Westpac 2020 Annual Report on Form 20-F

5 November 2020


Market Announcements Office
ASX Limited
20 Bridge Street
SYDNEY NSW 2000


Dear Sir/Madam







Westpac Place
Level 18, 275 Kent Street
Sydney NSW 2000
T. (02) 9155 7713
F. (02) 8253 1215
westpac.com.au

Westpac Banking Corporation US Annual Report on Form 20- F

Westpac Banking Corporation (Westpac) has filed with the US Securities and Exchange
Commission an Annual Report on Form 20-F for the financial year ended 30 September 2020
which has been prepared specifically for distribution in the United States (2020 Form 20-F). This
filing has been prepared to meet US securities law requirements and is necessary to update
Westpac’s US debt issuance programs. As the 2020 Form 20-F has been prepared to meet US
requirements, its presentation differs in some limited respects from Westpac’s 2020 Annual
Report lodged with ASX Limited on 2 November 2020.


Yours sincerely


Tim Hartin
General Manager & Company Secretary

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 20-F
…
REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
Or
_
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended September 30, 2020
Or
…
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Or
…
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number: 1-10167
WESTPAC BANKING CORPORATION
Australian Business Number 33 007 457 141
(Exact name of Registrant as specified in its charter)
New South Wales, Australia
(Jurisdiction of incorporation or organization)
275 Kent Street, Sydney, NSW 2000, Australia
(Address of principal executive offices)
Westpac Banking Corporation, New York branch,
575 Fifth Avenue, 39
th
Floor, New York, New York 10017-2422,
Attention: Branch Manager, telephone number: (212) 551-1800
(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)
Securities registered or to be registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Ordinary sharesListed on the New York Stock Exchange, not for trading, but only in connection with the
registration of related American Depositary Shares, pursuant to the requirements of the
New York Stock Exchange.
American Depositary Shares, each representing the right to receive one ordinary
share
WBKNew York Stock Exchange
Securities registered or to be registered pursuant to Section 12(g) of the Act: None
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: 2.600% Notes due November 23, 2020, 2.650% Notes due January 25, 2021, Floating Rate Notes due January 25, 2021, 2.100%
Notes due May 13, 2021, Floating Rate Notes due May 13, 2021, 2.000% Notes due August 19, 2021, Floating Rate Notes due August 19, 2021, 2.800% Notes due January 11, 2022, Floating Rate Notes due January
11, 2022, 2.500% Notes due June 28, 2022, Floating Rate Notes due June 28, 2022, 2.750% Notes due January 11, 2023, Floating Rate Notes due January 11, 2023, 2.000% Notes due January 13, 2023, Floating Rate
Notes due January 13, 2023, 3.650% Notes due May 15, 2023, Floating Rate Notes due May 15, 2023, 3.300% Notes due February 26, 2024, Floating Rate Notes due February 26, 2024, 2.350% Notes due February
19, 2025, 2.850% Notes due May 13, 2026, 2.700% Notes due August 19, 2026, 3.350% Notes due March 8, 2027, 3.400% Notes due January 25, 2028, 2.650% Notes due January 16, 2030, 2.894% Subordinated Notes
due February 4, 2030, 4.322% Subordinated Notes due November 23, 2031, 4.110% Subordinated Notes due July 24, 2034, 4.421% Subordinated Notes due July 24, 2039 and 5.000% Fixed Rate Resetting Perpetual
Subordinated Contingent Convertible Securities
Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report.
Ordinary shares3,611,684,870 fully paid
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Yes _ No …
If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
Yes … No _
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes _ No …
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period
that the registrant was required to submit such files).
Yes _ No …(not currently applicable to registrant)
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” and
“emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer _Accelerated filer …Non-accelerated filer …Emerging growth company …
If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or
revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act. …
† The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.
Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:
U.S. GAAP … International Financial Reporting Standards as issued by the International Accounting Standards Board _
Other …
If this is an annual report, indicate by check mark whether the registrant is a shell company.
Yes … No _

WESTPAC GROUP 2020 ANNUAL REPORTI
Table of contents
Form 20-F cross-reference indexiiSection 3
Guide 3 cross-reference indexivFinancial statements196
Section 1Notes to the financial statements202
Strategic Report2Statutory statements339
Corporate governance48Section 4
Directors’ report73Shareholding information348
Remuneration report88Additional information361
Information on Westpac118Information for shareholders365
Section 2Glossary of abbreviations and defined terms368
Five year summary130
Reading this report133
Review of Group’s operations135
Income statement review138
Balance sheet review147
Capital resources151
Commitments153
Divisional performance154
Consumer158
Business159
Westpac Institutional Bank161
Westpac New Zealand162
Specialist Businesses164
Group Businesses166
Risk and risk management170
Risk management170
Risk factors177
Other Westpac business information190
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.

IIWESTPAC GROUP 2020 ANNUAL REPORT
Form 20-F cross-reference index
20-F item number and description
Page
Part I
Item 1.Identity of directors, senior management and advisersNot applicable
Item 2.Offer statistics and expected timetableNot applicable
Item 3.Key information
Selected financial data130, 138, 148-49, 364
Capitalisation and indebtednessNot applicable
Reasons for the offer and use of proceedsNot applicable
Risk factors177-89
Item 4.Information on Westpac
History and development of Westpac118-27
Business overview118-27
Organisational structure118-19, 323-24
Property, plants and equipment190-91
Item 4A.Unresolved staff commentsNot applicable
Item 5.Operating and financial review and prospects
Operating results135-69
Liquidity and capital resources151-52, 192-94
Research and development, patents and licences, etc.Not applicable
Trend information138-51, 154-69
Off-balance sheet arrangements275, 279, 280, 326
Tabular disclosure of contractual obligations153
Safe harbor133-34
Item 6.Directors, senior management and employees
Directors and senior management74-80, 83
Compensation88-116, 332-34
Board practices50-81
Employees190
Share ownership83-84, 332-35, 348
Item 7.Major shareholders and related party transactions
Major shareholders348-55
Related party transactions190, 333-34
Interests of experts and counselNot applicable
Item 8.Financial information
Consolidated statements and other financial information195-346
Significant changes119-25, 333
Item 9.The offer and listing
Offer and listing details355
Plan of distributionNot applicable
Markets48-49, 365-66
Selling shareholdersNot applicable
DilutionNot applicable
Expenses of the issueNot applicable

WESTPAC GROUP 2020 ANNUAL REPORTIII
Form 20-F cross-reference index
20-F item number and description
Page
Part I (continued)
Item 10.Additional information
Share capitalNot applicable
Memorandum and articles of association361-63
Material contracts191
Exchange controls357-58
Taxation358-60
Dividends and paying agentsNot applicable
Statements by expertsNot applicable
Documents on display363
Subsidiary informationNot applicable
Item 11.Quantitative and qualitative disclosures about market risk192-93, 289-91
Item 12.Description of securities other than equity securities
Debt securitiesNot applicable
Warrants and rightsNot applicable
Other securitiesNot applicable
American depositary shares356
Part II
Item 13.Defaults, dividend arrearages and delinquenciesNot applicable
Item 14.Material modifications to the rights of security holders and use of proceedsNot applicable
Item 15.Controls and procedures193, 340
Item 16A.Audit committee financial expert63
Item 16B.Code of ethics57-62
Item 16C.Principal accountant fees and services63-64, 332
Item 16D.Exemptions from the Listing Standards for audit committeesNot applicable
Item 16E.Purchases of equity securities by Westpac and affiliated purchasers153, 318-20
Item 16F.Changes in Westpac’s certifying accountantNot applicable
Item 16G.Corporate governance48
Item 16H.Mine safety disclosureNot applicable
Part III
Items 17. & 18.Financial statements195-346
Item 19.Exhibits
Consolidated income statements for the years ended 30 September 2019, 2018 and 2017196
Consolidated balance sheets as at 30 September 2019 and 2018198
Consolidated statements of comprehensive income for the years ended 30 September 2019, 2018 and 2017197
Consolidated statements of cash flows for the years ended 30 September 2019, 2018 and 2017201
Notes to the financial statements202-338
Management’s report on the internal control over financial reporting340
Report of independent registered public accounting firm341-46

IVWESTPAC GROUP 2020 ANNUAL REPORT
Guide 3 cross-reference index
Page
Part I Distribution of assets, liabilities and stockholders’ equity; interest rates and interest differential
Average balance sheets148, 222-24
Analysis of net interest earnings139-40, 219-20
Volume and rate movement139-40, 219-20
Part II Investment portfolio
Book value of investments227
Maturity profile228-29, 289-91
Book value and market value > 10% of shareholders227
Part III Loan portfolio
Types of loans230-32
Maturities and sensitivities of loans to changes in interest rates233
Risk elements
Non-accrual, past due and restructured loans149-51, 281-83
Potential problem loans149-50
Foreign outstandings192
Loan concentrations192
Other interest bearing assets225-29
Part IV Summary of loan loss experience
Analysis of the allowance for loan losses234-48
Allocation of the allowance for loan losses234-48
Part V Deposits251-52
Part VI Return on equity and assets130, 144
Part VII Short-term borrowings254-55

1 STRATEGIC REVIEW2 GROUP PERFORMANCE3 FINANCIAL STAT EMENTS4 SHAREHOLDER INFORMATION 1 T
REPOR AL ANNU 20 20 GROUP C A TP WES Fix Simplify Perform 2020 ANNUAL REPORT

2WESTPAC GROUP 2020 ANNUAL REPORT ABOUT WESTPAC Founded in 1817, Westpac is Australia’s first bank and oldest
company. DIVISION CONSUMER BUSINESS OVERVIEW Serves the banking needs of consumers in Australia including the
s ales and s ervice of banking products , from mort gages, credit cards, personal loans and savings to deposit product s. 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. Serves
t he b a nki n g ne e ds of sm a ll - to - m ed i um bu si ne sse s a n d com m e r ci al a n d ag r ib u si ne ss cust om e r s a cr os s A ust ra l i a. Al so s up po r ts
t he b a nki n g ne e ds of hi g h ne t w or th i n di vi d ua l s i n o ur P r i vat e We a l th bu si n ess . FY 20 C A SH EA R N IN G S $ 2 ,7 46 m $ 73 4m
W E STP A C IN S TITU TI ON A L BA N K D e l i ver s a br o ad r a ng e of fi n an ci a l se rvi ce s to co m me r ci al , co rp o ra te , in st it ut io n al a n d
government customers operating in, and with connections to, Australia and New Zealand. $332m NEW ZEALAND Delivers
b a nki n g , w e al t h a n d in su r an ce se r vi ces to co ns um e r , b us in e ss, an d i nst it ut i on al cust om e r s a cr os s N e w Ze al a nd . $6 12 m G R OU P
B U S IN ES SE S SP EC I AL IS T B U SIN E S SE S I nc lu d es Tr ea su ry , Te ch no l og y a n d C or e Su p po r t, w hi ch co m pr i se s G r ou p su pp or t
f un ctio n s o f A us tralia n b a nk in g op e ra tio ns , p rop e rt y se rvices , st ra te g y, f ina nc e, ris k, c omp lia n ce, leg a l, h uma n reso u rc es, a nd
customer and corporate relations. Brings together the Group’s non-core Australian businesses, including superannuation, wealth
p l a tfo r ms , i n ves tm e nts , a ut o fi na n ce, g en e ra l i ns ur a nce , l if e in su r an ce , l e nd e rs m or tg a ge i n sur a nc e, al o n g w i t h o u r op e ra ti o ns in
F iji and Papua New Guinea. ($1,310m) ($506m) 2WESTPAC GROU P 2020 ANNUAL REPORT $2,290m EARNINGS1

WESTPAC GROUP 2020 ANNUAL REPORT3 1 S TRA TEGIC REVIEW 2 GROUP PERFORMANCE 3 FINANCIAL S T A
T EM E N T S 4 SH A R EH O LD E R I N FOR M A TIO N 1 S TR ATE GI C R EV IE W W i th ou r p or tf ol i o o f b r an ds , w e p r ovi d e ov er 1 4. 1
million2 customers with a full range of banking services. We also provide selected insurance, superannuation and wealth platform
s ervices to consumers and business es. Our mark et capitalisation is $61 billion with $912 billion of total ass ets (at 30 September
2 0 20 ) . B R AN D S M AR K ET SH A R E W est pa c P a ci fi c1 R ef er t o pa ge 6 f or a r e con ci l i at io n o f r e po r te d pr o fi t t o c ash e a rn i ng s. 2
Includes Westpac Pacific customers. 3 APRA Banking Statistics, September 2020. 4 RBA Financial Aggregates, September 2020.
5 S tra te gic I ns ig h ts, Ju ne 2 02 0 . A ll Mast er Fu n ds Ad min. 6 RBNZ, S ep te mbe r 2 02 0. 2 GRO UP PE RFORMA NCE 3 FINA NCIAL
STATEMENTS 4 SHAREHOLDER INF ORMAT ION

20 2 0 Ye ar i n r e vi ew C u st om e r sFi na nc ia l Th i s ye a r ha s b e en ch a ll e ng i n g, ov er sh ad o w ed b y t he A U STR A C p ro ce ed i n gs,
b u shf i re s an d sto r ms , a nd C O VI D - 19 . Th r ou g h it a ll , w e ha ve r e m ai n ed fo cu se d on h el p i ng cu sto m e rs, e m pl o yee s, a nd th e
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%. Muc h of the decline resulted from our operating env ironment, where we faced
lower margins and higher impairment c harges – 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
l o w e r. Ou r th r ee p r i or i ti e s o f f ix , si m p l if y a nd p e rf or m u n de r pi n o ur p l an s t o fi x t he i ssu es , si m p l if y o ur bu si ne ss an d i m pr o ve
p e rf or m a nc e. Pr o gr e ss o ve r th e yea r i n cl ud ed : Fi ve ne w G r ou p Exe cu ti ve s; E st ab l is hi n g ou r ne w S p eci a l is t B us in e sse s d i vi si on
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
C o m m e nci n g ou r C O R E p r og r am br i ng i n g t og e th er i n it i at iv es to i m pr o ve no n -f i na nc ia l r i sk m a n ag em e n t. W i th a co m m i tte d te am
a n d prioritie s t o fix, s imp lify, an d p erfo rm, we a re c on fid en t t ha t we a re on t he p at h to be co me a simple r, st ro n ge r ba n k. HI GHS
Supporting customers during COVID-19 ~175,000 Mortgage deferral packages ~40,000 Deferrals for businesses 1,9801 Bushfire
r e co ver y su pp or t pa cka g es Lo ng - d ate d co m pl a i nts 9 3% # 1 B u si ne ss B a nki n g N PS r a nki n g2 ,3 L OW S # 3 C on su me r N P S ra n ki ng 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+ $1.2bn
Notable Items after tax, excluding AUSTRAC No 2020 interim dividend Final dividend per share 31c Share price5 43%
4WESTPAC GROUP 2020 ANNUAL REPORT Strategic report Bushfire recovery packages at 31 March 2020. Net Promoter
Score measures the net likelihood of recommendation to others of the customer’s main financial institution for retail or business
b a nkin g . Ne t P romo te r Sc ore SMis a t ra d ema rk o f B ain & Co In c., Sa tme trixS yste ms, Inc ., an d Mr Fred erick Reich h eld . Usin g a 11
point numerical scale where 10 is ‘Extremely likely’ and 0 is ‘Extremely unlikely’, Net Promoter Score is calculated by subtractin g
the percentage of Detractors (0-6) from the percentage of Promoters (9-10). Source: DBM Consultants Business Atlas, March –
A u gu st 20 20 , 6M M A . M FI cu sto m er s, a ll bu si ne sse s. So ur ce : D BM C o n sul t an ts C on su m er A tl a s, M a r ch – Au gu st 20 2 0, 6 MM A .
MFI Westpac Group customers. Based on 30 September 2020 vs 30 September 2019 closing share prices.

Op er a ti o ns R i sk S us tai n a bi l i tyE m pl o yee s La un ch ed N e w W e stp ac ap p B ra n ch an d ATM ava i l ab i l it y d ur i n g C OV ID - 19 > 9 0%
Strengthened infrastructure, major system outages more than halved Bringing 1,000 jobs back to Australia New Board Legal,
Regulatory , Compliance & Conduct C ommittee New Financial Crime func tion with Group Executive reporting to CEO 400+ new
R i sk , C o m pl i a nce a n d Fin a nc ia l C r i m e em p l oye e s U p da te d po si ti o n sta te m en ts: C l i ma te C h a ng e H um a n R i gh ts $1 0. 1b n l en d in g
to climate change solutions $150m+ in community investment6 #1 largest financier to greenfield renewable energy projects in
A u stralia fo r th e p ast th ree ye a rs 7 E mp lo ye e commitme n t in de x8 7 3% Su p po rte d pe op le workin g from ho me at th e pe a k o f
C O VI D - 19 2 2, 00 0 W om e n i n l e a de r shi p 9 50 % 9. 4% of e m pl o yee s usi n g Em p l oye e Ac ces s P ro g ra m f or co n fi de n ti al cou n sel i n g
a n d coa ch ing Mo rtga g e ba lan ce s d ec lin ing 2 % C omp le xity o f IT inf ra stru ctu re – lo n g timef ra me to fix AUS TRAC’s Sta te me nt of
Claim and provision for penalty of $1.3bn Additional $500m APRA capital overlay for risk deficiencies Credit impairment charge
$3.2bn $2.4bn Inadequate transaction monitoring to help identify potential child exploitation Remuneration consequences following
r e vi ew of A U STR A C m a tte r s10 $ 2 0m B o ar d an d E xecu ti ve d e pa r tur e s W E STP AC GR O U P 20 20 A N N U AL R E PO R T5 St ra te g ic
re po rt 1 S TRA TE GI C REV IE W 2 GRO UP PE RFORMA NCE 3 FINANC IAL S T A TE MENT S 4 SHA REHO LDE R INF ORMA
T ION 1 STRATEGIC REVIEW 2 GROUP PERFORMANCE 3 FINANCIAL STATEMENTS 4 SHAREHOLDER INFORMATION
Excludes commercial sponsorships. IJGlobal, September 2020. Six -month rolling average. Proportion of women (permanent and
ma ximu m te rm) in le ad e rsh ip role s a cros s th e Gro up , in clu din g th e CE O , G ro u p Exe cu tive s, G en e ra l Ma na g ers, se nio r lea de rs
w i t h si gn i fi ca nt i nf lu e nce o n bu si n ess o utc om e s ( d i re ct re p or ts to G en er a l M a na ge r s a nd t he i r di r e ct r e po r ts) , l ar g e (3 + ) te am
people leaders three levels below General Manager, and Bank and Assistant Bank Managers. Refer to explanation in
Remuneration Report in the Directors’ Report.

PERFORMANCE REVIEW FY20 performance overview Westpac Group delivered a net profit attributable to owners of Westpac
Banking Corporation for F ull Year 2020 of $2,290 million, a decrease of $4,494 million, down 66%. Much of the decline can be
t r ace d b ack to th e i m pa ct of C OV ID - 1 9 o n cu sto m er s an d on o u r bu si n ess . Th i s i n cl ud ed a m a te r ia l i n cr ea se i n im p a ir m e nt
c ha rge s a s we p u t a side p rov is io n s fo r th e e stimat ed imp act o f p o ten tia l fu tu re c re d it lo sse s. E arn ing s we re also imp act ed b y our
own issues, including the costs associated with the AUSTRAC matters. In assessing performance, we use ‘cash earnings’1 – a
measure of profit determined by adjusting reported earnings by three factors: Material items that do not reflect ongoing
performance; Some items that may not be considered when determining dividends, including the amortisation of intangible items,
t r ea su ry sh ar e s o r ec on om i c he d gi n g im p a cts; an d Ac cou n ti ng cl a ssi fi ca ti o ns b etw e e n in d iv id u al i t em s th at do n o t i m p act r ep o rt ed
results. To further explain performance, we have identified a number of major items that do not reflect underlying performance.
T he se a re ‘ n ot ab l e it em s’ an d i n F Y2 0 w er e $ 2,6 1 9 m il l i on a n d in cl u de d: P ro vi si o ns an d co sts ass oci a te d w it h th e AU S TR AC
proc eedings $1,442 million after tax ; Provisions for customer refunds, repayments, as sociated costs and litigation items $440
million after tax; The write-down of intangible items $614 million; and The net impact of major as set sales and revaluations $123
million. 6WESTPAC GROUP 2020 ANNUAL REPORT Strategic report REPORTED NET PROFIT ATTRIBUTABLE TO OWNERS
OF WESTPAC ($m) 1 We disclose cash earnings, w hich is not prepared in accordance with IFRS and is a “non-GAAP financial
me a sure ,” a s we b elie ve th at it p rov id e s u se ful in fo rmat io n to in ves to rs an d a na lysts to a ssist th em in th e ir eva lua tio n of o ur
operating results and to assist in comparisons from one period to another. Readers are cautioned that cash earnings does not
h a ve an y sta nd ar d i sed m e a ni n g pr e scr ib e d w it hi n IF R S o r U .S . GA AP a nd th e re fo r e m ay no t be co m pa r ab l e to si m i l ar m e as ur e s
p r es en te d by ot he r co m pa n ie s. W e use c ash e ar n i ng s f or p l an n i ng p ur p ose s an d to a ll o w u s t o a sse ss th e pe r for m a nc e of ou r
b u si ne ss be fo r e i n cl u di n g t he i m p act s o f the i te m s no te d ab ov e as th ey af fec t t he co m pa r ab i l i ty o f ou r fi n an ci al re su l ts. C as h
e a rn i n gs is r ev ie w e d re g ul a rl y by m an a ge m en t an d th e Bo ar d o f D i r ec to rs as p ar t of th e on go i n g i n te r na l a sse ssm en t of ou r
operating performance. We also use cash earnings as one component in determining compensation for Key Management
Personnel.

REPORTED PROFIT ($m) NET INTEREST MARGINS (%) Reported profit basis 7,445 7,9908,095 2.13 2.12 Low interest rates,
strong competition 2.03 2,290 FY16FY17FY18FY19FY20 FY18FY19FY20 GROSS LENDING ($bn) ASSET QUALITY (%)
A u str al i a n ho u si ng A ust ra l i an b u si ne sse s A us tr al i a n p e rs on al N ew Zea l an d Ot he r o ver se a s S tr ess ed e xp osu r es to to ta l co m m it te d
e xp os ur e s 1 .9 1 .2 1. 1 74 2 3 15 4 7 8 2 1 1 52 8 2 17 1 48 4 4 5 44 9 44 1 Se p t 1 8S e pt 19 S ep t 20 S ep t 18 Se p t 1 9S e pt 20 S TR ON G
BALANCE SHEET (%) Common equity tier 1 capital ratio ReportedInternationally comparable Top quartile of banks globally 16.14
15.85 16.55 10.63 10.67 11.13 WESTPAC GROUP 2020 ANNUAL REPORT7 Strategic report 1 S TRA TEGIC REVIEW 2
GROUP PERFORMANCE 3 FINANCIAL S T A TEMENT S 4 SHAREHOLDER INFORMA TION 1 STRATEGIC REVIEW 2
GROUP PERFORMANCE 3 FINANCIAL STATEMENTS 4 SHAREHOLDER INFORMATION Sept 18Sept 19Sept 20

EXTERNAL ENVIRO NMENT Ext ernal environment 2020 has been the most challenging year for the banking syst em since t he
early 1990s recession. This has been largely due to the direct and indirect impacts of the COVID-19 pandemic which, at 30
September 2020, c ontributed to around one million deaths from over 32 million confirmed cases worldwide1. While Aus tralia and
New Zealand act ed decisively to cont rol the health risks of the pandemic, the lock downs have had a prof ound impac t on our
e co no mies . B ot h na tio ns are in rece ssio n, A ust ra lia fo r th e f irs t time in a lmo st 30 ye a rs . Fu rth er sp ike s in inf ect ion ra tes may
increase restrictions already in place and c onsiderable uncertainty remains around when State and international border restrictions
will be lifted. Government bodies and financial institutions have w orked 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 cus tomers with substant ial hardship packages. Not surprisingly, the environment f or most business es is
c hallenging; including financial serv ic es 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 s ervices companies have experienced lower returns , driv en by very low interest rates, less
a ct iv it y, an d hig he r impa irmen t p rov is io n s in an ticip at ion o f a rise in cu sto mer d e fau lts. At th e sa me time, th e se cto r con tin ues 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.
T hese have led to some c lass ac tions. In particular, ASIC has indicated it is purs uing a number of potential cases which may lead
to additional actions. In response, financ ial service companies are focus ing on raising gov ernance, culture and acc ountability
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 s ocieties, f inance c ompanies , mort gage originat ors, card iss uers, buy now pay later firms
and other money lenders, fund administration c ompanies , industry funds, insurance companies, online financial serv ic es providers,
a n d te chn o lo g y co mpa n ie s. Ou r co mpe titive p o sition is de te rmin e d b y ma n y fa ct ors in clu din g: th e qu ality , ra ng e, in no va tion a nd
pricing of products and services; digital and technology solutions; customer service and convenience; the effectiveness of, and
a cce ss to , d i str i bu ti o n cha n ne l s; br a nd r e pu ta ti on a n d p r ef er e nc e; th e typ e of cu sto m er s ser ve d ; a nd t he ta l e nt an d e xpe r i en ce of
o u r em p l oy ee s. D ig i ta l i nn o vat i on i s a l so r ed e fi ni n g th e com p et i ti ve l an ds cap e . Th i s h a s a cce le r at ed t hr o ug h th e C OV ID - 19
pandemic, as customers move away from physical outlets to online services. In Australia and New Zealand competition for
d e po si ts an d l en d in g r em a i ns fi e rce . Ap ar t fr o m th e nu m be r o f p r ov id e rs an d th e r an ge o f pr o du ct an d se rv ic e o p ti on s, sl ow i n g
d e m an d an d a r is e in l i q ui d it y f ro m m o ne ta r y st im u l us h as he i gh te ne d co m pe ti ti ve i n te nsi t y. W h i l e t he p an d em i c ha s r e du ce d th e
local focus of some international institutions , digital finance providers have added to competitive intensity ac ross a range of
p r od u cts an d se rv ic es. Ou tl o ok Th e ou tl o ok fo r 20 21 i s un ce r tai n . C OV ID - 19 ’ s p at h re m a in s u n pr e di ct ab l e an d th e ri sk o f
outbreaks is ever present. While government ass is tance has provided a buffer to the economic impacts, this initial support is
s che d ul e d to un w i n d a n d is l i kel y to b e r e pl a ce d by ot he r m o re t ar g ete d su pp o rt . Th e Fe de r al B u dg et , w h i ch fe at ur e d pe r son a l 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
a rou n d 5% e xpe cte d in th e yea r to S ep te mb er q ua rte r of 2 02 0 . Th e ou tlo ok rema ins ch allen g in g . I n the n e ar t erm, gro wth is
a l r ea d y b en ef i tti n g fr om the r e op e ni n g of th e eco n om y. N e xt y ea r w e ex pe ct th at to co nt i nu e, a lb e i t a t a sl o w e r pa ce . R i sks a round
the ongoing containment of the virus, the gradual unwinding of the extensive support measures, and prospects for the global
economy emphasise the unusually high unc ertainty we will continue to ex perience. 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
f oc us of th e Au stra lia n Go ve rnme nt . Un e mp lo ymen t is ex pe cte d to inc re a se in the la tte r mo nt hs of 2 02 0 to a ro u nd 8 %. W hile th is
is be tt er t ha n initia l e xpe cta tio ns , it is e xpe cte d to re main b etwe e n 7% to 8 % in 2 02 1 . I f t he e con o my co n tinu e s to re op en ,
8WESTPAC GROUP 2020 ANNUAL REPORT Strategic report 1 WHO Coronavirus Disease (COVID-19) Dashboard (996,000
d e at hs at 2 8 S e pt em b er 2 0 20 ) .

WESTPAC GROUP 2020 ANNUAL REPORT9 Strategic report 1 S TRA TEGIC REVIEW 2 GROUP PERFORMANCE 3
F INANCIAL S T A TEMENT S 4 SHAREHOLDER INFORMA TION 1 STRATEGIC REVIEW 2 GROUP PERFORMANCE 3
FINANCIAL STATEMENTS 4 SHAREHOLDER INFORMATION 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 lev els recorded in 2019 due to a lack of
i n te r na ti o na l to u ri sm an d of fsh or e stu d en ts al o ng w i th l i m i te d im m i g r ati o n ; a l l th ese f act or s ha ve b ee n go o d con tr i bu to r s t o G DP in
r e ce nt ye ar s. Au str a l i an h ou se p ri ce s ha ve al r e ad y f al l e n by ar o un d 3% fr o m th e pe a k i n Ap r i l 20 2 0. L ow i n te r est r at es an d a
s upportive financial system able to maintain activ ity will likely support the hous ing 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
re main ch a lle ng in g wit h slowe r gro wth , ma rgin p re ssu re from low in te rest rat es an d th e de te riora tion in a sse t q ua lity a s comp a nies
and individuals continue t o experienc e reduced inc ome. Credit growth for the Australian financial syst em was 2% for the year t o
S e pt em b er 2 0 20 , d o w n fr om 2.7 % a ye ar e ar l i er . To ta l cr ed i t g r ow t h is ex pe cte d to sl o w to a r ou n d 0 .5 % to Se p te m be r 20 2 1.
Housing credit growth is likely to be little changed at 3.2%, while business credit growth is expected to decline with subdued
i n ve stm e nt . P er so n al c re d it , w h i ch ha s be en i n d ecl i n e fo r som e ye a rs , i s exp e cte d to fa l l fu rt he r i n 20 2 1 as con su m er s re m a in
cautious on debt and use alternative sources of financial credit. Near zero interest rates will continue to weigh on banks and pl a ce
pres sure on net interest margins . The Reserve Bank of Australia (RBA) has indicated that the c ash rate will not be increased until
p rog res s is ma d e towa rds fu ll emp loy men t a n d in fla tion is su sta in e d wit hin th e 2 % t o 3 % ta rge t b a nd . V e ry low in te res t ra tes a re
therefore likely to remain for some time and with them, margin press ure. 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 J une 2021 and will s upport the Group’s term wholesal e
funding needs for much of the coming year. At 30 September 2020, we have drawn down $18 billion of the TFF. The Reserve
B a nk of Ne w Ze ala nd (RBN Z) ha s b e en similarly d o wnb e at, co mmittin g to main ta in it s o vern igh t c ash ra te a t 0 .2 5% u nt il at lea st
March 2021. The RBNZ has also flagged t hat it could take the rat e below zero if f urther stimulus were required. Fee income may
reduce as fee waivers linked to the pandemic continue and ov erall 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
m a te r i al l y i n cr ea se d to ac cou n t f or h i gh e r exp e cte d l oss es an d ar e l i ke ly to r em a i n el e va te d i n to 2 02 1 . W e stp ac ha s de vo ted
significant time and effort to improving the management of risk over the year, including in non-financial risk and financial crime.
T his will continue in the year ahead which will lik ely see costs remain high. While Wes tpac has resolv ed some legal cas es 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
b a nkin g , we se t u p o ur S pe cia lis t B us in e sse s d iv is io n th is ye a r to man a ge a ctivitie s n o t e xp ect ed t o be lo ng -term s trat eg ic o ptions
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 cus tomer stress increases. This will however be partially offse t
by eff ort s to improve capit al eff ic iency and may include the sale of business es. Regardless, we expect t o manage our capit al
p o sition t o kee p o ur CE T1 ca pita l rat io comf orta b ly ab o ve reg ula to ry minimu ms. W e re main co mmit te d to su pp ortin g cu sto mers
a n d th e e co no my thro ug h th e se cha llen g in g time s. O ur imme dia te p rio rity is to fix ou r ou ts tan d ing issu es , in clud ing imp ro vin g risk
management, enhancing our culture, and completing remediation. We have committed to simplify, focusing on our markets of
Australia and New Zealand, ex it ing non-core bus inesses, and reducing our product set. We also expect to complete the
implementation of our Lines of Busines s operating model to clarify res pons ibilities and accountability. Finally, we are focus ed on
p e rf or m a nc e, r est or i ng g r ow t h in o u r key p ro d uct s i n cl ud i ng m o r tga g es an d b usi n es s l o an s, en ha n ci ng r e tur n s a n d r e se tti n g ou r
c ost b ase . Imp orta nt ly, o u r stro ng b ala nc e she e t, c ommitt ed te a m an d so lid c ust ome r fra nch ise p ositio n us to se e th es e p la ns
through.

10WESTPAC GROUP 2020 ANNUAL REPORT OUR STRATEGY OUR PRIORITIES 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
s ho r tco m i ng s, re sh ap e th e bu si n ess to co nc en tr a te on o u r cor e b us in e sse s a nd m a r ket s w h i le l i ft in g se r vi ce an d cr ea ti n g a
stronger performance ethic. This will help us to become a simpler, stronger bank. Our purpose Helping Australians and New
Z ea l an de r s s ucce e d. Ou r fo cu s B an ki n g fo r Au str a li a n an d N e w Ze al a nd co n sum e r s, bu si ne sse s a n d in st it ut io n al c ust om e r s. Fi x
Simplify 10WESTPAC GROUP 2020 ANNUAL REPORT Strategic report Perform

WHAT THIS MEANS WHAT IT INVOLVES WESTPAC GROUP 2020 ANNUAL REPORT11 Strategic report 1 S TRA TEGIC
REVIEW 2 GROUP PERFORMANCE 3 FINANCIAL S T A TEMENT S 4 SHAREHOLDER INFORMA TION 1 STRATEGIC
REVIEW 2 GROUP PERFORMANCE 3 FINANCIAL STATEMENTS 4 SHAREHOLDER INFORMATION OUR VALUES – WHAT
YOU CAN EXPECT HELPFUL Passionate about providing a great customer experience ETHICAL Trusted to do the right thing
L E ADING CHA NGE De te rmin ed t o make it be tte r a nd b e b ett er P ER FORMING A cco un ta ble to g e t it do ne S IMP LE In sp ire d to
k ee p i t si m p l e an d ea sy

12WESTPAC GROUP 2020 ANNUAL REPORT DELIVERING FOR OUR ST AKEHOLDERS1 CUSTOMERSEMPLOYEES
Delivering financial s ervices to consumers, business es and institutions in Australia and New Zealand. — Trusted with over $555bn
in customer deposits — Supported over $693bn in lending Creating an environment where the best people want to work. — Paid
over $5.0bn to 40,225 employees — 50% women in leadership roles2 — Recognised by the Bloomberg Gender Equality Index for
the 4th consecutive year COMMUNITIESSUPPLIERS 12WESTPAC GROUP 2020 ANNUAL REPORT Strategic report — Over
$ 1 50 m i n co m m un i ty i n ve stm e nt 3 — 1 m + pa r ti ci p an ts in f i na nc ia l e du ca ti on — W es tp ac Fou n da ti o n4 g r an ts to so ci al e n ter p r is es
helped create 719 jobs5 f or v ulnerable Aust ralians 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
A cti o n Pl a n an d w o rki n g to e l im i n at e ri sk of m o de r n sl ave r y a cr os s o ur b u si ne ss o p er a ti on s an d su pp l y ch ai n

SHA REHO LDE RS THE E CO NOMY Ge ne rat ing a pp rop riat e re tu rns ove r th e lon g -t erm, inclu din g fo r fa milie s wh o dire ctly o wn
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 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
a n d aro un d 40 ,0 0 0 b u sine sse s wit h d e fe rra ls — On e of th e first ba nk s to e na b le a cce ss to d ata a s p a rt o f t he ‘Op e n Ba nk in g ’
initiative — A major contributor of New Payments Platform transactions One of Australia’s largest tax pay ers — Wes tpac paid over
$4bn6 globally in various taxes during 2020, 99.7% of whic h were paid in Australia and New Zealand (including the Major Bank
L e vy). — O ur e ffe ct iv e tax rat e for 20 20 wa s 4 6 % o r 5 6% inc lu d in g th e Majo r Ba n k L ev y. THE E NVI RONME NT W ES TP AC
GROUP 2020 ANNUAL REPORT13 Strategic report 1 S TRA TEGIC REVIEW 2 GROUP PERFORMANCE 3 FINANCIAL S T A
T EMENT S 4 SHAREHOLDER INFORMA TION 1 STRATEGIC REVIEW 2 GROUP PERFORMANCE 3 FINANCIAL
STATEMENTS 4 SHAREHOLDER INFORMATION — $10.1bn lending to climate change solutions — Climate Change Position
Statement and 2023 Action Plan All figures for FY20. Proportion of women (permanent and maximum term) in leadership roles
across the Group, inc luding the CEO, Group Ex ecutives, General Managers, senior leaders with significant influence on busines s
o u tco m es ( di r ec t r e po r ts t o Ge ne r al Ma n ag e rs an d th ei r d i r ect r ep o rt s) , l a r ge ( 3+ ) t ea m p eo p le l e ad e rs th r ee l e vel s be l ow Ge ne ral
Manager, and Bank and Assistant Bank Managers. Excludes commercial sponsorships. Westpac Foundation is administered by
W e stp a c C o m m un i ty L i m i te d ( A BN 34 0 86 8 6 2 7 9 5) a s t r ust ee f or W e stp ac C om m u n it y Tr u st ( A BN 53 2 65 0 3 6 9 8 2) . The
Westpac Community T rust 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
a d m in i str a ti ve su pp o rt , s ki ll e d vo lu n te er i ng , do na ti o ns an d fu n di n g for op er a ti o na l co sts of W es tpa c Fou nd a ti on . Job s cr ea te d
through the Westpac Foundation job creation grants to social enterprises are for the year ended 30 June 2020. The majority (76%)
of the tax paid comprises corporat e income tax. O ther t ax es paid include t he Major Bank Levy, non-recov erable GST, payroll t ax
a n d fring e be n efit s ta x.

14 W ES TP AC G ROUP 2 02 0 ANNUA L REP ORT St rate g ic rep o rt OUR PRI ORIT IES Fix Ad dre ssin g o u r sh ortco ming s by
m a te r i al l y i m p ro vi n g ou r m an a ge m en t of r i sk a nd r i sk cul t ur e , r e du ci ng c ust om e r pa i n po i nt s, com p l et in g o ur h i sto r i cal c ust om e r
remediat ion program and reducing the complexit y of our technology sys tems. James G rant, Westpac G roup Financ ial Cont roller

A new function for Financial Crime, Compliance & Conduct was created Enhanced risk management framework In the pas t,
W e stp a c’ s m a na g em e nt of r i sk h a s b ee n co nsi d er e d a str e ng th , p a rt i cul a r ly i n ou r m an a ge m en t of ca pi ta l , fun d in g , l i q ui d i ty, an d
c redit risk. While we retain a strong balanc e s heet, s everal inquiries, inc luding 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 ; partic ularly non-financial risk. Our weaknes ses were initially highlighted in our Culture
G overnance and Accountability self -assessment (CGA self-assessment) c omplet ed in 2018. Our CG A s elf-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
r e as ses sm en t) o n 17 J ul y 20 20 , re i nf or ci n g th e in i ti a l fi nd i n gs bu t a l so i de n ti fyi n g th at ou r r i sk c ul tu r e w as r ea cti ve a nd i m mature
a n d th at th e th re e line s o f d e fe nce mo de l (mo de l d efin ing risk ma n ag e me n t re spo n sibilitie s) was n ot well u n de rsto od . It wa s also
c le a r th at w e ha d b eco m e to o co mp l e x a nd w h er e i ssu es w e re u n cove r ed w e w e r e sl ow to ac t. The G ro u p ha s b e en e xpo se d to
compliance failures, regulatory breaches, customer remediation and legal actions. See pages 18 to 19 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
id e ntif ie d . Th e first ste p ha s b e en to re fine o u r op e ra tin g stru ctu re . A n e w fu n ction f or Fin a ncia l Crime , Con d uct a nd Co mplia nce
h a s b ee n cre ate d to in crea se th e fo cus a nd re sou rces d evo te d to th is imp orta n t a rea . T he G ro u p E xe cu tive fo r th is d ivision rep ort s
directly to the CEO. We have also enhanced our risk management framework (for identifying, assessing and managing risk), and
increased our risk management We have accepted our shortcomings and have commenced a number of programs that seek to
materially lift our standards and fix the issues identified.” 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 s trengthen our risk management framework. The program has 14 streams of
work under three categories: Direction and tone set by Board and Group Executive – initiatives that set clear tone and direction
from leadership to promote a proactive risk culture. Clear risk boundaries for decision-making – simplifying risk management
f r am e w or ks an d i nc re a si ng ca p ab i li t y a nd r e sou r ce s i n th e R is k fu n cti o n. Ac cou n tab l e an d e mp o w er e d pe o pl e – pr o vi di n g
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+ WESTPAC GROUP 2020 ANNUAL REPORT15
S tr a te gic re p or t 1 S TRA TE GI C RE VIE W 2 GRO UP PE RFORM A NCE 3 FINA NCIAL S T A T EM ENT S 4 SHA REHO LDE R
INFORMA TION 1 STRATEGIC REVIEW 2 GROUP PERFORMANCE 3 FINANCIAL STATEMENTS 4 SHAREHOLDER
INFORMATION new Ris k, Complianc e and Financ ial Crime employees CORE program underway

16WESTPAC GROUP 2020 ANNUAL REPORT A s trong ris k culture includes being clear on acc ountability and c reating an
environment where it is safe to s peak up.” 16WESTPAC GROUP 2020 ANNUAL REPORT Strategic report Updated Code of
Conduct rolled out 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-ac tively address ris ks when they emerge. It also includes being clear on ac countability and feeling s afe to speak up.
S tr e ng th en i n g r i sk cu lt ur e i s a f ocu s f or t he G r ou p an d a ke y e le m e nt of o ur C O R E pr o gr a m . O ur n e w L in e s o f B u si ne ss o p er a ti ng
model is establishing end-to-end responsibility for cus tomer outcomes and improv ing our risk culture by clarify ing accountabilitie s.
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; Launc h o f
an online tool to assess a division’s current risk culture and compare to our target, helping us identify and prioritise areas fo r
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
a n d po l i ci es w he r e w e h a ve no t go t i t r i gh t f or c ust om e r s. W h er e p r ob l em s ha ve b ee n i de nt i fi ed , w e h a ve co mm i t ted t o fi x t he m
a n d re fu n d c ust om e r s. T hi s t as k i s s ig n if i can t as i t o fte n i nv ol ve s i n di vi d ua l cu sto m e rs ov er m a ny ye ar s. Th e Gr ou p i nc ur r ed a n
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
p rov id e d lo a ns co vere d by th e Nat io n al Co n sume r Cred it P rot ec tion A ct an d th e N atio na l Cre dit Cod e ; Co mpe n sat io n to p lat fo rm
c ust om e r s w h o w er e n ot ad vi se d of ce r ta in co r po r at e ac ti on s, an d m ay ha ve b ee n a bl e to b en e fi t; an d W he r e cer ta i n w ea l th fe e s
were inadequately disclosed. 2m+ customers received over $280 million in refunds in FY20

WESTPAC GROUP 2020 ANNUAL REPORT17 93% reduction of long dated complaints 74% Aus tralian Banking1 c omplaints
resolved in 5 days compared to 68% in FY19 Reducing customer pain points In 2018, we centralised the management of
c omp lain ts t o imp rov e ho w th e y a re id e ntif ie d , lo gg e d a n d re so lved . This in clu de d a sh if t in cu ltu re t o see co mp la int s a s a n
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%
in crea se o n FY1 9 . I n a d ditio n, we h ave : Red uc ed a ve ra g e time to reso lut ion fo r co mpla int s to 6 .5 d ay s, f ro m 9 d ay s in FY1 9 ;
Reduced the number of long dated complaints (45+ days old) from 288 to 21 at 30 September 2020; and Solved 63% of
c omp lain ts o n th e sa me d a y in Se p te mbe r 20 2 0 comp a re d to 5 6% in Se p temb e r 20 1 9. Imp orta n tly, in sig hts fro m b ett er c omp lain t
m a n ag em e n t h av e le d to a n um b er of pr o ce ss i m p ro ve m en ts – re d uci n g pa i n po i nt s f or cu st om e rs . R e do u bl i n g ou r ef fo rt s t o
remov e IT complexity We start ed a program t o reduce c omplexity some years ago, which prioritised the upgrade of our technology
i n fr a str u ctu re w h i l e com m e nc in g th e de ve l op m en t of ou r cu sto m e r ser vi ce h u b ( w h i ch w i ll be co m e t he co n su me r b an k’ s c en tr a l
p rod u ct on -bo ard ing p latf orm). At th e same time , we h a ve sou g ht to e ns ure ou r cu sto me r inte rfa ce ha s kep t pa ce with cu sto mer
demands. This program has successfully strengthened the stability, speed and security of our systems and helped ensure the
bank remained open f or 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
t r an sfo r m at io n to b ui l d a si ng l e , m u l ti -b r an d o pe r at in g e nvi r o nm e nt . Th a t r o ad m ap e xte n ds fo r ove r m u l ti pl e ye ar s, r ec og ni si n g th at
tec hnology will change and we must be flexible. Significant work is s till required but our development plan is clear. CASE STUDY 1
Australian Banking includes Consumer and Business division products. WESTPAC GROUP 2020 ANNUAL REPORT17 Strategic
re po rt 1 S TRA TE GI C REV IE W 2 GRO UP PE RFORMA NCE 3 FINANC IAL S T A TE MENT S 4 SHA REHO LDE R INF ORMA
T ION 1 STRATEGIC REVIEW 2 GROUP PERFORMANCE 3 FINANCIAL STATEMENTS 4 SHAREHOLDER INFORMATION
T RANSFORMING OUR COMPLAINT S PROCESS This year we launc hed ‘Resolve’, a new c entralised customer c omplaints
ma n ag eme n t p lat fo rm tha t brin gs to ge th er n ine s yste ms in to o ne a nd ma ke s it e a sier f or o u r pe o ple to lo g an d re so lve co mpla in ts.
I n 20 1 8, we cha n ge d th e way we th in k ab ou t comp lain ts to impro ve th e way we id e nt if y, ma n ag e an d res olve th e m. Ho wev er, ou r
multiple legacy syst ems were holding us back . Resolv e has changed t hat by creating a s ingle plat form and an intuitive dashboard
for bankers. “This has been a huge opportunity to significantly improve the customer experience”, says Lisa Pogonoski, Westpac’s
G e ne r al M a na g er o f C ust om e r S ol u ti on s. “ H avi n g ou r p eo pl e w o r k o n on e syst em p r ov id e s a co m m on vi e w o f c om p l ai n ts a n d 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
p roc ess to re ach a g uid ed re so lu tio n th at will be mu ch fa ste r. “Re solve s up po rts the f un d ame nt al c ha ng e to h ow we th in k a b ou t
c omp lain ts,” say s L is a. “Its simple a nd co mp re h en sive fu nc tion a lit y a llo ws e mp lo ye es to o wn comp lain ts an d su pp ort s th e m to g et
t he b e st o u tco me for cust ome rs.” Th is ye a r we ha ve h alve d th e time it ta ke s t o fix lo ng d at ed co mp la int s a nd with Re so lve we are
planning for another step down.

18WESTPAC GROUP 2020 ANNUAL REPORT AUSTRAC PROCEEDINGS EXPLAINED AUSTRAC proceedings ov erview
18WESTPAC GROUP 2020 ANNUAL REPORT Strategic report The iss ues highlighted by AUSTRAC in their Statement of Claim
i n N o ve m be r 20 1 9 de ep l y d i sa pp oi n te d sh ar e ho l de r s, c ust om e r s, a n d th e c om m u ni ty , a s w e l l a s W es tp ac’ s em p l oye e s. T he
proc eedings have become a catalyst for change at Westpac. We hav e acknowledged our f ailings and are deeply sorry f or what
o ccu rred . W e h av e in ve stig at ed th e issu es a nd a re d e te rmin ed t o f ix o ur s ho rtco min g s. A b roa d er ch a ng e pro gra m is u n de rway 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-
e l e cti on . On 2 4 Se pt em b er 20 20 , w e re a che d an a g re e m en t w i t h A U S TR AC t o r eso l ve th e pr o cee d i ng s, sub j ec t t o C o u rt a pp r ova l .
T he res olution involv ed the filing of a Statement of Agreed Facts and Admissions (SAFA) with the Court, whic h 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
Co u nt er-Te rro rism Fina nc in g A ct 2 0 06 (Cth ) (AML /CTF Act ). W ha t ha pp e ne d On 2 0 Nov emb er 2 0 19 , AUS TRAC comme nc ed civil
p roc ee d in g s in th e Fed e ra l Co urt of A ust ra lia ag ain st We st pa c in rela tio n to alle ge d co nt ra ve nt io n s o f t he A ML/ CTF A ct. The S AFA
filed with the Court is av ailable 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 Trans fer
I ns truct ion s (IFT Is) o n time; In clu de d all re qu ire d inf orma tion a b ou t t he p a yer in re la tio n to o ver 7 6 ,0 00 IFT Is t ha t were rep orted on
t ime; Pa sse d on a ll rele va nt inf ormat ion in rela tion t o ap pro ximat ely 10 ,5 00 I FTIs; Ke p t a p pro priat e re co rds re la ting to o ve r 3 .5
million IFTIs; Appropriately assessed the risks posed by our correspondent bank s; and Appropriately monitored a number of
c ust ome rs’ tra nsa ct io n s fo r ch ild exp loita tio n ris k. W h ile we f aile d in o ur ob lig a tion s, th e SA FA ack no wled ge d th a t th e
contraventions were not the result of any deliberate intention to breach the AML/CTF Act. We carried out a review of these matter s
to be clear on what had occurred, understand the root cause, and determine accountability. We also commissioned a review by an
external Adv is ory Panel into Board Governance of AML/CTF obligations . The outc omes of these rev iews, 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 suffic iently unders tood; there were unclear end-to-end accountabilities for managing AML/CTF
c om p l ia n ce; a nd t he r e w a s a la ck of su ffi ci e nt AM L /C TF ex pe r ti se an d r es ou r ci ng . Th e A dvi so r y P an e l fo un d th at th e w ay th e
Board organised its general governance res pons ibilities was mainstream and fit for purpose. They noted that, with the benefit of
hindsight , and noting t he Board’s esc alating f ocus in t he area, Directors could hav e recognised earlier the systemic nature of some
o f th e fina n cial crime issu es W est pa c wa s fac in g . Th e y a lso fo un d th at rep o rt in g to t he B oa rd on fin an cia l crime ma tt ers wa s at
times unintentionally incomplete and inaccurate.

Monitoring and assessing transactions One of the most serious allegations made by AUSTRAC related to the way we monitored
t ransactions for potent ial child exploit at ion risks. In summary, West pac is required t o monitor transactions and submit suspicious
m a tt er r e po r ts to AU S TR AC i f i t id e nt if i es th at ce rt ai n p at te rn s o f tr an sa cti o ns ar e i n di ca ti ve o f ch i l d exp l oi t at io n . W h il e w e had
monitoring in place, we should have implemented more robust monitoring of transactions for this risk earlier than we did. Since th e
AUSTRAC proceedings, we have further updated our monitoring, reassessed prior transactions and submitted additional
s usp icio us The A USTRA C p roce e din gs ha ve b ec ome a ca ta ly st f or c ha ng e a t W e stp ac .” $ 24 m ma tte r rep ort s to A USTRA C.
T aking ac countability A range of remuneration consequences were applied to 38 individuals, totalling over $20 million1. This
included cancelling 2020 short-term variable reward (STVR) for the Group Executive team and, in some instances, adjusting prior
y ea r a w ar d s th a t h ad y et to ve st. C o nse q ue nc es w er e n ot ab l e to b e ap pl i e d to so m e i n d iv id u al s as th ey ha d al r e ad y l e ft th e
organisation and had no deferred remuneration outstanding. Established a Board Legal, Regulatory & Compliance Committee
c om m i tt ed to t w o si gn i fi ca nt pa r tn er sh i ps to r ed u ce th e hu m an i m p act o f f in a nci a l cr i m e Fi xi ng o ur m i st ake s Wi t hi n d ays of
AUSTRAC’s allegations, we released a Res pons e Plan which detailed our areas of focus. Immediate fixes : This included c losing
the two products that were the main s ource of our failings and reporting a s mall number of outs tanding IFT Is to AUSTRAC. Lifting
a n ti - m on ey l au n de r in g a nd r i sk m a na g em e nt st an da r ds : W e co m m en ce d a p r og r a m to e le va te th e i m po r ta nce o f fi na nc ia l cr i m e
across the Group, with more resources, increased seniority, and greater oversight. We also updated our transaction monitoring
rules and enhanced ov ersight of the processes. Developments include: Establishing a Board Legal, Regulatory & Complianc e
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 organis ation will complement the improved capability we are building in
financ ial crime, including enhancing our risk c ulture. Safer Children, Safer Communities We have also established a Safer
Ch ildre n, S afe r Co mmun ities wo rk pro gra m to h e lp re du ce th e hu ma n imp ac t o f fina nc ia l crime with a pa rticu lar f ocu s on ch ild
safeguarding, guided by experts in human rights, child safety, online safety and law enforcement. This year, we established multi-
y ear funding partnerships with International Jus tice Mission and Save the Children (Australia), and launched a new Impact Grants
p rog ram. Fo r more a bo u t th is, see p a ge 3 6. W ES TP AC G ROUP 2 02 0 ANNUA L REP ORT 19 S trat eg ic re po rt 1 S TRA TE GIC
REVIEW 2 GROUP PERFORMANCE 3 FINANCIAL S T A TEMENT S 4 SHAREHOLDER INFORMA TION 1 STRATEGIC
REVIEW 2 GROUP PERFORMANCE 3 FINANCIAL STATEMENTS 4 SHAREHOLDER INFORMATION 1 Refer to explanation in
Remuneration Report in the Directors’ Report.
##soft-

20WESTPAC GROUP 2020 ANNUAL REPORT Strategic report 20WESTPAC GROUP 2020 ANNUAL REPORT OUR
PRIORITIES Simplify Returning to our core businesses of banking in Australia and New Zealand, including exiting s ome
businesses and international locations. Rationalising products and simplifying processes to make it easier for customers to bank
with us.

Specialist Businesses revenue contribut ion to G roup1 8% 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
t r act io n i n so me o f ou r co r e b u si ne sse s. At th e sam e t im e , ou r o pe r ati n g m od e l be ca m e too d i ffu se d. Th at i s, de ci si o n m a ki n g w as
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
c lear on the locations, markets and businesses in which we will operate. Changes inc lude: Setting up the Specialis t Businesses
division to hold the businesses which we do not view ourselves as the long-term owners of; BUSINESS Customer engagement
B u si ne ss Le nd i ng C a sh M a na ge m e nt Pr i va te W ea l th W IB C u sto m er e n ga ge m e nt C or p or a te a nd I nst i tut i on al Ba nki n g Fi na n ci al
M a r ke ts G l ob a l Tr an sa cti on a l Se r vi ce s Fo r ex am p l e, i n ou r M or t ga ge s L i n e o f Bu si ne ss a M an ag i ng D i r e cto r i s r e spo n si bl e fo r th e
entire mortgage process from origination, pricing, credit assessment and service. We are clear on the locations, markets and
businesses in which we will operate.” CONSUMER Customer engagement Mortgages Everyday Banking Consumer Finance
WESTPAC GROUP 2020 ANNUAL REPORT21 Strategic report 1 S T RA TEGIC REVIEW 2 GROUP PERFORMANCE 3
F INANCIAL S T A TEMENT S 4 SHAREHOLDER INFORMA TION 1 STRATEGIC REVIEW 2 GROUP PERFORMANCE 3
F INANCIAL STATEMENTS 4 SHAREHOLDER INFORMATION 1 Cash earnings excluding notable items.

22WESTPAC GROUP 2020 ANNUAL REPORT To improv e c ustomer service, we mus t simplify the way we operate; this includes
streamlining our products and digitising processes.” 22WESTPAC GROUP 2020 ANNUAL REPORT Strategic report Inspired to
k eep it simple and easy Simplify ing 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 initi at i ves
c on tr i bu ti n g to si m pl e r a nd b et te r cus to m er e xp er i en ce i n FY 20 i n cl ud e: C o nsu m e r Im pl e m en te d o ver 5 0 ch an g es to o ur m o r tga g e
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
p rod u cts. W IB Simp lifying o u r Glo ba l Tran sa ctio n Se rvice pro du ct pla tfo rm a nd re fo cus in g on c ore ca pa b ilitie s; an d Red u cing th e
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).

WESTPAC GROUP 2020 ANNUAL REPORT23 Strategic report 1 S TRA TEGIC REVIEW 2 GROUP PERFORMANCE 3
F INANCIAL S T A TEMENT S 4 SHAREHOLDER INFORMA TION 1 STRATEGIC REVIEW W t a Transforming digital We are
modernising and simplifying our technology, using digital to streamline and automate processes and lift our data capabilities to
s up po r t ri sk m an a ge m en t e a r e us in g d ig i ta l an d a be tte r cu sto m e r exp e r ie n ce. o str e am l i n e a n d ut om a te p ro ce sse sTh e eve n ts o f
this year have emphasised the need to operate using online channels. Our people have responded to a huge increase in demand
f or online serv ic es. Developments t his year hav e included: — Opening new accounts and providing card access t o elderly
c ust om e r s to a vo i d ha vi ng t o en te r a br a nc h; — D e ve l op i ng o nl i n e fo rm s to m an a ge cu st om e r de m a nd fo r p aym e n t d ef er r a ls ; —
E xp an d in g th e us e of th e ne w p ay me n tsC e nt r al t o ou r di g i ta l tr an sf or m a ti on h as p la tf or m f or S t.G eo r ge c ust om e r s;b ee n th e ne e d
to improve data quality and — Introducing a COVID-19 chatbot to betterdata management. We have established a assist
A u str al i a n cus to m er s w i t h q u er i e s;d at a q u al i ty an d m an a ge m en t ass ess m en t — B ei n g o n e of th e fi r st b a nks to e na b le d ash b oa r d,
a series of metrics assessing access to data as part of the Opendata quality and our data infrastructure. All Banking initiative;t he
me trics imp rov ed o ver the y ea r d ue to : — L au n chin g (wit h ot he r Au st ra lian b an ks)— In trod u cing mo re c en tral ove rsigh t to a ne w
blockchain technology to digitisedata quality and management; the bank guarantee proc ess ;— I mplementing data quality
me a sure men t — E xp an din g W IB’s dig ita l ba n king an d mon ito rin g a cross th e Gro up ; a n d p la tfo rm – to mak e it e asie r fo r—
Implementing a new data certification corporates to manage their balanceprocess for new and changed processes. sheets; and —
Creating new digital processes in New Zealand including digital credit submissions, complaints capture, and online forms for
COVID-19 related as sistance. CASE STUDY 2 GROUP PERFORMANCE 3 FINANCIAL STATEMENTS NEW MOBILE APP
B RING S SIMP L ICITY W e stp ac’s ne w a p p la un ch e d t o 24 0 ,00 0 cu sto mers at th e en d of th e ye ar. It will b e a vaila ble to a ll
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
s implifies what customers do most and makes every thing els e easier. Developed in c ollaboration with Apple and Google,
customers can initiate payments without opening the app via Apple’s intelligent assistant Siri. Other features include drag and drop
t r an sfe r s, f i nd i ng t hi n gs qu i cke r w i th ’ sm ar t se ar ch ’ , st ar t Ap pl e P ay se tu p w i t h a s in g l e t ap , est ab l i shi n g a ‘c ar d h ub ’ th at keeps
track of plastic and personalising the app with wallpapers. More features will be rolled out in 2021. “Our Digital and GroupTech
t ea m s h a ve l is ten e d to cu sto m er s an d re i m ag i n ed o ur m o b il e b an ki n g exp e ri e nc e. C us tom e r s t ol d u s th e y w a nt ed si m p l er a nd
f as ter ba nk in g . W e ’ve simplifie d the n a viga tio n an d pa yme nt s a re f ast er t o frien ds a nd fa mily,” sa ys Ma rtin e Jag e r, Ch ie f 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.” 4 SHAREHOLDER INFORMATION

24WESTPAC GROUP 2020 ANNUAL REPORT Strategic report 24WESTPAC GROUP 2020 ANNUAL REPORT OUR
PRIORITIES 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
R o g er s, W es tpa c Pe rs on al Ba nk in g Ad vi so r

#1 Bus iness Banking NPS ranking2 #3 Consumer NPS ranking3 Helping when it matters – a core commitment Helping
Australians and New Zealanders succeed has been behind our success for over 200 years . Howev er, this year’s challenges and
u n cer t ai n ti es ha ve t est ed u s. Wh i l e w e re ta i ne d ou r n um b e r on e se rvi ce r a nk in g i n Bu si ne ss Ba n ki ng 1, 2 ag ai n st th e oth e r m aj o r
Australian banks, we remained at number three in Consumer3. 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
e n vi ro n m en t a n d w or ki n g ti r el e ssl y t o s up po r t c ust om e r s a nd b u si ne sse s t hr o ug h th e up s a nd d o w ns of th e ye ar . Au str a li a n
C o n sum e r N P S h a s i m p ro ve d ove r th e ye ar bu t o u r ra n k h as no t i ncr e as ed . I n pa r t, thi s w as be ca u se w e di d n ot ad e qu at el y kee p
up with increased demands for assistance in our Contact Centres. In addition, some of our offshore partners were disrupted by
l o ckd ow ns, w h ic h i m p ac te d s er vi ce i n m or t ga ge s. Su p po r ti ng cu sto m e rs w h en i t m a tt er s mo st i s o ne o f ou r co re c om m i tm e nt s a nd
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
c ustomers.” DIGITAL ENHANCEMENTS DURING COVID-19 The impact of COVID-19 was both s ignificant 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
wa it times which wa s f ru st ra tin g fo r cus to me rs. In resp o nse , we crea te d a dig it al s olu tion f or c ust ome rs to a p ply f or a n immed iat e
repayment def erral online or via mobile, giving inst ant c ash f low relief. It also allowed customers t o ex it or ext end their s uppo r t
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 t hose customers wit h more complex solut ions. WEST PAC GRO UP 2020 ANNUAL REPORT25 Strategic
re po rt 1 S TRA TE GI C REV IE W 2 GRO UP PE RFORMA NCE 3 FINANC IAL S T A TE MENT S 4 SHA REHO LDE R INF ORMA
T ION 1 STRATEGIC REVIEW 2 GROUP PERFORMANCE 3 FINANCIAL STATEMENTS 4 SHAREHOLDER INFORMATION Net
P r om o te r Sc or e m e asu r es th e ne t l i ke l i ho od o f re co m m en da ti o n to o th er s o f th e c ust om e r ’s m a in f in a nci a l i ns ti tu ti on f or r e ta i l or
b u si ne ss ba nk in g . N e t Pr om o te r S cor e SM i s a t ra d em a r k o f B a in & C o In c., S atm e tr i xS yste m s, In c., an d M r Fr ed e ri ck R ei ch h el d .
Us ing a 11 point numerical scale where 10 is ‘Extremely lik ely’ and 0 is ‘Extremely unlikely’, Net Promoter Score is calculated by
s ub tra ctin g t he p e rce n ta ge o f De tra cto rs (0-6 ) fro m th e pe rce nta g e of Pro mot ers (9 -10 ). S ou rce : DB M Co nsu lta nt s B usin e ss A tlas ,
March – August 2020, 6MMA. MFI customers, all businesses. Source: DBM Consultants Consumer Atlas, March – August 2020,
6MMA. MFI Westpac Group customers. “I’m inc redibly 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
Dig ita l te am.

Helping customers through COVID-19 and natural disasters COVID-19 has changed many aspects of life, inc luding how we bank .
C i t ie s ha ve at ti m e s b ee n d ese r te d, th e us e of ca sh ha s d r am a ti ca l ly fa l l en , a n d de m an d s o n ou r co nt act ce nt re s ha ve e scal a te d.
Vulnerable customers, many of whom prefer face-to-face banking, have not been able to visit branches. In short, many customers
a r e do i ng i t to ug h . W e w e re t he fi r st m aj o r b an k t o o ff er c ust om e r s a C O VID - 1 9 re l i ef p ack ag e on 1 1 Feb r ua r y 2 0 20 a nd
responded quickly by redirecting resources to where they were needed most; closing some branches, and helping customers
a d op t to ne w wa ys of ba n king . We wo rked h a rd t o he lp tho se in fin an cia l diff iculty b y p ro vid ing rep a ymen t de fe rra ls a nd b ridg ing
fac ilities 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. SUPPORTING CUSTOMERS ~175k mortgage deferral
p a cka ge s ~4 0k d efe rrals fo r bu sine sse s ~2 2 0k ea rly rele a se sup e ra n nu at ion a pp licat ion s p a id P ROV IDING CRI TICAL B ANK ING
S E R VIC E S AN D IN FR A STR U C TU R E > 9 0% o f b r an ch ne tw o r k r e m ai n ed o pe n 1 1. 5k ne w e m pl o ye es re cr u it ed t o o u r cu sto m er
service teams2 SUPPORTING EMPLOYEES TO WORK EFFECTIVELY Workplace COVID-19 hygiene and safety measures in
p l a ce, i nc lu d in g te m pe r at ur e ch ec ki ng st at io n s ~ 2 2k ( 85 %) e m pl o ye es w or ki n g fr om ho m e1 1 .3 m m a sks p r ov id e d to em p l oy ee s
1m+ hours of audio and video calls Updated policies and standards to help protect the physical and mental health of our people
STANDING BEHIND T HE ECONOMY AND COMMUNITIES Supported local community organis ations and social enterprises
t hr o ug h W es tpa c Fou n da ti o n g r an ts an d o th er ch a ri t ab l e do na ti o ns M ai n ta i ne d fo cus o n c ust om e r s a nd co m m u ni ti e s a ffe ct ed b y
bushfires 26WESTPAC GROUP 2020 ANNUAL REPORT Strategic report At the peak of the COVID-19 restrictions acros s
Australia. March to September 2020.

WESTPAC GROUP 2020 ANNUAL REPORT 27 CASE STUDY Many Australians faced the impacts of prolonged drought,
d e vas ta ti ng b us hf ir e s a n d s to rm s ov er t he ye ar . W e he l pe d cu sto m er s thr o ug h a r an g e o f sup p or t pa cka g es. ” Ll o yd Pi g r am ,
St.George Ulladulla branch manager, with customer, Lyn Grey, at her Lake Conjola property WESTPAC GROUP 2020 ANNUAL
REPORT27 Strategic report 1 S TRA T EGIC REVIEW 2 GROUP PERFORMANCE 3 FINANCIAL S T A TEMENT S 4
SHAREHOLDER INFORMA TION 1 STRATEGIC REVIEW 2 GROUP PERFORMANCE 3 FINANCIAL STATEMENTS 4
SHAREHOLDER INFORMATION Over the year, many Australians faced the impacts of prolonged drought as well as devastating
bushf ires and storms . Large areas of bus hland, numerous farms, and t ownships were severely affected. I n some cases,
c om m u ni ti e s w e r e ev acu a ted a n d ho m es an d b usi n es ses de st ro ye d. W e he l pe d cu sto m er s ba ck o n to th ei r f ee t thr o ug h a r an g e o f
c ust om e r su pp o rt p ack ag es , i n cl ud i ng : D ro u gh t – e xte n de d ou r su p po r t to c ust om e r s u nd e r a ne w d r ou gh t ass is tan ce p ac kag e ;
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 c ash 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
F in a nci a l C o un se ll i n g Au str a l ia , Sta te - ba se d vol u n tee r fi r e se r vi ces an d th e Fo un da ti o n fo r R ur a l an d R e gi o na l R e ne w a l. Fo r m ore
on our bushfire response, see our Sustainability Performance section on page 33. HELPING THROUGH BUSHFIRES On New
Year’s Eve in 2019, bushfires ravaged the NSW South Coast and swept through the seaside village of Lak e Conjola. Many
p rop e rt ies were ta ke n, inc lu d ing th e h ome o f S t.G eo rge c ust ome rs, L yn a nd h er 92 -yea r-old mot he r, S ha ro n. “We lo st eve ryth ing .
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 loc al Ulladulla branch. As part of their weekly trip to town, they stop in to see the team and branch manager, Lloy d
P i gr a m . W h en L l oy d he ar d th e n ew s, h e g o t st r ai g ht i n to uch , an d ar r a ng ed a $ 2, 00 0 em e r ge n cy g r an t to he l p th e fa mi l y ba ck o n to
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
o th e r cu sto m er s, Lyn a n d Sh ar o n ha ve b ee n th ro u gh so m u ch ,” sa ys L l o yd. “ It’ s be en h u m bl i ng t o w it ne ss th ei r r es il i e nc e. The y
deserve every second of happiness their new home brings.” $2,000 emergency grant provided by St.George Bank to help get back
on their feet

28WESTPAC GROUP 2020 ANNUAL REPORT Strategic report HELPFUL Passionate about providing a great customer
e xp erie nc e E THICA L Trust ed t o do th e righ t t hin g LE ADI NG CHA NGE De te rmin e d to make it be tt er a n d be b et te r PE RFORMI NG
Accountable to get it done SIMPLE Inspired to keep it simple and easy Our five values – helpful, ethical, leading change,
performing, simple (or HELPS) – guide the way and help us achiev e 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 A motivated workforce with a strong performance ethic Great service is underpinned by
a h i gh l y m o ti va te d w or kf or ce w h o ar e ca pa b le , en ga g ed a nd d r i ven b y a s et of cl e ar va l u es. In r e spo n di n g to th e cha l l en g es 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
A cco u nt ab i li t y ( C GA ) se l f- ass ess me n t. Thi s is n ow c ha n gi n g. W e ha ve co m m en ce d a c ul tu r e pr o gr a m th at w i l l bu i l d on o ur
s tr en g th s o f h el p i ng w h en i t m at te rs , ca r e an d em p a th y. Th e p ro g ra m fo cu se s o n cr ea ti n g a s im p l er an d str o ng er bu si ne ss w it h
h i g h- p er fo r m in g te am s w he r e ev er yo ne k no w s t he i r ro l e i n de l iv er i ng f or c ust om e r s, a n d is ab l e to co ns tr uc ti vel y ch al l en g e an d
r a i se i ssu es ea r l y. A t t he sa m e ti m e , i t w i ll h e l p u s to tu rn a r ou n d the a sp ec ts o f ou r cu l tur e th a t a r e ho l di n g us ba ck, su ch as
c omplexity, s low decision making and diluted accountability. Our new purpose and simplified values and behaviours also support
t hi s cul t ur a l ch an ge . D esp i te th e ch al l e ng es fa ce d ove r th e ye ar , em p l oy ee l oy al ty a nd su pp o rt h as be e n li t tl e cha n ge d. E m pl o yee
commitment was 73% at September 2020, up from 72% at the end of FY19.

R es tor i n g m or tg a ge g ro w th i s a key pr i o ri t y S tr on g ba l an ce sh e et an d i m pr o ve d c ap i ta l ef fi ci en cy M ai n ta in i ng t he st r en gt h of our
b a lan ce sh ee t wh ile imp rov in g ca pit al e ff ic ie n cy is crit ic al in th is e n viro n men t. To main ta in c ap ita l stre ng th , we h ad t o make some
d i ff ic ul t de ci si on s ove r th e ye ar i n cl ud i n g r a i si ng ca p it al i n N o ve m be r 2 01 9, a nd n ot p ayi n g th e 20 20 i n te ri m di vi d en d. W e
r e co gn i se th at m a ny sha r eh o ld e rs r el y on d i vi de nd s, e spe ci a ll y sel f -f un d ed r et i re e s. H o w e ver , gi ve n th e en vi r on m e nt an d
circumstances at the time, this decision was considered to be in the best long-term interests of Westpac and of shareholders. Our
c ap ita l po sitio n is stro ng a n d ou r CET 1 c ap ita l ra tio wa s 1 1 .13 % at 3 0 Se pt emb er 2 0 20 . F un din g an d liqu idity a ls o re main ro bu st,
and well above APRA’s minimums. This solid foundation allows us to continue supporting customers and the economy through this
c hallenging time. Improved capital effic iency will als o emerge as we exit businesses in our Specialis t Busines ses div is ion. In
a d ditio n to n ot b ein g c ore to o ur fut ure , t he se a ctivitie s ty pica lly h ave c ap ita l re tu rns be lo w th e Gro up a ve ra g e. W e are also
r e co nsi d e ri n g ot he r l ow - r e tur n i ng p r od uc ts/s er vi ce s w h e re a p at h to ac cep ta b le r e tu rn s i s di f fi cul t to a ch ie ve . R e st or i ng m o r tgag e
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
growt h relative to sys tem in t he year ahead. Productivity – a continual focus As growt h slows, improving eff ic iency bec omes even
more important. Ov er recent years we have improv ed efficienc y by between $300 million and $500 million annually. In 2020, we
s aved over $400 million of costs, although this was offset by inflationary cost increases, higher risk and compliance costs and
a d ditio n al re sou rce s d ev ote d to o ur COV ID-19 re spo n se. W hile o ur p riority re ma in s s up po rtin g cus tome rs t hro ug h th is d if ficu lt
time, we have not lost sight of the need to res et our cost base and fundamentally improve efficiency . In part, effic iency 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. WESTPAC GROUP
2020 ANNUAL REPORT29 Strategic report 1 S TRA TEGIC REVIEW 2 GROUP PERFORMANCE 3 FINANCIAL S T A TEMENT
S 4 SHAREHOLDER INFORMA T ION 1 STRATEGIC REVIEW 2 GROUP PERFORMANCE 3 FINANCIAL STATEMENTS 4
SHAREHOLDER INFORMATION CASE STUDY SHIFTING FOCUS DURING COVID-19 Manly Spirits founders, Vanes sa and
Da vid W hit ta ker (p ictu red ), ma de so me fa st de cision s this ye ar t o k ee p th eir b us in e ss o p era ting . Wit h a t as ting b ar in B roo kva le in
Sydney’s northern beaches, the craf t spirit s distillery has built a strong loc al f ollowing. I ts s pirits are also sold ac ross Australia
through independent and large retailers with international exports growing rapidly. “Our customers lov e 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 a n d
extended our business loan to expand the production of dark spirits.” With the pandemic came social distancing and bar closures
and the business shif ted its focus to retail outlets. It also divert ed res ources 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.”

BUILDING A SUSTAINABLE FUTURE As one of Australia’s largest financial institutions, we recognise our role in helping to
c reate positive s ocial, economic and env ironmental impact. Every y ear, through our sustainability materiality asses sment process,
w e i d en ti f y th e bu si n ess o pp or t un i ti es an d ch al l e ng es th at m a tte r m o st t o ou r sta ke ho l de r s. Thi s he l ps i nf or m o ur a p pr o ach t o how
we c reate long-t erm sustainable value for our customers, employees, suppliers, shareholders and communities. 2020 most
material sustainability topics Conduct and culture Poor conduct has eroded public trust in Westpac and the financial services
s ect or . In r es po ns e, w e ha ve p l an s i n p la ce d es ig n ed to s tr en gt he n o ur cu l tu r e, an d i m pr o ve ou r p r oce sse s t o de l iv er b e tte r
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 s trong balance sheet underpins our ability to support cus tomers, the economy and
the Group’s long-term success. Changing regulatory landscape Supervision and regulation in the financial services sector
c on ti n ue s t o evo l ve , cr e at i ng ch an g e an d co mp l e xi ty i n h ow w e op er a te . C u sto m e r sat i sfa cti o n an d exp e ri e n ce C ust om e r s w a nt
banking to be easier, simpler and more efficient. At the same time, customer needs are becoming more complex. Customer
v ulnerability and hards hip Our ability to support customers in times of hards hip and antic ipate when they are v ulnerable allows us
t o help when it matters most. Customer safety and access Maintaining an environment where c ust omers 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
s ecu rity a n d da ta p riva cy Main ta in in g c on fid en tia lit y a nd th e se cu rit y o f o ur syste ms a n d da ta is p a ra mou n t in ret ain ing t he trust
and confidence of our stakeholders. Workforce wellbeing and talent retention Maintaining a s ecure, flexible and s upportive
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 s upport those in need including in times of emergency and
recovery. We also support initiat ives that address complex societ al and economic is sues. 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 lendi n g,
u n de r sta nd i ng o u r r ol e i n sup p or ti n g In di g en o us com m u ni t ie s, ou r i n ves tm en ts i n fu nd s, an d th ro u gh o ur s up pl y ch ai n .
3 0 W ES TPA C G R OU P 20 2 0 AN N U A L R EP OR T Str a te gi c re p or t Ou r ap p r oa ch to i d en ti fyi n g ou r m a ter i a l su sta i na bi l i ty to pi cs i s
aligned to the Global Reporting Initiative (GRI) Standards (2016) and the AA1000 Ac countAbility Principles Standard (2018).

Founding bank and signatory to the Principles for Responsible Banking announced in September 2019. Supporter of the United
N a ti o n’ s Su sta i na b l e D e ve l op m en t Go al s (S D Gs ) an d i ts ag en d a for act io n o n im p r ovi n g th e w el l b ei n g of pr e se nt an d fu tu r e
generations. Signatory to the Business Coalition Statement on Climate in 2015, which highlights our support for the Paris Climate
A g re e men t t o limit glo ba l wa rmin g to les s th a n two de g re e s Ce lsius ab o ve pre -in du st ria l lev els. Fou n din g sign a tory to th e Unit ed
Nations Global Compact and a supporter of the UN’s ‘Protec t, Respec t, Remedy ’ framework. Climate change reporting aligned to
the recommendations of the Tas k Force on Climate-related Financial Disc losures. We update our sus tainability strategy every
t hr e e ye ar s. Ou r l ast su sta i na b i li ty str a te gy w as l au n che d i n 20 1 7 a n d cen tr e d on th r e e p r i or i ti e s w h er e w e b el i ev ed w e co u ld have
the greatest impact and create sustainable long-term value by: Helping people make better financial decisions Helping people by
being there when it matters most to them Helping people create a prosperous nation WESTPAC GROUP 2020 ANNUAL
REPORT31 Strategic report 1 S TRA T EGIC REVIEW 2 GROUP PERFORMANCE 3 FINANCIAL S T A TEMENT S 4
SHAREHOLDER INFORMA TION 1 STRATEGIC REVIEW 2 GROUP PERFORMANCE 3 FINANCIAL STATEMENTS 4
SHAREHOLDER INFORMATION CultureFundamentals The following pages assess our progress on this s trategy 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
e xce e di n g ove r 8 0% o f t he m e asu r es se t i n 2 01 7 1. 1 Tot al n u m be r o f m e as ur e s m e t d i vi de d by to ta l nu m b er o f me a sur e s.

32WESTPAC GROUP 2020 ANNUAL REPORT BUILDING A SUSTAINABLE FUTURE Sustainability performance progress
Progres s highlights in the final year of our 2018-2020 Sustainability Strategy. 32WEST PAC GROUP 2020 ANNUAL REPORT
Strategic report During the past year we delivered a range of financial education programs reaching an estimated one million
i n d iv id u al s, as w e ll as bu si ne sse s, no t fo r- p r ofi t o rg a ni sa ti o ns an d co mm u n it y g r ou p s th r ou g h W e stp a c’ s D a vi ds on In sti t ut e i n
Australia and the Managing Your Money program in New Zealand. Together with the launch of a new online platform, we
introduced new eas y to unders tand content, inc luding a financial fitnes s course. Other initiatives include financial c apability
r e so ur ce s f or y ou ng A us tr al i a ns vi a Ye ar 1 3 a nd th r ou g h ou r n ew I ns tag r am TV cha n ne l ; w o m e n v ia R u b y C o nn e cti on ; an d ol d e r
A u str al i a ns vi a St ar ts at 6 0. Al i g nm e nt to t he su sta i na b l e d e vel o p me n t g o al s N e w a n d si mp l e r pr o du cts an d se r vi ces C us to me r s
w a n t si m p l er , sm ar t er a nd s mo o th er b a nki n g. W e co nti n u e t o re vi e w o ur p r od u cts an d pr o ces ses to r e du ce co m pl e xi ty a n d
improve service. To improve the home ownership experience, we now have digital tools to help customers prepare for their first
h o m e lo a n ap po i nt m en t, up l oa d d ocu m e nts , a cce pt a l oa n o ffe r i n on e cl i ck a n d t r ack th ei r a p pl i ca ti on vi a o nl i n e ba nk in g th r ou gh
to settlement, with reminders and alerts. With 80% of digital customers us ing 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.

WESTPAC GROUP 2020 ANNUAL REPORT33 Strategic report 1 S TRA TEGIC REVIEW 2 GROUP PERFORMANCE 3
F INANCIAL S T A TEMENT S 4 SHAREHOLDER INFORMA TION 1 STRATEGIC REVIEW Helping those in need of extra c are
We continue to improve support for customers in v ulnerable circumstances. This year, we introduced an ent erpris e-wide s tandard
to help our people support customers in vulnerable circumstances. In addition, we developed our Family or Domes tic 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 ex periencing Helping peoplechallenging circumstances such as the loss of a loved one, div orce
or separation, by being thereor elder financial abuse. Following the COVID-19 restrictions, we offered when it matterssupport for
elderly customers and people experiencing vulnerability to set up most to themcontactless banking. Our teams are working hard to
supportRemote banking support customers, communities and theWestpac Remote Services supports economy throughout the
COVID-19Aboriginal and Torres Strait Islander pandemic. Our initial res pons e foc usedcus tomers in remote communities who on
protecting our people and customersmay face geographic, language and cultural while remaining open for business andbarriers to
a cce ssi n g fi n an ci al ser vi ce s. pu tt in g i n pl a ce a ra n ge o f c ust om e r su pp o rt p ack ag es su ch as m or t ga ge a n dFi r st pi l o ted i n 2 01 8 ,
this year we business loan deferrals. Our focus has nowexpanded Yuri Ingkarninthi, our Indigenous shifted to working with
c ustomers whoConnection call c entre, to c ustomers Supporting more thanin all States and Territories, conducting 24,000
customersneed more individual support.over 18,000 customer conversations to experiencing vulnerability throughBefore COVID-
1 9 , m a ny cu sto m er s an ds up po r t a v ar i et y o f r e m ot e ba nk in g n ee ds . o ur spe ci a li st te a m scom m u n it i es w er e , a nd c on ti n ue to
be,These included access to cards or cash, impacted by drought and last summer’sestablishing telephone and internet banking
devastating bushfires. Support packagesand resolving issues related to scams included mortgage and business loanand fraud.
deferrals, emergency cash grants and a $100 million fund to provide carry-on finance loans of up to $1 million to existingAlignment
to the sustainable development goals 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. 2 GROUP
PERFORMANCE 3 FINANCIAL STATEMENTS 4 SHAREHOLDER INFORMATION

34WESTPAC GROUP 2020 ANNUAL REPORT 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
g rea t cu sto mer co n versa tio ns an d d ee pe n rela tio nsh ips . W e h ave a lso pa rtn ere d with lea din g un ive rs it ies to o ffe r emp loy ee s a
range of micro-c redentials in disciplines such as risk, lending and service. 719 jobs West pac Foundat ion1 grant s to s ocial
enterprises helped create 719 jobs2 for vulnerable Australians Helping create jobs for vulnerable Australians Westpac
F oundation1 paid $2.3 million in grants to help organisations that prov ide 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 w ith industry partners to offer access to pro bono skills. This year, Westpac Foundation also partnere d
with the Foundation for Rural and Regional Renewal (FRRR) to award grants to 50 community organisations in rural, regional and
remote communities affec ted by drought, bushfires and COVID-19. 34WESTPAC GROUP 2020 ANNUAL REPORT Strategic
report D elivered over $150 million in community inves tment3 CASE STUDY THE BREAD AND BUTTER PROJECT The Bread
and Butter Projec t is Australia’s first social enterprise bakery , investing all its profits into training and employ ment f or refugees and
asylum seekers. As a wholes ale bakery, the c losures of cafes and restaurant s due t o COVID-19 initially result ed in a 60% los s in
re ve nu e . W ith W es tp ac Fou n da tio n’s sup p ort, th e Pro je ct ex pa nd e d it s d istribu tio n to W oo lwort hs Metro st ore s. T his h e lpe d th e
b a kery incre as e s ale s a nd k ee p its b a kers an d train ee s emp loye d . Re fe r to fo o tn ote o n p ag e 13 . Job s c re a ted t hro ug h th e
Westpac Foundat ion job creation grants to social enterprises are for the year ended 30 J une 2020. Exc ludes commercial
sponsorships.

CASE STUDY I plan to use my Fellowship as an opport unity to showcase what is possible and inspire young scient ists t o follow
their pass ion.” Dr Jacquiline Romero, Westpac Scholar A QUANT UM ALPHABET Quantum physicist and Westpac Sc holar 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 poss ible and ins pire young scientists to follow their passion.”
“ Th e Fe ll o w sh ip i s ex pa nd i ng m y ne tw o r k b ot h in si d e an d ou tsi d e of a cad e m ia , w hi ch e nc ou r ag es a br o a de r co nve r sa ti on b ey on d
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.” Tomorrow’s leaders Westpac Scholars Trust4 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 v alued at $24.6 million in partners hip with 22 universities across Aus tralia.
W e stp a c S cho lars are ta len te d Au st ra lian s f ocu se d on t ack lin g a ra n ge o f iss ue s, from find ing t re a tmen ts to rare d isea se s, to
c re a ting in no va tive b usin es ses th at h elp so lve so cial p rob lems . To da y the re are a lmo st 50 0 W es tp ac Sch o la rs. $3 .9 m In f ull ye a r
2020 Westpac Sc holars Trust awarded $3.9 million in educational scholarships to the next 64 Westpac Scholars WESTPAC
GROUP 2020 ANNUAL REPORT35 Strategic report 1 S TRA TEGIC REVIEW 2 GROUP PERFORMANCE 3 FINANCIAL S T A
T EMENT S 4 SHAREHOLDER INFORMA TION 1 STRATEGIC REVIEW 2 GROUP PERFORMANCE 3 FINANCIAL
STATEMENTS 4 SHAREHOLDER INFORMATION 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
t r ust a nd n ei th e r th e Tr ust n or t he Tr u ste e ar e p ar t of W est pa c G r ou p . W e stp ac pr o vi de s ad m in i str a ti ve su pp o rt , s ki ll e d
volunteering, and funding for operational costs of Westpac Scholars Trust.
##soft

3 6 W ES TPA C G R OU P 20 2 0 AN N U A L R EP OR T Au str a li a ’ s l a rg e st f i na nc ie r o f g r ee n fi el d r e ne w ab l e en e rg y p r oj e cts fo r th e pa st
three years5 - see Climate change on page 42 for more information 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 increas ed to $1.7 billion6. This reflec ts a change in market
dynamics, with funding sources to the sector more diversified. We continue to support NHFIC and its clients. Safer Children, Safe r
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,
o n lin e sa fe ty a n d la w e n force me nt. P ro g re ss th is ye ar in clud e d de ve lo p ing st ra te g ic pa rtn ersh ips with In te rna tio na l Ju stice Mission
to provide $18 million over three years to tackle online sexual exploitation of children in the Philippines, and with Save the Children
(Aus tralia) to provide $6 million ov er six years to support the deliv ery of its ‘Protect Children – Philippines’ project. We are w or ki n g
with an international non-gov ernment organis ation to inves t $25 million in cros s-industry data s haring projec ts to better detect,
monitor, report and prevent harm to children associated with financial crime. Most recently, we launched a new Impact Grants
p rog ram, a llo ca ting $ 9 .2 millio n to su pp ort co mmun ity o rga n is at io n s a nd n ot -for-p ro fits wo rk in g a cro ss a ra n ge o f c hild sa fe ty 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
F I). L as t ye a r, we b eca me th e first b a nk glo ba lly to re po rt in a lig n men t wit h the d raf t p rincip les. A lig nme n t to t he su st ain ab le
development goals 36WESTPAC GROUP 2020 ANNUAL REPORT Strategic report Source: IJGlobal, September 2020. Refers to
t he cu mu la tive To ta l A pp rove d Ex po su re t o cus tome rs in th e So cia l an d Af fo rd a ble Ho usin g se cto r sinc e 20 13 .

WESTPAC GROUP 2020 ANNUAL REPORT37 Strategic report 1 S T RA TEGIC REVIEW 2 GROUP PERFORMANCE 3
F INANCIAL S T A TEMENT S 4 SHAREHOLDER INFORMA TION 1 STRATEGIC REVIEW A culture that is caring, inclusive and
innovative We are working t o address t he culture s hortcomings out lined in t he Culture, G overnance and Accountability (CGA) self-
a sse ssm e n t, w i t h a p r og r am th at bu i l ds on o u r str e ng th s o f c ar i ng a n d em p at hy, w h il e t ur n in g a ro u nd a spe ct s o f o ur cul t ur e w hi ch
h a ve he l d us ba ck, su ch a s co m pl e xi ty an d di l u te d a cco u nt ab i l it y. O u r ne w p ur p os e a n d si m pl i fi e d val u es an d b eh av io u rs a re a l so
s up po r ti n g thi s cu lt ur a l ch an g e. Pr o m ot in g an i n cl us iv e soc ie ty, w h er e o ur w o r kfo r ce r efl e cts Im pr o vi ng t he w a y w e r e sol ve o u r
customerscustomer issues Recognising and embracing the diversity Over the past two years, we have made Average time to of
o u r pe o pl e h el p s u s t o c re a te a n s ig n i fi can t cha n ge s t o th e m a n ag em e n t r e sol u ti o n for in cl u si ve cul t ur e w h er e em p l oy ee s f ee l o f
customer complaints, both in terms complaints7 is 6.5 days, comparedthey belong, are encouraged to bring newof our processes
a n d by i de nt i fyi ng a n d to 9 da ys in 2 0 19 i de as a nd u nd e rst an d th e di ve r si ty of th ea d dr e ssi ng r o ot ca us e i ss ue s t ha t l e a d
c ommunities we s erve.to complaints. We have introduced a new CulturalInitiativ es include complaints sk illing Div ersity Leadership
Shadowing Program,sessions for bankers with a focus on first with 210 employees participating in thepoint resolution, an updated
C o m p la i n ts f ir st ye ar . Ma n ag e me n t S ta nd a rd a nd c on ti n ui n g to m ake i n fo r ma ti o n on h o w to m a ke a We st pa c w a s i n cl ud e d in t he
B loo mb erg comp lain t e a sier t o find . We h a ve also G en d er E qu a lit y In d ex fo r th e fou rth rolled o u t a n ew comp lain ts man ag e men t
c on se cut i ve yea r .sy ste m to h el p i m pr o ve th e cu sto m er W e w e lc om e d 11 5 n ew A b or i gi n al or To r r ese xp er i e nce a n d f or b e tte r
compliance Strait Islander employees and increasedand reporting. the regional footprint of our Aboriginal andWe also continue to
re fu nd c ust ome rs To rre s S tra it Is la n de r tra in e esh ip pro gra m,wh ere we h ave n o t g ot it rig ht th rou gh wh ich p ro vid es pa id fu ll-time or
school-our customer remediation programs. 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. 2 GROUP
PERFORMANCE 3 FINANCIAL STATEMENTS 4 SHAREHOLDER INFORMATION

38WESTPAC GROUP 2020 ANNUAL REPORT 38WESTPAC GROUP 2020 ANNUAL REPORT Strategic report Health, s afety
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 hav e completed training in the early
intervention and prevention of mental ill-health, and the importance of s upportive 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
expos ed t o increased ris ks of domest ic and family violence. SUSTAINABI LI TY-LINKED LOAN Westpac NZ and Contact Energy
e n te re d i nt o a $5 0 m il l i o n, fo ur - ye ar s ust ai n ab i l it y- l in ke d l oa n fa ci li t y, o n e o f th e fi rs t o f it s ki n d in N e w Ze a l an d. Th e lo an’ s
incentive targets align with continual improvement in Contact Energy’s Environmental Social and Governance (ESG) performance,
including assessment of it s climat e strategy, electricity generation mix, corporate governance and st akeholder engagement .
Sustainable lending and investment Many corporate and institutional customers are moving to more sustainable business models.
W e o ffe r a ran g e of su sta ina ble fin a nce p rod uc ts a n d service s t o sup p ort th em in t he tra ns it ion , in clud in g s ust ain ab ilit y-lin ked
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
e n ha n ced o ur po si ti o n s ta te me n ts i n cl u di n g o n cl i m at e an d hu m a n r i g ht s. H u m a n r i g ht s S ee H u m an r i gh ts on p a ge 4 0.

WESTPAC GROUP 2020 ANNUAL REPORT39 Strategic report 1 S TRA TEGIC REVIEW 2 GROUP PERFORMANCE 3
F INANCIAL S T A TEMENT S 4 SHAREHOLDER INFORMA TION 1 STRATEGIC REVIEW Environment1Our supplier inclusion
and diversity program has c ontinued to grow with C0We are committed to reduc ing the climate$19 million spent with diverse
s up pl i e r s 2 cha n ge i m p act s o f o u r op e ra ti o ns. W e du r in g th e ye ar , in cl u di n g $5 .9 m i l li o n ac hi e ved a n 1 1% r ed u cti on i n S cop e 1
andwith Indigenous-owned businesses. Maintained carbonScope 2 greenhouse gas emissions in 2020 neutral statuscompared to
2019, and a 27% reductionCommunity and social impact since 20162. The reduction over the last four years has been driven by
commercial andThrough our community programs, retail site consolidation and refurbishmentswe support our employees to make
as well as onsite solar installations. Reduceda difference in the issues and causes staff numbers at corporate sites due
t oimp orta n t t o the m. More th an 3 ,0 00 7 5 %a pp roxima te ly 2 % o f the re po rte d re d uct ion th e COV ID-1 9 pa nd e mic
c ontributedemployees participated in our v olunteering programs, sharing their skills or time to in Scope 1 and 2 emissions this
year.support community partners and social Renewable energy represents 75% ofenterprises. our lending to theResponsible
s ourcing electric ity sectorIn addition, over $2.7 million was donated We work with over 8,600 supplier partnersto more than 780
c ha r it i es th ro u gh o ur an d du r i ng th e ye ar p r oc ur e d g o od s a n dM a tch i ng G i fts pr o gr a m , w h i ch m at che s ser vi ce s w o r th $ 6. 5 b i l l io n
across Aus traliaemployee donations to eligible Australian and New Zealand.charities dollar-for-dollar. In res ponse to the Modern
Slavery Act 2018 A+(Cth), we have published a new ResponsibleFIRST GREEN LOAN IN Sourcing Code of Conduct, updated
ourSUPERANNUATI ON Responsible Sourcing assessment tool A+ rating for BT’sThis year, we launched Aust ralia’s sus tainable
investmentto increase our ability to identify risks of strategy and governance modern slavery and expanded the scopefirst green
loan developed for the through the Principlesof our assessment activities to suppliers insuperannuation sector. Working with for
Responsiblehigh risk c ategories, outside of our Top 100Local Government Super, the $65 million Investment (PR I)by spend. We
have commenced a redesigngreen loan was structured by determining of the Responsible Sourc ing Program towhich buildings in
its Local Government enhance our methods of identifying ESG Property Fund met international risks and take steps to mitigate
and manage standards for green buildings s et ESG risk s across different industries and by the Climate Bonds Initiative. deeper
into our supply chain. 1 Environmental footprint data as at 30 June 2020, unless otherwise stated. 2 FY16 Scope 1 and 2 baseline:
147,620 tCO -e. 2 2 GROUP PERFORMANCE 3 FINANCIAL STATEMENTS 4 SHAREHOLDER INFORMATION

40WESTPAC GROUP 2020 ANNUAL REPORT BUILDING A SUSTAINABLE FUTURE Human rights Respecting and adv ancing
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. 40WESTPAC GROUP 2020 ANNUAL REPORT Strategic report
Our Human Rights Position Statement and 2023 Action Plan: Commits to 19 specific actions over the next three years; and Sets
o u t t he p r in ci p le s tha t gu i de o u r ap pr o ac h an d he l ps sta ke ho l de r s i d en ti fy th e sp eci fi c po l i ci es, fr a m ew o r ks a n d oth e r do cu m en ts
where those principles are applied in practice. Our c ommitment to human rights As a major financial institution, we understand th at
through our activities we may impact on human rights, whether in our role as a financial services provider, lender, purchaser of
g o od s a n d service s, emp loye r, or su p po rte r of co mmu n ities. W e reco g nise we h av e b o th a resp o nsib ilit y to re sp ect h uma n rig ht s,
and opportunit ies t o positively impact human right s, across our value chain. I n particular, Westpac acknowledges and has taken
a cco u nt ab ilit y fo r its ina de q ua te tra ns act ion mo nito ring to h e lp id en tify p ote n tial child e xplo ita tion . Eve ry th ree y ea rs, we review
a n d up da te o u r H um a n R i gh ts Po si ti on S ta te m en t an d Act i on P la n ( H um a n R i gh ts Act i on P la n ) to l ay ou t th e pr i nc ip l es th at g ui d e
o u r ap p ro a ch an d h el p sta ke ho l de r s i d en ti fy th e sp eci fi c po l i ci es, fr a m ew o r ks a n d oth e r do cu m en ts w he r e th ose p r i nci p l es ar e
applied in practice. In May, we published our third Human Rights Position Statement since 2015, together with our 2023 Action
P lan . This set s o u t n ine te en sp e cific a ctio ns to b e ad d re sse d ov er t he n ex t th ree y ea rs fo r h ow we will mo re de ep ly e mb ed res pect
f or h u m an r i gh ts i nt o o u r bu si n ess a nd b usi n e ss r e la ti o ns hi p s, i n l i ne w i t h t he U N Gu i di n g Pr i nci p l es on B us in e ss a n d H um a n
Rights. Governance and oversight The Westpac Group Board has oversight of our approach to human rights and our management
of human right s risks. Our Human Rights Ac tion Plan is review ed 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.

WESTPAC GROUP 2020 ANNUAL REPORT41 Strategic report 1 S T RA TEGIC REVIEW 2 GROUP PERFORMANCE 3
F INANCIAL S T A TEMENT S 4 SHAREHOLDER INFORMA TION 1 STRATEGIC REVIEW 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 Supported thehuman rights have been identified as key focus areas: psychological
h e al th a n d saf et y o f o ur w or kfo r ce , p ar t ic ul a rl y i n l i g ht o f t he i m pa ct s o f b us hf ir e s a n d C O VI D - 19 M a na gi n g hu m a n ri g ht s i ssu e s
T his y ea r, we t oo k a n umb e r of impo rta nt ste ps to u plift o ur re sp ect fo r h uma n rig ht s, in lin e w it h the Hu ma n Rig h ts A ctio n Plan: —
deliv ered extra level of care and sensitivity in the way we s erve and support c ustomers experiencing v ulnerability; — progressed a
s ignificant multi-year program of work to address management of financial crime risks, including those as soc iated with child
exploitation; — commenced a series of actions and investments in Aust ralia and ac ross the Asia Pacific region through our Safer
Children, Safer Communities work program;TAKING ACTION ON MODERN — updated our ESG Credit Ris k Policy andSLAVERY
our position on certain sensitive sectors toIn response to the Modern include further guidance on human rightsSlavery Act 2018
(Ct h), th is ye ar risks an d to fu rth er e mb ed th e p rin ciple we ha ve ta ke n ste ps to e mbe d o f ‘risk t o p e op le’ a s well a s risk to thei ts
r e qu i r em e nt s a cr os s o ur b u si ne ss; op er a ti o ns an d su pp l y ch a in . — su p po r te d t he p sych o l og i cal h e al th a n dTh e se in cl u de : saf et y o f
o u r w or kf or ce , p a rt i cul a r ly i n l ig h t— id e nt if yi ng w a ys t o be tt er o f b u shf i re s an d C OV ID - 19 ; an da d dr e ss m o d er n sl av er y r i sk; —
published our Slavery and Human— conducting a modern slavery Trafficking Statement for the 2019 financialrisk assessment;
and year in accordance with the Modern Slavery— identifying areas for industry Act 2015 (UK) and made progress to
meetcollaboration. the requirements of the newly commenced Australian Modern Slavery Act 2018 (Cth). 2 GROUP
PERFORMANCE 3 FINANCIAL STATEMENTS 4 SHAREHOLDER INFORMATION

42WESTPAC GROUP 2020 ANNUAL REPORT BUILDING A SUSTAINABLE FUTURE Climate change Westpac recognis es 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. 42WESTPAC GROUP 2020 ANNUAL REPORT Strategic report Climate-related financ ial disclos ure We are committed to
m a n ag i ng o ur bu si ne ss in a l i gn m en t w i th th e Pa r is Ag r ee m e nt an d th e ne e d to tr an si ti o n to a ne t ze ro e m i ssi on s e co no m y by
2 0 50 . The r e is co nt in u ed d ev el o pm e nt i n th e cl im a te ch a ng e ag e nd a an d i nc re a si ng i n ter e st fr om in ve sto r s, r e gu l a tor s, cu sto m er s
and the c ommunity in our approach to this iss ue. T his y ear, we further integrated management of climate c hange impacts into our
business. Since 2018, the Group has published disclosures in line with the recommendations of the Task Force on C limate-related
Financial Disclosures (TCFD) and our performance against these recommendations is summarised below.

Clima te ch a ng e: S trat eg y K ey a chie ve men ts from o u r 20 2 0 Clima te A ction P lan o ve r th e yea r: CL IMA TE CHANG E SO LUTI ONS
Prov ide finance to bac k climate change solutions Increas ed lending to c limate change solutions, taking total c ommitted exposure
to $10.1 billion, exc eeding our target1 of $10 billion by 2020; and Facilitated $4.8 billion for c limate change solutions, exceed i ng
our 2020 target of $3 billion. SUPPORT BUSINESSES Support business es that manage their climate-related risks Reduced the
e missio ns inte n sity of ou r le nd ing to t he e lect ricit y g en e ra tio n sec to r from 0.3 6 tCO -e /MW h in 2 01 7 to 0 .2 5 tCO -e/ MW h 2 2 2
Maint ained our commitment t o s tringent lending standards in t he thermal coal mining s ect or; Support ed customers ’ transition
s trat egies through sust ainable finance structures, such as sustainability-link ed loans – see case study page 38; and Through BT,
c on ti n ue d ou r i n vol ve m en t i n C l i m a te Ac ti on 1 0 0+ , an i n ves tor - l ed i n i ti at i ve to e ng ag e syst em i ca l l y i m po r ta nt g re e nh ou se g as
emitters and help achieve the goals of the Paris Agreement. HELP CUSTOMERS Help individual customers respond to climate
c hange Provided over 3, 400 natural disaster relief pack ages to assist customers aff ect ed by f loods , bus hf ires and other disasters
over the year – see page 27 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
d i scl o se ou r cl i m a te ch an ge p e rf or m a nce R e du ce d Sc op e 1 an d 2 em i ssi o ns b y 2 7% si n ce 20 1 62 e xce ed i ng o ur re d uct io n ta r ge t
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 c ertified 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
s olutions Activ ely engaged in industry initiativ es on key climate change themes, including through the UN Principles for
Responsible Banking, Australian Sus tainable Finance Initiativ e, Australian Busines s Roundtable for Disaster Res ilience and Safer
Communities, and Climate Measurement Standards Initiative (CMSI). WESTPAC GROUP 2020 ANNUAL REPORT43 Strategic
re po rt 1 S TRA TE GI C REV IE W 2 GRO UP PE RFORMA NCE 3 FINANC IAL S T A TE MENT S 4 SHA REHO LDE R INF ORMA
T ION 1 STRATEGIC REVIEW 2 GROUP PERFORMANCE 3 FINANCIAL STATEMENTS 4 SHAREHOLDER INFORMATION
Progress and targets for lending to climate solutions are reported on an ‘as-at’, non-cumulative basis. 2

C l im a te ch a ng e up d at e ( co n ti nu e d) A i m to p r ovi d e $3 .5 b i ll i o n ne w l e nd i ng t o c li m a te ch an g e sol u ti o ns by 20 2 3 an d $1 5 bi l l i on by
2030 Strategy update In May, we released our updated Climate Change Pos ition 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
t r an si ti o n t o a ne t z er o e mi s si on s e co no m y i s re q ui r ed b y 2 0 50 ; eco n om i c g r ow t h an d em i ssi o n s r ed u cti o ns ar e co m pl e m en ta r y
g o al s; a dd r ess in g cl i m at e c ha n ge cr e at es op po r tu ni t ie s; cl i m ate - r el a te d ri sk i s a fi n an ci a l r is k; a n d col l e cti ve a cti o n, tr an sparency
and disclosure matter. To address c limate change risk and opportunities , our Climate Ac tion Plan identifies three areas where we
expec t to direc t our attention over the short, medium and long-term. We will: help cus tomers and c ommunities respond to climate
change; improve the climate change performance of our operations; and support initiatives and policies to achieve the goals of the
P a ri s Ag r ee m en t. Th e C li m a te A cti on P l an a l so i de nt i fi es ar e as w h er e w e w i l l con ti n ue t o im p r ov e o u r ov er si g ht, r i sk m a n ag em e nt
and disclosure of climate change risks and opportunities. Oversight The Board has oversight of the Group’s approach to and
ma n ag eme n t o f c lima te ch an g e an d rece ive s twice -ye arly u pd a te s. O u r Clima te A ctio n P lan is ap pro ve d by th e Bo ard e very th re e
y ears. T he Board Ris k Committee c onsiders and approves our Sustainability Ris k Management Framework (w hich inc ludes
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 Exec utive, Customer and Corporate Relations, comprises senior leaders
f r om a cr o ss t he G ro u p w it h re sp on si b il i ty fo r m an a gi n g We st pa c’ s su st ai n ab i l it y a ge n da , i n cl u di n g c li m a te ch an g e. Th e C ou nc il
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
F in a nce Co mmitte e co ord in a te s init ia tive s t o ach ie ve We st pa c’s clima te ch an g e s olu tion s targ et s. It re p orts to th e Cou n cil; th e
Clima te Ch an ge Risk Committ ee o ve rs ee s wo rk to id en tif y a nd ma na g e t he p o ten tia l impa ct on cre dit e xpo su re s from clima te
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 bus iness
activities as required. During the year, the Board: attended a training workshop led by industry experts to discuss climate chang e
r i sks , i n ves to r exp e cta ti o ns an d di r e cto rs ’ du ti e s; ap pr o ve d the G r ou p’ s fo ur th C l i m a te Act i on P l an i n Ap r i l 20 2 0; an d n ote d a
summary of developments in climate change in its six-monthly update. To enhance oversight of climate change we: aligned the
Clima te Ch an ge Risk Committ ee , cha ired b y th e G ro u p Ch ie f Cre dit Off icer, to b e a s ub -committ ee o f t he G rou p Cre d it Risk
Co mmitte e to imp ro ve o versig ht o f clima te -re late d fin an cia l ris ks; imp leme nt ed c lima te ch an g e u p da te s t o risk fo rums for majo r
c ust omer-f ac ing div is ions including Westpac Institutional Bank (WIB), Business division, Consumer division and Westpac New
Z ea l an d Li m i te d ; a nd co m m e nce d w or k to e nh an ce cl i m at e ch an ge r e po r ti ng t o th e B o ar d . 4 4W E STP AC GR O U P 20 20 A N N U AL
REPORT Strategic report 1 Westpac’s Climat e Change Position St at ement and 2023 Act ion Plan does not apply t o investment s
made where a Westpac Group entity is acting as a trustee (for example Responsible Super Entity licensee or Responsible Entity)
o r i n sur e r . Th e go ve r na nc e an d str a te gi e s fo r E SG r i sk i n th es e po r tfo l io s (i n cl ud i ng c li m a te ch an g e) a r e th e re sp on si b il i ty of th e
r e l eva n t b o ar d an d m a na ge m e nt of th e se en ti ti e s.

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, phys ic al and litigation risks to impact our busines s, in particular the possible
impact on credit risk, regulatory and reporting obligations, and our reputation. Through our Climate Action Plan, we set out criteria
f or l e n di n g to em i ssi o n s-i n te ns iv e an d cl i ma te - vu ln e ra b le s ect or s, su pp o rt in g cu sto m er s th at ar e i n , o r r el i a nt on , th ese se ct ors and
who assess the financial implications of climate c hange on their busines s, including how their s trategies are likely to perform under
v ar i ou s fo rw a r d- l o oki n g sce na r i os, a nd d em o ns tr at e a r i g or o us ap p ro a ch to g ove r na n ce, st ra te gy se tti n g, r i sk m a na g em e nt a nd
reporting. We review our Sus tainability Risk Management Framework, risk appetite measures and policies ensuring the criteria set
out in the Climate Action Plan are integrated. T hese criteria are applied at the portfolio, cus tomer and transac tion level where
appropriate. Escalation of climat e-related risk s to relevant divisional risk commit tees oc curs in accordance wit h the Sustainability
R i sk M a na ge m en t Fr am e w or k. If th e i de nt i fi ed r i sks ar e n ot w i th in r i sk ap pe ti te t he n th e ap p li ca ti o n of co nd i ti o ns to m an a ge 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 aspec ts of soc iety. Bomen Solar Farm in Wagga Wagga, NSW
WESTPAC GROUP 2020 ANNUAL REPORT45 Strategic report 1 S T RA TEGIC REVIEW 2 GROUP PERFORMANCE 3
F INANCIAL S T A TEMENT S 4 SHAREHOLDER INFORMA TION 1 STRATEGIC REVIEW 2 GROUP PERFORMANCE 3
F INANCIAL STATEMENTS 4 SHAREHOLDER INFORMATION CLIMATE CHANGE RISK COMMITTEE We updated our Climate
Change Risk Committee (CCRC) to improve ov ersight of climate-related financial risk s. The CCRC met three times during the
y ear. Now chaired by the Group Chief Credit Officer and reporting to the Group Credit Risk Committee, the CCRC’s objec tives are
t o: o ver se e i de n ti fi ca ti on , qu an ti f ic ati o n an d m a na ge m e nt of cl i m at e- r el a te d r is ks; i n te gr a te cl i m at e- r e la te d r is ks i n to r i sk
management frameworks, lending policies and lending guidelines; design, execute and integrate climate scenario analysis and
portfolio resilience testing; support climate c hange dis closures and reporting; and fac ilitate continuous improvement in climate-
related risk management.

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. This year we improved climate-related risk management by: establishing ’Sustainability’ as
a Level 1 Risk in the Group Risk T axonomy to enhance our focus on material sustainability risk s 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 c redit characteristics of lending
i n i n du str y sec to rs an d p ost cod e s w h i ch m ay fa ce hi g he r r i sks by 20 5 0 u n de r cl i m at e cha n ge sce n ar i o s d eve l op e d in 2 0 18 a nd
2019; completing Wes tpac New Zealand’s first climate risk disclosures in line with TCF D recommendations; and conducting a
physical ris k assessment of the impact of sea level rise on coastal flooding and erosion on t he Westpac New Zealand resident ial
mortgage book. Scenario analys is Since 2016, Westpac has evolved its scenario analy sis to inform it s assessment of climate-
related risks and opportunities over the short, medium and long-term. The findings from our scenario analysis informed our curren t
Climate Action Plan which outlines a range of commitments to help customers and communities respond to climate change. We
continue to assess1: the resilience of our Australian Business and Institutional2 lending to transition risks using 1.5 and 2-deg r ee s
s cenarios; and the potential impact of c limate-related phys ical risks on the Aus tralian mortgage portfolio3 arising from global
w a r m i ng sc en ar i o s o f b o th 2 an d 4- d eg r ee s. As at 3 0 Se pt em b er 20 20 : th e s ha r e of ou r cu r re n t A us tr al i a n Bu si ne ss an d
I ns titutional portfolio exposed t o sect ors which may f ace relatively higher growth cons traints4 at 2030 and 2050 under climate
c ha ng e tr a ns it io n sce n ar i os ( 1. 5- d eg r ee s a n d 2- d eg r ee s) i s s ho w n be l ow : th e sh ar e o f o ur c ur r en t Au str a l ia n m or t ga ge p o rt fo li o 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, furt her work underway includes: assessing climate-related physical risk s on our Aust ralian
agribusiness portfolio and how we can continue to support our customers to respond; updating our assessment of physical risk in
o u r Au str a l ia n m o rt ga ge b o ok an d ho w w e c an h el p cu sto m er s be co m e m or e cl i m at e- r esi l i e nt ; i n teg r at i ng cl i m a te ch an ge
considerations into our stress-testing capability; and analysing lending across the energy sector, including a ‘deep dive’ on the oil
and gas s ector under Paris-aligned scenarios – s ee nex t page. 46WESTPAC GROUP 2020 ANNUAL REPORT Strategic report
E xcl u de s re ta i l, so ve re i g n a n d ba nk e xpo su r es. Ex cl ud es R AM S a nd E q ui ty Acc ess . S ec tor s w ho se m e di u m ( 20 3 0) a nd l o ng - te r m
(2050) performance under a scenario deviated by more than one standard deviation below average GDP growth were classified as
‘higher risk ’.

WESTPAC GROUP 2020 ANNUAL REPORT47 Strategic report 1 S TRA TEGIC REVIEW 2 GROUP PERFORMANCE 3
F INANCIAL S T A TEMENT S 4 SHAREHOLDER INFORMA TION 1 STRATEGIC REVIEW Energy s ector 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
WIB5. Mining andTransportOil and Gas ExtractionRefining $2.02 billion Oil and GasLNG Terminal Ex traction$0.57 billion $2.22
billion Ex ploration $0.56 billionDistribution and Retail CoalCoal Electricity MetallurgicalRailand Gas6 coal$0.28 billion $0.21
billionNetworks Port$4.53 billion Metallurgic al$0.44 billion coal in diversifiedRetailers miners7$0.77 billion $0.03 billion Thermal
c oalOil and Gas $0.30 billion$1.32 billion Uranium $0.03 billion 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
c ar b on e co no m y. 5 A l l fi g ur e s a r e Tot al C o m m i tte d Exp o sur e s ( TC E ) at 3 0 Se pt em b er 20 20 f or W IB o n ly . 6 A ust ra l i a an d N ew
Z ealand only. Cust omers with operat ions acros s several sect ors are at tributed across t hose activities based on business segment
c on tr i bu ti o n. 7 C o al e xp osu r e s w i th i n di ve r si fi ed m i n er s a r e ap p or ti o ne d b y th e pe r ce nt ag e EB ITD A co nt r ib u ti on o f c oa l i n th ei r
la te st an nu a l fin an cial sta te men ts. Th ermal coa l e xp osu res with in d ive rs if ied mine rs a re imma te ria l. 2 G ROUP P ERFO RMANCE 3
FINANCIAL STATEMENTS 4 SHAREHOLDER INFORMATION

Introduction
This Corporate Governance Statement, which has been approved by the Board, describes
our corporate governance framework, policies and practices as at 1 November 2020.
Framework and our approach to governance
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.
In July 2020, we announced the findings of our reassessment of our Culture, Governance
and Accountability Program which was undertaken in response to a request from APRA. The
reassessment found that important shortcomings remain in Westpac’s culture, governance
and accountability frameworks and practices and highlighted that important aspects of
Westpac’s non-financial risk culture have been ‘immature and reactive’.
Westpac is focused on addressing the shortcomings identified by the reassessment,
including through a program called Customer Outcomes and Risk Excellence (CORE).
CORE is a comprehensive, Group-wide transformation program that focuses on oversight of
non-financial risk, and on strengthening our risk culture, risk frameworks and risk
management capability. While the Board is responsible for the governance of the CORE
program, oversight of the CORE program workstreams has been allocated to the Board
Legal, Regulatory & Compliance Committee. In addition, the CORE workstream - ‘Board
Governance of Non-Financial Risk’ - is sponsored by the Chairs of the Board Risk Committee
and the Board Legal, Regulatory & Compliance Committee.
For further information refer to the Strategic Review, and to the Risk Management Section of
this Corporate Governance Statement below.
In addition, we regularly review local and global developments in corporate governance to
assess their implications and to respond to changes in the operating environment. We also
seek to improve our systems, processes and policies and look to strengthen our frameworks
to reflect changing expectations where appropriate.
We have equity securities quoted on securities exchanges in Australia, New Zealand and the
United States.
Australia
The principal listing of Westpac ordinary shares is on the ASX, trading under the code
WBC. Westpac also has hybrid securities, capital notes, senior notes and subordinated
notes listed on the ASX.
We have followed the ASX Corporate Governance Principles and Recommendations
(third edition) (ASXCGC Recommendations) published by the ASX Limited’s Corporate
Governance Council (ASXCGC) throughout the year. In addition, we have reviewed our
relevant governance practices in respect of the fourth edition of the ASX Corporate
Governance Principles and Recommendations in anticipation of reporting against them
for the 2021 financial year.
We must comply with the Corporations Act and the Banking Act, including Part IIAA -
The Banking Executive Accountability Regime (BEAR) amongst other laws, and, as an
Authorised Deposit-taking Institution, with governance requirements prescribed by
APRA under Prudential Standard CPS 510 Governance.
This Corporate Governance Statement addresses each of the ASXCGC
Recommendations with an explanation of our corporate governance practices,
demonstrating our compliance with each Recommendation.
Further details about the ASXCGC Recommendations can be found on the ASX website
www.asx.com.au.
In this Corporate Governance Statement 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.
New Zealand
Westpac’s ordinary shares are also quoted on the NZX, which is the main board equity
security market operated by NZX Limited. Westpac also has subordinated notes quoted
on the NZX Debt Market. As a foreign exempt issuer in New Zealand, we are deemed to
satisfy and comply with the NZX Listing Rules, provided that we remain listed on the
ASX and comply with the ASX Listing Rules.
The ASX, through the ASXCGC Recommendations and the NZX, through the NZX
Corporate Governance Code, has adopted similar ‘comply or explain’ approaches to
corporate governance. The ASXCGC Recommendations may, however, materially differ
from the corporate governance rules and the principles of NZX’s Corporate Governance
Code.
48WESTPAC GROUP 2020 ANNUAL REPORT
Corporate governance

United States
Westpac has American Depositary Shares (ADS) representing its ordinary shares quoted on
the New York Stock Exchange (NYSE), trading under the symbol WBK. Under the NYSE
Listing Rules, foreign private issuers (like Westpac) are permitted to follow home country
practice in respect of corporate governance in lieu of the NYSE Listing Rules. However, we
are still required to comply with certain audit committee and additional notification
requirements.
We comply in all material respects with all NYSE Listing Rules applicable to us.
Under the NYSE Listing Rules, foreign private issuers are required to disclose any significant
ways in which their corporate governance practices differ from those followed by domestic
US companies. We have compared our corporate governance practices to the corporate
governance requirements of the NYSE Listing Rules and note the significant differences
below.
The NYSE Listing Rules require that, subject to limited exceptions, shareholders be given the
opportunity to vote on equity compensation plans and material revisions to those plans. In
Australia, except in certain circumstances, there are no laws or ASX Listing Rules that
require shareholder approval of equity-based incentive plans or individual grants under those
plans (other than for Directors, including the Managing Director and Chief Executive Officer
(CEO)).
Westpac’s employee equity plans have been disclosed in the Remuneration Report in
Section 10 of the Directors’ report, which is subject to a non-binding shareholder vote at the
Annual General Meeting (AGM) and grants to our CEO are approved by shareholders. The
details of grants under our equity-based incentive plans have been disclosed in Note 33 of
our financial statements for the year ended 30 September 2020.
The NYSE Listing Rules set out specific requirements for determining whether a director will
be regarded as independent. While these requirements are broadly consistent with
Westpac’s criteria for independence (described below under ‘Board, Committees and
oversight of management’), under Australian independence requirements, the Board is able
to apply discretion in its determination of a director’s independence that differs from the
NYSE Listing Rules.
The NYSE Listing Rules also provide that the Board Nominations & Governance Committee’s
responsibilities should include selecting, or recommending that the Board select, the Director
nominees for the next annual meeting of shareholders and overseeing the evaluation of the
Board. The Board, rather than the Board Nominations & Governance Committee, reviews
and recommends the Director nominees for election at the AGM and undertakes an annual
review of its performance.
WESTPAC GROUP 2020 ANNUAL REPORT49
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50WESTPAC GROUP 2020 ANNUAL REPORT
Corporate governance
WESTPAC’S BOARD AND BOARD COMMITTEE STRUCTURE
The diagram above shows Westpac’s Board and current Board Committee structure. The structure comprises a Board with six Board Committees that oversee Westpac’s business. The Board’s
responsibilities include approving and overseeing management’s implementation of the strategy and business plan of the Westpac Group, approving the Group’s risk management framework, risk
management strategy and risk appetite statement, and monitoring the effectiveness of risk management by the Westpac Group.
From time to time, the Board may form other Committees or request Directors to undertake specific extra duties. In addition, from time to time, the Board participates (either directly or through
representatives) in due diligence committees in relation to strategic decisions and capital and funding activities.
The Board has delegated to the CEO, and through the CEO to the Executive Team, responsibility for the day-to-day management of Westpac’s business.
The key functions of the Board and each of the Board Committees are outlined in this Corporate Governance Statement. All Board Committee Charters are available on our website at
www.westpac.com.au/corpgov.

How the Board and Board Committees work including oversight of management
The roles, responsibilities and accountabilities of the Board and Board Committees were
amended during the year by updating the Board and Board Committee charters. The key
responsibilities of the Board and Board Committees set out in this Corporate Governance
Statement are based on the Charters that took effect on either 1 June 2020 or 1 July 2020.
Board of Directors
Roles and responsibilities
The role of the Board is to provide leadership and strategic guidance for Westpac and its
related bodies corporate. The Board Charter outlines the roles and responsibilities of the
Board. Key responsibilities are:
•approving, and overseeing management’s implementation of, the strategic direction of the
Westpac Group, its business plan and significant corporate strategic initiatives;
•assessing and reviewing the performance of the Board and its Board Committees and
determining Board size and composition;
•approving the Westpac Board Renewal Policy, Board Tenure Policy, and the Westpac
Group Remuneration Policy;
•selecting, appointing and determining terms of appointment of the CEO and Chief
Financial Officer (CFO);
•approving individual remuneration levels and adjustments (including forfeiture and
clawback) to variable remuneration where appropriate for Group Executives, other
executives who report directly to the CEO, any other accountable persons under the
BEAR and any other person the Board determines;
•evaluating the performance of the CEO;
•approving the appointment of Group Executives, the General Manager, Group Audit and
any other person the Board determines and monitoring the performance of Group
Executives;
•approving the annual targets and financial statements and monitoring financial
performance against forecast and prior periods;
•determining our dividend policy and the amount, nature and timing of dividends to be paid;
•considering and approving our overall risk management framework for managing financial
and non-financial risk;
•approving our Group Risk Management Framework, Group Risk Management Strategy
and Group Risk Appetite Statement and monitoring the effectiveness of risk management
by the Group;
•forming a view of our risk culture and overseeing the identification of, and steps taken to
address any desirable changes to risk culture;
•considering the social, ethical and environmental impact of our activities, setting standards
and monitoring compliance with our sustainability policies and practices;
•overseeing and monitoring workplace, health and safety (WHS) issues in the Group and
considering appropriate WHS reports and information; and
•maintaining an ongoing dialogue with Westpac’s external auditor and, where appropriate,
principal regulators.
Board areas of focus in FY20
This year the Board (including with assistance from its Committees) has focused on:
•overseeing the program of actions to address the matters raised by the Australian
Transaction Reports and Analysis Centre (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 an external review of Westpac’s
financial crime program;
–appointing an independent Advisory Panel to review the Board’s governance with
respect to the Group’s anti-money laundering and counter- terrorism financing
(AML/CTF) obligations;
–determining accountability and applying remuneration consequences for the CEO,
Group Executives and other relevant current and former Westpac employees in
respect of the issues identified in the AUSTRAC Statement of Claim;
•appointing a new CEO and overseeing changes to, and succession planning of the
Executive Leadership Team, including the creation of three new Group Executive roles
being Group Executive, Financial Crime, Compliance & Conduct, Chief Executive,
Specialist Businesses and Chief Operating Officer;
•overseeing the Group’s response to the COVID-19 pandemic;
•our three strategic priorities: Fix, Simplify and Perform;
•overseeing the establishment of a new Specialist Businesses division which has
undertaken a strategic review of certain businesses to simplify Westpac’s portfolio;
•establishing 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;
•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 (including appointing Promontory Australia to provide independent assurance
over the reassessment) and overseeing the CORE program which Westpac has embarked
on following the reassessment; and
•approving a new 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.
WESTPAC GROUP 2020 ANNUAL REPORT51
Corporate governance
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.

Meeting with Regulators
The Board also met with representatives from the Australian Securities and Investments
Commission, Australian Prudential Regulation Authority and the Australian Financial
Complaints Authority during the course of the year.
Delegated authority
The Constitution and the Board Charter enable the Board to delegate to Board Committees
and management.
The roles and responsibilities delegated to the Board Committees are captured in the Charters
of each of the six established Committees, namely:
•Audit;
•Risk;
•Legal, Regulatory & Compliance;
•Nominations & Governance;
•Remuneration; and
•Technology.
The Board Charter, Board Committee Charters and Westpac’s Constitution are available on
our website at www.westpac.com.au/corpgov.
The Delegated Authority Policy Framework outlines the principles Westpac has adopted to
govern decision- making within the Westpac Group, including to put in place channels of
escalation and reporting to the Board. The scope of, and limitations to, authority delegated by
the Board to the CEO and through the CEO to other Group Executives, is articulated in formal
delegation instruments and covers areas such as operating and capital expenditure, funding
and securitisation, and lending. These delegations have been implemented with a view to
balancing effective oversight with appropriate empowerment and accountability of
management. Any matters or transactions outside the delegations of authority given to
management are required to be referred to the appropriate Board or relevant Board Committee
for approval.
The Executive Team and Executive Risk Committee are management committees (that is, they
are not committees of the Board) that have a role in implementing Board-approved strategies
and policies and managing risk across the Group.
Independence
Together, the Directors have a broad range of relevant financial and other skills and
knowledge, combined with the extensive experience necessary to guide our business. Details
are set out in Section 1 of the Directors’ report. A skills matrix for the Board appears in this
statement.
All of our Non-executive Directors satisfy our criteria for independence, which aligns with the
guidance provided in the ASXCGC Recommendations and the criteria applied by the NYSE
and the US Securities and Exchange Commission (SEC).
The Board assesses the independence of our Directors on appointment and annually. Each
Director provides an annual attestation of his or her interests and independence. Directors are
considered to be independent if they are independent of management and free from any
business or other relationship that could materially interfere with, or could reasonably be
perceived to materially interfere with, the exercise of their unfettered and independent
judgement, who acts in the best interests of Westpac as a whole, rather than the interests of an
individual shareholder or other party. Materiality is assessed on a case by case basis by
reference to each Director’s individual circumstances rather than by applying general
materiality thresholds.
Each Director is required to disclose any business or other relationship that he or she has
directly, or as a partner, shareholder or officer of a company or other entity that has an interest
or a business or other relationship with Westpac or another Westpac Group member. The
Board considers information about any such interests or relationships, including any related
financial or other details, when it assesses the Director’s independence.
52WESTPAC GROUP 2020 ANNUAL REPORT
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WESTPAC GROUP 2020 ANNUAL REPORT53
Corporate governance
Size and membership of Board Committees
1
as at 30 September 2020
Committee Composition
2,3
NAME OF
COMMITTEE
BOARD AUDIT
COMMITTEE
BOARD RISK
COMMITTEE
BOARD LEGAL,
REGULATORY
& COMPLIANCE
COMMITTEE
BOARD
NOMINATIONS
& GOVERNANCE
COMMITTEE
BOARD
REMUNERATION
COMMITTEE
BOARD TECHNOLOGY
COMMITTEE
NUMBER OF
MEMBERS
4
455534
COMPOSITION
All members are Independent Non­
executive Directors
All members are Independent Non­
executive Directors
5
All members are Independent Non­
executive Directors
6
All members are Independent Non­
executive Directors
All members are Independent Non­
executive Directors
Maximum one Executive Director
Other members are Independent Non­
executive Directors
John McFarlane
Chairman,
Non­executive,
Independent
Chair
✓
Peter King
CEO, Executive
✓
Nerida Caesar
Non-executive,
Independent
✓✓
Alison Deans
Non-executive,
Independent
✓✓✓
Chair
✓
Craig Dunn
Non-executive,
Independent
✓✓
Chair
✓
Steven Harker
Non-executive,
Independent
✓✓
Chris Lynch
Non-executive,
Independent
✓✓
Peter Marriott
Non-executive,
Independent
✓
Chair
7
✓
✓✓ ✓
Peter Nash
Non-executive,
Independent
Chair
7
✓
✓
Chair
7
✓
✓
Margaret Seale
Non-executive,
Independent
✓✓
1The Board Financial Crime Committee was established and dissolved during the reporting period, with its remaining responsibilities assumed by the Board Legal, Regulatory & Compliance Committee. The members of that Committee were Peter Nash (Chairman), Nerida
Caesar, Steven Harker and Margaret Seale.
2Composition requirements for each Committee are set out in the relevant Committee Charter. Consistent with each Committee Charter, the Chairman of each Committee is determined by the Board.
3The Board Committee composition changes which have occurred in FY20 can be found in the ‘Directors’ meetings’ table in the Directors’ Report in the 2020 Annual Report.
4All Board Committees except the Board Nominations & Governance Committee must have a minimum of three members. The Board Nominations & Governance Committee is composed of all Board Committee Chairs, Board Chairman and other members as determined
by the Board.
5The Committee must also include at least one member of the Board Audit Committee and at least one member of the Board Remuneration Committee.
6The Committee must also include the Chair of the Risk Committee as a member.
7The Chair must be an Independent Non-executive Director, who is not the Board Chairman.

Chairman
The Board elects one of the independent Non-executive Directors as Chairman. Our Chairman
is John McFarlane who became Chairman on 1 April 2020. The Chairman’s role includes:
•providing effective leadership to the Board in relation to all Board matters;
•guiding the agenda and conducting all Board meetings to facilitate discussions,
challenge and decision-making;
•in conjunction with the Company Secretary, arranging regular Board meetings
throughout the year and confirming that minutes of meetings accurately record
decisions taken and, where appropriate, the views of individual Directors;
•overseeing the process for appraising Directors and the Board as a whole;
•overseeing Board succession;
•acting as a conduit between management and the Board, and being the primary
point of communication between the Board and CEO;
•representing the views of the Board to the public; and
•taking a leading role in creating and maintaining an effective corporate governance
system.
CEO
Our CEO is Peter King, who became CEO on 2 April 2020, having been Acting CEO since
2December 2019. The CEO’s role includes:
•leadership of the management team;
•developing strategic objectives for the business and achievement of the planned results;
and
•the day-to-day management of the Westpac Group’s operations, subject to the
specified delegations of authority approved by the Board.
Board and Board Committee meetings
The number of meetings of the Board and Board Committees, and the number of those
meetings attended by Directors for the financial year ended 30 September 2020 are reported in
Section 9 of the Directors’ report.
Non-executive Directors regularly meet without management present, so that they can discuss
issues appropriate to such a forum. In all other respects, senior executives are invited, where
considered appropriate, to participate in Board meetings. They are also available to be
contacted by Directors between meetings.
Nomination and appointment
As set out in its Charter, key responsibilities of the Board Nominations & Governance
Committee are:
•assessing the skills required to discharge competently the Board’s duties having
regard to Westpac’s performance, financial position and strategic direction;
•developing, reviewing, assessing and recommending to the Board policies on Director
tenure, Board composition and size;
•reviewing annually diversity generally within the Group, including approving measurable
objectives for achieving diversity in the composition of the Board, senior executives and the
workforce generally and the Group’s progress in achieving such objectives;
•developing and implementing succession planning for Non-executive Directors, the CEO,
Group Executives, the General Manager, Group Audit and any other person the Committee
determines;
•reviewing the process for the orientation and education of new Directors and continuing
education for existing Directors;
•reviewing eligibility criteria for appointing Directors to the Board;
•considering and recommending candidates for appointment as Directors to the Board and
determining the terms and conditions (excluding remuneration) on which Non-executive
Directors are appointed and hold office;
•
considering and recommending candidates for appointment to the Boar
ds of significant
subsidiaries (including Westpac New Zealand Limited and our insurance and
superannuation businesses);
•approving policies for appointments to the boards of subsidiaries of Westpac; and
•reviewing and where required, approving the Group’s corporate governance policies with
the objective of meeting appropriate corporate governance standards, having regard to the
law and the Board’s aspirations for excellence in corporate governance standards.
Board skills, experience and attributes
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 (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. The Matrix is set out in Figure 1.
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).
54WESTPAC GROUP 2020 ANNUAL REPORT
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WESTPAC GROUP 2020 ANNUAL REPORT55
Corporate governance
Figure 1 – Board skills, experience and attributes as at 30 September 2020
BOARD SKILLS, EXPERIENCE AND ATTRIBUTES (AS AT 30 SEPTEMBER 2020)
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
10/10
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
7/10
Financial
acumen
Highly proficient in accounting or related financial management and reporting for
businesses of significant size
8/10
Risk
Experience in anticipating, recognising and managing risks, including regulatory,
financial and non-financial risks, and monitoring risk management frameworks and
controls
8/10
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
8/10
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
10/10
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
9/10
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
9/10
Listed
company
experience
Held two or more Non-executive Directorships on Australian or international listed
companies
7/10
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
6/10
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
8/10

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.
The Board Nominations & Governance Committee considers and makes recommendations to the
Board on candidates for appointment as Directors. Such recommendations pay particular attention
to:
•
the mix of skills, experience, expertise, diversity, independence and other qualities of
existing Directors; and
•
how the candidate’s attributes will balance and complement those skills and qualities and
address any potential skills gaps in relation to the current and future composition of the Board.
External consultants are used to access a wide base of potential Directors.
Prior to a Director’s appointment or consideration for election or re-election by shareholders,
Westpac conducts due diligence and provides shareholders with all material information relevant to a
decision on whether or not to elect or re-elect a Director.
New Directors receive an induction pack which includes a letter of appointment setting out the
expectations of the role, conditions of appointment including the expected term of appointment, and
remuneration. This letter aligns to the ASXCGC Recommendations.
Term of office
The Board may appoint a Director, either to fill a casual vacancy or as an addition to the existing
Directors, provided the total number of Directors does not exceed fifteen Non-executive Directors
and three Executive Directors. Except for the CEO, a Director appointed by the Board holds office
only until the close of the next AGM but is eligible for election by shareholders at that meeting.
Our Constitution states that at each AGM, one-third of eligible Directors, and any other Director who
has held office for three or more years since their last election, must retire. In determining the
number of Directors to retire by rotation, no account is to be taken of Directors holding casual
vacancy positions or of the CEO. The Directors to retire by rotation are those who have been the
longest in office. A retiring Director holds office until the conclusion of the meeting at which he or she
retires but is eligible for re-election by shareholders at that meeting. The Board makes
recommendations concerning the election or re-election of any Director by shareholders. In
considering whether to support a candidate, the Board takes into account the results of the Board
performance evaluation conducted during the year.
The Westpac Board Renewal Policy limits the maximum tenure of office that any Non-executive
Director other than the Chairman may serve to nine years, from the date of first election by
shareholders. The maximum tenure for the Chairman is twelve years (inclusive of any term as a
Director prior to being elected as Chairman), from the date of first election by shareholders. The
Board, on its initiative and on an exceptional basis, may exercise discretion to extend the maximum
terms specified above where it considers that such an extension would benefit the Group. Such
discretion will be exercised on an annual basis and the Director concerned will be required to stand
for re-election annually.
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.
2.8 years
AVERAGE BOARD TENURE
0-3 years 60% 3-6 years 20% 6-9 years 20%
Director induction and continuing education
All new Directors participate in an induction program to familiarise themselves with our business and
strategy, culture and values and any current issues before the Board. The induction program
includes meetings with the Chairman, the CEO, the Board Committee Chairs and each Group
Executive.
The Board encourages Directors to undertake continuing education and training to develop and
maintain the skills and knowledge needed to perform their role as Directors effectively, including by
participating in workshops held throughout the year, attending relevant site visits and undertaking
relevant external education.
Access to information and advice
All Directors have unrestricted access to company records and information and receive regular
detailed financial and operational reports from senior management. Each Director also enters into an
access and indemnity agreement, which among other things, provides for access to documents for
up to seven years after his or her retirement as a Director.
The Chairman and other Non-executive Directors regularly consult with the CEO, CFO and other
senior executives, and may consult with, and request additional information from, any of our
employees.
All Directors have access to advice from senior internal legal advisors including the Group General
Counsel.
In addition, the Board collectively, and all Directors individually, have the right to seek independent
professional advice, at our expense, to help them carry out their responsibilities. While the
Chairman’s prior approval is needed, it may not be unreasonably withheld.
56WESTPAC GROUP 2020 ANNUAL REPORT
Corporate governance

Company Secretary
Westpac’s Company Secretary attends Board and Board Committee meetings and is
responsible for the operation of the Secretariat function, including advising the Board on
governance and, in conjunction with management, giving practical effect to the Board’s
decisions. The Company Secretary is accountable to the Board, through the Chairman, on all
matters to do with the proper functioning of the Board.
A profile for the Company Secretary for the financial year ended 30 September 2020 is set out
in Section 1 of the Directors’ report.
Board Committees
Composition and independence
Board Committee members are chosen for the skills and experience they can contribute to the
respective Board Committees and their qualifications are set out in Section 1 of the Directors’
report. The membership of each Board Committee is set out in the table entitled ’Size and
membership of Board Committees as at 30 September 2020’ in this Corporate Governance
Statement. All of the Board Committees are comprised of independent Non-executive
Directors, except for the Board Technology Committee, of which the CEO is a member.
Operation and reporting
Scheduled meetings of the Board Committees occur at least quarterly, with the Board Risk
Committee and Board Legal, Regulatory & Compliance Committee both meeting at least six
times annually. Each member’s attendance at Board Committee meetings held during the
financial year ended 30 September 2020 is reported in Section 9 of the Directors’ report. All
Board Committees are able to meet more frequently as necessary.
Each Board Committee is entitled to the resources and information it requires and has direct
access to our employees and advisers. The CEO attends all Board Committee meetings,
except where he has a material personal interest in a matter being considered. Senior
executives and other selected employees are invited to attend Board Committee meetings as
required. All Directors can receive all Board Committee papers and can attend any Board
Committee meeting, provided there is no conflict of interest.
Performance
Board, Board Committees and Directors
The Board undertakes ongoing self-assessment as well as commissioning an annual
performance review by an independent consultant.
The review process includes an assessment of the performance of the Board, the Board
Committees and each Director, with outputs collected, analysed and presented to the Board.
The Board will discuss the results and agree follow up actions. Actions from the previous
review related to matters regarding Board composition, process, priorities and continuing
education. The Chairman also discusses the results with individual Directors and Board
Committee Chairs.
The full Board (excluding the Chairman) reviews the results of the performance review of the
Chairman and results are then privately discussed by the Chairman of the Board Risk
Committee with the Chairman.
At the time of this statement, the 2020 financial year evaluation of the full Board is being
finalised and will be completed prior to the end of the 2020 calendar year.
Management
The Board, in conjunction with its Board Remuneration Committee, is
responsible for:
•determining the goals and objectives relevant to the remuneration of the CEO, and
evaluating the performance of the CEO in light of these objectives; and
•approving individual remuneration levels and adjustments (including forfeiture and
clawback) to variable remuneration where appropriate for Group Executives, other
executives who report directly to the CEO, any other accountable persons under the
BEAR, and any other person the Board determines.
The Board Risk Committee, the Board Legal, Regulatory & Compliance Committee and the
Board Audit Committee also refer to the Board Remuneration Committee any matters that
come to their attention that are relevant, including with respect to risk adjusted remuneration.
Management performance evaluations for the financial year ended 30 September 2020 were
conducted following the end of the financial year.
There is a further discussion on performance objectives and performance achieved in the
Remuneration Report in Section 10 of the Directors’ report.
All new senior executives receive an employment contract setting out the terms and conditions
of their employment, together with a Statement of Accountability for their respective role.
Briefing sessions are scheduled to discuss our strategies and operations, and the respective
roles and responsibilities of the Board and senior management.
Ethical and responsible decision-making
At Westpac, our purpose is ‘Helping Australians and New Zealanders Succeed’. One of the
ways we seek to achieve this purpose is through our core values.
Our Values
Our values are what we believe in at Westpac Group. They are:
•helpful – passionate about providing a great customer experience;
•ethical – trusted to do the right thing;
•leading change – determined to make it better and be better;
•performing – accountable to get it done; and
•simple – inspired to keep it simple and easy.
Our values help guide our behaviour and reflect our commitment to our customers,
communities, and each other.
WESTPAC GROUP 2020 ANNUAL REPORT57
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Code of Conduct
We have refreshed our Code of Conduct (Code) this year to reset conduct expectations,
simplify the Code for our employees and help employees navigate difficult decisions.
The Code builds on our new Purpose, Values and Behaviours and outlines the expectations of
our company and our people to do what is right, to comply with laws and policies and behave
professionally. The Code applies to our employees, contractors and our Board members. It is a
key aspect of improving our conduct by emphasising the importance of fair outcomes for our
customers, communities and each other, providing a framework for us to operate within, both
as individuals and as a bank. We have four Code outcomes, each strongly aligned to our five
values.
These outcomes are:
•Helping our customers and communities;
•Being ethical;
•Strengthening our corporate compliance; and
•Supporting our people.
By following the Code and our Purpose, Values and Behaviours, we seek to deliver the right
outcomes for all of our stakeholders. Our customers and communities place a great deal of
faith in us, and rely on our judgment, which is why the Code is about always asking ’Should
We?’ in addition to ‘Can We?’ The new Code is approved by the Board and has the full support
of both the Board and the Executive Team and we take compliance with the Code very
seriously.
Material breaches of the Code are reported to the Board Legal, Regulatory & Compliance
Committee.
We also have frameworks in place which apply to support our Code and our commitment to
sustainable business practices and behaviours, internally and externally across our value
chain, including a range of:
•internal guidelines, policies, frameworks, communications and training processes and
tools, including an online learning module and leader-led case study training; and
•externally facing codes, frameworks, operating principles, policies, and position
statements, addressing sustainability themes such as human rights, climate change and
other environmental and social impacts.
The Code is available on our website at:https://www. westpac.com.au/about-westpac/westpac-
group/ corporate-governance/principles-policies/.
Key policies
We have a number of key policies to manage our regulatory compliance and human resource
requirements. We also subscribe to a range of external industry codes, such as the Banking
Code of Practice and the ePayments Code.
Code of Ethics for Senior Finance Officers
The Code of Accounting Practice and Financial Reporting complements our own Code. The
Code of Accounting Practice and Financial Reporting is designed to assist our CEO, CFO and
other principal financial officers in applying the highest ethical standards to the performance of
their duties and responsibilities with respect to accounting practice and financial reporting by
requiring those officers to:
•act honestly and ethically, particularly with respect to conflicts of interest;
•provide full, fair, accurate and timely disclosure in reporting and other communications;
•comply with applicable laws, rules and regulations;
•promptly report violations of the Code of Accounting Practice and Financial Reporting; and
•be accountable for adherence to the Code of Accounting Practice and Financial Reporting.
The Code of Accounting Practice and Financial Reporting is available on our website at
https://www.westpac.com.au/about-westpac/westpac-group/corporate-governance/principles-
policies/.
Conflicts of interest
The Group’s conflicts of interest framework, includes a Group policy, supported by various
instruments aimed at the identification and management of specific types of conflicts of
interest. For example, the Westpac Group Gifts and Hospitality Policy provides employees with
guidance on how to manage conflicts of interest potentially arising out of giving and receiving of
gifts or hospitality activities.
The Board
All Directors are required to disclose to the Board any actual, potential or apparent conflicts of
interest upon appointment and are required to keep these disclosures up to date.
Any Director with a material personal interest in a matter being considered by the Board must
declare their interest and may not be present during any related boardroom discussions nor
vote on the relevant matter, unless the Board resolves otherwise.
Our people
We expect any person who acts on behalf of the Westpac Group to:
•promptly identify, declare, assess, manage and record conflicts of interest appropriately;
•discharge their duties concerning conflicts of interest with integrity, fairness, honesty and
due skill, care and diligence;
•avoid a conflict of interest where it cannot be effectively managed;
•obtain approval before accepting a directorship on the board of a non-Westpac Group
company;
•disclose any material interests or close relationships they have with our customers or
suppliers through the appropriate channels, and not place themselves in a position of
conflict where they have such an interest;
•not participate in activities that involve a conflict of interest between their personal
interests and their duties and obligations to the Westpac Group; and
•not solicit, accept or offer money, gifts, favours or entertainment that might influence, or
might be seen to influence, their professional judgement.
Fit and Proper Person assessments
We have a Board-approved Westpac Group Fit and Proper Policy that meets the requirements
of the related APRA Prudential Standards and governs the fit and proper assessment
requirements applicable to Accountable Persons under Part IIAA of the Banking
58WESTPAC GROUP 2020 ANNUAL REPORT
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Act 1959 (Cth) – the BEAR, which applies to ADIs and their subsidiaries. The Policy also
prescribes the approach to satisfy the organisational competence requirements of our
Australian Financial Services Licences and Australian Credit Licences.
We use our Fit and Proper Policy to assess the fitness and propriety of our Directors and also
of individuals in specified positions of responsibility as required by APRA Prudential Standards,
the Banking Act, ASIC licensing requirements and equivalent offshore regulations.
The Chairman of the Board (and in the case of the Chairman, the Board as a collective) is
responsible for assessing the fitness and propriety of the CEO and Non-executive Directors of
Westpac. A Fit and Proper Committee is responsible under delegated authority of the Board for
undertaking fit and proper assessments of all other individuals who hold positions of
responsibility specified in relevant Australian legislation and regulations. In all cases, the
process will involve the relevant individuals providing a declaration and background checks are
undertaken.
Concern reporting and whistleblower protection
Under the Westpac Group Speaking Up Policy, we encourage our employees, contractors,
secondees, former employees, brokers, service providers (such as auditors, accountants and
consultants) and our suppliers to raise any concerns about our activities or behaviours that
may be unlawful or unethical. Our senior management are committed to providing support to,
and protecting the dignity, well-being, career and reputation of anyone reporting wrongdoing.
Westpac does not tolerate conduct such as retaliation or adverse action related to a Speaking
Up report.
The Speaking Up Policy sets out how someone can raise a concern using the whistleblowing
channels, including our concern reporting system ‘Concern Online’ and our Whistleblower
Hotline. Both channels enable reporting on an anonymous basis. Concerns may include
suspected breaches of our Code, Westpac policies or regulatory requirements.
Westpac has appointed Whistleblower Protection Officers who are responsible for protecting
the whistleblower against personal disadvantage as a result of making a report. The
Whistleblower Protection Officers directly engage with whistleblowers to address any risk of
reprisal and respond to internal escalations. A whistleblower may also choose to raise a
concern directly with a Whistleblower Protection Officer.
The Speaking Up Policy requires that we investigate reported concerns in a manner that is
confidential, fair and objective. If the investigation shows that wrongdoing has occurred, we are
committed to taking action, including changing our processes and imposing consequences in
relation to those parties who have been involved in wrongdoing. Outcomes may also involve
reporting the matter to relevant authorities and regulators.
The relevant Board Committees are charged with overseeing Westpac’s whistleblower program
and the Westpac Group Executive Risk Committee is provided with quarterly reporting on
whistleblowing. These reports include a number of key metrics and measures which provide
insight into the performance of the Whistleblower Program.
Material incidents reported under the Westpac Group Speaking Up Policy are reported to the
Board Legal, Regulatory & Compliance Committee.
Westpac’s Speaking Up Policy is available on our website at
https://www.westpac.com.au/content/dam/ public/wbc/documents/pdf/aw/WBC-speaking-up-
policy.pdf.
Securities trading
Under the Westpac Group Securities Trading Policy, Directors, employees, secondees and
contractors are prohibited from dealing in any securities and other financial products if they
possess inside information. They are also prohibited from passing on inside information to
others who may use that information to trade in securities. In addition, Directors and any
employees, secondees or contractors (and their ‘associates’) who, because of their seniority or
the nature of their position, may have access to material non-public information about Westpac
(known as Prescribed Employees) are subject to further restrictions, including prohibitions on
trading prior to and immediately following annual and half year results announcements.
The requirements that apply to Prescribed Employees also apply to their “associates” or
“employee related accounts”.
We manage and monitor these obligations through:
•the insider trading provisions of our Westpac Group Securities Trading Policy, which
prohibit any dealing in any securities where a Director or employee has access to inside
information that may affect the price of those securities;
•restrictions limiting the periods in which the Directors and Prescribed Employees can trade
in Westpac securities (Blackout Periods);
•a prohibition on short-selling Westpac securities by Directors and Prescribed Employees;
•requiring Directors and Prescribed Employees to either obtain approval to trade Westpac
securities or notify their intention to trade outside Blackout Periods and confirm that they
have no inside information;
•establishing controls and procedures that are designed to help monitor the trading of
Westpac securities by Directors and Prescribed Employees;
•maintaining a register of Prescribed Employees, which is regularly updated;
•notifying ASX of trades of Westpac securities by Directors of Westpac as required under
the ASX Listing Rules; and
•forbidding employees from entering into hedging arrangements in relation to their
unvested employee shares or securities, whether directly or indirectly.
The Westpac Group Securities Trading Policy is available in the Corporate Governance section
of our website at:https://www.westpac.com.au/about-westpac/westpac- group/corporate-
governance/principles-policies/.
WESTPAC GROUP 2020 ANNUAL REPORT59
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Customer Advocate
Westpac’s Customer Advocate advises and guides our complaints team on the complaints
raised by customers in relation to personal and small business matters. The Customer
Advocate recommends changes be made to bank policies, procedures and processes,
arising from the complaints made by customers.
Anti-Bribery and Corruption
The Westpac Group has an Anti-Bribery and Corruption (ABC) Policy, an ABC Standard, and
bribery prevention procedures and systems. Together, they comprise the Westpac ABC
Framework. Material breaches of the ABC Policy are reported to the Board Legal, Regulatory
& Compliance Committee. The ABC Policy is available on our website at
https://www.westpac.com.au/about-westpac/westpac-group/corporate-governance/anti-
bribery-corruption-policy-procedures/.
Westpac has zero tolerance for any form of bribery and corruption. This includes a ban on
facilitation payments.
Westpac is committed to preventing, detecting and deterring bribery and corruption by
managing its bribery and corruption risk and complying with relevant ABC legislation in all
jurisdictions in which it operates, not simply because it is required to, but because it is the
right thing to do. This includes compliance with the Australian Criminal Code Act 1995 (Cth),
the Bribery Act 2010 (UK) and the Foreign Corrupt Practices Act 1977 (US).
Under the ABC Policy, Westpac expects that its officers, employees, agents, contractors,
subsidiaries and third parties acting for or on behalf of Westpac will comply with all applicable
ABC laws and will not offer, provide, authorise, request or receive a bribe or anything which
may be viewed as a bribe.
Westpac is required to design a system of internal controls, maintain accurate books and
records and keep accurate records under the Foreign Corrupt Practices Act 1977 (US).
Westpac must also put in place adequate procedures as a defence to bribery under
legislation including the Bribery Act 2010 (UK). Adequate procedures must be
proportionate to the bribery and corruption risks that Westpac may reasonably face.
Modern Slavery
Westpac publishes an annual Slavery and Human Trafficking Statement in accordance
with the Transparency in Supply Chains provision (section 54) of the Modern Slavery Act
2015 (UK). The statement outlines the Group’s commitment to sustainable business
practices, advancing human rights, and the steps we have taken to prevent modern
slavery in our business and supply chains.
Westpac is required to report under the Modern Slavery Act 2018 (Cth) with our first
statement due six months past the 2020 financial year end, by 31 March 2021. The
statement is required to identify the risk of modern slavery in our operations and supply
chains and describe the actions we are taking to address these risks. The Group intends to
publish a joint statement covering all its controlled reporting entities.
From 2021, Westpac will produce a Modern Slavery Statement that addresses the
compliance obligations for the Westpac Group and its reporting entities under the Modern
Slavery legislation in both Australia and the UK.
Diversity
Westpac has an Inclusion & Diversity Policy that sets out our inclusion and diversity
objectives, commitments, and governance framework for the Group. This is coupled with a
comprehensive Inclusion & Diversity Strategy to help deliver on our key priorities and
actions. In this context, diversity covers both the visible and invisible differences that make
our employees unique, whether that be gender, gender identity, age, ethnicity, cultural
background, religious belief, sexual orientation, marital or family status, disability,
socioeconomic background and perspective or experience.
The objectives of the Policy and the 2018-20 Inclusion & Diversity Strategy are to support
our values and Westpac’s purpose of ‘Helping Australians and New Zealanders Succeed’
by:
•building an inclusive culture that delivers competitive advantage by employing the best
talent for innovation and service;
•creating an inclusive place to work where we embrace diversity and our people can be
their best; and
•helping our customers and communities by embedding inclusion, diversity and
accessibility across all aspects of the way we do business.
To help achieve these objectives, the Group:
•sets annual Board-determined measurable objectives for achieving gender diversity in
the composition of its Board, senior executives, leadership and workforce generally,
and reports on progress;
•assesses and reviews pay equity on an annual basis;
•builds awareness of the Bullying and Harassment Policy and Speaking Up Policy and
people leader and employee responsibilities to set an expectation of zero tolerance for
discrimination, harassment, vilification, and victimisation;
•encourages and supports the application of a flexibility policy across the Westpac Group
which focuses on all employees, and provides opportunities to maintain engagement,
communication and development with employees who seek to work flexibly - including
those on extended parental/other leave and those with caring responsibilities;
•implements our Accessibility Action Plan, which focuses on making Westpac a more
accessible place to work and do business for our customers, employees, and the
communities we serve. This includes creating an environment in which our employees
and customers feel safe and comfortable sharing information about their individual
circumstances with us and providing priority care for those who need it in line with our
Customer Vulnerability internal Position Statement;
•engages our people through our 10 employee action groups;
•delivers inclusion and diversity training and development opportunities; and
•educate and builds awareness through inclusive communications to make the Group a
more inclusive place to work and do business.
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The implementation of these objectives is overseen by the Westpac Group Inclusion &
Diversity Council, which is chaired by the CEO and meets bi-annually.
The Board, or an appropriate Board Committee, receives updates on inclusion and
diversity initiatives.
The creation of the Inclusion & Diversity Governance Framework has resulted in the
establishment of the:
•Inclusion & Diversity Business Unit Councils, chaired by the relevant Group Executive
(or their delegate) of that business unit; and
•Inclusion & Diversity Working Group, consisting of appointed general manager
representatives across each business unit and chaired by the Head of Inclusion &
Diversity.
We strive to listen to our employees through our ten employee-led Employee Action
Groups (EAGs). Employees can ‘opt-in’ to those advocacy groups to help build an
inclusive culture and influence positive change across shared areas of interest.
EAG’s focus on a variety of issues to strengthen our inclusive culture including – gender,
LGBTIQ, young and mature-age employees, cultural diversity in leadership, accessibility,
Aboriginal and Torres Strait Islander employees, veterans, skilled volunteering and
supporting victims of Domestic and Family Violence.
Our Inclusive Leadership program – ILEAD creates a framework for Westpac to invest in the
right capabilities for an inclusive culture at all levels of our organisation from our Group
Executives to line roles. The program is available to all employees via our online learning
platform, Learning Bank, and all people leaders are encouraged to complete it.
We are recognised for our long-standing commitment to gender equality in leadership.
Since September 2017, Westpac has maintained 50% women in leadership roles. We
continue focussing our efforts on maintaining this equality.
At 30 September 2020, the proportion of women employed by the Group was as
follows:
•Board of Directors: 30%;
•
leadership
1
roles: 50%; and
•total Westpac workforce: 57%.
The Board Nominations & Governance Committee approved the Group’s measurable
objectives for achieving gender diversity in the composition of the Board, senior
executives, and workforce generally for FY21 as follows:
•at least 40% women on the Westpac Board;
•
at least 40% women in our Senior Executive
2
population; and
•
maintain 50% women in leadership
1
positions; and
•maintain no less than 50% women in our workforce generally.
In addition to the Group’s commitment to achieving its targets we are committed to
striving to achieve gender pay equity. We undertake a comprehensive remuneration
gap analysis each year to highlight gender in pay outcomes and seek to ensure that
there are no systematic gender pay issues.
Westpac offers a range of flexible working options for our people based on their needs,
work preferences and the needs of the business. These include:
•flexible work hours;
•working from home or other locations;
•working part-time; and
•job sharing.
In addition, Westpac offers a variety of leave options that support flexibility, including
parental leave, carers leave, wellbeing and lifestyle leave, career breaks, purchased
leave, uncapped Domestic and Family Violence support leave, gender transition leave,
’Sorry Business’ Indigenous bereavement leave, volunteer leave and emergency services
leave.
Sustainability
We view sustainable and responsible business practices as important for our business and
shareholder value. Sustainability is about managing risks and opportunities in a way that best
balances the long-term needs of all our stakeholders – our customers, employees, suppliers,
investors and community partners – as well as the wider community and the environment at
large.
Our management of sustainability aims to address the matters that we believe are the
most material for our business and stakeholders, now and in the future. We also
understand that this is an evolving agenda and seek to progressively embed the
management of sustainability matters into business practice, while also anticipating and
shaping emerging social and environmental issues where we have the skills and
experience to make a meaningful difference and drive business value.
WESTPAC GROUP 2020 ANNUAL REPORT61
Corporate governance
1.Women in Leadership refers to the proportion of women (permanent and maximum term) in leadership roles across the Group. It includes the CEO, Group Executives, General Managers, senior leaders with significant influence on
business outcomes (direct reports to General Managers and their direct reports), large (3+) team people leaders three levels below General Manager, and Bank and Assistant Bank Managers.
2.Senior executives are defined as our Group Executives and General Managers.

Reporting
We report on the most material sustainability matters to Westpac, details of how we manage
the associated risks and opportunities and our performance against our sustainability
strategy in the Annual Report, the Sustainability Performance Report and the full year and
half year ASX results.
Our sustainability reporting is subject to independent limited assurance, performed in
accordance with the Australian Standard on Assurance Engagements 3000 Assurance
Engagements Other Than Audits or Reviews of Historical Financial Information (Revised)
(‘ASAE 3000’). The assurance provider also assesses whether our sustainability reporting is
prepared in accordance with AA1000 AccountAbility Principles Standard (2008) and the GRI
Standards.
Financial reporting
Approach to financial reporting
Our approach to financial reporting reflects three core principles:
x
that our financial reports present a true and fair view;
x
that our accounting methods comply with applicable accounting standards and policies;
and
x
that our external auditor is independent and serves security holders’ interests.
The Board, through the Board Audit Committee, has regard to Australian and
international developments relevant to these principles when reviewing our practices.
The Board delegates oversight responsibility for the integrity of financial statements and
financial reporting systems to the Board Audit Committee. The Board Risk Committee
provides relevant periodic assurances and reports (as appropriate) to the Board Audit
Committee. Similarly, the Board delegates oversight responsibility for the preparation of
remuneration reports and disclosures to the Board Remuneration Committee, which
recommends and provides relevant assurances through the Board Audit Committee to the
Board for approval.
Board Audit Committee
As set out in its charter, key responsibilities of the Board Audit Committee are:
x
overseeing the integrity of the financial statements and financial reporting systems of
Westpac and its related bodies corporate;
x
overseeing the external audit engagement, including the external auditor’s qualifications,
performance, independence and fees;
x
overseeing the performance of the internal audit function;
x
overseeing the integrity of the Group’s corporate reporting, including the Group’s
financial reporting and compliance with prudential regulatory reporting and professional
accounting requirements; and
x
reviewing and approving policies and procedures for the receipt, retention and treatment
of information submitted confidentially by employees and third parties about accounting,
internal control, compliance, audit or other matters about which an employee has
concerns and in conjunction with the Board Legal, Regulatory & Compliance Committee,
monitoring employee awareness of these policies and procedures.
The Board Audit Committee reviews, discusses with management and the external
auditor, and assesses:
x
any significant financial reporting issues and judgements made in connection with
the preparation of the financial statements, including significant changes in the
Group’s selection or application of accounting principles;
x
the processes used to monitor and comply with applicable laws and regulations
over financial information, reporting and disclosure; and
x
the process surrounding the disclosures made by the CEO and CFO in connection with
their personal certifications of the Group’s half year and full year financial statements.
In addition, the Board Audit Committee maintains an ongoing dialogue with management,
the external auditor and Group Audit, including regarding those matters that are likely to be
designated as Critical Audit Matters in the external auditor’s report. Critical Audit Matters are
those matters which, in the opinion of the external auditor, are of the most significance in
their audit of the financial report.
As part of its oversight responsibilities, the Board Audit Committee also conducts
discussions with a wide range of internal and external stakeholders including:
x
the external auditor, about our major financial reporting risk exposures and the steps
management has taken to monitor and control such exposures;
x
Group Audit and the external auditor concerning their reports regarding significant
findings in the conduct of their audits, and oversee that any issues identified are rectified
by management in an appropriate and timely way or reported to the Board Risk
Committee or Board Legal, Regulatory & Compliance Committee as appropriate (with
those committees overseeing management’s response to rectifying those issues);
x
management and the external auditor concerning the half year and full year financial
statements;
x
management and the external auditor regarding any correspondence with regulators or
government agencies, and any published reports which raise material issues or could
impact on matters regarding the Westpac Group’s financial statements or accounting
policies; and
x
the Group General Counsel regarding any legal matters that may have a material impact
on, or require disclosure in, the financial statements.
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Periodically, the Board Audit Committee consults with the external auditor without the
presence of management about internal controls over financial information, reporting and
disclosure and the fullness and accuracy of the Group’s financial statements. The Board
Audit Committee also meets with the General Manager, Group Audit without other members
of management being present.
The Board Audit Committee also refers to the Board or any other Board Committees any
matters that come to the attention of the Board Audit Committee that are relevant for the
Board or the respective Board Committees.
Financial knowledge
The Board Audit Committee comprises four independent, Non-executive Directors and is
chaired by Peter Nash.
All Board Audit Committee members have appropriate financial experience, an
understanding of the financial services industry and satisfy the independence requirements
under the ASXCGC Recommendations, Securities Exchange Act of 1934 (US) (as amended)
and its related rules, and the NYSE Listing Rules.
The Board has determined that Mr Nash is an ‘audit committee financial expert’ and
independent in accordance with US securities law.
The designation of Mr Nash as an audit committee financial expert does not impose duties,
obligations or liability on him that are greater than those imposed on him as a Board Audit
Committee member, and does not affect the duties, obligations or liability of any other Board
Audit Committee member or Board member. Audit committee financial experts are not
deemed as an ‘expert’ for any other purpose.
CEO and CFO assurance
The Board receives regular reports from management about our financial condition and
operational results, as well as that of our controlled entities. Before the Board approves the
financial statements for a financial period, the CEO and the CFO provide formal statements
to the Board that in all material respects:
x
Westpac’s financial records have been properly maintained in that they:
– correctly record and explain its transactions, and financial position and performance;
– enable true and fair financial statements to be prepared and audited; and
–are retained for seven years after the transactions covered by the records are
completed;
x
the financial statements and notes comply with the appropriate accounting standards;
x
the financial statements and notes give a true and fair view of Westpac’s and its
consolidated entities’ financial position and of their performance;
x
any other matters that are prescribed by the Corporations Act 2001 (Cth) and regulations
as they relate to the financial statements and notes are satisfied; and
x
the declarations provided in accordance with section 295A of the Corporations Act are
founded on a sound system of risk management and internal control, and that the system
is operating effectively in all material respects in relation to financial reporting risks.
The CEO and CFO have provided such statements for the financial year ended 30
September 2020.
External auditor
Our external auditor is PricewaterhouseCoopers (PwC), appointed by shareholders at the
2002 AGM. Prior to 2002, individuals who were partners of PwC or its antecedent Firms were
our external auditors from 1968. Our PwC lead audit partner is Lona Mathis and the quality
review partner is Ewan Barron. Ms Mathis and Mr Barron assumed responsibility for these
roles in June 2017 and December 2019, respectively.
The external auditor receives all Board Audit Committee, Board Risk Committee, Board
Legal, Regulatory & Compliance Committee and Board Technology Committee papers,
attends all meetings of these committees and is available to Committee members at any
time. The external auditor also attends the AGM to answer questions from shareholders
regarding the conduct of its audit, the audit report and financial statements and its
independence.
As our external auditor, PwC is required to confirm its independence and compliance with
specified independence standards on a semi-annual basis (at half and full financial year),
however in practice it confirms its independence on a quarterly basis.
We strictly govern our relationship with the external auditor, including restrictions on
employment, business relationships, financial interests and use of our financial products by
the external auditor.
Engagement of the external auditor
To avoid possible independence or conflict issues, the external auditor is not permitted to
carry out certain types of non-audit services for Westpac and may be limited as to the extent
to which it can perform other non-audit services as specified in our ‘Pre-approval of
engagement of PwC for audit and non-audit services’ (NAS Policy). Use of the external audit
firm for any non-audit services must be assessed and approved in accordance with the pre-
approval process determined by the Board Audit Committee and set out in the NAS Policy.
The breakdown of the aggregate fees billed by the external auditor in respect of each of the
two most recent financial years for audit, audit-related, tax and other services is provided in
Note 35 to our financial statements for the year ended 30 September 2020. A declaration
regarding the Board’s satisfaction that the provision of non-audit services by PwC is
compatible with the general standards of auditor independence is provided in Section 11
(b) of the Directors’ report.
WESTPAC GROUP 2020 ANNUAL REPORT63
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Group Audit (internal audit)
Group Audit is Westpac’s internal 3rd line assurance function that provides the Board and
Senior Executives with independent and objective evaluation of the adequacy and
effectiveness of the Group’s governance, risk management and internal controls
Group Audit is governed by a charter approved by the Board Audit Committee that sets out
the purpose, role, scope and high-level standards for the function. The General Manager,
Group Audit has a direct reporting line to the Chairman of the Board Audit Committee and an
administrative line to the CFO.
Group Audit also has the right to unrestricted and private access to the CEO. Group Audit’s
responsibilities include regularly reporting to the Board.
Verification of periodic corporate reports
For periodic corporate reports released to the market which are not required to be audited or
reviewed by our external auditor, Westpac has an internal verification and approval process
to support the integrity of the information that is being disclosed. The specific process for
each periodic corporate report will vary depending on the particular release but may generally
involve the individuals with responsibility for the information confirming to the best of their
knowledge and belief that the information is considered to be accurate and not misleading;
the review of the report or document by relevant internal subject matter experts (and in some
cases our external advisers); and the review by and confirmation from the individual
responsible for the corporate report that it is appropriate for release. Periodic corporate
reports released to the market may also, depending upon the report, be required to be
approved by the Disclosure Committee or the Board under Westpac’s Market Disclosure
Policy. Further details regarding Westpac’s Disclosure Policy are set out in the paragraph
below.
Market disclosure
We seek to provide all investors with equal, timely, accurate, balanced and meaningful
information. Consistent with these standards, the Group maintains a Board-approved Market
Disclosure Policy, which governs how we communicate with our shareholders and the
investment community. The Market Disclosure Policy is available on our website at
https://www.westpac.com.au/about-westpac/westpac-group/corporate-governance/principles-
policies/.
The policy reflects the requirements of the ASX, NZX, and other relevant offshore securities
exchanges, as well as relevant securities and corporations legislation. Under our policy,
information that a reasonable person would expect to have a material effect on the price or
value of our securities must first be disclosed via the ASX unless an exception applies under
regulatory requirements.
Our Disclosure Committee is responsible for (among other things) determining whether
matters within management’s authority should be disclosed publicly under the policy, and for
assisting employees in understanding what information may require disclosure to the market
on the basis that it is price sensitive. Certain disclosure decisions (for example, relating to
matters of fundamental importance to the Group) are the responsibility of the Board. The
Disclosure Committee is comprised of the Disclosure Officer, the Group General Counsel
and any one of the following:
the CEO, Chief Risk Officer, the Group Executive, Customer and Corporate Relations and
the Head of Investor Relations.
The CFO is the Disclosure Officer. The Disclosure Officer is ultimately responsible for all
disclosure related communication with relevant securities exchanges. The Company
Secretary or their delegate is authorised to give any documents to the ASX once they have
been approved pursuant to this Policy or by the Board. A copy of announcements on material
issues will also be provided to the Board promptly after release to the ASX, unless previously
provided.
Before Westpac gives a new and substantive investor or analyst presentation, we will release
a copy of that presentation to the market. Once relevant information is disclosed to the
market and available to investors, it may also be published on our website. This includes
investor discussion packs, and presentations on, and explanations about, our financial
results.
Our website information also includes Annual Reports, results announcements, speeches
and support material given at investor conferences or presentations, notices of meetings and
key media releases.
Shareholder communication and participation
We seek to keep shareholders fully informed about our strategy, business operations,
performance, and governance. As part of our investor relations program and consistent with
our Market Disclosure Policy we seek to maintain best practice and effective two-way
communication with shareholders. This includes:
•designing and maintaining the Investor Centre on the Group’s website to make all
relevant company information available and to structure that information in a way that
intends to make it easy to find and access;
•shareholders are given the option to receive information and communications, sent by
Westpac and its share registry, in print or electronic format;
•responding to shareholder queries directly via phone, email and mail;
•providing company presentations that seek to respond to the questions frequently asked
by shareholders along with major industry and company topics of interest; and
•facilitating appropriate access to all major market briefings and shareholder meetings,
including via webcasts and maintaining that information on our website.
Shareholders can access our financial calendar which lists all major market briefings and
shareholder meetings. Announcements on these events may also be made through ASX
announcements.
Our AGM is an important opportunity for engaging and communicating with shareholders,
and we typically rotate the location of our AGM throughout capital cities to allow us to reach a
broad range of shareholders over time. The AGM is also webcast and can be viewed later on
our website.
64WESTPAC GROUP 2020 ANNUAL REPORT
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Given the uncertainty and potential health risks created by the COVID-19 pandemic, and the
resulting Government restrictions and recommendations against travel and physical
gatherings, Westpac has made some changes to the way the 2020 AGM will be conducted to
facilitate the continued engagement with shareholders.
Shareholders and their proxies, corporate representatives and attorneys can participate in
the 2020 AGM through the AGM Online Platform or teleconference. They can also observe
proceedings via a webcast.
Shareholders who are unable to participate in the AGM can lodge a direct vote or appoint
proxies. At the time of receiving the Notice of Meeting, shareholders are also invited to put
forward questions they would like addressed at the AGM.
Risk management
Roles and responsibilities of the Board
The Board is responsible for approving the Group’s overall Risk Management Framework for
managing financial and non-financial risks, including the Westpac Group Risk Management
Strategy and the Westpac Group Risk Appetite Statement and for monitoring the
effectiveness of risk management by the Group.
Risk Culture
Westpac considers that a strong risk culture is essential for the Group’s Risk Management
Framework to operate effectively. Building and maintaining a strong risk culture is a
continuing focus of the Board.
Following the release of AUSTRAC’s Statement of Claim, APRA required Westpac to
reassess whether our Culture, Governance and Accountability (CGA) Program, which was
put in place to implement recommendations from Westpac’s 2018 CGA self-assessment,
remained fit for purpose.
One of the main conclusions from the CGA reassessment (completed during 2020), was that
aspects of our non-financial risk culture were ‘immature and reactive’.
The CGA reassessment further emphasised the importance of sound risk management, of
high-quality oversight by the Board and Group Executives, strong risk capabilities, a
proactive risk culture, effective risk boundaries and timely escalation of issues.
The CGA reassessment makes clear that a program of deeper change is required. Westpac
recognises this and the Board has approved the CGA reassessment remediation plan and is
overseeing the CORE program, designed to respond to the recommendations of the CGA
reassessment, including strengthening our risk culture. Further information about CORE is
set out in the Strategic Review.
Westpac aspires to a mature risk culture that proactively identifies, manages and mitigates
risks, learns from risk events and continuously anticipates new risks and opportunities. To
track progress towards our goal, we have developed and implemented several risk culture
tools and processes to assist management better measure, monitor and manage our risk
culture, with the intention of improving Group-wide ownership and accountability for risk and
building a stronger risk culture.
Roles and responsibilities
The Board has delegated to the Board Risk Committee responsibility to: establish a view of
the Group’s current and future risk position relative to its risk appetite and capital strength;
review and approve frameworks, policies and processes for managing risk; and review and,
where appropriate, approve risks beyond the approval discretion provided to management.
In June 2020, the Board Legal, Regulatory & Compliance Committee was established as a
sub-committee of the Board Risk Committee to assist it with overseeing financial crime risk,
material litigation and regulatory investigations, customer remediation activities and customer
complaints, compliance and conduct risk and material legal and regulatory change relevant to
the Group.
The Westpac Group Risk Management Framework, Risk Management Strategy and Risk
Appetite Statement are reviewed annually and have been reviewed by the Board Risk
Committee and were approved by the Board during the financial year ended 30 September
2020.
The Board Risk Committee is responsible for reviewing and monitoring the risk profile and
controls of the Group for consistency with the Group Risk Appetite Statement and for
reviewing and monitoring capital levels for consistency with the Group’s risk appetite. The
Board Risk Committee receives regular reports from management on the effectiveness of our
management of Westpac’s material risks.
More detail about the role of the Board Risk Committee and the Board Legal, Regulatory &
Compliance Committee is set out later in this section under the heading ‘Board Risk
Committee’ and ‘Board Legal, Regulatory & Compliance Committee’ respectively.
The CEO and Executive Team are responsible for implementing our risk management
framework and risk management strategy, and for developing fram
eworks, policies, controls,
processes and procedures for identifying and managing risk in all of Westpac’s activities.
We have adopted and continue to embed a Three Lines of Defence model to aid in end-to-
end management of risk, within which all employees play an active role. We have put in place
a risk management framework that seeks to:
x
deliver suitable, fair and clear outcomes for our customers that support market integrity;
x
protect Westpac’s depositors, policyholders and investors by maintaining a balance sheet
with sound credit quality and buffers over regulatory minimums; and
x
meet our regulatory and statutory obligations.
Westpac is currently upgrading its end-to-end risk management capabilities as part of an
ongoing program of work that spans both financial and non-financial risk. This work includes
the CORE program. For further information, refer to the Strategic Review.
WESTPAC GROUP 2020 ANNUAL REPORT65
Corporate governance

The 1st Line of Defence – manages the risk they originate
The 1st Line proactively identifies, evaluates, owns and manages the risks in their
business/domain. It also seeks to ensure that business activities are within approved risk
appetite and policies.
In managing its risk, the 1st Line is required to establish and maintain appropriate
governance structures, controls, resources and self-assessment processes, including issue
identification recording and escalation procedures. This accountability cannot be
abrogated. The 1st Line is accountable for ’self-certification’.
The 2nd Line of Defence – Risk: provides oversight, insight and control of 1st Line
activities
The 2nd Line sets frameworks, controls (including policies and limits) and standards for
use across the Group. The 2nd Line can require remediation or cessation of activity
where these are not adhered to. Their approach is intended to be risk-based and
proportionate to 1st line activities.
The 2nd Line’s role is to review and challenge 1st Line activities and decisions that may
materially affect Westpac’s risk position, and independently evaluates the effectiveness of the
1st Line’s controls, monitoring, compliance, and monitors progress towards mitigating risks.
In addition, the 2nd Line’s role is to provide insight to the 1st Line, assisting in developing,
maintaining and enhancing the business’ approach to risk management.
The 2nd Line considers and reports the aggregated risk profile of the Group to facilitate end-
to-end oversight of risk.
The 3rd Line of Defence – Provides Independent audit
Group Audit is an independent assurance function. Its role is to evaluate and opine on the
adequacy and effectiveness of both 1st and 2nd Line risk management approaches and track
remediation progress, with the aim of providing the Board, and Senior Executives, with
information about whether the Group’s governance, risk management and internal controls
are operating effectively.
Our overall risk management governance structure is set out in more detail in the table
‘Risk Management Governance Structure’ included in this Corporate Governance
Statement.
Westpac distinguishes between different types of risk:
x
risk culture – the risk that our culture does not promote and reinforce behavioural
expectations or structures to identify, understand, discuss and act on risks. This leads
to ineffective risk management, poor risk awareness, risk-taking outside of risk appetite
that is tolerated and a culture where key learnings are not integrated into Group-wide
and customer outcomes, impeding continuous improvement;
x
strategic risk – the risk that the Group makes incomplete strategic choices, does not
implement it strategies successfully, or does not respond effectively to changes in the
operating environment;
x
capital adequacy risk – the risk that the Group has an inadequate level or composition
of capital to support its normal business activities and to meet its regulatory capital
requirements under normal operating environments or stressed conditions;
x
funding and liquidity risk – the risk that the Group cannot meet its payment obligations
or that it does not have the appropriate amount, tenor or composition of funding and
liquidity to support its assets;
x
credit risk – the risk of financial loss where a customer or counterparty fails to
meet their financial obligations to Westpac;
x
market risk – the risk of an adverse impact on earnings resulting from changes in the
value of the Group’s positions as a result of a change in financial market factors, such
as foreign exchange rates, interest rates, commodity prices or equity prices. This
includes interest rate risk in the banking book - the risk to interest income from a
mism
atch
between the duration of assets and liabilities that arises in the normal course
of business activities;
x
financial crime risk – the risk that the Group fails to prevent financial crime and comply
with applicable global financial crime regulatory obligations;
x
operational risk – the risk of loss resulting from inadequate or failed internal processes,
people and systems or from external events. This definition excludes strategic risk.
While legal risk and regulatory risk arise through inadequate or failed processes,
people and systems or from external events, these are reflected primarily in conduct
and compliance risk;
x
cyber risk – the risk that the Group’s or its third parties’ data or technology are
inappropriately accessed, manipulated or damaged from cybersecurity threats or
vulnerabilities;
x
conduct and compliance risk – the risk of failing to abide by compliance obligations
required of us or otherwise failing to have behaviours and practices that deliver
suitable, fair and clear outcomes for our customers and that support market integrity;
and
x
reputational and sustainability risk – the risk that an action, inaction, transaction,
investment or event will reduce trust in the Group’s integrity and competence by
clients, counterparties, investors, regulators, employees or the public.
Westpac has received advanced accreditation from APRA and the RBNZ under the
Basel II capital framework, and uses the Advanced Internal Ratings Based (Advanced
IRB) approach for credit risk and the Advanced Measurement Approach (AMA) for
operational risk when calculating regulatory capital.
Material exposure to economic, environmental and social sustainability risks
Westpac seeks to manage its material exposures to economic, environmental and social
sustainability risks in accordance with its risk management strategy and frameworks.
66WESTPAC GROUP 2020 ANNUAL REPORT
Corporate governance

Board Risk Committee
The Board Risk Committee comprises five independent, Non-executive Directors and is
chaired by Peter Marriott.
As set out in its charter, the Board Risk Committee’s role is to:
x
assist the Board to consider and approve the Group’s overall risk management
framework for managing financial and non-financial risks;
x
review and oversee the risk culture across the Group;
x
review and recommend the Group Risk Management Framework, the Group Risk
Management Strategy and the Group Risk Appetite Statement to the Board for approval;
x
review and monitor the risk profile and controls of the Group for consistency with the
Group Risk Appetite Statement and assist the Board set the risk appetite for material
risks;
x
review and approve the frameworks, policies and processes for managing risk;
x
review and approve the limits and conditions that apply to credit risk approval authority
delegated to the CEO, CFO and Chief Risk Officer (CRO) and any other officers of the
Westpac Group to whom the Board has delegated credit approval authority;
x
monitor changes anticipated for the economic and business environment including
consideration of emerging risks and other factors considered relevant to our risk profile
and risk appetite;
x
assist the Board to make its annual declaration to APRA on risk management under
APRA prudential standard CPS 220 Risk Management;
x
review and where appropriate approve risks beyond the approval discretion provided to
management; and
x
assist the Board to oversee compliance management within the Group.
From the perspective of specific types of risk, the Board Risk Committee’s role as set out
in the current Committee charter includes:
x
credit risk – approving material policies and limits supporting the Group Credit Risk
Management Framework, approving credit provisioning, and monitoring the risk profile,
performance and management of our credit portfolio;
x
liquidity risk – approving key policies and limits supporting the Group Liquidity Risk
Management Framework, including our annual funding strategy, recovery and
resolutions plans, liquidity targets and limits, and monitoring the liquidity position and
requirements;
x
market risk – approving key policies and limits supporting the Group Market Risk
Management Framework, and reviewing and monitoring the market risk performance,
exposures, and risk positions;
x
operational risk – approving key policies supporting the Group Operational Risk
Management Framework and monitoring the performance of operational risk
management and controls; and
x
reputation and sustainability risk – reviewing and approving the Group Reputation and
Sustainability Risk Management Frameworks and monitoring the associated
management of these risks.
The Board Risk Committee also:
x
oversees and approves the Internal Capital Adequacy Assessment Process and in
doing so reviews and recommends the target capital ranges for regulatory capital and
reviews and monitors capital levels for consistency with the Westpac Group’s risk
appetite;
x
approves the Westpac Group stress testing, including review and approval of the
material scenarios adopted and monitors material stress testing results and
management responses;
x
provides relevant periodic assurances and reports (as appropriate) to the Board
Audit Committee;
x
rev
i
ews and approves other risk management frameworks and/or the monitoring of
performance under those frameworks (as appropriate);
x
forms a view of Westpac’s risk culture and the extent to which that supports the ability
of the Group to operate consistently within the Westpac Group Risk Management
Framework and Westpac Group Risk Appetite Statement and oversees the
identification of, and steps taken to address, any desirable changes to risk culture
and periodically reports to the Board;
x
refers or recommends to the Board and any other Board Committee (as appropriate)
any matters that have come to the attention of the Board Risk Committee that are
relevant for the Board or the respective Board Committee; and
x
in its capacity as the Westpac Group’s US Risk Committee, oversees the key risks, risk
management framework and policies of the Group’s US operations.
Board Financial Crime Committee
In November 2019, the Board established the Board Financial Crime Committee, to oversee
the implementation of Westpac’s enhanced financial crime program. The Board Financial
Crime Committee comprised four independent, Non-executive Directors and was chaired by
Peter Nash.
As set out in the Charter, the key responsibilities of the Board Financial Crime Committee
were to assist the Board oversee the:
x
implementation of Westpac’s Financial Crime Strategic Plan, supplemented as
appropriate by the Response Plan announced on 24 November 2019;
x
program of work set up to implement aspects of the Response Plan referred to above;
and
x
appointment of external experts to independently review Westpac’s management of
financial crime (through the Plan and Program) and oversee the review (or reviews) of
any relevant accountability.
The Board Financial Crime Committee as part of its role, commissioned Promontory to
provide assurance over the Management Accountability and Financial Crime Program
Review and reviewed the outcomes and recommendations of those reports. The Board
Financial Crime Committee was dissolved on 1 June 2020, with its remaining responsibilities
assumed by the Board Legal, Regulatory & Compliance Committee.
WESTPAC GROUP 2020 ANNUAL REPORT67
Corporate governance

Board Legal, Regulatory & Compliance Committee
On 1 June 2020, the Board Legal, Regulatory & Compliance Committee was established as a
sub- committee of the Board Risk Committee to enhance oversight of non-financial risk.
The Board Legal, Regulatory & Compliance Committee comprises five independent, Non-
executive Directors and is chaired by Peter Nash.
As set out in its charter, key responsibilities of the Board Legal, Regulatory & Compliance
Committee are to assist the Board Risk Committee, as it oversees:
•material legal and regulatory change relevant to the Group; and
•the Group’s management of:
–material litigation (including class actions) and regulatory investigations;
–compliance;
–conduct risk;
–financial crime risk;
–customer remediation activities and customer complaints; and
–such other operational risk activities as are delegated to the Board Legal, Regulatory
& Compliance Committee by the Board Risk Committee.
From the perspective of specific types of risk, the Board Legal, Regulatory & Compliance
Committee’s role as set out in its charter includes:
•financial crime risk – reviewing and approving the Westpac Group Financial Crime Risk
Management Framework, and key supporting policies and standards, including receiving
information regarding material breaches of the Westpac ABC Policy and monitoring the
Group’s financial crime risk performance and controls; and
•compliance and conduct risk – reviewing and approving the Westpac Group Compliance
and Conduct Risk Management Framework, and key supporting policies and standards,
and reviewing and monitoring Westpac’s risk performance and controls.
Compliance and Conduct Risk Management Framework
The Compliance and Conduct Risk Management Framework describes the Group’s approach
to managing compliance and conduct risk. The Framework supports the Board approved
Risk Management Framework and is also supported by appropriate Group wide and
Divisional Compliance policies.
The compliance and conduct management system supports our commitment to satisfying our
compliance requirements and creating an effective, proactive and forward-looking approach
to managing compliance and conduct risk. The system is a continuous cycle, comprising of
framework components which operate independently as well as interactively to provide an
end-to-end approach for managing compliance and conduct risk within our Board-approved
risk appetite. It is underpinned by the Group’s risk culture and a three lines of defence model.
Remuneration
The Board Remuneration Committee assists the Board in discharging its responsibilities by
overseeing remuneration policies and practices of Westpac and its related bodies corporate
in the context that these practices:
•fairly and responsibly reward individuals having regard to performance; and
•reflect Westpac’s risk management framework, the law and the highest standards of
governance.
The Board Remuneration Committee has been in place for the whole of the financial year
and is comprised of three independent Non-executive Directors and is chaired by Craig
Dunn. All members of the Board Remuneration Committee are also members of either the
Board Risk Committee or the Board Legal, Regulatory & Compliance Committee, which
assists in the integration of effective risk management into the remuneration framework.
As set out in its charter, the key responsibilities of the Board Remuneration Committee are:
•reviewing and recommending to the Board the Westpac Group Remuneration Policy
(Group Remuneration Policy) and assessing the Group Remuneration Policy’s
effectiveness and its compliance with laws, regulations and prudential standards;
•reviewing and recommending to the Board the individual remuneration levels of the Non-
executive Directors, CEO, Group Executives, other senior executives who report directly
to the CEO, any other Accountable Persons under the BEAR, other persons whose
activities in the Board Remuneration Committee’s opinion affect the financial soundness
of Westpac, any person specified by APRA, and any other person the Board determines;
•reviewing and recommending to the Board the remuneration structures for each category
of persons covered by the Group Remuneration Policy;
•reviewing and making recommendations to the Board on corporate goals and objectives
relevant to the remuneration of the CEO, and the performance of the CEO considering
these objectives;
•reviewing and making recommendations to the Board on the short and long-term variable
reward plans and outcomes and adjustments to variable remuneration for Group
Executives and any other Accountable Person under the BEAR;
•reviewing and making recommendations to the Board regarding the size of variable
reward pools each year based on consideration of pre-determined business performance
indicators and the financial soundness of Westpac;
•approving remuneration arrangements outside of the Group Remuneration Policy relating
to individuals or groups of individuals which are significant because of their sensitivity,
precedent or disclosure implications;
•reviewing and making recommendations to the Board in relation to the approval of all
equity-based plans; and
•overseeing general remuneration practices across the Group.
68WESTPAC GROUP 2020 ANNUAL REPORT
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WESTPAC GROUP 2020 ANNUAL REPORT69
Corporate governance
The Board Remuneration Committee reviews and makes recommendations to the Board for
the adjustment of variable components of remuneration downwards or to zero if appropriate,
in accordance with the Group Remuneration Policy, where:
•subsequent information or circumstances indicate that all or part of the grant was not
justified; or
•it determines that an adjustment should be made as a result of risk or compliance
failures, poor customer outcomes, where an Accountable Person has failed to comply
with their accountability obligations under the BEAR or any other matter it considers
relevant.
Independent remuneration consultants are engaged by the Board Remuneration Committee
to provide information across a range of issues, including remuneration benchmarking,
market practices and emerging trends and regulatory reforms.
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, including with respect to remuneration outcomes, adjustments to
remuneration and alignment of remuneration with the risk management framework. The
Board Remuneration Committee refers to the Board and any other Board Committee any
matters that come to its attention that are relevant for the Board or the respective Board
Committee.
Further details of our remuneration framework, including policies and practices regarding the
remuneration of Non-executive Directors and the remuneration of the CEO and other senior
executives, are included in the Remuneration Report in Section 10 of the Directors’ report.
The Board Remuneration Committee reviews and recommends the Remuneration Report
through the Board Audit Committee to the Board for approval.

70WESTPAC GROUP 2020 ANNUAL REPORT
Corporate governance
Risk Management Governance Structure
The roles and responsibilities that comprise Westpac’s risk management governance structure are set out in the table below:
Board
•approves our overall risk management framework, the Westpac Group Risk Management Framework, the Westpac Group Risk Management Strategy and the Westpac Group Risk Appetite Statement,
and monitors the effectiveness of risk management by the Westpac Group; and
•makes an annual declaration to APRA on risk management in accordance with regulatory requirements.
Board Risk Committee
•assists the Board to consider and approve the Group’s overall risk management framework for managing financial and non-financial risk;
•reviews and recommends the Westpac Group Risk Management Framework, the Westpac Group Risk Management Strategy and Westpac Group Risk Appetite Statement to the Board for approval;
•reviews and assists the Board oversee the risk culture across the Westpac Group;
•monitors the risk profile and controls of the Group for consistency with the Group Risk Appetite Statement and assists the Board to set the risk appetite for material risks;
•reviews and approves frameworks, policies and processes for managing risk;
•reviews and approves the limits and conditions that apply to credit risk approval authority delegated to the CEO, CFO, CRO and any other officers of the Westpac Group to whom the Board has
delegated credit approval authority;
•monitors changes anticipated for the economic and business environment including consideration of emerging risks and other factors considered relevant to our risk profile and risk appetite;
•assists the Board to make its annual declaration to APRA on risk management under APRA prudential standard CPS220 Risk Management;
•reviews and where appropriate approves risks beyond the approval discretion provided to management; and
•assists the Board to oversee compliance management within the Group.
Board Legal, Regulatory & Compliance Committee
•assists the Board Risk Committee as it oversees:
– material legal and regulatory change relevant to the Westpac Group;
– the Westpac Group’s management of:
•material litigation (including class actions) and regulatory investigations involving the Westpac Group;
•compliance;
•conduct risk;
•financial crime risk;
•customer remediation activities and customer complaints; and
•such other operational risk activities as are delegated to the Board Legal, Regulatory & Compliance Committee by the Board Risk Committee.
Other Board Committees with a risk focus
Board Audit Committee
•oversees the integrity of the financial statements, financial reporting systems, and the Group’s corporate reporting including the Group’s financial reporting, and compliance with prudential regulatory
reporting and professional accounting requirements and matters relating to taxation risks.
Board Remuneration Committee
•oversees remuneration policies and practices of the Westpac Group in the context that these policies and practices reflect Westpac’s risk management framework, including making recommendations
to the Board for the reduction or lapsing of incentive-based equity grants to employees as a result of risk or compliance failures.
Board Technology Committee
•oversees the implementation of the Westpac Group’s technology and data strategy and oversees the implementation of programs within the Enterprise Change Portfolio, including monitoring the
delivery of the major technology related transformation programs.
Executive Team
•executes the Board-approved strategy;
•delivers the Westpac Group’s various strategic and performance goals within the approved risk appetite;
•approves the position statements that guide the Westpac Group’s response to sustainability issues; and
•monitors key risks within each business unit, capital adequacy and the Westpac Group’s reputation.

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Corporate governance
Executive risk committees
Westpac Group Executive Risk Committee
•leads the management and oversight of material risks across the Westpac Group within the context of the risk appetite approved by the Board;
•oversees the effectiveness of the Risk Management Framework and the execution of the Risk Management Strategy;
•monitors and reviews the Group’s risk profile for all identified material risks;
•shapes and promotes a strong risk culture; and
•oversees emerging risks and allocates responsibility for assessing impacts and implementing appropriate actions to address these.
Westpac Group Executive Technical Risk Committee
•reviews, supports, approves and monitors risk class risk management frameworks and key supporting policies;
•monitors the review of risk models, model risk and capital measurements and methodologies; and
•monitors and reviews stress testing and scenario analysis and capital.
Westpac Group Asset & Liability Committee
•leads the optimisation of funding and liquidity risk-reward across the Group;
•reviews the level and quality of capital to ensure that it is commensurate with the Group’s risk profile, business strategy and risk appetite;
•oversees the Liquidity Risk Management Framework and key policies;
•oversees the funding and liquidity risk profile and balance sheet risk profile; and
•identifies emerging funding and liquidity risks and appropriate actions to address these.
Westpac Group Credit Risk Committee
•reviews and oversees the Credit Risk Management Framework and key supporting policies;
•oversees Westpac’s credit risk profile; and
•identifies emerging credit risks, allocates responsibility for assessing impacts, and responds as appropriate.
Westpac Group Market Risk Committee
•reviews and oversees the Market Risk Management Framework and key market risk management policies;
•reviews policies and limits for managing traded and non-traded market risk; and
•reviews and oversees the market risk, equity risk and insurance risk profile.
Westpac Group Operational and Compliance Risk Committee
•leads the optimisation of operational, conduct and compliance risk across the Group;
•reviews and oversees the Operational Risk Management Framework and Compliance and Conduct Risk Management Framework and key supporting policies;
•oversees Westpac’s operational risk and conduct and compliance risk profiles; and
•identifies emerging operational, conduct and compliance risks, and appropriate actions to address these.
Westpac Group Remuneration Oversight Committee
The primary function of the Westpac Group Remuneration Oversight Committee is to assist the Board Remuneration Committee and the Westpac Board in fulfilling its responsibility to oversee
remuneration policies and practices of Westpac and its related bodies corporate.
Some of the key responsibilities of the Westpac Group Remuneration Oversight Committee include:
•supporting the CEO, Board Remuneration Committee and the Board by reviewing and approving remuneration frameworks, guidelines and short term variable reward plans underpinning the Board-
approved Westpac Group Remuneration Policy from a Human Resources, Risk (including Compliance), Finance and Legal perspective and in line with external requirements;
•assisting the Board Remuneration Committee and the Board in fulfilling its responsibility to oversee remuneration policies and practices of the Group in the context that these policies and practices fairly
and responsibly reward individuals having regard to customer and shareholder interests, long term financial soundness and prudent risk management;
•recommending to the CEO for recommendation to the Board Remuneration Committee remuneration arrangements, including remuneration review and remuneration adjustment outcomes, for
Responsible Persons, risk and financial control employees, Material Risk Takers and other individuals whose activities may impact the financial soundness of Westpac below the Group Executive level;
and
•recommending to the CEO for recommendation to the Board Remuneration Committee the criteria and rationale for determining the total quantum of the Group variable reward pool.

72WESTPAC GROUP 2020 ANNUAL REPORT
Corporate governance
Prudential Reporting and Compliance Committee
•oversees from a Group-wide perspective, the Group’s compliance with prudential requirements and regulatory reporting;
•oversees the effective management of prudential compliance breaches, incidents and issues including remediation actions; and
•monitors and reviews ongoing prudential governance activities, including changes to prudential standards.
Reputational Risk Committee
•reviews issues with material reputation risk that arise in the operations of Westpac’ business to mitigate reputation risk and detrimental customer impacts.
Westpac Group Financial Crime Risk and Compliance Committee
•oversees AML/CTF, ABC, sanctions and tax transparency within the context of the risk appetite approved by the Board;
•reviews and oversees the Financial Crime Risk Management Framework, key supporting policies, programs and standards;
•monitors and oversees Westpac’s financial crime risk profile; and
•identifies emerging financial crime risks and appropriate actions to address these.
Risk function
•promotes a strong risk culture;
•owns the design and content of the Risk Management Framework;
•defines the structure and coverage of risk appetite;
•defines the annual risk strategy to execute the Risk Management Framework ensuring that the management of risks is in alignment with risk appetite and business strategy;
•establishes risk policies, procedures and limits;
•measures and reports on risk levels; and
•provides oversight of and direction on the management of risks.
Independent internal review
Group Audit
•reviews the adequacy and effectiveness of management controls over risk.
Divisional business units and functions
Business Units and Functions
•responsible for identifying, evaluating and managing the risks that they originate within approved risk appetite and policies; and
•establish and maintain appropriate risk management and compliance controls, resources and self-assessment processes.

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.
WESTPAC GROUP 2020 ANNUAL REPORT73
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.

74WESTPAC GROUP 2020 ANNUAL REPORT
BOARD OF DIRECTORS
JOHN M
C
FARLANE
MA, MBA
Age: 73
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.
PETER KING
BEc, FCA.
Age: 50
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.
NERIDA CAESAR
BCom, MBA, GAICD
Age: 56
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.

WESTPAC GROUP 2020 ANNUAL REPORT75
ALISON DEANS
BA, MBA, GAICD
Age: 52
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).
CRAIG DUNN
BCom, FCA
Age: 57
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.
STEVEN HARKER
BEc (Hons.), LLB
Age: 65
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.
PETER MARRIOTT
BEc (Hons.), FCA
Age: 63
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.

76WESTPAC GROUP 2020 ANNUAL REPORT
PETER NASH
BCom, FCA, F Fin
Age: 58
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.
MARGARET (MARGIE) SEALE
BA, FAICD
Age: 60
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.
CHRIS LYNCH
BCom, MBA, FCPA
Age: 67
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.

WESTPAC GROUP 2020 ANNUAL REPORT77
Company Secretary
Our Company Secretary as at 30 September 2020 was Tim Hartin.
TIM HARTIN
LLB (Hons.)
Age: 45
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.
Executive Team
As at 30 September 2020 our Executive Team was:
NAMEPOSITION
YEAR
JOINED
GROUP
YEAR
APPOINTED TO
POSITION
Peter KingManaging Director & Chief Executive Officer19942020
Richard BurtonActing Chief Executive, Consumer20102020
Rebecca LimGroup General Counsel & Enterprise Executive20022020
Guilherme (Guil) LimaChief Executive, Business20192019
Carolyn McCannGroup Executive, Customer & Corporate Relations20132018
David McLeanChief Executive Officer, Westpac New Zealand19992015
Christine ParkerGroup Executive, Human Resources20072011
Michael RowlandChief Financial Officer20202020
David StephenChief Risk Officer20182018
Gary ThursbyChief Information Officer (Acting)20082020
Les VanceGroup Executive, Financial Crime, Compliance & Conduct20082020
Alastair WelshActing Group Executive, Enterprise Services19922019
Jason YettonChief Executive, Specialist Businesses, Strategy & Transformation20202020
Curt ZuberActing Chief Executive, Westpac Institutional Bank19952020
There are no family relationships between or among any of our Directors or Executive Team members.

78WESTPAC 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.
RICHARD BURTON
BSc Mathematics (Hons)
Age: 48
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.
REBECCA LIM
B Econ, LLB (Hons)
Age: 48
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.
GUILHERME (GUIL) LIMA
MBA, BBA
Age: 46
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.

WESTPAC GROUP 2020 ANNUAL REPORT79
CAROLYN M
C
CANN
BBus (Com), BA,
GradDipAppFin, GAICD
Age: 48
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.
DAVID M
C
LEAN
LLB (Hons.)
Age: 62
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.
CHRISTINE PARKER
BGDipBus (HRM)
Age: 60
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.
MICHAEL ROWLAND
B.Comm, FCA
Age: 59
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.
DAVID STEPHEN
BBus
Age: 56
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.

80WESTPAC GROUP 2020 ANNUAL REPORT
GARY THURSBY
BEc, DipAcc, FCA
Age: 58
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.
LES VANCE
BCom, LLB (Hons)
Age: 50
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.
ALASTAIR WELSH
MBA, BCA, CA
Age: 55
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.
JASON YETTON
B.Comm (Finance & Mktg),
GradDipAppFin
Age: 49
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.
CURT ZUBER
BA, MBA
Age: 55
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.

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 135 to 153), ‘Divisional performance’ (see pages 154
to 169) and ‘Risk and risk management’ (see pages 170 to 189), 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 195 to 346), 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.
WESTPAC GROUP 2020 ANNUAL REPORT81
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 18)).
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 119 to 125).
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 2 to 72 and in ’Significant developments’ in
Section 1 of the Annual Report (see pages 119 to 125), 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 170 to 189).
82WESTPAC GROUP 2020 ANNUAL REPORT
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WESTPAC GROUP 2020 ANNUAL REPORT83
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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 WestpacNumber of Westpac
Ordinary SharesShare 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).

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.
84WESTPAC 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:
x
our Westpac Group Environment Policy;
x
our Sustainability Risk Management Framework;
x
our Climate Change Position Statement and 2023 Action Plan;
x
our Responsible Sourcing Code of Conduct; and
x
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 30 to 47).
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.
WESTPAC GROUP 2020 ANNUAL REPORT85
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86WESTPAC GROUP 2020 ANNUAL REPORT
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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/a55n/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 Seale 14772020n/an/a4433n/an/a66n/an/a88
Former DirectorABABABABABABABABAB
Lindsay Maxsted 154411112233n/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 memberB – 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.
1Out of cycle Board meetings typically called for a special purpose that do not form part of the Board’s forward agenda.
2Prior 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.
3On 1 July 2020, the roles and responsibilities of the Board Nominations Committee were revised, and the committee was renamed the Board Nominations & Governance Committee.
4The 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.
5John 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.
6Peter King was appointed as a Director and a member of the Board Technology Committee on 2 December 2019.
7Nerida 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.
8Chairman of the Board Technology Committee. Member of the Board Nominations & Governance Committee, Board Remuneration Committee and the Board Risk Committee.
9Chairman of the Board Remuneration Committee. Member of the Board Risk Committee and the Board Nominations & Governance Committee.
10Steven 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.
11Christopher Lynch was appointed as a Director and member of the Board Risk Committee and Board Audit Committee on 1 September 2020.
12Peter 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.
13Peter 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.
14Margaret 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.
15Lindsay Maxsted retired from the Board and its Committees on 31 March 2020.
16Brian Hartzer retired from the Board and its Committees on 2 December 2019.
17Ewen Crouch retired from the Board and its Committees on 12 December 2019 at the completion of the 2019 Annual General Meeting.
18Anita Fung retired from the Board and its Committees on 31 March 2020.

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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.
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.
88WESTPAC GROUP 2020 ANNUAL REPORT
Directors’ report
10.Remuneration Report
Letter from the Chairman of the Board Remuneration Committee
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.

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).
WESTPAC GROUP 2020 ANNUAL REPORT89
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.
90WESTPAC GROUP 2020 ANNUAL REPORT
Directors’ report
In this Report
1. Key Management Personnel93
2. Summary of the 2020 executive remuneration framework94
3. 2020 remuneration outcomes and alignment to performance96
4. Further detail on the executive variable reward structure103
5. Remuneration governance106
6. Non-executive Director remuneration108
7. Statutory remuneration details110

WESTPAC GROUP 2020 ANNUAL REPORT91
Directors’ report
Summary of remuneration decisions and actions
•
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.
Chief
•
The CEO’s 2020 STVR outcome is zero.
Executive
•
The 2017 LTVR outcome is zero. The LTVR lapsed in full because the relative TSR and cash ROE performance hurdles were not achieved.
Officer
•
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.
•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.
Group
Executives
•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
•John McFarlane commenced as Chairman during the year and receives an annual fee of $890,000.
Directors•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.
•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.
All employees•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.

92WESTPAC 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•Total target remuneration of $4,392,500 comprised of 26.5% fixed remuneration, 26.5% STVR and 47% LTVR.
Chief Executive, Business•Pro rata 2020 LTVR grant.
•
Buy out award
1
comprising cash and equity components totalling $1,693,151.
•Relocation benefits.
Michael Rowland•Total target remuneration of $3,800,000 comprised of 32% fixed remuneration, 24% STVR and 44% LTVR.
Chief Financial Officer•Not eligible for 2020 STVR or 2020 LTVR.
•Relocation benefits.
Les Vance•Total target remuneration of $2,800,000 comprised of 32% fixed remuneration, 24% STVR and 44% LTVR.
Group Executive, Financial
Crime, Compliance &
Conduct
•Pro rata 2020 LTVR grant.
Jason Yetton
Chief Executive, Specialist
•Total target remuneration of $4,375,000 comprised of 26% fixed remuneration, 26% STVR and 48% LTVR.
Businesses, Strategy &
Transformation
•Pro rata 2020 LTVR grant.
Former Executive
Exit arrangements
2
Brian Hartzer
Former Managing
•Received contractual requirements after stepping down from the role of Managing Director & Chief Executive Officer.
Director & Chief•Unvested equity lapsed.
Executive Officer•Not eligible for 2020 STVR.
Craig Bright•Served a mutually agreed reduced notice period.
Former Chief Information •Unvested equity lapsed.
Officer•Not eligible for 2020 STVR.
Lyn Cobley •Received contractual requirements in line with retirement.
Former Chief Executive,•Unvested equity remains on foot.
Westpac Institutional Bank•2020 STVR cancelled.
David Lindberg •Served a mutually agreed reduced notice period.
Former Chief Executive, •Unvested equity lapsed.
Consumer•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.

WESTPAC GROUP 2020 ANNUAL REPORT93
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.