEO effective
2 December 2019. Peter King was later appointed as
Managing Director & CEO on a permanent basis on 2
April 2020.
There have also been changes to executive Key
Management Personnel (KMP) including:
• Permanent appointments: Guil Lima (Chief
Executive, Business), Michael Rowland (Chief
Financial Officer), Les Vance (Group Executive,
Financial Crime, Compliance & Conduct) and Jason
Yetton (Chief Executive, Specialist Businesses,
Strategy & Transformation);
• Acting appointments and other changes: Richard
Burton (Acting Chief Executive, Consumer); Gary
Thursby (Acting Chief Financial Officer and later
the Acting Chief Information Officer); Alastair Welsh
(Acting Group Executive, Enterprise Services); Curt
Zuber (Acting Chief Executive, Westpac Institutional
Bank) and Rebecca Lim (Group General Counsel &
Enterprise Executive);
• Resignations: Craig Bright (Chief Information
Officer) and David Lindberg (Chief Executive,
Consumer); and
• Retirement: Lyn Cobley (Chief Executive, Westpac
Institutional Bank).

72WESTPAC GROUP 2020 ANNUAL REPORT
Directors’ report
A summary of remuneration decisions and outcomes
for 2020 is set out following this letter, along with
a summary of executive appointment and exit
arrangements.
In addition, we announced executive changes for 2021
including:
• Anthony Miller was appointed as Chief Executive,
Westpac Institutional Bank and Curt Zuber will retire;
• Chris de Bruin was appointed as Chief Executive,
Consumer;
• Scott Collary was appointed as Chief Operating
Officer and will bring together the Group Operations
and Group Technology divisions; and
• Gary Thursby will act as Chief Information Officer
until Scott Collary commences.
Other changes for 2021
The Board reviewed the LTVR performance hurdle
for 2021 and determined to reduce the number of
companies in the comparator group from 10 to 8
companies to provide a more focused and equally
weighted peer group.
In line with market practice, a percentile ranking vesting
schedule will also replace the composite index. Further
detail is set out in Section 4.2 of the Report.
Review of the executive remuneration structure
The Group commenced a review of the executive
remuneration structure and intends to implement
changes in 2022.
In addition to complying with APRA’s proposed
Prudential Standard CPS 511 (Remuneration), the key
objective supporting the review is to place greater
emphasis on rewarding long term, rather than
short term, achievement. The need to focus on the
longer term outcomes was highlighted during the
Royal Commission and aligns with feedback from
shareholders and regulators.
It is also important that the new structure assists in
attracting and retaining executive talent to deliver
on Westpac’s strategy in an intensely competitive
international market. We look forward to engaging with
shareholders in 2021 on the review.
On behalf of the Board, I invite you to read our
Remuneration Report and welcome your feedback. I
hope you find the summaries on the following pages to
be a useful reference when reading the broader Report.
Craig Dunn, Chairman
Board Remuneration Committee
In this Report
1. Key Management Personnel 75
2. Summary of the 2020 executive remuneration framework 76
3. 2020 remuneration outcomes and alignment to performance 78
4. Further detail on the executive variable reward structure 85
5. Remuneration governance 88
6. Non-executive Director remuneration 90
7. Statutory remuneration details 92

1 STRATEGIC REPORT
2 GROUP PERFORMANCE
3 FINANCIAL STATEMENTS
4 SHAREHOLDER INFORMATION
73WESTPAC GROUP 2020 ANNUAL REPORT
Directors’ report
Chief
Executive
Officer
• As part of his permanent appointment, the CEO’s target remuneration package for 2020 included fixed
remuneration of $2,400,000, target STVR of $2,400,000 (which may be awarded at between 0% and
150% of target depending on performance) and LTVR of $3,200,000. This represents a 10.7% reduction
relative to the former CEO, whose total target remuneration was reduced by 23% in October 2019.
• The CEO’s 2020 STVR outcome is zero.
• The 2017 LTVR outcome is zero. The LTVR lapsed in full because the relative TSR and cash ROE
performance hurdles were not achieved.
• In 2020, the CEO received $2.12 million in fixed remuneration and $0.29 million in deferred STVR
awarded in prior years that vested during the year, equalling $2.41 million in total realised remuneration
(i.e. take home pay). This outcome is 44% of the maximum remuneration he could have received for
the year.
Group
Executives
• No Group Executive will receive a STVR award for 2020, reflecting collective accountability for the
financial crime outcomes in Westpac’s businesses that led to the AUSTRAC proceedings. This applies
to Group Executives who joined the Group during the year and Acting Group Executives.
• The Board’s assessment of accountability and responsibility for the allegations in the AUSTRAC
Statement of Claim also resulted in two current Group Executives having their 2019 STVR outcome
reduced. One former Group Executive had all of their STVR from 2019 and prior years reduced to
zero, while another former Group Executive had all of their unvested STVR and LTVR reduced to zero.
• In addition, adjustments were made to a former Group Executive for other material risk and
compliance matters via reductions to unvested LTVR from prior years.
• A total target remuneration increase of 19% was approved for Carolyn McCann in line with the
increased scope and accountability associated with her expanded role, including the Customer
Outcomes and Risk Excellence program and remediation. Christine Parker's pay mix was also changed
to align to a control function pay mix.
• Temporary increases in total target remuneration were also approved for individuals in Acting Group
Executive roles.
• 2021 LTVR awards for the CEO and Group Executives will be granted at target levels in line with the
relevant target remuneration mix.
Non-
executive
Directors
• John McFarlane commenced as Chairman during the year and receives an annual fee of $890,000.
• The Board approved the fee structure for the Board Financial Crime Committee which was later
replaced by the Board Legal, Regulatory & Compliance Committee. All other Board fees remain
unchanged.
All
employees
• The 2020 variable reward pool was reduced by $139 million from 2019 to align with performance
and having regard to the challenging economic environment created by COVID-19. The 2019 pool
was also significantly reduced.
• The Board considered cancelling the variable reward pool altogether, however believed it was
important to respond to key retention concerns and reward the outstanding contribution of our
most critical employees to support the delivery of our strategy.
• 2020 STVR for General Managers was cancelled in light of performance and the challenging
environment created by COVID-19.
• In addition to the remuneration adjustments for Group Executives, downward remuneration
adjustments were approved for a range of current and former employees in response to the
AUSTRAC matters, as well as other material risk and compliance matters impacting the Group,
ranging from 10% to 100% of STVR.
• The Group managed 1,070 employee conduct matters in Australia in 2020, of which 108 employees
exited the business and 427 employees were subject to formal disciplinary outcomes.
Summary of remuneration decisions and actions

74WESTPAC GROUP 2020 ANNUAL REPORT
Directors’ report
Summary of appointment and exit arrangements
The tables below summarise the appointment and exit arrangements for executives as approved by the Board
during the year. Further details are provided in the Report.
New ExecutiveAppointment arrangements
Guil Lima
Chief Executive, Business
• Total target remuneration of $4,392,500 comprised of 26.5% fixed remuneration,
26.5% STVR and 47% LTVR.
• Pro rata 2020 LTVR grant.
• Buy out award
1
comprising cash and equity components totalling $1,693,151.
• Relocation benefits.
Michael Rowland
Chief Financial Officer
• Total target remuneration of $3,800,000 comprised of 32% fixed remuneration,
24% STVR and 44% LTVR.
• Not eligible for 2020 STVR or 2020 LTVR.
• Relocation benefits.
Les Vance
Group Executive, Financial
Crime, Compliance &
Conduct
• Total target remuneration of $2,800,000 comprised of 32% fixed remuneration,
24% STVR and 44% LTVR.
• Pro rata 2020 LTVR grant.
Jason Yetton
Chief Executive, Specialist
Businesses, Strategy &
Transformation
• Total target remuneration of $4,375,000 comprised of 26% fixed remuneration,
26% STVR and 48% LTVR.
• Pro rata 2020 LTVR grant.
Former ExecutiveExit arrangements
2
Brian Hartzer
Former Managing
Director & Chief
Executive Officer
• Received contractual requirements after stepping down from the role of
Managing Director & Chief Executive Officer.
• Unvested equity lapsed.
• Not eligible for 2020 STVR.
Craig Bright
Former Chief Information
Officer
• Served a mutually agreed reduced notice period.
• Unvested equity lapsed.
• Not eligible for 2020 STVR.
Lyn Cobley
Former Chief Executive,
Westpac Institutional
Bank
• Received contractual requirements in line with retirement.
• Unvested equity remains on foot.
• 2020 STVR cancelled.
David Lindberg
Former Chief Executive,
Consumer
• Served a mutually agreed reduced notice period.
• Unvested equity lapsed.
• 2020 STVR cancelled.
1. Provided in exceptional circumstances to compensate external hires for remuneration foregone from their previous employer on
resignation to join Westpac. Awards reflect the vesting profile at the previous employer and are subject to continued service and
adjustment.
2. Refer to Section 5.4 for an overview of employment agreements including termination provisions.

1 STRATEGIC REPORT
2 GROUP PERFORMANCE
3 FINANCIAL STATEMENTS
4 SHAREHOLDER INFORMATION
75WESTPAC GROUP 2020 ANNUAL REPORT
Directors’ report
1. Key Management Personnel
The remuneration of KMP is disclosed in the Report. In 2020, KMP comprised the CEO, Group Executives and
Non-executive Directors as set out in the table below. Disclosures related to former KMP that ceased in 2019 are
included in the 2019 Annual Report.
KMP is defined as those persons having authority and responsibility for planning, directing and controlling the
activities of an entity, directly or indirectly, including any director (whether executive or otherwise) of that entity.
NamePositionTerm as KMP
Managing Director & Chief Executive Officer
Peter King
1
Managing Director & Chief Executive OfficerFull Year
Group Executives
Rebecca Lim
2
Group General Counsel & Enterprise ExecutiveCeased in KMP role on 18 May 2020
Guil LimaChief Executive, BusinessCommenced in KMP role on 2 December 2019
Carolyn McCann
3
Group Executive, Customer & Corporate RelationsFull Year
David McLeanChief Executive Officer, Westpac New ZealandFull Year
Christine ParkerGroup Executive, Human ResourcesFull Year
Michael RowlandChief Financial OfficerCommenced in KMP role on 1 September 2020
David StephenChief Risk OfficerFull Year
Gary Thursby
4
Acting Chief Information OfficerFull Year
Les VanceGroup Executive, Financial Crime, Compliance & ConductCommenced in KMP role on 15 June 2020
Jason Yetton
5
Chief Executive, Specialist Businesses, Strategy & TransformationCommenced in KMP role on 4 May 2020
Acting Group Executives
Richard BurtonActing Chief Executive, ConsumerCommenced in KMP role on 15 June 2020
Alastair Welsh
6
Acting Group Executive, Enterprise ServicesFull Year
Curt Zuber
7
Acting Chief Executive, Westpac Institutional BankCommenced in KMP role on 1 July 2020
Former CEO and Group Executives
Brian HartzerManaging Director & Chief Executive OfficerCeased in KMP role on 2 December 2019
Craig BrightChief Information OfficerCeased in KMP role on 25 September 2020
Lyn CobleyChief Executive, Westpac Institutional BankCeased in KMP role on 1 July 2020
David LindbergChief Executive, ConsumerCeased in KMP role on 15 June 2020
Current Non-executive Directors
John McFarlane
8
ChairmanCommenced in KMP role on 17 February 2020
Nerida CaesarDirectorFull Year
Alison Deans
9
DirectorFull Year
Craig DunnDirectorFull Year
Steven HarkerDirectorFull Year
Chris Lynch
10
DirectorCommenced in KMP role on 1 September 2020
Peter MarriottDirectorFull Year
Peter NashDirectorFull Year
Margaret SealeDirectorFull Year
Former Non-executive Directors
Lindsay MaxstedChairmanRetired on 31 March 2020
Ewen CrouchDirectorRetired on 12 December 2019 following the
2019 Annual General Meeting
Anita FungDirectorRetired on 31 March 2020
1. Peter King was the Chief Financial Officer until 2 December 2019 when he was appointed as the Managing Director & Acting Chief
Executive Officer. Peter King was appointed as the Managing Director & Chief Executive Officer on 2 April 2020.
2. Rebecca Lim was the Group Executive, Legal & Secretariat until 16 December 2019 when she was appointed Enterprise Legal Counsel
focusing on AUSTRAC matters. Rebecca Lim resumed her Group General Counsel role when she was appointed the Group General
Counsel & Enterprise Executive on 18 May 2020.
3. Carolyn McCann's role and accountability was expanded during the year. This included accountability for the Customer Outcomes and
Risk Excellence program and remediation.
4. Gary Thursby was the Chief Operating Officer until 2 December 2019 when he was appointed as the Acting Chief Financial Officer. Gary
Thursby was appointed as the Acting Chief Information Officer on 25 September 2020.
5. Jason Yetton commenced as a Group Executive on 4 May and was appointed the Chief Executive, Specialist Businesses on 18 May.
Jason Yetton assumed additional responsibility from 1 September 2020 for strategy and transformation across the Group.
6. Alastair Welsh was the Acting Chief Executive, Business until 2 December 2019 when he was appointed as the Acting Group Executive,
Enterprise Services.
7. Curt Zuber will retire in 2021.
8. John McFarlane was appointed as a Non-executive Director on 17 February 2020 and was appointed as Chairman on 1 April 2020.
9. Alison Deans will retire from the Board following the 2020 Annual General Meeting.
10. Chris Lynch was appointed as a Non-executive Director on 1 September 2020.

76WESTPAC GROUP 2020 ANNUAL REPORT
Directors’ report
2. Summary of the 2020 executive remuneration framework
Our purpose and strategy are supported by our remuneration strategy, principles and frameworks.
Westpac’s purpose and strategy
Westpac’s purpose is to help Australians and New Zealanders succeed. Our strategy seeks to deliver on our
purpose by building deep and enduring customer relationships, being a leader in the community, being a place
where the best people want to work and, in so doing, delivering sustainable returns for shareholders.
Remuneration strategy
Westpac’s remuneration strategy is designed to attract and retain talented employees by rewarding them for
achieving high performance and delivering superior long-term results for our customers and shareholders, while
adhering to sound risk management and governance principles.
Remuneration principles
The remuneration strategy is underpinned by the following principles:
• align remuneration with customer and shareholder interests;
• support an appropriate risk culture and employee conduct;
• differentiate pay for behaviour and performance in line with our vision and strategy;
• provide market competitive and fair remuneration;
• enable recruitment and retention of talented employees;
• provide the ability to risk-adjust remuneration; and
• be simple, flexible and transparent.
Executive remuneration framework
Fixed remunerationSTVRLTVR
Purpose
Attract and retain high quality
executives through market
competitive and fair remuneration.
Ensure a portion of remuneration
is variable, at-risk and linked to the
delivery of agreed plan targets for
financial and non-financial measures
that support Westpac’s strategic
priorities. The STVR outcome can
range from 0% to 100% of target
depending on performance relative
to targets agreed at the beginning
of the year, or exceed 100% (up to a
maximum of 150% of target) when
exceptional performance is achieved.
Align executive accountability and
remuneration with the long-term
interests of shareholders by rewarding
the delivery of sustained Group
performance over the long term.
Delivery
Comprises cash salary, salary
sacrificed items and superannuation
contributions.
Awarded in cash (50%) and restricted
shares
1
(50%) based on an assessment
of performance over the preceding
year. Restricted shares vest in equal
portions after one and two years
following grant subject to continued
service and adjustment.
Awarded in performance share rights
which vest after four years subject
to the achievement of a relative
Total Shareholder Return (TSR)
performance hurdle, continued service
and adjustment.
Alignment to performance
Set with reference to market
benchmarks in the financial services
industry in Australia and globally as
well as the size, responsibilities and
complexity of the role, and the skills
and experience of the executive.
Individual performance impacts fixed
remuneration adjustments.
Performance is assessed using a
scorecard comprising:
• financial and non-financial
measures linked to Westpac’s key
strategic priorities; and
• a modifier to support the
adjustment of the outcome,
upwards or downwards (including
to zero), for behaviour, risk
and reputation matters, people
management matters, and any
other matters as determined by
the Board.
Performance is assessed against
relative TSR which is a comparative
measure of Westpac’s performance
relative to that of peers (measured
over four years).
Alignment to shareholders
Minimum shareholding requirements
equivalent to five times annual
fixed remuneration excluding
superannuation for the CEO and $1.2
million for Group Executives. These
requirements must be satisfied within
five years of appointment as the CEO
or as a Group Executive.
Half of the STVR award is deferred
into equity for a period of up to two
years to support alignment with
shareholders over the medium term.
The LTVR is delivered in equity and
the relative TSR performance hurdle
is aligned to long-term shareholder
returns and value creation.
1. The Group Executive outside of Australia receives deferred STVR as unhurdled share rights.

1 STRATEGIC REPORT
2 GROUP PERFORMANCE
3 FINANCIAL STATEMENTS
4 SHAREHOLDER INFORMATION
77WESTPAC GROUP 2020 ANNUAL REPORT
Directors’ report
2.1. Risk
Westpac’s remuneration arrangements are designed and managed to support effective risk management, the
generation of appropriate risk-based returns and the risk profile associated with our businesses which incorporate
products with varying complexity and maturity profiles.
• Remuneration outcomes: The performance of the Group and each division is reviewed and measured with
reference to how risk is managed in line with Westpac’s Risk Appetite Statement and the results influence
remuneration outcomes. The key risks that are considered include capital, credit, market, equity, liquidity,
insurance, risk culture, financial crime, reputation and sustainability, conduct, operational and compliance risk. In
addition, STVR outcomes are influenced by relevant risk-related matters through the Board’s application of the
scorecard modifier, which is informed by risk and compliance input independent of the business or functional
area.
• Variable reward pool: The Board determines the size of the variable reward pool each year. This is based on the
Group’s performance for the year and an assessment of how profit should be shared between shareholders and
employees while retaining sufficient capital for growth. The pool reflects financial performance. A broad range
of financial and non-financial risk measures and customer outcomes may also be taken into account when
allocating the pool.
• Mandatory risk and compliance requirements: Individuals are only eligible to receive a fixed remuneration
adjustment, STVR and LTVR where an individual has satisfied minimum requirement gates which require that
behaviours are in line with Westpac’s Values and Code of Conduct and that the individual has met the risk and
compliance requirements for their role and business.
• Remuneration adjustments for prior period matters: The Board may adjust all forms of unvested deferred
variable reward downward, including to zero, for matters arising from a prior period if circumstances or
information come to light which mean that in the Board’s view all or part of the award was not appropriate.
Having decided that a downward adjustment is appropriate and determined the amount of any adjustment,
typically the Board will first apply that adjustment against the STVR for the current performance period. In
instances where an adjustment to current year STVR is insufficient or unavailable, the Board may apply the
adjustment to unvested deferred variable reward. Clawback provides an additional mechanism to recover
vested deferred variable reward in certain limited circumstances for awards made in respect of performance
periods commencing on or after 1 October 2019. It is the Board’s current intention that clawback will only be
considered for relevant conduct that occurred on or after 1 October 2019.
2.2. 2020 target remuneration mix
1
30% fixed
remuneration
15% STVR
(cash component)
15% STVR
(deferred
component)
40% LTVR
Chief Executive Officer

26% fixed
remuneration
13% STVR
(cash component)
13% STVR
(deferred
component)
48% LTVR
Group Executives
2
1. Based on target STVR and LTVR (face value). Variation in the target remuneration mix by individual may apply.
2. Excludes Control Function Group Executives with a target remuneration mix comprised of 32% fixed remuneration, 24% STVR and
44% LTVR. This applies to the Group Executive, Customer & Corporate Relations, the Group Executive, Financial Crime, Compliance &
Conduct, the Chief Financial Officer, the Group Executive, Human Resources and the Chief Risk Officer.
2.3. Timeline of potential remuneration
20212022202320242020
Date eligible for vesting
Date granted
Date paid
Cash STVR award (50%)
Fixed remuneration
LTVR award subject to relative TSR performance (100%) – measured over 4 years
Deferred STVR award (25%)
Deferred STVR award (25%)

78WESTPAC GROUP 2020 ANNUAL REPORT
Directors’ report
3. 2020 remuneration outcomes and alignment to performance
3.1. Snapshot of 2020 remuneration outcomes
Remuneration
consequences
for the
AUSTRAC
matters
Remuneration consequences in response to information known by the Board, in relation to the
AUSTRAC matters at the time, were disclosed in the 2019 Remuneration Report. This included
consequences for the self-reported breaches to AUSTRAC which contributed to the zero 2019 STVR
outcome for the former CEO, the zero score for non-financial risk in 2019 STVR scorecards for Group
Executives, the downward adjustment to a portion of deferred STVR awarded in a prior year for a
former Group Executive and the 20% one off fee cut for Non-executive Directors in 2019.
Following the receipt of further information contained in the AUSTRAC Statement of Claim in
November 2019 (and release of the 2019 Remuneration Report), the Board determined to withhold 2019
STVR for Group Executives (and relevant General Managers and other employees), in part or in full,
while a review of management accountability associated with the allegations was completed.
While the AUSTRAC matters did not arise from any intentional wrong-doing or misconduct,
compliance failures did occur and it was appropriate that consequences be applied under the Westpac
Consequence Management Framework. This included further remuneration impacts and disciplinary
actions.
Remuneration consequences were applied in line with Westpac’s Remuneration Adjustment Guidelines.
The guidelines are designed to support consistency and fairness in determining remuneration
adjustments based on an assessment of the severity of the matter(s) as well as the level of individual
accountability or responsibility. Adjustments are then applied to individual’s at-risk remuneration based
on a pre-determined order of awards to ensure consistency and the ability to make further adjustments
in the future where required.
In summary, remuneration consequences were applied to 38 current and former employees via
reductions, either in part or in full, to:
• 2019 STVR;
• unvested equity awards granted in prior years; and
• if neither of the above were available for adjustment then adjustments were made to 2020 STVR.
In total, remuneration consequences amounted to $20.1 million¹. This included consequences applied
to prior year awards, including withheld 2019 STVR, of approximately $13.2 million and consequences
applied to 2020 STVR awards of approximately $6.9 million. Remuneration consequences for some
former employees were not possible given there was no deferred variable remuneration available to
adjust.
2020
STVR
The CEO recommended to the Board that he and the Group Executives receive no STVR for 2020 as a
consequence for the AUSTRAC matters as outlined above. The CEO and Board felt it was fundamental
that collective accountability for the financial crime outcomes in Westpac’s businesses which had led to
the action being taken by AUSTRAC be recognised.
The Board fully supported the CEO’s recommendation and determined that 2020 STVR be cancelled for
the CEO and Group Executives. In addition, 2020 STVR for General Managers was cancelled in light of
performance and the challenging environment created by COVID-19.
2017
LTVR
There is a zero vesting outcome under Westpac’s LTVR plan for the CEO and Group Executives in 2020.
The performance hurdles, comprising relative TSR and cash ROE
2
, were not achieved and the 2017 LTVR
award lapsed in full.
The table below shows the vesting outcome for the 2017 LTVR award to the CEO and Group Executives
that reached the end of its performance period in 2020.
Performance
hurdle
Performance
start dateTest date
Performance range
Outcome% Vested% LapsedThresholdMaximum
TSR
(50% of
award)
1 October
2016
1 October
2020
Equal to
composite TSR
index
Exceeds
composite TSR
index by 21.55
(i.e. 5% CAGR
3)
Westpac:
(27.35%)
Index:
(9.04%)
0%100%
ROE
(50% of
award)
1 October
2016
1 October
2020
4
13.50%14.50%12.47%0%100%
1. Includes the forfeiture of unvested STVR and LTVR for the former CEO as well as a range of downward remuneration adjustments,
in part or in full, to current and former executives and employees. Equity-based awards were valued using the five day VWAP of
a Westpac share up to and including the date of receipt of the AUSTRAC Statement of Claim on 20 November 2019 ($26.20) and
applying a 50% discount for LTVR subject to performance conditions. The cancellation of 2020 STVR for the CEO and Group
Executives was valued at 50% of target opportunity as at 2 April 2020.
2. Cash ROE is return on equity on a cash earnings basis. Cash earnings is not prepared in accordance with accounting standards and has
not been subject to audit. Refer to Note 2 to the Financial Statements for a description of cash earnings.
3. Compound annual growth rate.
4. The cash ROE hurdled performance share rights reached the end of their performance period on 30 September 2019 and were subject
to an additional one year holding lock through to 30 September 2020.

1 STRATEGIC REPORT
2 GROUP PERFORMANCE
3 FINANCIAL STATEMENTS
4 SHAREHOLDER INFORMATION
79WESTPAC GROUP 2020 ANNUAL REPORT
Directors’ report
3.2. Group performance
The table below summarises the key performance indicators for the Group and variable reward outcomes over the
last five years.
Years ended 30 September
20202019201820172016
CEO STVR award (% of maximum)0%0%52%74%65%
Average Group Executive STVR (% of maximum)0%37%58%73%63%
LTVR award (% vested)0%0%0%0%0%
Cash earnings
1
($m)2,6086,8498,0658,0627,822
Statutory earnings ($m)2,2906,7848,0957,9907,445
Economic profit/(loss)
2
($m)(3,579)1,6193,4443,7743,774
Cash ROE
2
3.83%10.75%13.00%13.77%13.99%
TSR – three years(35.43%)15.33%8.27%11.79%15.24%
TSR – five years(27.87%)14.58%25.67%81.32%100.72%
Dividends per Westpac share (cents)31174188188188
Cash earnings per Westpac share
1
$0.73$1.98$2.36$2.40$2.35
Share price – high$29.81$30.05$33.68$35.39$33.74
Share price – low$13.47$23.30$27.24$28.92$27.57
Share price – close$16.84$29.64$27.93$31.92$29.51
Cash earnings and CEO STVR award (2016 to 2020)
0%
25%
50%
75%
100%
125%
150%
6,000
6,300
6,600
6,900
7,200
7,800
7,500
8,100
CEO STVR award
(% of maximum)
Cash earnings ($m)
2016
Cash earnings ($m)
CEO STVR award (% of maximum)
2017201820192020
Return on equity and LTVR vesting (2016 to 2020)
0%
20%
40%
60%
100%
80%
0%
2%
4%
6%
8%
10%
12%
14%
16%
LTVR award (% vested)
Return on equity
2016
Return on equity (%)LTVR award (% vested)
2017201820192020
Total shareholder return (from 1 October 2015 to 30 September 2020)
-40%
-20%
-10%
0%
10%
20%
40%
-30%
30%
Total shareholder return
Oct 15Oct 16Oct 17Oct 18Oct 19Oct 20
Peer 1Peer 2Peer 3Westpac
1. Cash earnings is not prepared in accordance with AAS and has not been subject to audit. Refer to Note 2 to the Financial Statements
for a description of cash earnings.
2. Economic profit and cash ROE is derived from cash earnings.

80WESTPAC GROUP 2020 ANNUAL REPORT
Directors’ report
3.3. Total realised remuneration – Chief Executive Officer and Group Executives (unaudited)
The charts below summarise the actual remuneration paid and the equity vested
1
to the CEO and Group Executives relative
to the maximum remuneration that could have been received in 2020. This includes:
• fixed remuneration, including cash salary and superannuation contributions and excluding contractual provisions on
termination, paid during the year;
• cash STVR awarded in respect of the year;
• other cash payments made during the year;
• deferred STVR awarded in prior years that vested during the year; and
• LTVR awarded in prior years that vested during the year.
The charts also reference the maximum value of total remuneration foregone in 2020, including cash STVR not awarded
in respect of the year (based on the maximum STVR opportunity being 150% of target) and deferred STVR and LTVR
awarded in prior years that was forfeited, adjusted or lapsed during the year. For former executives, this also includes
unvested equity on foot that was forfeited or lapsed on termination that was subject to vesting in future years.
The value of deferred STVR and LTVR is based on the number of restricted shares or share rights multiplied by the five
day VWAP up to and including the date of vesting, forfeiture or lapse (as relevant). The value of equity differs from the
disclosure in Section 7. Buy out awards paid or vested during 2020 are set out in Section 3.4.
Total realised remuneration ($000)
Fixed remunerationCash STVR
Vesting of prior year LTVR awards
Vesting of prior year deferred STVR awards
2020 maximum realisable remuneration
Other cash payments
1. Equity that vested on 1 October 2020 is included in the 2020 figures. Equity that vested on 1 October 2019 is included in the 2019 figures.
2. The information relates to the period the individual was a KMP. Refer to Section 1 for further details.
3. 2019 cash STVR values have been adjusted to reflect consequences for the AUSTRAC matters. The values differ from Section 7 which
are disclosed in line with accounting standards.
0
01,000
2,0003,0001,000
2,000
4,0005,000
3,000
6,000
4,000
2020 total remuneration
Managing Director and Chief Executive Officer
Group Executives
Realised: 969
Foregone (max): 726
Guil Lima
2
Chief Executive,
Business
2020
969
Realised: 817
Foregone (max): 1,362
Rebecca Lim
2,3
Group General
Counsel and
Enterprise
Executive
950188
2020
2019
409
601216
Peter King
Managing Director
and Chief
Executive O
cer
1,288
2,121
2020
2019
601
294
327
Realised: 963
Foregone (max): 452
Carolyn McCann
Group Executive,
Customer and
Corporate Relations
195
153
2020
2019
740
810
260
Realised: 1,381
Foregone (max): 1,926
David McLean
Chief Executive
Ocer,
Westpac
New Zealand
1,029
1,026
2020
2019
538427
355
Realised: 1,205
Foregone (max): 1,719
Christine Parker
Group Executive,
Human Resources
884
946
2020
2019
501315
259
Realised: 2,415
Foregone (max): 3,039
Realised: 101
Foregone (max): n/a
Michael Rowland
2

Chief Financial
Ocer
2020
101
Peter King
Managing Director
&
Chief Executive Officer
Rebecca Lim
2,3
Group General Counsel
&
Enterprise Executive
Carolyn McCann
Group Executive,
Customer &
Corporate Relations
David McLean
Chief Executive Officer,
Westpac New Zealand
Christine Parker
Group Executive,
Human Resources
Guil Lima
2
Chief Executive,
Business
Michael Rowland
2

Chief Financial Officer

1 STRATEGIC REPORT
2 GROUP PERFORMANCE
3 FINANCIAL STATEMENTS
4 SHAREHOLDER INFORMATION
81WESTPAC GROUP 2020 ANNUAL REPORT
Directors’ report
01,0002,0003,0004,0002020 total remuneration
Former Chief Executive Officer and Group Executives
Realised: 822
Foregone (max): 6,040
David Lindberg
2
Chief Executive,
Consumer
2020
2019
1,124
822
516
125
Realised: 847
Foregone (max): 2,436
Realised: 1,547
Foregone (max): 1,763
Gary Thursby
Acting Chief
Information
Ocer
900
2020
2019
467315
1,179248
120
Realised: 263
Foregone (max): 147
Les Vance
2
Group Executive,
Financial Crime,
Compliance
and Conduct
00
2020
263
Realised: 463
Foregone (max): 358
Jason Yetton
2

Chief Executive,
Specialist Businesses,
Strategy and
Transformation
467
2020
463
Realised: 250
Foregone (max): 184
Richard Burton
2
Acting Chief
Executive,
Consumer
250
2020
467315
Realised: 296
Foregone (max): 282
Curt Zuber
2
Acting Chief
Executive,
Westpac
Institutional Bank
296
2020
Realised: 910
Foregone (max): 625
Alastair Welsh
Acting Group
Executive,
Enterprise Services
2020
2019
13576
402
834
Lyn Cobley
2,4
Chief Executive,
Westpac
Institutional Bank
2020
2019
1,122
847
582
0
1,0002,0003,0005,0004,000
Realised: 463
Foregone (max): 16,063
Realised: 1,971
Foregone (max): 1,012
David Stephen
Chief Risk
Ocer
2020
2019
1,800331
1,807164
Realised: 1,210
Foregone (max): 2,952
Craig Bright
2
Chief
Information
Ocer
2020
2019
1,008381
1,210
Brian Hartzer
2
Managing Director
& Chief Executive
O
cer
2,686
463
2020
2019
1,329
0
6,0003,0009,00012,00018,00015,000
6,000
4. 2020 other cash payments include the cash portion of a project bonus approved by the Board on 5 March 2020 and paid to Gary Thursby
following the successful divestment of part of the BT Financial Group and the Wealth Reset. This relates to work mostly completed in 2019 in
Gary Thursby's previous role as Chief Operating Officer.
5. 2020 fixed remuneration excludes contractual provisions on termination to 30 September 2020 paid after the executive ceased to be a KMP.
This includes $2.223 million for Brian Hartzer, $280,500 for Lyn Cobley and $290,000 for David Lindberg.
6. 2020 maximum remuneration foregone includes unvested equity forfeited or lapsed on termination that was subject to vesting in future years.
7. 2020 maximum remuneration foregone excludes adjustments to 2019 deferred STVR before it was granted as a result of the AUSTRAC
matters. 2020 maximum remuneration foregone includes adjustments to unvested STVR from prior years as a result of the AUSTRAC matters
and unvested LTVR adjusted as a result of other material risk and compliance matters. The values differ from Section 7 which are disclosed in
line with accounting standards.
Acting Group Executives
David Stephen³
Chief Risk Officer
Gary Thursby⁴
Acting Chief
Information Officer
Les Vance
2
Group Executive,
Financial Crime,
Compliance
& Conduct
Jason Yetton
2

Chief Executive,
Specialist Businesses,
Strategy &
Transformation
Richard Burton
2
Acting
Chief Executive,
Consumer
Curt Zuber
2

Acting Chief Executive,
Westpac Institutional
Bank
Brian Hartzer
2,5,6

Managing Director &
Chief Executive Officer
Craig Bright
2,6

Chief Information
Officer
Lyn Cobley
2,3,5,7

Chief Executive,
Westpac Institutional
Bank
David Lindberg
2,5,6

Chief Executive,
Consumer
Alastair Welsh
Acting Group
Executive,
Enterprise Services

82WESTPAC GROUP 2020 ANNUAL REPORT
Directors’ report
3.4. Buy out awards paid or vested during 2020
Buy out awards are provided in exceptional circumstances to compensate external hires for remuneration foregone
from their previous employer on resignation to join Westpac. These awards reflect the vesting profile at the
previous employer and are subject to continued service and adjustment.
In addition to the total remuneration realised in Section 3.3, the following buy out awards were paid or vested during the
year:
• Craig Bright had 9,152, 13,090, 8,538 and 9,748 restricted shares granted under the Restricted Share Plan which vested
in December 2019, February 2020, June 2020 and August 2020 respectively;
• David Stephen had 67,965 restricted shares granted under the Restricted Share Plan which vested in March 2020; and
• Guil Lima received a cash buy out award of $533,180.
3.5. 2020 short term variable reward and Group scorecard
The Group’s priorities are set out in the Group scorecard, which forms part of the CEO’s scorecard and is cascaded
to Group Executive scorecards in combination with other divisional or functional measures.
In April 2020, the CEO recommended to the Board that he and the Group Executives receive no STVR for 2020
to demonstrate collective accountability for the financial crime outcomes in Westpac’s businesses that led to the
AUSTRAC proceedings. The Board supported the CEO’s recommendation and determined that 2020 STVR be
cancelled for the CEO and Group Executives. Subsequently, 2020 STVR was also cancelled for General Managers in
light of performance and the challenging environment created by COVID-19.
Notwithstanding the zero outcomes for 2020 STVR, the Board completed an assessment of performance against
the 2020 Group scorecard. The overall outcome was 35% of target.
Performance measures and targets in the Group scorecard were not adjusted to reflect the impacts of COVID-19.
The Board’s preference is to make discretionary adjustments within each focus area of the scorecard where
the initial score is not considered to appropriately reflect performance. The discretion applied by the Board in
determining these adjustments reflect performance and risk outcomes for the year along with the outcomes
experienced by our stakeholders. A summary of the Group scorecard performance assessment is provided below.
Since the appointment of the new CEO, the Group’s purpose has been reset and clear priorities have been
established. Good progress has been made in relation to transformation plans with refreshed leadership, changes in
strategy and a detailed program to address the Group’s shortcomings in risk management.
Group scorecard - short term variable reward
Group financial performance (40%)
Performance measurement is based on cash earnings growth, core earnings growth
and cash ROE against plan.
• Cash ROE was 3.83%, down from 10.75% in 2019 and lower than the 11.11% target.
• Group Core Earnings growth was down 25% year on year and below the target
of 12.6%. Group Cash Earnings growth was down 62% year on year and below the
target of 10.4%.
• Financial performance was impacted by significant increases in impairment
charges, costs associated with the AUSTRAC matters, intangible write-downs,
lower economic activity and low interest rates.
[Non-financial]
0%100%150%
0% of target
Balance sheet risk management (10%)
Performance measurement is based on operating performance relative to the Risk
Appetite Statement as measured by capital, funding and liquidity management.
• Our Common Equity Tier 1 (CET1) ratio was 11.13%, the Net Stable Funding Ratio
was 122% and the Liquidity Coverage Ratio was 150%. These outcomes were above
target.
• While the CET1 result was above target, it was partly achieved through the raising
of capital and reduction in dividends. Given the impact of these decisions on
shareholders, the CET1 result was assessed as nil.
0%100%150%
0%100%150%
50% of target
TargetMaximumOutcome

1 STRATEGIC REPORT
2 GROUP PERFORMANCE
3 FINANCIAL STATEMENTS
4 SHAREHOLDER INFORMATION
83WESTPAC GROUP 2020 ANNUAL REPORT
Directors’ report
Risk management (20%)
Performance measurement is based on closing out the recommendations from
the Culture, Governance and Accountability (CGA) review, completing remediation
programs, improving risk management capability and culture, and strengthening
financial crime capability.
Progress was made on some key milestones to improve risk management:
• Implemented 37 of 45 recommendations from the CGA review;
• Mobilised the Customer Outcomes and Risk Excellence program following the
reassessment of the CGA review in light of the AUSTRAC Statement of Claim;
• Programs to improve the risk management of financial crime with early milestones
delivered;
• Improved tools and processes developed to support a stronger and more mature
risk culture; and
• Solid progress on remediation with substantial payments to customers,
notwithstanding an increase in provisions.
The overall result was adjusted downwards as the management of non-financial risk
was below expectations. The AUSTRAC matters resulted in the cancellation of 2020
STVR for the CEO and Group Executives.
0%100%150%
0%100%150%
35% of target
Customer franchise (10%)
Performance measurement is based on employee engagement, business simplification,
net promoter score (NPS) and progress on addressing the root causes of customer
pain points.
• Reduced products with a focus on simplification and automation.
• The Business division maintained the Number 1 ranking on NPS.
• The Consumer division maintained its Number 3 ranking on NPS with
improvements in mortgage processing required.
• Reduced average time to close complaints with 56% solved on the same day.
Reduced the number of long-dated complaints by 93%.
• Significant support provided to customers impacted by bushfires, floods and
COVID-19.
• Employee engagement reached the target level which was considered a strong
performance having regard to environmental factors.
[Non-financial]
0%100%150%
60% of target
Digital transformation (10%)
Performance measurement is based on the delivery of digital and data initiatives.
• Delivered customer benefits and improved strategic capability, including the
Customer Service Hub and the new mobile banking application.
• Improved system stability with major outages down more than 50% and a lift in
network speed.
• Rapid and effective response to COVID-19 including new working arrangements,
and digitising processes (such as mortgage deferral requests).
• Digitally active customers in the Consumer division up by 91,000 and 25% of all
sales in the Business division are through digital channels.
0%100%150%
70% of target
Operating model (10%)
Performance measurement is based on the delivery of the new operating model,
culture roadmap and digital partnership initiatives.
• Refreshed the Executive Team structure, roles and accountabilities.
• Commenced implementing a Lines of Business operating model.
• Developed a Culture Roadmap and refreshed the Group’s Purpose, Values and
Behaviours.
• Commenced the pilot of a new culture survey tool (Organisational Health Index).
• Digital and fintech investments delivered significant value.
0%100%150%
0%
100%150%

100%
of target

84WESTPAC GROUP 2020 ANNUAL REPORT
Directors’ report
3.6. Variable reward awarded for 2020 (unaudited)
The table below shows the variable reward awarded to the CEO and Group Executives for 2020, including:
• STVR outcomes for 2020 (including the cash and deferred equity components); and
• equity granted under the 2020 LTVR plan
1
.
2020 STVR for the CEO and Group Executives was cancelled to demonstrate collective accountability for the
financial crime outcomes in Westpac’s businesses that led to the AUSTRAC proceedings.
The final value of equity received will depend on the share price at the time of vesting and the number of
restricted shares or share rights that vest subject to performance hurdles (where applicable), continued service
and remuneration adjustments. The value of equity differs from the disclosure in Section 7 which provides the
annualised accounting value for unvested equity awards prepared in accordance with accounting standards.
2020 STVR award
2020 LTVR
award
Name
Target
STVR
opportunity
(pro rata)
Maximum
STVR
opportunity
(pro rata)
STVR
award (as %
of target)
STVR
award
(as % of
maximum)
STVR
outcome
Maximum
STVR
foregone
Face value
1

(pro rata)
Managing Director & Chief Executive Officer
Peter King 2,081,333 3,122,000 0%0%0 3,122,000 2,657,167
Group Executives
Rebecca Lim
2
Group General Counsel & Enterprise
Executive 468,750 703,125 0%0%0 703,125 1,318,750
Guil Lima
2
Chief Executive, Business 966,667 1,450,000 0%0%0 1,450,000 1,727,083
Carolyn McCann
Group Executive, Customer & Corporate
Relations 602,917 904,375 0%0%0 904,375 1,126,276
David McLean
Chief Executive Officer, Westpac New
Zealand 1,025,736 1,538,604 0%0%0 1,538,604 1,855,376
Christine Parker
Group Executive, Human Resources 850,000 1,275,000 0%0%0 1,275,000 1,562,000
Michael Rowland
2
Chief Financial Officer----- - -
David Stephen
Chief Risk Officer 1,350,000 2,025,000 0%0%0 2,025,000 2,559,375
Gary Thursby
3
Acting Chief Information Officer 1,004,167 1,506,250 0%0%0 1,506,250 1,809,896
Les Vance
2
Group Executive, Financial Crime, Compliance
& Conduct 195,417
293,125 0%0%0 293,126 358,750
Jason Yetton
2
Chief Executive, Specialist Businesses,
Strategy & Transformation 477,083 715,625 0%0%0 715,625 879,167
Acting Group Executives
Richard Burton
2
Acting Chief Executive, Consumer 245,000 367,500 0%0%0 367,500 45,208
Alastair Welsh
Acting Group Executive, Enterprise Services 833,333 1,250,000 0%0%0 1,250,000 416,667
Curt Zuber
2
Acting Chief Executive, Westpac Institutional
Bank 375,000 562,500 0%0%0 562,500 181,000
Former CEO and Group Executives
Brian Hartzer
2
Managing Director & Chief Executive Officer 447,667 671,500 --- 671,500 -
Craig Bright
2,4
Chief Information Officer 561,000 841,500 --- 841,500 2,214,000
Lyn Cobley
2
Chief Executive, Westpac Institutional Bank 841,500 1,262,250 0%0%0 1,262,250 2,029,500
David Lindberg
2,4
Chief Executive, Consumer 821,667 1,232,500 0%0%0 1,232,500 2,072,500
Average STVR award (%)0%0%
1. Calculated by multiplying the number of rights by the five day VWAP up to and including the grant date. The five day VWAP was $29.87
for awards made in December 2020 and $16.14 for awards made in July 2020. For Peter King, this excludes the additional 2020 LTVR
award of $200,000 following his appointment as CEO which is subject to shareholder approval at the 2020 Annual General Meeting.
2. The information relates to the period the individual was a KMP. Refer to Section 1 for further details.
3. Excludes Gary Thursby’s project bonus of $240,000 (50% cash and 50% deferred equity) approved by the Board on 5 March 2020 relating
to the successful divestment of part of the BT Financial Group and the Wealth Reset. This work was mostly completed in 2019 in Gary
Thursby's previous role as Chief Operating Officer.
4. Excludes adjustments to unvested 2020 LTVR, and other equity based awards, that were forfeited or lapsed on termination.

1 STRATEGIC REPORT
2 GROUP PERFORMANCE
3 FINANCIAL STATEMENTS
4 SHAREHOLDER INFORMATION
85WESTPAC GROUP 2020 ANNUAL REPORT
Directors’ report
4. Further detail on the executive variable reward structure
This section provides further details of the 2020 STVR and LTVR plans.
4.1. Short term variable reward
The table below sets out the key design features of the 2020 STVR plan.
Short term variable reward plan
Plan structure50% of STVR is awarded in cash and 50% is deferred into equity in the form of restricted shares
(or unhurdled share rights for the Group Executive based outside Australia).
One restricted share provides the holder with one ordinary share at no cost subject to trading restrictions
until the time of vesting.
One unhurdled share right entitles the holder to one ordinary share at the time of vesting with no
exercise cost.
Dividends are paid on restricted shares from the grant date.
Target and maximum
opportunity
The target opportunity for the CEO and Group Executives is expressed as a percentage of fixed
remuneration. The target opportunity is set by the Board following recommendation from the Board
Remuneration Committee which considers a range of factors including market competitiveness and the
nature of the role.
Target STVR
(100% of fixed remuneration for the CEO and between
74% and 100% of fixed remuneration for Group Executives)
Maximum STVR
(150% of target STVR)
0%100%150%
Remuneration at-risk
Westpac’s STVR is designed to award the target opportunity on
delivery of agreed plan targets for financial and non-financial
measures that support Westpac’s strategic priorities. It is possible
for the outcome to fall below the target amount depending on
performance relative to targets agreed at the beginning of the
year. For 2020, STVR was cancelled for the CEO and Group
Executives.
Reward for exceptional
performance
There is the possibility to award
up to a maximum of 150% of
the STVR target
in circumstances where
exceptional outcomes are
achieved that are also in line
with the Group’s risk appetite
and where an individual
has acted in a manner that
exemplifies the encouraged
behaviours.
Performance measuresSTVR awards are determined based on performance against a scorecard which is designed to align
with shareholder interests by setting stretching measures and seeks to ensure that our customers’ and
employees’ needs are met and appropriate risk settings are maintained.
The scorecard is split into two sections:
• Focus areas: Performance is assessed against a balance of financial and non-financial measures that
are imperative to supporting the effective execution of Westpac’s strategy; and
• Modifier: The Board and Board Remuneration Committee recognise that performance measures may
not always appropriately reflect overall performance of the Group. The modifier supports adjustment
of the outcome, upwards or downwards (including to zero), for behaviour, risk and reputation matters,
people management matters, and any other matters that the Board feels are not fully reflected in the
focus areas.
Further information on the 2020 Group scorecard is provided in Section 3.5.
Deferred STVR awards recognise past performance and are subject to continued service and adjustment.
Deferral period50% of STVR is deferred into equity for a period of up to two years, which aligns executive remuneration
with shareholder interests and acts as a retention mechanism. The deferral period also allows the Board
to apply discretion to reduce deferred components where necessary.
Deferred STVR vests in equal portions one and two years after the grant date, subject to continued
service and adjustment.
Delayed vestingThe Board has discretion (subject to law) to delay vesting of equity-based awards if the individual is
under investigation for misconduct, the subject of, or implicated in legal or regulatory proceedings, if the
Board is considering an adjustment or if otherwise required by law.
Remuneration adjustments for
prior period matters
The Board has discretion to adjust current year STVR.
The Board may also adjust unvested deferred STVR downwards, including to zero, if circumstances
or information come to light which mean that in the Board’s view all or part of the award was not
appropriate. The Board will typically apply the adjustment to unvested STVR where an adjustment to
current year STVR is considered insufficient or unavailable.
Clawback applies, to the extent legally permissible and practicable, to deferred STVR awarded in respect
of performance periods commencing on or after 1 October 2019 for up to seven years from the date
of grant. Clawback may occur in circumstances of serious or gross misconduct, fraud, bribery, severe
reputational damage, and any other deliberate, reckless or unlawful conduct that may have a serious
adverse impact on Westpac, its customers or its people which has resulted in dismissal or the Board
considers at its discretion would have justified the dismissal of the relevant executive or where otherwise
required by law. It is the Board’s current intention that clawback will only be considered for relevant
conduct that occurred on or after 1 October 2019.
Changes for 2021There are no changes to the 2021 STVR plan.

86WESTPAC GROUP 2020 ANNUAL REPORT
Directors’ report
4.2. Long term variable reward
The table below sets out the key design features of the 2020 LTVR Plan awarded in December 2019 and changes
for the 2021 LTVR plan.
Long term variable reward plan
Plan structureLTVR is awarded in performance share rights which vest after four years subject to the achievement of
performance hurdles, continued service and adjustment.
One performance share right entitles the holder to one ordinary share at the time of vesting with no exercise
cost. Dividends are not accumulated on performance share rights.
Award opportunityThe value of LTVR awarded to the CEO and Group Executives is expressed as a percentage of fixed
remuneration. The value of LTVR is set by the Board following recommendation from the Board Remuneration
Committee which considers a range of factors including market competitiveness and the nature of the role.
The face value of the LTVR opportunity for the CEO for 2020 is 133% of fixed remuneration, and the face value
of LTVR opportunities for the Group Executives (excluding Acting Group Executives) range between 137% and
183% of fixed remuneration.
Allocation
methodology
The number of performance share rights each executive receives will be determined by dividing the dollar value
of the LTVR award by the face value of performance share rights. The face value is the five day VWAP up to the
commencement of the performance period (which is 1 October 2020 for the 2020 LTVR grant).
Performance hurdlesLTVR is subject to a relative TSR performance hurdle that aims to achieve long-term growth in shareholders’
value and support alignment between executive reward and shareholder interests.
Performance share rights only vest where Westpac’s TSR exceeds a composite index. Relative TSR is a measure
of the total return delivered to shareholders over the performance period assuming dividends are reinvested,
relative to that of peers.
The performance hurdle measures Westpac’s TSR performance over a four year period against a composite
index. The composite index is comprised of a group of 10 peers with more weight placed on the three other
major Australian banks.
At the end of the performance period, TSR performance of each index company is multiplied by its index
weighting, and the total of the 10 scores determines the composite TSR index. 50% will vest if Westpac’s TSR
performance equals the composite TSR index. For 100% to vest, Westpac’s TSR outcome must exceed the index
by 21.55% (i.e. 5% compound annual growth over the four year performance period) as outlined below. Vesting
occurs on a straight line basis between 50% and 100%.
Westpac’s TSR performanceIndicative vesting percentage
Composite TSR index exceeded by 21.55 or more
(i.e. 5% compound annual growth in TSR over the four year period)
100%
Equal to composite TSR index50%
Below composite TSR index0%
The comparator group of companies in the 2020 composite TSR index and their relative weightings are:
AMP (7.14%), ANZ Banking Group (16.67%), Bank of Queensland (7.14%), Bendigo and Adelaide Bank (7.14%),
Challenger (7.14%), Commonwealth Bank of Australia (16.67%), National Australia Bank (16.67%), Macquarie
Group (7.14%), Perpetual (7.14%) and Suncorp Group (7.14%).
Assessment of
performance
outcomes
The relative TSR result is calculated independently to ensure external objectivity before being provided to the
Board to determine the vesting outcome.
The Board may exercise discretion in determining the final vesting outcome, for example where relative TSR
performance hurdles have been met but the absolute TSR outcome is negative.
Performance share rights subject to relative TSR performance will be tested against the performance hurdle on
30 September 2024.
No re-testingThere is no re-testing. Awards that have not vested after the measurement period lapse immediately.
Early vestingUnvested awards may vest before a test date if the executive is no longer employed by the Group due to death
or disability (subject to law). In these cases, vesting is generally not subject to the performance hurdles being
met.
Delayed vestingThe Board has discretion (subject to law) to delay vesting of equity-based awards if the individual is under
investigation for misconduct, or the subject of or implicated in legal or regulatory proceedings, if the Board is
considering an adjustment or if otherwise required by law.

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2 GROUP PERFORMANCE
3 FINANCIAL STATEMENTS
4 SHAREHOLDER INFORMATION
87WESTPAC GROUP 2020 ANNUAL REPORT
Directors’ report
Long term variable reward plan
Treatment of awards
on cessation of
employment
The Board has the discretion to determine the treatment of unvested performance share rights where the CEO
or a Group Executive resigns, retires or otherwise leaves the Group before vesting occurs.
The Board may choose to accelerate the vesting of performance share rights or leave the awards on foot for the
remainder of the performance period.
In exercising its discretion, the Board will consider relevant circumstances including those relating to the
departure.
The Board also has the ability to adjust the number of performance share rights downwards (including to zero)
in the event of misconduct resulting in significant financial and/or reputational impact to the Group and in other
circumstances considered appropriate.
Where an executive acts fraudulently or dishonestly, or is in material breach of their obligations under the
relevant equity plan, unexercised performance share rights (whether vested or unvested) will be forfeited unless
the Board determines otherwise.
Remuneration
adjustments for prior
period matters
The Board has discretion to adjust LTVR which is awarded on a prospective basis.
The Board may adjust unvested LTVR downwards, including to zero, if circumstances or information come to
light which mean that in the Board’s view all or part of the award was not appropriate. The Board will typically
apply the adjustment to unvested LTVR where an adjustment to current and deferred STVR is considered
insufficient or unavailable.
The Board may also determine to apply clawback to LTVR which has previously vested. Clawback applies, to
the extent legally permissible and practicable, to deferred LTVR awarded in respect of performance periods
commencing on or after 1 October 2019 for up to seven years from the date of grant. Clawback may occur
in circumstances of serious or gross misconduct, fraud, bribery, severe reputational damage, and any other
deliberate, reckless or unlawful conduct that may have a serious adverse impact on Westpac, its customers
or its people which has resulted in dismissal or the Board considers at its discretion would have justified the
dismissal of the relevant executive or where otherwise required by law. It is the Board’s current intention that
clawback will only be considered for relevant conduct that occurred on or after 1 October 2019.
Changes for 2021In line with market practice, a percentile ranking vesting schedule will replace the composite index to assess
relative TSR performance as follows:
Westpac’s TSR performanceIndicative vesting percentage
At the 75th percentile or higher100%
Between the median and the 75th percentilePro-rata vesting between 50% and 100%
At the median50%
Below the median0%
In addition, the number of companies in the comparator group will be reduced from 10 to 8 to provide a more
focused and equally weighted comparator group including AMP, ANZ Banking Group, Bank of Queensland,
Bendigo and Adelaide Bank, Commonwealth Bank of Australia, National Australia Bank, Macquarie Group and
Suncorp Group.
The table below details other LTVR awards currently on foot.
Vesting datePerformance hurdlesFurther detail
2018 LTVR award30 September 2021
• Relative TSR performance against a weighted composite
index of comparator companies (50%)
• Average cash ROE performance (50%)
Refer to the 2018
Annual Report
2019 LTVR award30 September 2022
• Relative TSR performance against a weighted composite
index of comparator companies (50%)
• Average cash ROE performance (50%)
Refer to the 2019
Annual Report

88WESTPAC GROUP 2020 ANNUAL REPORT
Directors’ report
5. Remuneration governance
5.1. Group Remuneration Policy and governance
The Group Remuneration Policy sets out the mandatory requirements to be reflected in the design and management
of remuneration arrangements across Westpac.
The policy supports Westpac’s vision by requiring the design and management of remuneration to align with
stakeholder interests, support long-term financial soundness and encourage prudent risk management. The policy is
supported by an established governance structure, plans and frameworks.
Board
The Board provides strategic guidance for the Group and has oversight of management’s implementation of
Westpac’s strategic initiatives. The Board has accountability for reviewing and approving remuneration for select
groups of employees.
Without limiting its role, the Board approves (following recommendation from the Board Remuneration
Committee where applicable) corporate goals and objectives relevant to the remuneration of the CEO, the size
of the variable reward pool, adjustments to variable reward (including forfeiture and clawback) in accordance
with the Group Remuneration Policy, remuneration (including variable reward targets and performance
outcomes) for the CEO, Group Executives, other executives who report directly to the CEO, any other
accountable persons under the Banking Executive Accountability Regime, other persons whose activities in the
Board’s opinion affect the financial soundness of the Group, any other person specified by APRA and any other
person the Board determines.
The Board has the discretion to defer, adjust or withdraw aggregate and individual variable reward.
Further detail is contained in the Board and Committee Charters which are available on Westpac’s website.
Board Remuneration Committee
The Board Remuneration Committee assists the Board to discharge its responsibility by overseeing
remuneration policies and practices of Westpac and its related bodies corporate in the context that these
policies and practices fairly and responsibly reward individuals having regard to performance, and reflect
Westpac’s risk management framework, the law and the highest standard of governance.
The Board Remuneration Committee reviews and makes recommendations to the Board in relation to the
Group Remuneration Policy, remuneration arrangements for the individuals and groups outlined above, the
remuneration structures for each category of persons covered by the Group Remuneration Policy, STVR and
LTVR plans and outcomes and adjustments (including forfeiture and clawback) for the Group Executives, any
other accountable persons under the Banking Executive Accountability Regime and any other person the Board
determines, as well as corporate goals and objectives relevant to the remuneration of the CEO and approving
any equity-based plans and overseeing general remuneration practices across Westpac.
In carrying out its duties, the Board Remuneration Committee accesses risk and financial control personnel
and engages external advisers who are independent of management. Members of the Board Remuneration
Committee are independent Non-executive Directors.
Further detail is contained in the Board Remuneration Committee Charter which is available on Westpac’s website.
Interaction with other Board CommitteesManagement remuneration oversight committees
Members of the Board Remuneration Committee are
members of either the Board Risk Committee or the
Board Legal, Regulatory & Compliance Committee.
The cross membership of those Committees supports
alignment between risk and reward.
The Board Remuneration Committee seeks feedback
from and considers matters raised by the Board
Risk Committee, the Board Legal, Regulatory
& Compliance Committee and the Board Audit
Committee with respect to remuneration outcomes,
adjustments to remuneration in light of relevant
matters and alignment of remuneration with the risk
management framework.
Divisional and functional remuneration oversight
committees consider areas of risk and consider
potential implications for remuneration. These
committees report to the Group Remuneration
Oversight Committee which in turn considers
consistency of remuneration across the Group and
provides information to the Board Remuneration
Committee and Board for review and decision making
as appropriate.
During the financial year, remuneration governance
arrangements were reviewed and minor changes
were made to enhance the Terms of Reference for the
Group Remuneration Oversight Committee.
Remuneration consultants
In 2020, the Board retained an independent adviser to provide specialist information on executive remuneration
and other remuneration matters. The services were provided directly to the Board Remuneration Committee
independent of management. The Chairman of the Board Remuneration Committee oversees the engagement
and associated costs. Work undertaken by the independent adviser included the provision of information
relating to the benchmarking of Non-executive Director, CEO and Group Executive remuneration as well as
modelling and analysis of alternative remuneration structures for the CEO and Group Executives.
In 2020, no remuneration recommendations, as prescribed under the Corporations Act 2001 (Cth) (Corporations
Act), were made by Board advisers.

1 STRATEGIC REPORT
2 GROUP PERFORMANCE
3 FINANCIAL STATEMENTS
4 SHAREHOLDER INFORMATION
89WESTPAC GROUP 2020 ANNUAL REPORT
Directors’ report
5.2. Executive minimum shareholding requirements and current compliance
The CEO and Group Executives are required to build and maintain a significant Westpac shareholding within five
years of their appointment to strengthen alignment with shareholder interests.
At 30 September 2020, the CEO and Group Executives comply with the requirement. The table below sets out the
minimum shareholding requirement for the CEO and Group Executives.
Minimum shareholding requirement
Chief Executive OfficerFive times annual fixed remuneration excluding superannuation, equivalent to $10.96 million
Group ExecutivesEquivalent to $1.2 million
The multiple for the CEO’s shareholding requirement is higher than that of his peers and reflects Westpac’s
approach to calculating the minimum shareholding requirement. Since 2006, this has included:
• shares held outright in the individual’s name either solely or jointly with another person;
• shares held in an employee share plan (including deferred STVR); and
• 50% of any unvested performance share rights (including LTVR).
The assessment approach has included shares held in a family trust or a self-managed superannuation fund since
2012.
5.3. Hedging policy
Participants in Westpac’s equity plans are prohibited from entering, either directly or indirectly, into hedging
arrangements for unvested awards in the STVR and LTVR plans. No financial products may be used to mitigate
the risk associated with these awards. Any attempt to hedge awards will result in forfeiture and the Board may
consider other disciplinary action. These restrictions satisfy the requirements of the Corporations Act which
prohibits hedging of unvested awards.
5.4. Employment agreements
The remuneration and other terms of employment for the CEO and Group Executives are formalised in their
employment agreements. Each agreement provides for the payment of fixed and variable reward, employer
superannuation contributions and other benefits such as death and disablement insurance cover.
The table below details the key terms including termination provisions of the employment agreements for the CEO
and Group Executives.
TermWhoConditions
Duration of agreementCEO and Group Executives
• Ongoing until notice given by either party
Notice (by the executive or the Group) to
terminate employment
CEO and Group Executives
• Twelve months
1
Termination payments on termination
without cause
2
CEO and Group Executives• Deferred STVR and LTVR awards vest
according to the applicable equity plan
rules
Termination for causeCEO and Group Executives
• Immediately for misconduct
• Three months' notice for poor
performance
Post-employment restraintsCEO and Group Executives
• Twelve month non-solicitation restraint
1. Payment in lieu of notice may in certain circumstances be approved by the Board for some or all of the notice period.
2. The maximum liability for termination benefits for the CEO and Group Executives at 30 September 2020 was $14.9 million (2019:
$16.0 million).

90WESTPAC GROUP 2020 ANNUAL REPORT
Directors’ report
6. Non-executive Director remuneration
6.1. Structure and policy
Westpac’s Non-executive Director remuneration strategy is designed to attract and retain experienced, qualified
Board members and provide appropriate remuneration for their time and expertise.
Non-executive Director fees are not related to Westpac’s results. Fees are paid in cash and no discretionary
payments are made for performance. Non-executive Directors are required to build and maintain a minimum
shareholding to align their interests with those of shareholders (refer to Section 6.4 for further details).
The table below sets out the components of Non-executive Director remuneration.
Non-executive Director remuneration
Base feesRelate to service on the Westpac Banking Corporation Board. The base fee for the Chairman covers all
responsibilities, including for Board Committees.
Committee feesAdditional fees are paid to Non-executive Directors (other than the Board Chairman) for chairing or
participating in Board Committees other than the Board Nominations & Governance Committee.
Employer superannuation
contributions
Reflects statutory superannuation contributions which are capped at the superannuation maximum
contributions base as prescribed under the Superannuation Guarantee legislation.
Subsidiary Board and Advisory
Board fees
Relates to service on Subsidiary Boards and Advisory Boards and are paid by the relevant subsidiary.
6.2. Non-executive Director remuneration in 2020
John McFarlane was appointed as a Non-executive Director on 17 February 2020 and Chairman on 1 April 2020.
The Chairman base fee was increased to $890,000 from $810,000.
The Board established the Board Financial Crime Committee as a special purpose committee to oversee the
implementation of Westpac's enhanced financial crime program. The Chairman of the Board Financial Crime
Committee received a fee of $4,000 and each member received $2,000 on a per diem basis.
The Board Financial Crime Committee later became the Board Legal, Regulatory & Compliance Committee to
enhance oversight of non-financial risk. The Chairman of the Board Legal, Regulatory & Compliance Committee
receives a fee of $67,500 and each member receives $30,000. The table below sets out the annual Board and
standing Committee fees and the changes for 2020.
Non-executive Director base fees have not increased since 1 October 2014 and the Non-executive Director fee
pool of $4.5 million per annum was approved by shareholders at the 2008 Annual General Meeting. Non-executive
Director base fees for 2019 were reduced by 20% as a one-off measure to recognise collective accountability for
customer outcomes highlighted by the Royal Commission, shareholder sentiment leading to the first strike against
the 2018 Remuneration Report and significant non-financial risk matters. For 2020, $3.66 million (81%) of the fee
pool was used. The fee pool includes employer superannuation contributions.
Base and Committee feesAnnual fee $Changes for 2020
Chairman890,000Fee increase to $890,000 (from $810,000)
effective 1 April 2020
Other Non-executive Directors225,000No change
Committee Chairman fees
Board Audit Committee70,400No change
Board Risk Committee90,000No change
Board Remuneration Committee63,800No change
Board Technology Committee35,200No change
Board Legal, Regulatory & Compliance Committee67,500New Committee for 2020
Committee membership fees
Board Audit Committee32,000No change
Board Risk Committee32,000No change
Board Remuneration Committee29,000No change
Board Technology Committee20,000No change
Board Legal, Regulatory & Compliance Committee30,000New Committee for 2020
Subsidiary Board and Advisory Board fees
During the reporting period, additional fees of $42,610 were paid to Anita Fung (former Non-executive Director) as
a member of the Westpac Asia Advisory Board.

1 STRATEGIC REPORT
2 GROUP PERFORMANCE
3 FINANCIAL STATEMENTS
4 SHAREHOLDER INFORMATION
91WESTPAC GROUP 2020 ANNUAL REPORT
Directors’ report
6.3. Changes to Board and Committee composition
On 27 November 2019, the Board Financial Crime Committee was established.
On 1 June 2020, the roles and responsibilities of the Board Risk & Compliance Committee were revised and the
Committee was renamed the Board Risk Committee. At the same time, the Board Legal, Regulatory & Compliance
Committee was established as a sub-committee of the Board Risk Committee. The Board Financial Crime
Committee was also dissolved, with its responsibilities assumed by the Board Legal, Regulatory & Compliance
Committee.
On 1 July 2020, the roles and responsibilities of the Board Nominations Committee were revised and the
Committee was renamed the Board Nominations & Governance Committee.
The table below outlines the changes that were made to the Board and Committee composition during the year
ended 30 September 2020
1
.
Name of Non-
executive DirectorChange in positionEffective date
John McFarlane• Appointed Non-executive Director17 February 2020
• Appointed Member of the Board Risk & Compliance Committee17 February 2020
• Appointed Chairman1 April 2020
• Appointed Chairman of the Board Nominations Committee (now the Board
Nominations & Governance Committee)
1 April 2020
• Ceased as Member of the Board Risk Committee (formerly the Board Risk &
Compliance Committee)
1 June 2020
Lindsay Maxsted
• Retired from the Board and its Committees31 March 2020
Nerida Caesar
• Appointed Member of the Board Financial Crime Committee27 November 2019
• Ceased as Member of the Board Financial Crime Committee1 June 2020
• Ceased as Member of the Board Risk Committee (formerly the Board Risk &
Compliance Committee)
1 June 2020
• Appointed Member of the Board Legal, Regulatory & Compliance Committee1 June 2020
Ewen Crouch
• Retired from the Board and its Committees
12 December 2019
2
Anita Fung• Retired from the Board and its Committees31 March 2020
Steven Harker
• Appointed Member of the Board Audit Committee1 October 2019
• Appointed Member of the Board Financial Crime Committee27 November 2019
• Ceased as Member of the Board Financial Crime Committee1 June 2020
• Ceased as Member of the Board Risk Committee (formerly the Board Risk &
Compliance Committee)
1 June 2020
• Appointed Member of the Board Legal, Regulatory & Compliance Committee1 June 2020
Chris Lynch
• Appointed Non-executive Director1 September 2020
• Appointed Member of the Board Audit Committee1 September 2020
• Appointed Member of the Board Risk Committee1 September 2020
Peter Marriott
• Ceased as Chairman of the Board Audit Committee
12 December 2019
2
• Appointed Chairman of the Board Risk & Compliance Committee (now the Board Risk
Committee)
12 December 2019
2
• Appointed Member of the Board Legal, Regulatory & Compliance Committee1 June 2020
Peter Nash
• Appointed Chairman of the Board Financial Crime Committee27 November 2019
• Appointed Chairman of the Board Audit Committee
12 December 2019
2
• Appointed Member of the Board Nominations Committee (now the Board
Nominations & Governance Committee)
12 December 2019
2
• Ceased as Chairman of the Board Financial Crime Committee1 June 2020
• Appointed Chairman of the Board Legal, Regulatory & Compliance Committee1 June 2020
Margaret Seale
• Appointed Member of the Board Remuneration Committee1 October 2019
• Appointed Member of the Board Financial Crime Committee27 November 2019
• Ceased as Member of the Board Financial Crime Committee1 June 2020
• Ceased as Member of the Board Risk Committee (formerly the Board Risk &
Compliance Committee)
1 June 2020
• Appointed Member of the Board Legal, Regulatory & Compliance Committe
[TRUNCATED]

Westpac Board extends Peter King’s contract Westpac Self-Funding Instalments over securities in BOQ

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