WNZL Disclosure Statement – 31 March 2021

ASX
Release
25 MAY 2021
Westpac New Zealand Limited Disclosure Statement
Westpac Banking Corporation (“Westpac”) today provides the attached Westpac New
Zealand Limited Disclosure Statement for the six months ended 31 March 2021.
For further information:
D
avid 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

Westpac
New Zealand
Limited
Disclosure Statement
For the six months ended 31 March 2021

This page has been intentionally left blank

Westpac New Zealand Limited 3
Contents
Westpac New Zealand sustainability performance4
Directors’ statement5
Financial statements
Income statement6Note 6 Provision for expected credit losses14
Statement of comprehensive income6Note 7 Deposits and other borrowings18
Balance sheet7Note 8 Debt issues18
Statement of changes in equity8Note 9 Related entities18
Statement of cash flows9
Note 1 Financial statements preparation 10
Note 10 Fair values of financial assets and financial
liabilities
19
Note 2 Net interest income11
Note 3 Non-interest income12
Note 11 Credit related commitments, contingent
assets and contingent liabilities
22
Note 4 Impairment charges/(benefits)13Note 12 Segment reporting22
Note 5 Loans13
Registered bank disclosures
i. General information24
ii. Additional financial disclosures27
v. Concentration of credit exposures to individual
counterparties
47
iii. Asset quality32vi. Insurance business48
vii. Risk management policies48
iv. Capital adequacy under the internal models
based approach, and regulatory liquidity ratios
36
Conditions of registration49
Independent auditor’s review report51
Glossary of terms
Certain information contained in this Disclosure Statement is required by the Registered Bank Disclosure Statements (New Zealand Incorporated
Registered Banks) Order 2014 (as amended) (‘Order’).
In this Disclosure Statement, reference is made to:
– Westpac New Zealand Limited (otherwise referred to as the ‘Bank’);
– Westpac New Zealand Limited and its controlled entities (otherwise referred to as the ‘Banking Group’);
– Westpac Banking Corporation (otherwise referred to as the ‘Ultimate Parent Bank’); and
– Ultimate Parent Bank and its controlled entities (otherwise referred to as the ‘Ultimate Parent Bank Group’).
Words and phrases not defined in this Disclosure Statement, but defined by the Order, have the meaning given by the Order when used in
this Disclosure Statement.

4 Westpac New Zealand Limited
Westpac New Zealand sustainability performance
2025 Sustainability Strategy. He rau ringa manaaki. Many hands working together.
We are taking action to create a better future for the people who bank
with us, work with us, invest in us or are part of our broader
communities. We do this through our core business, and more widely
by using our financial and economic expertise to generate positive
economic, social, and environmental outcomes for our customers and
New Zealand.
On 6 Apr 2021 we launched our 2025 Strategy: He rau ringa manaaki –
Many hands working together. Our commitment is Manaaki te ao,
manaaki te tāngata, e tipu pūtea ora. Care for the planet, care for
people and grow financial wellbeing. For more information on our
approach to sustainability visit https://westpac.co.nz/sustainability-
strategy
Sustainability Strategy results for the six months ended 31
March 2021
Manaaki te ao: Care for the planet.
We want to support Aotearoa’s transition to a resilient, net-zero
economy for the benefit of all Kiwis.
2025 targetsProgress
1.Reduce operational emissions by 30% (vs
2019).
1
Offset remaining emissions to be
carbon neutral.
38%
2.Enable $10b in sustainable finance.
2
3.Reduce climate-related financial risks.
$2.25b
Refer Climate
Risk update
Risk update
Highlights for the half-year to 31 March 2021 include:
Partnered with app CoGo to help New Zealanders learn about,
reduce and offset their carbon footprint.
Acted as Arranger and Green Bond Co-ordinator for Mercury NZ
Limited’s $200m, 5.5 year Green Bond.
Recognised as New Zealand Sustainability Debt House of the Year
(KangaNews 2020 Awards) and won the INFINZ award for
Excellence in Institutional Banking for Westpac’s role in leading
and accelerating sustainable finance.
Published Westpac NZ’s inaugural Climate Risk Report in line with
the recommendations of the Taskforce for Climate-Related
Financial Disclosure (TCFD).
Climate Risk Update
We released our first Climate Risk Report in November 2020. It aligns
with the TCFD recommendations. During the half-year to 31 March
2021, our effort has been focused on:
Engaging with external stakeholders to promote climate risk
disclosure and increase awareness of the financial risks posed by
sea-level-rise.
Incorporating climate risks into existing governance and risk
management processes and enhancing internal capabilities.
Deepening our understanding of climate risks with particular
focus on our lending to the agricultural sector.
Key climate risk metrics
Our direct carbon emissions footprint (tC0
2
e) continues to reduce as a
direct result of less travel due to COVID-19.
The approximate proportion of our lending portfolio secured by
properties exposed to heightened risks from sea-level-rise (coastal
flooding and erosion) was relatively stable and within the range of
normal portfolio fluctuation.
3
Segment31 Mar 2130 Sep 20
Residential mortgages2.3%2.3%
Commercial property lending2.3%2.1%
Agricultural lending2.9%2.9%
Lending to fossil fuel mining and production reduced further by 21%
due to debt reductions to customers in the gas sector. At the same
time climate change solution lending decreased by 5%
4
as some of the
previous lending was repaid.
We plan to release a more detailed disclosure in our next Westpac NZ
Climate Risk Report planned for November 2021.
Manaaki te tāngata: Care for people.
We want to help create thriving local communities and a workforce
and society where everyone feels valued.
2025 targetsProgress
4.Set a cultural diversity in leadership target
by 2021.
Initiative in
progress
5.1% pre-tax profits invested in communities.0.52%
($3.76m)
6.$700m in lending to healthy, affordable and
social housing.
5
$373m
Highlights for the half-year to 31 March 2021 include:
First bank to offer face-to-face sign language interpreters,
through partner iSign to customers who are deaf, hard of hearing
or speech impaired.
Published our second gender pay analysis. Our overall gender pay
gap in 2020 is 29.1% vs 30.3% in 2019. This figure compares the
pay of the median man and median woman at Westpac NZ, and
includes base salary, bonuses, overtime, miscellaneous payments
and superannuation.
E tipu pūtea ora: Grow financial wellbeing.
We want to enable all Kiwis to be financially secure and independent.
2025 targetsProgress
7.25,000 people to participate in Westpac-
facilitated financial education workshops.
8,034
participants
8.Help 15,000 Kiwis who are at risk of
financial exploitation & exclusion.
Initiatives in
progress
9.Source 25% of supplier spend from local
businesses, including those owned by
diverse and under-represented groups.
Initiative in
progress
Highlights for the half-year to 31 March 2021 include:
MyMahi partnership delivering 226 financial education workshops
to secondary school students across New Zealand.
Increased online financial education classes. To date more than
1,000 people have participated in online classes vs. 169 in FY20.
1
Environmental year runs 1 July to 30 June. CO
2
e results include all Westpac business units based in New Zealand.
2
This target comprises (a) $5b for lending to climate change solutions, $700m lending for healthy, affordable and social housing, and other environmental, social, and sustainability-linked lending
(building on FY20 exposure), and (b) facilitation of sustainable bonds from 1 October 2020 to 30 September 2025. All lending will meet the eligibility criteria set out in international sustainable finance
principles. Our targets are a total commitment, measuring the cumulative flow of capital that will support Aotearoa to become a thriving, inclusive net-zero emissions economy.
3
Heightened risk is defined as annual exceedance probability of 10% or more, as well as general exposure to coastal erosion under NIWA’s Coastal Sensitivity Index.
4
Shows reduction of total committed exposure at the end of half year reporting period compared to FY ended 30 September 2020.
5
This is a cumulative target and includes Kiwibuild and shared equity.

Westpac New Zealand Limited 5
Directors’ statement
Each Director of the Bank believes, after due enquiry, that, as at the date on which this Disclosure Statement is signed, the Disclosure Statement:
(a) contains all the information that is required by the Order; and
(b) is not false or misleading.
Each Director of the Bank believes, after due enquiry, that over the six months ended 31 March 2021, except as noted on pages 25, 47 and 49:
(a) the Bank has complied in all material respects with each condition of registration that applied during that period;
(b) credit exposures to connected persons were not contrary to the interests of the Banking Group; and
(c) the Bank had systems in place to monitor and control adequately the Banking Group’s material risks, including credit risk, concentration of
credit risk, interest rate risk, currency risk, equity risk, liquidity risk, operational risk and other business risks, and that those systems were
being properly applied.
This Disclosure Statement has been signed by all the Directors:
Janice Dawson
David McLean
Malcolm Bailey
Philippa Greenwood
Jonathan Mason
Mary Quin
Dated this 20
th
day of May 2021

Income statement for the six months ended 31 March 2021
6 Westpac New Zealand Limited
THE BANKING GROUP
Six MonthsSix Months
EndedEnded
31 Mar 2131 Mar 20
$ millionsNoteUnauditedUnaudited
Interest income:
Calculated using the effective interest rate method2 1,551 1,860
Other2 5 19
Total interest income2 1,556 1,879
Interest expense2 (532)(923)
Net interest income 1,024 956
Net fees and commissions income3 121 122
Other income3 6 15
Net operating income before operating expenses and impairment charges 1,151 1,093
Operating expenses (527)(525)
Impairment (charges)/benefits4 99 (210)
Profit before income tax 723 358
Income tax expense (200)(102)
Net profit attributable to the owner of the Bank 523 256
The above income statement should be read in conjunction with the accompanying notes.
Statement of comprehensive income for the six months ended 31 March 2021
THE BANKING GROUP
Six MonthsSix Months
EndedEnded
31 Mar 2131 Mar 20
$ millions
UnauditedUnaudited
Net profit attributable to the owner of the Bank 523 256
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Gains/(losses) recognised in equity on:
Investment securities (103)(20)
Cash flow hedging instruments 78 39
Transferred to income statement:
Cash flow hedging instruments 39 48
Income tax on items taken to or transferred from equity:
Investment securities 29 5
Cash flow hedging instruments (33)(24)
Items that will not be reclassified subsequently to profit or loss
Remeasurement of defined benefit obligation recognised in equity (net of tax) 13 (6)
Other comprehensive income for the period (net of tax) 23 42
Total comprehensive income attributable to the owner of the Bank 546 298
The above statement of comprehensive income should be read in conjunction with the accompanying notes.

Balance sheet as at 31 March 2021
Westpac New Zealand Limited 7
THE BANKING GROUP
31 Mar 2130 Sep 20
$ millionsNote
UnauditedAudited
Assets
Cash and balances with central banks 6,126 4,360
Collateral paid 333 148
Trading securities and financial assets measured at fair value through income statement ('FVIS') 2,233 2,437
Derivative financial instruments 240 599
Investment securities 4,933 5,021
Loans5 90,555 87,959
Other financial assets 247 196
Due from related entities 1,624 1,094
Property and equipment 383 398
Deferred tax assets 218 280
Intangible assets 650 647
Other assets 52 53
Total assets 107,594 103,192
Liabilities
Collateral received 216 419
Deposits and other borrowings7 77,345 73,970
Other financial liabilities 1,324 287
Derivative financial instruments 378 293
Debt issues8 15,853 15,799
Current tax liabilities 2 73
Provisions 189 206
Other liabilities 381 356
Total liabilities excluding related entities liabilities 95,688 91,403
Due to related entities 1,047 1,487
Loan capital 2,623 2,612
Total related entities liabilities 3,670 4,099
Total liabilities 99,358 95,502
Net assets 8,236 7,690
Shareholder's equity
Share capital 7,300 7,300
Reserves (15) (25)
Retained profits 951 415
Total shareholder's equity 8,236 7,690
The above balance sheet should be read in conjunction with the accompanying notes.

Statement of changes in equity for the six months ended 31 March 2021
8 Westpac New Zealand Limited
THE BANKING GROUP
Reserves
InvestmentCash FlowTotal
Share SecuritiesHedgeRetainedShareholder's
$ millions
Capital ReserveReserveProfitsEquity
As at 30 September 2019 (Audited) 7,300 4 (81) 194 7,417
Six months ended 31 March 2020 (Unaudited)
Net profit attributable to the owner of the Bank - - - 256 256
Net gains/(losses) from changes in fair value - (20)39 - 19
Income tax effect - 5 (11) - (6)
Transferred to income statement - - 48 - 48
Income tax effect - - (13) - (13)
Remeasurement of defined benefit obligations - - - (8) (8)
Income tax effect - - - 2 2
Total comprehensive income for the six months
ended 31 March 2020 - (15)63 250 298
Transactions with owner:
Dividends paid on ordinary shares - - - (325) (325)
As at 31 March 2020 (Unaudited) 7,300 (11)(18) 119 7,390
As at 30 September 2020 (Audited) 7,300 57 (82) 415 7,690
Six months ended 31 March 2021 (Unaudited)
Net profit attributable to the owner of the Bank - - - 523 523
Net gains/(losses) from changes in fair value - (103) 78 - (25)
Income tax effect - 29 (22) - 7
Transferred to income statement - - 39 - 39
Income tax effect - - (11) - (11)
Remeasurement of defined benefit obligations - - - 18 18
Income tax effect
-
- -
(5)
(5)
Total comprehensive income for the six months
ended 31 March 2021 - (74) 84 536 546
As at 31 March 2021 (Unaudited) 7,300 (17) 2 951 8,236
The above statement of changes in equity should be read in conjunction with the accompanying notes.

Statement of cash flows for the six months ended 31 March 2021
Westpac New Zealand Limited 9
THE BANKING GROUP
Six MonthsSix Months
EndedEnded
31 Mar 2131 Mar 20
$ millionsUnauditedUnaudited
Cash flows from operating activities
Interest received 1,576 1,902
Interest paid (634)(996)
Non-interest income received 102 116
Operating expenses paid (434)(438)
Income tax paid (218)(220)
Cash flows from operating activities before changes in operating assets and liabilities 392 364
Net (increase)/decrease in:
Collateral paid (185)18
Trading securities and financial assets measured at FVIS 202 (1,744)
Loans (2,590) (2,999)
Other financial assets (8) 5
Due from related entities
1
(448)(1,753)
Other assets 5 (5)
Net increase/(decrease) in:
Collateral received (203)688
Deposits and other borrowings 3,375 6,988
Other financial liabilities 1,096 250
Due to related entities
1
(313) 113
Other liabilities 45 14
Net movement in external and related entity derivative financial instruments (69) 114
Net cash provided by/(used in) operating activities 1,299 2,053
Cash flows from investing activities
Purchase of investment securities (271) (65)
Proceeds from investment securities 175 714
Purchase of capitalised computer software (40)(24)
Purchase of property and equipment (9)(4)
Purchase of associates (2) -
Proceeds from other investing activities 7 -
Net cash provided by/(used in) investing activities (140)621
Cash flows from financing activities
Net movement in due to related entities
112
(22)
Proceeds from debt issues
3,147
3,029
Repayments of debt issues
(2,597)
(2,093)
Payments for the principal portion of lease liabilities
(23)
(31)
Dividends paid to ordinary shareholder -(325)
Net cash provided by/(used in) financing activities 639 558
Net increase/(decrease) in cash and cash equivalents 1,798 3,232
Cash and cash equivalents at beginning of the period 4,360 1,864
Cash and cash equivalents at end of the period 6,158 5,096
Cash and cash equivalents at end of the period comprise:
Cash on hand 271 350
Balances with central banks 5,855 4,746
Interbank lending classified as cash and cash equivalents
2
32 -
Cash and cash equivalents at end of the period 6,158 5,096
1
Comparatives have been restated to correctly reflect exposures to the Ultimate Parent Bank in relation to customer foreign currency deposits which were
overstated. The impact of the restatement is a decrease in cashflows of $378m in Due from related entities and an equivalent decrease in Due to related entities.
2
Interbank lending is included within other financial assets on the balance sheet.
The above statement of cash flows should be read in conjunction with the accompanying notes.

Notes to the financial statements
10 Westpac New Zealand Limited
Note 1 Financial statements preparation
These condensed consolidated interim financial statements (‘financial statements’) have been prepared in accordance with the Order and
Generally Accepted Accounting Practice, as appropriate for for-profit entities, and the New Zealand equivalent to International Accounting Standard
34 Interim Financial Reporting and should be read in conjunction with the financial statements included in the Disclosure Statement for the year
ended 30 September 2020. These financial statements comply with International Accounting Standard 34 Interim Financial Reporting as issued by
the International Accounting Standards Board (‘IASB’).
Accounting policies
These financial statements have been prepared under the historical cost convention, as modified by applying fair value accounting to investment
securities and financial assets and financial liabilities (including derivative instruments) measured at FVIS or in other comprehensive income
(‘FVOCI’). The going concern concept has been applied.
The financial statements were authorised for issue by the Board of Directors on 20 May 2021.
All amounts in this Disclosure Statement are presented in New Zealand dollars and have been rounded to the nearest million dollars unless
otherwise stated.
Comparative information has been revised where appropriate to enhance comparability. Where there has been a material restatement of
comparative information the nature of, and the reason for, the restatement is disclosed in these financial statements.
All policies have been applied on a basis consistent with that used in the financial year ended 30 September 2020, with the exception of the
accounting policy for other financial liabilities. Other financial liabilities now include repurchase agreements measured at amortised cost as well as
designated at FVIS.
As at 30 September 2020, all repurchase agreements were designated at FVIS held with related entities and included in due to related entities on
the balance sheet. The accounting policy for other financial liabilities is presented below:
Other financial liabilities
Other financial liabilities include liabilities measured at amortised cost as well as liabilities which are measured at FVIS. Financial liabilities measured
at FVIS include:
- trading liabilities (i.e. securities sold short); and
- liabilities designated at FVIS (i.e. certain repurchase agreements).
Repurchase agreements designated at FVIS held with related entities are included in due to related entities on the balance sheet.
Repurchase agreements
Where securities are sold subject to an agreement to repurchase at a predetermined price, they remain recognised in the balance sheet in their
original category (i.e. ‘trading securities and financial assets at FVIS’ or ‘investment securities’).
The cash consideration received is recognised as a liability (‘repurchase agreements’). Repurchase agreements are designated at fair value where
they are managed as part of a trading portfolio, otherwise they are measured on an amortised cost basis.
Where a repurchase agreement is designated at fair value, subsequent to initial recognition, these liabilities are measured at fair value with changes
in fair value (except credit risk) recognised through the income statement as they arise. The change in fair value that is attributable to credit risk is
recognised in OCI except where it would create an accounting mismatch, in which case it is also recognised through the income statement.
Critical accounting assumptions and estimates
The areas of judgement, estimates and assumptions in these financial statements, including the key sources of estimation uncertainty, are
consistent with those in the Disclosure Statement for the year ended 30 September 2020 except for as noted below:
Provision for expected credit losses (‘ECL’)
Details on specific judgements in relation to the impact of COVID-19 on the calculation of provisions for ECL are included in Note 6.
Amendments to Accounting Standards effective this period
A revised Conceptual Framework (‘Framework’) was adopted by the Banking Group on 1 October 2020. The Framework includes new definitions
and recognition criteria for assets, liabilities, income and expenses, and other relevant financial reporting concepts. These changes did not have a
material impact on the Banking Group.

Notes to the financial statements
Westpac New Zealand Limited 11
Note 2 Net interest income5967-2 04-18
THE BANKING GROUP
Six MonthsSix Months
EndedEnded
31 Mar 2131 Mar 20
$ millions
UnauditedUnaudited
Interest income
Calculated using the effective interest rate method
Cash and balances with central banks 8 7
Collateral paid - 1
Investment securities 42 58
Loans 1,501 1,793
Due from related entities - 1
Total interest income calculated using the effective interest rate method 1,551 1,860
Other
Trading securities and financial assets measured at FVIS 5 13
Due from related entities -6
Total other 5 19
Total interest income 1,556 1,879
Interest expense
Calculated using the effective interest rate method
Collateral received - 2
Deposits and other borrowings 243 532
Debt issues 80 135
Due to related entities 8 11
Loan capital 48 59
Other interest expense 4 7
Total interest expense calculated using the effective interest rate method 383 746
Other
Deposits and other borrowings 10 8
Debt issues 3 24
Due to related entities 1 -
Other interest expense
1
135 145
Total other 149 177
Total interest expense 532 923
Net interest income 1,024 956
1
Includes the net impact of Treasury’s interest rate and liquidity management activities.

Notes to the financial statements
12 Westpac New Zealand Limited
Note 3 Non-interest income5967-2 04-18
THE BANKING GROUP
Six MonthsSix Months
EndedEnded
31 Mar 2130 Mar 20
$ millions
UnauditedUnaudited
Net fees and commissions income
Facility fees 30 30
Transaction fees and commissions 111 115
Other non-risk fee income 10 11
Fees and commissions income 151 156
Credit card loyalty programs (18)(19)
Transaction fees and commissions related expenses (12)(15)
Fees and commissions expenses (30)(34)
Net fees and commissions income 121 122
Other income
Net ineffectiveness on qualifying hedges (4)14
Other non-interest income 10 1
Total other income 6 15
Total non-interest income 127 137
Non-interest income in scope of NZ IFRS 15 Revenue from Contracts with Customers (‘NZ IFRS 15’) can be further disaggregated into the following
operating segments and is consistent with the segment descriptions detailed in Note 12:
THE BANKING GROUP
$ millions
Consumer
Banking and
Wealth
Institutional
and Business
Banking
Investments and
Insurance
Reconciling
ItemsTotal
Six months ended 31 March 2021 (Unaudited)
Fees and commissions income
Facility fees 19 8 - 3 30
Transaction fees and commissions 81 34 - (4) 111
Other non-risk fee income 3 8 - (1) 10
Fees and commissions income 103 50 - (2) 151
Fees and commissions expenses (29) - - (1) (30)
Net fees and commissions income 74 50 - (3) 121
Six months ended 31 March 2020 (Unaudited)
Fees and commissions income
Facility fees 20 8 -2 30
Transaction fees and commissions 73 43 -(1) 115
Other non-risk fee income 6 6 -(1) 11
Fees and commissions income 99 57 - - 156
Fees and commissions expenses(34)- - -(34)
Net fees and commissions income 65 57 - - 122

Notes to the financial statements
Westpac New Zealand Limited 13
Note 4 Impairment charges/(benefits)
THE BANKING GROUP
Six MonthsSix Months
Ended Ended
31 Mar 2131 Mar 20
$ millions
UnauditedUnaudited
Provisions raised/(released):
Performing (91)133
Non-performing (14) 68
Bad debts written-off/(recovered) directly to the income statement 6 9
Impairment charges/(benefits) (99) 210
of which relates to:
Loans and credit commitments (99) 210
Impairment charges/(benefits) (99) 210
Impairment charges/(benefits) on all other financial assets are not material to the Banking Group. Refer to Note 6 for details on the impact of
COVID-19 on the provision for ECL.
Note 5 Loans
THE BANKING GROUP
31 Mar 2130 Sep 20
$ millions
UnauditedAudited
Residential mortgages 58,290 55,212
Other retail 3,226 3,299
Corporate 29,450 29,957
Other
81 92
Total gross loans 91,047 88,560
Provision for ECL on loans (refer to Note 6) (492)(601)
Total net loans 90,555 87,959
As at 31 March 2021, $7,525 million of residential mortgages, accrued interest (representing accrued interest on the outstanding residential
mortgages) and cash (representing collections of principal and interest from the underlying residential mortgages) were used by the Banking
Group to secure the obligations of Westpac Securities NZ Limited (‘WSNZL’) under the Bank’s Global Covered Bond Programme (‘CB
Programme’) (30 September 2020: $7,524 million). In addition, $1,199 million of residential mortgages, accrued interest and cash has been
pledged as collateral as part of a repurchase agreement with the Reserve Bank, under the Funding for Lending Programme (30 September 2020:
nil). These pledged assets were not derecognised from the Banking Group’s balance sheet in accordance with the accounting policies outlined in
Note 1 to the financial statements included in the Disclosure Statement for the year ended 30 September 2020. As at 31 March 2021, the New
Zealand dollar equivalent of bonds issued by WSNZL under the CB Programme was $4,183 million (30 September 2020: $4,468 million) and the
cash value of the repurchase agreement with the Reserve Bank was $1,000 million (30 September 2020: nil).

Notes to the financial statements
14 Westpac New Zealand Limited
Note 6 Provision for expected credit losses
Loans and credit commitments
The reconciliation of the provision for ECL for loans and credit commitments has been determined by an aggregation of monthly movements over
the period. The key line items in the reconciliation represent the following:
The “transfers between stages” lines represent transfers between stage 1, stage 2 and stage 3 prior to remeasurement of the provision for
ECL.
The “new financial assets originated” line represents new accounts originated during the period.
The “financial assets derecognised during the period” line represents loans derecognised due to final repayments during the period.
The “other charges/(credits) to the income statement” line represents the impact on the provision for ECL due to changes in credit quality
during the period (including transfers between stages), changes due to forward looking economic scenarios, changes in overlays, and partial
repayments and additional drawdowns on existing facilities over the period.
Amounts written off represent a reduction in the provision for ECL as a result of derecognition of exposures where there is no reasonable
expectation of full recovery.
Movements in components of loss allowance
The following table shows the collectively assessed provisions (‘CAP’) and individually assessed provisions (‘IAP’) for loans and credit commitments.
THE BANKING GROUP
31 Mar 21
Unaudited
PerformingNon-performing
Stage 1Stage 2Stage 3Stage 3
$ millions
CAPCAPCAPIAP
Total
Provision for ECL on loans and credit commitments as at 30
September 2020
116 360 107 74 657
Due to changes in credit quality:
Transfers to Stage 1 73 (64) (9) - -
Transfers to Stage 2 (8) 60 (52) - -
Transfers to Stage 3 CAP - (19) 21 (2) -
Transfers to Stage 3 IAP - (1) (1) 2 -
Reversals of previously recognised impairment charges - - - (5) (5)
New financial assets originated 10 - - - 10
Financial assets derecognised during the period (7) (21) (11) - (39)
Changes in CAP due to amounts written off - - (18) - (18)
Other charges/(credits) to the income statement (79) (35) 50 11 (53)
Total charges/(credits) to the income statement for ECL (11) (80) (20) 6 (105)
Amounts written off from IAP - - - (14) (14)
Total provision for ECL on loans and credit commitments as
at 31 March 2021
105 280 87 66 538
Presented as:
Provision for ECL on loans (refer to Note 5) 87 252 87 66 492
Provision for ECL on credit commitments 18 28 - - 46
Total provision for ECL on loans and credit commitments as
at 31 March 2021
105 280 87 66 538

Notes to the financial statements
Westpac New Zealand Limited 15
Note 6 Provision for expected credit losses (continued)
THE BANKING GROUP
30 Sep 20
Audited
PerformingNon-performing
Stage 1Stage 2Stage 3Stage 3
$ millions
CAPCAPCAPIAP
Total
Provision for ECL on loans and credit commitments as at 30
September 2019
91 180 53 28 352
Due to changes in credit quality:
Transfers to Stage 1 425 (400)(25)- -
Transfers to Stage 2(53)143(87) (3) -
Transfers to Stage 3 CAP-(85) 86 (1)-
Transfers to Stage 3 IAP- (21)(7)28-
Reversals of previously recognised impairment charges- - - (11) (11)
New financial assets originated 23 - - - 23
Financial assets derecognised during the year(14) (40)(19)- (73)
Changes in CAP due to amounts written off - - (33) - (33)
Other charges/(credits) to the income statement(356)583 139 38 404
Total charges/(credits) to the income statement for ECL 25 180 54 51 310
Amounts written off from IAP - - - (5)(5)
Total provision for ECL on loans and credit commitments as
at 30 September 2020
116 360 107 74 657
Presented as:
Provision for ECL on loans (refer to Note 5) 95 326 107 73 601
Provision for ECL on credit commitments 21 34 -1 56
Total provision for ECL on loans and credit commitments as
at 30 September 2020
116 360 107 74 657
The following table provides further details of the provision for ECL by types of exposure and stage:
THE BANKING GROUP
31 Mar 2130 Sep 20
UnauditedAudited
PerformingNon-performingPerformingNon-performing
Stage 1Stage 2Stage 3Stage 3Stage 1Stage 2Stage 3Stage 3
$ millions
CAPCAPCAPIAP
Total
CAPCAPCAPIAP
Total
Provision for ECL on loans and
credit commitments
Residential mortgages 47 114 51 6 218 49 123 70 6 248
Other retail 23 67 27 1 118 28 81 31 3 143
Corporate 35 99 9 59 202 39 156 6 65 266
Total provision for ECL on
loans and credit commitments
105 280 87 66 538 116 360 107 74 657

Notes to the financial statements
16 Westpac New Zealand Limited
Note 6 Provision for expected credit losses (continued)
Impact of overlays on the provision for ECL for the six months ended 31 March 2021
The following table shows the attribution of the total provision for ECL between modelled provision for ECL and overlays.
Where there is increased uncertainty regarding the required forward-looking economic conditions under NZ IFRS 9 Financial Instruments, or
limitations of the historical data used to calibrate the models to current stressed environments, overlays are typically used to address areas of
potential risk not captured in the underlying modelled ECL.
THE BANKING GROUP
31 Mar 2130 Sep 20
$ millionsUnauditedAudited
Modelled provision for ECL 368 522
Overlays 170 135
Total provision for ECL 538 657
Details of these changes, which are based on reasonable and supportable information up to the date of this disclosure statement are provided
below.
Modelled provision for ECL
The modelled provision for ECL is a probability weighted estimate based on three scenarios which together are representative of the Banking
Group’s view of the forward-looking distribution of potential loss outcomes. The decrease in provisions as a result of changes in modelled ECL are
reflected through the ”Other charges/(credits) to the income statement” line in the “Movements in components of loss allowance” table.
The base case scenario uses the Banking Group’s latest economic forecasts at 31 March 2021. These forecasts have improved compared to prior
period forecasts and take into consideration the unwind of Government and bank stimulus and support measures.
The Banking Group's forecasts assume the following:
Key macroeconomic assumptions
for base case scenario
31 Mar 21
1
Unaudited
30 Sep 20
Audited
Annual GDPForecasted growth to peak at 15.4% in June 2021
then ease to 3.2% over the next 12 months.
Forecasted growth of 6.7% over the next 12 months.
Residential property pricesForecasted growth to peak at 20.9% in August 2021
then ease to 12.4% over the next 12 months.
Forecasted growth of 6.8% over the next 12 months.
Cash rateForecasted to remain at 25 bps over the next 12
months.
Reduction of 50 bps in the next 12 months.
Unemployment rateForecasted to peak at 5.1% in June 2021 then ease to
4.8% over the next 12 months.
Forecast to peak at 7% (December 2020) and then
fall to 6.6% at September 2021.
1
The Banking Group released updated forecasts on 9 April 2021, which reflects additional events (for example, government tax policy announcement) up to 31
March 2021 that have not been incorporated into the forecast assumptions above. These updated forecasts do not have a material impact on the provision for ECL
as at 31 March 2021.
The downside scenario is a more severe scenario with ECL higher than the base case scenario. The more severe loss outcome for the downside is
generated under a recession scenario in which the combination of negative GDP growth, declines in residential property prices and an increase in
the unemployment rate simultaneously impact expected credit losses across all portfolios from the reporting date. The assumptions in this
scenario and relativities to the base case scenario will be monitored having regard to the emerging economic conditions and updated where
necessary. The upside scenario represents a modest improvement to the base case.
The following sensitivity table shows the reported provision for ECL based on the probability weighted scenarios and what the provisions for ECL
would be assuming a 100% weighting is applied to the base case scenario and to the downside scenario (with all other assumptions, including
customer risk grades, held constant).
THE BANKING GROUP
31 Mar 2130 Sep 20
$ millionsUnauditedAudited
Reported probability-weighted ECL 538 657
100% base case ECL 420 492
100% downside ECL 715 902

Notes to the financial statements
Westpac New Zealand Limited 17
Note 6 Provision for expected credit losses (continued)
The following table indicates the weightings applied by the Banking Group as at 31 March 2021 and 30 September 2020.
THE BANKING GROUP
31 Mar 2130 Sep 20
Macroeconomic scenario weightings (%)UnauditedAudited
Upside55
Base5555
Downside4040
Given the uncertainty associated with the effects of the COVID-19 pandemic, including from the potential for further outbreaks and from the
unwinding of stimulus and support measures, the Banking Group has maintained the weights applied to its upside, base case and downside
economic scenarios (5% upside; 55% base; and 40% downside) as well as applying judgement in the calculation of overlays.
If 1% of the Stage 1 gross exposure from loans and credit commitments (calculated on a 12 month ECL) was reflected in Stage 2 (calculated on a
lifetime ECL) the provision for ECL would increase by $22 million (30 September 2020: $33 million) based on applying the average provision
coverage ratios by stage to the movement in the gross exposure by stage.
Overlays
Overlays are typically used to address areas of potential risk, including significant uncertainty, not captured in the underlying modelled ECL.
The Banking Group’s total overlays at 31 March 2021 were $170 million (30 September 2020: $135 million). The increase in provisions as a result of
changes in overlays are reflected through the ”Other charges/(credits) to the income statement” line in the “Movements in components of loss
allowance” table.
Determination of overlays requires expert judgement, and is subject to internal governance and oversight. For example, if the risk of delayed
losses is judged to have dissipated or actual stress emerges, the overlays will be reduced.
COVID-19 overlays
Overlays associated with COVID-19 decreased in the six months to 31 March 2021 to $90 million (30 September 2020: $128 million).
These overlays reflect:
The continued risk that customers may become stressed once COVID-19 related support is removed (expected delayed emergence of loss).
Some customers may have been protected from default or stress because of these support measures. As a result, we expect losses to
emerge later than historically experienced.
The Banking Group extended several relief packages to eligible customers requiring COVID-19 assistance. The packages allowed for
repayment deferrals of up to 12 months up to 31 March 2021. Loans subject to these deferrals were not required to be reported in regulatory
delinquency metrics, it was only after the deferral package expired (or 31 March 2021, whichever was earlier) and the loans were not
subsequently current in their repayments, that these loans were classified as delinquent. As a result, we expect an increase in delinquencies
and stress through the remainder of 2021, as some customers may have difficulty to continue making repayments without assistance. Early-
stage delinquencies have already increased, and we expect that some of these will migrate to 90+ day delinquencies over time, especially for
mortgages and small business lending.
Retail lending
The quantum of the COVID-19 overlay for retail lending of $61 million remains unchanged at 31 March 2021. The expected delayed emergence of
loss which is not reflected in the model assumptions and the increased risk factor of customers coming off deferral packages indicates that the
quantum remains appropriate at 31 March 2021. The retail lending overlay is included in Stage 2, consistent with the treatment of the overlay
recognised at 30 September 2020.
Business lending (including institutional)
The COVID-19 overlay for business lending (including institutional) is $29 million at 31 March 2021 (30 September 2020: $67 million). The overlay at
31 March 2021 relates to the expected delayed emergence of loss which is not reflected in the model assumptions, of which $10 million is included
in Stage 1 and $19 million in Stage 2.
Other management overlays and model adjustments
The remaining $80 million of overlays for 31 March 2021 primarily relates to the impact of other management overlays and model adjustments (30
September 2020: $7 million). Within this $80 million, a model adjustment overlay of $73 million for the residential mortgage portfolio has been
recorded given the impacts on, and volatility in, the modelled ECL by using macroeconomic inputs that are well outside the range of historical
experience, of which $29 million is included in Stage 1 and $44 million in Stage 2.

Notes to the financial statements
18 Westpac New Zealand Limited
Note 6 Provision for expected credit losses (continued)
Impact of changes in credit exposures on the provision for ECL
Refer to Section iii. Asset quality of the Registered bank disclosures for the table showing the impact of changes in gross financial assets on loss
allowances.
Stage 1 credit exposures increased by $3.2 billion (30 September 2020: increased by $0.8 billion) for the Banking Group, primarily driven by
growth in residential mortgage exposures. This increase is calculated after adjusting $1.8 billion transferred to stage 2 to account for gross
carrying amounts (‘GCA’) associated with COVID-19 overlays. Stage 1 ECL has decreased mainly due to the impacts from improved macro-
economic forecasts partially offset by overlays and model adjustments.
Stage 2 credit exposures decreased by $0.7 billion (30 September 2020: increased by $3 billion) for the Banking Group, mainly driven by
underlying portfolio movements in the residential mortgage and corporate asset classes. This decrease is calculated after adjusting $1.8 billion
transferred to stage 2 to account for GCA associated with COVID-19 overlays. Stage 2 ECL has decreased, driven by the impacts from improved
macro-economic forecasts and underlying portfolio movements, partially offset by overlays and model adjustments.
Stage 3 credit exposures decreased by $55 million (30 September 2020: increased by $253 million) for the Banking Group, mainly driven by
underlying portfolio movements in residential mortgages. The decrease in stage 3 exposures is in line with the decrease in 90+ days past due for
residential mortgages, which has resulted in a corresponding decrease in stage 3 ECL.
Note 7 Deposits and other borrowings-2 04-18
THE BANKING GROUP
31 Mar 2130 Sep 20
$ millionsUnauditedAudited
Certificates of deposit 3,289 2,996
Non-interest bearing, repayable at call 13,709 11,571
Other interest bearing:
At call 31,608 28,412
Term 28,739
30,991
Total deposits and other borrowings 77,345 73,970
Deposits and other borrowings have been recognised under both the historical cost convention and by applying fair value accounting to certain
products. Refer to Note 10 for further details.
Note 8 Debt issues
THE BANKING GROUP
31 Mar 2130 Sep 20
$ millionsUnauditedAudited
Short-term debt
Commercial paper 3,293 2,502
Total short-term debt 3,293 2,502
Long-term debt
Non-domestic medium-term notes 4,294 5,329
Covered bonds 4,174 4,457
Domestic medium-term notes 4,092 3,511
Total long-term debt 12,560 13,297
Total debt issues 15,853 15,799
Debt issues have been recognised under both the historical cost convention and by applying fair value accounting to certain products. Refer to
Note 10 for further details.
Note 9 Related entities
Controlled entities of the Bank are set out in Note 22 to the financial statements included in the Disclosure Statement for the year ended 30 September
2020.
In December 2020, the Banking Group, through its subsidiary Red Bird Ventures Limited, acquired 29.6% equity in Akahu Technologies Limited, an investment
in associate, which is not a controlled entity.

Notes to the financial statements
Westpac New Zealand Limited 19
Note 10 Fair values of financial assets and financial liabilities
Fair Valuation Control Framework
The Banking Group uses a Fair Valuation Control Framework where the fair value is either determined or validated by a function independent of the
transaction. This framework formalises the policies and procedures used to achieve compliance with relevant accounting, industry and regulatory
standards. The framework includes specific controls relating to:
– the revaluation of financial instruments;
– independent price verification;
– fair value adjustments; and
– financial reporting.
A key element of the framework is the Revaluation Committee, comprising senior valuation specialists from within the Ultimate Parent Bank Group.
The Revaluation Committee reviews the application of the agreed policies and procedures to assess that a fair value measurement basis has been
applied.
The method of determining fair value differs depending on the information available.
Fair value hierarchy
A financial instrument’s categorisation within the valuation hierarchy is based on the lowest level input that is significant to the fair value
measurement.
The Banking Group categorises all fair value instruments according to the hierarchy described below.
Valuation techniques
The Banking Group applies market accepted valuation techniques in determining the fair valuation of over-the-counter derivatives. This includes
credit valuation adjustments and funding valuation adjustments, which incorporate credit risk and funding costs and benefits that arise in relation to
uncollateralised derivative positions, respectively.
The specific valuation techniques, the observability of the inputs used in valuation models and the subsequent classification for each significant
product category are outlined as follows:
Financial instruments measured at fair value
Level 1 instruments
The fair value of financial instruments traded in active markets is based on recent unadjusted quoted prices. These prices are based on actual arm’s
length basis transactions.
The valuations of Level 1 instruments require little or no management judgement.
InstrumentBalance sheet categoryIncludesValuation
Non-asset
backed debt
instruments
Trading securities and
financial assets measured at
FVIS
Investment securities
New Zealand
Government bonds
These instruments are traded in liquid, active markets where
prices are readily observable. No modelling or assumptions are
used in the valuation.
Level 2 instruments
The fair value for financial instruments that are not actively traded is determined using valuation techniques which maximise the use of observable
market prices. Valuation techniques include:
– the use of market standard discounting methodologies;
– option pricing models; and
– other valuation techniques widely used and accepted by market participants.

Notes to the financial statements
20 Westpac New Zealand Limited
Note 10 Fair values of financial assets and financial liabilities (continued)
InstrumentBalance sheet categoryIncludesValuation
Interest rate
products
Derivative financial instruments
Due from related entities
Due to related entities
Interest rate swaps,
forwards and options
– derivative financial
instruments
Industry standard valuation models are used to calculate the
expected future value of payments by product, which is
discounted back to a present value. The model’s interest rate
inputs are benchmark interest rates and active broker quoted
interest rates in the swap, bond and futures markets. Interest
rate volatilities are sourced from brokers and consensus data
providers. If consensus prices are not available, these are
classified as Level 3 instruments.
Foreign exchange
(‘FX’) products
Derivative financial instruments
Due from related entities
Due to related entities
FX swaps – derivative
financial instruments
Derived from market observable inputs or consensus pricing
providers using industry standard models.
Non-asset backed
debt instruments
Trading securities and financial
assets measured at FVIS
Investment securities
Due from related entities
Due to related entities
Other financial liabilities
Local authority and NZ
public securities, other
bank issued
certificates of deposit,
commercial paper, other
government securities,
off-shore securities and
corporate bonds
Repurchase agreements
and reverse repurchase
agreements over non-
asset backed debt
securities
Valued using observable market prices which are sourced from
independent pricing services, broker quotes or inter-dealer
prices.
Deposits and
other borrowings
at fair value
Deposits and other borrowingsCertificates of deposit
Discounted cash flow using market rates offered for deposits
of similar remaining maturities.
Debt issues at fair
value
Debt issuesCommercial paper
Discounted cash flows, using a discount rate which reflects
the terms of the instrument and the timing of cash flows
adjusted for market observable changes in the Bank’s
implied credit worthiness.
Level 3 instruments
Financial instruments valued where at least one input that could have a significant effect on the instrument’s valuation is not based on observable
market data due to illiquidity or complexity of the product. These inputs are generally derived and extrapolated from other relevant market data and
calibrated against current market trends and historical transactions.
These valuations are calculated using a high degree of management judgement.
As at 31 March 2021, the Banking Group has no financial instruments valued under this category (30 September 2020: nil).

Notes to the financial statements
Westpac New Zealand Limited 21
Note 10 Fair values of financial assets and financial liabilities (continued)
The following table summarises the attribution of financial instruments measured at fair value to the fair value hierarchy:
THE BANKING GROUP
31 Mar 2130 Sep 20
UnauditedAudited
$ millions
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Financial assets measured at fair value on a recurring basis
Trading securities and financial assets measured at FVIS8271,406-2,2331,0641,373-2,437
Derivative financial instruments-240-240-599-599
Investment securities2,3932,540-4,9332,5042,517-5,021
Due from related entities-265-265-252-252
Total financial assets measured at fair value3,2204,451-7,6713,5684,741-8,309
Financial liabilities measured at fair value on a recurring basis
Deposits and other borrowings-3,289-3,289-2,996-2,996
Other financial liabilities-99-99----
Derivative financial instruments-378-378-293-293
Debt issues-3,293-3,293-2,502-2,502
Due to related entities-317-317-671-671
Total financial liabilities measured at fair value-7,376-7,376-6,462-6,462
Analysis of movements between fair value hierarchy levels
During the period, there were no material transfers between levels of the fair value hierarchy (30 September 2020: no material transfers between
levels).
Financial instruments not measured at fair value
The following table summarises the estimated fair value of the Banking Group’s financial instruments not measured at fair value:
THE BANKING GROUP
31 Mar 2130 Sep 20
UnauditedAudited
CarryingCarrying
$ millions
AmountFair ValueAmountFair Value
Financial assets not measured at fair value
Cash and balances with central banks 6,126 6,126 4,360 4,360
Collateral paid 333 333 148 148
Loans 90,555 90,735 87,959 88,298
Other financial assets 247 247 196 196
Due from related entities 1,359 1,359 842 842
Total financial assets not measured at fair value 98,620 98,800 93,505 93,844
Financial liabilities not measured at fair value
Collateral received 216 216 419 419
Deposits and other borrowings 74,056 74,135 70,974 71,116
Other financial liabilities 1,225 1,225 287 287
Debt issues
1
12,560 12,696 13,297 13,517
Due to related entities 730 730 816 816
Loan capital
1
2,623 2,766 2,612 2,737
Total financial liabilities not measured at fair value 91,410 91,768 88,405 88,892
1
The estimated fair value of debt issues and loan capital includes the impact of changes in the Banking Group's credit spreads since origination.
A detailed description of how fair value is derived for financial instruments not measured at fair value is disclosed in Note 24 of the financial statements
included in the Disclosure Statement for the year ended 30 September 2020.5967-2 04-18

Notes to the financial statements
22 Westpac New Zealand Limited
Note 11 Credit related commitments, contingent assets and contingent liabilities
THE BANKING GROUP
31 Mar 2130 Sep 20
$ millions
UnauditedAudited
Letters of credit and guarantees 806 833
Commitments to extend credit 27,912 27,891
Total undrawn credit commitments 28,718 28,724
Contingent assets
The credit commitments shown in the table above also constitute contingent assets. These commitments would be classified as loans on the balance
sheet on the contingent event occurring.
Contingent liabilities
The Banking Group is exposed to contingent liabilities in respect of actual and potential claims and proceedings. An assessment of the Banking
Group’s likely loss in respect of these matters has been made on a case-by-case basis and provision has been made in these financial statements
where appropriate.
Compliance, regulation and remediation
The Banking Group is subject to continued regulatory action and internal reviews. Contingent liabilities may exist in respect of actual or potential
claims, compensation payments and/or refunds identified as part of such regulatory action and reviews. An assessment of the Banking Group’s
likely loss has been made on a case-by-case basis for the purpose of these financial statements but cannot always be reliably estimated.
Note 12 Segment reporting
The Banking Group’s segment reporting incorporates Consumer Banking and Wealth, Institutional and Business Banking, and Investments and
Insurance sectors within New Zealand. On this basis, no geographical segment reporting is provided.
The operating segment results have been presented on a management reporting basis and consequently internal charges and transfer pricing
adjustments have been reflected in the performance of each operating segment. Intersegment pricing is determined on a cost recovery basis.
The Banking Group does not rely on any single major customer for its revenue base.
On 1 October 2020, the Commercial, Corporate and Institutional Banking segment was renamed to Institutional and Business Banking.
Segment comparative information for the six months ended 31 March 2020 has been restated to ensure consistent presentation with the current
reporting period. This reflects changes to expense allocations between segments during the period.
Operating segments are defined by the customers they serve and the services they provide. The Banking Group has identified the following main
operating segments:
–Consumer Banking and Wealth provides financial services predominantly for individuals;
–Institutional and Business Banking provides a broad range of financial services for commercial, corporate, property finance, agricultural,
institutional and government customers; and
–Investments and Insurance provides funds management and insurance services.
Reconciling items primarily represent:
–business units that do not meet the definition of operating segments under NZ IFRS 8 Operating Segments;
–elimination entries on consolidation of the results, assets and liabilities of the Banking Group’s controlled entities in the preparation of the
consolidated financial statements of the Banking Group;
–results of certain entities included for management reporting purposes including insurance and investments, but excluded from the consolidated
financial statements of the Banking Group for statutory financial reporting purposes; and
–results of certain business units excluded for management reporting purposes, but included within the consolidated financial statements of the
Banking Group for statutory financial reporting purposes.

Notes to the financial statements
Westpac New Zealand Limited 23
Note 12 Segment reporting (continued)
THE BANKING GROUP
ConsumerInstitutionalInvestments
Banking andand BusinessandReconciling
$ millionsWealthBankingInsuranceItemsTotal
Six months ended 31 March 2021 (Unaudited)
Net interest income5594851(21)
1,024
Non-interest income
745052(49)127
Net operating income before operating expenses and
impairment charges
63353553(70)1,151
Operating expenses(333)(179)(17)2
(527)
Impairment (charges)/benefits
4059--99
Profit before income tax34041536(68)723
Six months ended 31 March 2020 (Unaudited) (restated)
Net interest income506455-(5)
956
Non-interest income
655755(40)137
Net operating income before operating expenses and
impairment charges
57151255(45)1,093
Operating expenses(341)(180)(16)12(525)
Impairment (charges)/benefits
(101)(109)--(210)
Profit before income tax12922339(33)358
As at 31 March 2021 (Unaudited)
Total gross loans51,97939,038-3091,047
Total deposits and other borrowings39,62534,431-3,28977,345
As at 30 September 2020 (Audited)
Total gross loans48,97939,457-12488,560
Total deposits and other borrowings38,63732,337-2,99673,970

Registered bank disclosures
Unaudited
Unaudited
24 Westpac New Zealand Limited
This section contains the additional disclosures required by the Registered Bank Disclosure Statements (New Zealand Incorporated Registered
Banks) Order 2014 (as amended).
i. General information
Limits on material financial support by the Ultimate Parent Bank
On 19 November 2015, the Australian Prudential Regulation Authority (‘APRA’) informed the Ultimate Parent Bank that its Extended Licensed
Entity (‘ELE’) non-equity exposures to New Zealand banking subsidiaries were to transition to be below a limit of 5% of the Ultimate Parent Bank’s
Level 1 Tier 1 capital, as part of an initiative to reduce Australian bank non-equity exposure to their respective New Zealand banking subsidiaries and
branches.
The ELE consists of the Ultimate Parent Bank and its subsidiary entities that have been approved by APRA to be included in the ELE for the purposes
of measuring capital adequacy.
The five-year transition period allowed by APRA to reach the 5% limit ended on 31 December 2020. Exposures for the purposes of this limit include
all committed, non-intraday, non-equity exposures including derivatives and off-balance sheet exposures. For the purposes of assessing this
exposure, the 5% limit excludes equity investments and holdings of capital instruments in New Zealand banking subsidiaries. As at 31 March 2021,
the ELE’s non-equity exposures to New Zealand banking subsidiaries affected by the limit were below 5% of Level 1 Tier 1 capital of the Ultimate Parent
Bank.
APRA has also confirmed the terms on which the Ultimate Parent Bank ‘may provide contingent funding support to a New Zealand banking
subsidiary during times of financial stress’. APRA has confirmed that, at this time, only covered bonds meet its criteria for contingent funding
arrangements.
Guarantee arrangements
No material obligations of the Bank are guaranteed as at the date the Directors signed this Disclosure Statement.
Westpac New Zealand Group Limited does not guarantee any of the obligations of the Bank or any member of the Banking Group.
Changes in the Bank’s Board of Directors
There have been no changes in the composition of the Board of Directors of the Bank (the ‘Board’) since 30 September 2020.
Auditor
PricewaterhouseCoopers
PwC Tower, Level 27
15 Customs Street West
Auckland, New Zealand
Pending proceedings or arbitration
No pending legal proceedings or arbitration concerning any member of the Banking Group is expected to have a material adverse effect on the Bank or
the Banking Group.
Credit ratings
The Bank has the following credit ratings with respect to its long-term senior unsecured obligations, including obligations payable in New Zealand in
New Zealand dollars, as at the date the Directors signed this Disclosure Statement:
Rating AgencyCurrent Credit RatingRating Outlook
Fitch Ratings
Moody’s Investors Service
S&P Global Ratings
A+
A1
AA-
Rating Watch Negative
Stable
Negative
On 29 March 2021, Fitch Ratings revised the outlook of the Bank to Rating Watch Negative (from Negative outlook). This change in outlook was in
response to the Ultimate Parent Bank’s announcement on 24 March 2021, that it is considering the appropriate structure for its New Zealand business
and assessing whether a demerger would be in the best interests of shareholders. Fitch Ratings noted that they will resolve the Rating Watch Negative
once the Ultimate Parent Bank has decided whether to proceed with the demerger.

Registered bank disclosures
Unaudited
Unaudited
Westpac New Zealand Limited 25
i.General information (continued)
Other material matters
Reports required under section 95 of the Reserve Bank of New Zealand Act 1989
On 23 March 2021, the Reserve Bank issued two notices to the Bank under section 95 of the Reserve Bank of New Zealand Act 1989 requiring the Bank
to supply two external reviews to the Reserve Bank. The reports are required to address concerns raised by the Reserve Bank around the Bank’s risk
governance processes following various compliance issues reported over recent years. Those issues include non-compliance with the Reserve
Bank's liquidity, capital adequacy and outsourcing requirements (as previously reported in the Bank’s disclosure statements) and certain technology
issues, including IT outages. While work has been underway to address these areas for some time, more work is required to meet the Bank’s
expectations and those of the regulator.
The first report relates to the effectiveness of the actions the Bank has taken to improve the management of liquidity risk and the associated risk
culture, following previously identified breaches of the Reserve Bank’s Liquidity Policy (BS13) and potential non-compliance identified through the
Reserve Bank’s liquidity thematic review. Previous reviews identified the need to implement fundamental improvements to the Bank’s management
of liquidity risk, and to make material changes to the culture in the relevant teams.
The second report requires the external reviewer to assess the effectiveness of risk governance at the Bank, with a particular focus on the role
played by the Board.
The reviews apply only to the Bank and not the governance processes of the Ultimate Parent Bank in Australia or its New Zealand branch.
With effect from 31 March 2021, the Reserve Bank amended the Bank's conditions of registration to apply an overlay to the Bank's mismatch ratios.
The overlay is specified by the Reserve Bank as an adjustment to liquid assets of 114 percent (requiring the Bank to discount the value of its liquid
assets by approximately $2.3 billion). This overlay will apply until the Reserve Bank is satisfied that:
the Reserve Bank's concerns regarding liquidity risk controls have been resolved; and
sufficient progress has been made to address risk culture issues in the Bank's Treasury and Market and Liquidity Risk functions.
The Bank is currently engaging with the Reserve Bank in relation to potential experts to prepare the independent reports.
Separate to the section 95 reports, the Bank also committed to the Reserve Bank and Financial Markets Authority to address the technology issues,
and to engage Deloitte to monitor progress. Deloitte delivered its first quarterly report to the Bank in May 2021 in relation to the adequacy of the IT
uplift plan, which indicated that improvement is required to the programme oversight and that the scope of the plan should be broader and more
detailed in some areas. The Bank will take Deloitte's recommendations into account as it continues to implement its IT uplift plan.
Ultimate Parent Bank's review of New Zealand business
On 24 March 2021, the Ultimate Parent Bank announced that it is assessing the appropriate structure for its New Zealand business and whether a
demerger would be in the best interests of its shareholders. The Ultimate Parent Bank is in the early stage of this assessment and no decision has yet
been made. This review will also consider the impact of the Reserve Bank’s s 95 reviews.
Business Financing Guarantee Scheme
On 13 April 2020 the Bank entered into a deed of indemnity with the New Zealand Government to implement the New Zealand Government’s
business finance guarantee scheme (‘Scheme’). The key terms of the Scheme, which were amended and restated on 20 August 2020, and further
extended by a Scheme Notice issued by the New Zealand Government on 15 December 2020, are as follows:
The Scheme permits banks to lend up to $5,000,000 to qualifying borrowers for a maximum of five years; and
The New Zealand Government will pay 80% of any loss incurred by the Bank on a loan it makes under the Scheme, after the Bank has
exhausted its recoveries procedures,
in each case, subject to the terms of the Scheme.
Reserve Bank steps to support liquidity and customer lending
On 20 March 2020 the Reserve Bank announced that it would provide term funding through a Term Auction Facility (‘TAF’) to give banks (including
the Bank) the ability to access term funding, with collateralised loans out to a term of twelve months, in order to alleviate pressures in funding
markets as a result of COVID-19. On 2 April 2020, the Reserve Bank reduced the minimum core funding ratio for banks (including the Bank) from
75% to 50%. On 10 March 2021, the Reserve Bank announced that it would be removing some of the temporary liquidity facilities put in place during
the COVID-19 pandemic. The TAF was removed on 16 March 2021.
From 26 May 2020, for a period of six months, the Reserve Bank made available a Term Lending Facility (‘TLF’), to offer loans for a fixed term of three
years at the rate of the Official Cash Rate, with access to the funds linked to banks’ lending under the Scheme. On 20 August 2020, the Reserve Bank
announced it would extend the availability of the TLF to 1 February 2021 with loans for a term of five years. In December 2020, the Reserve Bank
announced that it would extend the window for the TLF to 28 July 2021.
On 11 November 2020, the Reserve Bank announced that additional stimulus would be provided through a Funding for Lending Programme (‘FLP’),
commencing in December 2020. The FLP provides funding to banks at the prevailing OCR for a term of three years, secured by high quality
collateral. The size of funding available under the FLP includes an initial allocation of 4% of each bank’s total loans and advances to New Zealand
households, private non-financial businesses, and non-profit institutions serving households (eligible loans). A conditional additional allocation of
up to 2% of eligible loans is also available, subject to growth in eligible loans, for a total size of up to 6% of eligible loans. The FLP commenced on 7
December 2020 and runs until 6 June 2022 for the initial allocations, and until 6 December 2022 for the additional allocations. The FLP term sheet is
available on the Reserve Bank’s website. During the six months ended 31 March 2021, Banking Group has drawn down $1,000 million under the FLP.

Registered bank disclosures
Unaudited
Unaudited
26 Westpac New Zealand Limited
i.General information (continued)
AUSTRAC proceedings issued against the Ultimate Parent Bank resolved
On 20 November 2019, the Australian Transaction Reports and Analysis Centre (AUSTRAC), the Australian financial crime regulator, commenced
civil proceedings in the Federal Court of Australia (Federal Court) against the Ultimate Parent Bank in relation to alleged contraventions of the Anti-
Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) (AUSTRAC proceedings). The AUSTRAC proceedings were resolved by
agreement in September 2020 and the settlement was approved by the Federal Court on 21 October 2020. Pursuant to the agreement, the parties
filed a Statement of Agreed Facts and Admissions with the Federal Court, and the Ultimate Parent Bank paid a civil penalty of A$1.3 billion and
AUSTRAC’s legal costs of A$3.75 million.
As previously disclosed, following the commencement of the AUSTRAC proceedings, the Australian Securities and Investments Commission (ASIC)
and Australian Prudential Regulation Authority (APRA) each commenced investigations in relation to matters connected with the AUSTRAC
proceedings. On 23 December 2020, ASIC informed the Ultimate Parent Bank that it had concluded its investigation and that it did not intend to take
any enforcement action against the Ultimate Parent Bank or any individuals in connection with the investigation. On 12 March 2021, APRA also
announced that it had closed its investigation.
The Ultimate Parent Bank is defending a class action proceeding which was commenced in December 2019 in the Federal Court on behalf of certain
investors who acquired an interest in the Ultimate Parent Bank securities between 16 December 2013 and 19 November 2019. The proceeding
involves allegations relating to market disclosure issues connected to the Ultimate Parent Bank’s monitoring of financial crime over the relevant
period and matters which were the subject of the AUSTRAC proceedings. The damages sought are unspecified. However, given the time period in
question and the nature of the claims, it is likely any alleged damages will be significant.
Review of the Reserve Bank of New Zealand Act 1989
A review of the Reserve Bank of New Zealand Act 1989 was announced in 2017. In April 2021 Cabinet made the decision to adopt the final measures
resulting from this review, including the introduction of a deposit insurance scheme. New legislation is expected to be introduced in late 2021 that
will create a single regulatory regime for banks and non-bank deposit takers, and introduce a deposit insurance scheme to protect up to $100,000
per depositor, per institution in the event of a failure. The deposit insurance scheme is expected to take effect in 2023.
Reserve Bank Capital Review
On 5 December 2019, the Reserve Bank announced changes to the capital adequacy framework that applies to New Zealand incorporated registered
banks (including the Bank). The new framework includes the following key components:
Increasing total capital requirements from 10.5% of risk weighted assets ('RWA') to 18% for systemically important banks (including the Bank)
and 16% for all other banks;
Setting a Tier 1 capital requirement of 16% of RWA for systemically important banks and 14% for all other banks;
Additional Tier 1 capital (‘AT1’) can comprise no more than 2.5% of the 16% Tier 1 capital requirement;
Eligible Tier 1 capital will comprise common equity and redeemable perpetual preference shares. Existing AT1 instruments will be phased out
over a seven-year period;
Maintaining the existing Tier 2 capital requirement of 2% of RWA; and
Recalibrating RWA for internal rating based banks, such as the Bank, such that aggregate RWA will increase to approximately 90% of
standardised RWA.
In response to the impacts of COVID-19, and to support credit availability, the Reserve Bank has delayed the start date of increases in the required
level of bank capital until 1 July 2022, but with the new definitions of eligible capital coming into effect on 1 October 2021. Banks will be given up to
seven years to comply with the new capital requirements.
Chief Executive Officer (‘CEO’) to retire
On 3 May 2021, the Bank’s CEO, David McLean, announced he will be retiring. David McLean will remain in the role until 25 June 2021, after which
time Simon Power, General Manager Institutional & Business Banking, will act as CEO, subject to regulatory approval, while a global search is
completed.

Registered bank disclosures
Unaudited
Unaudited
Westpac New Zealand Limited 27
ii.Additional financial disclosures
Additional information on balance sheet
THE BANKING GROUP
31 Mar 2130 Sep 20
$ millions
Unaudited Audited
Interest earning and discount bearing assets 105,552 100,915
Interest and discount bearing liabilities 84,130 82,099
Total amounts due from related entities 1,624 1,094
Total amounts due to related entities 3,670 4,099
Financial assets pledged as collateral
The Banking Group is required to provide collateral to other financial institutions, as part of standard terms, to secure liabilities. In addition to assets
supporting the CB Programme disclosed in Note 5, the carrying value of these financial assets pledged as collateral is:
THE BANKING GROUP
31 Mar 2130 Sep 20
$ millions
UnauditedAudited
Cash 333 148
Securities pledged under repurchase agreements:
Investment securities
1
190 204
Residential mortgage-backed securities
2
1,199 -
Total amount pledged to secure liabilities (excluding CB Programme) 1,722 352
1
As at 31 March 2021, $91 million of investment securities were pledged as collateral to the New Zealand Branch of the Ultimate Parent Bank, which is recorded within
due to related entities on the balance sheet (30 September 2020: $204 million) and $99 million of investment securities were pledged to third parties which is recorded
within other financial liabilities on the balance sheet (30 September 2020: nil).
2
During the six months ended 31 March 2021, the Banking Group has undertaken repurchase agreements with the Reserve Bank, under the Funding for Lending
Programme, using residential mortgage-backed securities. The repurchase cash amount at 31 March 2021 is $1,000 million, which is recorded within other financial
liabilities on the balance sheet, with underlying securities to the value of $1,199 million provided under the arrangement.

Registered bank disclosures
Unaudited
Unaudited
28 Westpac New Zealand Limited
ii.Additional financial disclosures (continued)
Additional information on concentrations of credit risk
THE BANKING GROUP
$ millions31 Mar 21
On-balance sheet credit exposures consists of
Cash and balances with central banks 6,126
Collateral paid 333
Trading securities and financial assets measured at FVIS 2,233
Derivative financial instruments 240
Investment securities 4,933
Loans 90,555
Other financial assets 247
Due from related entities 1,624
Total on-balance sheet credit exposures 106,291
Analysis of on-balance sheet credit exposures by industry sector
Accommodation, cafes and restaurants 468
Agriculture 9,389
Construction 551
Finance and insurance 4,842
Forestry and fishing 472
Government, administration and defence 12,333
Manufacturing 1,633
Mining 182
Property 7,963
Property services and business services 1,232
Services 1,870
Trade 1,664
Transport and storage 1,156
Utilities 1,508
Retail lending 59,751
Subtotal 105,014
Provisions for ECL (492)
Due from related entities 1,624
Other financial assets 145
Total on-balance sheet credit exposures 106,291
Off-balance sheet credit exposures consists of
Credit risk-related instruments 28,718
Total off-balance sheet credit exposures 28,718
Analysis of off-balance sheet credit exposures by industry sector
Accommodation, cafes and restaurants 90
Agriculture 744
Construction 500
Finance and insurance 2,123
Forestry and fishing 199
Government, administration and defence 856
Manufacturing 1,611
Mining 102
Property 1,311
Property services and business services 748
Services 1,085
Trade 2,021
Transport and storage 989
Utilities 1,895
Retail lending 14,444
Total off-balance sheet credit exposures 28,718
Australian and New Zealand Standard Industrial Classification ('ANZSIC') has been used as the basis for disclosing industry sectors.

Registered bank disclosures
Unaudited
Unaudited
Westpac New Zealand Limited 29
ii.Additional financial disclosures (continued)
Additional information on concentrations of funding
THE BANKING GROUP
$ millions31 Mar 21
Funding consists of
Collateral received 216
Deposits and other borrowings 77,345
Other financial liabilities
1
1,099
Debt issues
2
15,853
Due to related entities
3
791
Loan capital 2,623
Total funding 97,927
Analysis of funding by geographical area
2
New Zealand 81,272
Australia 780
United Kingdom 6,597
United States of America 3,853
China 2,969
Other 2,456
Total funding 97,927
Analysis of funding by industry sector
Accommodation, cafes and restaurants 511
Agriculture 1,669
Construction 2,404
Finance and insurance 35,242
Forestry and fishing 184
Government, administration and defence 3,491
Manufacturing 2,272
Mining 80
Property services and business services 7,329
Services 4,964
Trade 2,025
Transport and storage 754
Utilities 980
Households 31,154
Other
4
4,077
Subtotal 97,136
Due to related entities
3
791
Total funding 97,927
1
Other financial liabilities, as presented above, are in respect of repurchase agreements.
2
The geographic region used for debt issues is based on the nature of the debt programmes. The nature of the debt programmes is used as a proxy for the location
of the original purchaser. Where the nature of the debt programmes does not necessarily represent an appropriate proxy, the debt issues are classified as 'Other’.
These instruments may have subsequently been on-sold.
3
Amounts due to related entities, as presented above, are in respect of deposits and borrowings and exclude amounts which relate to derivative financial
instruments and other liabilities.
4
Includes deposits from non-residents.
ANZSIC has been used as the basis for disclosing industry sectors.

Registered bank disclosures
Unaudited
Unaudited
30 Westpac New Zealand Limited
ii.Additional financial disclosures (continued)
Additional information on interest rate sensitivity
The following table presents a breakdown of the earlier of the contractual repricing or maturity dates of the Banking Group’s net asset position as at 31
March 2021. The Banking Group uses this contractual repricing information as a base, which is then altered to take account of customer behaviour, to
manage its interest rate risk.
THE BANKING GROUP
31 Mar 21
Over 3Over 6Over 1
Months
and
Months
and
Year andNon-
Up to 3Up to 6Up toUp toOverinterest
$ millionsMonthsMonths1 Year2 Years2 YearsBearingTotal
Financial assets
Cash and balances with central banks5,855----2716,126
Collateral paid333-----333
Trading securities and financial assets measured at FVIS1,503498232---2,233
Derivative financial instruments-----240240
Investment securities487241552054,062-4,933
Loans44,4939,59521,9499,9414,886(309)90,555
Other financial assets-----247247
Due from related entities1,334----2901,624
Total financial assets54,00510,11722,33610,1468,948739106,291
Non-financial assets1,303
Total assets107,594
Financial liabilities
Collateral received216-----216
Deposits and other borrowings47,5748,6185,95297651613,70977,345
Other financial liabilities1,099----2251,324
Derivative financial instruments-----378378
Debt issues6,5531,5392863,0394,3488815,853
Due to related entities 791----2561,047
Loan capital2,623-----2,623
Total financial liabilities58,85610,1576,2384,0154,86414,65698,786
Non-financial liabilities572
Total liabilities99,358
On-balance sheet interest rate repricing gap(4,851)(40)16,0986,1314,084
Net derivative notional principals
Net interest rate contracts (notional):
Receivable/(payable)18,257(4,031)(14,444)14078
Net interest rate repricing gap13,406(4,071)1,6546,2714,162

Registered bank disclosures
Unaudited
Unaudited
Westpac New Zealand Limited 31
ii.Additional financial disclosures (continued)
Additional information on liquidity risk
Contractual maturity of financial liabilities
The following table presents cash flows associated with financial liabilities, payable at the balance sheet date, by remaining contractual maturity. The
amounts disclosed in the table are the future contractual undiscounted cash flows, whereas the Banking Group manages inherent liquidity risk based on
expected cash flows.
Cash flows associated with these financial liabilities include both principal payments, as well as fixed or variable interest payments incorporated into the
relevant coupon period. Principal payments reflect the earliest contractual maturity date. Derivative financial instruments designated for hedging
purposes are expected to be held for their remaining contractual lives, and reflect gross cash flows over the remaining contractual term.
Derivatives held for trading and certain liabilities classified in “Other financial liabilities” which are measured at FVIS are not managed for liquidity
purposes on the basis of their contractual maturity, and accordingly these liabilities are presented in either the on demand or up to 1 month columns.
Only the liabilities that the Banking Group manages based on their contractual maturity are presented on a contractual undiscounted basis in the
following table.
THE BANKING GROUP
31 Mar 21
OverOver
1 Month3 MonthsOver 1
Year
OnUp toand Up toand Up toand Up toOver
$ millions
Demand1 Month3 Months1 Year5 Years5 YearsTotal
Financial liabilities
Collateral received-216----216
Deposits and other borrowings44,5255,08711,75814,6971,544-77,611
Other financial liabilities-189--1,008-1,197
Derivative financial instruments:
Held for trading 1-----1
Held for hedging purposes (net settled)-9152348-95
Held for hedging purposes (gross settled):
Cash outflow-3162,7332,379-5,131
Cash inflow--(7)(2,473)(2,266)-(4,746)
Debt issues-1,0041,7795,4607,60036716,210
Due to related entities:
Non-derivative balances59310952-67-821
Derivative financial instruments:
Held for trading 39-----39
Held for hedging purposes (net settled)-16407259-187
Held for hedging purposes (gross settled):
Cash outflow---161-62
Cash inflow---(1)(59)-(60)
Loan capital--9271,2771,5002,813
Total undiscounted financial liabilities45,1586,63313,66220,53911,7181,86799,577
Total contingent liabilities and commitments
Letters of credit and guarantees806-----806
Commitments to extend credit27,912-----27,912
Total undiscounted contingent liabilities and
commitments
28,718-----28,718

Registered bank disclosures
Unaudited
Unaudited
32 Westpac New Zealand Limited
ii.Additional financial disclosures (continued)
Liquid assets
The following table shows the Banking Group’s holding of liquid assets. Liquid assets include high quality assets readily convertible to cash to
meet the Banking Group’s liquidity requirements. In management’s opinion, liquidity is sufficient to meet the Banking Group’s present
requirements.
THE BANKING GROUP
$ millions31 Mar 21
Cash and balances with central banks 6,126
Interbank lending 32
Receivables due from the Ultimate Parent Bank 805
Supranational securities 1,072
NZ Government securities 3,435
NZ public securities 2,235
NZ corporate securities 234
Residential mortgage-backed securities 8,756
Total liquid assets 22,695
Reconciliation of mortgage-related amounts
The following table provides the Banking Group’s reconciliation between any amounts disclosed in this Disclosure Statement that relate to
mortgages on residential property.
THE BANKING GROUP
$ millions31 Mar 21
Residential mortgages - total gross loans (as disclosed in Note 5 and Section iii.) 58,290
Reconciling items:
Unamortised deferred fees and expenses (224)
Fair value hedge adjustments (29)
Value of undrawn commitments and other off-balance sheet amounts relating to residential mortgages 11,377
Undrawn at default
1
(2,862)
Residential mortgages by LVR (as disclosed in Additional mortgage information in Section iv.)
66,552
Accrued interest receivable 52
Partial write-offs 4
Residential mortgages - EAD (as disclosed in Credit risk exposures by asset class in Section iv.)
66,608
1
Estimate of the amount of committed exposure not expected to be drawn by the customer at the time of default.
iii.Asset quality
Past due assets
THE BANKING GROUP
31 Mar 21
Residential
$ millionsMortgagesOther RetailCorporateOtherTotal
Past due but not individually impaired assets
Less than 30 days past due84410521941,172
At least 30 days but less than 60 days past due1472839-214
At least 60 days but less than 90 days past due91142-107
At least 90 days past due1873539-261
Total past due but not individually impaired assets1,26918229941,754

Registered bank disclosures
Unaudited
Unaudited
Westpac New Zealand Limited 33
iii.Asset quality (continued)
Movements in components of loss allowance
Refer to Note 6 for movements in the components for loss allowance on loans and credit commitment for total exposure. The provisions for ECL
on loans and credit commitments can be further disaggregated into the following types of credit exposures:
THE BANKING GROUP
PerformingNon-performing
Stage 1Stage 2Stage 3Stage 3
$ millions
CAPCAPCAPIAP
Total
Residential mortgages
Provision for ECL as at 30 September 2020 49 123 70 6 248
Due to changes in credit quality:
Transfers to Stage 1 24 (18) (6) - -
Transfers to Stage 2 (3) 40 (37) - -
Transfers to Stage 3 CAP - (4) 5 (1) -
Transfers to Stage 3 IAP - - (1) 1 -
Reversals of previously recognised impairment charges - - - (2) (2)
New financial assets originated 4 - - - 4
Financial assets derecognised during the period (3) (5) (8) - (16)
Changes in CAP due to amounts written off - - - - -
Other charges/(credits) to the income statement (24) (22) 28 2 (16)
Total charges/(credits) to the income statement for ECL (2) (9) (19) - (30)
Amounts written off from IAP - - - - -
Total provision for ECL on loans and credit commitments as
at 31 March 2021
47 114 51 6 218
Other retail
Provision for ECL as at 30 September 2020 28 81 31 3 143
Due to changes in credit quality:
Transfers to Stage 1 46 (43) (3) - -
Transfers to Stage 2 (4) 17 (13) - -
Transfers to Stage 3 CAP - (14) 15 (1) -
Transfers to Stage 3 IAP - - - - -
Reversals of previously recognised impairment charges - - - (1) (1)
New financial assets originated 2 - - - 2
Financial assets derecognised during the period (2) (10) (3) - (15)
Changes in CAP due to amounts written off - - (18) - (18)
Other charges/(credits) to the income statement (47) 36 18 1 8
Total charges/(credits) to the income statement for ECL (5) (14) (4) (1) (24)
Amounts written off from IAP - - - (1) (1)
Total provision for ECL on loans and credit commitments as
at 31 March 2021
23 67 27 1 118
Corporate
Provision for ECL as at 30 September 2020 39 156 6 65 266
Due to changes in credit quality:
Transfers to Stage 1 3 (3) - - -
Transfers to Stage 2 (1) 3 (2) - -
Transfers to Stage 3 CAP - (1) 1 - -
Transfers to Stage 3 IAP - (1) - 1 -
Reversals of previously recognised impairment charges - - - (2) (2)
New financial assets originated 4 - - - 4
Financial assets derecognised during the period (2) (6) - - (8)
Changes in CAP due to amounts written off - - - - -
Other charges/(credits) to the income statement (8) (49) 4 8 (45)
Total charges/(credits) to the income statement for ECL (4) (57) 3 7 (51)
Amounts written off from IAP - - - (13) (13)
Total provision for ECL on loans and credit commitments as
at 31 March 2021
35 99 9 59 202
The above movements in components of loss allowance table does not include ‘Other’ credit exposures on the basis that the provision for ECL is
nil.

Registered bank disclosures
Unaudited
Unaudited
34 Westpac New Zealand Limited
iii.Asset quality (continued)
Impacts of changes in gross financial assets on loss allowances - total
Refer to Note 6 for the impacts of changes in gross financial assets on loss allowances. The following table further explains how changes in gross
carrying amounts of loans during the period have contributed to changes in the provisions for ECL on loans.
THE BANKING GROUP
31 Mar 21
Unaudited
Performing Non-performing
Stage 1Stage 2Stage 3Stage 3
$ millions
CAPCAPCAPIAP
Total
Total gross carrying amount as at 30 September 2020 80,836 7,023 572 129 88,560
Transfers:
Transfers to Stage 1 2,075 (2,019) (55) (1) -
Transfers to Stage 2 (2,272) 2,506 (234) - -
Transfers to Stage 3 CAP (95) (257) 361 (9) -
Transfers to Stage 3 IAP - (2) (9) 11 -
Net further lending/(repayment) (1,670) (465) (15) 5 (2,145)
New financial assets originated 11,735 - - - 11,735
Financial assets derecognised during the period (6,543) (451) (65) (12) (7,071)
Amounts written-off - - (18) (14) (32)
Total gross carrying amount as at 31 March 2021 84,066 6,335 537 109 91,047
Provision for ECL as at 31 March 2021 (87) (252) (87) (66) (492)
Total net carrying amount as at 31 March 2021 83,979 6,083 450 43 90,555

Registered bank disclosures
Unaudited
Unaudited
Westpac New Zealand Limited 35
iii.Asset quality (continued)
Impacts of changes in gross financial assets on loss allowances – by types of credit exposure
The gross carrying amounts of loans can be further disaggregated into the following types of credit exposures:
THE BANKING GROUP
PerformingNon-performing
Stage 1Stage 2Stage 3Stage 3
Total
$ millions
CAPCAPCAPIAP
Residential mortgages
Total gross carrying amount as at 30 September 2020 50,660 4,079 455 18 55,212
Transfers:
Transfers to Stage 1 1,254 (1,205) (48) (1) -
Transfers to Stage 2 (1,318) 1,517 (199) - -
Transfers to Stage 3 CAP (70) (171) 248 (7) -
Transfers to Stage 3 IAP - - (8) 8 -
Net further lending/(repayment) (1,306) (39) (4) (1) (1,350)
New financial assets originated 8,433 - - - 8,433
Financial assets derecognised during the period (3,693) (258) (53) (1) (4,005)
Amounts written-off - - - - -
Total gross carrying amount as at 31 March 2021 53,960 3,923 391 16 58,290
Provision for ECL as at 31 March 2021 (42) (112) (51) (6) (211)
Total net carrying amount as at 31 March 2021 53,918 3,811 340 10 58,079
Other retail
Total gross carrying amount as at 30 September 2020 2,870 355 71 3 3,299
Transfers:
Transfers to Stage 1 305 (299) (6) - -
Transfers to Stage 2 (279) 299 (20) - -
Transfers to Stage 3 CAP (8) (56) 66 (2) -
Transfers to Stage 3 IAP - - (1) 1 -
Net further lending/(repayment) (134) 60 (12) 1 (85)
New financial assets originated 278 - - - 278
Financial assets derecognised during the period (206) (31) (10) - (247)
Amounts written-off - - (18) (1) (19)
Total gross carrying amount as at 31 March 2021 2,826 328 70 2 3,226
Provision for ECL as at 31 March 2021 (17) (59) (27) (1) (104)
Total net carrying amount as at 31 March 2021 2,809 269 43 1 3,122
Corporate
Total gross carrying amount as at 30 September 2020 27,214 2,589 46 108 29,957
Transfers:
Transfers to Stage 1 469 (468) (1) - -
Transfers to Stage 2 (626) 641 (15) - -
Transfers to Stage 3 CAP (17) (30) 47 - -
Transfers to Stage 3 IAP - (2) - 2 -
Net further lending/(repayment) (221) (509) 1 5 (724)
New financial assets originated 2,983 - - - 2,983
Financial assets derecognised during the period (2,603) (137) (2) (11) (2,753)
Amounts written-off - - - (13) (13)
Total gross carrying amount as at 31 March 2021 27,199 2,084 76 91 29,450
Provision for ECL as at 31 March 2021 (28) (81) (9) (59) (177)
Total net carrying amount as at 31 March 2021 27,171 2,003 67 32 29,273
The above gross carrying amount table does not include 'Other' credit exposures (refer to Note 5) on the basis that the provision for ECL is nil.

Registered bank disclosures
Unaudited
Unaudited
36 Westpac New Zealand Limited
iii.Asset quality (continued)
Other asset quality information
THE BANKING GROUP
31 Mar 21
Residential
$ millionsMortgagesOther RetailCorporateOtherTotal
Undrawn commitments with individually impaired counterparties126-9
Other assets under administration-----
iv.Capital adequacy under the internal models based approach, and regulatory liquidity ratios
The information contained in this note has been derived in accordance with the Banking Group’s conditions of registration which relate to capital
adequacy and the Reserve Bank Capital Adequacy Framework (Internal Models Based Approach) (‘BS2B’), except for the matters of non-compliance
with condition of registration 1B disclosed on page 49. The Bank considers its internal credit model methodologies result in the retention of an
appropriate amount of capital to reflect its credit risk and any effect of the non-compliance with its condition of registration 1B on the information
relating to capital adequacy is not considered by the Bank to be material.
The Banking Group maintains an actively managed capital base to cover risks inherent in the business. The adequacy of the Banking Group’s capital
is monitored using, among other measures, the rules and ratios established by the Basel Committee on Banking Supervision (‘BCBS’) and adopted
by the Reserve Bank in supervising the Banking Group.
The Banking Group’s capital summary
THE BANKING GROUP
$ millions
31 Mar 21
Tier 1 capital
Common Equity Tier 1 capital
Paid-up ordinary shares issued by the Bank plus related share premium 7,300
Retained earnings (net of appropriations) 951
Accumulated other comprehensive income and other disclosed reserves
1
(15)
Less deductions from Common Equity Tier 1 capital
Goodwill (477)
Other intangible assets
2
(185)
Cash flow hedge reserve (2)
Deferred tax asset deduction (218)
Expected loss excess over eligible allowance (39)
Total Common Equity Tier 1 capital 7,315
Additional Tier 1 capital
Additional Tier 1 capital instruments
3
1,500
Total additional Tier 1 capital 1,500
Total Tier 1 capital 8,815
Tier 2 capital
Tier 2 capital instruments
3
1,133
Revaluation reserves -
Eligible impairment allowance in excess of expected loss -
Total Tier 2 capital 1,133
Total capital 9,948
1
Accumulated other comprehensive income and other disclosed reserves consist of investment securities reserve and cash flow hedge reserve as disclosed as
reserves on the balance sheet.
2
Includes capitalised transaction costs on loan capital and debt issues.
3
Classified as a liability under Generally Accepted Accounting Practice and excludes capitalised transaction costs. Additional Tier 1 capital instruments and Tier 2
capital instruments are itemised on pages 37 and 38. Further details on convertibility for Additional Tier 1 and Tier 2 capital instruments are noted under the
‘Conversion’ section.

Registered bank disclosures
Unaudited
Unaudited
Westpac New Zealand Limited 37
iv.Capital adequacy under the internal models based approach, and regulatory liquidity ratios (continued)
Capital structure
Ordinary shares
In accordance with BS2B, ordinary share capital is classified as Common Equity Tier 1 capital.
The ordinary shares have no par value. Subject to the constitution of the Bank, each ordinary share of the Bank carries the right to one vote on a poll
at meetings of shareholders, the right to an equal share in dividends authorised by the Board and the right to an equal share in the distribution of the
surplus assets of the Bank in the event of liquidation.
Additional Tier 1 loan capital
A summary of the key terms and features of the Additional Tier 1 loan capital (‘AT1 notes’) is provided below:
$Issue dateCounterpartyInterest rateOptional redemption date
NZ$1,500 million
notes
1
22 September 2017NZ Branch of the
Ultimate Parent Bank
NZ 90 day bank bill rate + 3.9594% p.a.21 September 2027 and every fifth
anniversary thereafter
1

The AT1 notes were issued by the Bank and rank equally amongst themselves and are subordinated to the claims of depositors and senior or less subordinated creditors
of the Bank.
Interest payable
Quarterly interest payments on the AT1 notes are at the absolute discretion of the Bank and will only be paid if the payment conditions are satisfied,
including that the interest payment will not result in the Bank becoming insolvent immediately following the interest payment; not result in a breach of
the Reserve Bank Prudential Standards; and the payment date not falling on the date of a capital trigger event or non-viability trigger event. Interest
payments are non-cumulative. If interest is not paid in full, the Bank may not determine or pay any dividends on its ordinary shares or undertake a
discretionary buy back or capital reduction of the Bank’s ordinary shares (except in limited circumstances).
Redemption
The Bank may elect to redeem all or some of the AT1 notes for their face value on 21 September 2027 and every fifth anniversary thereafter, subject to
the Reserve Bank’s prior written approval. Early redemption of all of the AT1 notes for certain tax or regulatory reasons is permitted subject to the
Reserve Bank’s prior written approval.
Conversion
If a capital trigger event or non-viability trigger event occurs, the Bank must convert some or all of the AT1 notes into a variable number of ordinary
shares issued by the Bank (calculated with reference to the net assets of the Bank and the total number of ordinary shares on issue at the conversion
date) that is sufficient, in the case of a capital trigger event, to return the Bank’s Common Equity Tier 1 capital ratio to above 5.125% as determined by
the Bank in consultation with the Reserve Bank; or, in the case of a non-viability trigger event, to satisfy the direction of the Reserve Bank or the
decision of the statutory manager of the Bank. A capital trigger event occurs when the Bank determines, or the Reserve Bank notifies in writing that it
believes, the Bank’s Common Equity Tier 1 Capital ratio is equal to or less than 5.125%. A non-viability trigger event occurs when the Reserve Bank or
the statutory manager (appointed pursuant to section 117 of the Reserve Bank Act) directs the Bank to convert or write off all or some of its AT1 notes.
If conversion of the AT1 notes does not occur within five business days of a capital trigger event or a non-viability trigger event, holders’ rights in
relation to the AT1 notes will be immediately and irrevocably terminated.
The Bank is able to elect to convert all the AT1 notes for certain tax or regulatory reasons (or in certain other circumstances).

Registered bank disclosures
Unaudited
Unaudited
38 Westpac New Zealand Limited
iv.Capital adequacy under the internal models based approach, and regulatory liquidity ratios (continued)
Tier 2 loan capital
A summary of the key terms and features of the Tier 2 loan capital (‘Tier 2 notes’) is provided below.
$Issue dateCounterpartyInterest rateMaturity DateOptional redemption date
AU$1,040 million
notes
1
8 September 2015London Branch of the
Ultimate Parent Bank
Australian 90 day bank
bill rate + 2.87% p.a.
22 March 202622 June 2021 and every
quarterly interest payment date
thereafter
1
The Tier 2 notes were issued by the Bank and rank equally amongst themselves and are subordinated to the claims of depositors and senior or less subordinated creditors
of the Bank.
Interest payable
Interest payments on the Tier 2 notes are subject to the Bank being solvent at the time of, and immediately following the interest payment.
Early redemption
The Bank may elect to redeem all or some of the Tier 2 notes for their face value together with accrued interest (if any) on 22 June 2021 or any interest
payment date thereafter, subject to the Reserve Bank’s prior written approval. Early redemption of all of the Tier 2 notes for certain tax or regulatory
reasons is permitted on an interest payment date subject to the Reserve Bank’s prior written approval.
Conversion
If a non-viability trigger event occurs, the Bank must convert such number of the Tier 2 notes into a variable number of ordinary shares issued by the
Bank (calculated with reference to the net assets of the Bank and the total number of ordinary shares on issue on the conversion date) that is sufficient
to satisfy the direction of the Reserve Bank or the decision of the statutory manager. A non-viability trigger event occurs when the Reserve Bank or the
statutory manager (appointed pursuant to section 117 of the Reserve Bank Act) directs the Bank to convert or write off all or some of its Tier 2 notes. If
conversion of the Tier 2 notes fails to take effect within five business days, holders’ rights in relation to the Tier 2 notes will be immediately and
irrevocably terminated.
Reserves
Investment securities reserve
This comprises the changes in the fair value of debt securities measured at FVOCI (except for interest income, impairment charges and foreign
exchange gains and losses which are recognised in the income statement), net of any related hedge accounting adjustments and tax. These changes
are transferred to non-interest income in the income statement when the asset is disposed.
Cash flow hedge reserve
This comprises the fair value gains and losses associated with the effective portion of designated cash flow hedging instruments, net of tax.

Registered bank disclosures
Unaudited
Unaudited
Westpac New Zealand Limited 39
iv.Capital adequacy under the internal models based approach, and regulatory liquidity ratios (continued)
Credit risk subject to the Internal Rating Based (‘IRB’) approach
Credit risk exposures by asset class
The Banking Group’s credit risk exposures by asset class as at 31 March 2021
Exposure-Minimum
WeightedExposure-weightedRisk-Pillar 1
AverageweightedRiskweightedCapital
PDEADLGDWeightAssets
1
Requirement
Exposure-weighted PD Grade (%)%$ millions%%$ millions$ millions
Residential mortgages
Up to and including 0.10
------
Over 0.10 up to and including 0.50
0.4728,59614.8812.073,659292
Over 0.50 up to and including 1.0
0.7024,89621.8623.766,270502
Over 1.0 up to and including 2.5
1.5211,80122.7843.865,486439
Over 2.5 up to and including 10.0
3.9390627.2798.4994576
Over 10.0 up to and including 99.99
------
Default100.0040921.59118.8751641
Total1.4066,60819.1023.9016,8761,350
Other retail
Up to and including 0.10
0.0581546.456.84595
Over 0.10 up to and including 0.50
0.1985054.4221.2219115
Over 0.50 up to and including 1.0
0.5427355.1341.3912010
Over 1.0 up to and including 2.5
1.8462869.0185.0456545
Over 2.5 up to and including 10.0
5.6650972.46108.8758847
Over 10.0 up to and including 99.99
21.9111079.92166.3119516
Default100.003183.0753.27181
Total3.083,21659.3250.911,736139
Small business
Up to and including 0.10
0.102321.635.371-
Over 0.10 up to and including 0.50
0.341,15725.4414.3217614
Over 0.50 up to and including 1.0
0.9172931.0330.2823419
Over 1.0 up to and including 2.5
1.8340826.9834.0314712
Over 2.5 up to and including 10.0
4.6717829.8443.82837
Over 10.0 up to and including 99.99
14.602335.2567.75171
Default100.004831.23291.5414912
Total3.052,56627.7429.6780765
1
The value of the scalar used in determining the risk weighted assets is 1.06 as required by the conditions of registration.

Registered bank disclosures
Unaudited
Unaudited
40 Westpac New Zealand Limited
iv.Capital adequacy under the internal models based approach, and regulatory liquidity ratios (continued)
Exposure-Minimum
WeightedExposure-weightedRisk-Pillar 1
AverageweightedRiskweightedCapital
PDEADLGDWeightAssets
1
Requirement
Exposure-weighted PD Grade (%)%$ millions%%$ millions$ millions
Corporate/Business lending
Up to and including 0.04
0.034,67343.9721.791,07986
Over 0.04 up to and including 0.10
0.074,04949.0029.281,257101
Over 0.10 up to and including 0.40
0.227,99943.9839.103,315265
Over 0.40 up to and including 3.0
1.2615,29732.6463.2510,256820
Over 3.0 up to and including 10.0
4.7867334.85103.7874159
Over 10.0 up to and including 99.0
21.961,10438.26188.012,200176
Default100.0016746.97179.7231926
Total1.9333,96239.1253.2419,1671,533
Sovereign
Up to and including 0.04
0.0110,2716.801.2313411
Over 0.04 up to and including 0.10
------
Over 0.10 up to and including 0.40
------
Over 0.40 up to and including 3.0
------
Over 3.0 up to and including 10.0
------
Over 10.0 up to and including 99.0
------
Default------
Total0.0110,2716.801.2313411
Bank
Up to and including 0.04
0.032,52817.214.6412410
Over 0.04 up to and including 0.10
0.0545145.6117.43837
Over 0.10 up to and including 0.40
0.177060.0036.20272
Over 0.40 up to and including 3.0
0.702858.3998.30302
Over 3.0 up to and including 10.0
------
Over 10.0 up to and including 99.0
------
Default------
Total0.043,07722.738.1226421
Total credit risk exposures subject to
the internal ratings based approach
119,70038,9843,119
1
The value of the scalar used in determining the risk weighted assets is 1.06 as required by the conditions of registration

Registered bank disclosures
Unaudited
Unaudited
Westpac New Zealand Limited 41
iv.Capital adequacy under the internal models based approach, and regulatory liquidity ratios (continued)
The following table summarises the Banking Group’s credit risk exposures by asset class arising from undrawn commitments and other off-balance
sheet exposures. These unaudited amounts are included in the previous tables.
Undrawn
Commitments and
Other Off-balance Market Related
Sheet Amounts Contracts
$ millions
ValueEADValueEAD
Residential mortgages
11,3778,515--
Other retail
3,0671,769--
Small business
930771--
Corporate/Business lending
11,16411,245--
Sovereign
8989--
Bank
928997--
Total 27,55523,386--
Additional mortgage information
Residential mortgages by loan-to-value ratio (‘LVR’) as at 31 March 2021
LVRs are calculated as the current exposure divided by the Banking Group’s valuation of the associated residential property at origination.
The Banking Group utilises data from its loan system to obtain origination valuations. For loans originated prior to 1 January 2008, or those
originated outside of the loan system, the origination valuation is not recorded in the system and is therefore, due to system limitations, not
available for disclosure. For these loans, the Banking Group utilises the earliest valuation recorded as the closest available alternative to estimate
an origination valuation.
Exposures for which no LVR is available have been included in the ‘Exceeds 90%’ category in accordance with the requirements of the Order.
THE BANKING GROUP
31 Mar 21
Does notExceeds 60%Exceeds 70%Exceeds 80%
LVR range ($ millions)
exceed 60%and not 70%and not 80% and not 90%Exceeds 90%Total
On-balance sheet exposures 25,388 13,841 14,330 3,187 1,291 58,037
Undrawn commitments and other off-balance
sheet exposures 6,062 1,268 859 125 201 8,515
Value of exposures 31,450 15,109 15,189 3,312 1,492 66,552

Registered bank disclosures
Unaudited
Unaudited
42 Westpac New Zealand Limited
iv.Capital adequacy under the internal models based approach, and regulatory liquidity ratios (continued)
Specialised lending subject to the slotting approach
The Banking Group’s specialised lending: Project and property finance credit risk exposures as at 31 March 2021
TotalMinimum
Exposures Risk-Pillar 1
After CreditRiskweightedCapital
Risk MitigationWeightAssets
1
Requirement
On-balance sheet exposures subject to the slotting approach$ millions%$ millions$ millions
Supervisory slotting grade
Strong5,34270.003,963317
Good1,81290.001,729138
Satisfactory160115.0019516
Weak251250.0066553
Default
30---
Total on-balance sheet exposures subject to the slotting approach7,59581.406,552524
1
The value of the scalar used in determining the risk weighted assets is 1.06 as required by the conditions of registration.
Minimum
Risk-Pillar 1
Average RiskweightedCapital
EADWeightAssets
1
Requirement
Off-balance sheet exposures subject to the slotting approach$ millions%$ millions$ millions
Undrawn commitments and other off-balance sheet exposures1,19180.041,01181
Total specialised lending exposures subject to the slotting
approach
8,78681.217,563605
1
The value of the scalar used in determining the risk weighted assets is 1.06 as required by the conditions of registration.
Credit risk exposures subject to the standardised approach
The Banking Group’s credit risk exposures subject to the standardised approach as at 31 March 2021
Calculation of on-balance sheet exposures
Total Minimum
ExposureRisk-Pillar 1
After Credit Average RiskweightedCapital
Risk MitigationWeightExposure
1
Requirement
$ millions%$ millions$ millions
Other assets
2
1,94744.3891673
Total on-balance sheet exposures1,94791673
1
The value of the scalar used in determining the risk weighted assets is 1.06 as required by the conditions of registration.
2
Relate to property and equipment, other assets and related parties.

Registered bank disclosures
Unaudited
Unaudited
Westpac New Zealand Limited 43
iv.Capital adequacy under the internal models based approach, and regulatory liquidity ratios (continued)
Calculation of off-balance sheet exposures
TotalAverageMinimum
Exposure orCreditCreditAverageRisk-Pillar 1
PrincipalConversionEquivalentRiskweightedCapital
AmountFactor AmountWeightExposure
1
Requirement
$ millions%$ millions%$ millions$ millions
Market related contracts subject to the
standardised approach
Foreign exchange contracts13,398N/A54820.00116 9
Interest rate contracts38,506N/A7020.0015 1
Credit value adjustment-N/A--147 12
Total market related contracts subject to the
standardised approach51,904618278 22
Standardised subtotal (on and off-balance sheet)2,5651,194 95
1
The value of the scalar used in determining the risk weighted assets is 1.06 as required by the conditions of registration.
Credit risk mitigation
The Banking Group uses a variety of techniques to reduce the credit risk arising from its lending activities (refer to Note 32.2.2 to the financial
statements included in the Disclosure Statement for the year ended 30 September 2020 for further details). This includes the Banking Group
establishing that it has direct, irrevocable and unconditional recourse to collateral and other credit enhancements through obtaining legally
enforceable documentation.
The Banking Group includes the effect of credit risk mitigation through eligible guarantees within the calculation applied to LGD. Due to system
limitations, the value of the guarantee is not always separately recorded, and therefore, neither this value nor a close alternative is available for
disclosure, under Clause 7 of Schedule 11 to the Order.
Definitions of PD, LGD and EAD
–Probability of default (‘PD’)
The PD is a through-the-cycle assessment of the likelihood of a customer defaulting on its financial obligations within one year.
–Loss given default (‘LGD’)
The LGD represents an estimate of the expected severity of a loss to the Banking Group should a customer default occur during an economic
downturn.
–Exposure at default (‘EAD’)
EAD represents an estimate of the amount of committed exposure expected to be drawn by the customer at the time of default.
Equity risk
The Banking Group’s equity exposures as at 31 March 2021
Risk-Minimum Pillar 1
TotalRiskweightedCapital
ExposureWeightExposure
1
Requirement
Equity
$ millions%$ millions$ millions
Equity holdings (not deducted from capital) that are publicly traded-300--
All other equity holdings (not deducted from capital)
3400111
1
The value of the scalar used in determining the risk weighted assets is 1.06 as required by the conditions of registration.

Registered bank disclosures
Unaudited
Unaudited
44 Westpac New Zealand Limited
iv.Capital adequacy under the internal models based approach, and regulatory liquidity ratios (continued)
Operational risk
Operational risk capital requirement
The following table sets out the Banking Group’s implied risk-weighted exposures under the Advanced Measurement Approach (‘AMA’) methodology
and the operational risk capital requirement.
THE BANKING GROUP
31 Mar 21
Implied Risk-
Total Operational Risk
$ millions
weighted Exposure
Capital Requirement
Advanced Measurement Approach
Operational risk 5,024 402
Market risk
The Banking Group’s aggregate market risk exposure is derived in accordance with BS2B and is calculated on a monthly basis. The end-of-period
aggregate market risk exposure is calculated from the period end balance sheet information.
For each category of market risk, the Banking Group’s peak end-of-day aggregate capital charge is derived by determining the maximum over the
six months ended 31 March 2021 of the aggregate capital charge for that category of market risk at the close of each business day derived in
accordance with BS2B.
The following table provides a summary of the Banking Group’s notional capital charges by risk type as at the reporting date and the peak end-of-
day notional capital charges by risk type for the six months ended 31 March 2021:
THE BANKING GROUP
31 Mar 21
$ millions
Implied risk-weighted exposureAggregate capital charge
End-of-period
Interest rate risk 1,755 140
Foreign currency risk- -
Equity risk- -
Peak end-of-day
Interest rate risk 3,706 296
Foreign currency risk- -
Equity risk- -

Registered bank disclosures
Unaudited
Unaudited
Westpac New Zealand Limited 45
iv.Capital adequacy under the internal models based approach, and regulatory liquidity ratios (continued)
Total capital requirements
Banking Group Pillar 1 Total Capital Requirement
THE BANKING GROUP
31 Mar 21
Risk-weighted
Total Exposure
Exposure or
Implied
After Credit
Risk-weightedTotal Capital
$ millions
Risk MitigationExposureRequirement
Credit risk
Exposures subject to the internal ratings based approach119,70038,9843,119
Equity exposures3111
Specialised lending subject to the slotting approach8,7867,563605
Exposures subject to the standardised approach2,5651,19495
Total credit risk

(scaled)
1
131,05447,7523,820
Operational riskN/A5,024402
Market riskN/A1,755140
Total131,05454,5314,362
1
The value of the scalar used in determining the credit risk weighted exposure is 1.06 as required by the conditions of registration.
Capital ratios
The following table is disclosed under the Reserve Bank’s Basel III framework in accordance with Clause 15 of Schedule 11 to the Order and represents
the capital adequacy calculation based on BS2B.
For the purposes of calculating the capital adequacy ratios for the Bank on a solo basis, wholly-owned and wholly-funded subsidiaries of the Banking
Group are consolidated with the Bank. In this context, wholly-funded by the Bank means there are no liabilities (including off-balance sheet obligations)
to anyone other than the Bank, the Inland Revenue or trade creditors, where aggregate exposure to trade creditors does not exceed 5% of the
subsidiary’s shareholder’s equity. Wholly-owned by the Bank means that all equity issued by the subsidiary is held by the Bank or is ultimately owned
by the Bank through a chain of ownership where each entity is 100% owned by its parent.
THE BANKING GROUPTHE BANK
Reserve Bank
Minimum
%
Ratios31 Mar 2131 Mar 2031 Mar 2131 Mar 20
Common Equity Tier 1 capital ratio4.513.411.412.510.6
Tier 1 capital ratio6.016.214.115.013.1
Total capital ratio8.018.215.917.014.8
Buffer ratio2.58.96.9N/AN/A

Registered bank disclosures
Unaudited
Unaudited
46 Westpac New Zealand Limited
iv.Capital adequacy under the internal models based approach, and regulatory liquidity ratios (continued)
Capital for other material risks
The Banking Group’s internal capital adequacy assessment process identifies, reviews and measures additional material risks that must be captured
within the Banking Group’s capital adequacy assessment process. The additional material risks considered are those not captured by Pillar 1 regulatory
capital requirements and include compliance risk, conduct risk, liquidity risk, reputational risk, environmental, social and governance risk, business/
strategic risk, other assets risk, model risk, deferred acquisition cost risk and subsidiary risk.
The Banking Group’s internal capital allocation for ‘other material risks’ is $289 million as at 31 March 2021 (31 March 2020: $264 million).
Ultimate Parent Bank Group Basel III capital adequacy ratios
The following table represents the capital adequacy calculation for the Ultimate Parent Bank and the Ultimate Parent Bank Group based on APRA’s
application of the Basel III capital adequacy framework.
%
31 Mar 2131 Mar 20
Ultimate Parent Bank Group (excluding entities specifically excluded by APRA regulations)
1, 2
Common Equity Tier 1 capital ratio 12.3 10.8
Additional Tier 1 capital ratio 2.2 2.1
Tier 1 capital ratio 14.5 12.9
Tier 2 capital ratio 3.9 3.4
Total regulatory capital ratio 18.4 16.3
Ultimate Parent Bank (Extended Licensed Entity)
1, 3
Common Equity Tier 1 capital ratio 12.6 11.1
Additional Tier 1 capital ratio 2.2 2.2
Tier 1 capital ratio 14.8 13.3
Tier 2 capital ratio 4.0 3.4
Total regulatory capital ratio 18.8 16.7
1
The capital ratios represent information mandated by APRA. The capital ratios of the Ultimate Parent Bank Group are publicly available in the Ultimate Parent Bank
Group’s Pillar 3 report. This information is made available to users via the Ultimate Parent Bank’s website (www.westpac.com.au).
2
Ultimate Parent Bank Group (excluding entities specifically excluded by APRA regulations) comprises the consolidation of the Ultimate Parent Bank and its subsidiary
entities except those entities specifically excluded by APRA regulations for the purposes of measuring capital adequacy (Level 2). The head of the Level 2 group is the
Ultimate Parent Bank.
3
Ultimate Parent Bank (Extended Licensed Entity) comprises the Ultimate Parent Bank and its subsidiary entities that have been approved by APRA as being part of a
single ELE for the purposes of measuring capital adequacy (Level 1).
Under APRA’s Prudential Standards, Australian Authorised Deposit-taking Institutions (‘ADI’), including the Ultimate Parent Bank Group and the
Ultimate Parent Bank are required to maintain minimum ratios of capital to risk weighted assets, as determined by APRA. For the calculation of risk
weighted assets, the Ultimate Parent Bank Group and the Ultimate Parent Bank are accredited by APRA to apply advanced models permitted by the
Basel III global capital adequacy regime. The Ultimate Parent Bank Group and the Ultimate Parent Bank use the Advanced Internal Ratings Based
(‘Advanced IRB’) approach for credit risk, the AMA for operational risk and the internal model approach for interest rate risk in the banking book for
calculating regulatory capital.
APRA’s prudential standards are generally consistent with the International Regulatory Framework for Banks, also known as Basel III, issued by the
BCBS, except where APRA has exercised certain discretions.
The Ultimate Parent Bank Group is required to disclose additional detailed information on its risk management practices and capital adequacy on a
quarterly basis. This information is made available to users via the Ultimate Parent Bank’s website (www.westpac.com.au).
The Ultimate Parent Bank Group (excluding entities specifically excluded by APRA regulations), and the Ultimate Parent Bank (Extended Licensed Entity
as defined by APRA), exceeded the minimum capital adequacy requirements as specified by APRA as at 31 March 2021.

Registered bank disclosures
Unaudited
Unaudited
Westpac New Zealand Limited 47
iv.Capital adequacy under the internal models based approach, and regulatory liquidity ratios (continued)
Regulatory liquidity ratios
The Bank calculates liquidity ratios in accordance with the Reserve Bank document entitled ‘Liquidity Policy’ (‘BS 13’). Ratios are calculated daily and
are part of the Bank’s management of liquidity risk. Quarterly average ratios are produced in line with the Reserve Bank rules and guidance, noting the
matters described below.
THE BANKING GOUP
%
31 Mar 2131 Dec 20
Average for the three months ended
One-week mismatch ratio4.55.3
One-month mismatch ratio3.54.7
Core funding ratio80.982.7
In February 2021, the Bank notified the Reserve Bank of non-compliance with BS13 relating to a coding error in the BS13 liquidity model which
impacted the aggregation of customer deposits. The non-compliance is being remediated by the Bank. The Bank has adjusted the one-week and
one-month mismatch ratios in the table above in respect of the quarters ended 31 December 2020 and 31 March 2021 to reflect the impact of the
non-compliance. The adjustment reduced the one-week and one-month mismatch ratios for the quarter ended 31 December 2020 by 0.4%, the
one-week mismatch ratio for the quarter ended 31 March 2021 by 0.5%, and the one-month mismatch ratio for the quarter ended 31 March 2021 by
0.4%.
In addition, the liquidity ratios for the quarters ended 31 December 2020 and 31 March 2021 are not adjusted to reflect the potential non-compliance
with BS13 identified in the Reserve Bank’s thematic review of compliance with its Liquidity Policy (BS13), as the Reserve Bank’s final determination in
respect of BS13 compliance is pending. Refer to Conditions of Registration section on page 49 for further details. However, with effect from 31 March
2021, the Reserve Bank amended the Bank's conditions of registration to apply an overlay to the Bank's mismatch ratios which will remain in place
until the Reserve Bank is satisfied that its concerns regarding liquidity risk controls have been resolved and sufficient progress has been made to
address the risk culture issues. The overlay is specified by the Reserve Bank as an adjustment to liquid assets of 114 percent (requiring the Bank to
discount the value of its liquid assets by approximately $2.3 billion). Refer to Other material matters on page 25 for further detail.
v.Concentration of credit exposures to individual counterparties
The following credit exposures are based on actual credit exposures to individual counterparties and groups of closely related counterparties.
The number of individual bank and non-bank counterparties to which the Banking Group has an aggregate credit exposure or peak end-of-day aggregate
credit exposure that equals or exceeds 10% of the Banking Group’s Common Equity Tier 1 capital:
THE BANKING GROUP
31 Mar 21
Bank Counterparties
1
Non-bank Counterparties
2
Long-term credit ratingLong-term credit rating
% of Banking Group's Common Equity Tier 1 Capital
A- or A3 and aboveA- or A3 and above
As at 31 March 2021
3
Exceeds 10% and not 15% - 1
Exceeds 15% and not 20% - 1
Peak end-of-day aggregate credit exposure for the six months ended 31 March 2021
3
Exceeds 10% and not 15% - -
Exceeds 15% and not 20% - 2
1
A counterparty is a bank counterparty if it is a bank that is not a member of a group of closely related counterparties or it is a group of closely related counterparties
of which a bank is the parent.
2
A counterparty is a non-bank counterparty if it is a non-bank that is not a member of a group of closely related counterparties or it is a group of closely related
counterparties of which a bank is not the parent.
3
There were no individual bank or non-bank counterparties with aggregate credit exposure that equals or exceeds 10% of the Banking Group’s Common Equity Tier 1
capital and with a long-term credit rating of less than A- or A3, or its equivalent, or unrated.

Registered bank disclosures
Unaudited
Unaudited
48 Westpac New Zealand Limited
v.Concentration of credit exposures to individual counterparties (continued)
The peak end-of-day aggregate credit exposure to each individual counterparty (which are not members of a group of closely related
counterparties) or a group of closely related counterparties has been calculated by determining the maximum end-of-day aggregate amount of
actual credit exposure over the relevant six-month period, and then dividing that amount by the Banking Group’s Common Equity Tier 1 capital as at
31 March 2021.
Credit exposures to individual counterparties (not being members of a group of closely related counterparties) and to groups of closely related
counterparties exclude exposures to connected persons, to the central government or central bank of any country with a long-term credit rating of
A- or A3 or above, or its equivalent, or to any supranational or quasi-sovereign agency with a long-term credit rating of A- or A3 or above, or its
equivalent. These calculations relate only to exposures held in the financial records of the Banking Group and were calculated net of individually
assessed provisions.
vi.Insurance business
The Banking Group does not conduct any insurance business (as that term is defined in the Order).
vii.Risk management policies
Refer to Registered bank disclosures viii. Risk management policies and Note 32. Financial risk included in the Banking Group Disclosure Statement for the
year ended 30 September 2020 for further details on the Banking Group’s risk management policies.
.

Conditions of registration
Westpac New Zealand Limited 49
Material non-compliance with conditions of registration
Reserve Bank Liquidity Review
In August 2019 the Reserve Bank commenced a thematic review of compliance with its Liquidity Policy (BS13). On 29 January 2021, the Reserve
Bank provided the Bank with preliminary review findings in relation to the Bank, including that it considers that there has been potential non-
compliance with BS13 by the Bank. The Reserve Bank has advised that it will provide a final determination in relation to any non-compliance with
BS13 and any consequent non-compliance with the Bank’s conditions of registration, including the materiality of any such non-compliance. Any
material non-compliance with the Bank’s conditions of registration will be disclosed by the Reserve Bank in accordance with its guidance on
reporting by banks of breaches of regulatory requirements and by the Bank in accordance with the Order.
BS2B non-compliance
During the reporting period, the Bank was non-compliant with condition of registration 1B (which requires the Bank to comply with aspects of
BS2B) in relation to the matters disclosed below. The Bank was made aware of these matters prior to 1 January 2021. The Reserve Bank has not
made a determination as to the materiality of the non-compliances for the purposes of any notification under subclause (8)(3)(b)(ii) of Schedule 3
of the Order.
The Bank operated versions of various capital models which were not approved by the Reserve Bank, in some cases since December 2008,
and it failed to meet the Reserve Bank’s requirements in relation to model documentation and associated model documentation policies. On
30 October 2019, the Reserve Bank confirmed its approval of all unapproved models, other than a PD model used for a small number of
corporate exposures. The Bank has submitted this model to the Reserve Bank for approval.
The Bank is not fully compliant with paragraph 4.246 of BS2B in that, with the exception of wholesale property development and investment
customers, non-retail risk grade credit policy overrides are not captured and monitored. A new system to capture relevant non-retail
customer credit data has been built, is in use, and will address this issue.
The Bank is not fully compliant with paragraph 4.248 of BS2B in that not all historical origination data for non-retail customers is maintained
in a format that allows easy accessibility to key data used to derive the original risk rating. A new system to capture relevant non-retail
customer credit data has been built, is in use and will address this issue.
Material non-compliance with CoR22
The Bank did not have in place three separate outsourcing arrangements for adequate support for three key software applications that ensure
high availability of key frontline applications for its retail and business customers, as required by the Reserve Bank’s Outsourcing Policy (BS11).
Specifically:
for a period of three months, it did not have in place an outsourcing arrangement to ensure adequate support services were available for
software used to ensure high availability of key Bank server infrastructure;
for a period of one year, it did not have in place an outsourcing arrangement to ensure adequate support services were available for
database applications that are used to store and retrieve data for critical frontline applications; and
for a period of three years, it did not have in place an outsourcing arrangement to ensure adequate support services were available for
software used to connect users of the Bank’s online services with critical frontline applications.
These support contracts were necessary to ensure the Bank receives an adequate level of technical support for their corresponding software. The
failure to establish these outsourcing arrangements was non-compliant with BS11 and therefore with the Bank’s Condition of Registration 22.
Despite not having adequate support contracts in place, the Bank continued to receive support for the first software application on an informal
basis, and could have acquired support for the second and third software applications on a non-contractual ‘time and materials’ basis. In
addition, the Bank had internal teams in place to provide support in the event of issues arising with the software applications, such that support
contracts would be relied on only where the internal support team could not resolve an issue. There was, therefore, no actual loss of support at
any time.
However, if a critical problem had arisen with the software without the required support contracts in place, then this could have increased the risk
that the Bank may not have been able to restore the relevant services within the Bank’s recovery time objectives. This would, in turn, impact the
Bank’s ability to provide certain services to business and retail customers who are using these services or business applications, such as online
banking, domestic payments and high value international payments. For example, a customer may not be able to log into internet banking or they
may experience issues with the Bank’s website such that transactions were prevented from completing.
Once the non-compliances came to the Bank’s attention, internal investigations took place, and the incidents were reported to the Reserve Bank.
The Bank has now entered into new support agreements for the software applications.

Conditions of registration
50 Westpac New Zealand Limited
Changes to conditions of registration
The Reserve Bank amended the Bank’s conditions of registration during the reporting period:
With effect from 1 March 2021, restrictions on the Bank’s new residential mortgage lending at high loan-to-valuation (‘LVR’) ratios have been
reinstated. LVR restrictions for owner-occupiers have been reinstated to a maximum of 20% of new lending at LVRs above 80% (after
exemptions); and LVR restrictions for investors have been reinstated to a maximum of 5% of new lending at LVRs above 70% (after
exemptions).
With effect from 31 March 2021, an overlay has been applied to the Bank’s mismatch ratios until such time as the Reserve Bank is satisfied
that the Bank’s actions to improve liquidity risk and risk culture is complete and effective.
The Reserve Bank also notified the Bank of changes to its conditions of registration which will take effect after the reporting period:
With effect from 1 May 2021, the Reserve Bank’s Liquidity Policy Annex: Liquid Assets (‘BS13A’) raised Residential Mortgage Backed Securities
(RMBS) eligibility to 5% of total assets for lower levels of asset encumbrance, but constrained eligibility of RMBS at higher levels of asset
encumbrance.
With effect from 1 May 2021, LVR restrictions for owner-occupiers remained at a maximum of 20% of new lending at LVRs above 80% (after
exemptions); and LVR restrictions for investors were further tightened to a maximum of 5% of new lending at LVRs above 60% (after
exemptions).
With effect from 29 April 2021, the dividend restrictions placed on locally incorporated banks at the height of the COVID-19 pandemic were
eased to allow banks to pay up to a maximum of 50% of their earnings as dividends to shareholders. The 50% dividend restriction will
remain in place until 1 July 2022.

Westpac New Zealand Limited 51
Independent auditor’s review report
To the shareholder of Westpac New Zealand Limited
Report on the Disclosure Statement
Our conclusions
We have reviewed pages 6 to 23 and pages 27 to 48 of the Disclosure Statement for the six months ended 31
March 2021 (the “Disclosure Statement”) of Westpac New Zealand Limited (the “Bank”) and its controlled entities
(the “Banking Group”), which includes the condensed consolidated interim financial statements (the “financial
statements”) required by Clause 25 of the Registered Bank Disclosure Statements (New Zealand Incorporated
Registered Banks) Order 2014 (as amended) (the “Order”) and the supplementary information required by
Schedules 5, 7, 11, 13, 16 and 18 of the Order.
The financial statements on pages 6 to 23 comprise the balance sheet as at 31 March 2021, the income
statement, the statement of comprehensive income, the statement of changes in equity and the statement of cash
flows for the six months ended on that date, and significant accounting policies and other explanatory information.
The supplementary information is included within notes 3, 5 and 6 of the financial statements and notes ii to vii of
the registered bank disclosures.
We have examined the financial statements and supplementary information and based on our review, nothing has
come to our attention that causes us to believe that the accompanying:
a)financial statements of the Banking Group (excluding the supplementary information) have not been prepared,
in all material respects, in accordance with International Accounting Standard 34 Interim Financial Reporting
(IAS 34) and New Zealand Equivalent to International Accounting Standard 34 Interim Financial Reporting
(NZ IAS 34);
b)supplementary information that is required to be disclosed under Schedules 5, 7, 13, 16 and 18 of the Order,
does not fairly state the matters to which it relates in accordance with those schedules; and
c)supplementary information relating to capital adequacy and regulatory liquidity requirements that is required to
be disclosed under Schedule 11 of the Order, is not, in all material respects, disclosed in accordance with
Schedule 11 of the Order.
Basis for conclusions
We conducted our review in accordance with the New Zealand Standard on Review Engagements 2410
(Revised) Review of Financial Statements Performed by the Independent Auditor of the Entity (NZ SRE 2410
(Revised)). Our responsibility is further described in the Auditor’s responsibility for the review of the financial
statements and supplementary information section of our report.
We are independent of the Banking Group in accordance with the relevant ethical requirements in New Zealand
relating to the audit of the annual financial statements, and we have fulfilled our other ethical responsibilities in
accordance with these ethical requirements. In addition to our role as auditor, our firm carries out other services
for the Banking Group in the areas of other audit-related services, which relate to assurance or agreed upon
procedures on certain financial information performed in the role of auditor (or where most appropriate to be
performed by the auditor), being agreed upon procedures over regulatory liquidity returns and the provision of
comfort letters and agreed upon procedures reports for debt issuance programmes. In addition, certain partners
and employees of our firm may deal with the Banking Group on normal terms within the ordinary course of trading
activities of the Banking Group. The provision of these other services and these relationships have not impaired
our independence
PricewaterhouseCoopers, PwC Tower, 15 Customs Street West, Private Bag 92162, Auckland 1142 New Zealand
T: +64 9 355 8000, www.pwc.co.nz

52 Westpac New Zealand Limited
Emphasis of Matter
We draw attention to note iv of the Registered bank disclosures on page 47 of the Disclosure Statement, in which
the Bank has disclosed a matter of non-compliance as well as other potential matters of non-compliance with
Liquidity Policy (BS13).
The matter of non-compliance was due to a coding error in the BS13 liquidity model which impacted the
aggregation of customer deposits. The one-week and one-month mismatch ratios as disclosed in the Regulatory
liquidity ratios have been adjusted to reflect the impact of the non-compliance. Furthermore, with effect from 31
March 2021, the Bank’s conditions of registration were amended to apply an overlay to the mismatch ratios,
discounting the value of the Bank’s liquid assets, until such time as the Reserve Bank is satisfied its concerns
regarding liquidity risk controls have been resolved.
Our conclusion on the supplementary information relating to capital adequacy and regulatory liquidity
requirements is not modified in respect of this matter.
Other Matter
We draw attention to other matters included in the Disclosure Statement as follows:
●the Bank is required to supply two external reviews to the Reserve Bank under section 95 of the Reserve
Bank of New Zealand Act 1989, as referred to in note i of the Registered bank disclosures on page 25; and
●the Bank has identified material matters of non-compliance with aspects of its conditions of registration, as
referred to within Conditions of registration on page 49.
Directors’ responsibility for the Disclosure Statement
The Directors of the Bank (the “Directors”) are responsible on behalf of the Bank for the preparation and fair
presentation of the Disclosure Statement, which includes financial statements prepared in accordance with
Clause 25 of the Order, and for such internal control as the Directors determine is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In addition, the Directors are responsible, on behalf of the Bank, for the preparation and fair presentation of the
supplementary information in the Disclosure Statement which complies with Schedules 3, 5, 7, 11, 13, 16 and 18
of the Order.
Auditor’s responsibility for the review of the financial statements and supplementary information
Our responsibility is to express the following conclusions on the financial statements and supplementary
information based on our review. NZ SRE 2410 (Revised) requires us to conclude whether anything has come to
our attention that causes us to believe that:
●the financial statements (excluding the supplementary information), taken as a whole, have not been prepared
in all material respects, in accordance with IAS 34 and NZ IAS 34;
●the supplementary information (excluding the supplementary information relating to capital adequacy and
regulatory liquidity requirements), taken as a whole, does not fairly state the matters to which it relates in
accordance with Schedules 5, 7, 13, 16 and 18 of the Order; and
●the supplementary information relating to capital adequacy and regulatory liquidity requirements, taken as a
whole, is not, in all material respects, disclosed in accordance with Schedule 11 of the Order.
A review in accordance with NZ SRE 2410 (Revised) is a limited assurance engagement. We perform
procedures, primarily consisting of making enquiries, primarily of persons responsible for financial and accounting
matters, and applying analytical and other review procedures.
The procedures performed in a review are substantially less than those performed in an audit conducted in
accordance with International Standards on Auditing (New Zealand) and International Standards on Auditing and
consequently does not enable us to obtain assurance that we might identify in an audit. Accordingly, we do not
express an audit opinion on the financial statements and the supplementary information.

Westpac New Zealand Limited 53
Who we report to
This report is made solely to the Bank’s shareholder. Our review work has been undertaken so that we might
state those matters which we are required to state to them in our review report and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Bank and the
Bank’s shareholder for our review procedures, for this report, or for the conclusions we have formed.
The engagement partner on the review resulting in this independent auditor’s review report is Samuel
Shuttleworth.
For and on behalf of:
Chartered Accountants
Auckland, New Zealand
20 May 2021