Westpac Banking Corporation/Announcement

Westpac 1H21 Presentation and Investor Discussion Pack

Investor Presentation2 May 2021WBCFinancials

ASX
Release

3 MAY 2021

Westpac 1H21 Presentation and Investor Discussion Pack

Westpac Banking Corporation (“Westpac”) today provides the attached Westpac
1H21 Presentation and Investor Discussion Pack.

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

Presentation
and Investor
Discussion Pack
2021 INTERIM FINANCIAL RESULTS
FOR THE SIX MONTHS ENDED 31 MARCH 2021
WESTPAC BANKING CORPORATION
ABN 33 007 457 141
Fix. Simplify. Perform.
Financial results throughout this presentation are in Australian dollars and are based on cash
earnings unless otherwise stated. Refer page 35 for definition. Results principally cover the
1H21, 2H20 and 1H20 periods. Comparison of 1H21 versus 2H20 (unless otherwise stated).

Westpac
2021 Interim
Results Index
2021 Interim Results Presentation3
Investor Discussion Pack of 2021 Interim Results30
Overview31
Strategy32
Results35
Customer franchise39
Risk governance44
Sustainability46
Earnings drivers51
Revenue52
Expenses55
Impairment charges56
Credit quality and provisions57
Australian mortgage asset quality70
Capital, Funding and Liquidity77
Divisional results85
Consumer87
Business88
Westpac Institutional Bank89
Westpac New Zealand90
Specialist Businesses94
Economics96
Appendix108
Contact us116
Disclaimer117

Financial results throughout this presentation are in Australian dollars and are based on cash earnings unless otherwise stated.
Refer page 30 for definition. Results principally cover the 1H20, 2H19 and 1H19 periods.
Comparison of 1H20 versus 2H19 (unless otherwise stated).
Peter King
Chief Executive Officer

1H21 Results –Overview.
Earnings
Good progress
on strategic
priorities
4
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
Balance sheet
strength
•Cash earnings $3.5bn, up $1.9bn
•Cash ROE 10%
•Economy significantly better than expected last year
•Mortgages – on track for major bank system growth in 2H21
•Simplifying portfolio – 3 more sales
•Cost reset commenced
•CORE program expanded – financial and non-financial risk
•Asset quality metrics improved
•CET1 capital ratio at 12.34%
•1H21 dividend of 58 cents per share – 60% payout
4

1H21 Earnings snapshot.
1 Cash earnings is a measure of profit generated from ongoing operations for further detail see page 35 and 109. 2 Cash EPS is cash earnings divided by weighted average ordinary shares. 3 Return on equity is cash earnings divided by average
ordinary equity. 4 Cash earnings basis. 5 References to notable items in this slide include provisions related to AUSTRAC proceedings; estimated customer refunds, costs and litigation; write-down of intangible items; and asset sales/revaluations.
1H202H201H21
Change
1H21–2H20
Change
1H21–1H20
Reported net profit$1,190m$1,100m$3,443m213%189%
Cash earnings
1
$993m$1,615m$3,537m119%256%
Impairment (charge)/benefit($2,238m)($940m)$372mnana
Cash EPS
2
27.7c44.7c97.1c117%251%
Return on equity
3,4
2.9%4.7%10.2%5.5ppts7.3ppts
Dividend per share-31cps58cps87%na
Cash earnings excluding notable items
5
Core earnings$5,771m$5,100m$5,120m-(11%)
Cash earnings
1
$2,392m$2,835m$3,819m35%60%
Cash EPS
2
66.8c78.5c104.8c34%57%
Return on equity
3,4
7.1%8.3%11.0%2.7ppts3.9ppts
5
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack

Refreshed executive team and new operating model.
Executive teamLines of Business operating model
6
Consumer
Banking
Private wealth
Cash management
Business lending
Business customer engagement
Westpac
Institutional
Bank
Financial markets
Corporate and institutional banking
Consumer banking and wealth
Corporate and institutional banking
Specialist
Businesses
Westpac NZ
Treasury
Global transaction services
Insurance
Specialist Finance
Platforms, Investments and Super
Westpac Pacific
Business
Banking
Mortgages
Consumer finance
Everyday banking
Consumer customer engagement
Peter King
Chief Executive
Officer
Jason Yetton
1
Specialist
Businesses
Scott Collary
Chief Operating
Officer
Chris de Bruin
Consumer &
Business Banking
Rebecca Lim
Group General
Counsel
Carolyn McCann
Customer and
Corporate Relations
Anthony Miller
Westpac Institutional
Bank
Christine Parker
Human Resources
Michael Rowland
Chief Financial
Officer
David Stephen
Chief Risk Officer
Les Vance
Financial Crime,
Compliance and
Conduct
David McLean
Westpac New
Zealand
New to Westpac
New to role
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
1 Re-joined Westpac in 2020 after leaving in 2015.
6

Our strategy.
7
Priorities
Values
HELPS
HelpfulEthicalLeading ChangePerformingSimple
Purpose
Markets,
products,
customers
Helping Australians and New Zealanders Succeed
Banking for consumer, business and institutional customers
SIMPLIFY
Sustainable long-term returns
•Customer service – market leading
•Growth in key markets
•Reset cost base
•Enhance returns, optimise capital
•Strong balance sheet
Streamline & focus the business
•Exit non-core businesses
and consolidate international
•Reduce products, simplify customer
offers
•Lines of Business operating model
•Transform using digital and data to
enhance the customer experience
Address outstanding issues
•Risk management
•Risk culture
•Customer remediation & pain points
•IT complexity
FIXPERFORM
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack

Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
1 CORE is customer outcomes and risk excellence.
8
Fix.
Risk management and culture
Capability and capacity
•Added over 100 resources for credit
decisioning, risk reporting and stress testing
CORE
1
Program
•Integrated plan approved by APRA 7 April
•19 Workstreams, clear accountability
•Multi-year timeframe – quarterly assurance
reporting, published each half
Capability and capacity
•60% increase in team
•More than doubled people investigating
and reporting on financial crime
Progress
•Addressed matters identified in the
AUSTRAC Statement of Claim
•Upgraded risk assessment methodologies
and monitoring solutions
•250% increase in customer reviews –
assessing high risks more frequently
Financial crime program
8

Simplify.
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
• Closing five Asian offices – Mumbai and Jakarta complete
• Offshore locations: London, New York, Singapore. Opening in Frankfurt
• New Westpac app -faster and simpler
• Bringing 1,000 roles (including voice) back to
Australia ~50% complete
• Removed over 100 consumer fees
• Combined Consumer & Business Banking
leadership to
‒Simplify support
‒Better utilise shared assets
‒Improve the customer experience
9
Business soldAnnouncedCompletion targeted
Zip Co Ltd.Oct 2020Oct 2020
Vendor FinanceAug 2020Aug 2021
Westpac PacificDec 2020Dec 2021
General InsuranceDec 2020Sep 2021
Westpac LMIMar 2021Sep 2021
Businesses to be sold
Westpac Life Insurance
Auto Finance
Superannuation, Platforms and Investments
Portfolio and Geographic simplificationCustomers
Geographic
9

•Reduced forms and documents by 80
•60 process and policy changes
•~68% of mortgages are credit auto-decisioned
•~70% of customers
2
accepting mortgage
documents digitally
•First party digital origination process rolled out
3
thirdparty origination in pilot
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
Rolling quarterly mortgage applications
1
(indexed July-19 = 100)
Australian gross mortgage movement ($bn)
1 Indexed to 31 July 2019. 2 1
st
party mortgages originated via the new mortgage origination platform. 3 1
st
party mortgages only. Excludes RAMS, Business Bank and Private Wealth.
10
50
75
100
125
150
Jul-19Jan-20Jul-20Jan-21
Perform – Mortgages, change via Lines of Business.
2.0
(3.5)
(4.7)
2.6
2H191H202H201H21
Simplify processes
Enhance credit decisioning
Increase digitisation
10

Perform – competitive cost base.
1
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
1 This page contains 'forward-looking statements' and statements of expectation. Please refer to the disclaimer on page 117. 2 Future periods exclude potential notable items. References to notable items include provisions related to AUSTRAC
proceedings; estimated customer refunds, costs and litigation; write-down of intangible items; and asset sales/revaluations. Includes Westpac New Zealand.
Expenses ($bn)
2
11
•Targeting a cost base of $8bn by FY24
•Targets embedded in leader scorecards
•Expect to invest $3.5bn to $4bn over 3 years
•Sources of improvement
‒Investment in Fix initiatives to reduce notable
items
‒Exit Specialist Businesses
‒Simplify the business, improve processes and
digitise
‒Smaller head office
9.3
4.9
8.0
2.5
0.7
0.9
0.4
12.7
6.0
8.0
FY201H21FY24
Target
Specialist Businesses
Notable items
Westpac continuing costs
Targeting $8bn by FY24. Continued investment – $3.5-$4bn over 3 years.
11

1H21 fully franked dividend - 58 cps.
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
•Medium term outlook for return and growth
•Sustainable payout ratio ~60-65%
•Dividend yield 4.8%
1
•Seek to neutralise DRP (arrange to purchase
shares on market), no discount on DRP
market price
Dividends per ordinary share (cents)
Dividend payout ratio (%)
Dividend considerations
1 At 31 March closing price of $24.41. 2 Average payout ratio in each half over period. 3 References to notable items in thisrelease include (after tax) provisions related to AUSTRAC proceedings; estimated customer refunds, costs and litigation; write-
down of intangible items; and asset sales/revaluations.
949494
80
31
58
1H182H181H192H191H202H201H21
Historic payout
(FY17 – FY19)
2
1H21
Cash earnings8360
Effective (after DRP)6760
Cash earnings (ex
notable items)
3
7756
COVID-19
12
Capital considerations
•Well above APRA’s CET1 “unquestionably
strong” capital ratio
•Announced sales – 32bps
•Will reset preferred CET1 operating range
once capital rules finalised
12

1,615
1,2202,835
58
21
1,312
3,819
(59)
(348)
(282)
3,537
2H202H20
notable items
2H20 excl.
notable items
Net interest
income
Non-interest
income
ExpensesImpairment
charges
Tax
& NCI
1H21 excl.
notable items
1H21
notable items
1H21
1H21 earnings.
1 References to notable items in this release include (after tax) provisions related to AUSTRAC proceedings; estimated customerrefunds, costs and litigation; write-down of intangible items; and asset sales/revaluations.2 NCI is non-controlling interests.
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
Cash earnings ($m) 1H21 – 2H20
Up 35%
More than doubled, up $1,922m
2
1
1
1
1
14
Core earnings up $20m
14

Notable items and simplification impacts.
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
Notable items
1 Contribution of businesses exited or simplified in respective period.
15
•Remediation higher in Advice and Specialist Businesses, lower in
Business
•Settled historical disputes
•Write-off of LMI goodwill and write-down of capitalised software
balances
•Revaluation of Coinbase, final gain from Zip sale and earnout from
Vendor Finance sale
•Partly offset by losses on sale and transaction costs
($m after tax)1H202H201H21
AUSTRAC proceedings
(1,027)
(415)-
Remediation and litigation
(258)
(182)(276)
Intangible write-downs
(46)
(568)(199)
Asset sales / revaluation
(68)
(55)193
Total cash earnings impact
(1,399)
(1,220)(282)
P&L contribution ($m)
1
1H202H201H21
Net interest income433218
Non-interest income1245927
Expenses(40)(41)(26)
Core earnings1275019
Notable items
Impact of exits and simplification
Exits and simplification includes
• New Zealand wealth sale
• Reduction in correspondent banking relationships
• Exit of Energy trading
• International consolidation
• Consumer fee simplification
15

441
27
5
444
(16)
(13)
Sep-20New lending
excl. Refinance
Net refinanceProperty sale
and other
PaydownMar-21
Lending dynamics.
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
Australian mortgage flows ($bn)
Loans ($bn)
1 Includes Line of Credit.
16
690.0
693.1
8.8
1.6
0.7
(6.4)
(3.3)
(3.9)
(0.6)
Sep-20Mortgages -
Owner occupier
Mortgages -
Investor
BusinessInstitutionalNew ZealandOtherProvisionsMar-21
13% First
Home Buyers
1
Stock
Mar-20
Stock
Mar-21
Flow
1H21
Interest only231814
Fixed rate233237
Investor383526
Aust mortgage composition (% of total)
Australian mortgages
16

1.90
1.91
1.94
1.96
0.13
0.13
0.13
0.13
2.03
1bp2.04(4bps)
6bps
2bps(2bps)
1bp
-
2.07
2bps2.09
2H20Notable
items
2H20 excl.
notable
items
LoansCustomer
deposits
FundingCapital &
other
LiquidityTreasury &
Markets
1H21 excl.
notable
items
Notable
items
1H21
Treasury & Markets
impact on NIM
NIM excl. Treasury
& Markets
0%
1%
2%
3%
Mar-18Mar-19Mar-20Mar-21
Tractor
3 year swap rate (spot)
1 year swap rate (spot)
Margins.
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
Net interest margin (% and bps)
Tractor rate
4
(%)Australian deposits
3
($bn)
1 References to notable items include; estimated customer refunds.2 Benchmark is based on market rates with terms consistent with the duration of the term deposits. 3 Excludes mortgage offsetbalances. 4 Tractor is the blended average rate earned
on hedged capital and low rate deposits.
Up 3bps
•1H21 tractor impact (3bps)
•Similar impact expected in 2H21
•Capital on 1yr hedge
17
TD portfolio cost over benchmark
2
(%)
Capital: $54bn
Deposits: $61bn
2Q21 NIM excl. Treasury, Markets & Notables: 1.97%
Month of Mar-21 NIM excl. Treasury, Markets & Notables: 1.96%
0.00%
0.25%
0.50%
0.75%
1.00%
Mar-18Mar-19Mar-20Mar-21
257
76
60
11
17
≤25bps26
≤50bps
51
≤75bps
76
≤100bps
101bps+
Balances by interest rate (bps)
1
1
17

429
499
453
10
(52)
18
439
447
471
1H202H201H21
Other
Trading
356
348
356
277
249
300
269
181
148
902
778
2
804
1H202H201H21
Other fees
Cards & merchants
Business & institutional
417
373
394
140
259
203
5
43
86
562
675
683
1H202H201H21
Other
Insurance
Funds
Non-interest income – up 3% excluding notable items.
1
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
•Higher insurance weather claims ($55m)
•Funds up from higher FUA
•Other income higher from revaluation of
Life insurance liabilities
•Lower customer and non-customer income
•$34m positive DVA movement
•Other income higher as 2H20 included
Mumbai FCTR loss
•Higher cards from improved activity
•End of COVID-19 merchant waivers
•Other fees lower from simplification
1 Excluding notable items. References to notable items in this slide include provisions related to; estimated customer refunds, costs and litigation; and asset sales/revaluations. 2 Total notable items in Non-interest income is unchanged. 2H20 has been
restated to reflect $45m of notable items allocated to net fee income, this has now been allocated $30m to wealth management income and $15m to insurance income.
18
Net fees
1
up $26m3%Wealth & insurance
1
up $8m1%Trading and other
1
up $24m5%
2
18

6,540
5,257
119
5,236
745
(1,283)
(99)
(6)
(35)
5,981
2H202H20
notable
items
2H20 excl.
notable
items
Ongoing
expenses
Investment
(ex. Risk &
Compliance)
Risk &
Compliance
COVID-191H21 excl.
notable
items
1H21
notable
items
1H21
1H21 expenses.
1 References to notable items in this slide include provisions related to AUSTRAC proceedings; estimated customer refunds, costs and litigation; write-down of intangible items; and asset sales/revaluations.
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
Expenses ($m) 1H21 –2H20
Down 9%, flat excluding notable items.
1
Flat (down $21m)
1
19
11
Down 9%
1
19

Credit quality metrics improved.
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
1 TCE is total committed exposure.
Stressed exposures as a % of TCE
1
Australian mortgage delinquencies and hardship (%, $bn)
Australian unsecured 90+ day delinquencies (%)
20
0
2
4
6
8
0.0
1.0
2.0
3.0
4.0
Mar-18Sep-18Mar-19Sep-19Mar-20Sep-20Mar-21
Hardship balances $bn (RHS)
90+ day past due total % (LHS)
0.67
0.58
0.44
0.27
0.20
0.22
0.15
0.14
0.17
0.20
0.26
0.19
0.46
0.35
0.31
0.26
0.25
0.33
0.34
0.39
0.48
0.50
0.80
0.66
2.07
1.24
0.85
0.71
0.54
0.65
0.56
0.55
0.55
0.62
0.85
0.75
3.20
2.17
1.60
1.24
0.99
1.20
1.05
1.08
1.20
1.32
1.91
1.60
Sep-10Sep-12Sep-13Sep-14Sep-15Sep-16Sep-17Sep-18Sep-19
Mar-20
Sep-20
Mar-21
Watchlist & substandard
90+ day past due (dpd) and not impaired
Impaired
0.50
1.50
2.50
Sep-18Mar-19Sep-19Mar-20Sep-20
Mar-21
1.92%
20

Asset quality.
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
21
1 Services includes education, health & community services, cultural & recreational services and personal & other services.
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
Property
Accommodation, cafes
& restaurants
Wholesale &
retail trade
Agriculture, forestry &
fishing
Property &
business services
Services
Manufacturing
Construction
Transport & storage
Mining
Finance & insurance
Utilities
Mar-20Sep-20Mar-21
Corporate and business stressed exposures by industry sector ($bn)
Stressed exposures to TCE by industry sector (%)
Sep-202.816.06.26.65.1 4.03.55.83.12.30.20.2
Mar-212.914.64.86.04.33.73.36.12.73.40.20.2
1
21

351
283
144
(170)
(147)
(194)
438438
318
1,619
366
(640)
2,238
940
(372)
1H202H201H211H202H201H211H202H201H211H202H201H211H202H201H21
Credit impairment charge / (benefit) composition.
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
Individually assessed provisions
($m)
Collectively assessed provisionsTotal
1 IAP is individually assessed provisions. 2 CAP is collectively assessed provisions.
22
New IAPs¹
Write-backs
& recoveries
Write-offs
direct
Other movement
in CAP
2
22

Impairment provisions.
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
At Sept 2020At Mar 2021
2021202220212022
GDP growth2.5%2.7%4.0%3.0%
Unemployment7.5%6.7%6.0%5.3%
Residential property price
increase/(decrease)
(0.4%)7.5%10%10%
Forecasts used in base case economic scenario
3
1 CAP is Collectively Assessed Provision. 2 IAP is Individually Assessed Provision. 3 GDP and Residential property price growth is annual growth to December each year. Unemployment rate forecast is as at year end. Forecasts used for March 21 were
determined in February 21.
23
412
606
611
564
943
1,051
1,561
1,327
1,578
2,317
2,247
1,806
818
1,019
1,032
853
171
795
708
958
3,922
5,788
6,159
5,508
Sep-19Mar-20Sep-20Mar-21
Overlay
Stage 1 CAP
Stage 2 CAP
Stage 3 CAP
Individually assessed provisions (Stage 3)
Total impairment provisions
1
($m)Provision coverage
Sep-19Sep-20Mar-21
Provisions to Credit RWA109bps171bps159bps
Provisions to TCE37bps58bps51bps
IAP
2
to Impaired assets44.9%41.5%47.0%
23

437.9
0.7
2.9
428.9
(12.3)
(0.3)
Sep-20Credit
risk
Market
risk
IRRBBOtherMar-21
Capital drivers.
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
1 Common equity tier 1. 2 Credit Risk Weighted Assets. 3 Pro forma benefit at March 21 for expected divestments and at 30 April for Coinbase. 4 Initial estimate, depends on final capital streamed up to the Group. 5 Impact reflects the remaining CET1
impact expected to occur in the 2H21 (mainly from the release of risk weighted assets upon sale). The accounting loss on salein Westpac Pacific included in First Half 2021 notable items impacted the CET1 ratio for March 21. In total, the sale of
Westpac Pacific is expected to add approximately 3bps to Westpac’s Common Equity Tier 1 capital ratio.
24
CET1
1
capital ratio (% and bps)
11.13
82
20
12
812.34
(1)
Sep-20Cash
earnings
RWA
movement
Capital
deductions
and other
FX
translation
impact
DivestmentsMar-21
Risk weighted assets ($bn)
Coinbase
4
7
Vendor Finance-
Westpac Pacific
5
6
General Insurance12
Westpac LMI7
Expected divestment
CET1 benefit (bps)
3
•Lower business and corporate stress; partly offset by
•Housing risk weight floor of 23.8% increased CRWA
2
$3.7bn
24

Targeting $8bn cost base by FY24.
1
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
1 This page contains 'forward-looking statements' and statements of expectation. Please refer to the disclaimer on page 117. 2 All numbers exclude notable items. References to notable items in this slide include provisions related to AUSTRAC
proceedings; estimated customer refunds, costs and litigation; write-down of intangible items; and asset sales/revaluations. Target includes Westpac New Zealand Limited.
Cost target excluding notable items ($m)
2
10,161
8,000
FY20BAUInvestmentProductivityFY24
Expenses (ex notables) expected to rise in FY21 compared to FY20.
Targeting to reduce from FY22 onwards
25
Pathway to $8bn
• Exit non-core businesses
• Digital focus, reduce products and
cost to serve
• Rationalise duplicate metro branches,
smaller customised branches
• Reduce physical transactions
• Digitise sales and service
• Remove costs linked to Specialist
Businesses
• Rationalise corporate footprint
• Lower support costs
• Reduce third party/contractor spend
Specialist
Businesses
Digitise &
streamline for
customers
Head office &
organisational
simplification
Digitise & streamline
Specialist Businesses
Head office & organisational simplification
25

Select cost reset targets.
1
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
1 This page contains 'forward-looking statements' and statements of expectation. Please refer to the disclaimer on page 117. 2 Percentage of home loan applications through strategic platform for 1
st
party lending (excl. RAMS). FY24 target refers to both
1
st
and 3
rd
party across Consumer and Business. 3 Refer to slide115 for definition. 4 Reduction in 1H21 represents decrease on 1H20. 5 Represents Australian Consumer, Business and Institutional products for sale. 6 Represents international locations
excluding New Zealand and Westpac Pacific. 7 Corporate Space represents head office and operations and excludes branches and business banking centres.
Metric
Baseline1H21FY24
•Exit non-core businesses
1 under sale
agreement
4 under sale
agreement
7 transactions
completed
•Mortgages processed on digital
origination platform
2
•Consumer sales via digital
3
•Branch transactions
3
•Products for sale
5
32%
2
42%
29 million
891
62%
2
41%
22% less
4
839
100%
70%
~40% less
~345
•Offshore locations
6
864
•Reduce third party and contractor spend by >$200m per annum
•Reduce head office roles and corporate space ~ more than 20%
7
26
Specialist
Businesses
Digitise &
streamline for
customers
Head office &
organisational
simplification
26

2H21 Considerations.
1
1 This page contains 'forward-looking statements' and statements of expectation. Please refer to the disclaimer on page 117.
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
27
Lending
•Maintain mortgage momentum
•Stabilise Business lending
Net interest
margin
•Headwinds from competitive market continued flow through of low rates
Non-interest
income
•Improved economic activity and consumer spending
•Impact of simplification to flow through
Expenses
•FY21 expected to be higher than FY20 (excluding notable items) from:
-Seasonality of project spend – higher in 2H
-Full period effect of higher FTE for Fix agenda
Asset quality
•Maintain focus on supporting customers
•Improved outlook, some impact from wind back of government support
27

Good progress – more to do.
1 Latest is December 2020 (GDP), March 2021 housing credit, business credit and unemployment. Sources: ABS, RBA, Westpac Economics.
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
29
Economic outlook positive2H21 Priorities
•Grow core businesses
‒Continue mortgage improvement. Grow
at major bank system in 2H21
‒Apply mortgage success to business
lending
•Specialist Businesses
‒Complete Panorama migration
‒Progress asset sales and completions
•Risk management - deliver on CORE
program and improve risk management
processes/culture
•Begin delivering on cost reset
Latest
1
End 2021
Forecasts
GDP growth(1.1%)4.5%
Housing credit growth 4.1%6.5%
Business credit growth(2.6%)2.5%
Unemployment rate5.6%5.0%
29

Investor
Discussion
Pack
Fix. Simplify. Perform.

Overview

Westpac Group at a glance.
32
•In its 205th year, Australia’s first
bank and first company, opened
1817
•Australia’s 2nd largest bank and
24th largest bank in the world,
ranked by market capitalisation
1
•Well positioned across key
markets with a service-led
strategy focused on customers
•Supporting consumers and
businesses in Australia and New
Zealand
•Unique portfolio of brands
providing a range of financial
services across consumer,
business and institutional banking
•Capital ratios are in the top
quartile globally, with sound credit
quality
•Credit ratings
2
AA-/ Aa3 / A+
•Continued sustainability
commitment
3
Operating divisions
Consumer
Business
Westpac Institutional Bank (WIB)
Westpac New Zealand
Key statistics at 31 March 2021
Customers14.0m
Australian household deposit market share
4
21%
Australian mortgage market share
5
22%
Australian business credit market share
5
15%
New Zealand deposit market share
6
18%
New Zealand consumer lending market share
6
18%
Australian wealth platforms market share
7
18%
Key financial data for Half Year 2021
Reported net profit after tax$3,443m
Cash earnings$3,537m
Expense to income ratio
8
55.4%
Common equity Tier 1 capital ratio (APRA basis)12.34%
Return on equity
8
10.2%
Total assets$889bn
Total liabilities$817bn
Market capitalisation
9
$90bn
Helping Australians and New Zealanders Succeed.
1 31 March 2021 Source: S&P Capital IQ, based in US$. 2 S&P Global Ratings, Moody’s Investors Service and Fitch Ratings respectively. Moody’s Investor Services and Fitch Ratings have Westpac Banking Corporation on a stable outlook. S&P
Global Ratings has Westpac on a negative outlook. 3 Awarded Silver - DJSI 2020 Year Book, Rated A – MSCI-ESG, Medium ESG Risk Band – Sustainalytics. 4 APRA Banking Statistics, March 2021. 5 RBA Financial Aggregates, March 2021. 6 RBNZ,
March 2021. 7 Plan for Life 31 December 2020. All Master Funds Admin. 8 Cash earnings basis. 9 Based on share price at 31 March 2021 of $24.41.
Strategy
WBC
listed on
ASX & NZX
New Zealand
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack

$m1H21
Net interest income67
Non-interest income100
Expenses(48)
Impairment (charges)/benefits24
Tax and non-controlling interests(40)
Cash earnings contribution of
businesses held for sale
(ex notable items)
103
Loans1,819
Deposits2,088
Portfolio simplification.
33
Businesses held for sale
Brands
Executing our FY21 strategic priorities.
1 Classified as held for sale in the Group’s 2021 Interim Financial Results Announcement. 2 CET1 impact is based on RWAs at 31 March 2021. Impact at the time of sale can vary based on RWA movements. The 31 March 2021 CET1 ratio includes the
accounting loss on sale in Westpac Pacific included in 1H21 notable items.
Strategy
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
Business UnitBusiness overviewStatusAnnounced
Expected
completion
Vendor Finance
1
Supports third parties to fund
equipment finance loans
Entered sale
agreement
(held for sale)
21
st
August
2020
Second Half
2021
General Insurance
1
Provides insurance solutions
including Home and Contents
Insurance and Landlord Insurance
Entered sale
agreement
(held for sale)
2
nd
December
2020
Second Half
2021
Westpac Pacific
1
Banking in Fiji and PNG serving
retail, business and institutional
customers
Entered sale
agreement
(held for sale)
7
th
December
2020
Second Half
2021
Lenders Mortgage
Insurance
1
Provides Lenders Mortgage
Insurance to Westpac Group for
residential mortgages
Entered sale
agreement
(held for sale)
18
th
March
2021
Second Half
2021
Life Insurance
Manufacturer of life, TPD and
income protection products
Under
consideration
Auto Finance
Provides vehicle finance, dealer
finance, business car leasing and
novated leasing
Under
consideration
Superannuation,
Platforms and
Investments
Provides superannuation,
investment platforms for advised
clients, multi-fund asset
management and a range of direct
products for SMSFs and
individuals
Under
consideration
Businesses in Specialist Business division
operate under the following brands:
Pacific
CET1 Impact
Once announced sales are completed, they are
expected to add 25bps
2
to the CET1 capital ratio
Businesses included in the Specialist Business division

85
15
Group ex Westpac NZ
Westpac NZ
Westpac New Zealand review.
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
•Banking is increasingly a local business
•BS11 – operational separation limits synergies
1H21 Cash earnings ex notables (%)
Westpac is reviewing the most appropriate ownership structure for its New Zealand operations. The business
has been a valuable contributor for many years. The review is ongoing.
.
Strategy
34
Lending (%)
88
12
Group ex Westpac NZ
Westpac NZ
•Potential value uplift from two locally focused businesses
•Separation and independence costs
•Impact of RBNZ reviews
Rationale for the review
Considerations
Contribution to Westpac Group
Status
•Regulator engagement required
•Determining potential split of balance sheet in a demerger
•Progressing analysis
34

Cash earnings and reported net profit reconciliation.
35
Reported net profit and cash earnings ($bn)
Cash earnings
1
policy
•Westpac Group uses a measure of performance referred to as cash earnings to assess financial
performance at both a Group and divisional level
•This measure has been used in the Australian banking market for over 15 years and management
believes it is the most effective way to assess performance for the current period against prior periods
and to compare performance across divisions and across peer companies
•To calculate cash earnings, reported net profit is adjusted for:
−Material items that key decision makers at the Westpac Group believe do not reflect the Group’s
operating performance
−Items that are not normally considered when dividends are recommended, such as the impact of
treasury shares and economic hedging impacts
−Accounting reclassifications between individual line items that do not impact reported results
Reported net profit and cash earnings adjustments ($m)
1 Cash earnings is not a measure of cash flow or net profit determined on a cash accounting basis, as it includes non-cash itemsreflected in net profit determined in accordance with AAS (Australian Accounting Standards). The specific adjustments
outlined include both cash and non-cash items. Cash earnings is reported net profit adjusted for material items to ensure they appropriately reflect profits available to ordinary shareholders. All adjustments shown are after tax. For further details refer to
page109.
Results
3.2
3.6
1.2
1.1
3.4
3.3
3.6
1.0
1.6
3.5
1H192H191H202H201H21
Reported profitCash earnings
1H21
($m)
Change
1H21-2H20
(%)
Change
1H21-1H20
(%)
Cash
earnings
3,537119%256%
Cash EPS
(cents)
97.1117%251%
Reported net
profit
3,443213%189%
Reported
EPS (cents)
94.5210%185%
2H201H21
Reported net profit1,1003,443
Fair value (gain)/loss on economic hedges58146
Ineffective hedges(37)48
Adjustments related to PendalGroup(32)-
Treasury shares3-
Cash earnings1,6153,537
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack

993
1,3992,392
55
2,610
3,819
(374)
(332)
(532)
(282)
3,537
1H20Add back
notable
items
1H20 ex-
notable
items
Net interest
income
Non-interest
income
ExpensesImpairment
charges
Tax & NCI1H21 ex-
notable
items
Notable
items
1H21
1H21 cash earnings.
36
1H21
($m)
Change
1H21-
2H20
(%)
Change
1H21-
1H20
(%)
Net interest
income
8,4691%(2%)
Non-interest
income
2,33025%39%
Expenses(5,981)(9%)(3%)
Core earnings4,81829%15%
Impairment
benefit
372LargeLarge
Tax and non-
controlling
interests (NCI)
(1,653)39%74%
Cash earnings3,537119%256%
Add back notable
items (after tax)
282(77%)(80%)
Cashearnings
ex-notable items
3,81935%60%
Reported net
profit
3,443213%189%
Results
Cash earnings 1H21 – 1H20 ($m)
Cash earnings 1H21 – 2H20 ($m)
58
21
1,312
1,615
1,2202,835
3,819
3,537
(59)
(348)
(282)
2H20Add back
notable
items
2H20 ex-
notable
items
Net interest
income
Non-interest
income
ExpensesImpairment
charges
Tax & NCI1H21 ex-
notable
items
Notable
items
1H21
Up 119%
Up 35% ex-notable items
Up 256%
Up 60% ex-notable items
Impairment benefit from improved economic
outlook and improved credit quality
AIEA down 2% partly offset
by a 3bp increase in NIM
Increased merchant revenue
and higher wealth income
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
Lower restructuring expenses, some COVID-19
expenses and timing of project spend partly offset by
increased FTE for risk, compliance and volumes
NIM down 9bps mostly from higher liquid
assets and the low interest rate environment
Impairment benefit from improved economic
outlook and increased recoveries and write-backs
4,548 increase in FTE to support higher mortgage
volumes, risk and compliance programs and COVID-19
related activities

Notable items in 1H21 and 2H20.
37
In 1H21 and 2H20, the Group recognised certain costs/provisions
known throughout this document as “notable items” which relate
to the following:
AUSTRAC proceedings
1
($0 1H21, $415m 2H20)
Costs associated with the AUSTRAC proceedings including for a
Court penalty, legal costs and costs of the Group’s response
plan. There were no costs in 1H21 as the AUSTRAC proceedings
have now been settled.
Estimated customer refunds, payments, associated costs
and litigation
1
($276m 1H21, $182m 2H20)
Additional provisions were raised in 1H21 for:
•Refunds for certain ongoing advice fees associated with the
Group’s salaried financial planners and authorised
representatives
•Refunds to superannuation and investment customers not
advised of certain corporate actions
•Costs associated with ending the Group’s IOOF relationship
•Litigation including settlement of historical matters
Write-down of goodwill and intangible assets
1
($199m 1H21, $568m 2H20)
Write-down of goodwill associated with our LMI business along
with a write-down of capitalisedsoftware.
Asset sales and revaluations
1
($193m gain 1H21, $55m loss 2H20)
This includes the revaluation gain on the Group’s stake in
Coinbase, the gain on sale of the Group’s holding in Zip Co
Limited and earn out payments from the sale of the Vendor
Finance business. Partly offset by a loss on sale of Westpac
Pacific and transaction costs related to announced sales.
1H21 notable items
($m)ConsumerBusinessWIBNZ
2
Specialist
Businesses
Group
BusinessesGroup
Net interest income-74-(3)--71
Non-interest income(3)1-(5)1378372
Expenses(106)(40)(37)(6)(336)(220)(745)
Core earnings(109)35(37)(14)(335)158(302)
Impairment charges-------
Tax and non-controlling
interests
33(10)11438(56)20
Cash earnings(76)25(26)(10)(297)102(282)
1 For further information refer to Westpac’s 2021 Interim Financial Results Announcement. 2 In AUD.
Results
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
2H20 notable items
($m)ConsumerBusinessWIBNZ
2
Specialist
Businesses
Group
BusinessesGroup
Net interest income-(34)-(3)--(37)
Non-interest income4(3)-(4)(305)273(35)
Expenses(31)(106)-1(653)(494)(1,283)
Core earnings(27)(143)-(6)(958)(221)(1,355)
Impairment charges-------
Tax and non-controlling
interests
843-2138(56)135
Cash earnings(19)(100)-(4)(820)(277)(1,220)

1H21 financial snapshot.
1 All measures on a cash earnings basis. 2 Internationally comparable methodology aligns with the APRA study titled ‘International Capital Comparison Study’ dated 13 July 2015. 3 Includes items classified as held for sale. 4 NSFR is reported on a spot
basis. 5 LCR is reported on a quarterly average basis. 6 1H21 and 2H20 includes Term Funding Facility (TFF). 7 Total liquid assets represent cash, interbank deposits and assets eligible for existing repurchase agreements with a central bank.
38
Results
1H21
Change
1H21 – 2H20
Change
1H21 - 1H20
Earnings
1
Earnings per share (cents)97.1117%251%
Core earnings ($m)4,81829%15%
Cash earnings ($m)3,537119%256%
Return on equity(%)10.19LargeLarge
Dividend (cents per share)5887%N/A
Expense to income ratio(%)55.4LargeLarge
Net interest margin(%)2.096bps(4bps)
Credit quality
Impairment benefit to average
gross loans (bps)
11LargeLarge
Impaired assets to gross loans (bps)30(10bps)-
Impaired provisions to impaired assets
(%)
476ppts(3ppts)
Total provisions to credit RWA (bps)159(12bps)2bps
Collectively assessed provisions to
credit RWA (bps)
142(12bps)2bps
1H21
Change
1H21 – 2H20
Change
1H21 - 1H20
Balance sheet
Total assets ($bn)889.5(2%)(8%)
Common equity Tier 1 (CET1) capital
ratio (APRA basis) (%)
12.34121bps153bps
CET1 capital ratio
(Internationally comparable
2
) (%)
18.08158bps227bps
CET1 capital ($bn)52.99%10%
Risk weighted assets (RWA) ($bn)428.9(2%)(3%)
Average interest-earning assets ($bn)813.0(2%)-
Loans
3
($bn)690.0-(4%)
Customer deposits
3
($bn)550.3(1%)1%
Net tangible assets per share ($)16.606%8%
Funding and liquidity
Customer deposit to loan ratio (%)79.8(39bps)Large
Net stable funding ratio
4
(%) (NSFR)1231ppt6ppts
Liquidity coverage ratio
5,6
(%) (LCR)124(27ppts)(16ppts)
Total liquid assets
7
($bn)195.2(12%)(2%)
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack

Customer franchise.
MFI Share
1,2
-7.3
1.9
-0.8
1.1
3.1
Aug-18Feb-19Aug-19Feb-20Aug-20Feb-21
WestpacSt.George brandsPeers
39
Customer satisfaction (CSAT)
2
11.2
11.2
11.2
11.3
1.4
1.3
1.3
1.3
1.7
1.7
1.6
1.4
14.2
14.2
14.1
14.0
Sep-19Mar-20Sep-20Mar-21
Australian bankingNew ZealandOther
Net Promoter Score (NPS)
2
1 Main Financial Institution for Consumer customers. Data at 28 February 2021. 2 Refer page 115 for details of the metric provider.
Customer franchise
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
Business
Consumer
New Zealand
-15.6
1.6
-17.0
-8.7
-10.2
Aug-18Feb-19Aug-19Feb-20Aug-20Feb-21
WestpacSt.George brandsPeers
16
39
24
34
36
Sep-18Mar-19Sep-19Mar-20Sep-20Mar-21
WestpacPeers
10.2%
5.4%
14.6%
29.6%
11.6%
15.6%
Peer 1Peer 2Peer 3Westpac
Group
WestpacSt.George brandsPeers
Customer numbers (#m)
7.3
7.7
7.4
7.5
7.6
Aug-18Feb-19Aug-19Feb-20Aug-20Feb-21
WestpacSt.George brandsPeers
7.2
7.8
7.1
7.4
7.3
Aug-18Feb-19Aug-19Feb-20Aug-20Feb-21
WestpacSt.George brandsPeers
67
78
74
75
79
Sep-18Mar-19Sep-19Mar-20Sep-20Mar-21
WestpacPeers

Helping Australians and New Zealanders Succeed.
COVID-19 support
•Supported customers to defer over $70bn
of lending via COVID-19 deferral packages
helping over 200k customers
•Personalised support to customers exiting
deferral packages and experiencing
hardship
•Provided Government Guarantee loans
-$300m to ~2,500 customers in Australia
-NZ$65m to 229 customers in NZ
•Updated SME Government Guarantee
loans launched April 2021
•Helped 160k superannuation fund
members through access to $1.9bn via
early release scheme
40
Natural disasters
•Announced a $10m Flood Support Fund to
provide emergency grants for eligible
customers in flood-affected areas. This
included:
‒$5,000 grants for businesses
‒$3,000 grants for households
•Disaster relief packages provided to
customers including deferrals
•Insurance claims of ~$110m
1
for ~4,600
customers in 1H21 for floods and storms
•$150k provided to The Salvation Army for
flood support
Helping customers
•$5.6bn of loans to first home buyers in
1H21
•Migrated $11.3bn to new leading platform,
with FUA
2
on Panorama $50bn
•Customers can block their cards to limit
gambling online, since launch over 2,500
customers have enabled this feature
•Provided financial education and literacy
programs and tools through the Davidson
Institute
•Launched capability to auto-detect and
block abusive language and enable
customers to report abusive messages in
banking text. Since launch we have filtered
and blocked more than 5,000 messages
•New app launched making it faster and
simpler for customers to bank with us
•Improved cyber protection including
Security Wellbeing Check within our
banking app
•Simplified fee and products, eliminated
over 100 fees in 1H21
1 Insurance claims is before reinsurance. 2 Funds under administration.
Customer franchise
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
149
33
29
9
178
42
MortgagesBusiness
Australia
New Zealand
Customers provided packages (‘000s)

4.1
4.2
4.34.3
3.9
1H192H191H202H201H21
Continued migration to digital.
41
Australian ATMs (#)
Australian branches (#)
Call Centre Volume (#m)
Digitally active customers (#m)Accounts with eStatements
1 Over the counter. 2 Digital transactions include all payment transactions (Transfer Funds, Pay Anyone and BPAY) within WestpacLive and Compass, excl. Corporate Online and Business Banking online.
Branch OTC
1
transactions (#m)
Digital transactions
2
(#m)
4.90
4.99
5.04
5.09
5.15
Mar-19Sep-19Mar-20Sep-20Mar-21
8.9
9.6
9.8
10.3
10.7
52
55
57
60
62
Mar-19Sep-19Mar-20Sep-20Mar-21
Number (#m)eStatements (%)
242
257
267
277
298
1H192H191H202H201H21
2,213
2,193
2,133
1,399
1,352
Mar-19Sep-19Mar-20Sep-20Mar-21
971
955
931
929
889
Mar-19Sep-19Mar-20Sep-20Mar-21
18.6
17.7
16.5
12.5
12.9
1H192H191H202H201H21
Up 2%
Up 1%
In FY20 we sold 740 non-branch
ATMs to Prosegur
Sales via digital (%)
38
39
37
42
41
1H192H191H202H201H21
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
Down 22%
Up 4%
Up 8%
Up 12%
Down 9%
Down 11%
2H20 OTC transactions impacted by
COVID-19 lockdown and restrictions
Increased Westpac mobile
app self-serve capability
Customer franchise
Less physicalMore digital

Mortgages: Digital capabilities delivered
1
.
1 Refers to 1
st
party origination platform and excludes RAMS, Private Wealth and Business.
42
• New, search optimised
calculators
• Property insights
• Loan, feature and rate
comparison tools
• Apply online 24/7
• Pre-filled for existing
customers
• Paperless application via
branch / contact centres
• Upload photos of supporting
documents at any point
• Auto-routing to available
lenders for faster response
• Switch to fixed rate for
existing customers
Apply
Use
Discover
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
Customer franchise
• Customers know what they
can afford
• Understand maximum
borrowing potential
• Clarity of repayments and
buying costs
• Auto-verify using
comprehensive credit
reporting
• Track status through to
settlement
• Real-time notifications on
key moments
• Accept loan documents
online
• Settlements done digitally
(PEXA)

Customer remediation.
Provisions for customer refunds, payments and associated costs:
Additional provisions of $241m raised in 1H21 including for:
•Refunds associated with certain ongoing advice fees charged by the
Group’s salaried financial planners and authorised representatives
•Refunds to superannuation and investment customers not advised of
certain corporate actions
•Released provisions previously raised for customer refunds related
to businesses provided a business loan instead of a consumer loan
regulated by the National Consumer Credit Protection Act and the
National Credit Code which were no longer required
•Costs associated with the implementation and completion of the
remediation program
1 Excludes provisions and costs associated with litigation.
Progressing customer refunds:
•Conducted extensive product, process and policy reviews
•Over $200 millionin remediation payments have been made to over
570,000customer accounts during the past six months following
these reviews and regulator feedback
•Centralised the governance and reporting of remediation to ensure
consistency and to speed up the process
•Substantial progress across Westpac, including ongoing advice and
other wealth fees, National Consumer Credit Protection Act
compliance and interest only products
Provisions for customer
refunds, payments and
associated costs
1
($m)20172018201920201H21Total
Banking94122362144(67)655
Wealth751468022081951,426
Implementation
costs
-62232196113603
Cash earnings
impact of above
1182319773841681,878
43Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
Customer franchise

Strengthening risk governance and oversight.
44
Integrated Plan
•A comprehensive and integrated program of work designed to
strengthen risk governance and frameworks, further clarify
accountability and improve the Group’s risk culture
•It outlines how we are strengthening risk governance across both
financial and non-financial risk
•Comprises 19 workstreams, underpinned by 80 deliverables and
327 activities
•Group Executive accountability and outcomes linked to executive
remuneration decisions
•Multi-year completion timeframe –with 90 day delivery schedule
•APRA-approved and independently assured by Promontory
Australia, with regular reporting to be made publicly available
Activity progress
CORE Program; Integrated Plan delivery on track.
1 At 29 April 2021. Closed means the independent reviewer has assessed the activity as complete.
Risk governance
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
Background and timeline
Of the 327 activities, 82 have been submitted to Promontory for
assurance and of those, 46 have been closed
1
.
82
245
Milestones
Submitted
Not yet due
327
activities
2018
Released Culture, Governance and
Accountability self assessment
(CGA self assessment), highlighting
weaknesses in our management of
non-financial risk. Included 45
recommendations
2019
Following AUSTRAC proceedings
(December), APRA requested a
reassessment (CGA
reassessment) of the CGA self
assessment. APRA also increased
our operational risk capital add-on
to $1 billion
2020
Released CGA reassessment (July),
which reinforced findings and
identified further issues. The CORE
Program was established to
incorporate and address these
findings on non-financial risk.
Following APRA’s risk governance
review, we entered into an
Enforceable Undertaking with APRA
to address deficiencies in risk
governance (December)
2021
Expanded the CORE
Program to improve financial
and non-financial risk
governance. Group
Executive Financial Crime,
Compliance & Conduct
assigned responsibility for
leading the CORE Program.
Integrated Plan approved by
APRA (April)
Board
14% of total activities have
been closed
1

CORE: Integrated Plan governance and oversight.
45
CORE Program governance structure
Clear lines of accountability. Independent assurance by Promontory.
Risk governance
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
Accountable for risk governance program
outcomes, key milestones and interdependencies
tracking, change control and sequencing
Enterprise frameworks, reporting and
portfolio oversight
Primary Board-level oversight of
the Integrated Plan
Approval of the Integrated Plan and material
changes. Ongoing governance and oversight
19 CORE Program workstreams:
Board risk governance
Executiveculture and capability
Risk culture
Organisational design
Remuneration and consequence management
Risk roles and capability
Transformation capability and delivery
Risk management framework
Non-financial risk reporting and JUNO functionality
End-to-end risk and control environment
Assurance
Compliance management
Conduct risk
Customer complaints
Technology risk governance
Data risk governance
Credit risk governance
Market risk governance
Liquidity risk and capital adequacy risk governance
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
All Group Executives are accountable for
Divisional implementation. Each workstream has
an accountable Group Executive
CORE Program Team
Group Transformation
Office
Responsible for oversight of the Integrated
Plan delivery
Accountable for CORE Program outcomes
Overall management accountability for risk
governance and delivery of the Integrated Plan
Executive Team
Steering Committee
Executive Team
Steering Committee
Board Risk
Committee
Board Risk
Committee
Group Executive
Sponsor
Group Executive
Sponsor
BoardBoard
CEOCEO
Workstreams

Focus areasTargetYearProgress
New lending to climate change
solutions
$3.5bn
$15bn
2023
2030
$0.5bn in 1H21
Thermal coal mining$0 exposure2030Total lending to coal mining of
$0.5bn. 56% is to thermal coal
mining
1
Electricity generation – portfolio
emissions intensity
1,2
0.23tCO
2
-e/MWh
0.18tCO
2
-e/MWh
2025
2030
0.25tCO
2
-e/MWh
Updated annually in November
Oil and gas (extraction, production
and refining)
Establish sector
criteria
2023Updated scenario analysis.
Developed internal assessment
criteria
1
Scope 1 & 2 emissions
2,3
85% reduction
90% reduction
2025
2030
Down 27% from 2016 baseline.
Updated annually in November
Scope 3 – supply chain emissions35% reduction2030Updated annually in November
Committed to action on climate change.
46
Participating in
Committed to managing our business in alignment with the Paris Agreement and a transition to a net zero economy by 2050.
Sustainability
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
Progress and targets
1 WIB only. 2 At 30 September 2020. 3 FY16 Scope 1 & 2 emissions baseline: 147,620 tCO
2
-e.
A proven track record in responding to climate change
2017
Commenced portfolio
carbon reporting for
BT MySuper portfolios.
1996
Founding
member of the
United Nations
Environment
Program (UNEP).
2008
4-degrees
Climate Scenario
Analysis.
1.5-degrees
Climate Scenario
Analysis.
TCFD
disclosures
published.
Signed Montreal
Carbon Pledge
and endorsed
Global Investor
Statement on
Climate Change.
2015
Commitment
to carbon
neutrality across
our business.
2013
2005
1991
First bank to
join Australian
Greenhouse
Challenge.
One of nine
founding
signatories
to Equator
Principles.
2003
Relationship
with Investor
Group on
Climate Change
established.
First Climate
Change
Position
Statement.
2012
Second Climate
Change Position
Statement.
2014
Commitment to UN
Sustainable Development
Goals and Paris Climate
Agreement.
2017
Signatory to
Climate
Action 100+.
Third Climate
Change Position
Statement &
Action Plan.
2018
2018
2019
2020
Fourth Climate
Change Position
Statement &
Action Plan.
2-degrees
Climate Scenario
Analysis.
2016
•United Nations Environment Programme Finance Initiatives (UNEP FI)
Principles for Responsible Banking
•Australian Sustainable Finance Initiative
•Australian Business Roundtable for Disaster Resilience and Safer Communities
•Corporate Sustainability Working Group of the Australian Banking Association
•RE100
•Investor Group on Climate Change
•Climate Action 100+
•Climate Leaders Coalition, New Zealand
•Sustainable Finance Forum of Aotearoa Circle, New Zealand

Climate-related disclosures – scenario analysis.
47
Alignment with the TCFD
•We continue to integrate the consideration of climate-related risks and
opportunities into our operations. This includes alignment with the
recommendations of the Task Force on Climate-related Financial
Disclosures (TCFD), referenced in APRA’s draft Prudential Practice
Guide on Climate Change Financial Risks.
•Climate change-related risks are managed within the Group’s risk
management framework
•Participating in APRA’s 2021 Climate Vulnerability Assessment
Transition risk – key points
•Transition climate risk includes domestic and market changes when moving to
a greener economy, which can result in changes to costs, income and profits,
investment preferences and asset viability
•Our analysis of transition risk focuses on our current Australian Business and
Institutional lending
1
and exposure to sectors which may face growth
constraints under 1.5-degree and 2-degree scenarios
2
•Approximately 1.2% of our current Australian Business and Institutional
lending is exposed to sectors that by 2030 may experience higher risk
3
in a
transition to a 1.5-degree economy. Under a 2050 scenario this is 2.5%
•During the half, we undertook transition risk analysis, and developed internal
assessment criteria for the oil and gas sector (extraction, production and
refining)
4.
•Our updated approach meanswe 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;
-support existing customers to develop Paris-aligned financing strategies;
-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
5
; and
-continue to provide annual updates on our progress
Physical risk – key points
•Physical climate risk refersto changes in climate and the frequency and
magnitude of extreme weather events, with impacts including direct damage to
assets or property
•Updated our approach to assessing the impact of extreme weather events
under climate change scenarios on our Australian mortgage portfolio
6,7
•Focused on the Australian mortgage portfolio and exposure to locations that
may face increased physical risk under an IPCC RCP
8
8.5 Scenario
•Approximately 2.0% of the current Australian mortgage portfolio may be
exposed to higher physical risk
9
under an IPCC RCP 8.5 Scenario by 2050
1 Australian Business and Institutional lending, excludes retail, sovereign, and bank exposures. 2 For further information see Westpac’s FY20 Sustainability Performance Report. 3 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 highergrowth constraints’. 4 For further information see 2021 Interim Financial Results. 5 WIB customers only. 6 Excludes
RAMS and Equity Access. 7 Considered riverine flooding, coastal inundation, forest fire, extreme wind and soil subsidence. 8Intergovernmental Panel on Climate Change (IPCC) Representative Concentration Pathway (RCP). 9 ‘Higher risk’ were
locations where insurance may become more expensive or unavailable.
Sustainability
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack

148
134
128
121
108
2016
Baseline
2017201820192020
0%
10%
20%
30%
40%
50%
60%
70%
80%
FY11FY12FY13FY14FY15FY16FY17FY18FY19FY20
Renewable
Non-renewable
Climate-related metrics.
48
Lending to climate change solutions
($bn, TCE)
7.0
9.1
9.3
10.1
10.0
Sep-17Sep-18Sep-19Sep-20Mar-21
Climate change solutions exposure
(% of TCE)
2
at 31 March 2021
Electricity generation exposure
(% of TCE)
1
at 30 September 2020
1 Exposures in WIB only. 2 Climate solutions definition is available in our 2020 Sustainability Datasheet glossary. 3 The reduction in lending to oil and gas extraction from September 2020 is mainly due to the consolidation of Westpac’s international
operations. 4 Lending to thermal coal mining is 56% of total coal mining in WIB. 5 FY16 Scope 1 & 2 emissions baseline: 147,620 tCO
2
-e.
Sustainability
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
Down 27%
Up 43%
Mining exposure
($bn, TCE)
3
Our scope 1 and 2 emission production
5
(tCO
2
-e 000’s)
Lending to electricity generation
in Australia and New Zealand (% of total)
44.8
34.0
9.7
4.4
3.7
1.9
1.5
Green buildings
Renewable energy
Low carbon transport
Waste
Forestry
Adaptation infrastructure
Other
TCE
$10bn
74.6
15.6
6.4
2.8
0.6
Renewable energy
Gas
Black coal
Liquid Fuel
Brown coal
TCE
$4.3bn
10.3
6.3
3.3
0.7
9.0
5.7
2.8
0.5
8.0
5.2
2.3
0.5
TotalNon-fossil fuelOil and gas
Coal - thermal
& metallurgical
Mar-20Sep-20Mar-21
4

Respecting and advancing human rights.
49
Our progress in taking action on human rights
Salient human rights issuesProgress in First Half 2021
•Vulnerable groups may be impacted by misuse of our services by others
•Remote Indigenous populations may face challenges with access to banking
services
•Information security and data privacy
•Supported customers at increased risk of vulnerability, with 18,000 customers receiving
assistance through vulnerability specialist teams
•Progressed program on financial crime risks
•Progressed Safer Children, Safer Communities program
•Labour and land-related rights for vulnerable groups subject to
marginalisation, discrimination or exploitation
•Progressed implementation of our updated ESG Credit Risk Policy
•Reviewed our position on certain sectors to include further guidance on human rights risks
•Reducing work-related mental ill-health and supporting employee wellbeing
remains a priority
•Discrimination and harassment can impact our diverse workforce
•Refreshed Indigenous Cultural Awareness training
•Supported the psychological health and safety of our workforce in response to COVID-19,
including adapting to new ways of working
•Workers in our supply chain may face unfair wages and working conditions•Implemented an updated Responsible Sourcing Program and Code of Conduct
•Submitted and published FY20 Modern Slavery Statement
Progressing our Human Rights Position Statement and 2023 Action Plan.
Embedding our principles
•Updated the Sustainability Risk Management
Framework, to better embed the risk to people and
to the business
•Commenced work on our 2021-23 Reconciliation
Action Plan to better align with UN Declaration on
the Rights of Indigenous Peoples
•New risk appetite measures, to improve tracking,
monitoring and reporting on human rights
Sustainability
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
First Human Rights
Position Statement
and Action Plan.
Commenced reporting
Against UK Modern
Slavery Act (2015).
Determined our
salient human
Rights issues.
Third Human Rights
Position Statement
and Action Plan.
Commenced reporting
in accordance with the Australian
Modern Slavery Act (2018).
Second Human Rights
Position Statement
and Action Plan.
Establish a Group-
wide Human Rights
Working Group.
Founding signatory
of the UN Global
Compact.
1991201620172021
201520182020
First Reconciliation
Action Plan (RAP)
released.
2010

It starts with respect
•Elevated our Sexual Harassment Policy to a
stand-alone policy aligned to the AHRC
1
Respect@Workrecommendations and
industry best practice
•Updated policy on consequences in cases of
sexual harassment
•New HelpLinelaunched to support our people
and report issues and incidents of sexual
harassment
•New training on sexual harassment
developed
Women in leadership
2
(%)
•Targeting 50% women in leadership (49%
March 21)
•Annual Board-determined measurable
objectives set for gender diversity in our
board, senior executives and workforce
CULTURAL DIVERSITYGENDERINDIGENOUS PARITY
•Seeking to better identify and understand the
cultural diversity of our workforce
•Will use this information to develop policies,
training and development to support our
people
•Promote development through a Group-wide
Leadership Shadowing Program
•Employee Action Group with over 1,000
members with 62 different cultural heritages
that work to promote awareness and inclusion
of cultural diversity
1 Australian Human Rights Commission. 2 Refer slide 115 for definitions. 3 Refers to proportion of women in leadership in Group Executives and General Manager population. 4 Refers to % of women in total.
50
Diversity and inclusion strategy focused on 3 key pillars.
Sustainability
•Updating our Reconciliation Action Plan
(RAP)
•Refreshed our cultural competency training,
enabling our people to better support
indigenous customers
•Supporting indigenous customers with
translator services available through our
Indigenous Connection Team
•Improved banking accessibility for over 4,500
indigenous and remote Australians through
Yuri Ingkarninthi, our Indigenous Connection
Team
•Providing access to capital for indigenous
businesses through our partnership with First
Australian's Capital
•Hired 55 indigenous employees in 1H21
Diversity and inclusion.
56
41
30
General workforce
Senior executive
Board
3
% women in leadership by category March 2021
4
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack

Earnings Drivers

41
42
43
47
48
Mar-19Sep-19Mar-20Sep-20Mar-21
Composition of lending and deposits.
Composition of lending (% of total)
64
13
8
2
12
1
Aust. mortgages
Aust. business
Aust. institutional
Aust. other consumer
New Zealand
Other overseas
52
Gross loans
1
($bn)
5.1
1.6
724.9
698.7
695.0
(6.0)
(3.9)
(0.5)
Mar-20
Sep-20
Consumer
Business
WIB
New
Zealand
Other
Mar-21
Customer deposits
1
($bn)
1 Gross loans includes $1.8bn of held for sale assets, customer deposits includes $2.1bn of held for sale liabilities. 2 In AUD.3 Includes Group Businesses and Specialist Businesses. 4 Gross loans.
Revenue
2
Australian mortgage lending
4
($bn)
42
446
441
444
(39)
Sep-19
Mar-20
New
lending
Net run-off
Sep-20
Composition of deposits (% of total)
Lending down 1% and deposits 1% lower over 1H21.
Down 4%
Down 1%
Flat
Up 1%
543.8
555.5
3.8
2.6
2.3
550.3
(11.9)
(2.0)
Mar-20
Sep-20
Consumer
Business
WIB
New
Zealand
Other
Mar-21
26
35
39
Term deposits
Savings
Transaction
Up 1%
Down 1%
Australian mortgage offset ($bn)
Up 12%
Up 3%
3
2
3
+NZ$3.1bn
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
+NZ$2.5bn

2.01
1.90
1.91
1.94
1.96
0.12
0.13
1bp
0.13
0.13
0.13
2.13
2.03
2.04(4bps)
6bps
2bps
(2bps)
1bp2.07
2bps2.09
1H202H20
Notable items
2H20 ex. notable items
Loans
Deposits
Funding
Capital &
other
Liquidity
1H21 ex. notable items
Notable items
1H21
2.09
1.96
1H162H161H172H171H182H181H192H191H202H201H21
NIMNIM excl. Treasury & Markets
Net interest margin.
53
Net interest margin (%)
Net interest margin by division (%)
NIMNIM ex. notables
1H202H201H211H202H201H21
Consumer2.332.412.392.332.412.39
Business3.052.933.173.202.983.05
WIB1.461.231.271.461.231.27
NZ2.061.892.062.071.902.07
Net interest margin (NIM) movement (%)
Up 3bps excluding Treasury & Markets and notable items.
Revenue
Margin ex Treasury & Markets
and notable items up 3bps
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack

94
112
117
120
106
(44)
76
14
75
72
66
69
275
140
259
203
2H191H202H201H21
LifeGeneralLMI and NZ
430
392
350
370
97
30
66
110
527
422
416
480
2H191H202H201H21
Funds AustraliaOther (incl NZ)
Non-interest income.
54
Non-interest income contributors ($m)Net fee income
1
(ex notable items) ($m)
Wealth management income
1
(ex notable items) ($m)Insurance income
1
(ex notable items) ($m)
1 2H20 has been restated to reflect $45m of notable items allocated to net fee income, this has now been allocated $30m to wealth management income and $15m to insurance income.
Revenue
829
755
837
700
700
481
278
595
443
429
499
453
16
10
251
582
1,988
1,675
1,865
2,330
2H191H202H201H21
FeesWealth and insuranceTradingOther
355
372
359
369
491
469
344
378
101
61
75
57
947
902
778
804
2H191H202H201H21
Facility feesNet transaction feesOther non-risk fee income
Up 25%Up 11%
Down 22%Up 85%
Up 3%
Down 14%
Up 15%
Down 1%
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack

6,540
5,257
119
5,236
745 5,981
(1,283)
(99)
(6)
(35)
2H20 reported
Notable items
2H20 ex-notable
items
Ongoing
expenses
Investment (ex.
Risk &
Compliance)
Risk &
Compliance
COVID-19
response
1H21 ex-notable
items
Notable
items
1H21 reported
1,164
398
405
36,849
38,747(69)
Sep-20
Risk and
compliance
COVID-19
response
Investment (ex.
Risk &
Compliance)
Other
Mar-21
Expense movements 2H20 – 1H21 ($m)
Expenses.
55
FTE (#)
Expenses
Up 1,898 or 5%
Investment spend mix ($m)
296
368
264
336
470
401
96
154
106
728
992
771
1H202H201H21
Other technology
Risk and compliance
Growth and productivity
Investment spend
($m)
1H202H201H21
Expensed296384417
Capitalised432608354
Total investment
spend
728992771
Investment spend
expensed
41%39%54%
Capitalised software
($m)
Mar-
20
Sep-
20
Mar-
21
Opening balance2,3652,3352,430
Additions430605348
Amortisation(393)(406)(384)
Other
1
(67)(104)(134)
Closing balance2,3352,4302,260
Average amortisation period2.7yrs2.7yrs3.0yrs
Other deferred expenses
2
Deferred acquisition costs5352-
Other deferred expenses29318
Down $21m or flat
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
1 Includes write-offs, impairments and foreign exchange translation. 2 Deferred expenses principally relate to capitallsedcosts in Specialist Businesses. It does not include insurance deferred acquisition costs (which are offset to revenue) or mortgage
broker costs (which are offset to net interest income). Other deferred expenses at March 2021 were lower from a reclassificationto assets held for sale.

Impairment benefit in 1H21.
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack56
Lower new IAPs, lower stress, better economic outlook.
170
351
283
144
(170)(170)
(147)
(194)
535
438438
318
(74)
1,619
366
(640)
461
2,238
940
(372)
2H191H202H201H212H191H202H201H212H191H202H201H212H191H202H201H212H191H202H201H21
Impairment charges and stressed exposures (bps)
Impairment charges ($m)
New
IAPs
Write-backs &
recoveries
Write-offs
direct
Other mvmts
in CAP
Individually assessed
Collectively assessed
(11bps)
160bps
-100
0
100
200
300
400
-20
0
20
40
60
80
2008200920102011201220132014201520161H172H171H182H181H192H191H202H201H21
Impairment charge to average loans annualised (lhs)Stressed exposures to TCE (rhs)
Total
Impairment charges

Credit quality
and provisions

Australian deferrals.
58
Total mortgage deferral packagesprovided (% by balances)Mortgage deferrals update
Total business deferral packagesprovided (% by balances)Business deferrals update
•Support provided to ~16% of eligible business lending balances
•At the end of March 95% of customers returned to full payments and
<5%requested further assistance. Of those that requested further
assistance:
−Most impacted industries were: Property & property services,
Business services, and Accommodation and hospitality sectors;
and
−Most impacted states were: Victoria followed by NSW
1 Excludes Auto loans.
Credit quality
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
92.4
4.0
3.5
0.1
Returned to normal
repayment or paid down
Restructured
Hardship
Remain on deferral
Accounts in hardship following
deferral represent 30bpsof total
Australian mortgage accounts
(43bpsby balance)
95.0
4.0
1.0
Returned to normal
repayment or paid down
In arrears
Restructured or hardship
•139kaccounts had returned to full payments or paid down their loan
($50.8bnin balances)
•9.6kaccounts required further assistance ($4.1bnin balances)
−4.5k accounts moved into hardship arrangements following the
end of the deferral period ($1.9bn in balances)
−5.1k accounts had their loans restructured, mostly moving to a 12-
month interest only period ($2.2bn in balances)
•A very small number of accounts remained in deferral in April
$0.4bn balances, 3.1k accounts
missed payments or in hardship
1
~149,000
accounts
supported
($55bn in
balances)
~33,000
business
customers
supported
($10bn in
balances)

New Zealand deferrals.
59
Total mortgage deferral packagesprovided (% by balances)Mortgage deferrals update
Total business support packagesprovided (% by balances)
•9kbusiness accounts supported with NZ$2.3bn in balances (~9% of
eligible business lending balance)
•Support provided included temporary overdrafts, temporary change
to interest only, and deferral packages, with the majority of
customers choosing temporary overdrafts or changing to interest
only
•At end of March 2021 no COVID-19 temporary support packages
were outstanding with loans either paid down or returned to normal
repayment
•No temporary support packages outstanding at end of March 2021
Credit quality
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
94.0
2.0
4.0
Returned to normal
repayment or paid down
Restructured
Hardship
Accounts in hardship following deferral
represent 29bpsof total New Zealand
mortgage accounts (42bpsby balance)
22.7
77.1
0.2
Temporary overdraft
Temporary change to
interest-only
Deferral package
•29k mortgage accounts supported with NZ$6.5bn in balances (~11%
of eligible mortgage lending)
•1.6kaccounts required further assistance (NZ$0.4bnin balances)
−1k accounts moved into hardship arrangements following the end
of the deferral period (NZ$0.2bn in balances)
−0.6k accounts had their loans restructured (NZ$0.1bn in balances)
•A very small number of accounts remained in deferral in April
No significant changes in levels of
stressed assets since COVID-19
began, remaining around 3%
~29,000
accounts
supported
(NZ$6.5bn in
balances)
~9,000
business
customers
supported
(NZ$2.3bn in
balances)
Business support packages update

60
412
606
611
564
925
943
1,051
1,561
1,327
1,642
1,578
2,317
2,247
1,806
766
818
1,019
1,032
853
229
171
795
708
958
3,995
3,922
5,788
6,159
5,508
Mar-19Sep-19Mar-20Sep-20Mar-21
Overlay
Stage 1 CAP
Stage 2 CAP
Stage 3 CAP
Stage 3 IAP
Provisions lower from improved outlook.
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
Provisions for impairmentsTotal impairment provisions ($m)
Mar-20Sep-20Mar-21
Loan provisions to gross loans (bps)808879
Impaired asset provisions to impaired assets (%)504147
Collectively assessed provisions to credit RWA (bps)140154142
Provisions
4
Higher overlay to
address the
potential for loss
once COVID-19
support measures
unwind
Lower CAP from
improved asset
quality metrics,
better economic
outlook
Lower new IAPs
Forecasts for base case
economic scenario
2
September 2020March 2021
3
2021202220212022
GDP growth2.5%2.7%4.0%3.0%
Unemployment7.5%6.7%6.0%5.3%
Residential property prices(0.4%)7.5%10.0%10.0%
Expected Credit Loss
1
(ECL) ($m)
Currently holding ~$1.6bn
in impairment provisions
above the base case
economic scenario
5,482
3,902
7,865
Reported
probability-weighted
ECL
100% base case
ECL
100% downside
ECL
1 Includes ECL Overlays and IAP. Excludes provisions for debt securities. 2 GDP and residential property price growth is annual growth to December each year. Unemployment rate forecast is at year end. 3 Forecast date is February 2021. 4 Overlay from Mar-20
includes New Zealand overlay.

Stage 1 exposures
increased, mainly
mortgages and
institutional TCE
growth
Stage 2 reduction
driven by improved
risk profile /
macroeconomic
outlook and COVID-19
package run-off
Stage 3 exposures
decreased, from net
transfers to Stages 1
and 2, mainly
mortgages
(delinquency
performance) and
institutional (portfolio
run-off)
Provision cover by portfolio category.
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
Exposures as a % of TCE
0.17
0.20
0.26
0.19
0.48
0.50
0.80
0.66
0.55
0.62
0.85
0.75
3.03
2.96
5.99
5.30
95.77
95.72
92.10
93.10
Sep-19Mar-20Sep-20Mar-21
Fully
performing
portfolio
Watchlist &
substandard
90+ day past
due and not
impaired
Impaired
Non-stressed
but significant
increase in
credit risk
61
Sep-19Mar-20Sep-20Mar-21
Stage 1 provisions
Fully performing portfolio
Small cover as low probability of
default (PD)
0.090.120.110.10
Stage 2 provisions
Non-stressed but significant
increase in credit risk
Lifetime expected loss based on
future economic conditions
4.326.783.413.29
Watchlist & substandard
Still performing but higher cover
reflects deterioration
5.2710.678.259.07
Stage 3 provisions
90+ day past due and not impaired
In default but strong security11.0711.6111.9812.91
Impaired assets
In default. High provision cover
reflects expected recovery
44.9250.0941.4547.03
Credit quality
Provisioning to TCE (%)

Portfolio composition.
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack62
Asset composition (%)Loan composition at 31 March 2021 (% of total)
Exposure by risk grade at 31 March 2021 ($m)
1 For March 2021, includes assets held for sale. 2 Risk grade equivalent. 3 Exposure by booking office.
Total assets ($889bn)
Mar-20Sep-20Mar-21
Loans747677
Available-for-sale securities and investment securities91010
Trading securities and financial assets at fair value
through income statement
342
Derivative financial instruments633
Cash and balances with central banks534
Collateral paid and other financial assets111
Intangible assets111
Life insurance assets and other assets
1
122
Standard and Poor’s Risk Grade
2
Australia NZ / PacificAmericasAsiaEuropeGroup% of Total
AAA to AA-
148,193 16,878 7,694 997 819 174,581 16%
A+ to A-
35,054 4,557 3,259 1,889 3,192 47,951 5%
BBB+ to BBB-
58,288 11,389 2,139 3,197 2,136 77,150 7%
BB+ to BB
64,600 13,319 427 1,095 267 79,708 7%
BB- to B+
62,191 7,173 230 62 200 69,856 7%
<B+
9,297 1,468 46 173 0 10,984 1%
Mortgages
508,985 63,358 -12 -572,355 53%
Otherconsumer products
35,492 4,134 ---39,626 4%
Total committed exposures (TCE)
922,100122,27613,7957,4266,6141,072,211
Total committed exposures (TCE) at 30 September 2020
900,866 120,215 12,484 21,162 5,528 1,060,255
Exposure by region
3
(%)
86%11%1%1%1%100%
72
17
9
2
Housing
Business
Institutional
Other consumer
Total loans
$690bn
Credit quality

Loan portfolio composition.
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack63
Top 10 exposures to corporations and NBFIs
5
(% of TCE)
Top 10 exposures to corporations & NBFIs
at 31 March 2021 ($m)
Exposures at default
1
by sector ($bn)
1 Exposures at default is an estimate of the committed exposure expected to be drawn by a customer at the time of default. Excludes consumer lending. 2 Finance and insurance includes banks, non-banks, insurance companies and other firms
providing services to the finance and insurance sectors. 3 Property includes both residential and non-residential property investors and developers and excludes real estate agents. 4 Construction includes building and non-building construction, and
industries serving the construction sector. 5 NBFI is non-bank financial institutions.
1.0
1.1
1.0
1.0
1.0
1.1
1.0
Sep-16Sep-17Sep-18Sep-19Mar-20Sep-20Mar-21
06001,2001,8002,4003,000
BBB
BBB+
BBB
BBB+
BB+
A+
BBB+
A-
A-
A+
S&P rating or equivalent
The single largest
corporation/NBFI
exposure is 0.3% of TCE
2
4
Credit quality
Clearing house
membership
020406080100120140160
Other
Mining
Accommodation, cafes
& restaurants
Construction
Utilities
Transport & storage
Property services & business
services
Agriculture, forestry & fishing
Manufacturing
Services
Wholesale & retail trade
Property
Government admin. & defence
Finance & insurance
Mar-20
Sep-20
Mar-21
Includes securities
held in liquid assets
portfolio
3

0.67
0.58
0.44
0.27
0.20
0.22
0.150.15
0.14
0.17
0.17
0.20
0.26
0.19
0.46
0.35
0.31
0.26
0.25
0.33
0.34
0.370.39
0.43
0.48
0.50
0.80
0.66
2.07
1.24
0.85
0.71
0.54
0.65
0.56
0.570.55
0.50
0.55
0.62
0.85
0.75
3.20
2.17
1.60
1.24
0.99
1.20
1.05
1.09
1.08
1.10
1.20
1.32
1.91
1.60
Sep-10Sep-12Sep-13Sep-14Sep-15Sep-16Sep-17
Mar-18
Sep-18
Mar-19
Sep-19
Mar-20
Sep-20
Mar-21
Stressed exposures down 31bps in 1H21.
64
Decrease in impaired, 90+ days past due and not impaired and watchlist.
1 Facilities 90 days or more past due date not impaired. These facilities, while in default, are not treated as impaired for accounting purposes. 2 Group 90+ day mortgage delinquencies, Australian 90+ day mortgage delinquencies decreased by 42bps. 3
Includes exposures that are managed on a facility by facility basis.
Credit quality
Stressed exposures as a % of TCEMovement in stress categories (bps)
New and increased gross impaired assets ($m)
3
1,194
997
958
708
609
607
633
1,078
477
589
440
471
450
519
550
897
864
222
2H121H132H131H142H141H152H151H162H161H172H171H182H181H192H191H202H201H21
Watchlist and
substandard
•Upgrades in business lending following reviews
coupled with improved delinquencies in small
business
90+ days past due
and not impaired
1
•Decrease in mortgage 90+ delinquencies of
39bps
2
Impaired
•Lower new IAPsand return to performing and
run-off mostly from small business and
institutional portfolios
132
6
30
1
22
191
(7)
(14)
2
(12)
160
Mar-20
Impaired
90+ dpd not
impaired
Substandard
Watchlist
Sep-20
Impaired
90+ dpd not
impaired
Substandard
Watchlist
Mar-21
1
1
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack

Corporate and business stressed exposures.
1 Services includes education, health & community services, cultural & recreational and personal & other services.
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack65
Corporate and business stressed exposures by industry sector ($bn)
Credit quality
Stress to TCE by sector
SectorProperty
Accomm.,
cafes &
restaurants
Wholesale &
retail trade
Agriculture,
forestry& fishing
Property &
business
servicesServices
1
Manufacturing
Construction
Transport&
storageMining
Finance &
InsuranceUtilities
Sep-20 (%)2.816.0
6.2
6.65.1 4.0
3.5
5.83.12.30.20.2
Mar-21 (%)2.914.6
4.8
6.04.33.7
3.3
6.12.73.40.20.2
Reduction in part due to
lower stress in motor vehicle
retailing and services
Increase reflects small
number of names mainly
in business division
Mostly downgrades
to watchlist
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
Property
Accommodation, cafes
& restaurants
Wholesale &
retail trade
Agriculture, forestry &
fishing
Property &
business services
Services
Manufacturing
Construction
Transport & storage
Mining
Finance & insurance
Utilities
Mar-20Sep-20Mar-21

Sectors in focus.
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack66
Accommodation, cafes and restaurants
Accommodation, cafes & restaurants and Construction.
1 Includes impaired exposures. 2 Percentage of portfolio TCE. 3 Fully secured: Secured loan to collateral value ratio ≤ 100%, Partially secured: Secured loan to collateral value ratio > 100%, but < 150%, Unsecured: Secured loan to collateral value ratio
> 150%, or no security held.
Credit quality
Mar-20Sep-20Mar-21
Total committed exposures
(TCE)
$9.7bn$9.8bn$9.7bn
Lending$8.7bn$8.5bn$8.3bn
As a % of Group TCE0.900.920.91
% of portfoliograded as
stressed
1,2
4.5716.0014.55
% of portfolio impaired
2
0.380.730.67
Portfolio security composition
3
(TCE) (%)
Portfolio by sub-sector (TCE) (%)
38
32
24
6
Accommodation
Pubs, Taverns and
Bars
Cafes and
Restaurants
Clubs (Hospitality)
67
25
8
Fully Secured
Partially Secured
Unsecured
Construction
Portfolio security composition
3
(TCE) (%)Portfolio by sub-sector (TCE) (%)
Mar-20Sep-20Mar-21
Total committed
exposures (TCE)
$11.7bn$11.5bn$11.1bn
Lending$8.5bn$7.9bn$7.6bn
As a % of Group TCE1.081.091.04
% of portfoliograded as
stressed
1,2
4.045.856.06
% of portfolio impaired
2
0.921.651.11
61
19
20
Fully Secured
Partially Secured
Unsecured
24
12
9
6
16
7
26
Building Construction
Non-Building
Construction
Site Preparation
Services
Building Structure
Services
Installation Trade
Services
Building Completion
Services
Other Construction
Services

Sectors in focus.
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack67
Commercial propertyCommercial property exposures % of TCE and % in stress
Commercial property portfolio composition (TCE) (%)
Commercial property.
1 Includes impaired exposures. 2 Percentage of commercial property portfolio TCE.
Credit quality
Mar-20Sep-20Mar-21
Total committed exposures (TCE)$67.6bn$65.9bn$67.4bn
Lending$52.7bn$51.9bn$52.2bn
As a % of Group TCE6.256.226.28
Median risk grade (S&P equivalent)BB+BB+BB+
% of portfoliograded as stressed
1,2
1.842.832.92
% of portfolio impaired
2
0.110.160.14
0
5
10
15
20
0
2
4
6
8
Sep-11
Mar-12
Sep-12
Mar-13
Sep-13
Mar-14
Sep-14
Mar-15
Sep-15
Mar-16
Sep-16
Mar-17
Sep-17
Mar-18
Sep-18
Mar-19
Sep-19
Mar-20
Sep-20
Mar-21
Commercial property as % of TCE (lhs)
Commercial property % in stress (rhs)
33
20
21
12
12
2
Commercial Offices
Residential
Retail
Industrial
Corporate
Other
23
8
6
2
3
11
47
NSW & ACT
VIC
QLD
SA & NT
WA
NZ & Pacific
Institutional
40
7
38
15
Investors &
Developers <$10m
Developers >$10m
Investors >$10m
Diversified Property
Groups and Property
Trusts >$10m
Borrower type (%)Region (%)Sector (%)

Sectors in focus.
68
Retail tradeRetail trade exposure by sub-sector (TCE) ($bn)
Retail trade portfolio graded as stressed (%)Retail trade by internal risk grade category (TCE) ($bn)
Retail trade.
1 Includes impaired exposures. 2 Percentage of retail trade portfolio TCE.
Credit quality
Mar-20Sep-20Mar-21
Total committed exposures (TCE)$15.5bn$15.0bn$13.9bn
Lending$11.1bn$9.5bn$8.7bn
As a % of Group TCE1.431.411.30
Median risk grade
BB
equivalent
BB
equivalent
BB
equivalent
% of portfoliograded as stressed
1,2
6.707.265.48
% of portfolio impaired
2
1.441.841.82
3.02
4.67
4.84
5.43
6.05
6.70
7.26
5.48
Sep-17Mar-18Sep-18Mar-19Sep-19Mar-20Sep-20Mar-21
7.0
6.4
4.4
4.0
3.6
3.4
Sep-20Mar-21Sep-20Mar-21Sep-20Mar-21
Investment
Sub-investment
Stressed
Decreasing stress reflects improving economic
conditions, in particular the improved trading across the
motor vehicle industry
Personal and household
goods retailing
Motor vehicle retailing
and services
Food retailing
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
7.0
4.6
3.8
7.0
4.4
3.6
6.4
4.0
3.4
Personal and household
goods retailing
Motor vehicle retailing and
services
Food retailing
Mar-20Sep-20Mar-21

0.50
1.50
2.50
Sep-18Mar-19Sep-19Mar-20Sep-20Mar-21
1.92%
Australian consumer finance.
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack69
Australian consumer finance portfolio
1
Total consumer finance 90+ day delinquencies (%)
Australian consumer finance portfolio ($bn)
1
Australian consumer finance portfolio ($bn)
1 Does not include Margin Lending.
Credit quality
8.3
3.8
6.3
18.4
6.8
3.0
5.9
15.7
6.8
2.8
5.4
15.0
Credit cardsPersonal loansAuto loans
(consumer)
Total consumer
finance
Mar-20Sep-20Mar-21
2% of Group loans.
Consumer unsecured 90+ day
delinquencies down 17bps
mostly due to portfolio
improvement
0
1
2
3
0
5
10
15
20
25
Mar-19
May-19
Jul-19
Sep-19
Nov-19
Jan-20
Mar-20
May-20
Jul-20
Sep-20
Nov-20
Jan-21
Mar-21
Unsecured performing loans balance ($bn lhs)
Unsecured 90+ day delinquencies balance ($bn rhs)
Mar-20Sep-20Mar-21
Lending $18.4bn$15.7bn$15.0bn
30+ day delinquencies(%)4.223.623.58
90+ day delinquencies(%)1.972.091.92
90+ day delinquencies down 17bps over the period, reflecting 26bps improvement in
portfolio, offset by 9bps from contraction in loans.

Australian mortgage delinquencies.
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack70
Lower over the half in line with hardship balances.
1 Financial hardship assistance is available to customers experiencing unforeseen events, including changes in income due to illness, a relationship breakdown or natural disasters. Hardship assistance often takes the form of a reduction or deferral of
repayments for a short period. Customer requesting financial hardship assistance must provide a statement of financial position and an assessment is made regarding the customer’s eligibility. 2 Mortgage loss rates are write-offs for the 6 months
ending.
Mortgage asset quality
Australian mortgage delinquencies (%)
Australian mortgagesMar-20Sep-20Mar-21
Total portfolio 30+ day delinquencies(bps)188214179
Total portfolio 90+ day delinquencies(bps)
(inc. impaired mortgages)
94162120
Investment property loans
90+ day delinquencies(bps)
78148118
Interest only loans
90+ day delinquencies(bps)
7312591
Customers in hardship
1
(by balances, bps)105129113
Consumer properties in possession (number)468256180
Impaired mortgages (by balances, bps)986
Australian mortgage 90+ day delinquencies by State (%)
0.0
1.0
2.0
3.0
Mar-18Sep-18Mar-19Sep-19Mar-20Sep-20Mar-21
NSW/ACTVIC/TAS
QLDWA
SA/NTALL
0.0
1.0
2.0
3.0
4.0
Mar-18Sep-18Mar-19Sep-19Mar-20Sep-20Mar-21
90+ day past due total30+ day past due total
Australian mortgage hardship balances ($bn and # of
accounts)
0
4,000
8,000
12,000
16,000
20,000
0
1
2
3
4
5
6
7
Mar-18
May-18
Jul-18
Sep-18
Nov-18
Jan-19
Mar-19
May-19
Jul-19
Sep-19
Nov-19
Jan-20
Mar-20
May-20
Jul-20
Sep-20
Nov-20
Jan-21
Mar-21
Balances ($bn, lhs)
Number of accounts (rhs)

Australian mortgage portfolio composition.
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
1 Flow is new mortgages settled in the 6 months ended 31 March 2021 and includes RAMS. 2 Includes amortisation. Calculated at account level, where split loans represent more than one account. 3 Loans ahead on payments exclude equity/line of
credit products as there are no scheduled principal payments. 4 Mortgage loss rates are write-offs for the 6 months ending.
71
Owner occupiers driving new flows; more customers choosing fixed rates.
Mortgage asset quality
Australian mortgage portfolio
Mar-20
balance
Sep-20
balance
Mar-21
balance
1H21
Flow
1
Total portfolio ($bn)
445.7440.9
443.642.0
Owner occupied (OO) (%)
59.460.4
62.073.6
Investment property loans (IPL) (%)
37.636.6
35.226.2
Portfolio loan/line of credit (LOC) (%)
2.92.5
2.30.2
Variable rate / Fixed rate (%)
77 / 2372 / 28
68/3263/37
Interest only (I/O) (%)
23.420.6
18.213.6
Proprietary channel (%)
55.554.8
54.248.2
First home buyer (%)
8.89.0
9.413.4
Mortgage insured (%)
16.116.0
16.116.1
Mar-20Sep-20Mar-21
1H21
Flow
1
Average loan size
2
($’000)276275284
367
Customers ahead on repayments
including offset account balances
3
(%)
707172
Actual mortgage losses net of
insurance($m, for the 6 months
ending)
675844
Actual mortgage loss rateannualised
4
(bps, for the 6 months ending)
332
Australian mortgage portfolio and 1H21 flow by
product and repayment type (%)
3
16
22
7
52
3
15
22
6
55
2
13
22
5
57
0.2
10
18
4
69
LOCIPL-I/OIPL-P&IOO-I/OOO-P&I
Mar-20 (Portfolio)
Sep-20 (Portfolio)
Mar-21 (Portfolio)
1H21 Flow
76
75
77
72
68
24
25
23
28
32
1H192H191H202H201H21
VariableFixed
Australian mortgage portfolio by interest rate type
(% by balances)

Australian mortgage portfolio.
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack72
Australian housing loan-to-value ratios (LVRs) (%)
Majority of borrowers have significant equity.
1 Dynamic LVR is the loan-to-value ratio taking into account the current loan balance, changes in security value, offset accountbalances and other loan adjustments. Property valuation source CoreLogic. 2 Weighted average LVR calculation considers
size of outstanding balances. 3 Average LVR of new loans is on rolling 6 months. 4 Interest rates for Westpac Rocket Repay Home Loan/Rocket Investment Loan inclusive of Premier Advantage Package discount assuming LVR up to 70%.At 14 April
2021.
Mortgage asset quality
Australian mortgage portfolio LVRsMar-20 balanceSep-20 balanceMar-21 balance
Weighted averages
2
LVR at origination (%)737373
Dynamic LVR
1
(%)575654
LVR of new loans
3
(%)727172
20
16
42
13
9
0
N/A
18
14
47
12
7
2
56
17
16
8
2
1
1
0
10
20
30
40
50
60
70
80
90
100
0<=6060<=7070<=8080<=9090<=9595<=100>100
1H21 drawdowns LVR at originationPortfolio LVR at originationPortfolio dynamic LVR
1
Serviceability assessment rate
4
(%)
3.19
3.74
2.50
2.50
5.69
6.24
Owner Occupied P&IInvestor P&I
Serviceability
assessment rate
Floor
rate
5.05%
•Loans are assessed at the higher of the customer
rate (including any life-of-loan discounts) plus a
2.50% buffer, or the minimum assessment rate
(called the “floor rate”)
•Westpac applies a floor rate of 5.05%
•Interest only loans are assessed based on the
residual P&Iterm using the applicable P&Irate
•Fixed rate loans are assessed on the variable rate to
which the loan will revert after the fixed period –
usually higher than the fixed rate
2.50% buffer applied
in serviceability test

10
9
8
20
Mar-21
Investment property loans - incentive is to keep
repayments high for tax purposes
Accounts opened in the last 12 months
Loans with structural restrictions on repayments e.g. fixed
rate
Residual - less than 1 month repayment buffer
Loans ‘on time’ and <1 mth ahead (% of balances)
Australian mortgage portfolio repayment buffers.
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack73
Offset account balances
2
($bn)
Australian home loan customers ahead on repayments
1
(% by balances)
>70% of customers remain ahead of scheduled repayments.
1 Customer loans ahead on payments exclude equity/line of credit products as there are no scheduled principal payments. Includesmortgage offset accounts. ‘Behind’ is more than 30 days past due. ‘On time’ includes up to 30 days past due.
2 Includes RAMS from September 2020 onwards.
Mortgage asset quality
31
33
35
36
37
39
39
40
41
42
46
48
Sep-15
Mar-16
Sep-16
Mar-17
Sep-17
Mar-18
Sep-18
Mar-19
Sep-19
Mar-20
Sep-20
Mar-21
Linked to I/O mortgagesLinked to P&I mortgages
2
28
20
16
6
6
21
2
27
18
16
66
24
2
27
20
16
6
6
24
BehindOn time< 1 Mth< 6 Mths< 1 Yr< 2 Yrs>2 Yrs
Mar-20Sep-20Mar-21
47
10
12
14
13
20
26
5
4
6
8
8
19
46
10
<75k
75k to
100k
100k to
125k
125k to
150k
150k to
200k
200k to
500k
>500k
Owner OccupiedInvestment Property Loan
Applicant gross income band
(1H21 drawdowns, % by balances)

Australian mortgage portfolio underwriting.
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack74
Credit policy at April 2021
Australian mortgage portfolio by
year of origination (% of total book)
1 HEM is the Household Expenditure Measure, produced by the Melbourne Institute.
Mortgage asset quality
2
1
1
1
2
2
2
3
4
6
8
9
11
12
12
16
6
Pre-2006
2006200720082009201020112012201320142015201620172018201920202021
Calendar year
Income
•Income verified via payslips or tax returns with other supporting documentation such as
PAYG income statements and salary credits to accounts where required (minimum
standards for documents apply)
•Discount of at least 20% applies to less certain income sources i.e. rental income, bonuses
Credit Score &
Credit Bureau
•Bespoke application scorecards segmented by new and existing customers
•Credit and score override rates tracked and capped
•Credit bureau checks required
Expenses
•Expenses are assessed as the higher of a borrower’s HEM
1
comparable expenses or HEM
,
plus any expenses that are not comparable to HEM (e.g. private school fees, life insurance)
•HEM is adjusted by income bands, post settlement postcode location, marital status and
dependants
•17 expense categories used, aligned with Melbourne Institute guidelines and LIXI standards
Serviceability
assessment
•For serviceability assessment, interest rate applied to all mortgage debt is the greater of:
–Actual interest rate plus buffer of 2.50%; and
–Minimum assessment rate of 5.05% (effective 9 October 2020, previously 5.35%)
•For IO Loans, serviceability is assessed on a P&I basis over the residual term
•All existing customer commitments are verified
•Review Westpac Group accounts and Comprehensive Credit Reporting (CCR) to identify
customer commitments
•Limits apply to higher debt-to-Income lending; above 7x referred for manual credit
assessment
•Credit card repayments assessed at 3.8% of limit
Genuine savings
deposit
requirements
•Minimum 5% proof of genuine savings for higher LVR loans (typically LVR >85%). First
Home Owners Grants not considered genuine savings
Security
•LVR restrictions apply depending on location, property value and nature of security
•Restrictions on high-density apartments based in postcode defined areas (generally Capital
City CBD’s) and properties in towns heavily reliant on a single industry (e.g. mining, tourism)
LMI
•Mortgage insurance for higher risk loans, such as high LVRs. Exception policy applies for
certain professionals and Westpac Group staff.

Australian mortgages.
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack75
Scheduled I/O term expiry
2
(% of total I/O loans)
I/O lending by dynamic LVR
1
and income band (%)
Interest only and investment property lending.
1 Dynamic LVR is the loan-to-value ratio taking into account the current loan balance, changes in security value, offset accountbalances and other loan adjustments. Property valuation source CoreLogic. 2 Based on outstanding balance. Excludes line
of credit loans, I/O loans without date (including bridging loans and loans with construction purpose) and I/O loans that shouldhave switched to P&I but for the previously announced mortgage processing error. 3 Includes amortisation. Calculated at
account level where split loans represent more than one account. 4 Customer loans ahead on payments exclude equity/line of credit products as there are no scheduled principal payments.
Mortgage asset quality
11
6
2
27
17
6
17
10
3
55
33
12
<=60%60%<=80%>80%
Dynamic LVR bands (%)
<$100k$100k - $250k>$250k
25
18
11
11
11
23
1
0<1 Yr
1<2 Yrs2<3 Yrs3<4 Yrs4<5 Yrs
5<10 Yrs
10 Yrs+
Applicant gross income bands
Chart does not add due to rounding
Investment property portfolio by number of
properties per customer (%)
64
25
7
2
1
1
1
2
3
4
5
6+
Investment property lending (IPL) portfolioMar-20Sep-20Mar-21
Investment property loans ($bn)167161157
Weighted
averages
1
LVR of IPL loans at origination (%)727272
LVR of new IPL loans in the period
2
(%)706970
DynamicLVR
1
of IPL loans (%)575754
Average loan size
3
($’000)322320320
Customers ahead on repayments
including offset accounts
4
(%)
606263
90+ day delinquencies (bps)78148118
Annualised loss rate (net of insurance claims) (bps)533

Lenders mortgage insurance arrangements.
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack76
Insurance statistics
Lenders mortgage insurance (LMI)
•Where mortgage insurance is required, mortgages
are insured through Westpac Lenders Mortgage
Insurance
1
(WLMI), and reinsured through external
LMI providers, based on risk profile
•In March, Westpac announced it would sell WLMIto
Arch Capital Group (Arch) and enter into a 10-year
exclusive supply agreement for Arch to provide
lenders mortgage insurance to the Group
•Completion of this transaction is expected to occur
by the end of August 2021, after which all LMI
required on WBC mortgages will be underwritten by
Arch
•Arch has provided reinsurance services to WLMI
since 2011
•Westpac will retain responsibility for certain legacy
matters and provide protection to Arch through
customary warranties and indemnities
•WLMIremains well capitalised(separate from bank
capital) and subject to APRA regulation. WLMI
targets a capitalisationratio of 1.2x PCR
2
and has
consistently been above this target
Lenders mortgage insurance arrangements from 1 October 2020
WLMI continues to provide mortgage insurance to Westpac.
1 Since 18 May 2015 WLMI has underwritten all mortgage insurance, where required, on Westpac originated mortgages. The in-force portfolio of loans includes mortgage insurance provided by external providers. 2 Prudential Capital Requirement (PCR)
calculated in accordance with APRA standards. 3 Insured coverage is net of quota share. Third party has decreased compared to30September 2020 due to a reclassification of loans where the insurance is provided by WLMI and 100% reinsured
through Arch LMI. 4 Loss ratio is claims over the total earned premium plus exchange commission. 5 LMI gross written premium includes loans >90% LVR reinsured with Arch Reinsurance Limited. 1H21 gross written premium includes $104m from the
arrangement (2H20: $61m and 1H20: $63m).
Westpac’s Australian
mortgage portfolio at 31 March 2021 (%)
Mortgage asset quality
LVR BandInsurance
•LVR ≤80% Not required
•LVR >80% to ≤ 90%•Where insurance required, insured through WLMI
•LMI not required for certain borrower groups
•Reinsurance arrangements:
−40% risk retained by WLMI
−60% risk transferred through quotashare arrangements with Arch LMIPty Ltd,
Sompo International (Endurance Speciality), Everest Re and Trans Re
•LVR >90%•Where insurance required, insured through WLMI
•LMI not required for certain borrower groups
•100% reinsurance through Arch LMIPty Ltd
1H202H201H21
Insuranceclaims ($m)5212
WLMI claims ratio
4
(%)15673
WLMI grosswritten
premiums
5
($m)
8991154
84
5
11
Not insured
Insured by third parties
Insured by WLMI
3

Capital, funding
and liquidity

10.81
11.13
82
12
20
812.34
3212.66
(1)
Mar-20Sep-20Cash
earnings
Deductions
and other
RWAFX
translation
impact
DivestmentsMar-21SalesPro forma
Mar-21
•CET1 capital ratio of 12.34%, up 121bps from 30 September 2020
•RWA declined 20bps mostly from lower credit RWA due to a reduction in lending and
improved credit metrics
•Capital deductions and other capital movements mostly reflect deferred tax assets and
higher other comprehensive income. Partly offset by higher earnings held in entities
that are not consolidated for regulatory purposes
•Divestment impact 8bps from sale of Westpac’s stake in Zip Co Limited
•2020 final dividend paid was offset by the fully underwritten DRP
•Pro forma CET1 ratio includes the expected 32bp benefit from announced divestments
(Vendor Finance, Westpac General Insurance, Westpac Pacific and Lenders Mortgage
Insurance) and the sale of Coinbase
CET1 capital ratio 12.3%.
78
Capital, Funding and Liquidity
Key capital ratios (%)
Mar-20Sep-20Mar-21
CET1 capital ratio 10.811.112.3
Additional Tier 1 capital2.12.12.2
Tier 1 capital ratio12.913.214.5
Tier 2 capital3.43.13.9
Total regulatory capital ratio16.316.418.4
Risk weighted assets
(RWA)($bn)
444438429
Leverage ratio 5.75.86.3
Level 1 CET1 ratio11.111.412.6
Internationally
comparable ratios
1
Leverage ratio
(internationally comparable)
6.36.56.9
CET1 capital ratio (internationally
comparable)
15.816.518.1
1 Internationally comparable methodology aligns with the APRA study titled ‘International Capital Comparison Study’ dated 13 July 2015.
CET1 capital ratio movements (%, bps)
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack

369.1
359.4
347.1
(4.4)
(1.6)
(1.6)
(1.0)
(1.4)
(2.3)
Mar-20Sep-20Credit metricsLower lendingCOVID-19 overlayMethodology
changes
FX
translation
impacts
Counterparty credit
and mark-to-
market risk
Mar-21
Risk weighted assets.
79
•RWA decreased $9.0bn over 1H21, mostly from lower credit RWA
(CRWA), partly offset by non-credit risk
•CRWA reduced $12.3bn due to:
-Lower corporate and business lending, partly offset by mortgage lending
growth
-Improved asset quality metrics across corporate and small business
portfolios, including $1.6 billion reduction in the RWA overlay for
corporate, business and specialised lending
-Lower counterparty credit and mark-to-market risk
-RWA floor on mortgages to 23.8% increased CRWA $3.7bn
Down $9.0bn or 2.1%
Risk weighted assets ($bn)
Movement in credit risk weighted assets ($bn)
Down $12.3bn or 3.4%
Operational
risk
Decrease from lower credit risk RWA.
Commentary
Capital, Funding and Liquidity
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
443.9
437.9
0.7
2.90.0
428.9
(12.3)
(0.3)
Mar-20Sep-20Credit
risk
Market
risk
IRRBBOtherMar-21

Internationally comparable capital ratio reconciliation.
APRA’s Basel III capital requirements are more conservative than those of the Basel Committee on Banking Supervision (BCBS), leading to lower reported
capital ratios by Australian banks. In July 2015, APRA published a study that compared the major banks’ capital ratios against aset of international peers
1
.
The following details the adjustments from this study and how Westpac’s APRA Basel III CET1 capital ratio aligns to an internationally comparable ratio.
80
1 Methodology aligns with the APRA study titled “International capital comparison study", dated 13 July 2015.
Westpac’s CET1 capital ratio (APRA basis)
(%)
12.3
Equity investmentsBalances below prescribed threshold are risk weighted,compared to a 100% CET1 deduction under APRA’s requirements0.4
Deferred tax assetsBalances below prescribed threshold are risk weighted,compared to a 100% CET1 deduction under APRA’s requirements
0.6
Interestrate risk in the banking
book (IRRBB)
APRA requires capital to be heldfor IRRBB. The BCBS does not have a Pillar 1 capital requirement for IRRBB0.5
Residential mortgages
Lossgiven default (LGD) of 15%, compared to the 20% LGD floor under APRA’s requirements. APRA also appliesa
correlation factor for mortgages higher than the 15% factor prescribed in the Basel rules
1.9
Unsecurednon-retail exposuresLGD of 45%, compared to the 60% or higher LGD under APRA’s requirements0.7
Non-retail undrawn commitmentsCredit conversion factor of 75%, compared to 100% under APRA’s requirements
0.5
Specialised lending
Use of internal-ratings based (IRB) probabilities of default (PD) and LGDs for income producing real estate and project
finance exposures, reduced by application of a scaling factor of 1.06. APRA applies higher risk weights under a supervisory
slotting approach, but does not require the application of the scaling factors
0.7
Currency conversionthreshold
Increase in the A$ equivalent concessional threshold level for small business retail and small to medium enterprise corporate
exposures
0.2
Capitalised expenses
APRA requires these items to be deducted from CET1. The BCBS only requires exposures classified as intangible assets
under relevant accounting standards to be deducted from CET1
0.3
Internationallycomparable CET1 capital ratio18.1
Internationallycomparable Tier 1 capital ratio21.0
Internationallycomparable total regulatory capital ratio25.9
Capital, Funding and Liquidity
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack

Well placed on internationally comparable.
Common equity Tier 1 ratio (%)
1
81
Leverage ratio (%)
1
CET1 and leverage ratios.
1 Comparison group comprises listed commercial banks with assets in excess of A$700bn and which have disclosed fully implementedBasel III ratios or provided sufficient disclosure to estimate. Based on company reports/ presentations. Ratios at 31
December 2020, except for Westpac which is at 31 March 2021, ANZ and NAB which are at 30 September 2020, and Bank of Montreal, Scotiabank, Royal Bank of Canada and Toronto Dominion are at 31 October 2020. Leverage ratio is on a
transitional basis. Where accrued expected dividends have been deducted and disclosed, these have been added back for comparability. US banks are excluded from leverage ratio analysis due to business model differences, for example from loans
sold to US Government sponsored enterprises. NAB has not disclosed an internationally comparable leverage ratio since September 2017. Shows ratios at the last reporting date, which may take account of measures taken by jurisdictions in response to
COVID-19.
Capital, Funding and Liquidity
Norinchukin Bank
NatWest
CBA
Danske Bank
Nordea
Westpac
(18.1%)
Morgan Stanley
Rabobank
ANZ
Lloyds
BPCE
Sumitomo Mitsui
Unicredit
HSBC
NAB
ING Group
Intesa Sanpaolo
Standard Chartered
Barclays
UBS
China Construction Bank
Societe Generale
Deutsche Bank
JPMorgan Chase
Goldman Sachs
Commerzbank
Credit Agricole SA
ICBC
Toronto Dominion Bank
BNP Paribas
Credit Suisse
Mitsubishi UFJ
Bank of America
Royal Bank of Canada
Santander
China Merchants Bank
BBVA
CIBC
Citigroup
Bank of Montreal
Natixis
Scotiabank
Wells Fargo
Mizuho FG
Bank of China
Agricultural Bank of ..
0%
5%
10%
15%
20%
Norinchukin Bank
ICBC
China Construction Bank
Bank of ChinaAgricultural Bank of China
China Merchants Bank
Intesa Sanpaolo
Rabobank
Westpac
(6.9%)
CBA
BBVA
Credit Suisse
Unicredit
ANZ
Lloyds
Nordea
NAB
BPCE
UBS
HSBC
Standard Chartered
Santander
NatWest
Barclays
BNP Paribas
Commerzbank
Credit Agricole SA
ING Group
Societe Generale
Bank of Montreal
Royal Bank of Canada
Scotiabank
CIBC
Deutsche Bank
Natixis
Danske Bank
Toronto Dominion
Sumitomo Mitsui
Mitsubishi UFJ
Mizuho FG
0%
2%
4%
6%
8%
10%
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack

Liquidity and funding.
82
Liquidity coverage ratio
1
(LCR) (quarterly avg, $bn)
LCR lower from reduction in CLF and NCO overlay; NSFR little changed.
1 LCR is calculated as the percentage ratio of stock of liquid assets over the total net cash outflows in a modelled 30 day defined stressed scenario. Liquid assets include HQLAas defined in APS 210, RBNZeligible liquids, CLF eligible securities less
RBA open repos funding end of day ESA balances with the RBA. The Committed Liquidity Facility (CLF) and Term Funding Facility(TFF) are made available to Australian Authorised Deposit-taking Institutions by the RBA that, subject to qualifying
conditions, can be accessed to meet LCRrequirements under APS210 – Liquidity. Other flows include credit and liquidity facilities, collateral outflows and inflows from customers. 2 Other flows includes net cash outflow overlay. Effective 1 January 2021,
the Group is required to increase the value of its net cash outflows by 10% for the purpose of calculating LCR, in response to action taken by APRA for breaches of Westpac’s liquidity requirements predominantly relating to Westpac New Zealand
Limited. This reduces the average LCR for the quarter ended 31 March 2021 by 12 percentage points. 3 Other includes derivatives and other assets. 4 Other loans includes off balance sheet exposures and residential mortgages >35%risk weight.
Capital, Funding and Liquidity
88
119
85
118
10
52
13
37
22
35
11
10
120
182
134
165
Net cash
outflows
Liquid assetsNet cash
outflows
Liquid assets
Net cash outflows (NCOs)
Other flows
2
Wholesalefunding
Customer deposits
Liquid assets
Term Funding Facility (undrawn)
Committed Liquidity Facility
High Quality Liquid Assets
Liquidity coverage ratio
1
(quarterly average, %)
Sep 2020: LCR 151%
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
151
124
(1)
(12)
3
(3)
(14)
Sep-20HQLACLF and TFFCustomer
Deposits
Wholesale
funding
Other flowsMar-21
Lower from reduction in CLF
and net cash outflow overlay
2
2
Mar 2021: LCR 124%
Net stable funding ratio (NSFR) ($bn)
Available Stable FundingRequired Stable Funding
625.2
510.3
Capital
Retail &
SME
deposits
Corp. & Insto
deposits
Wholesale funding
and other liabilities
Residential mortgages
≤35% risk weight
Other loans
4
Liquids and other
3
Net stable funding ratio (NSFR) (%)
NSFR at 31 March 2021: 123%
122
123
1.4
1.1
(0.5)
(1.7)
(2.1)
2.7
Sep-20
Capital
Retail & SME
Deposits
Corporate &
Institutional Deposits
Wholesale funding
and other
Residential Mortgages
≤35% Risk Weight
Other loans, liquids &
other
Mar-21
Bars do not add due to rounding

Balance sheet funding.
83
Funding composition (%)
Shift in balance sheet: higher customer deposits, lower offshore wholesale funding
1 Includes long term wholesale funding with a residual maturity less than or equal to 1 year. 2 Equity excludes FX translation, Available-for-Sale securities and Cash Flow Hedging Reserves. 3 Short term funding includes scroll. Scroll represents
wholesale funding with an original maturity greater than 12 months that now has a residual maturity less than 12 months. Longterm includes securitisation.
Capital, Funding and Liquidity
Bars may not add to 100 due to rounding
By residual maturity
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
63
66
8
9
1
1
12
9
5
6
7
5
5
5
Sep-19Mar-21
Wholesale onshore <1yr
1
stable
Wholesale offshore <1yr
1
down $17bn
W’saleonshore >1yr up $14bn,
inc. TFF drawdowns $22bn
Wholesale offshore >1yr
down $29bn
Securitisation down $1.5bn
Equity
2
up $6bn
Customer deposits up $26bn
Significant balance sheet
changes in the last 18 months
Customer deposits to net loans ratio (%)
525
544
555
550
715
720
693
690
73.4
75.6
80.1
79.8
Sep-19Mar-20Sep-20Mar-21
Customer depositsNet customer loansDeposits to net loans ratio
101
148
249
105
150
255
88
142
230
85
131
216
Short termLong termTotal wholesale
Sep-19
Mar-20
Sep-20
Mar-21
Wholesale funding by residual maturity
3
($bn)
Long term includes TFF
drawn down
Sep-20 $18bn
Mar-21 $22bn

Long term wholesale funding.
Capital, Funding and Liquidity
84
Term Funding Facility
1
(TFF) ($bn)
1 Westpac’s Additional Allowance at 31 March 2021 was zero. 2 Based on residual maturity and FX spot currency translation. Includes all debt issuance with contractual maturity greater than 13 months excluding US Commercial Paper and Yankee
Certificates of Deposit. Contractual maturity date for hybrids and callable subordinated instruments is the first scheduled conversion date or call date for the purposes of this disclosure. Perpetual sub debt has been included in >FY26 maturity bucket.
Maturities exclude securitisation amortisation. 3 Based on current capital regulation. Does not include balance sheet growth or management buffer. 4 Represents AUD equivalent notional amount using spot FX translation at date of issue for issuance
and spot FX translation at 31 March 2021 for maturities. Securities in callable format profiled to first call date, excludingthe Perpetual Floating Rate Notes issued 30 September 1986. Securities in bullet format profiled to maturity date.
1818
12
4
TFF AllowanceDrawn down
Supplementary
allowance
(Drawdown
Oct-20 to Jun-21)
Initial
allowance
(Drawdown
Mar-20 to
Sep-20)
30
Funding in 1H21 limited to meeting TLAC and capital needs.
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
22
37
32
34
31
12
13
26
37
29
12
9
25
FY17FY18FY19FY201H212H21FY22FY23FY24FY25FY26
>FY26
Funding for Lending
Programme (NZ)
Term Funding Facility
(Aus)
Subordinated debt
Senior/Securitisation
Hybrid
Covered bond
Term debt issuance and maturity profile
2
($bn)
At 31 March 2021
Westpac Total Regulatory Capital
31 March 2021 APRA-
basis
1 Jan 2024
APRA-basis
CET1Additional Tier 1Tier 2
5.0%
(approx. $21bn
3
)
12.3% ($53bn)
2.2% ($9bn)
3.9% ($17bn)
Westpac Tier 2 issuance and calls/maturities
4
(notional amount, A$m)
4.2
2.2
4.7
0.4
1.2
1.2
1.4
2.0
1.7
2.0
0.0
1.6
0.0
5.5
0.0
1.0
2.0
3.0
4.0
5.0
6.0
FY19FY201H212H21FY22FY23FY24FY25FY26FY27FY28FY29FY30>FY30
Issuance Maturities
FY21 Tier 2 issuance
expected to be approx.
$5-7billion (including buffer)
IssuanceMaturities

Divisional Results

Divisional
1
contributions.
1 Refer to division descriptions, page 114. NZ in A$.
86
Divisional results
1H21 ($m)ConsumerBusinessWIBNZ
Specialist
Businesses
Group
BusinessesGroup
Operating income4,4572,3561,0461,16393784010,799
Expenses(2,270)(1,170)(698)(500)(740)(603)(5,981)
Core earnings2,1871,1863486631972374,818
Impairment (charges)/benefits80129(8)9280(1)372
Tax & non-controlling interests(675)(395)(110)(210)(143)(120)(1,653)
Cash earnings1,5929202305451341163,537
2H20 ($m)ConsumerBusinessWIBNZ
Specialist
Businesses
Group
BusinessesGroup
Operating income4,5602,2681,1321,04458170010,285
Expenses(2,141)(1,230)(697)(482)(1,128)(862)(6,540)
Core earnings2,4191,038435562(547)(162)3,745
Impairment (charges)/benefits(599)(674)(111)(102)(95)641(940)
Tax & non-controlling interests(546)(108)(139)(129)43(311)(1,190)
Cash earnings1,274256185331(599)1681,615
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack

1 Includes all points of presence including Advisory and Community banking centres. 2 Refer page 115 for metric definitions and details of provider. Data for 1H21 at February 2021.
1
1,472
1,274
19 1,293
679
1,668
1,592
(97)
(54)
(154)
(76)
1H20
2H20
Add back notable items
2H20 ex-notable items
Net interest income
Non-interest income
Operating expenses
Impairment charges
Tax and NCI
1H21 ex-notable items
Notable items
1H21
1H202H201H21
Change
on 2H20
Revenue ($m)
4,5604,5604,457
(2%)
Net interest margin (%)
2.332.412.39
(2bps)
Expense to income(%)
44.647.050.9
398bps
Customer deposit to loan ratio (%)
52.6856.2656.47
21bps
Stressed exposures to TCE (%)
0.831.381.02
(36bps)
Mortgage 90+ day delinquencies (%)
0.941.601.18
(42bps)
Consumer 1H21 performance.
87
Cash earnings ($m)
Consumer
Up $375m or 29%
Up $318m or 25%
1H202H201H21
Change
on 2H20
Total customers (#m)
9.7 9.79.7-
Active digital banking customers (#m)
4.494.534.581%
Branches (#)
1
931929889
(40)
ATMs (#)
2,1331,3991,352
(47)
Main Financial Institution
2
(%)
16.315.715.6
(0.1ppt)
NIM 2bps lower from asset spread
compression partly offset by lower funding
costs and higher deposit spreads
Mostly increased spending on risk and
compliance and higher operational costs
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
Key financial metrics
Key operating metrics
Improved economic outlook
and improved asset quality

25
478
256
100356
20
803
895
920
(44)
(6)
(234)
1H202H20
Add back notable items
2H20 ex-notable items
Net interest income
Non-interest income
Operating expenses
Impairment charges
Tax and NCI
1H21 ex-notable items
Notable items
1H21
Business 1H21 performance.
88
Cash earnings ($m)
Business
Up $539m or 151%
Up $664m or 259%
Key financial metrics
1H202H201H21
Change
on 2H20
Revenue ($m)
2,4552,2682,3564%
Net interest margin (%)
3.052.933.1724bps
Expense to income(%)
43.554.249.7Large
Customer deposit to loan ratio (%)
98.1108.0114.6Large
Stressed exposures to TCE (%)
3.074.704.60(10bps)
Key operating metrics
1H202H201H21
Change
on 2H20
Total customers
1
(‘000’s)
1,0211,0531,0631%
Customer satisfaction
2
(rank)
#1#1=#1
–
Customer satisfaction – SME
2
(rank)
=#1#1=#2
Down 1
Digital sales
3
(%)232827(1ppt)
1 Excludes Private Wealth customers. 2 Refer page 115 for details of metric definition and provider. Data for 1H21 at Feb 21.3 Share of sales made digitally for eligible products.
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
AIEA down 4% partly offset
by 7bps increase in NIM
Higher merchant fees
Lower collectively assessed provisions
from improved economic outlook and
improved asset quality

147
185
36
103
18256
230
(42)
(44)
(26)
1H202H20
Net interest income
Non-interest income
Operating expenses
Impairment charges
Tax and NCI
1H21 ex-notable items
Notable items
1H21
Key financial metrics
1H202H201H21
Change
on 2H20
Revenue ($m)
1,1611,1321,046(8%)
Net interest margin (%)
1.461.231.274bps
Expense to income ratio (%)
53.361.666.7Large
Net loans
78.666.262.4(6%)
Customer deposits
110.0102.991.0(12%)
Customer deposit to loan ratio (%)
139.9155.4145.8Large
Stressed exposures to TCE (%)
1.091.030.56(47bps)
Key operating metrics
1H202H201H21
Change
on 2H20
Customer revenue
1
/ total revenue (%)94.488.391.5Large
Trading revenue / total revenue (%)15.013.17.2Large
Revenue per FTE ($’000)784717668(7%)
WIB 1H21 performance.
89
Cash earnings ($m)
1 WIB customer revenue is lending revenue, deposit revenue, sales and fee income. Excludes trading and derivative valuation adjustments.
Westpac Institutional Bank
Up $71m or 38%
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
Up $45m or 24%
AIEA down 11%;
margins up 4bps
Lower Markets
income
Lower restructuring costs
and reduced professional
services expenses
Lower new impaired assets
and lower CAPs from
improved economic outlook

Key financial metrics
1H202H201H21
Change
on 2H20
Revenue (NZ$m)
1,1621,1201,245
11%
Net interest margin (%)
2.061.892.06
17bps
Expense to income (%)46.646.343.1
(320bps)
Customer deposit to loan ratio (%)
79.480.781.8
111bps
Stressed exposures to TCE (%)
1.64 1.59 1.56(3bps)
110
17
295
354
4358
208
593
583
(11)
(89)
(10)
1H202H20
Add back notable items
2H20 ex-notable items
Net interest income
Non-interest income
Operating expenses
Impairment charges
Tax and NCI
1H21 ex-notables
Notable items
1H21
New Zealand 1H21 performance
1
.
90
Cash earnings (NZ$m)
1 In NZ$ unless otherwise noted. 2 Refer page 115 for details of metric definition and provider.
New Zealand
Key operating metrics
1H202H201H21
Change
on 2H20
Customers (#m)1.351.341.33(1%)
Branches (#) 151143134(9)
Consumer NPS
2
+21+14+16Up 2
Business NPS
2
+1+7(1)Down 8
AgriNPS
2
+21+34+34-
Funds (NZ$bn) (spot)10.912.211.9(2%)
Service quality – complaints (000’s)9.69.59.3
(2%)
Up $235m or 66%
Up $229m or 65%
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
3% increase in AIEA and 17bps
increase in NIM due to repricing
and favourable deposit mix
Gain on sale of Wealth Advisory
business and higher cards income,
partly offset by lower insurance income
Improved economic outlook
and asset quality
Primarily higher spend on technology
and risk, regulatory and compliance
programs

69.1
71.0
1.0
2.1
74.1
Mar-20Sep-20ConsumerBusinessMar-21
87.0
88.0
3.0
90.6(0.4)
Mar-20Sep-20ConsumerBusinessMar-21
New Zealand balance sheet.
91
Net loans (NZ$bn)Deposits (NZ$bn)
Loans (NZ$bn) and % of total Customer deposits (NZ$bn) and % of total
51
53
55
58
2
2
1
1
31
32
32
32
84
87
88
91
Sep-19Mar-20Sep-20Mar-21
Business
Personal
Mortgage
64%
1%
35%
Up 3%Up 4%
Up 3%Up 1%Up 3%
New Zealand
34
33
31
29
15
16
18
21
15
20
22
24
64
69
71
74
Sep-19Mar-20Sep-20Mar-21
Transaction
Savings
Term deposits
39%
28%
33%
Up 4%Up 3%Up 7%
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack

New Zealand stressed exposures.
92
Business stressed exposures as a % of business TCE
Agribusiness portfolio
Milk price (NZ$)
Dairy portfolio summary
•Overall portfolio health remains sound with risk
profiles improving as a result of the higher milk
prices paid over the last two seasons. Focus
remains on supporting existing dairy customers
with proven long-term viability
•Global dairy prices have increased on the back of
rebounding Chinese and South-East Asian
demand. Fonterra has revised its 2020/21 milk
price forecast range to $7.30/kg - $7.90/kg, while
Westpac has lifted its forecast to $7.90/kg
•Uncertainty around environmental regulations,
rising compliance costs, Fonterra’s financial
performance and labour shortages are ongoing
risks to the dairy sector outlook
1 Includes impaired exposures.
Mar-20Sep-20Mar-21
TCE (NZ$bn)9.610.010.1
Agriculture as a % of
total TCE
7.67.97.7
% of portfoliograded
as ‘stressed’
1
9.88.28.0
% of portfolio in
impaired
0.480.480.29
1.5
0.9
0.8
0.5
0.30.3
0.1
0.3
0.3
0.2
0.2
0.1
0.2
0.0
0.1
0.0
0.1
0.10.1
0.2
3.2
2.3
2.4
5.0
4.0
3.0
2.92.5
2.2
2.4
4.9
3.3
3.4
5.5
4.4
3.3
3.1
2.9
2.6
2.8
Sep-13Sep-14Sep-15Sep-16Sep-17Sep-18Sep-19Mar-20Sep-20Mar-21
Watchlist & substandard90+ day past due and not impairedImpaired
19
9
47
4
4
17
Property
Manufacturing
Agriculture, forestry
& fishing
Wholesale trade
Construction
Other
6.12
6.69
6.35
7.14
7.90
$0
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
2016/172017/182018/192019/202020/21
Kg Ms
Westpac
Economics
forecast
New Zealand
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack

1.14
1.91
0.0
1.0
2.0
3.0
Sep-13
Mar-14
Sep-14
Mar-15
Sep-15
Mar-16
Sep-16
Mar-17
Sep-17
Mar-18
Sep-18
Mar-19
Sep-19
Mar-20
Sep-20
Mar-21
90+ day past due (ex-hardship)
90+ day past due
0.16
0.33
0.0
0.1
0.2
0.3
0.4
0.5
0.6
Sep-13
Mar-14
Sep-14
Mar-15
Sep-15
Mar-16
Sep-16
Mar-17
Sep-17
Mar-18
Sep-18
Mar-19
Sep-19
Mar-20
Sep-20
Mar-21
90+ day past due (ex-hardship)
90+ day past due
New Zealand consumer portfolio.
93
Mortgage 90+ day delinquencies
1
(%)Unsecured consumer 90+ day delinquencies
1
(%)
Mortgage portfolio LVR
2
(%) of portfolioMortgage loss rates each half (%)
1 In May 2019 we made changes to the reporting of customers in hardship to align to the method used by APRA. 2 LVR based on current loan property value at latest credit event.
New Zealand
Introduction of changes to
the reporting of hardship
0.00
0.00
0.05
0.10
0.15
0.20
0.25
1H122H121H132H131H142H141H152H151H162H161H172H171H182H181H192H191H202H201H21
Introduction of changes to
the reporting of hardship
47%
23%23%
5%
2%
0<=6060<=7070<=8080<=9090+
93% of mortgage portfolio less than 80% LVR
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack

93
(599)
820221
6
44
71
175
431
134
(86)
(297)
1H202H20
Add back notable items
2H20 ex-notable items
Net interest income
Non-interest income
Operating expenses
Impairment charges
Tax and NCI
1H21 ex-notable items
Notable items
1H21
Key financial metrics
1H202H201H21
Change
on 2H20
Average funds ($bn)
203.8
191.1
205.6
8%
Spot funds ($bn)
179.1
193.0
211.7
10%
Platforms deposits ($bn)
5.2
4.9
4.3
(12%)
Platform FUA market share
(inc.Corp Super)
1
(%)
18.418.418.50.1ppt
Retail Life Insurance in-force
premiums ($m)
949
942
938
-
Life Insurance claims ratio
2
(%)
54
48
63
Large
Auto Finance loans ($bn)
12.5
11.5
11.1
(3%)
Held for sale businesses
Key financial metrics
1H202H201H21
Change
on 2H20
Vendor Finance loans ($bn)
0.50.40.5
25%
Westpac Pacific loans ($bn)
1.81.61.4
(13%)
General Insurance GWP
3
($m)
273282289
2%
General Insurance claims ratio (%)
107
58
82
Large
LMI
4
GWP($m)
89
91
154
69%
LMI claims (loss) ratio (%)
15
67
3
Large
Specialist Businesses 1H21 performance.
94
Cash earnings ($m)
1 Plan for Life, December 2020. 2 Loss ratio is claims net of reinsurance over the total earned premium plus exchange commission. 3 Gross written premium. 4 Lenders mortgage insurance.
Specialist Businesses
Up $210m or 95%
Up $733m
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
NIM up 23bps mostly from the
roll-off of COVID-19 interest rate
discounts as part of support
Higher Life Insurance,
LMI and funds income
Improved economic outlook
and improved asset quality
Decrease in COVID-19 support costs,
timing of project spend
and seasonality of spend

12,402
17,041
23,387
24,700
31,240
49,593
Sep-18Mar-19Sep-19Mar-20Sep-20Mar-21
BT Wrap migration
23,462
32,444
44,314
54,781
67,109
115,369
Sep-18Mar-19Sep-19Mar-20Sep-20Mar-21
BT Wrap migration
Panorama.
95
Supporting advisers and investors.
One core
operating system
SMSFs
Digital user
experience
Bank
connectivity
/security
One system for
all investors &
advisers
BT Panorama’s
unique offering
Active advisers on Panorama
3
(#)SMSF funds on Panorama
3
(#)
FUA on Panorama
2
($m)Investors on Panorama
2
(#)
1,775
2,291
2,494
2,827
3,017
3,535
Sep-18Mar-19Sep-19Mar-20Sep-20Mar-21
6,215
7,204
9,289
10,981
12,310
14,118
Sep-18Mar-19Sep-19Mar-20Sep-20Mar-21
Up 111%
Up 29%
Up 101%
Up 25%
1 Investment Trends Platform and Competitive Analysis and Benchmarking Report, December 2020. 2 Migration from BT Wrap to Panorama is underway, expected to complete by 30 June 2021. 3 Advisers and SMSF funds that have been migrated
from BT Wrap are not shown separately.
•Best Mobile Platform
1
•Best Client Portal
1
•Best Online Business
Management
1
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
Panorama UX
supports both
advised and direct
to consumer
investment and
superannuation
propositions
Specialist Businesses

Economics

Australian and New Zealand economic forecasts.
Source: Westpac Economics.
1 Year average growth rates. 2 Through the year growth rates.
97
Economics
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
Key economic indicators (%)
at April 2021
201920202021F2022F
WorldGDP
1
2.8-3.35.94.5
AustraliaGDP
2
2.2-1.14.53.0
Unemployment – end period
5.26.85.04.7
CPI headline – year end
1.80.93.12.1
Interest rates –cash rate
0.750.100.100.10
New ZealandGDP
2
1.7-0.92.14.9
Unemployment – end period
4.14.94.94.2
Consumer prices
1.91.42.41.3
Interest rates –official cash rate
1.000.250.250.25
Key economic indicators (%)
at April 2021
201920202021F2022F
AustraliaCredit growth
Total – year end
2.41.84.65.6
Housing – year end
3.03.56.57.2
Business – year end
2.40.92.53.6
New ZealandCredit growth
Total – year end
5.73.35.75.7
Housing – year end
6.98.28.66.1
Business – year end
4.6-2.61.35.3
Private sector credit growth (% ann)
-10
-5
0
5
10
15
20
25
Mar-07Mar-09Mar-11Mar-13Mar-15Mar-17Mar-19Mar-21
Housing Australia
Total credit Australia
Business Australia
Total credit New Zealand
Westpac
f’casts
% ann
Sources: RBA, Westpac Economics
GDP growth (year average)
-6.0
-4.0
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
AustraliaNew ZealandUnited StatesChina
2018201920202021f2022f

TAS
540k
The Australian economy.
Australian GDP and employment composition
Population 25.7 million.
Sources: ABS, Westpac Economics
1 Real, financial years, experimental estimates.
Economics
10
6
8
8
9
2
6
9
6
6
10
19
Mining
Manufacturing
Construction
Transport, Utilities
Wholesale, Retail
Agriculture
Household services
Health
Education
Public administration
Finance
Business services
2
8
9
6
14
3
13
12
8
6
4
15
Mining
Manufacturing
Construction
Transport, Utilities
Wholesale, Retail
Agriculture
Household services
Health, Social Assistance
Education
Public Administration
Finance
Business services
Output 2020 - sector contribution to GDP
1
(%)
Australian employment by sector 2020 (%)
33
24
19
14
6
2
32
26
20
10
7
2
32
26
20
11
7
2
29
14
20
35
4
1
NSWVictoriaQueenslandWASATasmania
GSPPopulationEmploymentExports
Relative size of States (Share of Australia, 2019/20, %)
98Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
Australian population
WA
2.7m
SA
1.8m
QLD
5.2m
NT
245k
NSW
8.2m
VIC
6.7m
ACT
430k

-50
-40
-30
-20
-10
0
10
-50
-40
-30
-20
-10
0
10
Feb-20Apr-20Jun-20Aug-20Oct-20Dec-20Feb-21Apr-21
Index
The Australian economy.
Australia’s GDP profile (index)
Economics
Sources: ABS, Westpac Economics.
Recovery well under way and stronger than expected.
88
92
96
100
104
108
112
88
92
96
100
104
108
112
Dec-15Dec-16Dec-17Dec-18Dec-19Dec-20Dec-21Dec-22
Index
Index
Pre covid forecastCurrent forecast
Dec 2019 = 100
Westpac
f’casts
99Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
GDP growth year end contributions (ppts)
Sources: ABS, Westpac Economics.
-3
-2
-1
0
1
2
3
4
5
-3
-2
-1
0
1
2
3
4
5
ConsumerHousingBusiness
Investment
PublicNet exportsGDP
ppts ann
ppts ann
201920202021f2022f
Consumer sentiment (index)
Sources: Westpac MI, Westpac Economics
70
80
90
100
110
120
130
70
80
90
100
110
120
130
Apr-07Apr-09Apr-11Apr-13Apr-15Apr-17Apr-19Apr-21
Index
Monthly
Source: Google, Westpac Economics
Australian mobility measures (index)
Chart shows movement trends over time in Australia, using
Google location data for retail locations.
28-day rolling avg,
indexed, daily,Jan 3-Feb 6 avg = 0.
Consumer sentiment at
11 year high in April
National lockdowns in
March / April 2020

The Australian economy.
Economics
Momentum in consumer and housing.
100Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
Sources: ABS, Westpac Economics.
Consumer spending: broad categories
40
50
60
70
80
90
100
110
120
40
50
60
70
80
90
100
110
120
Dec-05Dec-08Dec-11Dec-14Dec-17Dec-20
Index
Index
Essential services
Durables
Discretionary services
Basic food
Fuel
*Index based to Dec 2019 qtr= 100
Latest vs pre-COVID:
–27%
–10.7%
+2.4%
+6.2%
+11.8%
Sources: ABS, Westpac Economics.
Household saving ratio (% of income)
-4
0
4
8
12
16
20
24
28
-4
0
4
8
12
16
20
24
28
Dec-88Dec-93Dec-98Dec-03Dec-08Dec-13Dec-18
% Income
% Income
Sources: CoreLogic, Westpac Economics
70
90
110
130
150
170
190
210
70
90
110
130
150
170
190
210
Mar-09Mar-11Mar-13Mar-15Mar-17Mar-19Mar-21Mar-23
Index
Index
Sydney
Melbourne
Brisbane
Perth
Westpacf’casts
to Dec-22
2017 peaks
Dec-09 = 100
Dwelling prices (all dwellings, index)
Sources: CoreLogic, Westpac Economics.
Residential property: listings and sales (‘000s)
15
17
19
21
23
25
27
29
31
33
15
17
19
21
23
25
27
29
31
Mar-08Mar-10Mar-12Mar-14Mar-16Mar-18Mar-20
‘000s
‘000s
new listings (lhs)sales (lhs)

The Australian economy.
Sources: RBA, Westpac Economics
101
Positive signs but still a long way from potential.
Economics
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
Wages (%)
1
2
3
4
5
1
2
3
4
5
Dec-96Dec-00Dec-04Dec-08Dec-12Dec-16Dec-20
%
%
RBA’s target:
> 3%
Westpac f’casts
to Dec-23
Unemployment rate (%)
Sources: NAB survey, ABS, WestpacEconomics.
Aust. population growth: medium term prospects (% ann)
Sources: ABS, AusGovt Centre for Population, Westpac Economics.
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
19801990200020102020
Ann %
Ann %
Population
Contribution from net migration
Gov’t forecasts
(to Jun-24)
Sources: NAB survey, ABS, Westpac Economics
Business confidence and investment
2
3
4
5
6
7
8
9
2
3
4
5
6
7
8
9
Mar-97Mar-01Mar-05Mar-09Mar-13Mar-17Mar-21
%
%
RBA’s target: < 4%
Westpac f’casts
to Dec-23
-30
-20
-10
0
10
20
30
-30
-20
-10
0
10
20
30
Mar-91Mar-00Mar-09Mar-18
% yr end
Net Bal.
Business investment real, non-mining, lhs
Business confidence, adv 2qtrs, rhs

The Australian economy.
Economics
Commodity prices expected to remain higher for longer.
102Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
Australian exports to China
1
($bn)
Sources: IMF, Westpac Economics
-5
-4
-3
-2
-1
0
1
2
3
4
5
6
7
-5
-4
-3
-2
-1
0
1
2
3
4
5
6
7
1995199820012004200720102013201620192022
%yr
%yr
ChinaOtherAdvancedTotal
Westpac
f’casts
World growth post COVID-19 (% yr)
Sources: Westpac Economics, Bloomberg, ABS
20
40
60
80
100
120
140
160
20
40
60
80
100
120
140
160
Mar-13Mar-15Mar-17Mar-19Mar-21
2012=100
2012=100
Iron oreMet coal
Thermal coalBrent
Westpac
f’caststo
Dec-22
Australian commodity prices (index)
Source: DFAT, ABS, Westpac Economics
Australian export destinations
1
($bn)
Sources: DFAT, Westpac Economics
Australian export composition
1
($bn)
Source: ABS, DFAT, Westpac Economics
1 All figures show $bn exports in 2020, note that figures may not sum due to rounding and other small differences in source data.
Iron ore,
116
Coal, 43
LNG, 36
Other
resources, 75
Services,
92
Rural, 43
Mfg/Other,
50
China,
145
Japan,
44
Korea,
23
Asia, rest
of, 65
US, 19
Europe,
12
NZ, 10Other, 22
Iron ore,
93
Coal, 16
LNG, 10
Other
resources,
9
Services,
16
Rural, 13
Mfg/Other,
3

Australian housing market.
Australian dwelling prices (index)
Housing market in strong, broad-based upswing led by owner-occupiers.
Sources: CoreLogic, Westpac Economics.
Economics
90
110
130
150
170
190
210
230
90
110
130
150
170
190
210
230
Mar-04Jan-07Nov-09Sep-12Jul-15May-18Mar-21
Index
Rest of Australia
Other capitals
Sydney-Melbourne
Sources: CoreLogic, Westpac Economics.
% change over period
Capital cityPop’n
Last 3 mths
(to Mar-21)
Last 12 mths
(Mar-21)
Last 5 years
(to Mar-21)
Sydney4.8mUp 6.7%
Up 5.4%Up 3.7%
Melbourne4.5mUp 4.9%
Up 0.7%Up 3.8%
Brisbane2.3mUp 4.8%
Up 6.8%Up 2.4%
Perth1.9mUp 5.0%
Up 6.0%Down 2.0%
All dwellings (index, Jan 2004 = 100)
103
Westpac Economics dwelling price forecasts (%)
Sources: CoreLogic, Westpac Economics.
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
Sources: ABS, Westpac Economics.
Housing finance approvals by segment ($bn)
0
5
10
15
20
25
30
35
40
45
0
5
10
15
20
25
30
35
40
45
Feb-01Feb-05Feb-09Feb-13Feb-17Feb-21
$bn
$bn
'Upgraders'
Investor
First home buyers
Dwelling prices
0
5
10
15
20
0
5
10
15
20
SydneyMelbourneBrisbanePerthAdelaideAustralia
%
%
2021 forecast2021 year to date

Australian housing market.
Rental vacancy rates (%)
Affordability issues to re-emerge in Sydney and Melbourne.
Economics
0
1
2
3
4
5
6
7
8
Mar-88Sep-93Mar-99Sep-04Mar-10Sep-15Mar-21
%
SydneyBrisbaneMelbournePerth
National
average since
1980
Rental vacancy rates (%, quarterly, annual average)
Sources: ABS, Westpac Economics.
104Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
Mortgage interest rates (%)
Sources: RBA, Westpac Economics.
* Standard, owneroccupier, including discount
0
2
4
6
8
10
0
2
4
6
8
10
Mar-07Mar-09Mar-11Mar-13Mar-15Mar-17Mar-19Mar-21
%%
Variable*3 year fixed
10
15
20
25
30
35
10
15
20
25
30
35
Dec-99Dec-02Dec-05Dec-08Dec-11Dec-14Dec-17Dec-20
%
%
NSWVicAus
Share of average income required to raise a
deposit over 5yrs and pay mortgage over first
5yrs for purchase of median-priced dwelling
Westpac
f’caststo
Dec-22
2017 peaks
Sources: CoreLogic, Westpac Economics
Affordability: Australia (%)
Consumer Sentiment: ‘time to buy a dwelling’ (index)
Sources: Melbourne Institute, Westpac Economics
60
70
80
90
100
110
120
130
140
150
160
60
70
80
90
100
110
120
130
140
150
160
Apr-01Apr-05Apr-09Apr-13Apr-17Apr-21
Index
Index
*quarterly observationsprior to 2007

6
6
3
9
12
3
35
5
10
11
Primary industries
Construction
Electricity, gas, and water
Manufacturing
Wholesale, retail and accommodation
Transport
Financial and professional services
Public administration
Social services (incl. health and education)
Other
The New Zealand economy.
105
EconomyRegional GDP
Population 5.1 million.
Sources: Stats NZ, Westpac Economics.
Nationwide GDP and employment figures are for the year to Dec 2020, regional figure are for the year to March 2020.
Economics
NZ employment by sector 2020 (%)
Output 2020 - sector shares of GDP (%)
Total nominal GDP 2020:$322 bn
Charts may not add to 100 due to rounding.
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
6
10
1
9
18
4
19
6
19
7
Primary industries
Construction
Electricity, gas, and water
Manufacturing
Wholesale, retail and accommodation
Transport
Financial and professional services
Public administration
Social services (incl. health and education)
Other
Total nominal GDP 2019:$303bn
Northland, $8bn
4%of population
Auckland, $122bn
35% of population
Waikato, $28bn
10% of population
Taranaki, Whanganui/Manawatu, $21bn
7% of population
Wellington, $40bn
11% of population
Bay of Plenty, $19bn
6% of population
Southland, $7bn
2% of population
Otago, $14bn
5% of population
Canterbury, $40bn
13% of population
West Coast, $2bn
1% of population
Tasman/Nelson, $6bn
2% of population
Marlborough, $3bn
1% of population
Gisborne/Hawke’s Bay, $11bn
4% of population

The New Zealand economy.
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack106
New Zealand GDP ($bn)
Unemployment rate (%)New Zealand private sector credit growth (% ann)
Sources: Stats NZ, Westpac Economics.
Economics
EconomicindicatorsCurrent
Dec 2021
forecast
Cashrate
0.25%
(14 Apr 2021)
0.25%
Unemployment
4.9%
(Dec qtr2020)
4.9%
GDP
(%yrend)
-0.9%
(Dec qtr2020)
2.1%
Private sectorcredit
3.6%
(Feb 2021)
5.7%
Sources: Stats NZ, Westpac Economics.
Business activity surveys (index)
Sources: ANZ, Westpac Economics
2
3
4
5
6
7
8
2
3
4
5
6
7
8
200620092012201520182021
Pre-Covid forecastCurrent forecast
Westpac
forecasts
%%
25
30
35
40
45
50
55
60
65
70
25
30
35
40
45
50
55
60
65
70
20172018201920202021
PSI - Services
PMI - Manufacturing
IndexIndex
-10
-5
0
5
10
15
20
25
Aug-00Aug-04Aug-08Aug-12Aug-16Aug-20
HousingTotal creditBusiness
% ann
Westpac
forecasts
50
55
60
65
70
75
50
55
60
65
70
75
201820202022
Pre-Covid
forecast
Current
forecast
$bn$bn
Westpac
forecasts
Sources: Westpac Economics
Recovery well advanced.

New Zealand housing market.
107
New Zealand dwelling prices (index, Jan 2007 = 1000)
Major policy shift.
Sources: REINZ, Westpac Economics.
Economics
Sources:REINZ, Stats NZ.
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
Changes to housing market policies
Dwelling prices % change over period
RegionPop’n
Last 3 mths
(to Mar-21)
Last 12 mths
(Mar-21)
Last 5 years
(to Mar-21)
Auckland1.7mUp 7.1%
Up 22.5%Up 39.2%
Wellington0.5mUp 9.5%
Up 31.2%Up 104.7%
Canterbury0.6mUp 7.7%
Up 20.3%Up 30.1%
Nationwide5.1mUp 8.5%
Up 24.0%Up 58.6%
•The Government has announced a suite of new housing market policies affecting
both demand and supply
•The most significant changes relate to the tax treatment of mortgage interest costs
•This will erode the financial incentives for property investors and tilt housing market
conditions more in favour of owner occupiers
•Westpac expects these policy changes will prompt a flattening off of house prices
over the remainder of 2021. That follows a period of very strong growth since the
economy exited lockdown.
The major changes introduced by the Government include:
•Removing the ability to offset mortgage costs on residential investment
properties against the income earned on those properties
−This change will take effect from 1 October 2021 for properties purchased
after 27 March 2021 and will be gradually phased in over the next four
years for existing property owners
−The Government is also looking at exceptions for newbuilds
•The holding period for taxing capital gains on residential investment properties
(otherwise known as the ‘Bright-line test’) has been extended from 5 to 10 years
−The holding period remains at 5 years for investors who buy new builds
•A $3.8bn Housing Acceleration Fund is being established to assist with the
development of infrastructure (such as pipes and roads) to support new housing
•Additional financial assistance for first home buyers with changes in First Home
Loans and Grants settings, including increases in income caps, as well as
changes to regional price caps
900
1300
1700
2100
2500
900
1300
1700
2100
2500
20072009201120132015201720192021
Auckland
Canterbury
Wellington
Other regions
Index
Index

Appendix
and Disclaimer

Appendix 1:
109
Cash earnings adjustments.
Appendix
Appendix
Cash earnings
adjustment ($m)
1H202H201H21
Description
Reported net profit1,1901,1003,443
Net profit attributable to owners of Westpac Banking Corporation
Fair value (gain)/loss on
economic hedges
(219)58148
Fair value on economic hedges (which do not qualify for hedge accounting under AAS) comprise:
•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
at this stage no further adjustments will be recognised; and
•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
Ineffective hedges(24)(37)46
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
PendalGroup
63(32)-
Consistent with prior periods, this item has been treated as a cash earnings adjustment given its size and that it does
not reflect ongoing operations. The adjustment relates to the mark-to-market of the shares. Westpac disposed of its
holdings in Full Year 2020. As a result, no further adjustments will be recognised
Treasury shares(17)3-
Under AAS, Westpac shares held by the Group in the managed funds and life businesses are
deemed to be Treasury shares and the results of holding these shares cannot be recognised in the reported
results. In deriving cash earnings, these results are included to ensure there is no asymmetrical impact on the
Group’s profits because the Treasury shares support policyholder liabilities and equity derivative transactions
which are revalued in determining income. At 31 March 2021, there are no Treasury shares
Cash earnings9931,6153,537
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack

Appendix 2:
New business models
110
New technology capabilitiesData, AI and analytics
1 Logos are of the respective companies.
Appendix
A natural language AI system for data
analysis targeting relatively simple
business queries that comprise 70% of
an analyst’s work in a large organisation
Open Banking API platform that provides
connectivity to over 100 financial sources
across Australia and NZ
Comprehensive cloud-based
human resources and
employee benefits platform to
streamline HR processes
Full stack payments platform
A trust framework and secure platform
that allows users to exchange data
safely and securely
Enterprise cyber security company
that protects businesses from
malicious bot attacks
Enabling software development
teams to scale processes and
improve code quality
Digitised debt collection, leveraging
modern communications,
automation and machine learning
Uses data to shed light on
high volume crimes, improving
prevention and detection
A fund of funds for cryptocurrency
and blockchain technology
Peer-to-peer (P2P) online
lending platform connecting
borrowers and investors
Helps home sellers make
decisions about who they
choose to sell their property
Business loan marketplace
that matches SMEs to the
best lender based on their
characteristics and needs
A payment app for customers
when dining out or grabbing a
coffee on the go
A bitcoin wallet and platform
AI company that integrates neuroscience
into their platform creating capability that not
only manages complex problems but is able
to form intrinsic relationships with humans
Smart receipts that automatically
link purchase receipts to
customers’ bank accounts
AI-powered, context-as-a-service
platform, to deliver personalised
experiences to customers
B2B platform for physical retail stores
that provides insights through their AI
engine and in-store sensors
A consumer digital
lending platform
Pioneering a new asset class
called Tradeable Income
Based Securities (TIBS)
Creating real-game assets
for developers, using
blockchain technology
Conversational voice-based AI for digital
interviewing, powered by machine learning
Turning buildings into
community-centric dwellings
Westpac has invested $150m in fintech venture capital fund, Reinventure.
Reinventureenables Westpac to access insights and adjacent business opportunities, both in Australia and offshore.
The model also helps Westpac to source commercial partnerships that create value for customers
Reinventure– Investing in fintech businesses
1
.
A leading digital credit
platform in Indonesia
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
Empowering banks to connect
seamlessly with merchants
and their customers

Appendix3:
Industry recognition
111
Sustainability indexesInclusion and diversity recognition
Sustainability.
Appendix
Rated Prime status of “C” by ISS
ESG (formerlyISS-oekom)
Achieved highest ISS
QualityScore for Environment
and Socialdimensions
Member of the DJSI
Indexes since2002
Recognised as Silver Tier
Employer in 2020 in the
Australian Workplace
Equality Index Awards
Included in the 2019-20
Australian Network on
Disability Access and
Inclusion Index
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
Received “B” rating in the 2020
CDP for our response to
ClimateChange, announced
December2020
As of March 2021, Westpac
received an ESG Risk Rating
of 27.3 from Sustainalytics and
was assessed to be at Medium
risk of experiencing material
financial impacts from ESG
factors
1
Member of the FTSE4Good
Index Series, of which
Westpac has been a member
for over 19 years, announced
in June 2020
As of 2020, Westpac received
an MSCI ESG Rating of A
2
Recognised by the
Bloomberg Gender Equality
Index for the 5
th
consecutive
year
Accredited as Level 1
Activate as a Carer Friendly
Employer under the
CarersNSWCarers +
Employers Program in 2020
1 Copyright ©2021 Sustainalytics. All rights reserved. This section contains information developed by Sustainalytics (www.sustainalytics.com). Such information and data are proprietary of Sustainalytics and/or its third party suppliers (Third Party Data)
and are provided for informational purposes only. They do not constitute an endorsement of any product or project, nor an investment advice and are not warranted to be complete, timely, accurate or suitable for a particular purpose. Their use is subject
to conditions available at https://www.sustainalytics.com/legal-disclaimers. 2 The use by WBC of any MSCI ESG Research LLC or its affiliates (“MSCI”) data, and the use of MSCI logos, trademarks, service marks or index names herein, do not
constitute a sponsorship, endorsement, recommendation, or promotion of WBC by MSCI. MSCI services and data are the property of MSCI or its information providers, and are provided ‘as-is’ and without warranty. MSCI names and logos are
trademarks or service marks of MSCI.
Received the 2020
Advancement Award in
recognition of Westpac’s
innovative autism hiring
program, Tailored Talent
Ranked #1 in the ASX-50 and
#2 in the world for transparency
and effectiveness of our
standalone sustainability
Reporting, according to the
Global ESG Monitor Report

Appendix 3:
112
Key commitments and partnerships
Sustainability.
Appendix
Carbon MarketsInstitute
CorporateMember
UN Environment Program Finance
Initiative
Founding Member(1991)
Commitment to United Nations Global Compact
Signatory (2002), Global Compact Network Australia
Founding Member(2009)
Principles for ResponsibleInvestment
Signatory(2007)
SupplyNation
(for Indigenous owned businesses)
Founding member(2016)
Australian Business Roundtable for Disaster Resilience
& Safer Communities
Founding member(2012)
Global Investor Coalition
Statement on Climate Change
Signatory(2014)
WeConnectInternational
(for women owned businesses)(2014)
Financial Stability Board’s Task Force on
Climate-related Financial Disclosures
Align with andsupport
UN Sustainable DevelopmentGoals
CEO Statement of Commitment(2015)
Climate Action100+
Signatory(2017)
The Montreal CarbonPledge
Signatory(2014)
Paris ClimateAgreement
Supporter(2015)
United Nations Tobacco-Free Finance pledge
Founding signatory (2018)
Australian Sustainable Finance Initiative
Steering Committee Member
The EquatorPrinciples
FoundingAdopter,
First Australian Bank(2003)
Climate BondsInitiative
Partner
Carbon NeutralCertification
Since2012(previously NCOS)
Principles for ResponsibleBanking
Signatory2019
RE100, an initiative of The Climate Groupin
partnership withCDPMember(2019)
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack

Appendix 4:
113
Definitions – Credit quality.
Appendix
90 days past due
and not impaired
Includes facilities where:
•contractual payments of interest and / or principal are 90 or more calendar
days overdue, including overdrafts or other revolving facilities that remain
continuously outside approved limits by material amounts for 90 or more
calendar days (including accounts for customers who have been granted
hardship assistance); or
•an order has been sought for the customer’s bankruptcy or similar legal
action has been instituted which may avoid or delay repayment of its credit
obligations; and
•the estimated net realisable value of assets / security to which Westpac has
recourse is sufficient to cover repayment of all principal and interest, or
where there are otherwise reasonable grounds to expect payment in full and
interest is being taken to profit on an accrual basis.
These facilities, while in default, are not treated as impaired for accounting
purposes
Provision for
expected credit
losses (ECL)
Expected credit losses (ECL) are a probability-weighted estimate of the cash
shortfalls expected to result from defaults over the relevant timeframe. They are
determined by evaluating a range of possible outcomes and taking into account
the time value of money, past events, current conditions and future economic
conditions
Collectively
assessed
provisions
(CAPs)
CAPs for expected credit loss under AASB 9 represent the Expected Credit Loss
(ECL) which is collectively assessed in pools of similar assets with similar risk
characteristics. This incorporates forward looking information and does not
require an actual loss event to have occurred for an impairment provision to be
recognised
Individually
assessed
provisions (IAPs)
Provisions raised for losses that are known to be impaired and are assessed on
an individual basis. The estimated losses on these impaired loans is based on
expected future cash flows discounted to their present value and, as this
discount unwinds, interest will be recognised in the income statement
Stage 1: 12 months
ECL – performing
For financial assets where there has been no significant increase in credit risk
since origination a provision for 12 months expected credit losses is recognised.
Interest revenue is calculated on the gross carrying amount of the financial asset
Stage 2: Lifetime ECL
– performing
For financial assets where there has been a significant increase in credit risk
since origination but where the asset is still performing a provision for lifetime
expected losses is recognised. Interest revenue is calculated on the gross
carrying amount of the financial asset
Stage 3 Lifetime ECL –
non-performing
For financial assets that are non-performing a provision for lifetime expected
losses is recognised. Interest revenue is calculated on the carrying amount net
of the provision for ECL rather than the gross carrying amount
Impaired
assets
Includes exposures that have deteriorated to the point where full collection of
interest and principal is in doubt, based on an assessment of the customer’s
outlook, cashflow, and the net realisation of value of assets to which recourse is
held:
•facilities 90 days or more past due, and full recovery is in doubt: exposures
where contractual payments are 90 or more days in arrears and the net
realisable value of assets to which recourse is held may not be sufficient to
allow full collection of interest and principal, including overdrafts or other
revolving facilities that remain continuously outside approved limits by
material amounts for 90 or more calendar days;
•non-accrual facilities: exposures with individually assessed impairment
provisions held against them, excluding restructured loans;
•restructured assets: exposures where the original contractual terms have
been formally modified to provide for concessions of interest or principal for
reasons related to the financial difficulties of the customer;
•other assets acquired through security enforcement (includes other real
estate owned): includes the value of any other assets acquired as full or
partial settlement of outstanding obligations through the enforcement of
security arrangements; and
•any other facility where the full collection of interest and principal is in doubt
Stressed exposures
Watchlist and substandard, 90 days past due and not impaired and impaired
exposures. Stressed exposures do not include stressed exposures which are
on an active COVID-19 deferral package as of 30 September 2020
Total committed
exposures (TCE)
Represents the sum of the committed portion of direct lending (including funds
placement overall and deposits placed), contingent and pre-settlement risk plus
the committed portion of secondary market trading and underwriting risk
Watchlist and
substandard
Loan facilities where customers are experiencing operating weakness and
financial difficulty but are not expected to incur loss of interest or principal
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack

Appendix 4:
114
Definitions – Divisions, earnings drivers, capital and liquidity.
Appendix
Capital and liquidity
Capital ratiosAs defined by APRA (unless stated otherwise)
Committed
liquidity facility
(CLF)
The RBA makes available to Australian Authorised Deposit-taking Institutions a
CLF that, subject to qualifying conditions, can be accessed to meet LCR
requirements under APS210Liquidity
High quality liquid
assets (HQLA)
Assets which meet APRA’s criteria for inclusion as HQLA in the numerator of the
LCR
Internationally
comparable ratios
Internationally comparable regulatory capital ratios are Westpac’s estimated ratios
after adjusting the capital ratios determined under APRA Basel III regulations for
various items. Analysis aligns with the APRA study titled “International capital
comparison study” dated 13 July 2015
Leverage ratio
As defined by APRA (unless stated otherwise). Tier 1 capital divided by ‘exposure
measure’ and expressed as a percentage. ‘Exposure measure’ is the sum of on-
balance sheet exposures, derivative exposures, securities financing transaction
exposures and other off-balance sheet exposures
Liquidity coverage
ratio (LCR)
An APRA requirement to maintain an adequate level of unencumbered high quality
liquid assets, to meet liquidity needs for a 30 calendar day period under an APRA-
defined severe stress scenario. Absent a situation of financial stress, the value of
the LCR must not be less than 100%, effective 1 January 2015. LCR is calculated
as the percentage ratio of stock of HQLA and CLF over the total net cash out-flows
in a modelled 30 day defined stressed scenario
Net stable funding
ratio (NSFR)
The NSFRis defined as the ratio of the amount of available stable funding (ASF) to
the amount of required stable funding (RSF) defined by APRA. The amount of ASF
is the portion of an ADI’scapital and liabilities expected to be a reliable source of
funds over a one year time horizon. The amount of RSF is a function of the liquidity
characteristics and residual maturities of an ADI’s assets and off-balance sheet
activities. ADI’s must maintain an NSFR of at least 100%
Risk weighted
assets or RWA
Assets (both on and off-balance sheet) are risk weighted according to each asset’s
inherent potential for default and what the likely losses would be in case of default.
In the case of non-asset-backed risks (ie. market and operational risk), RWA is
determined by multiplying the capital requirements for those risks by 12.5
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
Divisions
Consumer
Consumer provides banking products and services to Australian personal customers,
including mortgages, credit cards, personal loans, and savings and deposit products
Business
Business serves the banking needs of Australian SME and Commercial customers
(including Agribusiness) and provides banking and advisory services to high net worth
individuals through Private Wealth
WIB
Westpac Institutional Bank (WIB) provides a broad range of financial products and
services to corporate, institutional and government customers
Westpac NZ
Westpac New Zealand provides banking, wealth and insurance products and services
for consumer, business and institutional customers in New Zealand
Specialist
Businesses
Specialist Businesses provides auto finance, Australian life, general and lenders
mortgage insurance, investment product and services (including margin lending and
equities broking), superannuation and retirement products as well as wealth
administration platforms. It also manages Westpac Pacific which provides a full range
of banking services in Fiji and Papua New Guinea. Westpac has announced it has
entered into a sales agreement for Westpac Pacific, Westpac Vendor Finance
business, Westpac General Insurance, and Westpac Lenders Mortgage Insurance.
These sales are expected to finalise in 2021, subject to regulator approvals
Group
Businesses
or GB
Group Businesses includes the results of unallocated support functions such as
Treasury, Technology and Operations, and Core Support. It also includes Group-wide
elimination entries arising on consolidation, centrally raised provisions and other
unallocated revenue and expenses
Earnings drivers
Average interest-
earning assets
(AIEA)
The average balance of assets held by the Group that generate interest income.
Where possible, daily balances are used to calculate the average balance for the
period
Cash earnings per
ordinary share
Cash earnings divided by the weighted average ordinary shares (cash earnings
basis)
Core earningsNet operating income less operating expenses
Full-time
equivalent
employees (FTE)
A calculation based on the number of hours worked by full and part-time employees
as part of their normal duties. For example, the full-time equivalent of one FTE is 76
hours paid work per fortnight

Appendix 4:
115
Definitions – Other.
Appendix
Branch
transactions
Branch transactions are typically withdrawals, deposits, transfers and payments
Customer
satisfaction or
CSat
The Customer Satisfaction score is an average of customer satisfaction ratings of
the customer’s main financial institution for consumer or business banking on a
scale of 0 to 10 (0 means ‘extremely dissatisfied’ and 10 means ‘extremely
satisfied’)
CSAT (Main Bank
Service
Satisfaction)
(Westpac NZ)
Source: 3 month rolling Retail Market Monitor data (survey conducted by Camorra
Research). Respondents are asked to rate the overall level of service they receive
from their main bank (self-selected which ONE bank is their main provider of
financial services) on a scale of 1 (Poor) to 5 (Excellent). The rating represents % of
respondents who scored 4 (Very Good) or 5 (Excellent)
CSat – overall
consumer
Source: DBM Consultants Consumer Atlas, August 2018 – February 2021, 6MMA.
MFI customers
CSat – overall
business
Source: DBM Consultants Business Atlas, August 2018 – February 2021, 6MMA.
MFI customers, all businesses
CSat – SME
Source: DBM Consultants Business Atlas, 6 months to September 2019, March
2020 and August 2020. MFI customers, Total SME businesses. Total SME
businesses are those organisations with annual turnover under $5 million
(excluding Agribusinesses)
Digitally active
Australian consumer and business customers who have had an authenticated
session (including Quickzone) on Westpac Group digital banking platforms in the
prior 90 days
Digital sales
Sales refers to digital sales of consumer core products only. Sales with a funded
deposit or activation constitute a quality sale. Includes new American Express credit
card sales
Digital
transactions
Digital transactions including payment and transfers that occur on Westpac Live and
Compass platforms (excludes payments on other platforms such as Corporate
Online and Business Banking Online)
MFI share
MFI share results are based on the number of customers who have a Main Financial
Institution (MFI) relationship with an institution, as a proportion of the number of
customers that have a MFI relationship with any institution
Consumer MFI
share
Source: DBM Consultants Consumer Atlas, 6 months to February 2021. MFI
customers
Net Promoter
Score or NPS
Net Promoter Score measures the net likelihood of recommendation to others of the
customer’s main financial institution for retail or business banking. Net Promoter
Score
SM
is a trademark of Bain & Co Inc., SatmetrixSystems, Inc., and Mr Frederick
Reichheld. Using a 11 point numerical scale where 10 is ‘Extremely likely’ and 0 is
‘Extremely unlikely’, Net Promoter Score is calculated by subtracting the percentage
of Detractors (0-6) from the percentage of Promoters (9-10)
NPS Agri
(Westpac NZ)
6 month Agri Market Monitor data (survey conducted by Key Research).
Respondents are asked about likelihood to recommend their main business bank to
business colleagues, friends or family on a scale of 1 (extremely unlikely) to 10
(extremely likely). Net Promoter Score is represents % of Promoters (recommend
score of 9 or 10) minus % of Detractors (recommend score of 1 to 6)
NPS Business
(Westpac NZ)
Source: 6 month rolling Business Finance Monitor data (survey conducted by Kantar
TNS among businesses with an annual turnover of $5 to $150 million). Respondents
are asked about likelihood to recommend their main business bank to business
colleagues and associates on a scale of 1 (extremely unlikely) to 10 (extremely
likely). Net Promoter Score is represents % of Promoters (recommend score of 9 or
10) minus % of Detractors (recommend score of 1 to 6)
NPS Consumer
(Westpac NZ)
Source: 3 month rolling Retail Market Monitor data (survey conducted by Camorra
Research). Respondents are asked about likelihood to recommend their main bank
to family and friends on a scale of 1 (extremely unlikely) to 10 (extremely likely). Net
Promoter Score is represents % of Promoters (recommend score of 9 or 10) minus
% of Detractors (recommend score of 1 to 6)
NPS – overall
consumer
Source: DBM Consultants Consumer Atlas, August 2018 – February 2021, 6MMA.
MFI customers
NPS – overall
business
Source: DBM Consultants Business Atlas, August 2018 – February 2021, 6MMA.
MFI customers, all businesses
St.George(SGB)
Brands
SGB Brands (Consumer): St.GeorgeBank, Bank of Melbourne, BankSA, RAMS,
Dragondirect
SGB Brands (Business): St.GeorgeBank, Bank of Melbourne and BankSA
Women in
Leadership
The proportion of women in leadership roles across the Group. It includes the CEO,
Group Executives, General Managers, senior leaders with significant influence on
business outcomes (direct reports to General Managers and their direct reports),
large (3+) team people leaders three levels below General Manager, and Bank and
Assistant Bank Managers. Senior Executive refers to the proportion of women in the
combined Group Executives and General Manager populations
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack

Louise Coughlan
Head of Rating Agencies and Analysis
+61 2 8254 0549
+61 425 213 504
lcoughlan@westpac.com.au
Investor Relations Team.
Contact Us.
Contact us
www.westpac.com.au/investorcentre
Annual reports
Presentations and webcasts
5 year financial summary
Prior financial results
116Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
Andrew Bowden
Head of Investor Relations
+61 2 8253 4008
+61 438 284 863
andrewbowden@westpac.com.au
Jacqueline Boddy
Head of Debt Investor Relations
+61 2 8253 3133
+61 448 064 012
jboddy@westpac.com.au
Alec Leithhead
Manager
+61 2 8254 0159
+61 481 906 863
alec.leithhead@westpac.com.au
Rebecca Plackett
Director
+61 2 8253 6556
+61 478 336 647
rplackett@westpac.com.au
Or email: investorrelations@westpac.com.au

Disclaimer
The material contained in this presentation is intended to be general background information on Westpac Banking Corporation (Westpac) and its activities.
The information is supplied in summary form and is therefore not necessarily complete. It is not intended that it be relied uponas advice to investors or potential investors, who should consider
seeking independent professional advice depending upon their specific investment objectives, financial situation or particular needs. The material contained in this presentation may include
information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the
information.
All amounts are in Australian dollars unless otherwise indicated.
Unless otherwise noted, financial information in this presentation is presented on a cash earnings basis. Cash earnings is a non-GAAP measure. Refer to Westpac’s 2021 Interim Financial Results
(incorporating the requirements of Appendix 4D) for the six months ended 31 March 2021 available at www.westpac.com.au for details of the basis of preparation of cash earnings. Refer to page 35
for an explanation of cash earnings and Appendix 1 page 109 for a reconciliation of reported net profit to cash earnings.
This presentation contains statements that constitute “forward-looking statements” within the meaning of Section 21E of the US Securities Exchange Act of 1934. Forward-looking statements are
statements about matters that are not historical facts. Forward-looking statements appear in a number of places in this presentation and include statements regarding our intent, belief or current
expectations with respect to our business and operations, macro and micro economic and market conditions, results of operations and financial condition, including, without limitation, future loan
loss provisions, financial support to certain borrowers, indicative drivers, forecasted economic indicators and performance metric outcomes.
We use words such as ‘will’, ‘may’, ‘expect’, ‘intend’, ‘seek’, ‘would’, ‘should’, ‘could’, ‘continue’, ‘plan’, ‘estimate’, ‘anticipate’, ‘believe’, ‘probability’, ‘risk’, ‘aim’, or other similar words to identify
forward-looking statements. These forward-looking statements reflect our current views with respect to future events and are subject to change, certain risks, uncertainties and assumptions which
are, in many instances, beyond our control, and have been made based upon management’s expectations and beliefs concerning future developments and their potential effect upon us. There can
be no assurance that future developments will be in accordance with our expectations or that the effect of future developments on us will be those anticipated. Actual results could differ materially
from those which we expect, depending on the outcome of various factors. Factors that may impact on the forward-looking statements made include, but are not limited to, those described in the
section titled ‘Risk factors' in Westpac’s 2021 Interim Financial Results (incorporating the requirements of Appendix 4D) for the six months ended 31 March 2021 available at www.westpac.com.au.
When relying on forward-looking statements to make decisions with respect to us, investors and others should carefully consider such factors and other uncertainties and events. Except as required
by law, we assume no obligation to update any forward-looking statements contained in this presentation, whether as a result of new information, future events or otherwise, after the date of this
presentation.
Disclaimer
117
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack

Westpac and Shine Lawyers Settle Class Action Westpac Self-Funding Instalments over securities in BOQ

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