WNZL Disclosure Statement – 31 March 2022

ASX
Release
23 May 2022
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 2022.
For further information:
Hayden Cooper Andrew Bowden
Group Head of Media Relations Head of Investor Relations
0402 393 619 0438 284 863
This document has been authorised for release by Tim Hartin, Company Secretary.
Level 18, 275 Kent Street
Sydney, NSW, 2000

2 Westpac New Zealand Limited

This page has been intentionally left blank

Westpac New Zealand Limited 3
Contents
Glossary of terms4
Westpac New Zealand sustainability performance5
Directors’ statement6
Financial statements
Income statement7Note 6 Loans15
Statement of comprehensive income7Note 7 Provision for expected credit losses15
Balance sheet8Note 8 Deposits and other borrowings21
Statement of changes in equity9Note 9 Debt issues21
Statement of cash flows10Note 10 Related entities22
Note 1 Financial statements preparation 11
Note 2 Net interest income12
Note 11 Fair values of financial assets and financial
liabilities
22
Note 3 Non-interest income13
Note 4 Operating expenses14
Note 12 Credit related commitments, contingent
assets and contingent liabilities
25
Note 5 Impairment charges/(benefits)14Note 13 Segment reporting25
Registered bank disclosures
i. General information27
ii. Additional financial disclosures28
v. Concentration of credit exposures to individual
counterparties
50
iii. Asset quality34vi. Insurance business50
vii. Risk management policies50
iv. Capital adequacy under the internal models
based approach, and regulatory liquidity ratios
38
Conditions of registration51
Independent auditor’s review report52

4 Westpac New Zealand Limited
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.
The Disclosure Statement also uses the following terms as defined below.
FMAFinancial Markets Authority
ANZSIC
Australia and New Zealand Standard Industrial
Classification
FVIS
Fair value through income statement
AT1Additional Tier 1 capital
BCBSBasel Committee on Banking Supervision
FVOCI
Fair value through other comprehensive
income
BS13Banking Standard 13 – Liquidity Policy
FX
Foreign exchange
BPR
Banking Prudential RequirementIAPIndividually assessed provisions
IRBInternal Rating Based
BS2A
Capital Adequacy Framework (Standardised
Approach)
LGDLoss given default
LVRLoan-to-value ratio
BS2B
Capital Adequacy Framework (Internal Models Based
Approach)
PDProbability of default
CAPCollectively assessed provisionsRBNZ ActReserve Bank of New Zealand Act 1989
Reserve BankReserve Bank of New Zealand
CB
Programme
The Bank’s Global Covered Bond Programme
RWARisk weighted assets
EADExposure at default
SPV
Special purpose vehicle
ECLExpected credit losses
ELEExtended Licensed Entity
Westpac Life
Westpac Life-NZ- Limited (renamed Fidelity
Insurance Limited on 28 February 2022)
Fidelity LifeFidelity Life Assurance Company Limited
WSNZLWestpac Securities NZ Limited
Financial
statements
Condensed consolidated interim financial statements

Westpac New Zealand Limited 5
Westpac New Zealand sustainability performance (Unaudited)
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.
In April 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.
Sustainability Strategy results for the six months ended 31 March 2022
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 New Zealanders.
2025 targets*HY22 Progress
1.Reduce annual Scope 1, 2, and Scope 3 Mandatory
operational emissions by 30% against a 2019 base
year.
1
Offset remaining emissions to be carbon
neutral.
51% (see Key
climate risk
metrics)
2.Enable $10b in sustainable finance.
2
$5.68b
3.Manage our climate-related financial risks.Refer to Climate
Risk Update
Highlights for the six months ended 31 March 2022 include:
Structuring over $1.7b of sustainable debt including:
oExecuting New Zealand’s largest Sustainability-Linked Loan in the
agricultural sector, an $85m facility, encouraging Pāmu’s farmers to
improve all aspects of farm sustainability.
oSupporting Genesis Energy to be the first NZ borrower to have a
Sustainability-Linked Loan and Green Bond aligned to the globally
recognised Climate Transition Finance Handbook.
oPositioning The Warehouse Group to be the first NZ borrower to
have sustainable packaging and gender pay targets in its
Sustainability-Linked Loan.
oSupporting Christchurch City Holdings Limited to issue its $150m
inaugural Sustainability Bond, which was the first sustainability
bond offer to retail investors under an FMA exemption, paving the
way for future sustainability bonds under this exemption.
48% of our fleet is now electric or plug-in hybrid vehicles.
Climate Risk Update
We released our second Climate Risk Report in November 2021. It is based on
the TCFD recommendations. During the six months ended 31 March 2022, our
effort has been focused on progressing a comprehensive assessment of
climate-related risks and opportunities for the agricultural sector.
Key climate risk metrics
Our operational carbon emissions reductions of 51% for the six months ended
31 December 2021 annualised against a 2019 base year are largely due to
COVID-19 border restrictions and domestic lockdowns reducing business travel
and business operations.
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
Lending to fossil fuel mining and production increased by 32% from financing a
gas-fired back-up power generator.
4
At the same time climate change solution
lending decreased marginally by 2%. While lending to green buildings
5
lifted,
exposure to renewable energy generation dropped.
6
Manaaki te tāngata: Care for people.
We want to help create thriving local communities and a workforce and society
where everyone feels valued.
2025 targets*HY22 Progress
4.Set a cultural diversity in leadership target.
7
Initiative in progress
5.1% of annual pre-tax profits invested in
communities.
8
0.52%
/$3.572m
6.$700m in lending to healthy, affordable and
social housing.
9
$440m
Highlights for the six months ended 31 March 2022 include:
Published our third gender pay analysis. Our overall gender pay gap in
2021 is 28.5% vs 29.1% in 2020. This figure compares the pay of the
median male and median female at Westpac NZ, and includes base
salary, bonuses, overtime, miscellaneous payments and superannuation.
Helped first home buyers utilise the Kāinga Ora First Home Partner
Scheme for the first time, a shared equity scheme designed to bring home
ownership within reach for more New Zealanders.
E tipu pūtea ora: Grow financial wellbeing.
We want to enable all New Zealanders to be financially secure and
independent.
2025 targets*HY22 Progress
7.25,000 people to participate in Westpac
facilitated financial education workshops.
16,488
8.Help 15,000 New Zealanders who are at risk of
financial exploitation and exclusion.
3,112
9.Source 25% of annual supplier spend from local
businesses, including those owned by diverse
and under-represented groups.
17%
Highlights for the six months ended 31 March 2022 include:
Launched an online financial education workshop facilitator training for
staff, supporting new facilitators to be able to help communities
nationally. This will help us towards achieving target 7.
Rolled out the New Start Initiative nationally, helping prisoners near
release obtain a valid ID, debit card and online banking access, making
it easier for them to reintegrate into the community.
*Annual targets are to be achieved by 30 September 2025. Other targets are to be achieved during the period 1 October 2020 to 30 September 2025, unless stated otherwise.
1
Environmental Year runs 1 July to 30 June. CO
2
e results include all Westpac business units based in New Zealand. Scope 1 covers direct emissions from owned or controlled sources. Scope 2 covers indirect emissions
from the generation of purchased electricity. Scope 3 Mandatory covers the indirect emissions relevant to the day-to-day running of the business. These are sector specific, as defined by the Toitū net carbonzero
programme.
2
This is a cumulative target which comprises (a) $5b for lending to climate change solutions, $700m lending for healthy, affordable and social housing, and additional environmental, social, and sustainability-linked
lending (building on FY20 exposure), and (b) facilitation of sustainable bonds (for customers and Westpac New Zealand Limited Treasury) by Westpac Banking Corporation (acting through its New Zealand Branch). 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 to support New Zealand becoming a 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
As the borrowing entity’s main activity is fossil fuel extractions, this lending falls under this classification.
5
Green buildings are buildings which reduce environmental impacts and use resources efficiently through their design, construction or operation.
6
Shows the change in total committed exposure at 31 March 2022, compared to 30 September 2021.
7
Progress on this target has been delayed due to challenges in collecting sufficient employee data, with which to set appropriate targets in-line with best practice. Work to collect data is ongoing, with targets to be set
within the next 12-24 months.
8
Community investment is made up of: monetary contributions (charitable gifts, matched giving and community partnerships), time contributions, in-kind gifts and donations, and management costs. It excludes
commercial sponsorships.
9
This is a cumulative target (building on FY20 exposure) and includes Kiwibuild and shared equity (a form of shared home ownership, often between an individual and an organisation), as well as Westpac’s Warm Up
lending.

Industry segment31 Mar 2230 Sep 21
Residential mortgages2.2%2.3%
Commercial property lending2.0%2.2%
Agricultural lending3.1%3.4%

6 Westpac New Zealand Limited
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 2022, except as noted on pages 28 and 51:
(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:
Philippa GreenwoodCatherine McGrath
Rob Hamilton David Havercroft
Sam KnowlesJonathan Mason
Christine ParkerMary Quin
Michael Rowland
Dated this 19
th
day of May 2022

Income statement for the six months ended 31 March 2022
Westpac New Zealand Limited 7
THE BANKING GROUP
Six MonthsSix Months
EndedEnded
31 Mar 2231 Mar 21
$ millionsNoteUnauditedUnaudited
Interest income:
Calculated using the effective interest rate method2 1,600 1,551
Other2 13 5
Total interest income2 1,613 1,556
Interest expense2 (526) (532)
Net interest income 1,087 1,024
Net fees and commissions income3 121 121
Other income3 8 6
Net operating income before operating expenses and impairment charges 1,216 1,151
Operating expenses4 (543) (527)
Impairment (charges)/benefits5 15 99
Profit before income tax 688 723
Income tax expense (191) (200)
Net profit attributable to the owner of the Bank 497 523
The above income statement should be read in conjunction with the accompanying notes.
Statement of comprehensive income for the six months ended 31 March 2022
THE BANKING GROUP
Six MonthsSix Months
EndedEnded
31 Mar 2231 Mar 21
$ millions
UnauditedUnaudited
Net profit attributable to the owner of the Bank 497 523
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Gains/(losses) recognised in equity on:
Investment securities (182) (103)
Cash flow hedging instruments 276 78
Transferred to income statement:
Cash flow hedging instruments 38 39
Income tax on items taken to or transferred from equity:
Investment securities 51 29
Cash flow hedging instruments (88) (33)
Items that will not be reclassified subsequently to profit or loss
Remeasurement of defined benefit obligation recognised in equity (net of tax) 7 13
Other comprehensive income for the period (net of tax) 102 23
Total comprehensive income attributable to the owner of the Bank 599 546
The above statement of comprehensive income should be read in conjunction with the accompanying notes.

Balance sheet as at 31 March 2022
8 Westpac New Zealand Limited
THE BANKING GROUP
31 Mar 2230 Sep 21
$ millionsNote
UnauditedAudited
Assets
Cash and balances with central bank 11,478 8,472
Collateral paid 75 185
Trading securities and financial assets measured at FVIS 1,980 2,280
Derivative financial instruments 105 221
Investment securities 4,986 4,680
Loans6 94,029 92,632
Other financial assets 202 712
Current tax assets 31 -
Due from related entities 3,247 1,834
Property and equipment 416 410
Deferred tax assets 104 216
Intangible assets 713 673
Other assets 56 65
Total assets 117,422 112,380
Liabilities
Collateral received 9 188
Deposits and other borrowings8 81,364 79,367
Other financial liabilities 2,346 2,900
Derivative financial instruments 160 178
Debt issues9 19,508 16,304
Current tax liabilities - 43
Provisions 217 241
Other liabilities 379 381
Total liabilities excluding related entities liabilities 103,983 99,602
Due to related entities 2,331 1,836
Loan capital 2,611 2,579
Total related entities liabilities 4,942 4,415
Total liabilities 108,925 104,017
Net assets 8,497 8,363
Shareholder's equity
Share capital 7,300 7,300
Reserves 80 (15)
Retained profits 1,117 1,078
Total shareholder's equity 8,497 8,363
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 2022
Westpac New Zealand Limited 9
THE BANKING GROUP
Reserves
InvestmentCash FlowTotal
Share SecuritiesHedgeRetainedShareholder's
$ millions
Capital ReserveReserveProfitsEquity
As at 30 September 2020 (Audited) 7,300 57 (82) 415 7,690
Impact from a change in accounting policy
- - - (6) (6)
Restated opening balance 7,300 57 (82) 409 7,684
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) 2 945 8,230
As at 30 September 2021 (Audited) 7,300 (60) 45 1,078 8,363
Six months ended 31 March 2022 (Unaudited)
Net profit attributable to the owner of the Bank - - - 497 497
Net gains/(losses) from changes in fair value - (182) 276 - 94
Income tax effect - 51 (77) - (26)
Transferred to income statement - - 38 - 38
Income tax effect - - (11) - (11)
Remeasurement of defined benefit obligations - - - 9 9
Income tax effect
-
- -
(2)
(2)
Total comprehensive income for the six months
ended 31 March 2022 - (131) 226 504 599
Transactions with owner:
Dividends paid on ordinary shares (refer to Note 10) - - - (465) (465)
As at 31 March 2022 (Unaudited) 7,300 (191) 271 1,117 8,497
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 2022
10 Westpac New Zealand Limited
THE BANKING GROUP
Six MonthsSix Months
EndedEnded
31 Mar 2231 Mar 21
$ millionsUnauditedUnaudited
Cash flows from operating activities
Interest received
1
1,627 1,609
Interest paid (470) (634)
Non-interest income received 111 102
Operating expenses paid (485) (434)
Income tax paid (192) (218)
Cash flows from operating activities before changes in operating assets and liabilities 591 425
Net (increase)/decrease in:
Collateral paid 110 (185)
Trading securities and financial assets measured at FVIS 297 202
Loans
1
(1,563) (2,623)
Other financial assets (4) (8)
Due from related entities (997) (448)
Other assets 1 5
Net increase/(decrease) in:
Collateral received (179) (203)
Deposits and other borrowings 1,997 3,375
Other financial liabilities (566) 1,096
Due to related entities (256) (313)
Other liabilities 1 45
Net movement in external and related entity derivative financial instruments
2
(29) (229)
Net cash provided by/(used in) operating activities (597) 1,139
Cash flows from investing activities
Purchase of investment securities (707) (271)
Proceeds from investment securities 150 175
Purchase of capitalised computer software (66) (40)
Purchase of property and equipment (10) (9)
Purchase of associates - (2)
Proceeds from other investing activities - 7
Net cash provided by/(used in) investing activities (633) (140)
Cash flows from financing activities
Net movement in due to related entities
47
112
Proceeds from debt issues
2
7,970
3,078
Repayments of debt issues
2
(3,825)
(2,368)
Payments for the principal portion of lease liabilities
(32)
(23)
Dividends paid to ordinary shareholder (465) -
Net cash provided by/(used in) financing activities 3,695 799
Net increase/(decrease) in cash and cash equivalents 2,465 1,798
Cash and cash equivalents at beginning of the period 9,013 4,360
Cash and cash equivalents at end of the period 11,478 6,158
Cash and cash equivalents at end of the period comprise:
Cash on hand 240 271
Balances with central bank 11,238 5,855
Interbank lending classified as cash and cash equivalents - 32
Cash and cash equivalents at end of the period 11,478 6,158
1
Comparatives have been restated to correctly reflect the classification of amortisation of deferred acquisition costs as a non-cash movement within interest
income and loans. The restatement resulted in a $33 million increase in loans and a corresponding increase in interest income received.
2
Comparatives have been restated to correctly reflect the classification of cash and non-cash movements relating to certain matured deals and to reclassify the
movement in related entities holding of debt issues. The restatement resulted in a $160 million decrease in net movement in external and related entity derivative
financial instruments, a $69 million decrease in proceeds from debt issues and a $229 million decrease in repayments of debt issues.
The above statement of cash flows should be read in conjunction with the accompanying notes.

Notes to the financial statements
Westpac New Zealand Limited 11
Note 1 Financial statements preparation
These 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. These financial statements are
also compliant with International Accounting Standard 34 Interim Financial Reporting as issued by the International Accounting Standards Board.
These financial statements do not include all the notes of the type normally included in annual financial statements. Accordingly, these financial
statements should be read in conjunction with the financial statements included in the Disclosure Statement for the year ended 30 September 2021.
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 financial instruments) measured at FVIS or FVOCI. The going concern
concept has been applied.
The financial statements were authorised for issue by the Board of Directors on 19 May 2022.
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.
The accounting policies adopted in the preparation of these financial statements are consistent with the financial statements for the year ended 30
September 2021.
Critical accounting assumptions and estimates
In preparing these financial statements, the application of the Banking Group's accounting policies require judgement, 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 2021. Details on specific judgements in relation to the
calculation of provision for ECL including overlays are included in Note 7.
Amendments to Accounting Standards effective this period
No new accounting standards have been adopted by the Banking Group for the half year ended 31 March 2022. There have been no amendments to
existing accounting standards that have a material impact on the Banking Group.

Notes to the financial statements
12 Westpac New Zealand Limited
Note 2 Net interest income5967-2 04-18
THE BANKING GROUP
Six MonthsSix Months
EndedEnded
31 Mar 2231 Mar 21
$ millions
UnauditedUnaudited
Interest income
Calculated using the effective interest rate method
Cash and balances with central bank 34 8
Investment securities 39 42
Loans 1,527 1,501
Total interest income calculated using the effective interest rate method 1,600 1,551
Other
Trading securities and financial assets measured at FVIS 12 5
Due from related entities 1 -
Total other 13 5
Total interest income 1,613 1,556
Interest expense
Calculated using the effective interest rate method
Deposits and other borrowings 240 243
Debt issues 73 80
Due to related entities 9 8
Loan capital 52 48
Other interest expense 12 4
Total interest expense calculated using the effective interest rate method 386 383
Other
Deposits and other borrowings 17 10
Debt issues 6 3
Due to related entities 2 1
Other interest expense
1
115 135
Total other 140 149
Total interest expense 526 532
Net interest income 1,087 1,024
1
Includes the net impact of Treasury’s interest rate and liquidity management activities.

Notes to the financial statements
Westpac New Zealand Limited 13
Note 3 Non-interest income5967-2 04-18
THE BANKING GROUP
Six MonthsSix Months
EndedEnded
31 Mar 2231 Mar 21
$ millions
UnauditedUnaudited
Net fees and commissions income
Facility fees 22 30
Transaction fees and commissions 124 111
Other non-risk fee income 7 10
Fees and commissions income 153 151
Credit card loyalty programmes (18) (18)
Transaction fees and commissions related expenses (14) (12)
Fees and commissions expenses (32) (30)
Net fees and commissions income 121 121
Other income
Net ineffectiveness on qualifying hedges 8 (4)
Other non-interest income - 10
Total other income 8 6
Total non-interest income 129 127
Non-interest income in scope of NZ IFRS 15 Revenue from Contracts with Customers can be further disaggregated into the following operating
segments and is consistent with the segment descriptions detailed in Note 13:
THE BANKING GROUP
$ millions
Consumer
Banking and
Wealth
Institutional
and Business
Banking
Investments and
Insurance
Reconciling
ItemsTotal
Six months ended 31 March 2022 (Unaudited)
Fees and commissions income
Facility fees 13 8 - 1 22
Transaction fees and commissions 84 38 - 2 124
Other non-risk fee income 3 6 - (2) 7
Fees and commissions income 100 52 - 1 153
Fees and commissions expenses (31) - - (1) (32)
Net fees and commissions income 69 52 - - 121
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

Notes to the financial statements
14 Westpac New Zealand Limited
Note 4 Operating expenses
THE BANKING GROUP
Six monthsSix months
Ended Ended
31 Mar 2231 Mar 21
$ millions
UnauditedUnaudited
Staff expenses 320 259
Lease expense 9 13
Depreciation 46 50
Technology services and telecommunications 60 75
Purchased services 38 42
Software amortisation 21 29
Related entities - management fees 3 4
Other 46 55
Total operating expenses
543 527
Note 5 Impairment charges/(benefits)
THE BANKING GROUP
Six MonthsSix Months
Ended Ended
31 Mar 2231 Mar 21
$ millions
UnauditedUnaudited
Provisions raised/(released):
Performing (19) (91)
Non-performing (1) (14)
Bad debts written-off/(recovered) directly to the income statement 5 6
Impairment charges/(benefits) (15) (99)
of which relates to:
Loans and credit commitments (15) (99)
Impairment charges/(benefits) (15) (99)
Impairment charges/(benefits) on all other financial assets are not material to the Banking Group. Refer to Note 7 for details on the impact of
COVID-19 on the provision for ECL.

Notes to the financial statements
Westpac New Zealand Limited 15
Note 6 Loans
THE BANKING GROUP
31 Mar 2230 Sep 21
$ millions
UnauditedAudited
Residential mortgages 62,209 60,854
Other retail 2,855 2,976
Corporate 29,215 29,144
Other
155 129
Total gross loans 94,434 93,103
Provision for ECL on loans (refer to Note 7) (405) (471)
Total net loans 94,029 92,632
As at 31 March 2022, $5,907 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 WSNZL under the CB Programme (30 September 2021: $7,520 million). In addition, $2,513 million of residential
mortgages, accrued interest and cash has been pledged as collateral as part of the repurchase agreements with the Reserve Bank, under the
Funding for Lending Programme and Term Lending Facility (30 September 2021: $2,513 million). 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 2021. As at 31 March 2022, the New Zealand dollar equivalent of bonds issued by WSNZL
under the CB Programme was $3,990 million (30 September 2021: $4,347 million) and the cash value of the repurchase agreements with the
Reserve Bank was $2,096 million (30 September 2021: $2,096 million).
Note 7 Provision for expected credit losses
Loans and credit commitments
Movements in components of loss allowance
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:
“Transfers between Stages” lines represent transfers between Stage 1, Stage 2 and Stage 3 prior to remeasurement of the provision for ECL.
“New financial assets originated” line represents new accounts originated during the period.
“Financial assets derecognised during the period” line represents loans derecognised due to final repayments during the period.
“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 in portfolio overlays, changes due to forward-looking economic scenarios
and partial repayments and additional draw-downs 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.

Notes to the financial statements
16 Westpac New Zealand Limited
Note 7 Provision for expected credit losses (continued)
The following tables reconcile the provision for ECL on loans and credit commitments for the Banking Group.
THE BANKING GROUP
31 Mar 22
Unaudited
PerformingNon-performing
Stage 1Stage 2Stage 3Stage 3
$ millions
CAPCAPCAPIAP
Total
Provision for ECL on loans and credit commitments as at 30
September 2021
102 279 75 69 525
Due to changes in credit quality:
Transfers to Stage 1 61 (54) (7) - -
Transfers to Stage 2 (3) 26 (22) (1) -
Transfers to Stage 3 CAP - (16) 17 (1) -
Transfers to Stage 3 IAP - - - - -
Reversals of previously recognised impairment charges - - - (5) (5)
New financial assets originated 8 - - - 8
Financial assets derecognised during the period (5) (14) (8) - (27)
Changes in CAP due to amounts written off - - (12) - (12)
Other charges/(credits) to the income statement (68) 46 34 4 16
Total charges/(credits) to the income statement for ECL (7) (12) 2 (3) (20)
Amounts written off from IAP - - - (45) (45)
Total provision for ECL on loans and credit commitments as
at 31 March 2022
95 267 77 21 460
Presented as:
Provision for ECL on loans (refer to Note 6) 78 230 76 21 405
Provision for ECL on credit commitments
1
17 37 1 - 55
Total provision for ECL on loans and credit commitments as
at 31 March 2022
95 267 77 21 460
1
Includes provision for ECL on related entity credit commitments of $3 million classified as Due to Related Entities in the Balance Sheet.

Notes to the financial statements
Westpac New Zealand Limited 17
Note 7 Provision for expected credit losses (continued)
THE BANKING GROUP
30 Sep 21
Audited
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 1 133 (113) (20) - -
Transfers to Stage 2 (12) 88 (76) - -
Transfers to Stage 3 CAP - (31) 33 (2) -
Transfers to Stage 3 IAP - (1) (1) 2 -
Reversals of previously recognised impairment charges - - - (33) (33)
New financial assets originated 16 - - - 16
Financial assets derecognised during the year (12) (42) (23) - (77)
Changes in CAP due to amounts written off - - (34) - (34)
Other charges/(credits) to the income statement (139) 18 89 64 32
Total charges/(credits) to the income statement for ECL (14) (81) (32) 31 (96)
Amounts written off from IAP - - - (36) (36)
Total provision for ECL on loans and credit commitments as
at 30 September 2021
102 279 75 69 525
Presented as:
Provision for ECL on loans (refer to Note 6) 84 244 74 69 471
Provision for ECL on credit commitments 18 35 1 - 54
Total provision for ECL on loans and credit commitments as
at 30 September 2021
102 279 75 69 525

Notes to the financial statements
18 Westpac New Zealand Limited
Note 7 Provision for expected credit losses (continued)
The following table provides further details of the provision for ECL by types of exposure and stage:
THE BANKING GROUP
31 Mar 2230 Sep 21
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 42 53 44 9 148 46 70 46 8 170
Other retail 22 63 19 - 104 21 62 23 1 107
Corporate 31 151 14 12 208 35 147 6 60 248
Total provision for ECL on
loans and credit commitments
95 267 77 21 460 102 279 75 69 525
Impact of overlays on the provision for ECL
The following table attributes the provision for ECL between modelled ECL and portfolio overlays.
Portfolio overlays are used to capture risk of increased uncertainty relating to forward-looking economic conditions, or areas of potential risk and
uncertainty in the portfolio, that are not captured in the underlying modelled ECL.
THE BANKING GROUP
31 Mar 2230 Sep 21
$ millionsUnauditedAudited
Modelled provision for ECL 376 448
Portfolio Overlays 84 77
Total provision for ECL 460 525
Details of these changes, which are based on reasonable and supportable information up to the date of this disclosure statement, are provided
below.

Notes to the financial statements
Westpac New Zealand Limited 19
Note 7 Provision for expected credit losses (continued)
Modelled provision for ECL
The modelled provision for ECL is a probability weighted estimate based on three scenarios which together represent the Banking Group’s view of
the forward-looking distribution of potential loss outcomes. The changes 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. Portfolio overlays
are used to capture potential risk and uncertainty in the portfolio, that are not captured in the underlying modelled ECL.
The base case scenario uses Westpac Economics’ forecasts as at 31 March 2022. Those forecasts allow for a recovery in activity as restrictions
related to COVID-19 are eased. The forecasts also allow for a rise in the Official Cash Rate and related easing in demand over time, including in the
housing market.
The Banking Group's forecasts assume the following:
Key macroeconomic assumptions
for base case scenario
31 Mar 22
Unaudited
30 Sep 21
Audited
Annual GDPForecast growth of 5.5% over the next 12 months.Forecasted growth of 10.9% over the next 12 months.
Residential property pricesForecast growth to fall to 0.4% by the end of
financial year 2022 and contraction of 5.2% by the
end of financial year 2023.
Forecasted growth to peak at 26% during the
financial year and then fall to 1.6% at September
2022.
Cash rateIncrease of 150 bps expected over the next 12
months.
Increase of 100 bps expected over the next 12
months.
Unemployment rateForecast to further decrease to 3% during the
financial year 2022.
Forecast to peak at 4.2% in December 2021 then ease
to 3.5% by September 2022.
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 ECL 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 decline in provision for loans and credit commitments in the period ending 31 March 2022 was primarily due to a more positive forward-
looking economic forecast, improved portfolio performance including a decline in some higher risk exposures and a partial write-off of a single
named exposure.
The following sensitivity table shows the reported provision for ECL based on the probability weighted scenarios and what the provision 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 2230 Sep 21
$ millionsUnauditedAudited
Reported probability-weighted ECL 460 525
100% base case ECL 346 412
100% downside ECL 615 700

Notes to the financial statements
20 Westpac New Zealand Limited
Note 7 Provision for expected credit losses (continued)
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 $58 million (30 September 2021: $57 million) based on applying the average provision
coverage ratios by stage to the movement in the gross exposure by stage.
The following table indicates the weightings applied by the Banking Group as at 31 March 2022 and 30 September 2021.
THE BANKING GROUP
31 Mar 2230 Sep 21
Economic scenario weightings (%)UnauditedAudited
Upside55
Base5055
Downside4540
The increase in weighting to the downside reflects an elevated level of uncertainty in potential credit losses driven by new geopolitical and
economic headwinds, supply chain disruptions, capacity constraints and rising inflation.
Portfolio Overlays
Portfolio overlays are used to address areas of risk, including significant uncertainty that are not captured in the underlying modelled ECL.
Determination of portfolio overlays requires expert judgement and is thoroughly documented and subject to comprehensive internal governance
and oversight. Overlays are reassessed and if the risk is judged to have dissipated or is subsequently captured in the underlying modelled ECL the
overlay will be released or remeasured.
The Banking Group’s total overlays at 31 March 2022 were $84 million (30 September 2021: $77 million), of which $81 million (30 September 2021:
$74 million) relates to COVID-19 impacts; and $3 million (30 September 2021: $3 million) relates to overlays for other risks.
COVID-19 overlays
Business lending (including institutional)
An overlay was retained at 31 March 2022 to reflect the risk that some businesses may have been protected from default or stress because of
COVID-19 related support packages and government stimulus and the continued likelihood that those losses have still been suppressed. This
overlay was included in stage 1 and stage 2. As at 31 March 2022, the COVID-19 overlay for business lending (including institutional) is $28 million
for the Banking Group (30 September 2021: $28 million).
Retail lending
An overlay was retained at 31 March 2022 to reflect the ongoing risk associated with customers who received retail deferral packages. It has been
resized at 31 March 2022 due to the uncertainty around the impact of recent COVID-19 restrictions and unemployment risk, increasing the
likelihood for temporarily suppressing losses. In addition, a further overlay was retained at 31 March 2022 to reflect the flow-on impact to the retail
portfolio from the delayed business losses and unemployment risk. The quantum of this overlay remains unchanged from 30 September 2021.
These two retail overlays are included in stage 1 and stage 2. As at 31 March 2022, the COVID-19 overlays for retail lending are $53 million for the
Banking Group (30 September 2021: $46 million).

Notes to the financial statements
Westpac New Zealand Limited 21
Note 7 Provision for expected credit losses (continued)
Impact of changes in credit exposures on the provision for ECL
Stage 1 credit exposures had a net increase of $2.4 billion (30 September 2021: increased by $3.8 billion) for the Banking Group, primarily
driven by increases in residential mortgages and corporate portfolios, due to new lending in this financial year and movement in exposures
from stage 2 to stage 1 from improved portfolio performance. The increase is partially offset by derecognitions and repayments. Stage 1 ECL
has decreased mainly due to a more positive macro-economic outlook as at 31 March 2022 compared to 30 September 2021.
Stage 2 credit exposures decreased by $1.1 billion (30 September 2021: increased by $810 million) for the Banking Group, mainly driven by an
improved portfolio performance and derecognitions. Stage 2 ECL has decreased mainly due to improved portfolio performance and a more
positive macro-economic outlook as at 31 March 2022 compared to 30 September 2021.
Stage 3 credit exposures had a net decrease of $7 million (30 September 2021: decreased by $92 million) for the Banking Group driven by
reductions in 90 days past due exposures in residential mortgages and other retail, and write-offs from the corporate portfolio. This decrease
is partially offset by an increase in high-risk exposures from the corporate portfolio. Stage 3 ECL has decreased in line with the decrease in
stage 3 exposures.
Refer to Note iii. Asset quality of the Registered bank disclosures for further details.
Note 8 Deposits and other borrowings-2 04-18
THE BANKING GROUP
31 Mar 2230 Sep 21
$ millionsUnauditedAudited
Certificates of deposit 2,994 3,450
Non-interest bearing, repayable at call 15,822 14,737
Other interest bearing:
At call 32,479 32,849
Term 30,069
28,331
Total deposits and other borrowings 81,364 79,367
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 11 for further details.
Note 9 Debt issues
THE BANKING GROUP
31 Mar 2230 Sep 21
$ millionsUnauditedAudited
Short-term debt
Commercial paper 4,554 2,979
Total short-term debt 4,554 2,979
Long-term debt
Non-domestic medium-term notes 7,148 5,570
Covered bonds 3,983 4,347
Domestic medium-term notes 3,823 3,408
Total long-term debt 14,954 13,325
Total debt issues 19,508 16,304
Debt issues have been recognised under both the historical cost convention and by applying fair value accounting to certain products. Refer to
Note 11 for further details.

Notes to the financial statements
22 Westpac New Zealand Limited
Note 10 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
2021.
On 21 February 2022, the Bank declared and paid a dividend of $465 million to its immediate parent company, Westpac New Zealand Group Limited.
On 28 February 2022, the sale of Westpac Life (renamed Fidelity Insurance Limited on 28 February 2022) to Fidelity Life was completed, at which point
Westpac Life ceased to be a subsidiary of the Ultimate Parent Bank and a related entity of the Banking Group.
Note 11 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
Debt instrumentsTrading 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
Westpac New Zealand Limited 23
Note 11 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.
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 2022, the Banking Group has no financial instruments valued under this category (30 September 2021: nil).

Notes to the financial statements
24 Westpac New Zealand Limited
Note 11 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 2230 Sep 21
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 FVIS751,905-1,9806361,644-2,280
Derivative financial instruments-105-105-221-221
Investment securities2,0412,945-4,9862,1522,528-4,680
Due from related entities-1,266-1,266-899-899
Total financial assets measured at fair value2,1166,221-8,3372,7885,292-8,080
Financial liabilities measured at fair value on a recurring basis
Deposits and other borrowings
1
-2,994-2,994-3,450-3,450
Other financial liabilities
1
-20-20-580-580
Derivative financial instruments-160-160-178-178
Debt issues-4,554-4,554-2,979-2,979
Due to related entities-1,542-1,542-1,080-1,080
Total financial liabilities measured at fair value-9,270-9,270-8,267-8,267
1
There are no differences between the fair values disclosed and the contractual outstanding amount payable at maturity for these financial liabilities measured at
fair value on a recurring basis.
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 2021: 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 2230 Sep 21
UnauditedAudited
CarryingCarrying
$ millions
AmountFair ValueAmountFair Value
Financial assets not measured at fair value
Cash and balances with central bank 11,478 11,478 8,472 8,472
Collateral paid 75 75 185 185
Loans 94,029 93,075 92,632 92,485
Other financial assets 202 202 712 712
Due from related entities 1,981 1,981 935 935
Total financial assets not measured at fair value 107,765 106,811 102,936 102,789
Financial liabilities not measured at fair value
Collateral received 9 9 188 188
Deposits and other borrowings 78,370 78,376 75,917 75,948
Other financial liabilities 2,326 2,326 2,320 2,320
Debt issues
1
14,954 14,806 13,325 13,423
Due to related entities 789 789 756 756
Loan capital
1
2,611 2,637 2,579 2,744
Total financial liabilities not measured at fair value 99,059 98,943 95,085 95,379
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 2021.5967-2 04-18

Notes to the financial statements
Westpac New Zealand Limited 25
Note 12 Credit related commitments, contingent assets and contingent liabilities
THE BANKING GROUP
31 Mar 2230 Sep 21
$ millions
UnauditedAudited
Letters of credit and guarantees 827 835
Commitments to extend credit 27,972 28,136
Total undrawn credit commitments 28,799 28,971
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 reviewing its processes for some products relating to the requirements of the Credit Contracts and Consumer Finance Act
2003. The outcome of this complex review is uncertain and could result in customer remediation, regulatory action, litigation and reputational
damage.
All potential claims and other liabilities are assessed on a case-by-case basis. A provision will be recognised where the Banking Group has
conducted an assessment which determines the likelihood of loss as probable and where its potential loss can be reliably estimated. A contingent
liability exists in respect of actual or potential claims where the likely loss is not assessed as probable, where the law is uncertain or, in rare
circumstances, where the outflow of resources is probable but cannot be reliably estimated.
Note 13 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 28 February 2022, the sale of Westpac Life to Fidelity Life was completed. As such, from 1 March 2022, the Investments and Insurance segment
no longer provides insurance services.
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 provided funds management and insurance services until 28 February 2022. From 1 March 2022, it only provides funds
management 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
26 Westpac New Zealand Limited
Note 13 Segment reporting (continued)
THE BANKING GROUP
ConsumerInstitutionalInvestments
Banking andand BusinessandReconciling
$ millionsWealthBankingInsuranceItemsTotal
Six months ended 31 March 2022 (Unaudited)
Net interest income559537-(9)
1,087
Non-interest income
695243(35)129
Net operating income before operating expenses and
impairment charges
62858943(44)1,216
Operating expenses(317)(204)(27)5
(543)
Impairment (charges)/benefits
55-515
Profit before income tax31639016(34)688
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
As at 31 March 2022 (Unaudited)
Total gross loans56,04438,635-(245)94,434
Total deposits and other borrowings42,65135,717-2,99681,364
As at 30 September 2021 (Audited)
Total gross loans54,37438,809-(80)93,103
Total deposits and other borrowings40,37135,546-3,45079,367

Registered bank disclosures
Unaudited
Unaudited
Westpac New Zealand Limited 27
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
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 changes in the composition of the Board of Directors of the Bank since 30 September 2021. Jan Dawson, an independent Non-
executive Director and Chair of the Board of the Bank, retired from the Board on 1 October 2021. Pip Greenwood, an existing independent Non-
executive Director was appointed Chair of the Board of the Bank effective 1 October 2021. Simon Power, an Executive Director of the Bank, retired from
the Board on 15 November 2021. Catherine McGrath was appointed as an Executive Director of the Bank on 15 November 2021. Mary Quin, an
independent Non-executive Director, will retire from the Board on 20 May 2022.
Auditor
PricewaterhouseCoopers
PwC Tower, Level 27
15 Customs Street West
Auckland, New Zealand
Pending proceedings or arbitration
There are no pending legal proceedings or arbitration concerning any member of the Banking Group that are 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-
Stable
Stable
Stable

Registered bank disclosures
Unaudited
Unaudited
28 Westpac New Zealand Limited
i. General information (continued)
Other material matters
Reports required under section 95 of the RBNZ Act
On 23 March 2021, the Reserve Bank issued two notices to the Bank under section 95 of the RBNZ Act requiring the Bank to supply two external
reviews to the Reserve Bank (the ‘Risk Governance Review’ and the ‘Liquidity Review’).
The Risk Governance Review related to the effectiveness of the Bank’s risk governance, with a focus on the role played by the Bank Board. This
review was undertaken by Oliver Wyman Limited and completed in November 2021. The review identified deficiencies in the Bank’s risk governance
practices and operations which impacted the Bank Board’s effectiveness in governing risk. These deficiencies are likely to have contributed to issues
of non-compliance with some of the Bank’s Conditions of Registration, and technology resiliency issues. The Bank has a programme of work
underway to address the issues raised, which is being overseen by the Bank’s Board. The Bank has engaged Oliver Wyman Limited to provide
independent assurance that the Bank’s remediation has been delivered to an appropriate standard.
The Liquidity Review related to the effectiveness of the Bank’s actions to improve liquidity risk management and the associated risk culture. This
followed previously identified breaches of the Reserve Bank’s Liquidity Policy (BS13) and non-compliances with Condition of Registration 14 identified
through the Reserve Bank’s liquidity thematic review (which the Reserve Bank subsequently concluded constituted non-compliance with condition
of registration 14 in a material respect, when considered collectively). This review was undertaken by Deloitte Touche Tohmatsu (Deloitte) and
completed in May 2022. The review: found that the Bank had improved its liquidity control environment; did not identify any material control gaps or
issues; and made some recommendations for improvement, which will be implemented as part of the Bank’s continuous improvement activity. The
review also found that the Bank had made improvements to its associated risk culture.
From 31 March 2021, the Reserve Bank amended the Bank’s conditions of registration, requiring the Bank to discount the value of its liquid assets by
approximately 14% which at 31 March 2022 was $3.1 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.
Commitments to regulators
Separate to the section 95 reviews, the Bank has also committed to:
the Reserve Bank and FMA to address its technology issues, and has engaged Deloitte to monitor progress; and
review the programme delivery plan for compliance with the Reserve Bank’s Outsourcing Policy.
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
regulators.
Deposit Takers Bill
A Deposit Takers Bill is expected to be introduced to the House of Parliament in 2022 that will create a single regulatory regime for banks and non-
bank deposit takers and introduce a depositor compensation scheme to protect up to $100,000 per eligible depositor, per institution, if a payout
event is triggered. Consultation on an exposure draft of the legislation closed on 21 February 2022. Initial implementation of the depositor
compensation scheme is expected in early 2024.
ii. Additional financial disclosures
Additional information on balance sheet
THE BANKING GROUP
31 Mar 2230 Sep 21
$ millions
Unaudited Audited
Interest earning and discount bearing assets 115,225 110,398
Interest and discount bearing liabilities 91,603 87,974
Total amounts due from related entities 3,247 1,834
Total amounts due to related entities 4,942 4,415

Registered bank disclosures
Unaudited
Unaudited
Westpac New Zealand Limited 29
ii. Additional financial disclosures (continued)
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 6, the carrying value of these financial assets pledged as collateral is:
THE BANKING GROUP
31 Mar 2230 Sep 21
$ millions
UnauditedAudited
Cash 75 185
Securities pledged under repurchase agreements:
Trading securities and financial assets measured at FVIS
1
10 -
Investment securities
2
684 1,496
Residential mortgage-backed securities
3
2,513 2,513
Total amount pledged to secure liabilities (excluding CB Programme) 3,282 4,194
1
As at 31 March 2022, $10 million of trading 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 2021: nil).
2
As at 31 March 2022, $664 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 2021: $916 million) and $20 million of investment securities were pledged to third parties which is
recorded within other financial liabilities on the balance sheet (30 September 2021: $580 million).
3
As at 31 March 2022, the Banking Group has undertaken repurchase agreements with the Reserve Bank, under the Funding for Lending Programme and Term Lending
Facility, using residential mortgage-backed securities. For the Funding for Lending Programme, the repurchase cash amount at 31 March 2022 is $2,000 million (30
September 2021: $2,000 million), which is recorded in other financial liabilities on the balance sheet, with underlying securities to the value of $2,398 million
provided under the arrangement (30 September 2021: $2,398 million). For the Term Lending Facility, the repurchase cash amount at 31 March 2022 is $96 million (30
September 2021: $96 million), which is recorded within other financial liabilities on the balance sheet, with underlying securities to the value of $115 million provided
under the arrangement (30 September 2021: $115 million).
Additional information on concentrations of credit risk
The maximum exposure to credit risk (excluding collateral received) is represented by the carrying amount of on-balance sheet financial assets and
undrawn credit commitments as set out in the following table.
THE BANKING GROUP
$ millions31 Mar 22
Financial assets
Cash and balances with central bank 11,478
Collateral paid 75
Trading securities and financial assets measured at FVIS 1,980
Derivative financial instruments 105
Investment securities 4,986
Loans 94,029
Other financial assets 202
Due from related entities 3,247
Total financial assets 116,102
Undrawn credit commitments
Letters of credit and guarantees 827
Commitments to extend credit 27,972
Total undrawn credit commitments 28,799
Total maximum credit risk exposure 144,901

Registered bank disclosures
Unaudited
Unaudited
30 Westpac New Zealand Limited
ii. Additional financial disclosures (continued)
THE BANKING GROUP
$ millions31 Mar 22
On-balance sheet credit exposures
Analysis of on-balance sheet credit exposures by geographical areas
New Zealand 113,964
Overseas 2,543
Subtotal 116,507
Provision for ECL on loans (405)
Total on-balance sheet credit exposures 116,102
Analysis of on-balance sheet credit exposures by industry sector
Accommodation, cafes and restaurants 446
Agriculture 9,359
Construction 540
Finance and insurance 5,834
Forestry and fishing 493
Government, administration and defence 16,076
Manufacturing 1,647
Mining 278
Property 7,560
Property services and business services 1,167
Services 1,693
Trade 1,691
Transport and storage 1,321
Utilities 1,563
Retail lending 63,504
Subtotal 113,172
Provision for ECL (405)
Due from related entities 3,247
Other financial assets 88
Total on-balance sheet credit exposures 116,102
Off-balance sheet credit exposures consists of
Credit risk-related instruments 28,799
Total off-balance sheet credit exposures 28,799
Analysis of off-balance sheet credit exposures by geographical areas
New Zealand 28,262
Overseas 537
Total off-balance sheet credit exposures 28,799
Analysis of off-balance sheet credit exposures by industry sector
Accommodation, cafes and restaurants 102
Agriculture 786
Construction 551
Finance and insurance 1,730
Forestry and fishing 191
Government, administration and defence 743
Manufacturing 1,729
Mining 70
Property 1,799
Property services and business services 786
Services 1,290
Trade 1,844
Transport and storage 822
Utilities 1,727
Retail lending 14,629
Total off-balance sheet credit exposures 28,799
ANZSIC has been used as the basis for disclosing industry sectors.

Registered bank disclosures
Unaudited
Unaudited
Westpac New Zealand Limited 31
ii. Additional financial disclosures (continued)
Additional information on concentrations of funding
THE BANKING GROUP
$ millions31 Mar 22
Funding consists of
Collateral received 9
Deposits and other borrowings 81,364
Other financial liabilities
1
2,123
Debt issues
2
19,508
Due to related entities
3
1,438
Loan capital 2,611
Total funding 107,053
Analysis of funding by geographical area
2
New Zealand 86,777
Australia 728
United Kingdom 9,851
United States of America 4,872
China 2,374
Other 2,451
Total funding 107,053
Analysis of funding by industry sector
Accommodation, cafes and restaurants 535
Agriculture 1,972
Construction 2,517
Finance and insurance 38,779
Forestry and fishing 206
Government, administration and defence 3,415
Manufacturing 2,367
Mining 61
Property services and business services 8,297
Services 5,947
Trade 2,170
Transport and storage 526
Utilities 843
Households 33,920
Other
4
4,060
Subtotal 105,615
Due to related entities
3
1,438
Total funding 107,053
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
32 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 2022. 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 22
Over 3Over 6Over 1
Months andMonths andYear andNon-
Up to 3Up to 6Up toUp toOverinterest
$ millionsMonthsMonths1 Year2 Years2 YearsBearingTotal
Financial assets
Cash and balances with central bank11,238----24011,478
Collateral paid75-----75
Trading securities and financial assets measured
at FVIS
1,827153----1,980
Derivative financial instruments-----105105
Investment securities7786358643,924-4,986
Loans45,5237,69314,04215,46111,823(513)94,029
Other financial assets-----202202
Due from related entities2,404----8433,247
Total financial assets61,1447,93214,07716,32515,747877116,102
Non-financial assets1,320
Total assets117,422
Financial liabilities
Collateral received9-----9
Deposits and other borrowings47,3218,6698,12889652815,82281,364
Other financial liabilities2,02096---2302,346
Derivative financial instruments-----160160
Debt issues3,8901,7772,1681,38410,668(379)19,508
Due to related entities 1,438----8932,331
Loan capital2,611-----2,611
Total financial liabilities57,28910,54210,2962,28011,19616,726108,329
Non-financial liabilities596
Total liabilities108,925
On-balance sheet interest rate repricing gap3,855(2,610)3,78114,0454,551
Net derivative notional principals
Net interest rate contracts (notional):
Receivable/(payable)14,899(2,762)(3,252)(9,746)861
Net interest rate repricing gap18,754(5,372)5294,2995,412

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Unaudited
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Westpac New Zealand Limited 33
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 22
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-9----9
Deposits and other borrowings46,4236,50110,31217,0171,480-81,733
Other financial liabilities2782-962,142-2,347
Derivative financial instruments:
Held for hedging purposes (net settled)-3223-10
Held for hedging purposes (gross settled):
Cash outflow-49621,8683952,338
Cash inflow--(2)(9)(1,633)(346)(1,990)
Debt issues-1,7741,8414,3209,5923,01020,537
Due to related entities:
Non-derivative balances68067943162-1,465
Derivative financial instruments:
Held for trading 67-----67
Held for hedging purposes (net settled)-73024147-208
Held for hedging purposes (gross settled):
Cash outflow-6261684,0912,8837,174
Cash inflow---(38)(3,287)(2,665)(5,990)
Loan capital--9271,2271,5002,763
Total undiscounted financial liabilities47,1979,06512,27021,67015,6924,777110,671
Total contingent liabilities and commitments
Letters of credit and guarantees827-----827
Commitments to extend credit27,972-----27,972
Total undiscounted contingent liabilities and
commitments
28,799-----28,799

Registered bank disclosures
Unaudited
Unaudited
34 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 22
Cash and balances with central bank 11,478
Receivables due from the Ultimate Parent Bank 1,495
Supranational securities 1,201
NZ Government securities 1,773
NZ public securities 2,303
NZ corporate securities 1,443
Residential mortgage-backed securities 7,342
Total liquid assets 27,035
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 22
Residential mortgages - total gross loans (as disclosed in Note 6 and Section iii.) 62,209
Reconciling items:
Unamortised deferred fees and expenses (267)
Fair value hedge adjustments 205
Value of undrawn commitments and other off-balance sheet amounts relating to residential mortgages 11,677
Undrawn at default
1
(3,098)
Residential mortgages by LVR (as disclosed in Additional mortgage information in Section iv.)
70,726
Accrued interest receivable 54
Partial write-offs 4
Residential mortgages - EAD (as disclosed in Credit risk exposures by asset class in Section iv.)
70,784
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 22
Residential
$ millionsMortgagesOther RetailCorporateOtherTotal
Past due but not individually impaired assets
Less than 30 days past due70383240-1,026
At least 30 days but less than 60 days past due9513130-238
At least 60 days but less than 90 days past due6066-72
At least 90 days past due1722475-271
Total past due but not individually impaired assets1,030126451-1,607

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Unaudited
Westpac New Zealand Limited 35
iii. Asset quality (continued)
Movements in components of loss allowance
Refer to Note 7 for movements in the components for loss allowance on loans and credit commitment for total exposure. The provision 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 2021 46 70 46 8 170
Due to changes in credit quality:
Transfers to Stage 1 16 (13) (3) - -
Transfers to Stage 2 - 14 (14) - -
Transfers to Stage 3 CAP - (2) 2 - -
Transfers to Stage 3 IAP - - - - -
Reversals of previously recognised impairment charges - - - - -
New financial assets originated 2 - - - 2
Financial assets derecognised during the period (1) (2) (6) - (9)
Changes in CAP due to amounts written off - - - - -
Other charges/(credits) to the income statement (21) (14) 19 2 (14)
Total charges/(credits) to the income statement for ECL (4) (17) (2) 2 (21)
Amounts written off from IAP - - - (1) (1)
Total provision for ECL on loans and credit commitments as
at 31 March 2022
42 53 44 9 148
Other retail
Provision for ECL as at 30 September 2021 21 62 23 1 107
Due to changes in credit quality:
Transfers to Stage 1 41 (37) (4) - -
Transfers to Stage 2 (2) 8 (6) - -
Transfers to Stage 3 CAP - (8) 8 - -
Transfers to Stage 3 IAP - - - - -
Reversals of previously recognised impairment charges - - - - -
New financial assets originated 2 - - - 2
Financial assets derecognised during the period (2) (7) (2) - (11)
Changes in CAP due to amounts written off - - (12) - (12)
Other charges/(credits) to the income statement (38) 45 12 (1) 18
Total charges/(credits) to the income statement for ECL 1 1 (4) (1) (3)
Amounts written off from IAP - - - - -
Total provision for ECL on loans and credit commitments as
at 31 March 2022
22 63 19 - 104
Corporate
Provision for ECL as at 30 September 2021 35 147 6 60 248
Due to changes in credit quality:
Transfers to Stage 1 4 (4) - - -
Transfers to Stage 2 (1) 4 (2) (1) -
Transfers to Stage 3 CAP - (6) 7 (1) -
Transfers to Stage 3 IAP - - - - -
Reversals of previously recognised impairment charges - - - (5) (5)
New financial assets originated 4 - - - 4
Financial assets derecognised during the period (2) (5) - - (7)
Changes in CAP due to amounts written off - - - - -
Other charges/(credits) to the income statement (9) 15 3 3 12
Total charges/(credits) to the income statement for ECL (4) 4 8 (4) 4
Amounts written off from IAP - - - (44) (44)
Total provision for ECL on loans and credit commitments as
at 31 March 2022
31 151 14 12 208
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
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36 Westpac New Zealand Limited
iii. Asset quality (continued)
Impacts of changes in gross financial assets on loss allowances - total
Refer to Note 7 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 provision for ECL on loans.
THE BANKING GROUP
31 Mar 22
Unaudited
Performing Non-performing
Stage 1Stage 2Stage 3Stage 3
$ millions
CAPCAPCAPIAP
Total
Total gross carrying amount as at 30 September 2021 84,661 7,833 500 109 93,103
Transfers:
Transfers to Stage 1 1,899 (1,864) (35) - -
Transfers to Stage 2 (1,166) 1,276 (107) (3) -
Transfers to Stage 3 CAP (63) (197) 269 (9) -
Transfers to Stage 3 IAP (1) - (3) 4 -
Net further lending/(repayment) (2,052) (34) (10) 4 (2,092)
New financial assets originated 10,544 - - - 10,544
Financial assets derecognised during the period (6,744) (260) (58) (2) (7,064)
Amounts written-off - - (12) (45) (57)
Total gross carrying amount as at 31 March 2022 87,078 6,754 544 58 94,434
Provision for ECL as at 31 March 2022 (78) (230) (76) (21) (405)
Total net carrying amount as at 31 March 2022 87,000 6,524 468 37 94,029

Registered bank disclosures
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Unaudited
Westpac New Zealand Limited 37
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 2021 56,573 3,878 382 21 60,854
Transfers:
Transfers to Stage 1 985 (955) (30) - -
Transfers to Stage 2 (474) 557 (83) - -
Transfers to Stage 3 CAP (34) (112) 151 (5) -
Transfers to Stage 3 IAP (1) - (2) 3 -
Net further lending/(repayment) (1,830) (37) (4) - (1,871)
New financial assets originated 6,813 - - - 6,813
Financial assets derecognised during the period (3,425) (116) (44) (1) (3,586)
Amounts written-off - - - (1) (1)
Total gross carrying amount as at 31 March 2022 58,607 3,215 370 17 62,209
Provision for ECL as at 31 March 2022 (37) (52) (44) (9) (142)
Total net carrying amount as at 31 March 2022 58,570 3,163 326 8 62,067
Other retail
Total gross carrying amount as at 30 September 2021 2,519 392 64 1 2,976
Transfers:
Transfers to Stage 1 290 (285) (5) - -
Transfers to Stage 2 (294) 303 (9) - -
Transfers to Stage 3 CAP (7) (27) 34 - -
Transfers to Stage 3 IAP - - (1) 1 -
Net further lending/(repayment) (114) 28 (4) - (90)
New financial assets originated 213 - - - 213
Financial assets derecognised during the period (198) (24) (10) - (232)
Amounts written-off - - (12) - (12)
Total gross carrying amount as at 31 March 2022 2,409 387 57 2 2,855
Provision for ECL as at 31 March 2022 (16) (54) (18) - (88)
Total net carrying amount as at 31 March 2022 2,393 333 39 2 2,767
Corporate
Total gross carrying amount as at 30 September 2021 25,440 3,563 54 87 29,144
Transfers:
Transfers to Stage 1 624 (624) - - -
Transfers to Stage 2 (398) 416 (15) (3) -
Transfers to Stage 3 CAP (22) (58) 84 (4) -
Transfers to Stage 3 IAP - - - - -
Net further lending/(repayment) 75 (25) (2) 4 52
New financial assets originated 3,202 - - - 3,202
Financial assets derecognised during the period (3,014) (120) (4) (1) (3,139)
Amounts written-off - - - (44) (44)
Total gross carrying amount as at 31 March 2022 25,907 3,152 117 39 29,215
Provision for ECL as at 31 March 2022 (25) (124) (14) (12) (175)
Total net carrying amount as at 31 March 2022 25,882 3,028 103 27 29,040
The above gross carrying amount table does not include 'Other' credit exposures (refer to Note 6) on the basis that the provision for ECL is nil.

Registered bank disclosures
Unaudited
Unaudited
38 Westpac New Zealand Limited
iii. Asset quality (continued)
Other asset quality information
THE BANKING GROUP
31 Mar 22
Residential
$ millionsMortgagesOther RetailCorporateOtherTotal
Undrawn commitments with individually impaired counterparties--1-1
Other assets under administration-----
iv. Capital adequacy under the internal models based approach, and regulatory liquidity ratios
With effect from 1 October 2021, the Banking Group’s conditions of registration were amended to reflect new Reserve Bank BPRs, which replaced the
previous Reserve Bank document BS2B. 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 BPRs, except for the matters of non-compliance with condition of registration 1B
disclosed on page 51. Refer to page 46 for further details.
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 BCBS and adopted by the Reserve Bank in supervising the
Banking Group.
The Banking Group’s capital summary
THE BANKING GROUP
$ millions
31 Mar 22
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) 1,117
Accumulated other comprehensive income and other disclosed reserves
1
80
Less deductions from Common Equity Tier 1 capital
Goodwill (477)
Other intangible assets
2
(247)
Cash flow hedge reserve (271)
Deferred tax asset deduction (104)
Expected loss excess over eligible allowance (21)
Total Common Equity Tier 1 capital 7,377
Additional Tier 1 capital
Additional Tier 1 capital instruments
3
1,313
Total additional Tier 1 capital 1,313
Total Tier 1 capital 8,690
Tier 2 capital
Tier 2 capital instruments
3
783
Revaluation reserves -
Eligible impairment allowance in excess of expected loss -
Total Tier 2 capital 783
Total capital 9,473
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 39 and 40. 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 39
iv. Capital adequacy under the internal models based approach, and regulatory liquidity ratios (continued)
Capital structure
Ordinary shares
In accordance with the Reserve Bank BPRs, 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 (AT1)
A summary of the key terms and features of the 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.
In accordance with the Reserve Bank BPRs, the Bank’s Additional Tier 1 instrument is subject to a transitional phase-out from 1 January 2022. In line
with the transitional phase-out schedule contained in BPR110, 87.5% of the total nominal value of the Bank’s Additional Tier 1 instrument will be
recognised as regulatory capital between 1 January 2022 and 31 December 2022.
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
40 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 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 2022 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.
In accordance with the Reserve Bank BPRs, the Bank’s Tier 2 instrument is subject to a transitional phase-out from 1 January 2022. In line with the
transitional phase-out schedule contained in BPR110, 87.5% of the total nominal value of the Bank’s Tier 2 instrument will be recognised as
regulatory capital between 1 January 2022 and 31 December 2022. Additionally, the Bank’s Tier 2 instrument is subject to a straight-line amortisation
at a rate of 20% per annum commencing 22 March 2022 as the instrument is within four years of its maturity date of 22 March 2026.
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 did not elect to redeem all or some of the Tier 2 notes for their face value together with accrued interest (if any) on 22 March 2021 (the first
optional redemption date) or any subsequent quarterly optional redemption date. 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 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 FX 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
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Westpac New Zealand Limited 41
iv. Capital adequacy under the internal models based approach, and regulatory liquidity ratios (continued)
Credit risk subject to the IRB approach
Credit risk exposures by asset class
From 1 January 2022, BPR130 requires IRB Banks to apply Standardised RWA treatment to Sovereign and Bank Exposure Classes (which includes
Sovereigns and Central Banks, Multilateral Development Banks, Public Sector Entities and Banks). From this date the only exposures that can be
given IRB RWA treatment are those subject to an RBNZ approved credit risk model in the Corporate and Retail (excluding Reverse Mortgage Loans
for which the Banking Group has no exposure) Exposure classes.
The Banking Group’s credit risk exposures by asset class as at 31 March 2022
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
0.4733,07214.5211.834,147332
Over 0.50 up to and including 1.0
0.7025,79421.1222.866,251500
Over 1.0 up to and including 2.5
1.5210,84722.1642.344,869390
Over 2.5 up to and including 10.0
3.7368126.0490.1865152
Over 10.0 up to and including 99.99
------
Default100.0039020.60118.4549039
Total1.2970,78418.2421.8716,4081,313
Other retail
Up to and including 0.10
0.0577946.356.83565
Over 0.10 up to and including 0.50
0.1984654.3821.0818915
Over 0.50 up to and including 1.0
0.5426855.5141.671189
Over 1.0 up to and including 2.5
1.8254568.3783.3548239
Over 2.5 up to and including 10.0
5.4436869.56103.8840632
Over 10.0 up to and including 99.99
19.647478.67160.7212610
Default100.002182.6265.36141
Total2.362,90157.7045.251,391111
Small business
Up to and including 0.10
0.102223.695.881-
Over 0.10 up to and including 0.50
0.341,11225.3514.0716714
Over 0.50 up to and including 1.0
0.9167031.2330.4821617
Over 1.0 up to and including 2.5
1.8332827.9135.2012210
Over 2.5 up to and including 10.0
4.5514329.8443.79665
Over 10.0 up to and including 99.99
14.941630.9358.97101
Default100.004429.26281.5413110
Total2.942,33527.7728.8371357
Corporate/Business lending
Up to and including 0.04
0.034,85645.2019.741,01681
Over 0.04 up to and including 0.10
0.074,00449.5428.761,22198
Over 0.10 up to and including 0.40
0.229,05242.9041.563,988319
Over 0.40 up to and including 3.0
1.1715,26132.2261.019,870789
Over 3.0 up to and including 10.0
4.7839032.9698.3740633
Over 10.0 up to and including 99.0
24.5584738.29191.801,723138
Default 100.0018849.81131.1126121
Total1.7834,59839.0950.4018,4851,479
Total credit risk exposures
subject to the IRB approach
110,61836,9972,960
1
A scalar of 1.06 currently applies to the RWA calculation of these amounts.

Registered bank disclosures
Unaudited
Unaudited
42 Westpac New Zealand Limited
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 contingent liabilities and counterparty credit risk on derivatives and securities financing transactions. These unaudited amounts are included in
the previous tables.
Undrawn Commitments
Counterparty Credit Risk
and Other
on Derivatives and
Off-Balance Sheet
Securities Financing
Contingent Liabilities
Transactions
$ millions
ValueEADValueEAD
Residential mortgages
11,6778,579--
Other retail
2,9521,663--
Small business
862710--
Corporate/Business Lending
10,91310,9134,86662
Total 26,40421,8654,86662
Additional mortgage information
Residential mortgages by LVR as at 31 March 2022
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 22
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 30,101 14,464 13,257 3,047 1,278 62,147
Undrawn commitments and other off-balance
sheet exposures
6,516 1,122 679 104 158
8,579
Value of exposures 36,617 15,586 13,936 3,151 1,436 70,726

Registered bank disclosures
Unaudited
Unaudited
Westpac New Zealand Limited 43
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 2022
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
Strong5,01070.003,717297
Good1,65390.001,578126
Satisfactory95115.001159
Weak135250.0035829
Default
27---
Total on-balance sheet exposures subject to the slotting approach6,92078.635,768461
1
A scalar of 1.06 currently applies to the RWA calculation of these amounts.
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 exposures1,41577.151,15793
Total specialised lending exposures subject to the slotting
approach
8,33578.386,925554
1
A scalar of 1.06 currently applies to the RWA calculation of these amounts
.
Credit risk exposures subject to the standardised approach
The Banking Group’s credit risk exposures subject to the standardised approach as at 31 March 2022
From 1 January 2022, BPR130 requires IRB Banks to apply Standardised RWA treatment to Sovereign and Bank Exposure Classes (which includes
Sovereigns and Central Banks, Multilateral Development Banks, Public Sector Entities and Banks). The following table includes exposures where
this has been applied.
Calculation of on-balance sheet exposures
Total Minimum
ExposureRisk-Pillar 1
After Credit Average RiskweightedCapital
Risk MitigationWeightExposure
1
Requirement
$ millions%$ millions$ millions
Sovereigns and central banks
13,687---
Multilateral development banks and other international organisations
858---
Public sector entities
1,71520.0036329
Banks
1,50144.9071557
Past due assets
----
Other assets
2
3,12435.891,18995
Total on-balance sheet exposures20,8852,267181
1
A scalar of 1.06 currently applies to the RWA calculation of these amounts.
2
Relates to property and equipment, other assets and related parties.

Registered bank disclosures
Unaudited
Unaudited
44 Westpac New Zealand Limited
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
Total off balance sheet exposures subject to the
standardised approach
98237.6837026.971059
Counterparty credit risk for counterparties
subject to the standardised approach
Foreign exchange contracts17,839N/A43520.0092 7
Interest rate contracts54,866N/A9420.0020 2
Other-N/A--264 21
Total counterparty credit risk for counterparties
subject to the standardised approach72,705529376 30
Standardised subtotal (on and off-balance sheet)21,7842,748 220
1
A scalar of 1.06 currently applies to the RWA calculation of these amounts.
Credit risk mitigation
The Banking Group uses a variety of techniques to reduce the credit risk arising from its lending activities (refer to Note 31.2.2 to the financial
statements included in the Disclosure Statement for the year ended 30 September 2021 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. The Banking Group does not apply any credit risk mitigation from credit derivatives as at 31 March
2022.
Definitions of PD, LGD and EAD
Probability of default
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
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 represents an estimate of the amount of committed exposure expected to be drawn by the customer at the time of default.

Registered bank disclosures
Unaudited
Unaudited
Westpac New Zealand Limited 45
iv. Capital adequacy under the internal models based approach, and regulatory liquidity ratios (continued)
Equity risk
The Banking Group’s equity exposures as at 31 March 2022
Risk-Minimum Pillar 1
TotalRiskweightedCapital
ExposureWeightExposure
1
Requirement
Equity
$ millions%$ millions$ millions
Equity holdings (not deducted from capital) included in the NZX 50 or
overseas equivalent index
-300--
All other equity holdings (not deducted from capital)
3400141
1
A scalar of 1.06 currently applies to the RWA calculation of these amounts.
Application of Standardised Floor to Total Credit Risk RWA
Between 1 January 2022 and 30 September 2022, BPR130 requires IRB Banks to calculate total credit risk RWA as the sum of:
The greater of:
1.06 x total RWA subject to the IRB RWA treatment (as shown in the table in the section Credit risk subject to the IRB approach on
page 41); and
0.85 x total Standardised Equivalent RWA for each credit risk exposure subject to the IRB RWA treatment (commonly referred to
as the standardised floor); and
1.06 x total RWA subject to the Standardised RWA treatment.
The following table shows the output from these calculations, and the resulting total credit risk RWA used in the calculation of the Bank and the
Banking Group’s total capital requirements and capital ratios as at 31 March 2022.
THE BANKING GROUP
31 Mar 22
RWA for modelled exposures
RWARWA recalculatedRWA for
calculatedusing standardisedstandardisedTotal credit risk
$ millionsusing models
2
approachexposures
1,3
RWA
Total IRB and supervisory slotting exposure
1
43,92264,113
Standardised floor54,496
RWA with floor applied54,4962,76257,258
1
A scalar of 1.06 currently applies to the RWA calculation of these amounts.
2
This amount includes $36,997 million for IRB classes and $6,925 million for supervisory slotting exposures.
3
This amount includes $2,748 million for exposures subject to the standardised approach and $14 million for equity exposures.

Registered bank disclosures
Unaudited
Unaudited
46 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 methodology and the
operational risk capital requirement.
THE BANKING GROUP
31 Mar 22
Implied Risk-
Total Operational Risk
$ millions
weighted Exposure
Capital Requirement
Advanced Measurement Approach
Operational risk 5,551 444
During the reporting period, the Bank was not fully compliant with operational risk capital model governance and scenario financial estimate
requirements set out in Part B of BPR151 (previously BS2B). Remediation activity is ongoing which includes the Bank’s transition to the Reserve
Bank’s standardised approach for operational risk capital (BPR150). A capital overlay for operational risk implemented during the previous
reporting period, remains. This previous capital overlay has been adjusted from $29 million to $30 million to reflect minor changes in FX spot
rates.
Market risk
The Banking Group’s aggregate market risk exposure is derived in accordance with BPR140 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 2022 of the aggregate capital charge for that category of market risk derived in accordance with BPR140.
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 2022:
THE BANKING GROUP
31 Mar 22
$ millions
Implied risk-weighted exposureAggregate capital charge
End-of-period
Interest rate risk 2,504 200
Foreign currency risk- -
Equity risk- -
Peak end-of-day
Interest rate risk 5,204 416
Foreign currency risk- -
Equity risk- -

Registered bank disclosures
Unaudited
Unaudited
Westpac New Zealand Limited 47
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 22
Risk-weighted
Total Exposure
Exposure or
Implied
After Credit
Risk-weightedTotal Capital
$ millions
Risk Mitigation
1
ExposureRequirement
Total credit risk and equity risk128,35557,2584,581
Operational riskN/A5,551444
Market riskN/A2,504200
Total128,35565,3135,225
1
This amount includes $98,997 million for exposures subject to IRB approach and $7,571 million for exposures subject to the slotting approach, being the equivalent
exposure under the standardised approach of $110,618 million EAD for credit risk exposures subject to IRB approach and $8,335 million EAD for specialised lending
subject to slotting approach.
Capital ratios
The following table is disclosed under the Reserve Bank’s Basel III framework in accordance with Clauses 15 and 16 of Schedule 11 to the Order and
represents the capital adequacy calculation based on the Reserve Bank BPRs.
Due to changes in BPRs effective from 1 January 2022, the ratios for the Banking Group at 31 March 2022 are not comparable to 31 March 2021. As at 1
January 2022, the RWA of counterparties in the Bank and Sovereign asset classes are calculated under a standardised approach and the modelled
exposures for IRB banks have had a floor of 85% of the requirement under a standardised approach applied. In addition, existing capital instruments
that have conversion features are no longer fully eligible as capital with 87.5% of the total nominal value of affected instruments recognised as
regulatory capital between 1 January 2022 and 31 December 2022. As at 31 March 2022, only 80% of the total nominal value of the Bank's Tier 2
instrument is being recognised as regulatory capital because the instrument is within four years of its maturity date and the amount of the
instrument that may be recognised in capital ratio calculations during the final four years to maturity must be amortised on a straight-line basis at a
rate of 20% per annum.
For the purposes of calculating the capital adequacy ratios for the Bank on a solo basis, a subsidiary that is not a securitisation SPV must be
consolidated with the Bank if it is a wholly-owned and wholly-funded subsidiary of the Banking Group. 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 the greater of 5% of the subsidiary’s shareholder’s equity and 1% of the subsidiary’s total
assets. 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. An SPV must be consolidated with the Bank if it is required to be consolidated with
the Banking Group under the New Zealand Generally Accepted Accounting Practice and is a covered bond SPV, or an internal RMBS SPV, that is, an
SPV that is set up to securitise residential mortgage loans originated by the Bank and is funded exclusively by the Bank. As at 31 March 2022, the Bank’s
two SPVs have been consolidated in accordance with the Reserve Bank’s new Prudential Requirements for the purposes of calculating solo capital. The
Bank’s ratios at 31 March 2022 are not comparable to 31 March 2021, as the calculation requirements at 31 March 2021 did not include the consolidation
of the Bank’s two SPVs.
THE BANKING GROUPTHE BANK
Reserve Bank
Minimum
%
Ratios31 Mar 2231 Mar 2131 Mar 2231 Mar 21
Common Equity Tier 1 capital ratio4.511.313.411.212.5
Tier 1 capital ratio6.013.316.213.215.0
Total capital ratio8.014.518.214.417.0
Prudential capital buffer ratio2.56.58.9N/AN/A

Registered bank disclosures
Unaudited
Unaudited
48 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 and conduct risk, liquidity risk, reputational risk, sustainability risk, financial crime risk, model risk,
deferred acquisition cost risk, strategic risk, subsidiary risk and cyber risk.
The Banking Group’s internal capital allocation for ‘other material risks’ is $335 million as at 31 March 2022 (31 March 2021: $289 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 2231 Mar 21
Ultimate Parent Bank Group (excluding entities specifically excluded by APRA regulations)
1, 2
Common Equity Tier 1 capital ratio 11.3 12.3
Additional Tier 1 capital ratio 2.1 2.2
Tier 1 capital ratio 13.4 14.5
Tier 2 capital ratio 4.3 3.9
Total regulatory capital ratio 17.7 18.4
Ultimate Parent Bank (Extended Licensed Entity)
1, 3
Common Equity Tier 1 capital ratio 11.2 12.6
Additional Tier 1 capital ratio 2.2 2.2
Tier 1 capital ratio 13.4 14.8
Tier 2 capital ratio 4.7 4.0
Total regulatory capital ratio 18.1 18.8
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, 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, which are at least equal to that
specified under the Basel III capital framework. 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 approach for credit risk, the Standardised Measurement Approach 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 2022.

Registered bank disclosures
Unaudited
Unaudited
Westpac New Zealand Limited 49
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 BS13. 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 2231 Dec 21
Average for the three months ended
One-week mismatch ratio7.45.2
One-month mismatch ratio6.54.5
Core funding ratio84.282.4
Since February 2021, the Bank has identified matters of non-compliance with BS13. Refer to the Conditions of Registration section on page 51 for
further details. The Bank continues to work through the remediation of these matters, with some fully remediated. Matters of non-compliance
identified include two matters reported in the Disclosure Statement for the year ended 30 September 2021, being a coding error in the BS13 liquidity
model which impacted the aggregation of customer deposits and the treatment of lending due to be drawn down where the draw down date and
the principal amount are certain, and one new matter regarding the treatment of cash inflows for loans considered delinquent. For these three
matters, the Bank has adjusted the one-week and one-month mismatch ratios in the table above for the impacts of non-compliance on the affected
periods. The impact of these adjustments reduced the one-week mismatch ratio by 0.6% and one-month mismatch ratio by 0.7% for the quarter
ended 31 December 2021, and the one-week and one-month mismatch ratios by 0.3% for the quarter ended 31 March 2022.
Further, 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 a requirement to discount the
value of the Bank’s liquid assets by approximately 14% which at 31 March 2022 was $3.1 billion. Refer to Other material matters on page 28 for further
detail.

Registered bank disclosures
Unaudited
Unaudited
50 Westpac New Zealand Limited
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 22
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 2022
3
Exceeds 10% and not 15% - -
Exceeds 15% and not 20% - 2
Peak end-of-day aggregate credit exposure for the six months ended 31 March 2022
3
Exceeds 10% and not 15% - -
Exceeds 15% and not 20% 1 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.
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 2022.
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 31. Financial risk included in the Banking Group Disclosure Statement for the
year ended 30 September 2021 for further details on the Banking Group’s risk management policies.
.

Conditions of registration
Westpac New Zealand Limited 51
Material non-compliance with conditions of registration
CoR14 non-compliance
In August 2019 the Reserve Bank commenced a thematic review of compliance with its Liquidity Policy (BS13). On 9 July 2021, the Reserve Bank
provided the Bank with final review findings in relation to the Bank. The findings identified a series of quantitative areas of non-compliance with
BS13 by the Bank which the Reserve Bank considered collectively constituted non-compliance with condition of registration 14 in a material
respect by the Bank. The Bank is undertaking remediation activity to address the identified non-compliance with BS13.
Whilst undertaking remediation activity, the Bank identified two further instances of non-compliance with the Reserve Bank’s Liquidity Policy
(BS13) which individually are not considered material. However, when considered collectively, and in conjunction with the findings from the
Reserve Bank Liquidity review, there remains material non-compliance with condition of registration 14 by the Bank. The non-compliance relates
to a historical methodology error which impacted the treatment of lending due to be drawn down where the draw down date and principal
amount are certain; and a historical coding error regarding the treatment of cash inflows for loans considered delinquent.
Refer to Regulatory Liquidity Ratios on page 49 with reference to the adjustment to the one-week and one-month mismatch ratios.
BS2B non-compliance
During the reporting period, the Bank was non-compliant with condition of registration 1B. The Bank is not fully compliant with operational risk
capital model governance and scenario financial estimate requirements set out in Part B of BPR151 (previously BS2B).
Remediation activity includes the Bank’s transition to the Reserve Bank’s standardised approach for operational risk capital (BPR150). Refer to
Operational Risk on page 46 with reference to the operational risk capital overlay applied by the Bank in respect of these matters.
Material non-compliance with CoR22
Out-of-support software and hardware applications
The Bank allowed outsourcing arrangements for the adequate support of three key software or hardware environments to lapse. Specifically:
For a period of one year and four months, it did not have in place an outsourcing arrangement to ensure adequate support services were
available for software used to comply with the Bank’s anti-money laundering and tax transaction monitoring obligations.
For periods ranging from two and a half to four and a half years, it did not have in place outsourcing arrangements to ensure adequate
support services were available for three instances of software used to automate key business processes for the Bank.
For a period of two and a half years in relation to certain hardware and a period ranging from three and a half to six and a half years for
operating system software, it did not have in place an outsourcing arrangement to ensure adequate support services were available for
certain payment systems operated by the Bank, which support some of the Bank’s payment processing services.
The relevant software and hardware environments ensure high availability of key frontline applications for its retail and business customers. The
failure to renew the above outsourcing arrangements for the support of these software and hardware environments was non-compliant with the
Reserve Bank’s Outsourcing Policy (BS11) and therefore with the Bank’s condition of registration 22.
Despite not having adequate support contracts in place, the Bank either continued to receive support or could have acquired support on a non-
contractual basis. The Bank also had internal teams in place to provide support in the event of issues arising with the software and hardware.
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.
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 a new support agreement for the software application that is the subject of one non-compliance listed above and
remediation work is underway in respect of the remaining non-compliances.
Changes to conditions of registration
The following changes to the Bank’s conditions of registration have occurred between the reporting date for the previous disclosure statement
and the reporting date for this disclosure statement:
With effect from 1 October 2021, all capital ratios have been required to be calculated in accordance with BPR100 and the capital definitions
in BPR110. Transitional AT1 and Transitional Tier 2 instruments have been required to be included in measures of AT1 capital, Tier 1 capital,
Tier 2 capital, and total capital.
With effect from 1 October 2021, a new set of dividend restrictions have applied during banks’ transition to higher capital ratios. Further
percentage limits have applied to payment of dividends of between 50% - 0% of the bank’s earnings where a bank’s prudential capital buffer
is less than 2.5%.
With effect from 1 October 2021, where a bank fails to maintain the full prudential capital buffer, the bank in question will be subject to a
supervisory response from the Reserve Bank. However, a failure by a bank to maintain the full prudential capital buffer will not be deemed to
be a breach of that bank’s conditions of registration.
With effect from 1 October 2021, references to BS2A and BS2B were replaced with the relevant new Banking Prudential Requirements
references (BPR001, BPR131 and BPR133).
With effect from 1 November 2021, LVR restrictions for owner-occupiers were restricted to a maximum of 10% of new lending at LVRs above
80%.
With effect from 1 January 2022, the timing in the conditions of registration wording for the LVR restrictions was clarified.
With effect from 1 January 2022, the minimum requirement for the core funding ratio was increased from 50% to 75%.

52 Westpac New Zealand Limited
Independent auditor’s review report
To the shareholder of Westpac New Zealand Limited
Report on the Disclosure Statement
Our conclusions
We have reviewed pages 7 to 26 and pages 28 (excluding note i of the registered bank disclosures) to 50 of the
Disclosure Statement for the six months ended 31 March 2022 (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 7 to 26 comprise the balance sheet as at 31 March 2022, and 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 responsibilities are further described in the Auditor’s responsibilities 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 agreed upon procedures over
the issue of comfort letters and 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 has 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

Westpac New Zealand Limited 53
Emphasis of Matter
We draw attention to note iv of the registered bank disclosures on page 49 of the Disclosure Statement, in which
the Bank has disclosed matters of non-compliance with the Liquidity Policy (BS13).
The matters of non-compliance were due to a coding error in the BS13 liquidity model which impacted the
aggregation of customer deposits, the treatment of cash outflows from lending due to be drawn down where the
draw-down date and the principal amount are certain and the treatment of cash inflows for loans considered to be
delinquent. The one-week and one-month mismatch ratios as disclosed in the regulatory liquidity ratios have been
adjusted to reflect the impact of these matters of non-compliance. In addition, 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 these matters.
Other Matters
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 28; 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 51.
Directors’ responsibilities 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 the 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 responsibilities 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;
●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
●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 of financial statements and supplementary information 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 and International Standards on Auditing (New Zealand) 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.

54 Westpac New Zealand Limited
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 to the Bank’s shareholder 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 AccountantsAuckland
19 May 2022

Westpac New Zealand Limited 55