Westpac 2021 Interim Financial Results Announcement

ASX
Release


3 MAY 2021

Westpac 2021 Interim Financial Results Announcement (incorporating
requirements of Appendix 4D)

Westpac Banking Corporation (“Westpac”) today provides the attached Westpac
2021 Interim Financial Results Announcement (incorporating requirements of
Appendix 4D).










For further information:

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


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



Level 18, 275 Kent Street
Sydney, NSW, 2000

2021
Interim
Financial
Results
FOR THE SIX MONTHS ENDED 31 MARCH 2021
INCORPORATING THE REQUIREMENTS OF APPENDIX 4D
WESTPAC BANKING CORPORATION
ABN 33 007 457 141
Fix. Simplify. Perform.

IIWESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
Results Announcement to the market
ASX Appendix 4D
Results for announcement to the market
1

Report for the half year ended 31 March 2021
2
Revenue from ordinary activities
3,4
($m)up1%to$10,686
Profit from ordinary activities after tax attributable to equity holders
4
($m)up189%to$3,443
Net profit for the period attributable to equity holders
4
($m)up189%to$3,443
Dividend Distributions (cents per ordinary share)
Amount per
security
Franked amount
per security
Interim dividend5858
Record date for determining entitlements to the dividend
14 May 2021
1. This document comprises the Westpac Group 2021 Interim Financial Results, including the 2021 Interim Financial Report contained in
Section 4 and is provided to the Australian Securities Exchange under Listing Rule 4.2A.
2. This report should be read in conjunction with the 2020 Westpac Group Annual Report and any public announcements made in the
period by the Westpac Group in accordance with the continuous disclosure requirements of the Corporations Act 2001 and ASX
Listing Rules.
3. Comprises reported interest income, interest expense and non-interest income.
4. Above comparisons are to the reported results for the six months ended 31 March 2020.

IIIWESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
1
2
3
4
5
6
7
Results Announcement to the market
Index
1.0Group results1
1.1 Reported results1
1.2 Key financial information3
1.3 Cash earnings results4
1.4 Market share and system multiple metrics10
2.0Review of Group operations11
2.1 Performance overview15
2.2 Review of earnings22
2.3 Credit quality34
2.4 Balance sheet and funding37
2.5 Capital and dividends42
2.6 Sustainability performance48
3.0Divisional results54
3.1 Consumer55
3.2 Business58
3.3 Westpac Institutional Bank61
3.4 Westpac New Zealand63
3.5 Specialist Businesses66
3.6 Group Businesses71
4.0 2021 Interim financial report73
4.1 Directors’ report74
4.2 Consolidated income statement98
4.3 Consolidated statement of comprehensive income99
4.4 Consolidated balance sheet100
4.5 Consolidated statement of changes in equity101
4.6 Consolidated cash flow statement102
4.7 Notes to the consolidated financial statements103
4.8 Statutory statements135
5.0Cash earnings financial information138
6.0 Other information149
6.1 Disclosure regarding forward-looking statements149
6.2 References to websites151
6.3 Credit ratings151
6.4 Dividend reinvestment plan151
6.5 Information on related entities151
6.6 Financial calendar and Share Registry details152
6.7 Exchange rates155
7.0Glossary156

IVWESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
Results Announcement to the market
In this Interim Financial Results Announcement (Results Announcement) references to ‘Westpac’, ‘WBC’, ‘Westpac
Group’, ‘the Group’, ‘we’, ‘us’ and ‘our’ are to Westpac Banking Corporation and its controlled entities, unless it
clearly means just Westpac Banking Corporation.
All references to $ in this Results Announcement are to Australian dollars unless otherwise stated.
Financial calendar
Interim Results Announcement released 3 May 2021
Ex-dividend date for interim dividend 13 May 2021
Record date for interim dividend (Sydney) 14 May 2021
Interim dividend payable 25 June 2021
Final Results Announcement (scheduled) 1 November 2021

1WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
1
2
3
4
5
6
7
Group results
1.0 Group results
1.1 Reported results
Reported net profit attributable to owners of Westpac Banking Corporation (WBC) is prepared in accordance with
the requirements of Australian Accounting Standards (AAS) and regulations applicable to Australian Authorised
Deposit-taking Institutions (ADIs).
Half YearHalf YearHalf Year% Mov’t
1
MarchSeptMarchMar 21 -Mar 21 -
$m202120202020Sept 20Mar 20
Net interest income 8,348 7,696 9,000 8 (7)
Net fee income 700 837 755 (16)(7)
Net wealth management and insurance income 598 286 465 109 29
Trading income 442 435 460 2 (4)
Other income 598 325 (76) 84 large
Net operating income before operating expenses and impairment
charges 10,686 9,579 10,604 12 1
Operating expenses(5,997)(6,558)(6,181)(9)(3)
Profit before impairment charges and income tax expense 4,689 3,021 4,423 55 6
Impairment (charges)/benefits 372 (940)(2,238)largelarge
Profit before income tax expense 5,061 2,081 2,185 143 132
Income tax expense(1,616)(980)(994) 65 63
Net profit for the period 3,445 1,101 1,191 large 189
Net profit attributable to non-controlling interests (NCI)(2)(1)(1) 100 100
Net profit attributable to owners of WBC 3,443 1,100 1,190 large 189
Net Profit attributable to owners of Westpac Banking Corporation for First Half 2021 was $3,443 million, an
increase of $2,253 million or 189% compared to First Half 2020.
The increase in Net Profit was largely due to large impairment charges incurred in First Half 2020 of $2,238 million,
whereas First Half 2021 included an impairment benefit of $372 million. This added $1,827 million to the increase
in Net Profit after tax. Over recent halves Westpac has also incurred certain specific large items. The net after tax
impact of these items was much less in First Half 2021 ($282 million) compared to First Half 2020 ($1,399 million).
These items included:
• Provisions for estimated customer refunds, payments, associated costs and litigation;
• The write-down of intangible items, including goodwill;
• The impact of asset sales and revaluations; and
• Costs of the AUSTRAC proceedings - including the penalty.
These are discussed in Section 1.3.2, Section 2.1, Section 2.2.9 and in Note 10 and Note 14 of the 2021 Interim
Financial Report.
The following is a summary of the movements in the major line items in Net Profit for First Half 2021 compared to
First Half 2020.
Net interest income (NII) of $8,348 million was $652 million lower compared to First Half 2020. With average
interest earning assets little changed over the year to First Half 2021, the lower NII result reflected a 15 basis point
decline in net interest margin to 2.06%. The decline in net interest margin was due to:
• Lower interest rates, which reduced income on average interest earning assets, partly offset by lower funding
costs;
• Mix effects on interest earning assets from a decline in higher returning loans and an increase in low returning
liquid assets; and
• Unrealised losses on fair value economic hedges in First Half 2021 of $53 million compared to a gain in
First Half 2020 of $300 million.
Net interest income and net interest margins are discussed in Section 2.2.1 and Section 2.2.4.
Non-interest income of $2,338 million increased by $734 million compared to First Half 2020. The increase was
mostly due to:
• An increase in the valuation of investments;
• Higher life insurance income from the non-repeat of asset impairment recognised in First Half 2020; and
• Lower claims for severe weather events resulting in higher insurance income.
These increases were partly offset by lower wealth income along with lower banking fees from lower activity
and the elimination of certain fees following our simplification program. Non-interest income is discussed in
Section 2.2.5.
1. Percentage movement represents an increase/(decrease) to the relevant comparative period.

2WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
Group results
Operating expenses of $5,997 million decreased by $184 million compared to First Half 2020. The decline was due
to $1,058 million in costs associated with the AUSTRAC proceedings in First Half 2020, partly offset by:
• An increase in full time equivalent (FTE) employees and associated costs, principally to improve risk
management activities and improve our mortgage processing;
• Higher impairment of intangible assets including capitalised software and goodwill;
• Higher costs associated with the announced divestments of certain specialists businesses, and investments; and
• An increased charge for estimated customer refunds, payments, associated costs and litigation.
Operating expenses are discussed in Section 2.2.8.
In First Half 2021 the Group recognised an impairment benefit of $372 million compared to an impairment charge
of $2,238 million in First Half 2020, a $2,610 million movement. In Full Year 2020 the Group materially increased
provisions in response to the expected economic impact of COVID-19, including forecasts of a prolonged
deterioration in economic activity, a rise in unemployment and a decline in property prices. Over the subsequent
year to First Half 2021, the effect of COVID-19 was significantly less than expected at that time across most
economic indicators. While a degree of uncertainty remains, some of the provisions booked through Full Year 2020
are no longer required and this contributed to the impairment benefits in First Half 2021. Impairment charges
and asset quality are discussed further in Section 2.2.9, Section 2.3, and Note 10 and Note 11 of the 2021 Interim
Financial Report.
Tax expense was up 63% in First Half 2021 compared to First Half 2020 from the rise in profit before tax. The
effective tax rate was 31.9% and close to Australia’s corporate tax rate of 30%. This was lower than the 45.5%
effective tax rate in First Half 2020 as penalties provided in that half were not tax deductible. Income tax expense
is discussed in Section 2.2.10.

3WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
1
2
3
4
5
6
7
Group results
1.2 Key financial information
1
Half YearHalf YearHalf Year% Mov’t
MarchSeptMarchMar 21 -Mar 21 -
202120202020Sept 20Mar 20
Shareholder value
Earnings per ordinary share (cents) 94.5 30.5 33.2 large 185
Weighted average ordinary shares (millions)
2
3,641 3,606 3,574 1 2
Fully franked dividends per ordinary share (cents)
3
58 31 - 87 -
Dividend payout ratio
3
61.75% 101.65%- large-
Return on average ordinary equity 9.92% 3.22% 3.52%largelarge
Average ordinary equity ($m) 69,583 68,403 67,625 2 3
Average total equity ($m) 69,634 68,454 67,678 2 3
Net tangible asset per ordinary share ($) 16.60 15.67 15.43 6 8
Business performance
Interest spread 1.97% 1.73% 2.08% 24 bps(11 bps)
Benefit of net non-interest bearing assets, liabilities and equity 0.09% 0.12% 0.13%(3 bps)(4 bps)
Net interest margin 2.06% 1.85% 2.21% 21 bps(15 bps)
Average interest earning assets ($m) 812,950 830,465 812,971 (2)-
Expense to income ratio 56.12% 68.46% 58.29%large(217 bps)
Capital, funding and liquidity
Common equity Tier 1 capital ratio
- APRA Basel III 12.34% 11.13% 10.81% 121 bps 153 bps
- Internationally comparable 18.08% 16.50% 15.81% 158 bps 227 bps
Credit risk weighted assets (credit RWA) ($m) 347,127 359,389 369,142 (3)(6)
Total risk weighted assets (RWA) ($m) 428,899 437,905 443,905 (2)(3)
Liquidity coverage ratio (LCR)
4,5
124% 151% 140%largelarge
Net stable funding ratio (NSFR)
5
123% 122% 117% 78 bpslarge
Asset quality
5
Gross impaired exposures to gross loans 0.30% 0.40% 0.30%(10 bps)-
Gross impaired exposures to equity and total provisions 2.67% 3.74% 2.93%(107 bps)(26 bps)
Gross impaired exposures provisions to gross impaired
exposures 47.03% 41.45% 50.09%large(306 bps)
Total committed exposures (TCE) ($bn) 1,072 1,060 1,082 1 (1)
Total stressed exposures as a % of TCE
6
1.60% 1.91% 1.32%(31 bps) 28 bps
Total provisions to gross loans 79 bps 88 bps 80 bps(9 bps)(1 bps)
Mortgages 90+ day delinquencies 1.11% 1.50% 0.87%(39 bps) 24 bps
Other consumer loans 90+ day delinquencies 1.92% 2.09% 1.94%(17 bps)(2 bps)
Collectively assessed provisions to credit RWA 142 bps 154 bps 140 bps(12 bps) 2 bps
Balance sheet ($m)
Loans 688,218 693,059 719,678 (1)(4)
Total assets 889,459 911,946 967,662 (2)(8)
Deposits and other borrowings 585,401 591,131 582,920 (1)-
Total liabilities 817,358 843,872 900,016 (3)(9)
Total equity 72,101 68,074 67,646 6 7
Wealth Management
Average Group Funds ($bn) 220.9 200.2 224.6 10 (2)
Life insurance in-force premiums (Australia) ($m)
7
943 953 1,208 (1)(22)
General insurance gross written premiums (Australia) ($m) 289 282 273 2 6
1. Averages are based on a six month period.
2. Weighted average number of fully paid ordinary shares listed on the ASX for the relevant period less average Westpac shares held by
the Group (“Treasury shares”).
3. The Board did not declare an interim dividend for First Half 2020.
4. Liquidity coverage ratios is calculated on a quarterly average basis. Comparatives have been restated.
5. Includes balances presented as held for sale.
6. Stressed exposures include program managed loans 90 days plus and non-performing transaction managed loans.
7. Refer to Section 3.5 Insurance key metrics for further details.

4WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
Group results
1.3 Cash earnings results
Throughout this Results Announcement, reporting and commentary of financial performance refers to ‘cash
earnings results’, unless otherwise stated. Section 4 is prepared on a reported basis. A reconciliation of cash
earnings to reported results is set out in Section 5, Note 8.
Certain commentary throughout this Results Announcement refers to performance excluding ‘notable items’.
Details on notable items are discussed in Section 1.3.2.
Half YearHalf YearHalf Year% Mov’t
MarchSeptMarchMar 21 -Mar 21 -
$m202120202020Sept 20Mar 20
Net interest income 8,469 8,420 8,666 1 (2)
Non-interest income 2,330 1,865 1,675 25 39
Net operating income 10,799 10,285 10,341 5 4
Operating expenses(5,981)(6,540)(6,160)(9)(3)
Core earnings 4,818 3,745 4,181 29 15
Impairment (charges)/benefits 372 (940)(2,238)largelarge
Operating profit before income tax expense 5,190 2,805 1,943 85 167
Income tax expense(1,651)(1,189)(949) 39 74
Net profit 3,539 1,616 994 119 large
Net profit attributable to NCI(2)(1)(1) 100 100
Cash earnings 3,537 1,615 993 119 large
Add back notable items 282 1,220 1,399 (77)(80)
Cash earnings excluding notable items 3,819 2,835 2,392 35 60

5WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
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2
3
4
5
6
7
Group results
1.3.1 Key financial information – cash earnings basis
Half YearHalf YearHalf Year% Mov’t
MarchSeptMarchMar 21 -Mar 21 -
202120202020Sept 20Mar 20
Shareholder value
Cash earnings per ordinary share (cents) 97.1 44.7 27.7 117 large
Economic profit/(loss) ($m)
1
1,407 (1,433)(2,146)largelarge
Weighted average ordinary shares (millions)
2
3,644 3,612 3,579 1 2
Dividend payout ratio 60.16% 69.33%- large-
Cash earnings return on average ordinary equity (ROE) 10.19% 4.72% 2.94%largelarge
Cash earnings return on average tangible ordinary equity (ROTE) 11.71% 5.49% 3.42%largelarge
Average ordinary equity ($m) 69,583 68,403 67,625 2 3
Average tangible ordinary equity ($m)
3
60,552 58,818 58,024 3 4
Business performance
Interest spread 2.01% 1.92% 1.99% 9 bps 2 bps
Benefit of net non-interest bearing assets, liabilities and equity 0.08% 0.11% 0.14%(3 bps)(6 bps)
Net interest margin 2.09% 2.03% 2.13% 6 bps(4 bps)
Average interest earning assets ($m) 812,950 830,465 812,971 (2)-
Expense to income ratio 55.38% 63.59% 59.57%largelarge
Full time equivalent employees (FTE) 38,747 36,849 34,199 5 13
Revenue per FTE ($ ‘000’s) 286 285 309 - (7)
Effective tax rate 31.81% 42.39% 48.84%largelarge
Impairment charges
Impairment charges/(benefits) to average loans annualised
4
(11 bps) 27 bps 62 bpslargelarge
Net write-offs to average loans annualised
4
9 bps 15 bps 12 bps(6 bps)(3 bps)
1. Refer to Section 5, Note 9 for further details.
2. Weighted average ordinary shares – cash earnings: represents the weighted average number of fully paid ordinary shares listed on the
ASX for the relevant period.
3. Average tangible ordinary equity is calculated as average ordinary equity less intangible assets (excluding capitalised software).
4. Includes assets and liabilities presented as held for sale.

6WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
Group results
1.3.2 Impact of notable items
Half Year March 2021Refunds,
$m
payments,
costs, and
litigation
Write-down
of intangibles
Asset
sales and
revaluationsTotal
Net interest income 71 - - 71
Non-interest income(199)- 571 372
Net operating income(128)- 571 443
Operating expenses(256)(249)(240)(745)
Core earnings(384)(249) 331 (302)
Income tax (expense)/benefit and NCI 108 50 (138) 20
Cash earnings(276)(199) 193 (282)
Half Year Sept 2020Refunds,
$m
AUSTRAC
proceedings
payments,
costs, and
litigation
Write-down
of intangibles
Asset
sales and
revaluationsTotal
Net interest income- (37)- - (37)
Non-interest income- (78)- 43 (35)
Net operating income- (115)- 43 (72)
Operating expenses(420)(142)(602)(119)(1,283)
Core earnings(420)(257)(602)(76)(1,355)
Income tax (expense)/benefit and NCI 5 75 34 21 135
Cash earnings(415)(182)(568)(55)(1,220)
Half Year March 2020Refunds,
$m
AUSTRAC
proceedings
payments,
costs, and
litigation
Write-down
of intangibles
Asset
sales and
revaluationsTotal
Net interest income- (106)- - (106)
Non-interest income- (131)- (97)(228)
Net operating income- (237)- (97)(334)
Operating expenses(1,058)(132)(66)- (1,256)
Core earnings(1,058)(369)(66)(97)(1,590)
Income tax (expense)/benefit and NCI 31 111 20 29 191
Cash earnings(1,027)(258)(46)(68)(1,399)

7WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
1
2
3
4
5
6
7
Group results
Over the last few halves a number of large items have impacted results. We have called these items “notable items”.
Notable items do not include COVID-19 impacts despite the significant effect on our results. Notable items can be
divided into four categories:
Category
Cash earnings
impact 1H21
$mDetail
1. AUSTRAC proceedings-• There were no costs or provisions associated with the AUSTRAC
proceedings in First Half 2021. These proceedings were settled in
Full Year 2020 with costs significant in that year.
2. Additional provisions for customer refunds
payments, associated costs and litigation
provisions
$276m
reduction
• Additional provisions for estimated refunds in First Half 2021 including for:
–Increase in provisions for aligned and salaried advisor fees;
–Increase in provisions for some customers on our platforms who were
not advised of certain corporate actions; partly offset by
–Release of provision for business customers provided with a business
loan instead of a consumer loan regulated by the National Consumer
Credit Protection Act and the National Credit Code.
• Additional costs for the implementation and completion of our
remediation program.
• Cost associated with ending the Group’s IOOF service agreement.
• Costs of settling litigation matters, including settlements.
3. Write-down of intangible items$199m
reduction
• Write down and impairment of capitalised software balances following a
review.
• Write down of goodwill in the Group’s Lenders Mortgage Insurance
business as it is now held for sale.
4. Asset sales and revaluations$193m
increase
• Gain on revaluation of the Group’s stake in Coinbase Inc (Coinbase) held in
the Reinventure Fund 1;
• Estimated future earn out associated with the sale of the Group’s Vendor
Finance business; and
• Gain on sale of Westpac’s holding in Zip Co Limited; partly offset by
• Loss on sale of Westpac Pacific; and
• Transaction and other costs related to the announced sales within the
Specialist Businesses division.

8WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
Group results
1.3.3 Cash earnings policy
In assessing financial performance, including divisional results, Westpac Group uses a measure of performance
referred to as ‘cash earnings’. Cash earnings is viewed as a measure of the level of profit that is generated by
ongoing operations and is therefore typically considered in assessing distributions, including dividends. Cash
earnings is neither a measure of cash flow nor net profit determined on a cash accounting basis, as it includes both
cash and non-cash adjustments to statutory net profit.
Management believes this allows the Group to more effectively assess performance for the current period against
prior periods and to compare performance across business divisions and across peer companies.
To determine cash earnings, three categories of adjustments are made to reported results:
• Material items that key decision makers at the Westpac Group believe do not reflect the Group’s ongoing
operations;
• Items that are not typically considered when dividends are recommended, mainly economic hedging impacts;
and
• Accounting reclassifications between individual line items that do not impact reported results.
A full reconciliation of reported results to cash earnings is set out in Section 5, Note 8:
Reconciliation of reported results to cash earnings and cash earnings excluding notable items
Half YearHalf YearHalf Year% Mov’t
MarchSeptMarchMar 21 -Mar 21 -
$m202120202020Sept 20Mar 20
Net profit attributable to owners of WBC 3,443 1,100 1,190 large 189
Fair value (gain)/loss on economic hedges 46 581 (219)(92)large
Ineffective hedges 48 (37)(24)largelarge
Adjustments related to Pendal- (32) 63 (100)(100)
Treasury shares- 3 (17)(100)(100)
Total cash earnings adjustment (post-tax) 94 515 (197)(82)large
Cash earnings 3,537 1,615 993 119 large
Add back notable items 282 1,220 1,399 (77)(80)
Cash earnings excluding notable items 3,819 2,835 2,392 35 60
Outlined below are the cash earnings adjustments to the reported result:
• Fair value (gain)/loss on economic hedges (which do not qualify for hedge accounting under AAS) comprise:
–The unrealised fair value (gain)/loss on hedges of accrual accounted term funding transactions are reversed
in deriving cash earnings as they may create a material timing difference on reported results but do not
affect the Group’s cash earnings over the life of the hedge; and
–The unrealised fair value (gain)/loss on foreign exchange hedges of future New Zealand earnings impacting
non-interest income is reversed in deriving cash earnings as they may create a material timing difference on
reported results but do not affect the Group’s cash earnings over the life of the hedge. Westpac has ceased
this activity and as a result, at this stage, no further adjustments will be recognised in future periods;
• Ineffective hedges: The unrealised (gain)/loss on ineffective hedges is reversed in deriving cash earnings
because the gain or loss arising from the fair value movement in these hedges reverses over time and does not
affect the Group’s profits over time;
• Adjustments related to Pendal: Westpac disposed of its holdings in Second Half 2020. As a result, no further
adjustments will be recognised. In prior periods this item was treated as a cash adjustment given its size and
did not reflect ongoing operations;
• Treasury shares: Treasury shares held by the Group in managed funds and life businesses were disposed of in
Second Half 2020 and these Treasury shares were nil as at 31 March 2021; and
• Accounting reclassifications between individual line items that do not impact reported results comprise:
–Operating leases: Under AAS rental income on operating leases is presented gross of the depreciation of
the assets subject to the lease. These amounts are offset in deriving non-interest income and operating
expenses on a cash earnings basis; and
–Policyholder tax recoveries: Income and tax amounts that are grossed up to comply with the AAS covering
Life Insurance Business (policyholder tax recoveries) are reversed in deriving income and taxation expense
on a cash earnings basis.

9WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
1
2
3
4
5
6
7
Group results
1.3.4 Balance sheet presentation changes
As at 31 March 2021, Westpac has announced the sale of certain specialist businesses which include Westpac
Vendor Finance business, Westpac General Insurance Limited, Westpac General Insurance Services Limited,
Westpac Pacific and Westpac Lenders Mortgage Insurance Limited. The assets and liabilities of these businesses
have been separately presented as assets held for sale and liabilities held for sale for First Half 2021. Comparatives
were not restated for this change. Refer to Section 3.5 for cash earnings contribution of businesses held for sale
and refer to Note 17 to the 2021 Interim Financial Report for further information.
1.3.5 This Results Announcement is unaudited
PricewaterhouseCoopers has reviewed the financial statements contained within Section 4 of this Results
Announcement and have issued an unmodified review report. All other sections, including the Directors’ Report in
Section 4 of the Results Announcement have not been subject to review by PricewaterhouseCoopers. The financial
information contained in this Results Announcement includes information extracted from the reviewed financial
statements together with information that has not been reviewed. The cash earnings disclosed as part of this
Results Announcement have not been separately reviewed by PricewaterhouseCoopers.

10WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
Group results
1.4 Market share and system multiple metrics
1.4.1 Market share
As atAs atAs at
31 March30 Sept31 March
202120202020
Australia
Banking system (Australian Prudential Regulation Authority (APRA))
Housing credit
1
22%23%23%
Cards22%22%23%
Household deposits21%21%22%
Business deposits19%19%20%
Financial system (Reserve Bank of Australia (RBA))
Housing credit
1
22%22%22%
Business credit15%16%16%
Retail deposits
2
20%21%21%
New Zealand (Reserve Bank of New Zealand (RBNZ))
3
Consumer lending18%19%18%
Deposits18%18%19%
Business lending17%17%17%
Australian Wealth Management
4
Platforms (includes Wrap and Corporate Super)18%18%18%
Retail (excludes Cash)17%17%18%
Corporate Super15%14%15%
1.4.2 System multiples
Half YearHalf YearHalf Year
31 March30 Sept31 March
202120202020
Australia
Banking system (APRA)
Housing credit
1,5
0.4 n/a n/a
Cards
5
n/a n/a n/a
Household deposits 0.6 0.6 0.3
Business deposits 0.2 0.7 0.6
Financial system (RBA)
Housing credit
1,5
0.4 n/a n/a
Business credit
5
n/a n/a 0.2
Retail deposits
2,5
n/a 0.4 0.3
New Zealand (RBNZ)
3
Consumer lending 0.9 1.3 1.0
Deposits 1.4 0.3 1.6
1. Includes securitised loans.
2. Retail deposits as measured by the RBA, financial system includes financial corporations’ deposits.
3. New Zealand comprises New Zealand banking operations.
4. Market Share Australian Wealth Management based on market share statistics from Strategic Insight as at 31 December 2020 (for First
Half 2021), as at 30 June 2020 (for Second Half 2020) and as at 31 December 2019 (for First Half 2020).
5. n/a indicates that system growth or Westpac growth was negative.

11WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
1
2
3
4
5
6
7
Review of Group operations
2.0 Review of Group operations
Divisional cash earnings summary
Half Year March 2021
ConsumerBusiness
Westpac
Institutional
Bank
Westpac
New
Zealand
1
(A$)
Specialist
Businesses
Group
BusinessesGroup$m
Net interest income 4,216 2,083 464 996 253 457 8,469
Non-interest income 241 273 582 167 684 383 2,330
Net operating income 4,457 2,356 1,046 1,163 937 840 10,799
Operating expenses(2,270)(1,170)(698)(500)(740)(603)(5,981)
Core earnings 2,187 1,186 348 663 197 237 4,818
Impairment (charges)/benefits 80 129 (8) 92 80 (1) 372
Operating profit before income tax
(expense)/benefit 2,267 1,315 340 755 277 236 5,190
Income tax (expense)/benefit(675)(395)(110)(210)(146)(115)(1,651)
Net profit 1,592 920 230 545 131 121 3,539
Net profit attributable to NCI- - - - 3 (5)(2)
Cash earnings 1,592 920 230 545 134 116 3,537
Add back notable items 76 (25) 26 10 297 (102) 282
Cash earnings excluding notable items 1,668 895 256 555 431 14 3,819
Half Year September 2020
ConsumerBusiness
Westpac
Institutional
Bank
Westpac
New
Zealand
1
(A$)
Specialist
Businesses
Group
BusinessesGroup$m
Net interest income 4,313 2,019 506 892 247 443 8,420
Non-interest income 247 249 626 152 334 257 1,865
Net operating income 4,560 2,268 1,132 1,044 581 700 10,285
Operating expenses(2,141)(1,230)(697)(482)(1,128)(862)(6,540)
Core earnings 2,419 1,038 435 562 (547)(162) 3,745
Impairment (charges)/benefits(599)(674)(111)(102)(95) 641 (940)
Operating profit before income tax
(expense)/benefit 1,820 364 324 460 (642) 479 2,805
Income tax (expense)/benefit(546)(108)(139)(129) 44 (311)(1,189)
Net profit 1,274 256 185 331 (598) 168 1,616
Net profit attributable to NCI- - - - (1)- (1)
Cash earnings 1,274 256 185 331 (599) 168 1,615
Add back notable items 19 100 - 4 820 277 1,220
Cash earnings excluding notable items 1,293 356 185 335 221 445 2,835
Mov’t Mar 21 - Sept 20
ConsumerBusiness
Westpac
Institutional
Bank
Westpac
New
Zealand
1
(A$)
Specialist
Businesses
Group
BusinessesGroup%
Net interest income(2) 3 (8) 12 2 3 1
Non-interest income(2) 10 (7) 10 105 49 25
Net operating income(2) 4 (8) 11 61 20 5
Operating expenses 6 (5)- 4 (34)(30)(9)
Core earnings(10) 14 (20) 18 largelarge 29
Impairment (charges)/benefitslargelarge(93)largelargelargelarge
Operating profit before income tax
(expense)/benefit 25 large 5 64 large(51) 85
Income tax (expense)/benefit 24 large(21) 63 large(63) 39
Net profit 25 large 24 65 large(28) 119
Net profit attributable to NCI- - - - large- 100
Cash earnings 25 large 24 65 large(31) 119
Add back notable itemslargelarge- 150 (64)large(77)
Cash earnings excluding notable items 29 151 38 66 95 (97) 35
1. Refer to Section 3.4 for the Westpac New Zealand NZ$ divisional result.

12WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
Review of Group operations
Movement in cash earnings ($m)
First Half 2021 – Second Half 2020
2H20 cash
earnings
Add
back
2H20
notable
items
2H20
cash
earnings
ex notable
items
Net
interest
income
Non-
interest
income
Operating
expenses
Impairment
charges
Tax &
non-
controlling
interests
1H21 cash
earnings
ex notable
items
1H21
notable
items
1H21 cash
earnings
1,615
1,220
2,835
(59)
58
21
1,312
(348)
3,819
(282)
3,537
119%
35%
Movement in core earnings by division ($m)
First Half 2021 – Second Half 2020
2H20 core
earnings
Add
back
2H20
notable
items
2H20
core
earnings
ex notable
items
ConsumerBusinessWIBWestpac
New
Zealand
(A$)
SBD
1H21 core
earnings
ex notable
items
Group
Businesses
1H21
notable
items
1H21 core
earnings
3,745
1,3555,100
(150)
(30)
(50)
109
121
205,120
(302)
4,818
29%
Flat

13WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
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Half Year March 2021
ConsumerBusiness
Westpac
Institutional
Bank
Westpac
New
Zealand
1
(A$)
Specialist
Businesses
Group
BusinessesGroup$m
Net interest income 4,216 2,083 464 996 253 457 8,469
Non-interest income 241 273 582 167 684 383 2,330
Net operating income 4,457 2,356 1,046 1,163 937 840 10,799
Operating expenses(2,270)(1,170)(698)(500)(740)(603)(5,981)
Core earnings 2,187 1,186 348 663 197 237 4,818
Impairment (charges)/benefits 80 129 (8) 92 80 (1) 372
Operating profit before income tax
(expense)/benefit 2,267 1,315 340 755 277 236 5,190
Income tax (expense)/benefit(675)(395)(110)(210)(146)(115)(1,651)
Net profit 1,592 920 230 545 131 121 3,539
Net profit attributable to NCI- - - - 3 (5)(2)
Cash earnings 1,592 920 230 545 134 116 3,537
Add back notable items 76 (25) 26 10 297 (102) 282
Cash earnings excluding notable items 1,668 895 256 555 431 14 3,819
Half Year March 2020
ConsumerBusiness
Westpac
Institutional
Bank
Westpac
New
Zealand
1
(A$)
Specialist
Businesses
Group
BusinessesGroup$m
Net interest income 4,234 2,144 605 940 287 456 8,666
Non-interest income 326 311 556 167 428 (113) 1,675
Net operating income 4,560 2,455 1,161 1,107 715 343 10,341
Operating expenses(2,035)(1,068)(619)(516)(420)(1,502)(6,160)
Core earnings 2,525 1,387 542 591 295 (1,159) 4,181
Impairment (charges)/benefits(416)(697)(293)(200)(160)(472)(2,238)
Operating profit before income tax
(expense)/benefit 2,109 690 249 391 135 (1,631) 1,943
Income tax (expense)/benefit(637)(212)(102)(110)(41) 153 (949)
Net profit 1,472 478 147 281 94 (1,478) 994
Net profit attributable to NCI- - - - (1)- (1)
Cash earnings 1,472 478 147 281 93 (1,478) 993
Add back notable items 20 88 - 5 102 1,184 1,399
Cash earnings excluding notable items 1,492 566 147 286 195 (294) 2,392
Mov’t Mar 21 - Mar 20
ConsumerBusiness
Westpac
Institutional
Bank
Westpac
New
Zealand
1
(A$)
Specialist
Businesses
Group
BusinessesGroup%
Net interest income- (3)(23) 6 (12)- (2)
Non-interest income(26)(12) 5 - 60 large 39
Net operating income (2)(4)(10) 5 31 145 4
Operating expenses 12 10 13 (3) 76 (60)(3)
Core earnings(13)(14)(36) 12 (33)large 15
Impairment (charges)/benefitslargelarge(97)largelarge(100)large
Operating profit before income tax
(expense)/benefit 7 91 37 93 105 large 167
Income tax (expense)/benefit 6 86 8 91 largelarge 74
Net profit 8 92 56 94 39 largelarge
Net profit attributable to NCI- - - - large- 100
Cash earnings 8 92 56 94 44 largelarge
Add back notable itemslargelarge- 100 191 large(80)
Cash earnings excluding notable items 12 58 74 94 121 large 60
1. Refer to Section 3.4 for the Westpac New Zealand NZ$ divisional result.

14WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
Review of Group operations
Movement in cash earnings ($m)
First Half 2021 – First Half 2020
1H20 cash
earnings
Add
back
1H20
notable
items
1H20
cash
earnings
ex notable
items
Net
interest
income
Non-
interest
income
Operating
expenses
Impairment
charges
Tax &
non-
controlling
interests
1H21 cash
earnings
ex notable
items
1H21
notable
items
1H21 cash
earnings
993
1,3992,392
(374)
55
(332)
2,610
(532)
3,819
(282)
3,537
256%
60%
Movement in core earnings by division ($m)
First Half 2021 – First Half 2020
1H20 core
earnings
Add
back
1H20
notable
items
1H20
core
earnings
ex notable
items
ConsumerBusinessWIBWestpac
New
Zealand
(A$)
Group
Businesses
SBD
1H21 core
earnings
ex notable
items
1H21
notable
items
1H21 core
earnings
4,181
1,590
5,771
(257)
(362)
(157)
(46)
79
92
5,120
(302)
4,818
15%
(11%)

15WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
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2.1 Performance overview
Overview
First Half 2021 has been a period of progress for Westpac with higher cash earnings, a stronger balance sheet
and momentum on our strategic priorities. Cash earnings for First Half 2021 were $3,537 million, up $1,922 million
on Second Half 2020 and up $2,544 million on First Half 2020. Westpac’s cash return on equity was 10.2% in
First Half 2021 while cash earnings per share were 97.1 cents per share, more than doubling over the half.
The increase in cash earnings in First Half 2021 compared to Second Half 2020 was predominantly due to a
significant turnaround in impairment charges (a $918 million cash earnings increase) and a lower impact from large
infrequent items (a $938 million cash earnings impact). In First Half 2021 these infrequent items included:
• Provisions for estimated customer refunds and payments and associated costs and litigation provisions;
• The write-down of intangible items, including goodwill; and
• The impact of asset sales and revaluations.
To help explain performance we have combined these infrequent items and called them “notable items”. Further
detail on notable items is provided in Section 1.3.2 and Section 3.0. In aggregate, they reduced cash earnings in
First Half 2021 by $282 million, by $1,220 million in Second Half 2020 and by $1,399 million in First Half 2020.
Excluding notable items, cash earnings for First Half 2021 were $3,819 million up $984 million or 35% on
Second Half 2020 and up 60% on First Half 2020. The increase was mostly due to the impairment benefit from a
combination of better credit quality metrics, a stronger operating environment and an improved economic outlook
which meant that some impairment provisions, first booked in Full Year 2020, were no longer required.
Higher earnings, excluding notable items, were supported by a 3 basis point increase in margins and higher non-
interest income, including from higher cards and platforms revenue. These were partly offset by a decline in lending
and an increase in tax expense.
The rise in cash earnings contributed to a further strengthening of our balance sheet. Our common equity tier 1
(CET1) capital ratio increased 121 basis points to 12.34% while our funding and liquidity metrics are all comfortably
above regulatory minimums. Given the improved results and higher capital the Board has determined to pay an
interim ordinary dividend of 58 cents per share.
In 2020, Westpac underwent significant change with a new strategic direction, changes in the Board and
management, establishment of the Specialist Businesses division to manage (and exit) non-core businesses and
a reorganisation of our operations around a Lines of Business operating model. At the same time, we expanded
initiatives to fix our issues, materially enhance our management of risk and improve our risk culture.
Supporting this change, we adopted a new purpose: “Helping Australians and New Zealanders succeed” which
captures a key element of our culture of helping and reinforced our focus on service and customers. Recognising
this new direction, we have aligned our strategy around three priorities; Fix, Simplify and Perform. In First Half 2021,
we made good progress implementing our strategy and finalised our executive appointments including new roles
of Chief Operating Officer and Group Executive Consumer & Business Banking. Developments under each priority
are described below.
Fix
This priority is focused on fixing our issues and lifting our control environment. This includes improving our
management of risk, improving our risk culture and completing customer remediation as quickly as possible.
Developments over First Half 2021 included:
• Expanding our CORE (Customer Outcomes and Risk Excellence) program to improve our financial and non-
financial risk governance. The CORE program includes implementing the Integrated Plan, which was approved
by APRA on 7 April 2021, with independent assurance reports to be completed by Promontory Australasia each
quarter;
• Progressing customer remediation, paid over $200 million to approximately 570k customers in First Half 2021;
• ASIC and APRA both announced that no further action would be taken for matters relating to the AUSTRAC
litigation following completion of their investigations;
• Improving our risk management capacity and capability with the addition of over 100 resources to:
–Support increased credit risk oversight to increase the speed and quality of decision making;
–Improve risk reporting through better data inputs, increasing automation of analysis and improving our tools
for forecasting, behavioural analysis and provision modelling; and
–Lifting the quality and breadth of our stress testing.
• Progress in improving our financial crime program - over the last 18 months we have:
–Lifted capacity and capability via a 60% increase in the team;
–Addressed issues in the AUSTRAC Statement of Claim;
–Upgraded all risk assessment methodologies and monitoring solutions; and
–We are assessing high risk customers more frequently. More than doubling financial crime operations people
investigating and reporting on Financial Crime - including suspicious matters.
Review of Group
operations

16WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
Review of Group operations
While making progress, we recognise that following the Royal Commission into Misconduct in the Banking,
Superannuation and Financial Services Industry, ASIC still has a number of investigations underway that primarily
relate to our past practices and that these could result in further litigation, fines, penalties or other regulatory
action. Our Contingent liabilities Note 14 to the Interim Financial Statements outlines these further.
Simplify
In simplifying the business we are focused on three dimensions 1. portfolio simplification – the businesses we
operate, 2. geographic simplification – where we operate, and 3. banking simplification – making it easier for our
customers to bank with us, using digital to transform our operations.
Under portfolio simplification, our Specialist Businesses division was set up to manage the businesses we ultimately
plan to exit. In First Half 2021 we:
• Entered into agreements to sell our General Insurance and Lenders Mortgage Insurance businesses, this
followed the announced exit of Vendor Finance in Second Half 2020. Completion of these divestments is
expected in Second Half 2021; and
• In New Zealand we completed the sale of our Wealth Advisory business.
Our remaining businesses for exit include our Auto Finance, Life Insurance and Superannuation, Investments and
Platforms operations (SIP).
Geographic simplification has involved:
• The announced sale of Westpac Pacific comprising our PNG and Fiji businesses;
• Announcing the consolidation of our international operations, reducing our presence in Asia from 5 locations
to a single hub in Singapore. The branches in Mumbai and Jakarta have now been closed with the remainder
scheduled to close by the end of 2021; and
• Maintaining our presence in the key capital markets of New York and London and expanding our capability into
Frankfurt in response to Brexit.
Banking simplification in First Half 2021 included:
• Combining the leadership of the Consumer and Business divisions into the Consumer & Business Banking
division;
• Closing 49 branches across Australia and New Zealand and reducing the ATM network by a further 3%;
• Launching our new mobile banking iPhone app for all personal banking and sole trader customers;
• Removed around 100 customer fees to simplify how we operate, and improve the experience for customers;
and
• Progressing the return of 1,000 offshore roles to Australia, with around 50% of the roles transitioned. This
includes critical mortgage processes that were impacted through COVID-19.
Perform
In a low interest rate, highly competitive market it is vital that we improve our efficiency and effectiveness to
improve shareholder returns and the sustainability of our dividends. Our Lines of Business operating model
is key to this change facilitating greater clarity, better end-to-end process management and control, clearer
accountability and speeding up decision making. In so doing we are enhancing service and optimising how we
manage our business to generate appropriate returns.
Establishment of the mortgage line of business was a priority and provided end-to-end responsibility for all aspects
of the mortgage process. This included origination, credit approvals, pricing and servicing. This new approach has
enabled us to simplify all elements of the mortgage process and create a better experience for customers. Progress
over the half included:
• Creating one digital origination process across all of our banking brands; and
• Implementing over 60 process and policy improvements to simplify the process for customers and bankers.
This has led to less hand-offs across teams (including credit) and greater process consistency across brands
and channels.
Key to improving financial performance is managing the business in a disciplined way across margins, expenses,
asset quality and capital. It includes improving efficiency and in First Half 2021 we commenced our cost reset
program, targeting an $8.0 billion cost base by FY24. While the benefits of this program will initially follow our
simplification initiatives and migrating more activity to digital, we have also commenced work to clarify the
resources needed to run a simpler organisation, completed an analysis of management layers, and continued to
reduce our spending with third parties.
Supporting customers
In implementing our strategy, we have sharpened our focus on supporting customers. In First Half 2021, much of
our attention was on assisting customers though the uncertainties created by COVID-19. Over 200,000 customers
utilised COVID-19 deferral packages, helping them to manage their cash flows. While the vast majority of these
customers have transitioned to full repayment, ongoing help has still been required for some affected customers.

17WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
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Review of Group operations
In addition, parts of Eastern Australia were also affected by significant floods in March this year and we provided
around $6 million of emergency grants to almost 2,000 customers while also offering our natural disaster relief
packages. We backed this support with a $10 million flood support fund.
Through the half we have continued to implement initiatives to help customers manage their finances or navigate
difficult circumstances. Initiatives included:
• Enhancing the ability for customers to block their cards to limit online gambling;
• Implementing new measures to block inappropriate messages through payments channels; and
• Helping the more vulnerable in the community, with around 18,000 customers receiving assistance through our
specialist team.
COVID-19
COVID-19 has had a significant impact on economies and businesses around the globe, including on Westpac and
its customers. These impacts were initially significant and far reaching and while the Australian and New Zealand
economies have rebounded following the more severe shutdowns and social restrictions, some of the effects of the
pandemic continue and could be long lasting. The effect of COVID-19 on Westpac can be broadly categorised into
five impacts.
1. The economic impacts reduced loan demand, particularly in business lending, while low interest rates have
contributed to lower net interest margins and put pressure on net interest income. However, low interest rates
have reduced borrowing costs for customers and contributed to a rise in mortgage loan growth through
First Half 2021.
2. In 2020, Westpac provided significant support to customers via repayment deferrals, fee waivers, special
interest rates and special loans. These support measures have now been wound down and so the effect on
net interest income and non-interest income has reduced. Where customers require further support we are
providing this through our pre-existing hardship arrangements.
3. The economic impacts of COVID-19 led to a rise in stressed exposures. This contributed to a rise in impairment
provisions in 2020 as we estimated potential losses. In First Half 2021 it became clear that the potential increase
in stressed exposures will be less than initially expected, and after peaking around September 2020, the
proportion of loans classified as stressed has now declined, although it has not returned to pre-pandemic levels.
Despite the improving outlook, some uncertainty remains, and we will continue to monitor how customers
manage the winding down of government assistance in determining impairment provisions.
4. Costs increased as we responded to higher demand for support, installed new safety measures into our
locations and brought more roles back to Australia. Some of these costs will remain while we continue to focus
on supporting customers and protecting employees through this time.
5. A stronger balance sheet through more capital, higher liquid assets and more customer deposits. These
changes partly impact net interest income but also reduce returns from higher levels of capital.
Financial performance summary (First Half 2021 compared to Second Half 2020)
Cash earnings for First Half 2021 were $3,537 million, up 119% on Second Half 2020. The result was higher due to a
lower impact from notable items and an impairment benefit of $372 million compared to a $940 million impairment
charge in Second Half 2020. Notable items are explained further in Section 1.3.2 and Section 3.0.
The cash earnings impact of notable items was $282 million in First Half 2021 (compared to $1,220 million in
Second Half 2020). Excluding notable items, cash earnings were $3,819 million, up $984 million or 35% over
Second Half 2020.
Net interest income
Net interest income of $8,469 million was up 1% over the six months with a 6 basis point increase in net interest
margins partly offset by a 2% decrease in average interest-earning assets. Excluding notable items, net interest
income was lower (down $59 million).
Notable items in interest income were mostly related to provisions for customer refunds for business customers
that were provided a business loan instead of a consumer loan regulated by the National Consumer Credit
Protection Act and the National Credit Code. In First Half 2021 some of the provisions were no longer required and
this increased net interest income.
The decline in average interest-earning assets was due to a 2% decline in average loans while average third party
liquid assets were up 2% over the half.
On a spot basis, lending declined $3.0 billion (down <0.5%) mostly due to lower offshore lending, down $3.0 billion
(28%)
1
following our decision to consolidate our Asian points of presence. Australian business, institutional and
personal lending were also lower (down 4%, 6% and 4% respectively). These declines were partly offset by higher
Australian mortgages (up $2.6 billion) and a $1.7 billion increase in New Zealand lending (in $A terms). All the
growth in New Zealand was in mortgages with a small decline in business lending.
In Australian mortgages, growth was concentrated in owner occupied lending which was up 3%, with first home
buyers making up around 13% of the flow while investment lending was down 3%.
1. The movement in offshore lending includes offshore lending balances that are treated as held for sale.

18WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
Review of Group operations
Customer deposits were lower, down 1%, consistent with lower lending and the active management of spreads.
Most of the decline was in offshore deposits in Asia, and in term deposits as customers preferred to keep their
funds liquid. Australian at call balances were higher, up 3%, with stronger growth in transaction and savings
deposits in the Consumer and Business divisions. New Zealand deposits were higher (up 3% in $A terms) in line
with the rise in New Zealand lending.
Margins were up 6 basis points over the six months to 2.09%, while the margin excluding Treasury and Markets
and notable items was 1.94%, up 3 basis points over the half. The higher margin was predominantly due to lower
funding costs, including from deposits and the use of the RBA’s Term Funding Facility (TFF). Improved margins
were partly offset by lower earnings on capital and from competition for new lending resulting in spreads below
the portfolio average.
Non-interest income
Non-interest income in First Half 2021 was up $465 million, or 25%. Excluding notable items, non-interest income
was $58 million higher, up 3%.
Notable items benefited non-interest income by $372 million in First Half 2021 compared to a $35 million reduction
in Second Half 2020. This benefit was due to the gain on the revaluation of Coinbase Inc. which added $546 million
to non-interest income. This gain was partly offset by increased provisions for customer refunds in Advice and the
write-down of some intangible items.
The 3% increase (excluding notable items) was predominantly due to:
• Higher insurance income from improved life insurance and lenders mortgage insurance contributions. These
increases were partly offset by higher general insurance claims associated with seasonal weather events;
• An FX translation loss ($55 million) on the exit of our Mumbai branch incurred in Second Half 2020 led to an
increase in Other income;
• Fee income increased from higher card fees as volumes rose and merchant fee waivers rolled off. These
increases were partly offset by a reduction in fees from our simplification program which reduced the number
of fees charged, and from higher ATM costs (contra revenue) following the sale of our offsite ATMs;
• Wealth income was lower from a further decline in fund margins as customers migrated to lower fee products
partly offset by higher funds balances from improving markets; and
• Markets related income was lower with lower trading income and lower customer income mostly related to
fixed income.
Expenses
Operating expenses were lower, down $559 million or 9% over the six months, with much of the decrease due to
notable items. Excluding notable items expenses were down $21 million.
In First Half 2021 notable items in expenses were $745 million, including further provisions for remediation costs,
litigation matters, the write-down of intangible assets and the cost of exiting our service agreement with IOOF.
Performance fees linked to Reinventure (our fintech venture capital funds) following the revaluation of Coinbase
were also higher. In Second Half 2020, notable items in expenses were $1,283 million including the final provision
for the AUSTRAC penalty, write-downs of intangibles and provisions for remediation costs.
Through the half, we increased employees by 1,898 FTE, mainly in response to higher mortgage volumes
and additional resources for risk and compliance programs. These increases were more than offset by lower
restructuring expenses, increased use of leave provisions, a decline in some COVID-19 expenses and timing of
project spend with more costs typically invested in the second half of the year. Costs of our distribution network
were also lower following the closure of branches in Australia and New Zealand (49 in First Half 2021) and the prior
sale of our offsite ATMs.
Asset quality and impairment charges
After initially deteriorating in 2020 from the economic impacts of COVID-19, credit quality metrics improved in
First Half 2021. The improvement has been due to the success of government stimulus measures, better labour
market conditions and the support provided to customers, including repayment deferrals.
Impaired assets to gross loans were 30 basis points at 31 March 2021 compared to 40 basis points at
30 September 2020. This was mostly due to a significant reduction in new impaired assets, with no new large
impaired assets (>$50 million) emerging during the half. Stressed exposures to total committed exposures
ended the six months at 1.60% compared to 1.91% at 30 September 2020. Delinquencies were also lower with
mortgage 90+ day delinquencies down 39 basis points to 1.11% and other consumer 90+ day delinquencies down
17 basis points to 1.92%.
The improvement in credit quality, along with a better economic outlook, has meant that some provisions booked
in Full Year 2020 were no longer required. This combined with the decline in lending led to an impairment benefit
in First Half 2021 of $372 million. This compared to a $940 million impairment charge in Second Half 2020 – in
aggregate, a $1.3 billion turnaround.
Total provision balances were lower over the half at $5.5 billion, down $655 million reflecting the improved
economic conditions and outlook. Our ratio of total provisions to credit risk weighted assets was 1.59% at
31 March 2021, down from 1.71% at 30 September 2020. Our ratio of impaired asset provisions to impaired assets
was 47%, up from 41% at September 2020.

19WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
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Tax
The Group booked a $1,651 million tax expense in First Half 2021 up 39% from Second Half 2020. The rise in tax
paid was less than the 85% increase in earnings before tax as the effective tax rate reduced to 31.8%, down from
42.4% in Second Half 2020. The tax rate in First Half 2021 was close to Australia’s 30% corporate tax rate, while
tax rates were higher in 2020 as the AUSTRAC penalty and some intangible asset write-downs were not tax
deductible.
ROE and EPS
The large increase in cash earnings contributed to a significant increase in return and per share metrics, these
increases were partly offset by increases in capital and a 2% rise in shares on issue. The cash earnings return on
equity was 10.2% in First Half 2021 up from 4.7% for Second Half 2020. Cash earnings per ordinary share were
97.1 cents in First Half 2021, more than doubling from 44.7 cents over the prior six months.
Excluding notable items, cash earnings per share were 105 cents, compared to 78 cents for Second Half 2020,
while the ROE was 11%.
Net tangible assets per share were $16.60 at 31 March 2021 up 6% over the past 6 months, due to the increase in
capital over the half and lower intangible items.
Capital
The Group’s capital position improved over the half with a CET1 ratio of 12.34% at 31 March 2021 up from 11.13% at
30 September 2020. The rise was due to the increase in cash earnings, a decline in risk weighted assets and lower
capital deductions. The increase was also due to the full year dividend reinvestment plan being fully underwritten.
The Group’s funding and liquidity ratios remained comfortably above regulatory minimums with the average
liquidity coverage ratio (LCR) for First Half 2021 of 124% and the net stable funding ratio (NSFR) ending the half at
123%.
Dividends
The Board determined an interim ordinary dividend of 58 cents per share, fully franked. This reflects a payout ratio
of 60% based on cash earnings and 56% excluding notable items.
Based on the share price at 31 March 2021, the dividend equates to a yield of 4.8%.
No discount will be applied to the market price used to determine the number of shares issued under the DRP.
The market price used to determine the number of shares issued under the DRP will be set over the 10 trading
days commencing 19 May 2021. Westpac plans to neutralise the impact of the DRP and intends to arrange for the
purchase of shares by a third party to satisfy the DRP for the 2021 interim dividend.
The 58 cent ordinary dividend is expected to be paid on 25 June 2021. After allowing for the 2021 interim ordinary
dividend, the Group’s adjusted franking account balance was $3,560 million.
Bank Levy
Westpac paid the Government’s Bank Levy of $195 million in First Half 2021. The Bank Levy in First Half 2021 was
equal to 3.9% of cash earnings and is equivalent to 4 cents per share. The Bank Levy is included in net interest
income where it reduced net interest margin by 5 basis points. In aggregate, taxes paid along with the Bank Levy
give Westpac an adjusted effective tax rate of 34.3%.
Financial performance First Half 2021 – First Half 2020
Cash earnings of $3,537 million were up $2,544 million or 256% over First Half 2020. The increase was principally
due to a $2.6 billion positive movement in impairment charges ($1.8 billion after tax) and a lower notable items
impact ($1.1 billion after tax). Excluding notable items, cash earnings were $3,819 million, up $1,427 million, or 60%.
Notable items for First Half 2021 reduced cash earnings by $282 million and included additional remediation and
litigation costs, write-downs of intangible assets, cost of exiting the agreement with IOOF, and losses linked to the
exit of Westpac Pacific. These costs were partly offset by a net gain on our investment in Coinbase of $288 million.
In First Half 2020 notable items reduced cash earnings by $1,399 million which included provisions for the
AUSTRAC penalty and provisions for refunds, payments, costs and litigation.
Net interest income was 2% lower over the prior corresponding period, with net interest margins 4 basis points
lower. Average interest-earning assets were relatively flat over the prior corresponding period with lower lending
offset by a rise in liquid assets. Total spot lending was 4% down over the year (down $29.6 billion) with the decline
due to:
•Lower Australian lending split across mortgages (down $2.1 billion), business and institutional lending
(down $12.4 billion) and other personal lending (down $3.4 billion);
•Lower NZ lending in $A terms. In $NZ, New Zealand lending was up $3.5 billion or 4% from growth in
mortgages; and
•Reduced offshore lending mostly from a reduction in trade finance in Asia following our decision to consolidate
our Asian points of presence.

20WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
Review of Group operations
Customer deposits increased $6.5 billion, lifting the customer deposit to loan ratio to 79.8%. Most of the deposit
increase was in at call and non-interest bearing which increased $43.3 billion and $7.0 billion respectively. These
increases were partly offset by lower term deposits.
Net interest margins were 4 basis points lower over the prior corresponding period with the margin, excluding
Treasury and Markets and notable items, down 10 basis points. The decline was due to lower interest rates, loan
competition and the mix impact from an increase in low yielding liquid assets. These decreases were partly offset
by lower wholesale funding costs, including the cost of the TFF.
Non-interest income was up 39% over the prior corresponding period and was 3% higher excluding notable items.
The increase excluding notable items was mainly due to higher insurance income across Life, General and Lenders
Mortgage insurance. These gains were partly offset by lower wealth income from margin contraction and from
lower trading income, including from the exit of energy trading.
Expenses were down 3% over the prior corresponding period due principally to lower notable items. Excluding
notable items, expenses were up $332 million or 7%. The increase (excluding notable items) was mostly due to
higher risk and compliance spending (including more staff), and employing more temporary and permanent
employees to meet increased customer demands. These increases were partly offset by a reduction in the size of
the distribution network.
Impairment charges were a benefit of $372 million in First Half 2021 compared to a cost of $2,238 million in
First Half 2020, a $2.6 billion improvement. Individually assessed provisions were lower, mostly from a decline in
new impaired assets and from collectively assessed provisions no longer required, consistent with the better asset
quality and improving economic outlook.
Divisional performance summary
The performance of each division between First Half 2021 compared to Second Half 2020 is discussed below. For a
description of each division see Section 3.
Consumer
Cash earnings of $1,592 million were $318 million (or 25%) higher than Second Half 2020, mostly from a
$679 million turnaround in impairment charges ($476 million cash earnings impact). Notable items were $57 million
higher over the prior half. Net interest income was down 2% with a 1% increase in lending more than offset by
a 2 basis point contraction in net interest margin. Mortgage lending increased $5.5 billion, predominantly in
owner occupied while investor lending decreased. The contraction in net interest margin was mostly related to
elevated competition in mortgages, and portfolio mix impacts as customers shifted to lower spread fixed rate
products, partly offset by lower funding costs and active management of deposit spreads. Non-interest income
decreased 2%, mostly due to reduced revenue following the sale of our offsite ATMs and from the removal of
certain fees as part of our simplification strategy. Expenses were 6% up from higher notable items, spending on risk
and compliance programs and employing more resources in mortgage processing. The turnaround in impairment
charges was principally due to the improved economic outlook.
Business
Cash earnings of $920 million were $664 million higher than Second Half 2020. Most of the improvement was due
to an $803 million turnaround in impairment charges (moving from a charge to a benefit). Lower notable items
(down $125 million) also contributed to the increase. Net interest income was up 3% although excluding notable
items was down $44 million or 2%. The decline in net interest income (excluding notable items) was due to a
4% reduction in lending, partly offset by a 7 basis point expansion in margin. The expansion in net interest margin
was mostly from a deposit mix shift to transaction and other at call accounts, along with term deposit spread
management. Non-interest income was up 10% from the expiration of waivers on merchant fees introduced as
part of COVID-19 support, as well as increased activity lifting card spending. Expenses (excluding notable items)
increased $6 million or 1%, principally from increased risk, regulatory and compliance spend. The impairment
benefit of $129 million was mostly due to collectively assessed provisions no longer required due to improving
asset quality and a better economic outlook. Stressed assets to TCE decreased 10 basis points to 4.60% with the
fall due to lower stress within the commercial portfolio and lower mortgage delinquencies.
Westpac Institutional Bank
Cash earnings of $230 million were $45 million or 24% higher than Second Half 2020, primarily from a $103 million
improvement in impairment charges. Operating income was 8% lower, from lower lending and a decline in
financial markets revenue, partly offset by a 4 basis point expansion in net interest margin. Most of the decline
in lending was in offshore (down $2.8 billion), reflecting the consolidation of our Asian operations. Non-interest
income was lower (down $44 million) from lower trading income, primarily in fixed income trading. Customer
markets income was also lower with reduced demand across all segments. These decreases were partly offset by
derivative valuation adjustments and higher lending fees. Expenses were flat with decreased restructuring costs
and lower professional services expenses, partly offset by increased software amortisation and higher notable
items. An impairment charge of $8 million was recorded in First Half 2021, 93% lower than Second Half 2020 from
a 47 basis point decrease in stressed exposures to TCE to 0.56% and lower collectively assessed provisions from an
improvement in the economic outlook.

21WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
1
2
3
4
5
6
7
Review of Group operations
Westpac New Zealand
Cash earnings of NZ$583 million were NZ$229 million (or 65%) higher than Second Half 2020. Net interest
income was up 12%, from a 3% increase in lending and a 17 basis point expansion in net interest margin. Lending
was concentrated in mortgages which increased 6%, partly offset by a decline in business lending as institutional
customers continued to reduce gearing. The higher net interest margin was primarily due to higher deposit
spreads from repricing and higher asset spreads. Non-interest income was up 9%. Excluding the NZ$8 million
gain on sale of Wealth Advisory, non-interest income was up 4%, with higher cards related revenue partly offset
by lower insurance income. Expenses were up 3% from increased technology spending and higher risk, regulatory
and compliance costs, including implementing the RBNZ’s BS11 outsourcing requirements. An impairment
benefit of $99 million was recorded (compared to an impairment charge of $109 million in Second Half 2020) as
stressed exposures to TCE decreased 3 basis points to 1.56%, and mortgage 90+ day delinquencies decreased
19 basis points to 0.33%. The impairment benefit also reflected lower collectively assessed provisions from the
improved economic outlook.
Following Reserve Bank of New Zealand (RBNZ) concerns around risk management and the management of
liquidity, Westpac New Zealand Limited (WNZL) has been required to commission two independent reports under
Section 95 of the RBNZ Act 1989. Further information in Section 4.1 Significant Developments.
Specialist Businesses
Cash earnings were $134 million in First Half 2021 compared to a loss of $599 million in Second Half 2020, a
$733 million improvement. Most of the improvement was due to a $523 million reduction in notable items while the
contribution across the major business units (excluding notable items) was $210 million higher. Excluding notable
items Superannuation, Investments and Platforms were up $67 million, Insurance was up $16 million while Banking
was $127 million higher. Results of the major business lines (excluding notable items) included:
• Superannuation, Investments and Platforms cash earnings were $105 million, compared to $38 million in
Second Half 2020. The rise was due to a higher contribution from platforms and superannuation with markets
improving through the half. This was partly offset by lower margins and no contribution from Pendal following
the sale of our remaining holding in Second Half 2020.
• Insurance recorded cash earnings of $165 million for First Half 2021, compared to $149 million in
Second Half 2020. The rise was due to improved contribution from Life Insurance and Lenders Mortgage
Insurance. These gains were partly offset by higher general insurance claims, consistent with more major
weather events occurring in the first half of the year.
• Banking cash earnings (Auto, Vendor Finance and Westpac Pacific) recorded cash earnings of $161 million,
compared to $34 million in Second Half 2020. Most of the increase was due to a turnaround in impairment
charges (from a charge to a benefit) from the decline in the Auto book and improved asset quality.
Group Businesses
Cash earnings of $116 million were 31% lower than Second Half 2020 cash earnings of $168 million. The contribution
from Treasury was little changed over the half, with cash earnings of $299 million in First Half 2021 compared
to $301 million in Second Half 2020. Notable items benefited earnings in First Half 2021 by $102 million, with
net gains from a revaluation of our holdings in Coinbase partly offset by additional provisions required for
Advice remediation. This compared to a reduction to earnings in Second Half 2020 of $277 million mostly due
to AUSTRAC related provisions. Excluding notable items, cash earnings were $14 million in First Half 2021 down
from $445 million. Most of the decline was due to an impairment benefit in Second Half 2020 compared to a
small charge ($1 million) in First Half 2021. The provision benefit in Second Half 2020 was due to the allocation of
centrally held provisions to divisions.

22WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
Review of Group operations
2.2 Review of earnings
2.2.1 Net interest income
1

Half YearHalf YearHalf Year% Mov’t
MarchSeptMarchMar 21 -Mar 21 -
202120202020Sept 20Mar 20
Net interest Income ($m)
Net interest income excluding Treasury & Markets 7,942 7,894 8,155 1 (3)
Treasury net interest income
2
482 459 444 5 9
Markets net interest income 45 67 67 (33)(33)
Net interest income 8,469 8,420 8,666 1 (2)
Add back notable items(71) 37 106 largelarge
Net interest income excluding notable items 8,398 8,457 8,772 (1)(4)
Average interest-earning assets ($m)
Loans
3
648,767 664,871 675,273 (2)(4)
Third party liquid assets
3,4
138,245 135,441 115,771 2 19
Other interest-earning assets
3
25,938 30,153 21,927 (14) 18
Average interest-earning assets 812,950 830,465 812,971 (2)-
Net interest margin (%)
Group net interest margin 2.09% 2.03% 2.13% 6 bps(4 bps)
Group net interest margin excluding Treasury & Markets
5
1.96% 1.90% 2.01% 6 bps(5 bps)
Excluding notable items (%)
Group net interest margin 2.07% 2.04% 2.16% 3 bps(9 bps)
Group net interest margin excluding Treasury & Markets
5
1.94% 1.91% 2.04% 3 bps(10 bps)
First Half 2021 – Second Half 2020
Net interest income increased $49 million or 1% compared to Second Half 2020. Excluding notable items, net
interest income decreased $59 million against Second Half 2020. Key features include:
• Group net interest margin excluding Treasury and Markets increased due to higher deposit spreads, a change
in deposit mix to at call products from term deposits, and lower funding costs. This was partly offset by
competition for lending and lower interest rates impacting income earned on hedged deposits and capital.
Refer to section 2.2.4 for further details on net interest margin;
• Average interest earning assets were lower due to reductions in offshore institutional lending and Australian
consumer and business lending. This was partly offset by an increase in New Zealand mortgages. Other interest
earning assets decreased mainly due to a reduction in reverse repurchase agreements and lower collateral
balances.
First Half 2021 – First Half 2020
Net interest income decreased $197 million or 2% compared to First Half 2020. Excluding notable items, net interest
income decreased $374 million against First Half 2020. Key features include:
• Group net interest margin excluding Treasury and Markets decreased due to lower interest rates impacting
customer deposit spreads and income earned on hedged capital, lower lending spreads from competition and
the increase in third party liquid assets. This was partly offset by a change in deposit mix to at call products
from term deposits, and lower funding costs. Refer to section 2.2.4 for further details on net interest margin;
• Average interest earning assets were broadly flat compared to First Half 2020. Reductions in offshore
institutional lending, Australian variable rate mortgages and business lending were offset by increased holdings
of third party liquid assets and higher New Zealand lending. Other interest earning assets increased due to the
deployment of excess liquidity to assets under reverse repurchase agreements, and higher collateral balances.
1. Refer to Section 4, Note 3 for reported results breakdown. Refer to Section 5, Note 3 for cash earnings results breakdown. As discussed
in Section 1.3, commentary is reflected on a cash earnings basis.
2. Treasury net interest income excludes capital benefit.
3. Includes assets held for sale.
4. Refer to Glossary for definition.
5 Calculated by dividing net interest income excluding Treasury and Markets by total average interest-earning assets.
Review of Group
operations

23WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
1
2
3
4
5
6
7
Review of Group operations
2.2.2 Loans
As atAs atAs at% Mov’t
31 March30 Sept31 MarchMar 21 -Mar 21 -
$m202120202020Sept 20Mar 20
Australia 598,663 600,780 616,328 - (3)
Housing 443,557 440,933 445,663 1 -
Personal 16,458 17,081 19,854 (4)(17)
Business 142,965 147,584 155,322 (3)(8)
Provisions(4,317)(4,818)(4,511)(10)(4)
New Zealand (A$) 83,486 81,788 85,176 2 (2)
New Zealand (NZ$) 90,923 88,353 87,425 3 4
Housing 58,297 55,231 53,411 6 9
Personal 1,409 1,469 1,652 (4)(15)
Business 31,713 32,261 32,867 (2)(4)
Provisions(496)(608)(505)(18)(2)
Other overseas (A$) 6,069 10,491 18,174 (42)(67)
Total loans 688,218 693,059 719,678 (1)(4)
Loans held for sale
1
1,819 - - - -
Total loans (including held for sale) 690,037 693,059 719,678 - (4)
First Half 2021 – Second Half 2020
Total loans (including held for sale loans) decreased $3.0 billion compared to September 2020. Excluding foreign currency
translation impacts, total loans were $1.7 billion lower.
Key features of total loan movements were:
• Australian housing loans increased $2.6 billion supported by targeted campaigns. The growth was in owner
occupied lending, up $8.8 billion or 3% partly offset by lower investor property lending, down $5.2 billion or 3%;
• Australian personal lending was lower with most of the decline across personal loans and auto lending. This was
consistent with market trends in personal lending;
• Australian business lending contracted due to lower new lending and increased repayments.
• New Zealand lending increased in NZ$ terms with higher housing lending, supported by the continued strength
in the housing market, partly offset by lower institutional lending;
• Overseas lending decreased primarily in Asia, as the Group commenced exiting some operations in Asia. Loans
of $1.4 billion in Westpac Pacific were reclassified into held for sale in First Half 2021; and
• Provisions decreased from lower collectively assessed provisions due to improved asset quality and a better
economic outlook.
First Half 2021 – First Half 2020
Total loans (including held for sale loans) decreased $29.6 billion or 4% compared to March 2020. Excluding foreign
currency translation impacts, total loans were $22.4 billion lower or 3%.
Key features of total loan movements were:
• Australian housing loans declined mostly from accelerated payments exceeding new lending. The decline was in
investor property lending, down $10.8 billion or 6% combined with a $3.0 billion or 23% decline in line of credit
facilities. The decline was partly offset by higher owner occupied lending up $11.2 billion or 4%;
• Australian personal lending decreased across each of the major categories: credit cards, personal loans and
auto lending. This was consistent with market trends in unsecured lending and auto finance with customers
reducing debt and using other forms of finance;
• Australian business lending contracted as institutional customers repaid facilities drawn down in First Half 2020
in response to COVID-19. This combined with lower demand for investment, working capital and higher
repayments;
• New Zealand lending was higher primarily in housing, supported by rising demand for housing credit and
increased prices. These increases were partly offset by lower institutional lending and lower personal loan and
card balances; and
• Overseas lending decreased primarily in trade finance in Asia, as the Group commenced exiting some
operations in Asia. Loans of $1.4 billion in Westpac Pacific were reclassified into held for sale in First Half 2021.
1. Loans held for sale included Westpac Pacific ($1.4 billion) and Vendor Finance ($0.4 billion) and prior to March 2021 were included in
Other overseas and Australian business lending, respectively.

24WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
Review of Group operations
2.2.3 Deposits and other borrowings
1
As atAs atAs at% Mov’t
31 March30 Sept31 MarchMar 21 -Mar 21 -
$m202120202020Sept 20Mar 20
Customer deposits
Australia 475,155 478,884 460,561 (1) 3
At call 315,218 304,761 274,071 3 15
Term 110,470 125,820 141,933 (12)(22)
Non-interest bearing 49,467 48,303 44,557 2 11
New Zealand (A$) 67,999 65,700 67,273 3 1
New Zealand (NZ$) 74,056 70,974 69,050 4 7
At call 31,608 28,411 26,504 11 19
Term 28,739 30,992 32,768 (7)(12)
Non-interest bearing 13,709 11,571 9,778 18 40
Other overseas (A$) 5,095 10,869 15,967 (53)(68)
Total customer deposits 548,249 555,453 543,801 (1) 1
Customer deposits held for sale
2
2,088 - - - -
Total customer deposits (including held for sale) 550,337 555,453 543,801 (1) 1
Certificates of deposit 37,152 35,678 39,119 4 (5)
Australia 26,273 25,647 21,029 2 25
New Zealand (A$) 3,020 2,773 3,452 9 (13)
Other overseas (A$) 7,859 7,258 14,638 8 (46)
Total deposits and other borrowings (including held for sale) 587,489 591,131 582,920 (1) 1
First Half 2021 – Second Half 2020
Total customer deposits (including held for sale deposits) decreased $5.1 billion or 1% compared to
September 2020. Excluding foreign currency translation impacts, customer deposits decreased $3.6 billion or 1%.
Key features of total customer deposits movements were:
• Australian customer deposits declined mostly from lower institutional at call balances as customers sought
higher yields. Consumer and Business deposits were both up 2% with growth across savings and transaction
accounts. The mix of deposits has continued to shift with term deposits lower and at call deposits rising. Non-
interest bearing deposits were higher mostly due to an increase in mortgage offset balances, up $1.5 billion;
• New Zealand customer deposits increased in NZ$ terms across both consumers and businesses with term
deposits declining and at call increasing; and
• Other overseas deposits decreased primarily in Asia, as the Group commenced exiting some operations in Asia.
Deposits of $2.1 billion in Westpac Pacific were reclassified into held for sale in First Half 2021.
First Half 2021 – First Half 2020
Total customer deposits (including held for sale deposits) increased $6.5 billion or 1% compared to March 2020.
Excluding foreign currency translation impacts, customer deposits increased $13.9 billion or 3%.
Key features of total customer deposits growth were:
• Australian customer deposits grew with the mix shifting from term deposits to at call products, particularly
transaction accounts, up 20%. Non-interest bearing deposits grew $4.9 billion mainly from higher mortgage
offset balances;
• New Zealand customer deposits increased across both households and businesses with term deposits declining
and at call increasing; and
• Other overseas deposits decreased primarily in Asia, as the Group commenced exiting some operations in Asia.
Deposits of $2.1 billion held in Westpac Pacific were reclassified into held for sale in First Half 2021.
1. Non-interest bearing relates to instruments which do not carry a rate of interest.
2. Customer deposits held for sale included Westpac Pacific ($2.1 billion) which were included in Other overseas in prior periods.

25WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
1
2
3
4
5
6
7
Review of Group operations
2.2.4 Net interest margin
Group net interest margin movement (%)
First Half 2021 – Second Half 2020
2H20
Notable
items
2H20 ex
notable
items
Funding
Loans
Customer
deposits
Capital
&
other
Liquidity
1H21 ex
notable
items
Treasury
&
Markets
1H21Notable
items
2.03%
0.13%
1.90%
0.13%
0.13%
1.91%1.94%
1bp
2bps
2.04%
(4bps)
2bps
0bp
6bps
(2bps)
1bp
2.07%
0.13%
1.96%
2.09%
Group margin up 6bps
Treasury & Markets
Group Margin ex Treasury & Markets
Excluding Treasury & Markets and notable items up 3bps
First Half 2021 – Second Half 2020
Group net interest margin of 2.09% increased 6 basis points from Second Half 2020. In First Half 2021, notable
items were a $71 million benefit from the release of provisions for estimated customer refunds and payments no
longer required, whilst Second Half 2020 notable items were a cost of $37 million.
• Group net interest margin excluding Treasury and Markets, and notable items increased 3 basis points to 1.94%
from:
–4 basis point decrease from loan spreads primarily due to increased competition for mortgages driving
lower rates on new lending, particularly fixed rate mortgages, along with retention pricing, and a change in
portfolio mix with customers reducing their unsecured personal debt;
–6 basis point increase from higher deposit spreads, primarily due to the repricing of deposits and changes in
deposit mix with customers moving to at call products from term deposits. This was partly offset by the low
interest rate environment impacting low rate deposits and reduced earnings on hedged deposit balances;
–2 basis point increase from lower wholesale funding costs;
–2 basis point decrease in capital and other due to lower income earned on hedged capital balances; and
–1 basis point increase from improved yields on liquid assets.

26WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
Review of Group operations
Group net interest margin movement (%)
First Half 2021 – First Half 2020
Excluding Treasury & Markets and notable items down 10bps
1H20
Notable
items
1H20 ex
notable
items
FundingLoansCustomer
deposits
Capital
&
other
Liquidity
1H21 ex
notable
items
Treasury
&
Markets
1H21Notable
items
2.13%
0.12%
2.01%
0.12%
0.13%
2.04%
1.94%
3bps
2bps
2.16%
0bp
6bps
1bp
(3bps)
(7bps)
(6bps)
2.07%
0.13%
1.96%
2.09%
Group margin down 4bps
Treasury & Markets
Group Margin ex Treasury & Markets
0.13%
0.13%
First Half 2021 – First Half 2020
Group net interest margin of 2.09% decreased 4 basis points from First Half 2020. Excluding the impact of notable
items relating to provisions for estimated customer refunds and payments, Group net interest margin decreased
9 basis points.
• Group net interest margin excluding Treasury and Markets, and notable items decreased 10 basis points to 1.94%
from:
–Loan spreads were unchanged, with lower funding costs offset by increased competition for mortgages
driving lower rates on new lending, particularly fixed rate mortgages, along with retention pricing, and a
change in portfolio mix with customers reducing their unsecured personal debt;
–3 basis point decrease from the low interest rate environment impacting customer deposit spreads and
income earned on hedged deposit balances. This was partly offset by deposit repricing and changes in
deposit mix with customers moving to at call products from term deposits;
–6 basis point increase from lower wholesale funding costs;
–7 basis point decrease from capital and other primarily due to lower income earned on hedged capital
balances; and
–6 basis point decrease from higher holdings of third party liquid assets.

27WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
1

2
3
4
5
6
7
Review of Group operations
2.2.5 Non-interest income
1

Half YearHalf YearHalf Year% Mov’t
MarchSeptMarchMar 21 -Mar 21 -
$m202120202020Sept 20Mar 20
Net fee income 700 837 755 (16)(7)
Net wealth management and insurance income 595 278 481 114 24
Trading income 453 499 429 (9) 6
Other income 582 251 10 132 large
Total non-interest income 2,330 1,865 1,675 25 39
Add back notable items(372) 35 228 largelarge
Total non-interest income excluding notable items 1,958 1,900 1,903 3 3
First Half 2021 – Second Half 2020
Non-interest income of $2,330 million increased $465 million or 25% compared to Second Half 2020. Notable
items in First Half 2021 increased non-interest income by $372 million compared to a decrease of $35 million
in Second Half 2020. Excluding notable items, non-interest income increased $58 million or 3% compared to
Second Half 2020.
Net fee income
Net fee income decreased by $137 million or 16% compared to Second Half 2020. Notable items in First Half 2021
decreased fee income by $104 million compared to an increase of $59 million in Second Half 2020. Excluding
notable items, net fee income increased $26 million or 3% due to:
• Higher credit cards income as transaction volumes recovered from the initial COVID-19 impact and a seasonal
increase in First Half 2021 and higher merchant fees as fee waivers for COVID-19 support rolled off;
• Higher corporate and institutional commitment fee income due to lower utilisation of credit facilities; partly
offset by
• Increased ATM usage costs following the sale of our offsite ATMs to a third party in Second Half 2020; and
• Lower account and transaction fees from simplification initiatives.
Net wealth management and insurance income
Net wealth management and insurance income increased $317 million or 114% compared to Second Half 2020.
Notable items in First Half 2021 decreased income by $88 million compared to a decrease of $397 million in
Second Half 2020. Excluding notable items, net wealth management and insurance income increased $8 million or
1%, due to:
• Higher life insurance income from a favourable movement in the valuation of life policy liabilities which was
reduced by a change in actuarial assumptions; partly offset by
• Lower general insurance income ($62 million) primarily due to higher severe weather-related claims in
First Half 2021 compared to Second Half 2020.
Trading income
Trading income decreased $46 million or 9% due to:
• Lower trading income ($74 million) from fixed income and foreign exchange;
• Lower customer sales income ($8 million) in fixed income from lower customer demand; partly offset by
• Positive movement in derivative valuation adjustments ($34 million).
Other income
Other income increased $331 million primarily due to a notable gain in First Half 2021 arising from a revaluation
related to the investment in Coinbase. Excluding notable items, other income increased by $70 million
predominantly due to foreign currency translation losses incurred in Second Half 2020 following the closure of the
Mumbai branch.
1. Refer to Section 4, Note 4 for reported results breakdown. Refer to Section 5, Note 4 for cash earnings results breakdown. As discussed
in Section 1.3, commentary is on a cash earnings basis.
Review of Group
operations

28WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
Review of Group operations
First Half 2021 – First Half 2020
Non-interest income of $2,330 million increased $655 million or 39% compared to First Half 2020. Notable
items in First Half 2021 increased non-interest income by $372 million compared to a decrease of $228 million in
First Half 2020. Excluding notable items, non-interest income was $55 million higher compared to First Half 2020.
Net fee income
Net fee income decreased by $55 million or 7% compared to First Half 2020. Notable items in First Half 2021
decreased income by $104 million compared to a decrease of $147 million in First Half 2020. Excluding notable
items, net fee income decreased $98 million or 11% due to the impacts of COVID-19 including a decline in
international card volumes and lower interchange fees. ATM usage costs increased following the sale of our offsite
ATMs to a third party in Second Half 2020 whilst the removal of certain account and transaction fees as part of our
simplification initiatives also contributed to this decline.
Net wealth management and insurance income
Net wealth management and insurance income increased $114 million or 24% compared to First Half 2020. Notable
items in First Half 2021 decreased income by $88 million compared to a decrease of $81 million in First Half 2020.
Excluding notable items, net wealth management and insurance income increased $121 million or 22% due to:
• Higher life insurance income due to a favourable movement in the valuation of life policy liabilities partly offset
by a change in actuarial assumptions;
• Higher general insurance income ($58 million) primarily due to lower severe weather-related claims in
First Half 2021 compared to First Half 2020;
• Higher lenders mortgage insurance income ($31 million) from release of loss provisions due to lower than
expected claims and higher premium income; partly offset by
• Lower superannuation income ($17 million) due to margin compression.
Trading income
Trading income increased $24 million or 6% due to:
• Positive movement in derivative valuation adjustments ($149 million) with First Half 2020 impacted by widening
credit spreads resulting from COVID-19; partly offset by
• Lower trading income ($86 million) due to the closure of the Energy desk and lower fixed income trading; and
• Lower customer sales income ($39 million) from foreign exchange.
Other income
Other income increased $572 million due to a notable gain in First Half 2021 arising from a revaluation related to
the investment in Coinbase. Excluding notable items, other income increased by $8 million primarily due to gains
on other disposals.
2.2.6 Group funds
As atAs at% Mov’tAs at% Mov’t
31 MarchNetOther30 SeptMar 21 -31 MarchMar 21 -
$bn2021InflowsOutflowsflowsMov’t2020Sept 202020Mar 20
Superannuation 42.3 1.9 (1.9)- 4.1 38.2 11 35.3 20
Platforms 128.2 11.8 (11.7) 0.1 10.3 117.8 9 109.0 18
Packaged Funds 45.4 2.8 (2.5) 0.3 4.1 41.0 11 38.8 17
Other
1
- - - - - - - 2.8 (100)
Total Australia funds 215.9 16.5 (16.1) 0.4 18.5 197.0 10 185.9 16
Total NZ funds (A$) 10.9 2.0 (2.9)(0.9) 0.5 11.3 (4) 10.6 3
Total Group funds 226.8 18.5 (19.0)(0.5) 19.0 208.3 9 196.5 15
Total NZ funds (NZ$) 11.9 2.2 (3.1)(0.9) 0.6 12.2 (2) 10.9 9
Group funds comprises non-superannuation and superannuation regulated products provided to Australian
and New Zealand customers through advised and direct channels. This includes wealth products distributed to
Australian customers by the Specialist Businesses and Business Bank divisions, and to New Zealand customers
through the BT brand operating in Westpac New Zealand.
Group funds increased by $18.5 billion (or 9%) over the First Half 2021, primarily driven by market movements.
Inflows of $18.5 billion were offset by outflows of $19 billion.
1. Other included investable capital and other amounts related to subsidiaries, which are not related to funds and therefore were removed
in September 2020.

29WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
1

2
3
4
5
6
7
Review of Group operations
2.2.7 Markets related income
1
Half YearHalf YearHalf Year% Mov’t
MarchSeptMarchMar 21 -Mar 21 -
$m202120202020Sept 20Mar 20
Net interest income 45 67 67 (33)(33)
Non-interest income 418 460 434 (9)(4)
Total Markets income 463 527 501 (12)(8)
Customer income 335 363 420 (8)(20)
Non-customer income 75 148 174 (49)(57)
Derivatives valuation adjustments 53 16 (93)largelarge
Total Markets income 463 527 501 (12)(8)
Markets income comprises sales and risk management revenue derived from the creation, pricing and distribution
of risk management products to the Group’s consumer, business, corporate and institutional customers. Dedicated
relationship specialists provide product solutions to these customers to help manage their interest rate, foreign
exchange, commodity, credit and structured products risk exposures.
First Half 2021 – Second Half 2020
Total markets income decreased by $64 million, or 12%, compared to Second Half 2020 primarily due to lower fixed
income. This was partly offset by higher contribution from derivative valuation adjustments, up $37 million.
Customer income reduced $28 million compared to Second Half 2020 primarily due to lower fixed income
contribution.
Non-customer income reduced $73 million compared to Second Half 2020, primarily due to lower fixed income
trading.
First Half 2021 – First Half 2020
Total markets income decreased by $38 million, or 8%, compared to First Half 2020, primarily due to lower
customer and non-customer income. This was partly offset by derivative valuation adjustments increasing
$146 million from narrowing of credit spreads.
Customer income reduced $85 million compared to First Half 2020, primarily due to lower foreign exchange sales.
Non-customer income reduced $99 million compared to First Half 2020, due to the exit of energy desk and lower
foreign exchange income.
Markets Value at Risk (VaR)
2
$mAverageHighLow
Half Year 31 March 2021 23.5 34.7 4.6
Half Year 30 September 2020 24.1 32.8 16.7
Half Year 31 March 2020 8.1 36.7 4.0
The Components of Markets VaR are as follows:
AverageHalf YearHalf YearHalf Year
MarchSeptMarch
$m202120202020
Interest rate risk 8.0 9.4 4.0
Foreign exchange risk 1.6 3.5 1.4
Equity risk 0.4 0.3 0.1
Commodity risk
3
1.5 1.6 2.2
Credit and other market risks
4
16.9 19.2 6.2
Diversification benefit(4.9)(9.9)(5.8)
Net market risk 23.5 24.1 8.1
1. Markets income includes WIB Markets, Business division, Consumer division and Westpac New Zealand markets.
2. The daily VaR presented above reflects a Market’s view of VaR. VaR measures the potential for loss using a history of price volatility.
Second Half 2020 and First Half 2020 have been restated to align with First Half 2021, to include VaR on the banking book.
3. Includes electricity risk.
4. Includes pre-payment risk and credit spread risk (exposures to generic credit rating bonds).

30WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
Review of Group operations
2.2.8 Operating expenses
1

Half YearHalf YearHalf Year% Mov’t
MarchSeptMarchMar 21 -Mar 21 -
$m202120202020Sept 20Mar 20
Staff expenses(2,771)(2,571)(2,444) 8 13
Occupancy expenses(543)(484)(493) 12 10
Technology expenses(1,405)(1,366)(1,277) 3 10
Other expenses(1,262)(2,119)(1,946)(40)(35)
Total operating expenses(5,981)(6,540)(6,160)(9)(3)
Add back notable items 745 1,283 1,256 (42)(41)
Total operating expenses excluding notable items(5,236)(5,257)(4,904)- 7
Full Time Equivalent (FTE) employees
As atAs atAs at% Mov’t
31 March30 Sept31 MarchMar 21 -Mar 21 -
Number of FTE202120202020Sept 20Mar 20
Permanent employees 33,607 32,367 30,913 4 9
Temporary employees 5,140 4,482 3,286 15 56
FTE 38,747 36,849 34,199 5 13
Average FTE
2
37,714 36,117 33,433 4 13
First Half 2021 – Second Half 2020
Operating expenses were $559 million or 9% lower compared to Second Half 2020 with the majority of the decline
due to notable items.
Excluding notable items, operating expenses were $21 million lower. Through the half, we added 1,898 FTE mainly in
response to higher mortgage volumes and additional resources for risk and compliance programs. These increases
and the lower capitalisation of project spend from changes to our software capitalisation policy were more than
offset by lower restructuring expenses, a decline in some COVID-19 expenses, productivity benefits, and the timing
of project spend with more costs typically invested in the second half of the year.
Staff expenses increased $200 million or 8%. Excluding notable items, staff expenses were $182 million or 7%
higher from:
• Higher salaries from increased operational requirements associated with mortgage processing including
insourcing, additional risk and compliance resources, lower capitalisation of project spend, and increased short-
term incentives;
• Partly offset by lower restructuring expenses and greater utilisation of leave provisions as staff took more leave
over the half.
Occupancy expenses were $59 million or 12% higher. Excluding notable items, occupancy expenses were
$23 million or 5% lower mostly from lower distribution network costs including:
• Prior sale of offsite ATMs; and
• Branch closures.
Technology expenses were $39 million or 3% higher. Excluding notable items, technology expenses were
$39 million or 3% lower from decreased amortisation.
Other expenses decreased $857 million or 40%. Excluding notable items, other expenses decreased $141 million or
14% from:
• Lower COVID-19 related expenses linked to protecting customers and staff;
• Lower third-party spend as we insourced certain activities;
• A revaluation of fintech investments; and
• Timing of project spend which was partly offset by costs relating to the Customer Outcomes and Risk
Excellence (CORE) program.
First Half 2021 – First Half 2020
Operating expenses were $179 million or 3% lower compared to First Half 2020. Excluding notable items, operating
expenses were $332 million or 7% higher. Most of the increase was from adding 4,548 FTE over the year in
response to higher mortgage volumes, additional resources for risk and compliance programs and COVID-19
related activities. This increase and the lower capitalisation of project spend from changes to our software
capitalisation policy were partly offset by productivity benefits.
1. Refer to Section 4, Note 5 for reported results breakdown. Refer to Section 5, Note 5 for cash earnings breakdown. As discussed in
Section 1.3, commentary is on a cash earnings basis.
2. Averages are based on a six month period.
Review of Group
operations

31WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
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2
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Review of Group operations
Staff expenses increased $327 million or 13%. Excluding notable items, staff expenses were $305 million or
13% higher from the increase in employees over the year and lower capitalisation of project spend.
Occupancy expenses were $50 million or 10% higher. Excluding notable items, occupancy expenses were
$32 million or 6% lower from lower distribution network costs including:
• Prior sale of offsite ATMs; and
• Branch closures.
Technology expenses were $128 million or 10% higher. Excluding notable items, technology expenses were
$19 million or 2% higher from software licensing costs to support increased FTE.
Other expenses decreased $684 million or 35%. Excluding notable items, other expenses increased $40 million or
5% from:
• Costs relating to the CORE program; and
• Higher COVID-19 expenses;
• Partly offset by a revaluation of fintech investments.
Investment spend
Half YearHalf YearHalf Year% Mov’t
MarchSeptMarchMar 21 -Mar 21 -
$m202120202020Sept 20Mar 20
Expensed 417 384 296 9 41
Capitalised software and fixed assets 354 608 432 (42)(18)
Total 771 992 728 (22) 6
Growth and productivity 264 368 296 (28)(11)
Regulatory change 401 470 336 (15) 19
Other technology 106 154 96 (31) 10
Total 771 992 728 (22) 6
The Group invested $771 million in First Half 2021, with 34% directed to growth and productivity initiatives, 52% to
risk and compliance, and 14% to other technology programs.
Lower investment spend in First Half 2021 compared to Second Half 2020 was principally due to the completion of
some transformation initiatives though the period. Compared to First Half 2020 investment spend was 6% higher
with most of the increase directed to risk and compliance initiatives.
Across major investment categories the following progress was achieved in First Half 2021.
Productivity and growth
Customer Service Hub (CSH) is a major program resolving multi brand issues in Consumer bank. A new online
application process was launched in December 2020 for Westpac customers, completing the end to end digital
mortgage experience for customers. This new capability improves the experience for customers and streamlines
the process for bankers. Customers can apply, track their application, upload documents and accept their loan
offer online. Bankers can monitor a customer’s application online. CSH is now being used by Westpac, St.George,
Bank of Melbourne and BankSA bankers. Availability for brokers is expected to be in place by the end of 2021.
Further development of Panorama, our wealth administration platform, including simplifying our products and
processes to support the migration of BT Wrap accounts to Panorama. The migration commenced in December
2020 and is scheduled to complete by 30 June 2021.
The Group has continued to improve its digital capability with key initiatives delivered in First Half 2021 including:
• First launched in late 2020 the new Westpac mobile banking iPhone app has now been rolled out to all personal
banking and sole trading customers. The app provides a faster and simpler banking experience including
through smarter searching, more intuitive navigation and reducing the steps to make a payment from 12 to 4.
The new functionality will be available to Android users in 2021;
• Simplifying fee structures by reducing over 100 fees;
• Migrating over 1 million customers onto contemporary products;
• Introduced biometrics (primarily facial recognition) as the preferred method for verification of identity for
St.George customers applying for a mortgage online; and
• Digitised and simplified a number of processes (while simultaneously improving data quality and security)
including: enabling customers to update their details real-time online; simplifying the process to link cards to
Apple Pay; providing proof of balance verification for business customers online.

32WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
Review of Group operations
Risk and compliance
• Financial Crime Management capability has been strengthened through further enhancements to the NetReveal
system. NetReveal provides the capability to identify and monitor financial crime risk and supports compliance
across multiple jurisdictions, business units and risk types. Enhancements include updated detection rules,
customer risk assessment, customer and payment screening and IFTI reporting;
• Enabling customers to access and transfer mortgage and personal loan information securely with trusted third
parties through open banking;
• Employed additional resources to strengthen first and second line of defence, and additional risk and culture
training;
• Rolled-out a new centralised records management capability across the Group to improve visibility and
accountability of records; and
• Updated systems and processes for the transition to the alternative reference rate (IBOR), new derivatives
regulations, and Brexit trading obligations.
Other technology
Major initiatives under this category included:
• Further strengthened document and data security:
–Improved responsiveness to applying security patches;
–New system to share files with third parties to speed-up file transfer and eliminate need for using (higher
risk) external drives to share information;
–Extended data loss prevention function including measures to block loss of sensitive data; and
–Strengthened document and email security through new data and email classifications;
• Upgraded branch IT infrastructure that is more secure and faster. The upgrade has improved banker
productivity and customer service speed;and
• New command centre to improve management of cyber threats.
Capitalised software
Half YearHalf YearHalf Year% Mov’t
MarchSeptMarchMar 21 -Mar 21 -
$m202120202020Sept 20Mar 20
Balance as at beginning of period 2,430 2,335 2,365 4 3
Total additions
1
348 605 430 (42)(19)
Amortisation expense(384)(406)(393)(5)(2)
Impairment expense(133)(96)(75) 39 77
Foreign exchange translation(1)(8) 8 (88)large
Balance as at end of period 2,260 2,430 2,335 (7)(3)
The capitalised software balance was $2,260 million, a $170 million or 7% decrease compared to
30 September 2020, and a $75 million or 3% decrease compared to 31 March 2020.
Compared to Second Half 2020, additions were $257 million lower, due to lower investment and a lower level of
capitalisation (46% compared to 61%) mostly from a change in our software capitalisation policy which increased
the minimum project cost before it can be capitalised to $20 million (refer to Note 1 to the financial statements
in this 2021 Interim Financial Report for further details). Compared to First Half 2020, additions were $82 million
lower.
Following our regular reviews, $133 million in software was impaired. Most of this was due to either assets no longer
in use or superseded by new functionality, rescoping of design resulting in previous work no longer being used or
diminution of benefits due to changes in the economic environment.
Software amortisation expense decreased $22 million (or 5%) compared to Second Half 2020 and $9 million
(or 2%) compared to First Half 2020, due to $171 million write down in Full Year 2020.
In aggregate, the average amortisation period for our capitalised software assets is 3.0 years.
1 Includes capitalised borrowing costs and card scheme.

33WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
1

2
3
4
5
6
7
Review of Group operations
2.2.9 Impairment charges
Half YearHalf YearHalf Year% Mov’t
MarchSeptMarchMar 21 -Mar 21 -
$m202120202020Sept 20Mar 20
Individually assessed provisions (IAPs)
New IAPs(144)(283)(351)(49)(59)
Write-backs 62 54 70 15 (11)
Recoveries 132 93 100 42 32
Total IAPs, write-backs and recoveries 50 (136)(181)largelarge
Collectively assessed provisions (CAPs)
Write-offs(318)(438)(438)(27)(27)
Other changes in CAPs 640 (366)(1,619)largelarge
Total new CAPs 322 (804)(2,057)largelarge
Total impairment (charges)/benefits 372 (940)(2,238)largelarge
In First Half 2021, Westpac reported an impairment benefit of $372 million, compared to the Second Half 2020
impairment charge of $940 million.
Through the 2020 financial year, there was the expectation that the economic effects of COVID-19 would lead to
a significant deterioration in asset quality, including from lower economic growth, higher unemployment and a
decline in both commercial and residential property prices. These expectations were factored into our provision
calculations, and our judgements leading to a significant increase in expected credit loss provisions during 2020.
Through First Half 2021 the impact of various measures introduced by governments, regulators, central banks,
banks and others in response to COVID-19 have to date protected the Australian and New Zealand economies from
the downside first feared at the pandemic’s outbreak. Fiscal support has sustained economic activity and improved
the finances of many borrowers with lower interest rates reducing financial obligations for many and helping
to boost financial buffers. This was reflected in the rebound in economic activity, an improving labour market
(including lower unemployment) and higher housing prices.
In First Half 2021 we updated the forward-looking economic inputs in our provision calculations and along with an
improvement in credit quality metrics, and a reduction in lending in some higher risk portfolios meant that some
expected credit loss provisions booked through Full Year 2020 were no longer required. This led to an impairment
benefit in First Half 2021.
While both credit quality metrics and the operating environment have improved, much uncertainty remains. In
particular, it is possible that a further wave of the pandemic could occur in Australia and New Zealand prior to the
vaccine roll-out reaching critical saturation. Similarly, it is not clear how the economy will respond to the wind-back
in government support, and other industry initiatives.
As a result, we have maintained our current economic scenario weights and increased our COVID-19 related
overlays to capture the potential for the future emergence of losses in our business portfolios.
The following table indicates the weightings applied by the Group at 31 March 2021, 30 September 2020 and
31 March 2020:
As atAs atAs at
31 March30 Sept31 March
Macroeconomic scenario weightings (%)202120202020
Upside555
Base555555
Downside404040
First Half 2021 – Second Half 2020
First Half 2021 was an impairment benefit of $372 million, compared to a $940 million impairment charge in
Second Half 2020.
Total new CAP was a benefit of $322 million compared with a charge of $804 million in Second Half 2020. The CAP
benefit was due to:
• the use of more positive forward-looking economic inputs in the provision calculations;
• improved credit quality metrics, particularly in the mortgage and business lending portfolios, along with a
decline in lending in unsecured portfolios;
• lower write-offs, predominately from lower delinquencies and a reduction in our consumer unsecured portfolios;
partially offset by
• an increase in COVID-19 related overlays to address the risk of delayed loss emergence in business lending.
Total IAPs, write-backs and recoveries were a $50 million benefit, compared to a $136 million charge in
Second Half 2020. Key drivers included:
• significantly lower new IAPs ($144 million) compared to Second Half 2020 ($283 million). There were no large
IAPs (greater than $50 million) raised in First Half 2021 compared to one in Second Half 2020; and
• higher recoveries compared to Second Half 2020 predominately in unsecured consumer lending.
Review of Group
operations

34WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
Review of Group operations
First Half 2021 – First Half 2020
First Half 2021 was an impairment benefit of $372 million compared to an impairment charge of $2,238 million in
First Half 2020.
Total new CAP was a benefit of $322 million compared with a charge of $2,057 million in First Half 2020. The
benefit was due to:
• more positive forward-looking economic inputs in the provision calculations in First Half 2021;
• no change to the downside economic scenario weighting (in First Half 2020 more weight was assigned to the
downside scenario) reflecting the high degree of uncertainty over the future impact of the pandemic; and
• a lower increase in overlay provisions in First Half 2021.
Total IAPs, write-backs and recoveries were a $50 million benefit, compared to a $181 million charge in
First Half 2020. The benefit was due to:
• significantly lower new IAPs ($144 million) compared to First Half 2020 ($351 million). There were no large IAPs
(greater than $50 million) raised in First Half 2021 compared to two in First Half 2020; and
• higher recoveries compared to First Half 2020 predominately in unsecured consumer lending driven by
customers completing their hardship serviceability requirements.
2.2.10 Income tax expense
First Half 2021 – Second Half 2020
The effective tax rate of 31.8% in First Half 2021 was significantly lower than the Second Half 2020 effective tax
rate of 42.4% mainly due to the non-deductible provisions relating to the AUSTRAC civil proceedings recognised in
Second Half 2020, and a reduction in goodwill impairments. The effective tax rate is above the Australian corporate
tax rate of 30%.
First Half 2021 – First Half 2020
The effective tax rate of 31.8% in First Half 2021 was also significantly lower than the effective tax rate of 48.8% in
First Half 2020 mainly due to the non-deductible provisions relating to the AUSTRAC civil proceedings recognised
in First Half 2020.
2.2.11 Non-controlling interests
Non-controlling interests represent results of non-wholly owned subsidiaries attributable to shareholders other
than Westpac. These include profits attributable to the 10.1% shareholding in Westpac Bank-PNG-Limited and the
25% shareholding in St.George Motor Finance Limited that are not owned by Westpac.
2.3 Credit quality
The portfolio performed well in First Half 2021 with stressed exposures as a percentage of total committed
exposures reducing 31 basis points to 1.60% at 31 March 2021. This reduction comprised:
• a 10 basis point fall in watchlist and substandard exposures, from more rating upgrades in business lending and
a lower number of downgrades. The improvement was across most industry sectors;
• a 14 basis point decline in 90 days past due and not impaired exposures from lower mortgage accounts in
hardship. This decline was due to accounts exiting hardship in mid-calendar 2020 and have now completed
their six-month serviceability requirements; and
• 7 basis point decrease in impaired exposures, driven by loans refinanced and regraded from impaired.
Lower impaired exposures saw the ratio of gross impaired exposures to gross loans decline by 10 basis points to
0.30% compared to 30 September 2020. Institutional impaired loans declined $216 million while Australian business
impaired loans were $168 million lower.
At 31 March 2021, the ratio of gross impaired exposure provisions to gross impaired exposures was 47.0% (up from
41.5% at 30 September 2020) while the ratio of collectively assessed provisions to credit risk weighted assets
decreased to 142 basis points (a 12 basis point reduction compared to September 2020).
Portfolio segments
The institutional segment has seen a decrease in stress with stressed exposures to TCE falling 24 basis points to
0.32% compared to 30 September 2020. This was due to a reduction in both watchlist exposures and impaired
exposures, from rating upgrades, the pay-down of debts and some write-offs.
The Australian business segment has seen stressed exposures to TCE fall 17 basis points to 6.74% compared to
30 September 2020. This was due to lower stress in Commercial portfolios, including Agriculture, Accommodation
/ Hotels / Clubs / Pubs, and Transport and Storage. Within total stressed exposures, impaired assets also declined
leading to the ratio of impaired assets to TCE falling 19 basis points to 0.88% compared to 30 September 2020.
The commercial property sector has continued to perform well but has been one of the few sectors to experience
an increase in stress. Stressed property exposures to TCE increased 9 basis points to 2.91% compared to
30 September 2020. The rise in stress has been most evident in the office and retail sectors.

35WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
1

2
3
4
5
6
7
Review of Group operations
Australian mortgage 90+ day delinquencies were 42 basis points lower than 30 September 2020 at 1.20%. This
improvement comprised:
• customers who exited hardship in 2020 and have now completed their 6 month serviceability period in
First Half 2021 (43 basis points lower);
• recommencement of some collection activities that were put on hold as we prioritised supporting customers on
deferral packages (9 basis points lower); partially offset by
• accounts that have exited a deferral package and have now become delinquent or migrated to hardship
(10 basis points higher).
Properties in possession continued to decline over First Half 2021, down by 76 to 180 compared to
30 September 2020. The fall was due in part to a pause in repossession activities.
Other Australian consumer 90+ day delinquencies were 17 basis points lower than 30 September 2020 at 1.92%.
The decline was due to a 26 basis point reduction from portfolio performance, partly offset by a 9 basis point
increase from a decline in lending. Most of the reduction in delinquencies was in auto finance where the 90+ day
delinquency was 35 basis points lower over the half at 2.45%. The 35 basis point decline included 85 basis points
from portfolio performance partially offset by a 54 basis point increase from customers ending their COVID-19
deferral package and requiring additional support.
The New Zealand business portfolio has seen a small increase in stress from a rise in watchlist exposures partially
offset by a fall in impaired exposures. Impaired business exposures to TCE fell 10 basis points to 0.44% compared
to September 2020. The reduction in impaired assets was primarily due to the upgrade / sale / exposure reduction
of two larger customers.
New Zealand mortgage 90+ day delinquencies were 19 basis points lower than 30 September 2020 at 0.33%.
New Zealand other consumer 90+ day delinquencies were 18 basis points lower than 30 September 2020 at 1.91%.
The improved 90+ day delinquencies were driven in part by improved performance along with the re-aging of
customers after the exit of a COVID-19 package.
Provisions
Total provisions were $5,508 million at 31 March 2021, $655 million lower than 30 September 2020. This was due
to the use of more positive forward-looking economic inputs in the provisioning calculation, improved portfolio
performance and a decline in some of our higher risk exposures.
However, the impact of COVID-19 on the Australian economy and the Group remains uncertain. To address this
uncertainty, we have increased our COVID-19 related overlays to allow for the potential emergence of losses
once the effect of support and stimulus measures reduces in our business portfolios. Total overlays increased
$250 million to $902 million over the last 6 months.
IAPs were $564 million at 31 March 2021, $47 million lower than at 30 September 2020. The new and increased IAP
result of $144 million was significantly lower than prior periods, especially considering the impact of the pandemic.

36WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
Review of Group operations
2.3.1 Credit quality key metrics¹
As atAs atAs at
31 March30 Sept31 March
202120202020
Stressed exposures by credit grade as a % of TCE:
Impaired 0.19% 0.26% 0.20%
90 days past due and not impaired 0.66% 0.80% 0.50%
Watchlist and substandard 0.75% 0.85% 0.62%
Total stressed exposures 1.60% 1.91% 1.32%

Gross impaired exposures to TCE for business and institutional:
Business Australia 0.88% 1.07% 0.71%
Business New Zealand 0.44% 0.54% 0.59%
Institutional 0.08% 0.15% 0.08%

Mortgage 90+ day delinquencies:
Group 1.11% 1.50% 0.87%
Australia 1.20% 1.62% 0.94%
New Zealand 0.33% 0.52% 0.27%

Other consumer loans 90+ day delinquencies:
Group 1.92% 2.09% 1.94%
Australia 1.92% 2.09% 1.97%
New Zealand 1.91% 2.09% 1.59%

Other:
Gross impaired exposures to gross loans 0.30% 0.40% 0.30%
Gross impaired exposure provisions to gross impaired exposures 47.0 3 % 41.45% 50.09%
Total provisions to gross loans 79 bps 88 bps 80 bps
Collectively assessed provisions to credit risk weighted assets 142 bps 154 bps 140 bps
Total provisions to credit risk weighted assets 159 bps 171 bps 157 bps
Impairment charges/(benefits) to average gross loans annualised
2
(11 bps) 27 bps 62 bps
Net write-offs to average gross loans annualised
2
9 bps 15 bps 12 bps
2.3.2 Movement in gross impaired exposures
1
Half YearHalf YearHalf Year% Mov’t
MarchSeptMarchMar 21 -Mar 21 -
$m202120202020Sept 20Mar 20
Balance as at beginning of period 2,779 2,154 1,763 29 58
New and increased - individually managed 222 864 897 (74)(75)
Write-offs(431)(633)(537)(32)(20)
Returned to performing or repaid(369)(488)(516)(24)(28)
Portfolio managed - new/increased/returned/repaid(104) 842 572 largelarge
Exchange rate and other adjustments(26) 40 (25)large 4
Balance as at end of period 2,071 2,779 2,154 (25)(4)
1. Includes balances presented as held for sale.
2. Averages are based on a six month period.

37WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
1

2
3
4
5
6
7
Review of Group operations
2.4 Balance sheet and funding
2.4.1 Balance sheet
As atAs atAs at% Mov’t
31 March30 Sept31 MarchMar 21 -Mar 21 -
$m202120202020Sept 20Mar 20
Assets
Cash and balances with central banks 33,877 30,129 45,815 12 (26)
Collateral paid 3,917 4,778 5,339 (18)(27)
Trading securities and financial assets measured at fair value
through income statement (FVIS) and investment securities 112,231 132,206 112,069 (15)-
Derivative financial instruments 22,373 23,367 56,661 (4)(61)
Loans 688,218 693,059 719,678 (1)(4)
Life insurance assets 3,416 3,593 2,574 (5) 33
Other assets 21,068 24,814 25,526 (15)(17)
Assets held for sale 4,359 - - - -
Total assets 889,459 911,946 967,662 (2)(8)
Liabilities
Collateral received 2,504 2,250 12,728 11 (80)
Deposits and other borrowings 585,401 591,131 582,920 (1)-
Other financial liabilities 42,996 40,925 33,996 5 26
Derivative financial instruments 20,303 23,054 48,089 (12)(58)
Debt issues 127,850 150,325 185,835 (15)(31)
Life insurance liabilities 1,070 1,396 604 (23) 77
Loan capital 26,294 23,949 25,807 10 2
Other liabilities 7,891 10,842 10,037 (27)(21)
Liabilities held for sale 3,049 - - - -
Total liabilities 817,358 843,872 900,016 (3)(9)
Equity
Total equity attributable to owners of WBC 72,052 68,023 67,590 6 7
NCI 49 51 56 (4)(13)
Total equity 72,101 68,074 67,646 6 7
First Half 2021 – Second Half 2020
During First Half 2021, total assets decreased $22.5 billion mainly attributed to lower liquid assets in line with a
reduction in debt issues.
Key movements included:
Assets
• Cash and balances with central banks increased $3.7 billion or 12% reflecting higher liquid assets held in this
form;
• Collateral paid reduced $0.9 billion or 18% reflecting lower collateralised derivative balances;
• Trading securities and other financial assets measured at FVIS and investment securities decreased $20.0 billion
or 15% to reduce liquid assets;
• Derivative assets decreased $1.0 billion or 4% mainly driven by movements in interest rate swaps, partly offset
by foreign currency forward contracts;
• Loans decreased $4.8 billion or 1%. Refer to Section 2.2.2 Loans for further information;
• Other assets decreased $3.7 billion due to reductions in securities sold not delivered included in other financial
assets, property and equipment and deferred tax assets; and
• Assets held for sale increased $4.4 billion reflecting the assets of certain Specialist Businesses classified in this
category. Refer to Note 17 to the financial statements in this 2021 Interim Financial Report for further information.
Liabilities
• Deposits and other borrowings decreased $5.7 billion or 1%. Refer to Section 2.2.3 Deposits and other
borrowings for further information;
• Other financial liabilities increased $2.1 billion or 5% due to an increase in securities sold under agreements to
repurchase, partly offset by decreases in interbank deposits and securities purchased not delivered;
• Derivative liabilities decreased $2.8 billion or 12% mainly driven by movements in interest rate and cross
currency swaps, partly offset by foreign currency forward contracts;
• Debt issues decreased $22.5 billion or 15% ($16.4 billion or 11% decrease excluding foreign currency impacts).
Refer to Section 2.4.2 Funding and liquidity risk management for further information;

38WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
Review of Group operations
• Loan capital increased $2.3 billion or 10% reflecting $4.3 billion net issuances of Additional Tier 1 instruments
(issuance of Westpac Capital Notes 7, partly offset by redemption of Westpac Capital Notes 3) and Tier 2
capital instruments. This was partly offset by $2.0 billion of foreign currency translation and fair value hedging
impacts;
• Other liabilities decreased $3.0 billion or 27% due to reduction in provisions to settle the AUSTRAC civil
proceedings and lower insurance related liabilities included in other liabilities as these were reclassified to
liabilities held for sale; and
• Liabilities held for sale increased $3.0 billion reflecting the liabilities of certain Specialist Businesses classified
in this category. Refer to Note 17 to the financial statements in this 2021 Interim Financial Report for further
information.
Equity attributable to owners of WBC increased $4.0 billion or 6% reflecting retained profits during the period.
First Half 2021 – First Half 2020
In First Half 2021, total assets decreased compared to 31 March 2020 reflecting the reduction in loans during the
year to 31 March 2021. The Group’s funding composition also saw a decline in debt issues, partly offset by an
increase in other financial liabilities from the drawdown of the Term Funding Facility.
Key movements included:
Assets
• Cash and balances with central banks decreased $11.9 billion or 26% reflecting lower liquid assets held in this
form;
• Collateral paid reduced $1.4 billion or 27% reflecting lower collateralised derivative balances;
• Derivative assets decreased $34.3 billion or 61% mainly driven by movements in cross currency swaps, foreign
currency forward contracts and interest rate swaps;
• Loans decreased $31.5 billion or 4%. Refer to Section 2.2.2 Loans for further information;
• Life insurance assets increased $0.8 billion or 33% mainly due to consolidation of new funds, partly offset by the
transfer of assets to non-consolidated funds which all occurred during Second Half 2020;
• Other assets decreased $4.5 billion due to reductions in securities sold not delivered and interbank balances
included in other financial assets, property and equipment and impairment of intangible assets; and
• Assets held for sale increased $4.4 billion reflecting the assets of certain Specialist Businesses classified in
this category. Refer to Note 17 to the financial statements in this 2021 Interim Financial Report for further
information.
Liabilities
• Collateral received decreased $10.2 billion or 80% reflecting lower collateralised derivative balances;
• Deposits and other borrowings increased $2.5 billion. Refer to Section 2.2.3 Deposits and other borrowings for
further information;
• Other financial liabilities increased $9.0 billion or 26% due to an increase in securities sold under agreements to
repurchase, partly offset by decreases in interbank deposits and securities purchased not delivered;
• Derivative liabilities decreased $27.8 billion or 58% mainly driven by movements in cross currency swaps, foreign
currency forward contracts and interest rate swaps;
• Debt issues decreased $58.0 billion or 31% ($37.5 billion or 20% decrease excluding foreign currency impacts).
Refer to Section 2.4.2 Funding and liquidity risk management for further information;
• Loan capital increased $0.5 billion or 2% reflecting $4.3 billion net issuance of Additional Tier 1 instruments
(issuance of Westpac Capital Notes 7, partly offset by redemption of Westpac Capital Notes 3) and Tier 2
capital instruments. This was partly offset by $3.8 billion of foreign currency translation and fair value hedging
impacts;
• Other liabilities decreased $2.1 billion or 21% due to reduction in provisions to settle the AUSTRAC civil
proceedings and lower insurance related liabilities included in other liabilities as these were reclassified to
liabilities held for sale; and
• Liabilities held for sale increased $3.0 billion reflecting the liabilities of certain Specialist Businesses classified
in this category. Refer to Note 17 to the financial statements in this 2021 Interim Financial Report for further
information.
Equity attributable to owners of WBC increased $4.5 billion or 7% reflecting retained profits. The 2020 final
dividend did not impact equity as the dividend reinvestment plan was fully underwritten.

39WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
1

2
3
4
5
6
7
Review of Group operations
2.4.2 Funding and liquidity risk management
Liquidity risk is the risk that the Group will be unable to fund assets and meet obligations as they become due. This
type of risk is inherent for all banks as intermediaries between depositors and borrowers. The Group has a liquidity
risk management framework which seeks to meet cash flow obligations under a wide range of market conditions,
including name specific and market-wide stress scenarios, as well as meeting the regulatory requirements of the
LCR and NSFR.
The Group maintained funding and liquidity metrics comfortably above regulatory minimums throughout the
First Half 2021. The Group’s March 2021 quarterly average LCR was 124% and its NSFR at 31 March 2021 was 123% as
compared to regulatory minimums of 100% for both.
During First Half 2021, measures introduced by the Reserve Bank to support the economy remained in place.
These include an historically low cash rate, additional liquidity injected into the financial system through daily
market operations, the purchase of Australian Government bonds in the secondary market, and the Term Funding
Facility (TFF). Through the TFF, funding is provided to eligible ADIs at a fixed interest rate of 10 to 25 basis points, for a
maximum of three years.
At 31 March 2021, Westpac’s total TFF allowance was $30 billion and Westpac had drawn down $22 billion. Westpac
has included its TFF allowance in the LCR and NSFR calculations for 31 March 2021 in accordance with prudential
guidance.
Liquidity
The Group has a number of sources of liquidity that provide a buffer against periods of liquidity stress. These
include High Quality Liquid Assets (HQLA) and the Committed Liquidity Facility (CLF), both of which are used to
meet the Group’s LCR requirements. The Group also has access to non-HQLA and other assets that are eligible for
re-purchase with a central bank under certain conditions.
• At 31 March 2021, Westpac held $113.4 billion in HQLA (30 September 2020: $131.7 billion). HQLA include cash,
deposits with central banks, government securities and other high quality securities that are repo-eligible with
the RBA. The HQLA portfolio is managed within the Group’s risk appetite and within regulatory requirements.
HQLA decreased over the six months to 31 March 2021, in line with a reduction in debt maturities.
• Westpac’s CLF allocation for the 2021 calendar year, as approved by APRA, is $37 billion (2020 calendar year:
$52 billion). The Group’s CLF allocation was reduced due to the significant increase in available HQLA, as well
as higher system liquidity driven by fiscal and monetary policy. The fee to access the CLF was increased by the
RBA on 1 January 2021 to 20 basis points (from 17 basis points).
• The Group also holds a portfolio of non-HQLA liquid assets that are repo-eligible with the Reserve Bank of
Australia. These include private securities and self-originated AAA-rated mortgage-backed securities.
The Group’s total unencumbered liquid assets were $195.2 billion as at 31 March 2021 (30 September 2020: $221.2 billion).
The reduction in liquid assets over the First Half 2021 mainly reflects lower HQLA and lower self-originated AAA-rated
mortgage-backed securities.
LCR
The LCR is designed to enhance banks’ short-term resilience, by measuring the level of HQLA, as defined, held
against its liquidity needs for a 30 calendar day period under a regulator-defined stress scenario. In addition to
HQLA, Australian ADIs including Westpac also have access to the CLF, as set out above, to meet the requirements
of the LCR.
Westpac’s average LCR for the quarter ended 31 March 2021 was 124 % (Westpac’s average LCR for the quarter
ended 30 September 2020 was: 151%).
The reduction in the Group’s LCR mainly reflects a $15 billion reduction in the CLF (effective 1 December 2020) and
an increase in other flows. The main driver of other flows was the Group’s requirement to increase the value of its
net cash outflows by 10% for the purpose of calculating LCR (effective 1 January 2021). The overlay to the Group’s
net cash outflows has been required by APRA in response to breaches of liquidity requirements predominantly
relating to Westpac New Zealand Limited (WNZL). Further details are set out in the Significant Developments
section of the 2021 Half Year Financial Results.
NSFR
The NSFR is designed to encourage banks’ longer-term funding resilience. To comply, banks are required
to maintain an NSFR of at least 100% at all times. Westpac had an NSFR of 123% at 31 March 2021
(30 September 2020: 122%). Movements in the Group’s NSFR over the half represent a $1.1 billion increase in
available stable funding, mainly due to deposits (up $2.9 billion) and equity (up $3.4 billion), partly offset by
wholesale funding (down $4.9 billion). Required stable funding decreased by $2.4 billion.
Funding
The Group monitors the composition and stability of its funding so it remains within the Group’s funding risk
appetite. This includes compliance with both the LCR and NSFR.
Review of Group
operations

40WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
Review of Group operations
Customer deposits
Customer deposits have continued to increase as a proportion of the Group’s funding. In the First Half 2021,
customer deposits increased by 70 basis points to 65.7% of the Group’s total funding, including equity. While
customer deposits decreased by $5.1 billion over the First Half, the Group’s total net funding also decreased, by
$15.9 billion, in line with reductions in the Group’s balance sheet.
Long term wholesale funding
Long term funding with a residual maturity greater than 12 months decreased 100 basis points or $11.0 billion to
15.6%. The bank’s wholesale funding needs were limited over the First Half, reflecting a high proportion of customer
deposits, a contraction in lending and the availability of the TFF.
The Group raised $7.4 billion of long term wholesale funding the First Half of 2021, including $1.7 billion in
Additional Tier 1 and $4.7 billion in Tier 2 capital securities, the latter continuing the Group’s progress towards its
Total Loss Absorbing Capital (TLAC) requirements.
Funding from securitisation decreased to 0.8% of total funding.
Short term wholesale funding
Wholesale funding with a residual maturity less than 12 months decreased by 30 basis points to 10.1%, or
$85.0 billion. This portfolio (including long term to short term scroll) had a weighted average maturity of 146 days.
Equity
Funding from equity increased by 60 basis points to 8.6% of total funding.
Liquidity coverage ratio
Quarter QuarterQuarter% Mov’t
MarchSeptMarchMar 21 -Mar 21 -
$m202120202020Sept 20Mar 20
High Quality Liquid Assets (HQLA)
1,3
117,759 118,944 100,638 (1)17
Committed Liquidity Facility (CLF)
3
37,000 52,000 52,000 (29)(29)
Term Funding Facility (TFF)
2,3
10,321 10,830 280 (5)large
Total LCR liquid assets 165,080 181,774 152,918 (9)8
Cash outflows in a modelled 30-day APRA defined stressed scenario
Customer deposits
1
85,282 87,925 75,983 (3)12
Wholesale funding 13,024 10,182 12,043 28 8
Other flows
4
35,281 22,223 20,942 59 68
Total 133,587 120,330 108,968 11 23
LCR
1,5
124% 151% 140%largelarge
Net stable funding ratio
As atAs atAs at% Mov’t
31 March30 Sept31 MarchMar 21 -Mar 21 -
$m202120202020Sept 20Mar 20
Available stable funding
1
625,185 624,097 627,676 - -
Required stable funding 510,287 512,656 536,601 -(5)
Net stable funding ratio 123% 122% 117%
78 bps
large
1.Includes balances presented as held for sale.
2.Represents the Group’s average undrawn TFF allowance as per APRA guidance.
3.Refer to Glossary for definition.
4.Other flows include credit and liquidity facilities, collateral outflows and inflows from customers.
5.Calculated on a quarterly average basis. Comparatives have been restated.

41WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
1

2
3
4
5
6
7
Review of Group operations
Funding by residual maturity
As at 31 March 2021As at 30 Sept 2020As at 31 March 2020
$mRatio %$mRatio %$mRatio %
Wholesale funding
Less than 6 months 45,415 5.4 43,543 5.1 49,097 5.7
6 to 12 months 11,951 1.4 5,445 0.7 17,301 2.0
Long term to short term scroll
1
27,631 3.3 39,489 4.6 38,539 4.4
Wholesale funding - residual maturity less than 12
months 84,997 10.1 88,477 10.4 104,937 12.1
Securitisation 6,687 0.8 8,000 0.9 9,523 1.1
Greater than 12 months 124,050 14.8 133,732 15.7 140,974 16.3
Wholesale funding - residual maturity greater than 12
months 130,737 15.6 141,732 16.6 150,497 17.4
Customer deposits
2
550,337 65.7 555,453 65.0 543,801 62.7
Equity
3
71,877 8.6 68,199 8.0 67,604 7.8
Total funding 837,948 100.0 853,861 100.0 866,839 100.0
Deposits to net loans ratio
As at 31 March 2021As at 30 Sept 2020As at 31 March 2020
$mRatio %$mRatio %$mRatio %
Customer deposits
2
550,337 555,453 543,801
Net customer loans
2
690,037 79.8 693,059 80.1 719,678 75.6
Funding view of the balance sheet²
$m
Total liquid
assets
Customer
deposits
Wholesale
funding
Customer
franchise
Market
inventoryTotal
As at 31 March 2021
Total assets 195,177 - - 643,492 50,790 889,459
Total liabilities- (550,337)(215,734)- (51,287)(817,358)
Total equity- - - (71,877)(224)(72,101)
Total 195,177 (550,337)(215,734) 571,615 (721)-
Net loans
4
60,894 - - 629,143 - 690,037
As at 30 September 2020
Total assets 221,176 - - 637,880 52,890 911,946
Total liabilities- (555,453)(230,210)- (58,209)(843,872)
Total equity- - - (68,199) 125 (68,074)
Total 221,176 (555,453)(230,210) 569,681 (5,194)-
Net loans
4
71,616 - - 621,443 - 693,059
As at 31 March 2020
Total assets 199,949 - - 673,994 93,719 967,662
Total liabilities- (543,801)(255,434)- (100,781)(900,016)
Total equity- - - (67,604)(42)(67,646)
Total 199,949 (543,801)(255,434) 606,390 (7,104)-
Net loans
4
63,189 - - 656,489 - 719,678
1. Scroll represents wholesale funding with an original maturity greater than 12 months that now has a residual maturity less than 12
months.
2. Includes balances presented as held for sale.
3. Includes total share capital, share-based payment reserve and retained profits.
4. Liquid assets in net loans include internally securitised assets that are eligible for repurchase agreements with the RBA/RBNZ.

42WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
Review of Group operations
2.5 Capital and dividends
As atAs atAs at% Mov’t
31 March30 Sept31 MarchMar 21 -Mar 21 -
202120202020Sept 20Mar 20
Level 2 regulatory capital structure
Common equity Tier 1 (CET 1) capital after deductions ($m) 52,932 48,733 47,982 9 10
Risk weighted assets (RWA) ($m) 428,899 437,905 443,905 (2)(3)
CET 1 capital ratio 12.34% 11.13% 10.81% 121 bps 153 bps
Additional Tier 1 capital ratio 2.21% 2.10% 2.13% 11 bps 8 bps
Tier 1 capital ratio 14.55% 13.23% 12.94% 132 bps 161 bps
Tier 2 capital ratio 3.88% 3.15% 3.35% 73 bps 53 bps
Total regulatory capital ratio 18.43% 16.38% 16.29% 205 bps 214 bps
APRA leverage ratio
1
6.27% 5.78% 5.66% 49 bps 61 bps
Level 1 regulatory capital structure
CET 1 capital after deductions ($m) 53,313 49,453 48,482 8 10
Risk weighted assets ($m) 424,656 433,727 437,137 (2)(3)
Level 1 CET 1 capital ratio 12.55% 11.40% 11.09% 115 bps 146 bps
APRA announcements on capital
On 15 December 2020 APRA issued revised capital management guidance
2
. From 1 January 2021 APRA will no
longer hold banks to a minimum level of earnings retention (previously 50% of net profit after tax in 2020). APRA
has also stated that it expects banks to moderate dividend payout ratios, consider the use of dividend reinvestment
plans (DRPs) and/or other capital management initiatives to offset the impact from distributions and conduct
regular stress testing.
In addition, APRA has released further guidance on the implementation of Basel III reforms which will embed the
“unquestionably strong” level of capital in the framework. On 8 December 2020, APRA outlined its proposals for
changes to the capital framework including proposed changes to RWA effective from 1 January 2023
3
.
Further details of regulatory changes are set out in the Significant Developments section of the 2021 Interim
Financial Report.
Capital management strategy
Westpac’s approach to capital management seeks to ensure that it is adequately capitalised as an ADI. Westpac
evaluates its approach to capital management through an Internal Capital Adequacy Assessment Process (ICAAP),
the key features of which include:
• the development of a capital management strategy, including consideration of regulatory minimums, capital
buffers and contingency plans;
• consideration of both regulatory and economic capital requirements;
• a stress testing framework that challenges the capital measures, coverage and requirements including the
impact of adverse economic scenarios; and
• consideration of the perspectives of external stakeholders including rating agencies as well as equity and debt
investors.
During the period of disruption caused by COVID-19, Westpac is operating with the following principles in relation
to capital:
• Prioritise maintaining capital strength;
• Retain capital to absorb further downside on credit quality and acknowledge a high degree of uncertainty
regarding the length and depth of this stress;
• Allow for capital flexibility to support lending to customers; and
• in line with APRA guidance, Westpac will seek to maintain a buffer above the regulatory requirement including
buffers (currently at least 8% for D-SIBs including Westpac).
These principles take into consideration:
• Current regulatory capital minimums and the capital conservation buffer (CCB), which together are the Total
CET1 Requirement. In line with the above, the Total CET1 Requirement for Westpac is at least 8.0%, based upon
an industry minimum CET1 requirement of 4.5% plus a capital buffer of at least 3.5% applicable to D-SIBs
4,5
;
• Stress testing to calibrate an appropriate buffer against a downturn; and
• Quarterly volatility of capital ratios due to the half yearly cycle of ordinary dividend payments.
Westpac will revise its capital management preferred range once APRA’s review of the capital adequacy framework
is finalised.
Review of Group
operations
1. Refer to Glossary for definition.
2. Letter to all authorised deposit taking institutions and insurers – “Capital Management” dated 15 December 2020.
3. Discussion paper: A more flexible and resilient capital framework for ADIs published 8 December 2020.
4. Noting that APRA may apply higher CET1 requirements for an individual ADI.
5. If an ADI’s CET1 ratio falls below the Total CET1 Requirement (at least 8%), they face restrictions on the distribution of earnings, such as
dividends, distribution payments on AT1 capital instruments and discretionary staff bonuses.

43WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
1

2
3
4
5
6
7
Review of Group operations
CET1 capital ratio movement for First Half 2021 (basis points)
Sep-20
RWA
movement
Capital
deductions
and other items
FX translation
impact
Divestments
Mar-21
11.13%
82bps
8bps
20bps
12bps
12.34%
Cash earnings
(1bps)
Westpac’s Common Equity Tier 1 (CET1) capital ratio was 12.34% at 31 March 2021, 121 basis points higher than
30 September 2020. Key movements in the CET1 capital ratio over the half were:
• First Half 2021 cash earnings of $3,537 million (82 basis point increase);
• A decline in Risk Weighted Assets (RWA) (20 basis point increase) mostly from a decrease in credit risk RWA
from a reduction in lending and an improvement in credit metrics;
• Capital deductions and other capital movements (12 basis point increase) from lower deferred tax assets and
from higher other comprehensive income from a revaluation of debt securities. This was partly offset by higher
earnings held in entities that are not consolidated for regulatory purposes which are deducted from capital;
• Foreign currency impacts from the appreciation of the A$ against the US$ and NZ$ (1 basis point decrease)
1
; and
• An 8 basis points increase from the sale of Westpac’s stake in Zip Co Limited.
Payment of Westpac’s 2020 final dividend had no net impact on capital as the dividend reinvestment plan was
fully underwritten. On 18 December 2020 Westpac issued 56.9 million new ordinary shares (Shares) ($1.12 billion)
comprising 20.2 million Shares ($401 million) to participants in the dividend reinvestment plan (approximately
36% participation rate) and 36.7 million Shares ($719 million) to the underwriter.
1. Reflecting the net impact of movements in the foreign currency translation reserve and RWA.

44WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
Review of Group operations
Additional Tier 1 and Tier 2 capital movement for First Half 2021
On 4 December 2020, Westpac issued $1.72 billion of Additional Tier 1 capital (Westpac Capital Notes 7), of
which approximately $0.87 billion comprised reinvestment by the holders of Westpac Capital Notes 3 (WCN 3).
On 22 March 2021, Westpac redeemed approximately $0.46 billion WCN 3 that remained on issue. The net impact
was an increase in Tier 1 capital of approximately 9 basis points.
During the half, Westpac issued US$2.5 billion and A$1.25 billion of Tier 2 capital. Westpac also redeemed
A$0.7 billion of Tier 2 capital instruments. The net impact was an increase in the total regulatory capital ratio of
approximately 90 basis points. These issues will assist to meet APRA’s increased total capital requirements that
must be achieved by 1 January 2024.
Leverage ratio
The leverage ratio represents the amount of Tier 1 capital relative to exposure
1
. At 31 March 2021, Westpac’s
leverage ratio was 6.27%, up 49 basis points since 30 September 2020.
Internationally comparable capital ratios
The APRA Basel III capital adequacy requirements are more conservative than those of the Basel Committee on
Banking Supervision (BCBS), leading to lower reported capital ratios when compared to international peers. APRA
conducted a study in July 2015 outlining its methodology for measuring international comparable capital ratios. For
details on the adjustments refer to Westpac’s 2021 Interim Investor Discussion Pack.
The table below calculates the Group’s reported capital ratios consistent with this methodology.
As atAs atAs at% Mov’t
31 March30 Sept31 MarchMar 21 -Mar 21 -
%202120202020Sept 20Mar 20
Internationally comparable capital ratios
CET 1 capital ratio 18.08% 16.50% 15.81% 158 bps 227 bps
Tier 1 capital ratio 20.98% 19.25% 18.55% 173 bps 243 bps
Total regulatory capital ratio 25.94% 23.19% 22.69% 275 bps 325 bps
Leverage ratio 6.87% 6.46% 6.28% 41 bps 59 bps
1. As defined under Attachment D of APS110: Capital Adequacy.

45WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
1

2
3
4
5
6
7
Review of Group operations
Risk Weighted Assets (RWA)
As atAs atAs at% Mov’t
31 March30 Sept31 MarchMar 21 -Mar 21 -
$m202120202020Sept 20Mar 20
Credit risk:
Corporate
1
66,086 73,666 78,288 (10)(16)
Business lending
2
34,061 36,777 34,493 (7)(1)
Sovereign
3
2,355 2,376 2,192 (1) 7
Bank
4
5,708 5,640 6,956 1 (18)
Residential mortgages 133,938 130,787 131,424 2 2
Australian credit cards 4,279 4,405 4,837 (3)(12)
Other retail 9,266 10,174 11,594 (9)(20)
Small business
5
16,097 16,977 16,812 (5)(4)
Specialised lending: Property and project finance
6
55,314 57,019 56,004 (3)(1)
Securitisation
7
5,513 5,413 5,747 2 (4)
Standardised 8,091 8,853 9,506 (9)(15)
Mark-to-market related credit risk 6,419 7,302 11,289 (12)(43)
Total credit risk 347,127 359,389 369,142 (3)(6)
Market risk 9,490 8,761 8,396 8 13
Operational risk
8
54,090 54,090 54,093 - -
Interest rate risk in the banking book (IRRBB) 11,998 9,124 5,305 31 126
Other 6,194 6,541 6,969 (5)(11)
Total risk weighted assets 428,899 437,905 443,905 (2)(3)
Total RWA decreased $9.0 billion or 2.1% over the half from lower credit risk RWA partially offset by an increase in
non-credit RWA.
The $12.3 billion decline in credit risk RWA included:
• A $1.6 billion decrease from lower lending, mostly from the further reduction in Trade Finance in Asia, as we
consolidated our international operations along with lower personal, auto and business lending. This was
partially offset by an increase in residential mortgage exposure over the half;
• A $4.4 billion decrease from improved credit metrics driven by lower stressed assets, mainly across small
business and corporate lending;
• A $1.6 billion reduction in the RWA overlay for corporate, business and specialised lending. This overlay balance
is currently $0.4 billion and was established in June 2020 to take account of facilities where reviews had not
been completed. The overlay will be reassessed as customer reviews are completed;
• A methodology change within business lending which decreased RWA by $1.0 billion;
• Foreign currency translation impacts which decreased RWA by $1.4 billion mostly from the appreciation of the
A$ against the US$ and NZ$; and
• A decrease in credit RWA associated with derivative exposures (counterparty credit risk and mark-to-market
related credit risk) of $2.3 billion mainly due to market and collateral movements.
At 31 March 2021 Westpac applied a floor of 23.8% to its mortgage risk weights in response to the temporary
positive effects of COVID-19 stimulus and support measures on customer account behaviours. The floor is
consistent with the mortgage risk weight at 30 September 2020 and has resulted in a $3.7 billion increase in
mortgage RWA.
Non-credit risk RWA increased by $3.3 billion mainly due to a $2.9 billion increase in Interest Rate Risk in the
Banking Book (IRRBB). IRRBB has increased as the embedded gain balance has declined over the period as
historical interest rate hedges that were entered into at higher interest rates have matured.
1. Corporate – typically includes exposure where the borrower has annual turnover greater than $50 million, and other business exposures
not captured under the definitions of either Business lending or Small Business.
2. Business lending – includes exposures not captured elsewhere where the borrower has annual turnover less than or equal to $50 million.
3. Sovereign – includes exposures to governments themselves and other non-commercial enterprises that are owned or controlled by
them.
4. Bank – includes exposures to licensed banks and their owned or controlled subsidiaries, and overseas central banks.
5. Small business – program managed business lending exposures.
6. Specialised lending – property and project finance – includes exposures to entities created to finance and/or operates specific assets
where, apart from the income received from the assets being financed, the borrower has little or no independent capacity to repay from
other activities or assets.
7. Securitisation – exposures reflect Westpac’s involvement in activities ranging from originator to investor and include the provision of
securitisation services for clients wishing to access capital markets.
8. Operational risk – the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events,
including legal risk but excluding strategic or reputational risk.

46WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
Review of Group operations
Capital adequacy
As atAs atAs at
31 March30 Sept31 March
$m202120202020
Tier 1 capital
CET 1 capital
Paid up ordinary capital 41,604 40,509 40,503
Treasury shares(660)(620)(619)
Equity based remuneration 1,731 1,661 1,645
Foreign currency translation reserve(519)(309) 59
Accumulated other comprehensive income 507 126 (190)
Non-controlling interests - other 49 57 61
Retained earnings 29,097 26,533 25,985
Less retained earnings in life and general insurance, funds management and securitisation
entities(1,680)(1,132)(1,326)
Deferred fees 230 214 229
Total CET 1 capital 70,359 67,0 3 9 66,347
Deductions from CET 1 capital
Goodwill (excluding funds management entities)(8,529)(8,532)(8,673)
Deferred tax assets(2,260)(2,963)(2,610)
Goodwill in life and general insurance, funds management and securitisation entities(451)(535)(935)
Capitalised expenditure(1,749)(1,576)(1,656)
Capitalised software(2,049)(2,137)(2,029)
Investments in subsidiaries not consolidated for regulatory purposes(2,063)(1,941)(1,633)
Regulatory expected downturn loss in excess of eligible provisions(93)(40)-
Defined benefit superannuation fund surplus(69)(71)(80)
Equity investments(162)(492)(327)
Regulatory adjustments to fair value positions(1)(18)(407)
Other Tier 1 deductions(1)(1)(15)
Total deductions from CET 1 capital(17,427)(18,306)(18,365)
Total CET 1 capital after deductions 52,932 48,733 47,982
Additional Tier 1 capital
Basel III complying instruments 9,493 9,206 9,473
Total Additional Tier 1 capital 9,493 9,206 9,473
Deductions from Additional Tier 1 capital
Holdings of own and other financial institutions Additional Tier 1 capital instruments(25)- -
Total deductions from Additional Tier 1 capital(25)- -
Net Additional Tier 1 regulatory capital 9,468 9,206 9,473
Net Tier 1 regulatory capital 62,400 57,939 57,455
Tier 2 capital
Basel III complying instruments 16,373 13,161 14,455
Basel III transitional instruments 462 494 567
Eligible general reserve for credit loss 161 397 79
Total Tier 2 capital 16,996 14,052 15,101
Deductions from Tier 2 capital
Investments in subsidiaries not consolidated for regulatory purposes(140)(140)(140)
Holdings of own and other financial institutions Tier 2 capital instruments(199)(121)(102)
Total deductions from Tier 2 capital(339)(261)(242)
Net Tier 2 regulatory capital 16,657 13,791 14,859
Total regulatory capital 79,057 71,730 72,314
Risk weighted assets 428,899 437,905 443,905
CET 1 capital ratio 12.34% 11.13% 10.81%
Additional Tier 1 capital ratio 2.21% 2.10% 2.13%
Tier 1 capital ratio 14.55% 13.23% 12.94%
Tier 2 capital ratio 3.88% 3.15% 3.35%
Total regulatory capital ratio 18.43% 16.38% 16.29%

47WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
1

2
3
4
5
6
7
Review of Group operations
Dividends
As atAs atAs at% Mov’t
31 March30 Sept31 MarchMar 21 -Mar 21 -
Ordinary dividend (cents per share)202120202020Sept 20Mar 20
Interim (fully franked) 58 - - - -
Final (fully franked)- 31 - (100)-
Total ordinary dividend 58 31 - 87 -
Payout ratio (reported) 61.75% 101.65%- large-
Payout ratio (cash earnings) 60.16% 69.33%- large-
Adjusted franking credit balance ($m) 3,560 3,448 2,881 3 24
Imputation credit (cents per share - NZ) 7.0 7.0 - - -
The Board has determined an interim fully franked dividend of 58 cents per share, to be paid on 25 June 2021 to
shareholders on the register at the record date of 14 May 2021
1
. The 2021 interim dividend represents a payout
ratio on a cash earnings basis of 60.16%. In addition to being fully franked, the dividend will also carry NZ$0.07 in
New Zealand imputation credits that may be used by New Zealand tax residents.
The Board has determined to satisfy the DRP for the 2021 interim dividend by arranging for the purchase of
existing shares by a third party. The Market Price used to determine the number of shares allocated to DRP
participants will be set over the 10 trading days commencing on 19 May 2021 and will not include a discount.
Capital deduction for regulatory expected credit loss
For capital adequacy purposes APRA requires the amount of regulatory expected credit losses in excess of eligible
provisions to be deducted from CET1 capital. The table below shows the calculation of this capital deduction.
As atAs atAs at
31 March30 Sept31 March
$m202120202020
Provisions associated with eligible portfolios
Total provisions for expected credit losses (Section 4, Note 10) 5,508 6,163 5,791
plus provisions associated with partial write-offs 20 26 41
less ineligible provisions
2
(106)(118)(129)
Total eligible provisions 5,422 6,071 5,703
Regulatory expected downturn loss 5,419 5,801 5,540
(Excess)/shortfall in eligible provisions compared to regulatory expected downturn loss(3)(270)(163)
CET 1 capital deduction for regulatory expected downturn loss in excess of eligible provisions
3
(93)(40)-
1. Record date in New York is 13 May 2021.
2. Provisions associated with portfolios subject to the Basel standardised approach to credit risk are not eligible.
3. Regulatory expected loss is calculated for portfolios subject to the Basel advanced capital IRB approach to credit risk. The comparison
between regulatory expected loss and eligible provisions is performed separately for defaulted and non-defaulted exposures.

48WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
Review of Group operations
2.6 Sustainability performance
Helping Australians and New Zealanders succeed: Our Sustainability Strategy
This year marks the start of Westpac Group’s refreshed Sustainability Strategy which sets out how we can best
serve our customers, communities and nation, and contribute to solving global challenges over the next three
years.
Our Sustainability Strategy is centred around three areas:
• helping when it matters most;
• backing a stronger Australia; and
• collaborating for impact.
The table below summarises progress in the last six months against the goals set out in the Group’s Sustainability
Strategy.
Priorities and
ambitionsTargeted OutcomesFirst Half 2021 performance
Helping when
it matters
most:
supporting
customers and
businesses
through times
of change and
hardship.
Providing emergency and
longer-term financial support
to help people and businesses
recover and adapt to changes in
their circumstances.
• 276 customers supported with natural disaster relief packages;
• announced a $10 million Flood Support Fund to provide emergency
grants for customers in flood-affected areas across New South Wales
and South-East Queensland;
• donated $150,000 to the Salvation Army to help support
disaster recovery in flood affected areas; and
• launched the Disaster Help Hub in November 2020, to provide
guidance on preparing homes and accessing disaster support
and financial resources to help during recovery, with 52,744
visits to the hub.
Supporting vulnerable
customers in difficult personal
and financial circumstances
(including those affected by
domestic and family abuse,
financial abuse, frauds and
scams) to manage, recover and
find appropriate solutions.
• Over 18,000 customers received assistance through vulnerability
specialist teams;
• formed a new partnership with national social enterprise, The
Violet Initiative, to provide caregivers and their families greater
access to emotional and practical support when caring for a
family member or friend in the last stage of life; and
• announced new measures to make digital banking safer for
customers, including giving customers the ability to report
abusive messages via online and mobile banking, and blocking
inappropriate language from outgoing payments.
Review of Group
operations

49WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
1

2
3
4
5
6
7
Review of Group operations
Priorities and
ambitionsTargeted OutcomesFirst Half 2021 performance
Helping when
it matters
most:
supporting
financial
wellbeing.
Supporting the financial
wellbeing of customers and
communities through products,
services and resources to help
them in life moments big and
small.
• Continued to offer a range of resources and tools, including access
to podcasts and a financial fitness course through the Davidson
Institute.
Improving banking accessibility
for Indigenous Australians,
including for customers
accessing Yuri Ingkarninthi,
our dedicated Indigenous
Connection Team.
• Improved banking accessibility for over 4,500 Indigenous and
remote Australians through Yuri Ingkarninthi, our Indigenous
Connection Team.
Supporting young people to
build confidence and knowledge
in preparation for their future
financial decisions.
• Continued to offer a spend and save program that helps young
Australians become more conscious about both their spending and
saving habits, whilst earning a competitive rate of interest.
Backing a
stronger
Australia:
backing
people, jobs
and ideas
shaping
Australia’s
future.
Supporting diverse Australian
businesses and social
enterprises, including Indigenous
entrepreneurs and communities
seeking to build their own
businesses.
• $5.5 million spend with diverse suppliers, of which $1 million are
Indigenous-owned businesses.
Creating employment and
educational opportunities for
people who have the drive to
shape Australia, including our
Westpac Scholars.
• Westpac Scholars Trust¹ has awarded 100 new scholarships.
Job creation opportunities for
vulnerable and under-employed
people across our value chain.
• From 1 July to 31 December 2020, Westpac Foundation
2
job creation
grants to social enterprises helped to create 614 jobs
3
for vulnerable
Australians.
Supporting our corporate and
institutional customers move
to more sustainable business
models through sustainable
finance structures that connect
their financing requirements and
sustainability priorities.
• Announced the structuring of a A$350 million sustainability-linked
loan (SLL) facility for G8 Education, Australia’s largest publicly listed
early childhood care and education company.
Backing a
stronger
Australia:
helping
Australians
respond
to climate
change.
Supporting solutions and
technology that accelerate
the transition to a low carbon
economy.
• $0.5 billion of new lending to climate change solutions.
Reducing our direct
environmental footprint.
• On track to reduce our Scope 1 and 2 emissions by 50% and Scope 3
supply chain emissions by 15% compared to Full Year 2016 baseline.
1. Westpac Scholars Trust (ABN 35 600 251 071) is administered by Westpac Scholars Limited (ABN 72 168 847 041) as trustee for the
Westpac Scholars Trust. Westpac Scholars Trust is a private charitable trust and neither the Trust nor the Trustee are part of Westpac
Group. Westpac provides administrative support, skilled volunteering, and funding for operational costs of Westpac Scholars Trust.
2. Westpac Foundation is administered by Westpac Community Limited (ABN 34 086 862 795) as trustee for Westpac Community Trust
(ABN 53 265 036 982). The Westpac Community Trust is a Public Ancillary Fund, endorsed by the ATO as a Deductible Gift Recipient.
None of Westpac Foundation, Westpac Community Trust Limited nor the Westpac Community Trust are part of Westpac Group.
Westpac provides administrative support, skilled volunteering, donations and funding for operational costs of Westpac Foundation.
3. Jobs created through the Westpac Foundation job creation grants to social enterprises are for the six months ended 31 December 2020.

50WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
Review of Group operations
Priorities and
ambitionsTargeted OutcomesFirst Half 2021 performance
Collaborating
for impact:
respecting
human rights
and amplifying
Indigenous
voices.
Sharing insights as we deliver
on the commitments under
our 2023 Human Rights Action
Plan and work towards the
elimination of modern slavery
across our business operations
and supply chain.
• Published our 2020 Modern Slavery Statement in response to the
Australian Modern Slavery Act 2018 (Cth) and the United Kingdom’s
Modern Slavery Act 2015 (UK);
• continued to implement a Vulnerable Customer Mental Health
Framework, providing extra support and escalation pathways for our
people who support customers at increased risk of vulnerability due
to the financial and societal impacts of COVID-19; and
• refreshed our Inclusion and Diversity Strategy, including a focus
on women in leadership, cultural diversity and Indigenous parity.
Safeguarding children from
online child exploitation through
our Safer Children Safer
Communities program, including
investing up to $10 million per
year for three years in child
protection initiatives.
• Allocated $9.7million, of which $4.2 million was invested in First Half
2021, to raise awareness of child exploitation and support child
protection initiatives as part of our commitment to invest up to $10
million per year for three years in child protection initiatives.
Supporting the empowerment
of Aboriginal and Torres Strait
Islander people through self-
determination, amplifying their
voices and building cultural
competency amongst our
people and partners to progress
Reconciliation.
• Hosted a Deadly Talk with Aboriginal and Torres Strait Islander
leaders to support employee cultural awareness; and
• refreshed our cultural competency training, enabling our people to
be able to better support our Aboriginal and Torres Strait Islander
customers.
Collaborating
for impact:
supporting
the transition
to a climate
resilient future.
Sharing insights as we work
with customers in the most
emissions intensive and climate-
vulnerable sectors to develop
financing strategies that can
support their response to
climate change impacts.
• Updated our lending approach to customers in the oil and gas
sector¹ (see Climate-related financial disclosures, below).
Aligning our financing activity
with efforts to support the goals
of the Paris Agreement.
Participating in international,
national and industry-
based initiatives to progress
collective action on climate
change, including sharing
methodologies and investing in
research, in support of the goals
of the Paris Agreement.
• Actively engaged with the UN Principles for Responsible
Banking, helping to establish a global banking Civil Society
Advisory Body and Australian Sustainable Finance Initiative to
develop the Australian Sustainable Finance Roadmap.
1. This applies to WIB oil and gas exploration, production and refining customers.

51WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
1

2
3
4
5
6
7
Review of Group operations
2.6.1 Climate-related financial disclosures
Westpac Group is committed to managing our business in alignment with the Paris Agreement and the need to
transition to a net zero emissions economy by 2050. The Group continues to integrate the consideration of climate-
related risks and opportunities into our business operations. A summary of Westpac Group’s performance against
the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) is provided below.
Oversight
The Board has oversight of the Group’s approach to and management of climate change. Our Climate Change
Position Statement and Action Plan (Climate Action Plan)
1
is approved by the Board every three years. Updates on
progress are provided on a twice-yearly basis.
The Board Risk Committee (BRC) considers and approves Westpac’s Sustainability Risk Management Framework
(SRMF), which includes climate change risk, at least every two years. Quarterly updates to the BRC on climate
change risk commenced from April 2021.
Implementation and management of the Climate Action Plan is led by Group Executives. A newly-established
Reputation and Sustainability Risk team has taken accountability for the Group’s framework for managing
reputation and sustainability risk. To ensure appropriate arrangements remain in place, work has commenced to
review oversight arrangements in place of the Group Sustainability Council.
The Climate Change Financial Risk Committee focusses on work to identify and manage climate-related financial
risks, including the potential impact on credit exposures from climate change-related transition and physical risks.
The Committee is chaired by the Group Chief Credit Officer and is a sub-committee of the Group Credit Risk
Committee.
An Environment Management Committee chaired by the Chief Property Officer is held quarterly to set and track
strategies and initiatives to reduce the Group’s direct environmental footprint, particularly targets around energy
and emissions.
Divisional risk committees consider the climate change dimensions of business activities as required. The WIB
ESG Risk Committee considers transactions requiring enhanced environmental, social and governance (‘ESG’) due
diligence, including for climate change risk.
Strategy
The Climate Action Plan describes Westpac’s climate change strategy. The strategy is underpinned by principles
which recognise that:
• a transition to a net zero emissions economy is required by 2050;
• economic growth and emissions reductions are complementary goals;
• addressing climate change creates opportunities;
• climate-related risk is a financial risk; and
• collective action, transparency and disclosure matter.
The Climate Action Plan identifies three focus areas where the Group is expected to direct its attention over the
short, medium and long term:
• help customers and communities respond to climate change;
• improve the climate change performance of our operations; and
• support initiatives and policies to achieve the goals of the Paris Agreement.
Risk management overview
Westpac Group’s Climate Action Plan sets out our overall approach to managing climate-related risks. Climate
change risks are managed within the Group’s risk management framework including the SRMF, Group ESG Credit
Policy and Risk Appetite Statements. We seek to understand the potential for climate-related transition, physical
and litigation risks to impact our business, including the possible impact on credit risk, regulatory and reporting
obligations, and our reputation. Climate change is included in the Group Risk Taxonomy under the credit risk, and
reputational and sustainability risk categories. The Group regularly reviews this framework and ensures relevant
aspects are appropriately reflected in the Climate Action Plan.
The Climate Action Plan sets out specific climate-related lending criteria which are applied at the portfolio and
customer level where appropriate. If climate-related risks associated with a transaction are not within appetite
then the application of conditions to sufficiently manage the risks will be considered, or the transaction may be
declined. Climate-related risks may be escalated to relevant divisional and Group risk committees in accordance
with the SRMF.
During First Half 2021, APRA commenced engagement with Westpac and other major Australian banks on its
Climate Vulnerability Assessment. The Climate Vulnerability Assessment is expected to focus on stress testing
material parts of Westpac’s credit strategy, under two climate scenarios focussed on transition and physical risk.
A qualitative assessment of operational, market and liquidity risk, and data quality is also expected. The ADIs
are engaged with APRA, directly and via the ABA on the final design of the Climate Vulnerability Assessment
1. The term ‘Climate Action Plan’ as used in this document refers to the most recent version: Climate Change Position Statement and 2023
Action Plan.

52WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
Review of Group operations
and have commenced preparations to respond. We will continue to evolve our approach to climate change risk
management as required to align with changes in legal and regulatory requirements. In April APRA released a draft
Prudential Practice Guide – Draft CPG 229 Climate Change Financial Risks (PPG) which sets out guidance on better
practice in management of climate change financial risks. The draft PPG focusses on identification, measurement,
monitoring, management and reporting of climate-related risks, and the role of scenario analysis, and is broadly
aligned with the recommendations of the Taskforce on Climate-related Disclosures. We will review our current
practices and future plans in light of the draft guidance, and provide feedback to APRA as part of its consultation
process.
Scenario Analysis
Westpac used scenario analysis to inform our identification of industries exposed to climate-related risks over
short, medium and long-term horizons
1
- summary results are shown in the Metrics and Targets section, below. The
findings from scenario analysis conducted in 2019 are reflected in our current Climate Action Plan which outlines
enhanced lending standards for emissions-intensive sectors including management of lending exposure to thermal
coal mining customers (as defined in that document) to zero by 2030, and emissions reduction targets for lending
to the electricity generation sector to support Paris-aligned transition pathways.
In line with our Climate Action Plan we progressed analysis to further understand material climate-related risks in
two areas of our portfolio during the First Half 2021: transition risk in the oil and gas sector, and physical risk in the
mortgage book.
Transition risk in the oil and gas sector
We completed an initial study of how global oil and gas demand might perform when carbon emissions are
constrained in line with ‘well-below’ 2-degree and 1.5-degree transition pathways
2
.
Based on our initial findings we have updated our approach and internal ESG criteria by which climate-related risks
and opportunities are assessed in the oil and gas sector, with a focus on WIB’s oil and gas exploration, production
and refining customers.
Our updated approach means we will:
• expect any new oil and gas exploration, production and refining customers, to whom we provide lending, to
have publicly disclosed Paris-aligned business goals;
• continue to support existing customers (particularly via sustainable finance structures) to develop Paris-aligned
financing strategies using our internal ESG criteria to guide our approach; and
• continue to develop our approach and understanding of climate-related risk and opportunities in the oil and gas
sector (including downstream segments) through engagement with our customers
3
.
We will continue to provide annual updates on our progress.
Physical risk in the Australian mortgage book
We updated our approach to assessing the impact of extreme weather events under climate change scenarios on
our Australian mortgage portfolio
4
. The analysis:
• used a generalised model of how extreme weather and climate change may affect a number of physical risks to
a ‘Representative Property’ (an archetype of a modern Australian home) under a 4-degree scenario
5
;
• considered riverine flooding, coastal inundation, forest fires, extreme wind and soil subsidence;
• computed physical risk for each year from 1990 to 2100, allowing us to identify the potential impacts of current
and future extreme weather and climate change;
• modelled a ‘static’ balance sheet with no population growth or movement, and did not consider the impact of
adaptation measures or management actions to mitigate risks; and
• identified locations that may be at higher risk
6
and assessed the Group’s current exposure to these locations.
The analysis suggests that while climate change will drive an ongoing increase in annual average losses over time,
Westpac’s exposure in the Australian mortgage portfolio to locations identified as likely to be exposed to higher
physical risks under a RCP8.5 scenario is around 1.7% of the current portfolio, increasing to around 2.0% by 2050.
Westpac understands the importance of both climate mitigation and adaptation efforts, including government and
community planning measures, and the benefits of climate-resilient building characteristics to reduce property
damage and impacts on customers, communities and shareholders. We continue to advocate for more research
and investment into helping communities adapt and become resilient to climate-related impacts. The updated
analysis is being used to improve our understanding of how to help individual customers respond to the impacts of
climate change and in the potential for climate change to impact on loan serviceability and property values. We will
continue to provide regular updates on our progress.
1. Further details explaining the Group’s approach to scenario analysis can be found in Westpac’s 2020 Sustainability Performance Report
2. The ‘well below’ 2-degree scenario used the International Energy Agency’s Sustainable Development Scenario (SDS-2019) and the
1.5-degree scenario used the Asia-Pacific Integrated Model Shared Socio-Economic Pathways (AIM/CGE 2.0 SSP1-19) model.
3. Initial focus on WIB customers.
4. Excludes RAMS and Equity Acess.
5. IPCC RCP8.5 scenario.
6. ‘Higher risk’ were locations where insurance may become more expensive or unavailable.

53WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
1

2
3
4
5
6
7
Review of Group operations
Metrics and targets
MetricsHalf Year 2021 performance
Support for climate solutions
• New lending to climate solutions
(cumulative from September
2020)
• Lending to climate solutions
(TCE)
• $0.5 billion vs 2023 target - $3.5 billion
• $10 billion
Energy generation
1

• Emission intensity of electricity
generation portfolio
• Energy mix of electricity
generation exposure (WIB only)
• 0.25 (tCO2-e/MWh) vs 2023 target 0.23 (tCO2-e/MWh)
• 75% renewable versus 25% non-renewables.
Mining and coal exposure
• Lending to mining (TCE)
• Lending to coal mining
(metallurgical and thermal) (TCE)
• Lending to thermal coal mining %
of coal mining
2

• Thermal coal mining portfolio
quality thresholds
• Oil and gas extraction (TCE)
• $8.0 billion mining exposure representing 0.75% of Group TCE
• $0.5 billion lending to coal mining representing 0.05 % of Group TCE
• 56%
• Coal quality
–Existing projects > 5,700 kCal/kg – Consistent with Climate Action
Plan
–New projects > 6,300 kCal/Kg - Consistent with Climate Action Plan
• $2.3 billion lending to oil and gas extraction representing 0.22% of Group
TCE
3
Climate change portfolio resilience
– scenario analysis
• Transition risk
4
• 1.2% of current Australian Business and Institutional portfolio exposed
to sectors which by 2030 may face relatively higher growth constraints
under a 1.5-degrees scenario.
• 2.5% of current Australian Business and Institutional portfolio exposed
to sectors which by 2050 may face relatively higher growth constraints
under a 1.5-degrees scenario.
• 0.7% of current Australian Business and Institutional portfolio exposed
to sectors which by 2030 may face relatively higher growth constraints
under a 2-degrees scenario.
• 2.0% of current Australian Business and Institutional portfolio exposed
to sectors which by 2050 may face relatively higher growth constraints
under a 2-degrees scenario.
• Physical risk• 2.0% of current Australian mortgage portfolio
5
which by 2050 may be
exposed to higher physical risks under a RCP8.5 scenario.
1. Metrics updated annually. Data as at 30 September, 2020.
2. Thermal coal mining exposure as % of coal mining - WIB only
3. The reduction in lending to oil and gas extraction from September 2020 is mainly due to the consolidation of Westpac’s international
operations.
4. Excludes retail, sovereign, and bank exposures. Sectors whose medium (2030) and long-term (2050) performance under a scenario
deviated by more than one standard deviation below average GDP growth, were classified as ‘may face relatively higher growth
constraints’.
5. Excludes RAMS and Equity Access. The methodology to assess climate-related physical risk in our Australian mortgage portfolio has
been updated in First Half 2021. See ‘Scenario analysis’ above, for more details.

54WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
Divisional results
Divisional results
3.0 Divisional results
Notable items
The table below shows the impact of notable items on the divisions by the relevant period. Notable items are
discussed in Section 2.1.
Half Year March 2021
ConsumerBusiness
Westpac
Institutional
Bank
Westpac
New
Zealand
(A$)
Group
BusinessesGroup

$m
Specialist
Businesses
Net interest income- 74 - (3)- - 71
Non-interest income(3) 1 - (5) 1 378 372
Operating expenses(106)(40)(37)(6)(336)(220)(745)
Core earnings(109) 35 (37)(14)(335) 158 (302)
Income tax (expense)/benefit and NCI 33 (10) 11 4 38 (56) 20
Cash earnings(76) 25 (26)(10)(297) 102 (282)
Half Year Sept 2020
ConsumerBusiness
Westpac
Institutional
Bank
Westpac
New
Zealand
(A$)
Group
BusinessesGroup

$m
Specialist
Businesses
Net interest income- (34)- (3)- - (37)
Non-interest income 4 (3)- (4)(305) 273 (35)
Operating expenses(31)(106)- 1 (653)(494)(1,283)
Core earnings(27)(143)- (6)(958)(221)(1,355)
Income tax (expense)/benefit and NCI 8 43 - 2 138 (56) 135
Cash earnings(19)(100)- (4)(820)(277)(1,220)
Half Year March 2020
ConsumerBusiness
Westpac
Institutional
Bank
Westpac
New
Zealand
(A$)
Group
BusinessesGroup

$m
Specialist
Businesses
Net interest income 5 (107)- (4)- - (106)
Non-interest income- 5 - (3)(104)(126)(228)
Operating expenses(33)(24)- - (41)(1,158)(1,256)
Core earnings(28)(126)- (7)(145)(1,284)(1,590)
Income tax (expense)/benefit and NCI 8 38 - 2 43 100 191
Cash earnings(20)(88)- (5)(102)(1,184)(1,399)

55WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
1
2
3
4
5
6
7
Divisional results
3.1 Consumer
Consumer is responsible for sales and service of banking products, including mortgages, credit cards, personal
loans, and savings and deposit products to consumers in Australia. Products are provided under the Westpac,
St.George, BankSA, Bank of Melbourne, and RAMS brands. Consumer works with the other operating divisions in
Australia in the sales, service, and referral of certain specialist financial services such as auto lending and foreign
exchange.
Half YearHalf YearHalf Year% Mov’t
MarchSeptMarchMar 21 -Mar 21 -
$m202120202020Sept 20Mar 20
Net interest income 4,216 4,313 4,234 (2)-
Non-interest income 241 247 326 (2)(26)
Net operating income 4,457 4,560 4,560 (2)(2)
Operating expenses(2,270)(2,141)(2,035) 6 12
Core earnings 2,187 2,419 2,525 (10)(13)
Impairment (charges)/benefits 80 (599)(416)largelarge
Profit before income tax expense 2,267 1,820 2,109 25 7
Income tax expense and non-controlling interests (NCI)(675)(546)(637) 24 6
Cash earnings 1,592 1,274 1,472 25 8
Add back notable items 76 19 20 largelarge
Cash earnings excluding notable items 1,668 1,293 1,492 29 12
Expense to income ratio 50.93% 46.95% 44.63% 398 bpslarge
Net interest margin 2.39% 2.41% 2.33%(2 bps) 6 bps
As atAs atAs at% Mov’t
31 March30 Sept31 MarchMar 21 -Mar 21 -
$bn202120202020Sept 20Mar 20
Customer deposits
Term deposits 42.3 47.5 50.0 (11)(15)
Other 180.8 171.8 158.4 5 14
Total customer deposits 223.1 219.3 208.4 2 7
Net loans
Mortgages 387.9 382.4 385.8 1 1
Other 8.9 9.3 11.4 (4)(22)
Provisions(1.7)(1.9)(1.6)(11) 6
Total net loans 395.1 389.8 395.6 1 -
Deposit to loan ratio 56.47% 56.26% 52.68% 21 bps 379 bps
Total assets 403.3 398.3 404.3 1 -
TCE 466.5 460.4 464.2 1 -
Average interest earning assets
1
354.4 358.2 363.6 (1)(3)
Credit quality
Half YearHalf YearHalf Year
31 March30 Sept31 March
%202120202020
Impairment charges/(benefits) to average loans annualised
2
(0.04%) 0.30% 0.21%
Mortgage 90+ day delinquencies 1.18% 1.60% 0.94%
Other consumer loans 90+ day delinquencies 1.65% 1.69% 1.96%
Total stressed exposures to TCE 1.02% 1.38% 0.83%
1. Averages are based on a six month period.
2. The presented ratios are based on a six month period.

56WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
Divisional results
Financial performance
First Half 2021 – Second Half 2020
Cash earnings of $1,592 million were $318 million or 25% higher than Second Half 2020. Excluding notable items,
cash earnings were $375 million higher, mostly due to an impairment benefit of $80 million in First Half 2021
compared to a $599 million impairment charge in Second Half 2020.
Net interest
income down
$97m, 2%
• Net loans increased 1% (or $5.3 billion) over the half. The increase in mortgage lending (up
$5.5 billion) was due to targeted campaigns and more digital applications. Other personal
lending declined $0.4 billion (or 4%) from customers paying down this form of debt;
• Deposits increased 2% (or $3.8 billion), with growth in at call balances as customers chose
to hold less of their funds in term deposits; and
• Net interest margin was 2 basis points lower. Mortgage spreads were down from lower
spreads on new mortgages, particularly fixed rate mortgages, and retention pricing. This
was partly offset by lower funding costs along with higher deposit spreads.
Non-interest
income down
$6m, 2%
• Most of the decline was due to fees paid to a third party following the sale of our offsite
ATMs and lower fee income from the removal of certain fees as part of our simplification
strategy.
Expenses
up $129m, 6%
• Notable items increased expenses $75 million. Excluding this, expenses were up $54 million.
The increase was due to:
–Higher spending on risk and compliance programs, including financial crime, fraud
prevention and our financial and non-financial risk programs; and
–Increase in mortgage processing costs and additional resources to support customers,
in particular customers exiting deferral packages and experiencing hardship.
• These increases were partly offset by savings from further use of our digital channels,
organisation redesign, a reduction in our branch network (40 branches were closed in
First Half 2021, adding to the 24 branches closed in 2020), and a reduction in our ATM
network. Restructuring costs were also lower.
Impairment
benefit of $80m
compared to
an impairment
charge of
$599m
• Impairment benefit from lower collectively assessed provisions from the improved
economic outlook and improved asset quality; and
• Mortgage 90+ day delinquencies of 1.18%, 42 basis points lower than September 2020
(1.60%) from reduced levels of hardship. Other consumer 90+ day delinquencies of 1.65%,
down 4 basis points over the half.

57WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
1
2
3
4
5
6
7
Divisional results
Financial performance
First Half 2021 – First Half 2020
Cash earnings of $1,592 million were $120 million or 8% higher than First Half 2020. Cash earnings excluding
notable items, were $176 million higher mostly due to an impairment benefit of $80 million in First Half 2021
compared to a $416 million impairment charge in First Half 2020, partly offset by lower non-interest income and
higher expenses.
Net interest
income down
$18m, flat
• Net loans were $0.5 billion lower over the year, with a $2.5 billion decline in other personal
lending partly offset by a $2.1 billion increase in mortgages, with an increase in owner
occupied loans partly offset by a decline in investor loans. Other personal lending declined
as customers continued to pay down this form of debt;
• Deposits increased 7% (or $14.7 billion), from growth in at call deposits including switching
from term deposits; and
• Net interest margin was 6 basis points higher from lower funding costs and higher deposit
spreads. These improvements were partly offset by elevated retention pricing, lower
spreads on new mortgages, lower other consumer lending, and lower interest rates.
Non-interest
income down
$85m, 26%
• Non-interest income was lower mostly from reduced activity following COVID-19
restrictions which reduced credit and debit card revenue and foreign ATM fees, while lower
international travel reduced foreign currency fees; and
• The removal of certain fees as part of our simplification strategy also contributed to the
decline.
Expenses up
$235m, 12%
• Excluding the impact of notable items, expenses were $162 million higher (or 8%) from:
–Increases from higher spending on risk, regulatory and compliance programs, annual
salary reviews, and increased mortgage processing costs from higher volumes and from
bringing jobs onshore; and
–These increases were partially offset by benefits from organisational redesign,
rationalisation of a further 40 branches, and the further use of digital channels.
Impairment
benefit of $80m
compared to
an impairment
charge of
$416m
• Impairment benefit from lower collectively assessed provisions from the improved
economic outlook, lower write-offs, and a reduction in the other consumer lending
portfolios; and
• Mortgage 90+ day delinquencies of 1.18% were 24 basis points higher than March 2020
(0.94%) from an increase in customers requiring hardship support, including from those
customers who exited COVID-19 deferral packages. Other consumer 90+ day delinquencies
of 1.65%, decreased 31 basis points over the year.

58WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
Divisional results
3.2 Business
Business is responsible for sales and service of banking products for Australian SME and Commercial businesses
(including Agribusiness) generally up to $200 million in exposure. The division also includes Private Wealth,
meeting the personal banking needs of high net worth individuals. The division offers a wide range of banking
products and services to support their borrowing, savings and transaction needs. Specialist services including cash
flow finance, trade finance, equipment finance and property finance are also provided. Business operates under the
Westpac, St.George, BankSA, and Bank of Melbourne, brands. Business works with the other operating divisions
for select products and services including financial risk management products, corporate superannuation and
mortgages.
Half YearHalf YearHalf Year% Mov’t
MarchSeptMarchMar 21 -Mar 21 -
$m202120202020Sept 20Mar 20
Net interest income 2,083 2,019 2,144 3 (3)
Non-interest income 273 249 311 10 (12)
Net operating income 2,356 2,268 2,455 4 (4)
Operating expenses(1,170)(1,230)(1,068)(5) 10
Core earnings 1,186 1,038 1,387 14 (14)
Impairment (charges)/benefits 129 (674)(697)largelarge
Profit before income tax expense 1,315 364 690 large 91
Income tax expense and NCI(395)(108)(212)large 86
Cash earnings 920 256 478 large 92
Add back notable items(25) 100 88 largelarge
Cash earnings excluding notable items 895 356 566 151 58
Expense to income ratio 49.66% 54.23% 43.50%largelarge
Net interest margin 3.17% 2.93% 3.05% 24 bps 12 bps
As atAs atAs at% Mov’t
31 March30 Sept31 MarchMar 21 -Mar 21 -
$bn202120202020Sept 20Mar 20
Customer deposits
Term deposits 44.9 51.7 57.3 (13)(22)
Other 109.6 100.2 84.9 9 29
Total customer deposits 154.5 151.9 142.2 2 9
Net loans
Mortgages 55.7 58.5 59.9 (5)(7)
Business 80.6 83.9 86.1 (4)(6)
Other 0.6 0.5 0.7 20 (14)
Provisions(2.1)(2.2)(1.7)(5) 24
Total net loans 134.8 140.7 145.0 (4)(7)
Deposit to loan ratio 114.61% 107.96% 98.07%largelarge
Total assets 139.5 145.8 150.1 (4)(7)
TCE 176.2 182.6 184.0 (4)(4)
Average interest earning assets
1
132.0 137.6 140.5 (4)(6)
Credit quality
Half YearHalf YearHalf Year
31 March30 Sept31 March
%202120202020
Impairment charges/(benefits) to average loans annualised
2
(0.19%) 0.93% 0.95%
Mortgage 90+ day delinquencies 1.30% 1.72% 0.93%
Other consumer loans 90+ day delinquencies 1.24% 1.46% 1.29%
Business: impaired exposures to TCE 0.85% 1.08% 0.71%
Total stressed exposures to TCE 4.60% 4.70% 3.07%
1. Averages are based on a six month period.
2. The presented ratios are based on a six month period.

59WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
1
2
3
4
5
6
7
Divisional results
Financial performance
First Half 2021 – Second Half 2020
Cash earnings of $920 million were $664 million higher than Second Half 2020. Most of the improvement in cash
earnings was due to an impairment benefit of $129 million compared to an impairment charge of $674 million in
Second Half 2020. Lower notable items ($125 million reduction) also contributed to the increase in cash earnings.
Net interest
income up
$64m, 3%
• The rise in net interest income was due to lower notable items in First Half 2021 which were
$108 million lower than Second Half 2020. Excluding this, net interest income was down
$44 million (or 2%), with the higher net interest margin more than offset by lower lending;
• Net interest margin was 7 basis points higher excluding the impact of notable items
mostly from a change in the mix of deposits to transaction and other at call products, and
improved term deposit spreads;
• Net loans were 4% (or $5.9 billion) lower over the half across business lending and
mortgages. Business lending was lower across most sectors with the largest declines in
property and professional services; and
• Deposits were 2% (or $2.6 billion) higher with a $6.2 billion increase in transaction balances
and a $3.2 billion increase in other at call balances supported by government stimulus
measures and a customer preference to hold funds in transaction and other at call
accounts. This was partly offset by a decline in term deposits.
Non-interest
income up
$24m, 10%
• Notable items had little impact on non-interest income ($4 million lower) with the increase
mostly from higher merchant fees as fee waivers for COVID-19 support rolled off; and
• Other card revenue was also higher as activity and spending increased.
Expenses down
$60m, 5%
• Notable items were $66 million lower than Second Half 2020. Excluding this impact,
expenses were $6 million higher than Second Half 2020; and
• Most of the increase related to further spend on risk and compliance, with business as usual
increases were largely offset by benefits from productivity savings.
Impairment
benefit
of $129m
compared to
an impairment
charge of
$674m
• Impairment benefit from lower collectively assessed provisions from the improved
economic outlook and improved asset quality. Individually assessed provisions were also
lower in the half; and
• The level of stressed assets to TCE decreased 10 basis points to 4.60%, mostly from a
reduction in mortgage 90+ day delinquencies, and a decrease in watchlist and substandard
exposures in the Commercial portfolio.

60WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
Divisional results
First Half 2021 – First Half 2020
Cash earnings of $920 million were $442 million higher than First Half 2020. Most of the improvement was due to
an impairment benefit of $129 million compared to an impairment charge of $697 million in First Half 2020. Lower
notable items ($113 million) also contributed to the increase in cash earnings.
Net interest
income down
$61m, 3%
• Excluding notable items, net interest income was down $242 million (11%);
• Net loans were 7% (or $10.2 billion) lower over the year, with the decline from lower investor
mortgages and a 6% decline in business lending. Business lending was lower across most
sectors with the largest declines in property, professional services, and retail. Higher
provisions also contributed to the decline;
• Deposits were 9% (or $12.3 billion) higher over the year with a $16.1 billion rise in transaction
balances and a $8.6 billion increase in other at call balances supported by government
stimulus packages. This was partially offset by a $12.4 billion decline in term deposits given
a preference to retain funds in transaction and other at call accounts; and
• Net interest margin was 12 basis points higher, but down 15 basis points excluding notable
items. The lower margin was mostly from reduced deposit spreads from low interest rates
along with special low interest rates on certain products as part of our COVID-19 support.
These reductions were partly offset by deposit repricing and changes in deposit mix.
Non-interest
income down
$38m, 12%
• Notable items had little impact on movement in non-interest income (up $4 million); and
• Most of the decline was due to lower fees consistent with lower activity, a decline in
overdrawn fees, and lower markets related income.
Expenses up
$102m, 10%
• Notable items were $16 million higher than First Half 2020, excluding this impact, expenses
were $86 million higher than First Half 2020; and
• The increase was due to spending to support customers impacted by COVID-19, increased
spend on risk, regulatory and compliance programs and further investment in bankers.
Impairment
benefit
of $129m
compared to
an impairment
charge of
$697m
• Impairment benefit mostly from lower collectively assessed provisions from the improved
economic outlook. Individually assessed provisions were also lower in the half; and
• The level of stressed assets to TCE increased 153 basis points to 4.60%, mostly from an
increase in watchlist and substandard exposures in the Commercial portfolio.

61WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
1
2
3
4
5
6
7
Divisional results
3.3 Westpac Institutional Bank (WIB)
Westpac Institutional Bank (WIB) delivers a broad range of financial products and services to corporate,
institutional and government customers operating in, or with connections to, Australia and New Zealand. WIB
operates through dedicated industry relationship and specialist product teams, with expert knowledge in financing,
transactional banking, and financial and debt capital markets. Customers are supported throughout Australia
and via branches and subsidiaries located in New Zealand, the US, UK and Asia. WIB works with all the Group’s
operating divisions in the provision of markets’ related financial needs including foreign exchange and fixed interest
solutions.
Half YearHalf YearHalf Year% Mov’t
MarchSeptMarchMar 21 -Mar 21 -
$m202120202020Sept 20Mar 20
Net interest income 464 506 605 (8)(23)
Non-interest income 582 626 556 (7) 5
Net operating income 1,046 1,132 1,161 (8)(10)
Operating expenses(698)(697)(619)- 13
Core earnings 348 435 542 (20)(36)
Impairment charges(8)(111)(293)(93)(97)
Profit before income tax expense 340 324 249 5 37
Income tax expense and NCI(110)(139)(102)(21) 8
Cash earnings 230 185 147 24 56
Add back notable items 26 - - - -
Cash earnings excluding notable items 256 185 147 38 74
Expense to income ratio 66.73% 61.57% 53.32%largelarge
Net interest margin 1.27% 1.23% 1.46% 4 bps(19 bps)
As atAs atAs at% Mov’t
31 March30 Sept31 MarchMar 21 -Mar 21 -
$bn202120202020Sept 20Mar 20
Customer deposits 91.0 102.9 110.0 (12)(17)
Net loans
Loans 62.7 66.6 79.0 (6)(21)
Provisions(0.3)(0.4)(0.4)(25)(25)
Total net loans 62.4 66.2 78.6 (6)(21)
Deposit to loan ratio 145.83% 155.44% 139.95%largelarge
Total assets 74.8 75.5 109.4 (1)(32)
TCE 174.0 168.7 172.7 3 1
Average interest earning assets
1
73.4 82.1 82.9 (11)(11)
Impairment charges to average loans annualised 0.03% 0.31% 0.80%(28 bps)(77 bps)
Impaired exposures to TCE 0.14% 0.27% 0.15%(13 bps)(1 bps)
Total stressed exposures to TCE 0.56% 1.03% 1.09%(47 bps)(53 bps)
Revenue contribution
Half YearHalf YearHalf Year% Mov’t
MarchSeptMarchMar 21 -Mar 21 -
$m202120202020Sept 20Mar 20
Lending and deposit revenue 629 644 707 (2)(11)
Markets, sales and fee income 328 356 389 (8)(16)
Total customer revenue 957 1,000 1,096 (4)(13)
Derivative valuation adjustments 53 16 (93)largelarge
Trading revenue 75 148 174 (49)(57)
Other
2
(39)(32)(16) 22 144
Total WIB revenue 1,046 1,132 1,161 (8)(10)
1. Averages are based on a six month period.
2. Includes capital benefit and the Bank Levy.

62WESTPAC GROUP 2021 INTERIM FINANCIAL RESULTS
Divisional results
Financial performance
First Half 2021 – Second Half 2020
Cash earnings of $230 million were $45 million or 24% higher than Second Half 2020. Notable items reduced cash
earnings by $26 million in First Half 2021. Excluding notable items, cash earnings were $71 million or 38% higher
mostly from the lower impairment charge.
Net interest
income
down $42m, 8%
• Net loans decreased 6%, or $3.8 billion, (5% or $3.4 billion excluding FX movements).
Offshore lending was $2.8 billion lower, primarily in Asia, as the division began consolidating
its operations. Lending was also lower from a decline in customer drawdowns;
• Deposits were 12%, or $11.9 billion lower, (11% or $11.7 billion excluding FX movements),
mostly from lower at call balances. Disciplined pricing and customers seeking higher yields
in the low interest rate environment contributed to the decline. The decision to consolidate
our Asian operations contributed to a $3.4 billion decline in offshore deposits; and
• Net interest margin was up 4 basis points from a portfolio mix benefit in loans and deposits
(including reducing the offshore balance sheet), and improved lending and term deposit
spreads. This was partly offset by the effect of low interest rates on at call deposit spreads
and earnings on capital.
Non-interest
income
down $44m, 7%
• Markets revenue was down $85 million from lower non-customer Markets income mostly
from lower fixed income trading. Customer income was also lower as demand fell across all
segments; and
• Partly offset by $37 million higher positive derivative valuation adjustments and higher loan
fees, from an increase in undrawn balances.
Expenses up
$1m, flat
• Increased expenses in relation to software asset write-down (a notable item of $37 million),
higher software amortisation expenses and other technology costs were largely offset by
lower restructuring costs, lower professional services expenses and a 4% reduction in FTE.
Impairment
charges
down
$103m, 93%
• Decline was mostly due to lower new impaired assets. Collectively assessed provisions
were also lower from the better economic outlook and improved asset quality. Reduced
exposures also contributed to the reduction in collectively assessed provisions; and
• Stressed exposures to TCE of 0.56%, down 47 basis points compared to September 2020.
First Half 2021 – First Half 2020
Cash earnings of $230 million were $83 million or 56% higher than First Half 2020. Notable items reduced cash
earnings $26 million in First Half 2021. Excluding notable items, cash earnings were $109 million or 74% higher
mostly from lower impairment charges and a higher contribution from derivative valuation adjustments. These
gains were partly offset by lower income from a 19 basis point decline in net interest margin and lower Markets
revenue.
Net interest
income
down
$141m, 23%
• Net loans decreased 21% or $16.2 billion, (19% or $14.9 billion excluding FX movements),
primarily from a reduction in offshore lending, including lower trade finance in Asia and
from a prioritisation of return. Lending was also lower from a decline in utilisation levels
following a lift in lending in March 2020 as corporates sought to increase liquidity in
response to COVID-19;
• Deposits reduced 17% or $19.0 billion, (16% or $18.1 billion excluding FX movements).
Offshore deposits were $8.3 billion lower, mostly from the decision to consolidate our Asian
operations. Disciplined pricing and customers seeking higher yield in the low interest rate
environment contributed to the decline in onshore deposits; and
• Net interest margin was down 19 basis points, with lower interest rates reducing deposit
spreads and earnings on capital. This was partly offset by more disciplined lending and
deposit pricing and benefits from changes in the lending and deposit mix.
Non-interest
income
up $26m, 5%
• $146 million movement in derivative valuation adjustments ($53 million benefit in
First Half 2021 compared to a $93 million charge in First Half 2020);
• Higher undrawn loan fees; partly offset by
–Lower non-customer Markets income across FX and commodities including from the
closure of the energy desk along with lower customer Markets income from lower FX
sales and a decline in income in Asia; and
–A reduction in payments revenue due to lower transaction volumes, particularly offshore.
Expenses
up $79m, 13%
• Excluding notable items, expenses increased $42 million (or 7%) mostly due to increased
software amortisation, and higher risk and compliance related costs, including financial
crime.
Impairment
charges
down
$285m, 97%
• Lower collectively assessed provisions from an improvement in the economic outlook and
improved asset quality. Reduced exposure and a reduction in new impaired assets also
contributed to the lower impairment charge; and
• Stressed exposures to TCE of 0.56%, down 53 basis points compared to March 2020.