Westpac Banking Corporation/Announcement

Westpac 2022 Group Annual Report

Annual Report6 November 2022WBCFinancials

ASX Release

7 November 2022

Westpac 2022 Group Annual Report

Westpac Banking Corporation (“Westpac”) today provides the attached Westpac
2022 Group Annual Report.

For further information:

Hayden Cooper Andrew Bowden
Group Head of Media Relations General Manager, 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

This page has been intentionally left blank.

WESTPAC
2022 ANNUAL REPORT
Westpac
backed

WESTPAC GROUP 2022 ANNUAL REPORT ii

Our reporting suite brings together
the Group’s financial, non-financial,
risk and sustainability performance for
the year. It includes our Annual Report,
Financial Results Announcement,
Presentation and Investor Discussion
Pack, Pillar 3 Report, Sustainability
Supplement and our Corporate
Governance Statement. Access
the full suite online at
westpac.com.au/2022annualreport.
About this report
Westpac’s 2022 Annual Report is
our primary report to shareholders.
It comprises information about our
activities, strategy, and financial
and non-financial results over the
reporting period.
We have continued to integrate
our financial and non-financial
performance, including reporting
our strategic progress under
stakeholder value in our Strategic
Review in this Report.
WESTPAC
2022 ANNUAL REPORT
Westpac
backed
2022 FULL YEAR FINANCIAL RESULTS
FOR THE 12 MONTHS ENDED
30 SEPTEMBER 2022
WESTPAC BANKING CORPORATION
ABN 33 007 457 141
Presentation
and Investor
Discussion Pack
2022
WESTPAC BANKING CORPORATION
ABN 33 007 457 141
Sustainability
Supplement
2022
WESTPAC BANKING CORPORATION
ABN 33 007 457 141
Corporate
Governance
Statement
2022
INCORPORATING THE
REQUIREMENTS OF APPENDIX 4E
WESTPAC BANKING CORPORATION
ABN 33 007 457 141
Full Ye a r
Financial
Results
SEPTEMBER 2022
INCORPORATING THE
REQUIREMENTS OF APS330
WESTPAC BANKING CORPORATION
ABN 33 007 457 141
Pillar 3
Report
In this Annual Report a reference to ‘Westpac’, ‘Group’, ‘Westpac Group’, ‘we’, ‘us’ and ‘our’ is to Westpac Banking Corporation ABN 33
007 457 141 and its subsidiaries unless it clearly means just Westpac Banking Corporation.
For certain information about the basis of preparing the financial information in this Annual Report see ‘Reading this report’ in Section 2.
In addition, this Annual Report contains statements that constitute ‘forward-looking statements’ within the meaning of Section 21E of
the US Securities Exchange Act of 1934. For an explanation of forward-looking statements and the risks, uncertainties and assumptions
to which they are subject, see ‘Reading this report’ in Section 2. Please consider those important disclaimers when reading the forward-
looking statements in this Annual Report.
Information contained in or accessible through the websites mentioned in this Annual Report does not form part of this report unless we
specifically state that it is incorporated by reference and forms part of this report. All references in this report to websites are inactive
textual references and are for information only.
Annual ReportSustainability
Supplement
FY22 Results
Announcement
Investor Discussion
Pack
Corporate Governance
Statement
Pillar 3 Report
Cover image from ‘Westpac backed’ advertising campaign,
November 2022.
Westpac Banking Corporation ABN 33 007 457 141
WESTPAC GROUP 2022 ANNUAL REPORT

WESTPAC GROUP
2022 ANNUAL REPORT
1
STRATEGiC REViEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
Helping Australians
and New Zealanders
succeed.
1 STRATEGIC REVIEW 1
About Westpac 2
FY22 performance overview 4
2022 highlights 6
Chairman’s report 8
CEO’s report 10
Our operating environment 12
Our strategy 14
Our material sustainability
topics 16
Value for shareholders 18
Value for customers 22
Value for employees 26
Value for our community 30
Sustainability 34
Climate change 35
Natural capital 41
Human rights 42
Risk management 44
Corporate governance 52
Directors’ Report 56
Board of Directors 56
Executive team 60
Remuneration Report 70
Information on Westpac 97
Significant developments 97
2 GROUP PERFORMANCE 103
Reading this report 104
Review of Group operations 106
Segment reporting 116
Risk and risk management 134
Sustainability 146
Other Westpac business
information 155
3 FINANCIAL STATEMENTS 159
Financial statements 160
Notes to the financial
statements 166
Statutory statements 286
4 SHAREHOLDER INFORMATION 297
Shareholding information 298
Additional information 304
Glossary of abbreviations
and defined terms 305
Contact us inside back cover
Contents
WESTPAC GROUP
2022 ANNUAL REPORT
1
STRATEGIC REVIEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION

WESTPAC GROUP 2022 ANNUAL REPORT 2

Consumer
Serving consumers in Australia with a full range of banking
products.
$3,291m
 11%
Business
Serving the needs of small to medium businesses and
commercial and agribusiness customers across Australia.
This segment also includes our Private Wealth business,
supporting the needs of high-net-worth individuals.
$918m
 15%
Westpac Institutional Bank (WIB)
Delivering a broad range of financial services to commercial,
corporate, institutional, and government customers
operating in, and with connections to, Australia and
New Zealand.
$687m

$1,220m, large
New Zealand
Delivering banking and wealth services to consumer,
business and institutional customers across New Zealand.
$1,075m

13%
(A$ EQUIVALENT)
Group Businesses
Comprising our head office and Australian support
functions including treasury, customer services and
technology, corporate services, and enterprise services.
$28m

$39m, large
Specialist Businesses
Bringing together non-core businesses that we ultimately
plan to divest. These currently include superannuation,
platforms and investments, along with our operations in Fiji
and Papua New Guinea
1
. For part of the year, the segment
included the Group’s motor vehicle dealer finance and
novated leasing businesses and Westpac Life Insurance
Services Limited (Australian life insurance) which were sold
during the year. We expect to complete the sale of Advance
Asset Management and successor funds transfer of BT’s
personal and corporate superannuation funds in FY23.
($723m)
 $885m, large
Total
$5,276m
 1%
About Westpac
Westpac is one of four major banks in Australia and one of five major
banks in New Zealand – and supports over 12.7 million customers.
We have branches and controlled entities
throughout Australia, New Zealand and the Pacific
region, and maintain branches and offices in
London, New York and Singapore. We are also
opening an office in Frankfurt in 2023.
Founded in 1817, we are Australia’s first bank and
oldest company. We were established as the Bank
of New South Wales in Sydney before expanding
across Australia, New Zealand and the Pacific.
Over time, we continued our expansion, acquiring
several banks and growing our network across the
region. In 1982, we changed our name to Westpac.
In 2008, we completed a merger with St.George
Bank (in which we acquired the brands of
St.George and BankSA). We relaunched the
Bank of Melbourne brand in 2011.
Over the last few years, we have simplified our
business. We have sharpened our focus on banking
for Australian and New Zealand consumer, business
and institutional customers. We have exited seven
non-core businesses, consolidated our international
presence and simplified our operations.
1. We are not expecting to sell the Pacific business in the short to medium term.
WESTPAC GROUP 2022 ANNUAL REPORT
2

WESTPAC GROUP
2022 ANNUAL REPORT
3
STRATEGiC REViEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION

Consumer
Serving consumers in Australia with a full range of banking
products.

 11%
Business
Serving the needs of small to medium businesses and
commercial and agribusiness customers across Australia.
This segment also includes our Private Wealth business,
supporting the needs of high-net-worth individuals.
$918m
 15%
Westpac Institutional Bank (WIB)
Delivering a broad range of financial services to commercial,
corporate, institutional, and government customers
operating in, and with connections to, Australia and
New Zealand.
$687m

$1,220m, large
New Zealand
Delivering banking and wealth services to consumer,
business and institutional customers across New Zealand.
$1,075m

13%
(A$ EQUIVALENT)
Group Businesses
Comprising our head office and Australian support
functions including treasury, customer services and
technology, corporate services, and enterprise services.
$28m

$39m, large
Specialist Businesses
Bringing together non-core businesses that we ultimately
plan to divest. These currently include superannuation,
platforms and investments, along with our operations in Fiji
and Papua New Guinea
1
. For part of the year, the segment
included the Group’s motor vehicle dealer finance and
novated leasing businesses and Westpac Life Insurance
Services Limited (Australian life insurance) which were sold
during the year. We expect to complete the sale of Advance
Asset Management and successor funds transfer of BT’s
personal and corporate superannuation funds in FY23.
($723m)
 $885m, large
Total
$5,276m
 1%
Market share
Australia
Household deposits
2
20%
Mortgages
3
21%
Business credit
3
15%
New Zealand
Consumer lending
4
18%
Deposits
4
18%
Business lending
4
16%
1. See cash earnings definition on the following page of this Report.
2. APRA Banking Statistics, September 2022.
3. RBA Financial Aggregates, September 2022.
4. RBNZ, September 2022.
WESTPAC GROUP
2022 ANNUAL REPORT
3
STRATEGIC REVIEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION

WESTPAC GROUP 2022 ANNUAL REPORT 4

Net interest income17,16116,858
2
Non-interest income2,4454,364(44)
Net operating income19,60621,222
(8)
Operating expenses(10,802)(13,311)(19)
Net profit before impairment charges and income tax8,8047,911
11
Impairment (charges)/benefits(335)590large
Profit before income tax8,4698,501
–
Income tax expense(2,770)(3,038)(9)
Net profit for the period5,6995,463
4
Profit attributable to non-controlling interests (NCI)(5)(5)–
Net profit attributable to owners of WBC5,6945,458
4
Total cash earnings adjustments (post tax)(418)(106)
large
Cash earnings5,2765,352
(1)
Add back notable items (after tax)1,2921,601(19)
Cash earnings excluding notable items6,5686,953
(6)
FY22 performance
overview
Reported net profit attributable to owners of Westpac ($m)
In Full Year 2022 (FY22), we recorded a net profit
attributable to the owners of Westpac of $5,694 million,
an increase of 4% on Full Year 2021 (FY21).
The higher net profit was principally due to lower notable
items and a reduction in expenses, partly offset by a
turnaround in impairment charges (charge in FY22
compared to a benefit in FY21) and lower non-interest
income reflecting the loss of earnings from divestments.
While notable items (large infrequent items that do not
reflect ongoing business performance) were lower, their
earnings impact remained high at $1,292 million in FY22.
The main notable item this year was the loss on sale of
Australian life insurance.
In FY22, there was a credit impairment charge of
$335 million compared to a $590 million benefit in FY21,
a $925 million turnaround. The impairment charge in FY22
was the equivalent of 5 basis points of loans which is low
relative to long-term trends. The impairment benefit in
FY21 followed the unwinding of provisions established at
the beginning of COVID-19, which were not required.
Net interest income was up 2% with an 8% increase in
average interest-earning assets partly offset by a 13
basis point reduction in the net interest margin. Within
average interest earning assets, lending was up 4%, while
third party liquid assets increased 33%. The increase in
liquid assets was due to the need to hold more funded
liquid assets from the phase out of the Reserve Bank of
Australia’s (RBA) committed liquidity facility (CLF). Lower
margins were mostly due to intense competition across
mortgages and business lending but were also impacted
by the significant increase in low returning liquid assets.
Improved deposit spreads and higher fair value gains on
economic hedges partly offset these impacts.
Non-interest income was lower from the loss on the sale
of Australian life insurance and the income foregone from
business exits. Expenses were lower from fewer notable
items, a 7% reduction in FTE, less spending on third-party
services, consolidation of our corporate locations and
branch networks and the completion of elements of our
Fix agenda.
Credit quality improved over the year with stressed assets
as a percentage of our total committed exposures falling to
1.07% from 1.36%. Mortgage delinquencies were also down.
Westpac had an income tax expense of $2.8 billion for
FY22, with an effective tax rate of 33%. Including the bank
levy our adjusted effective tax rate was 35%.
The Group’s common equity tier 1 ratio of 11.3% is above
APRA’s unquestionably strong benchmark of 10.5%. The
ratio was lower than FY21 following our $3.5 billion buy-
back and higher risk weighted assets.
The table below and the commentary above is our
reported results.
In assessing performance, we use ‘cash earnings’ – a
measure of profit determined by adjusting reported
earnings by three factors:
1. Material items that do not reflect ongoing performance.
2. Items that may not be considered when determining
dividends including the amortisation of intangible items,
treasury shares or economic hedging impacts.
3. Accounting classifications between individual items that
do not impact reported results.
The charts on the right show reported earnings and the
movements in cash earnings along with selected metrics.
WESTPAC GROUP 2022 ANNUAL REPORT
4

WESTPAC GROUP
2022 ANNUAL REPORT
5
STRATEGiC REViEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
($m)
Cash earnings FY22 – FY21 ($m)
Gross lending ($bn)
Dividends per ordinary share (cents)
Net interest margin (%)
Strong balance sheet (%)
16.50
11.13
Common equity tier 1 capital ratio
APRA basis Internationally comparable
Sept 20Sept 21Sept 22
12.32
18.17
11.29
17.57
2.04
1.87
2.08
NET INTEREST MARGIN (%)
Cash earnings basis
FY20FY21FY22
GROSS LENDING ($bn)
Sept 20Sept 21
714
699
744
Sept 22
FY21Add back
notable
items
FY21
ex-notable
items
FY22
ex-notable
items
Notable
items
Net
interest
income
Non-
interest
income
ExpensesImpairment
charges
Tax
& NCI
FY22
6,953
766
19
(518)
(925)
273
6,568
(1,292)
5,276
5,352
1,601
Down 6% ex-notable items
Down 1%
2,608
2,290
5,352
5,458
5,276
5,694
Reported profit Cash earnings
FY20FY21FY22
CONTRIBUTION OF NET OPERATING INCOME BY DIVISION
(%)

Consumer
Business
WIB
Westpac NZ (in A$)
Specialist Businesses
Group Businesses
50
18
13
12
2
5
DIVIDENDS PER ORDINARY SHARE (cents)
FY20FY21
58
31
31
60
118
148
61
64
125
FY22
1H2H
Contribution of net operating income by segment
(%)
WESTPAC GROUP
2022 ANNUAL REPORT
5
STRATEGIC REVIEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION

WESTPAC GROUP 2022 ANNUAL REPORT 6


6% or 7 cents per share
(Final dividend of 64 cents per share)
Common equity tier 1 capital ratio
11.3%
comfortably above regulatory minimum
Total shareholder return

16%
Total shareholder return declined 16% from overall
market declines and share price weakness following
our FY21 result
Cash earnings return on equity
7.5%
Cash earnings per ordinary share
148.0 cents
up 1%
Lending Customer deposits

$30bn

$33bn
Customer franchise improved with Australian
consumer net promoter score (NPS) higher over the
year, although overall level is below major bank
competitors
94%
of complaints, on average, resolved at first point
of contact
Digital enhancements:
– Completed roll-out of new mobile app
– Launched new online personal financial
management features
Increased security to help protect customers:
– Blocking transactions to suspect merchants
– Stopping impersonation of Westpac Australia
phone numbers
– Fraud reduced by 80% when dynamic
CVC was used
Supported
1,600+
customers through floods
Provided over
$66m
in COVID-19 relief packages since 2020
WESTPAC GROUP 2022 ANNUAL REPORT
6

WESTPAC GROUP
2022 ANNUAL REPORT
7
STRATEGiC REViEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION

Enhancing workplace policies:
– Increased paid parental leave entitlements
– Special paid leave and support for
pregnancy loss
$5.9bn
paid to our people
2/3
of employees who voted in the 2023 Australian
Enterprise Agreement voted yes
$3.1bn
Income tax expense, including the bank levy
Launched our fifth Reconciliation Action Plan
– recognised at the highest ‘Elevate’ level by
Reconciliation Australia
Launched fifth Climate Change Position Statement
and Action Plan
Joined Net-Zero Banking Alliance and set
2030 targets for five emissions-intensive sectors
in our lending portfolio
Largest bank lender to greenfield renewable
projects in Australia over past five years
2
Westpac Scholars Trust awarded
$4.6m
3
in scholarships to 100 scholars
$136m
in community investment
EmployeesCommunity
1. Women in Leadership refers to women in leadership roles across the Group. It includes the CEO, Group Executives, General Managers, senior leaders with
significant influence on business outcomes (direct reports to General Managers and their direct reports), large (3+) team people leaders three levels below
General Manager, and Bank and Assistant Bank Managers.
2. IJGlobal and Westpac research data.
3. Westpac Scholars Trust (ABN 35 600 251 071) is administered by Westpac Scholars Limited (ABN 72 168 847 041) as trustee for the Westpac Scholars
Trust. Westpac Scholars Trust is a private charitable trust and neither the Trust nor the Trustee are part of Westpac Group. Westpac provides administrative
support, skilled volunteering and funding for operational costs of Westpac Scholars Trust. Awarded scholarships include co-funding from university
partners.
WESTPAC GROUP
2022 ANNUAL REPORT
7
STRATEGIC REVIEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION

WESTPAC GROUP 2022 ANNUAL REPORT 8

Investors will recall when I took up
the post as Chairman in April 2020,
I gave a comprehensive statement
of the Company’s situation, which
was concerning, and set out the
program we needed to bring the
Company back to full fitness and
vitality.
Two-and-a-half difficult years of
restructuring have now passed.
This included the exit of non-core
businesses, comprehensive risk
reduction, product and process
simplification and appropriate
credit provisioning, as well as
significant cost reduction. I’m
pleased that the actions we took
during that period, together with
a more supportive economic
situation for banking from higher
interest rates despite a weaker
economy, and further cost
reduction opportunities, all place
the Company in a stronger position
for the future.
Given this and the extent of
digitisation in the sector, it
therefore remains important that
we work to a low 40s expense to
income ratio over time which, given
the softer near-term economic
growth scenario, implies further
revenue growth and cost reduction.
We have now successfully
strategically repositioned the
Company to focus on our natural
strengths in commercial banking,
focused on Australia and New
Zealand. We announced the
exit of nine out of 11 businesses
and completed the sale of seven
of these. Overseas, we’ve also
consolidated into New York,
London, and Singapore and
are soon to open in Frankfurt.
This year from a shareholder
standpoint, financial performance
was relatively flat over the prior
year. On a statutory basis net profit
was up 4%. Solid progress was
made on cost reduction, though a
little less than planned. The results
of the cost program and lower
notables saw the statutory expense
to income ratio reduce from 63% to
55%. A particular highlight was the
increase in statutory earnings per
share by 7% which benefited from
the share reduction following our
$3.5 billion buy-back.
Turning to earnings on a cash
earnings basis, the Company’s
preferred measure, core earnings
rose 6%, with the substantial
increase in impairment charges to
take account of the deteriorating
economic environment leading to
a 1% reduction in cash earnings
for the year. Excluding notable
items, operating income fell 2%
but expenses were 7% lower,
generating an expense to income
ratio of 51% on a cash earnings
basis. Importantly, rising rates
helped to arrest the decline in net
interest margin which in the first
half had fallen to 1.85% but rose to
1.90% in the second half.
The Group remains well capitalised.
When considering dividends, the
Board focuses on cash earnings
but also looks through selected
irregular large items. This led to
the Board determining a final
dividend of 64 cents per share and
total of 125 cents per share fully
franked for the year, an increase
of 6%, just ahead of statutory
profit growth. This represents a
dividend yield of 6%, excluding
franking, based on the closing
share price on 30 September 2022.
The final dividend is expected to
be paid on 20 December 2022, for
shareholders on the register on
18 November 2022.
We also managed to arrest the
last few years’ decline in market
position in our core businesses,
of institutional, business, and
consumer banking. In mortgages,
we reduced our decision time for
customers through our branch
and mortgage specialists, which
is now broadly in line with major
bank competitors. As a result, we
grew mortgages around the major
bank system in the second half.
New Zealand continued to perform
well and is working to resolve
errors of the past.
We made significant progress
on the journey to create a
digital bank for consumers and
small businesses. This included
completing the roll-out of our
new Westpac consumer app and
launching a digital mortgage.
Chairman’s
report
8
WESTPAC GROUP 2022 ANNUAL REPORT

WESTPAC GROUP
2022 ANNUAL REPORT
9
STRATEGiC REViEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION

John McFarlane
CHAIRMAN
WESTPAC GROUP
2022 ANNUAL REPORT
9
STRATEGIC REVIEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION

WESTPAC GROUP 2022 ANNUAL REPORT 10

Westpac delivered a solid financial
result for Full Year 2022 (FY22)
and made steady progress on our
strategic priorities. We sharpened
our focus on core banking,
strengthened risk management,
improved service to customers, and
are positioning the Company for
growth – all of which help to build
long-term value for shareholders.
Our people have embraced the
changes we’re making. They have
worked with customers during
the pandemic and through recent
natural disasters. We will continue
to help customers as we navigate
the uncertainties ahead.
Turning to the external environment,
2022 saw significant economic and
geopolitical change and I know it
has affected many of you. While
we are now living with COVID-19,
a new challenge has emerged with
the global economy entering a
period of high inflation, with central
banks responding with a fast
increase in interest rates globally.
The effects of these changes have
not yet fully rippled through the
economy but have contributed to
a more uncertain outlook in 2023
for many.
A simpler, stronger bank
We have made meaningful
progress on the Fix, Simplify,
Perform strategic priorities which
we set two years ago.
Fix
As part of our Fix agenda, we are
improving risk management by
investing in systems and processes
and transforming our culture. We
have worked through a number
of historical issues, resolved a
number of regulatory proceedings
and completed major customer
remediation programs. This has
included further investment in our
financial crime capabilities and
systems.
Our CORE program is driving much
of the change in our management
of risk. Established in 2021, the
multi-year program brings together
350 activities aimed at improving
our end-to-end practices,
simplifying processes and creating
clearer accountabilities. The
program is on track and we have
completed 271 activities. Our focus
is now to implement and embed
the changes in our business.
Simplify
Our Simplify priority is reshaping
Westpac with a more focused
portfolio of businesses based
on banking in Australia and New
Zealand. This year, we completed
the exit of our insurance operations
and sold our wholesale auto finance
book. As the Chairman outlined,
we have exited, or announced the
sale of, nine businesses and we are
well progressed on consolidating
our Asian presence into a single
Singapore hub.
The simplification drive is also
making it easier for customers and
employees. This year we further
refined our operating model by
decentralising corporate functions
– which has moved around 2,000
people from our central teams to
be closer to the customers they
support. We have consolidated
1,700 roles as part of this change
and now have a smaller head office
with 93% of our people working in
divisional or shared service teams.
Digital is the main way customers
and bankers access services,
with over 90% of transactions
conducted online or over the
phone.
We understand the importance of
face-to-face banking for many and
are updating our systems to allow
any Westpac Group customer to
bank at any of our branches. This
will enable St.George customers
to use Westpac branches and
vice versa. These changes have
supported the co-location of two
branches under one roof. We now
have 27 co-located branches with
plans for a further 100 over the
next year. We have also extended
our relationship with Australia Post,
signing a 10-year agreement that
maintains physical banking at an
additional 3,500 locations across
Australia.
We’ve made meaningful digital
advancements this year, finalising
the roll-out of our new Westpac
app and integrating tools into
the app to help customers better
manage their finances. Over
5 million customers now regularly
use our online services.
CEO’s
report
10
WESTPAC GROUP 2022 ANNUAL REPORT

WESTPAC GROUP
2022 ANNUAL REPORT
11
STRATEGiC REViEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION

Perform
Our Perform priority is geared to
strengthening returns by growing
profitably, reducing costs and
improving our capital efficiency.
This year, our statutory profit was
$5.7 billion, up 4% on the prior year,
although it was depressed by large
notable charges. The significant
notable this year was the $1.1 billion
loss on the sale of our Australian
Life Insurance business. Having
resolved a number of historical
issues we expect notable items to
reduce next year.
Cash earnings was 1% lower,
reflecting a $925 million
turnaround in impairment charges.
The turnaround was due to an
impairment charge of $335 million
in FY22, while in FY21 it was a
$590 million benefit. Core earnings
rose 6% as growth in our banking
portfolio more than covered
the loss of earnings from the
businesses we have sold.
We’ve improved our underlying
franchise and reduced costs while
maintaining the strength of our
balance sheet. Our capital position
is within our operating range of
11% to 11.5% that applies from the
start of 2023 and our funding and
liquidity metrics are comfortably
above regulatory minimums. Our
lending portfolio is also sound
with key measures of credit quality
better than pre-COVID-19 levels.
At the start of the year, we set out
to grow our mortgage book in line
with the overall major bank system
and improve growth in business
and institutional lending. In 2022,
our Australian business lending
increased 15%, growing strongly in
infrastructure, financing, property
and sustainable finance.
But mortgage growth was lower
than our targets. While owner
occupied lending grew, investor
lending contracted, and our
3% growth in total Australian
mortgages was below financial
system mortgage growth of
closer to 7%. We need to finalise
system and process changes to
consistently grow in line with
our targets.
Prospects for growth are
underpinned by service and
customer outcomes. Service levels
improved this year, but we still lag
our peers. This was also reflected
in our Net Promoter Score (NPS)
where improvements weren’t as
extensive as we’d set out to deliver.
As we digitise more services, we
are confident that the customer
experience will be better and more
consistent, and this will be reflected
in our future service and NPS results.
Our people are also instrumental
to our transformation. We measure
the progress on our culture
reset through our Voice+ survey
which includes McKinsey’s global
‘Organisational Health Index’ (OHI)
run independently. This year, our
Group OHI score was 75, up one
point over the year. Our score was
above global and Australian/New
Zealand medians, and just shy of
the 2022 global top quartile score
of 76. Given the disruption caused
by our organisational changes, this
was pleasing.
Sustainability
As a bank and Australia’s oldest
company, we have a responsibility
to work towards a better future.
Our long-standing commitment to
acting on climate change continued
as we joined the Net-Zero Banking
Alliance (NZBA) and continued
our work to align our operations
and lending portfolio with net-zero
by 2050. So far, we have released
2030 targets for five emissions-
intensive sectors in our lending
portfolio and expect to release
additional targets over the next
three years.
Sustainable finance grew,
participating in 69 transactions
in our institutional bank through the
year. We see further opportunities
to invest in the transition and are
increasing the capability of our
people to respond.
Supporting reconciliation remains
a priority and this year we released
our fifth Reconciliation Action
Plan (RAP). Our Elevate RAP lays
out our vision for reconciliation
by focusing on where we can
make the biggest difference.
We seek to continue to make
banking easier for Aboriginal and
Torres Strait Islander customers,
expand career development and
leadership pathways and back
Indigenous enterprises. We have
also reinforced our support for the
Uluru Statement from the Heart
which we see as a credible path
to reconciliation.
Supporting customers
We are charting our way through
an economic environment of
surging global inflation and
fast increases in interest rates.
The Ukrainian-Russian war has
disrupted energy and food markets
which has particularly led to higher
energy costs for consumers and
businesses.
So far, customers are proving
resilient to these dynamics.
For example, 68% of mortgage
customers are ahead of their
repayments and the level of stress
in the portfolio is below September
2018 levels. However, it is inevitable
that customers will gradually feel
the impact of higher interest rates
and this will be a headwind for
the economy in 2023. As ever, we
are on standby to help customers
impacted by these developments.
Our people once again have
stepped up to the challenges
and their support for customers
remains constant. They are the
beating heart of Westpac and on
behalf of myself and the executive
team, I would like to thank them.
Finally, I am grateful to
shareholders for your continued
support. We are working hard to
build the long-term value of your
Company.
Peter King
CEO
WESTPAC GROUP
2022 ANNUAL REPORT
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WESTPAC GROUP 2022 ANNUAL REPORT 12

External environment
2022 was a year of two halves. It
began positively as we emerged
from COVID-19 with activity
recovering and markets re-opening.
Midway through, the outlook
changed as the Ukrainian-Russian
war, supply chain constraints,
higher inflation and rapidly rising
interest rates began to temper
growth expectations and increase
uncertainty.
Westpac’s operating environment
also changed through 2022.
Early in the year, the global and
Australian economies began to
recover as COVID-19 restrictions
unwound, and the significant
stimulus measures applied by
central banks and governments
rolled through. Record low interest
rates, cash support payments
and the gradual re-opening
of domestic economies and
international borders saw a sharp
rebound in economic growth. The
economy also benefitted from
falling unemployment and higher
consumer and business confidence.
This contributed to rising credit and
deposit growth.
By March 2022, the operating
environment was changing. The
collision of stimulatory monetary
policy and supply chain disruptions
boosted inflation. This was
exacerbated by Russia’s invasion
of Ukraine. The rapid rise in
inflation saw interest rates rise as
markets reacted and central banks
tightened monetary policy. The
speed of these moves increased
market volatility and added
uncertainty to the outlook.
At the end of our financial
year, the impact on businesses
and consumers was only just
being felt. Although residential
property prices had softened,
unemployment remained low while
spending and investment held up.
At the time of writing, Australian
GDP growth is around 3.6% per
annum. Unemployment is at
generational lows of 3.5% and
inflation is uncomfortably high
at 7.3%.
In 2022, these conditions have
been broadly supportive for our
business. System credit growth
has increased, rising interest rates
have been positive for net interest
margins, and asset quality has
improved. However, higher inflation
and low unemployment is placing
pressure on wages, particularly
in high demand areas such as IT,
cyber security and risk. Global
financial markets have also been
volatile and competition for lending
remains intense.
We continue to analyse these
conditions closely, including the
impact of rising interest rates
on customers, and the flow-on
effects of higher inflation. We have
no direct exposure to Ukraine
or Russia and our simplification
program has reduced our exposure
outside Australia and New Zealand.
We have considered the impact of
these developments in our credit
provisions.
Competition
Banking across Australia and
New Zealand continues to remain
highly competitive across price,
engagement, and innovation.
Low interest rates and high
market liquidity increased access
to funding and supported price-
based competition for lending
by both banks and non-banks,
particularly in two of our largest
segments, mortgages and small
business lending. While this
period of relatively easy access to
funding has now largely passed,
this has not been accompanied by
any weakening in competition. If
anything, deposit competition has
become more intense.
While innovation in fintech
continues, new market entrants
have generally experienced lower
equity valuations and less owner
support. This has contributed to
some industry consolidation.
An active broker market and new
technologies have also contributed
to competition, allowing consumers
and businesses to easily compare
offers and to apply for faster bank
and non-bank lending.
Outlook
In 2023, we expect lower growth
and higher interest rates, which will
have adverse effects on customers.
However, the impact of rising
interest rates in Australia and New
Zealand has yet to be fully felt by
borrowers, and it is unclear how
much this will impact spending
patterns, investment behaviour
and asset quality.
The quality of our lending portfolio
is sound. We are well provisioned
thanks to our disciplined credit
assessment.
Nevertheless, higher interest rates
will inevitably impact businesses
and consumers. As a result, some
customers will experience a
heightened level of stress. We are
well placed to meet the cost of this
stress and to support customers
facing hardship.
WESTPAC GROUP 2022 ANNUAL REPORT
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FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION

Westpac 2023 outlook
In Full Year 2023 (FY23), Westpac
is looking to grow lending broadly
in line with our major bank peers,
particularly given the plans we
have in place in mortgages and the
better growth we achieved in 2022
across business, commercial and
institutional lending. The level of
growth will depend on the flow-on
effects of higher interest rates and
the expected decline in property
prices.
Higher interest rates are likely
to support net interest margins,
although these benefits are
expected to be tempered by
continuing competition across
both loans and deposits, and the
need for additional term wholesale
funding.
Non-interest income in FY23
will continue to be impacted
by the exit of businesses. Over
FY22, we completed the sale of
three businesses. A further two
transactions have been announced
but are yet to complete. We are
also working on the sale of other
businesses.
In 2023, expenses are expected
to be lower as we work to reduce
our cost base to $8.6 billion by
FY24. This is revised from our
previous target of $8 billion given:
higher inflation, persistence of high
regulatory and compliance costs,
our need to maintain investment
in digital and because business
exits will not be finalised by FY24.
Our revised target excludes our
Specialist Businesses segment
which contains the businesses
we initially planned to exit along
with some major notable items.
Achieving the target assumes
inflation eases from its current
levels (consistent with Westpac
Economics’ forecasts), we
complete several critical regulatory
and compliance projects and that
we continue to improve efficiency.
It also excludes new acquisitions
and any significant rise in expenses
from uncertain or not fully scoped
matters, including mandatory
regulatory or compliance
investment.
In FY22, impairment charges were
relatively small, reflecting sound
asset quality and an improvement
in economic fundamentals.
Nevertheless, we set our credit
provisions recognising the
changing landscape. At
30 September 2022, provision
levels were still 18% above pre-
COVID levels, despite Westpac
having reduced lending to some
higher risk sectors, including
unsecured personal lending. In
FY23, impairment charges will
likely rise as consumer and business
stress increases from higher
interest rates, easing economic
growth, rising unemployment and
lower residential property prices.
With new capital rules being
finalised and because our
September 2022 CET1 capital ratio
of 11.3% is within our preferred
range of 11.0% to 11.5%, we currently
do not have surplus capital.
While improving our management
of risk remains a priority, we
expect to direct more resources
to strengthening our customer
franchise and growing our
businesses through improved
service and enhanced products
and services. This will include
continuing to simplify our
operations via digitisation.
With a sharper focus on banking
in our core markets of Australia
and New Zealand, a strong balance
sheet and a highly committed
team, we are well placed to see
these plans through and improve
the strength of our franchise.
WESTPAC GROUP
2022 ANNUAL REPORT
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WESTPAC GROUP 2022 ANNUAL REPORT 14

Address outstanding issues
— Risk management
— Risk culture
— Customer remediation & pain points
— IT complexity
Simplify
Streamline and focus the business
— Exit non-core businesses and consolidate
international
— Reduce products, simplify fees
— Lines of Business operating model
— Transform using digital and data to
enhance the customer experience
Our purpose
Helping Australians
and New Zealanders
succeed.
Our focus
Banking for Australian and
New Zealand consumers, businesses
and institutional customers.
We all own risk at Westpac
Employees are key to strengthening the
management of risk across Westpac.
See the shareholder value section of this Report.
New technology makes business easier
Our EFTPOS Air app turns an Android phone
into a payments terminal for businesses.
See the customer value section of this Report.
Our values
Our five values (or HELPS)
– guide the way and help us
achieve our purpose.
HELPFUL
Passionate about
providing a great
customer experience
ETHICAL
Trusted to do
the right thing
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Sustainable long-term returns
— Customer service – market leading
— Growth in key markets
— Reset cost base
— Enhance returns, optimise capital
— Strong balance sheet
— Climate change – focus on net-zero
Tapping into technologists in
regional areas
Our technology hub on Queensland’s Gold Coast
opened this year.
See the employee value section of this Report.
LEADING CHANGE
Determined to make it
better and be better
PERFORMING
Accountable to
get it done
SIMPLE
Inspired to keep it
simple and easy
Stakeholder outcomes
Shareholders
148 cents
1
earnings per
share
125 cents dividends per
share
Customers
$613bn in customer
deposits
$740bn in lending
Employees
$5.9bn paid to
employees
50% Women in
Leadership roles
2

Communities
$136m in community
investment
Fifth Reconciliation
Action Plan
The economy
35% effective tax rate,
including the bank levy
$3.1bn income tax
expense, including the
bank levy
Suppliers
$7.1bn total supply
chain spend
$8.8m spent with
Indigenous Australian
suppliers
Environment
Over $1.9bn new
lending to climate
change solutions
Updated climate change
position statement and
action plan
1. On a cash earnings basis.
2. Refer to the 2022 highlights section of this Report for definition.
WESTPAC GROUP
2022 ANNUAL REPORT
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WESTPAC GROUP 2022 ANNUAL REPORT 16

Our sustainability materiality
assessment process
Every year, we conduct a sustainability materiality
assessment where we engage with internal and
external stakeholders to determine our most material
sustainability topics to be included in our sustainability
reporting.
Materiality in the context of our sustainability reporting
is based on the definition from the updated Global
Reporting Initiative (GRI) Material Topics Universal
Standards 2021. Materiality according to GRI is
defined by the significance of the impacts of our
business activities on the economy, environment,
and people, including impacts on their human rights.
This year, in consideration of global sustainability
reporting developments, we enhanced our approach
to further consider the information needs of financial
stakeholders.
Topics identified under our sustainability assessment
are material for the purposes of our sustainability
reporting. They do not necessarily represent matters
which would be considered material for the purposes
of financial statement reporting which is determined in
accordance with accounting standards
Our 2022 material topics are reported into two areas:
—Sustainability topics included in the Annual
Report: Important to the primary users of general-
purpose financial reporting including investors (but
not necessarily considered material in the context of
dedicated financial statement reporting).
—Sustainability topics included in the Sustainability
Supplement: These are other sustainability topics
relevant to a broader group of stakeholders such as
our customers, employees, or communities.
Identification of sustainability impacts and
material topics
We identified our sustainability-related impacts based
on several sources, such as:
—interviews with employees, executives and external
members of Westpac’s Stakeholder Advisory
Council
1
—Strengths, Weaknesses, Opportunities, and Threats
(SWOT) analysis on topics relevant to Westpac
—review of strategy papers, company policies, and
reporting disclosures
—media review, industry surveys, sustainability
reporting standards, investor reports and analysis
—review of sustainability-related risks recorded
within Westpac’s integrated risk and compliance
management system.
In total, 85 impacts were identified, which were then
assessed, consolidated and prioritised to identify
our list of material topics for the purposes of our
sustainability disclosures.
Assessment and prioritisation of
sustainability material topics
We assessed and prioritised the impacts of our
activities on the economy, environment, and people
by using Westpac’s integrated risk management and
compliance systems. We mapped negative impacts
identified in our sustainability assessment to the risks
currently within our integrated risk and compliance
management system in order to extract relevant
severity and likelihood information. Positive impacts
were assessed independently using Westpac’s Risk and
Control Assessment Policy. All positive and negative
impacts with an Inherent Risk Rating
2
of ‘High’ or
‘Very High’ were deemed significant according to the
GRI definition of sustainability reporting materiality,
and consolidated into 16 material topics in the
table opposite.
In assessing our sustainability topics relevant to our
Annual Report and our investors, we considered the
financial impact base amount associated with the
list of actual or potential negative impacts identified
and selected those above a certain monetary
threshold. We added talent attraction and retention,
inclusion and diversity and digital transformation
as additional material topics useful to the primary
users of general-purpose financial reporting, based
on their potential opportunity for our business.
1. The Stakeholder Advisory Council is a forum for a range of external stakeholders to provide insights and feedback to our executives and sustainability leaders
on Westpac’s approach to sustainability.
2. We calculated the Inherent Risk rating based on the highest Inherent Impact and Likelihood rating, as per Westpac Risk Rating Matrix.
WESTPAC GROUP 2022 ANNUAL REPORT
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FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION

Financial risk
management
Section 3
Note 22
Tax transparency
Section 3
Note 7
Climate change
and the net-zero
transition
Section 1
Climate Change
and Section 2
Sustainability
Environmental
impact
Section 1
Natural Capital
Work culture
Section 1
Employees
Talent attraction
and retention
Section 1
Employees
Inclusion and
diversity
Section 1
Employees
Ethics and
business conduct
Refer to Corporate
Governance
Statement
AML/CTF risk
management
1

Section 2
Risk factors
Human rights
Section 1
Human RIghts
Data privacy and
security
Section 1
Customers
Digital
transformation
Section 1
Customers
Social licence and
community
Refer to 2022
Sustainability
Supplement
Indigenous
reconciliation
Refer to 2022
Sustainability
Supplement
Marketing and
communications
Refer to 2022
Sustainability
Supplement
Emerging ESG
opportunities
Refer to 2022
Sustainability
Supplement
Topics that have significant positive or negative impacts on the economy, environment and people
Sustainability topics included in the Annual Report
Topics useful to the primary users of general-purpose financial reporting
Sustainability topics included in the Sustainability Supplement
Topics useful to a broader group of stakeholders
FY22 material sustainability topics
WESTPAC GROUP
2022 ANNUAL REPORT
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WESTPAC GROUP 2022 ANNUAL REPORT 18

Shareholders
We aim to improve value for
shareholders by growing our
customer franchise, strengthening
returns, reducing risk, and optimising
our capital position while maintaining
a strong balance sheet.
18
WESTPAC GROUP 2022 ANNUAL REPORT

WESTPAC GROUP
2022 ANNUAL REPORT
19
STRATEGiC REViEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION

In FY22 we returned $7.8 billion
to shareholders by paying fully
franked dividends and completing
a $3.5 billion off-market share buy-
back. Dividends for the year were
up 7 cents per share, or 6%. This
year’s payout ratio is 83% on a cash
earnings basis, and 67% excluding
notable items.
While dividends were higher, our
share price was lower and so the
Group’s total shareholder return
(TSR) declined 16% over FY22.
The decline in Westpac’s TSR
compared to a decline of 14%
in the S&P ASX All Ordinaries
accumulation index over the
same period.
Most of our relative share price
underperformance occurred in
November 2021 in the weeks
following the announcement of our
FY21 results. Feedback from market
participants on reasons for the
decline was that our net interest
margins appeared weaker than
peers and the increase in costs over
FY21 was seen as being contrary
to our commitment to reduce our
cost base.
We have worked to address these
issues. Through FY22, costs have
been lower and margins, while
down over the year, increased in
the second half.

Cash earnings per ordinary share
(cents)
Cash earnings basis
Dividends per ordinary share
(cents)
CASH EARNINGS PER ORDINARY SHARE (cents)

FY18FY19FY20FY21FY22
148
266
198
73
146
DIVIDENDS PER ORDINARY SHARE (cents)
FY18FY19FY20FY21FY22
31
31
61
64
125
94
94
188
94
80
174
58
60
118
AUSTRALIAN SHAREHOLDERS
672,589
FY22 DIVIDEND
125 cents
1H2H
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2022 ANNUAL REPORT
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WESTPAC GROUP 2022 ANNUAL REPORT 20
Growing our customer
franchise
A strong banking customer
franchise is vital to our long-term
prosperity. This can be measured
by how we serve customers,
including across deposits and
lending, and the quality of our
customer relationships.
In FY22, growth improved. We
increased Australian mortgage
lending 3% while Australian
business and institutional lending
increased 15%. Overall, growth was
below system growth, mostly in
the first half of the year and mostly
due to fewer investor mortgages.
Customer deposits were up 6%
over the year.
The Customer Value section in
this Strategic Review outlines
the progress we’re making
on strengthening customer
relationships. In summary, we
have improved the breadth
and convenience of our online
capabilities, and worked hard
to help protect customers from
scams. Our Australian consumer
service was higher over the year,
as measured by our Net Promoter
Score (NPS) - however we still lag
our peers.
Reflecting the value of the business
over the year, net tangible assets
per share were $17.18, up 2%.
Improving return
To generate value for shareholders
we seek to deliver returns above
our cost of capital. In FY22, our
return on equity on a cash earnings
basis was 7.5% down from 7.6%
in FY21. To improve our returns,
we must grow new business
profitably, achieve appropriate
net interest margins and operate
cost effectively. We also need to
efficiently manage capital.
Over recent years, our net interest
margins have been under pressure,
in large part because of low interest
rates and intense competition in
an environment where funding has
been relatively cheap. While net
interest margins were lower over
the year, increasing interest rates
have helped to restore margins
in the second half and improve
profitability.
Exiting our non-core banking
operations removes the source of
most of our prior remediation costs
and directs more capital to where
it can improve our franchise. Out
of the 11 businesses we earmarked
for sale we have exited seven, with
a further two under transaction
agreements.
To enhance profitability, we must
be efficient and reduce our cost
base. In FY22, costs were 19%
lower. Excluding larger infrequent
items, costs were down 7%. These
trends are positive but as our total
cost base is still $10.8 billion there
is much to do.
Given our strong position and
divestment progress, we conducted
an off-market buy-back earlier
in the financial year, returning
$3.5 billion to shareholders. The
buy-back has reduced our shares
on issue by 4.6% and improved the
efficiency of our capital base.
Strong balance sheet
As a bank, a strong balance sheet
across capital funding, liquidity
and credit quality is vital. Our
CET1 capital ratio was 11.3% at 30
September 2022. This is above
regulatory minimums and puts our
capital levels in the top quartile of
banks globally measured on a like-
for-like basis.
Similarly, our funding and liquidity
ratios are also above regulatory
minimums with our net stable
funding ratio of 121% and our
liquidity coverage ratio of 132%.
Our credit quality metrics
improved over the year, although
we are watching the operating
environment closely for signs
of customer stress. Impairment
provisions of $4.6 billion are set
aside for a potential rise in stress.
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2022 ANNUAL REPORT
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STRATEGiC REViEW
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FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION

A focus of our Fix strategic
priority is improving the Group’s
risk management and culture.
This involves avoiding mistakes,
minimising customer remediation
and improving the way we address
issues and manage complaints.
Changes are being driven through
our Customer Outcomes and Risk
Excellence (CORE) program, which
is primarily overseen by the Board
Risk Committee. The three-year
program has 350 activities and so
far we have completed 271
2
.
With the design stage complete,
our focus is now to implement and
embed the changes to strengthen
the way we manage risk.
This year, we upgraded our
financial crime systems and
strengthened our control
environment to reduce sanctions
risks. A multi-year project is
also underway to further lift our
financial crime monitoring and
reporting capabilities. We also saw
progress in the reduction of high
rated issues and escalations.
Progress of CORE activities
2
DesignEmbedImplement
100%87%32%
116
Halved the number of open high
rated issues from 233
1
7
Percentage point increase in
issues raised by first line risk
management, to 74%
1
KEY EMPLOYEE SURVEY
INSIGHTS
1

7%
People constructively challenge

4%
People clear in how expected to
manage risks
CASE STUDY
We all own risk at Westpac
To strengthen the management of risk across Westpac, we are building
a more proactive risk culture. This requires that every employee
understands the risks in their role and proactively manages them,
explicitly considers risks in their decisions, feels safe to speak up and is
recognised for the right risk behaviours. To support these changes, we
have enhanced our policies and procedures, implemented new training
and run case studies to demonstrate how the changes may apply in
practice. Some changes have included:
—mandatory risk training for employees
—refreshing our Code of Conduct
—updating our performance management framework to include the
management of risk
—providing clarity on responsibility for risks through senior leadership
Statements of Accountability.
1. From September 2020 to September 2022.
2. At 30 September 2022. Completed activities finalised by Westpac. Activities may still be subject to Promontory Australia review.
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2022 ANNUAL REPORT
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FINANCIAL STATEMENTS
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WESTPAC GROUP 2022 ANNUAL REPORT 22

Customers
The customer service we deliver
and the quality of our products and
services are important components
of our ability to generate returns for
shareholders.
22
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2022 ANNUAL REPORT
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STRATEGiC REViEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION

Digital has become the preferred
way for customers to bank with us
– over 90% of all transactions were
made digitally this year. We are
focused on using digital to make
banking simpler and more intuitive
for customers, including by:
—completing the roll-out of
our Westpac app, which is
being used by over 2.7 million
customers. We have integrated
new tools into the app to help
customers better manage their
finances, including personal
finance insights and the ability to
track and categorise expenses
—launching a digital mortgage
—rolling out EFTPOS Air for
Android devices in late
November to help small
businesses connect with
customers and get paid faster
—launching Westpac DataX, a
data analytics service providing
insights for institutional,
government and business
customers.
Advancements in technology are
also reshaping branch services,
allowing any Westpac Group
customer to bank at any of our
branches. And as part of our co-
location strategy, where select
branches are combined, we are
bringing two Westpac Group
branches together under one roof.
We have 27 co-located branches
and expect to establish 100 more
over the next year. In addition,
we’ve extended our partnership
with Australia Post, allowing
customers to bank at 3,500
locations across Australia.
Using customer
feedback to drive
change
Customer complaints provide
insights into how we can improve
our customer service. Over the
last few years, we have made it
easier for customers to share their
feedback. We are building a culture
where employees spot, own and log
complaints and have invested in our
underlying systems and processes.
Our new Group-wide complaints
system guides our people through
the complaints management
process and is contributing to more
consistent outcomes for customers.
We are also making it easier for
customers to share feedback more
easily, including the expansion of
our mobile and digital complaints
channels to St.George, BankSA and
Bank of Melbourne customers.
Measures of change:
—94% of complaints are
resolved at first point,
up 10% on FY21
—Average time to resolve
complaints remained
stable over the year
at 5 days
—Solved 72% of all
complaints within 5 days
CUSTOMERS
12.7m
DIGITALLY ACTIVE CUSTOMERS
5.5m
NEW AUSTRALIAN HOME LOANS
$107bn
NEW AUSTRALIAN BUSINESS LOANS
1
$24bn
1. New loans for our Australian Business segment.
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The area of cyber security is
rapidly evolving, with advances
in both attacker techniques
and innovations in defence
capabilities. Scams are continuing
to increase and are becoming
more sophisticated and difficult to
detect. We have been investing in
our defences against cybercrime
for many years. This year, we
introduced a range of prevention
measures to help keep customers
safe, and to raise awareness
including through:
—rolling out dynamic card
verification codes (CVC) through
our app. The three-digit code
changes every 24 hours, limiting
cards from being scanned and
used again. Since 2020, the use
of dynamic CVCs has reduced
the incidence of related fraud by
80%
—introducing proactive scam
blocks of suspect online
transactions from overseas
retailers deemed high-risk, over
204,000 transactions were
blocked this year
—blocking of over 94,000 phone
numbers to help prevent
scammers impersonating
Westpac
—releasing a recording of a
conversation between a
customer and a scammer
pretending to be from Westpac
to demonstrate the warning
signs of a scam
—providing real-time security
prompts – new technology in
the Westpac app will detect if
a customer is connected to an
untrusted Wi-Fi network, and
prompt customers to switch to a
trusted network or mobile data.
Our customer data is handled
in accordance with our Privacy
Statement and maintained via
detailed privacy and cybersecurity
controls. Led by our Chief Privacy
Officer, we are committed to
continually improving our approach
to privacy. This year, progress
has been made in strengthening
our management of privacy risk
including simplifying our Privacy
Statement and improving our
ability to assess privacy risk across
the Group.
Helping when it
matters most
As Australia’s oldest bank and
company, we have a long history
of helping customers through
life’s ups and downs – from major
economic downturns and natural
disasters to personal crises.
Events of recent times have been
no exception. Our people stood
behind customers through the
uncertainty created by COVID-19,
and they stepped up again this year
to support customers impacted
by some of the worst floods ever
recorded in Australia.
Following the extreme weather
events that struck Australia’s east
coast this year, we set up our
mobile ‘Bank in a Box’ in Lismore
to support customers with urgent
banking needs. We established
a $2 million flood support fund,
providing grants of up to $3,000 to
eligible small business customers
impacted by the floods. We also
provided over 1,600 disaster relief
packages to customers over the
year.
As we face another form of
headwinds, with surging inflation
and rising interest rates, we will
support customers impacted by
the increased cost of living.
Supporting vulnerable
customers
Any person or business can
experience financial hardship
without warning. We are
committed to supporting
customers through tough times
to help them get back on track.
Whether it’s due to illness, loss
of employment, a relationship
breakdown or something else,
we assess each circumstance on
a case-by-case basis. Tailored
solutions may range from short
and long term arrangements,
term extensions, and varying or
deferring loan repayments, as
well as referring customers to free
support services such as not-for-
profit financial counsellors.
We also have specialist teams
who offer extra care in supporting
customers experiencing
vulnerability, including domestic
and family violence, financial abuse,
scams and fraud, and problem
gambling.
Over the year, more than 42,000
cases were escalated through our
vulnerability teams. Over 36,000
applications for financial assistance
packages were approved for
customers experiencing financial
hardship.
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Westpac customer and founder of Danielli’s Fine Foods, Ron,
participated in our EFTPOS Air pilot this year. The app turns an
Android phone into a payments terminal – allowing businesses to
accept payments without any extra hardware. It makes it easy for small
businesses to take payments anywhere, at any time.
Ron settled in Australia from Italy, bringing his passion for coffee with
him. Together with his wife, Chantal, they established Danielli Café in
Sydney’s The Rocks in 2006 and later launched Tea Amo, additional
cafés and a weekend market stall.
“EFTPOS Air is really convenient. It allows me to accept payments
wherever I’m working – in the café or at our market stall,” says Ron.
“The app is great for busy times as it helps our team serve our
customers faster. We get a lot of positive comments from excited
customers and other local business owners.”
Building financial
literacy and wellbeing
As a major bank we have an
important role to play in building
money management skills across
society. These skills can help build
financial resilience to potential life
shocks. By educating customers,
employees and communities in
a way that is relevant to their
needs and circumstances, we can
give people the knowledge and
confidence they need to make
informed financial decisions.
Westpac’s Davidson Institute
makes financial literacy accessible
to everyone. It provides a range
of free training resources and
downloadable tools for individuals
and businesses, with tailored
content for women, young people,
not-for-profits and First Nations
people.
This year more than 210,000
people accessed our financial
education programs and content.
Making banking more
accessible
Westpac is proud to have topped
the Access & Inclusion Top
Performers 2021-2022 list, as
judged by the Australian Network
on Disability in June 2022. We
were also recognised as best-
in-class in Communications and
Marketing, Product and Services,
Information Communication
Technology, Suppliers and Partners
and Innovation.
The Group has already embedded
52% of actions in our Access &
Inclusion Plan (2021-2024), and is
on track to complete all initiatives
within the Plan timeframe. Some
of our recent customer access and
inclusion initiatives include the
roll-out of new accessible EFTPOS
Now terminals, the launch of Easy
English Guides, and creating a
more inclusive complaints process
for customers needing to raise a
complaint via Auslan.
Tactile Braille debit and credit
cards are offered to all Bank of
Melbourne and BankSA customers.
They feature a Braille D on debit
cards and a Braille C on credit
cards, with a notch to help all
customers orient them, including
those who live with vision and
mobility impairments.
See our 2022 Sustainability
Supplement for more information
on how we are supporting
vulnerable customers, building
financial literacy, and improving
accessibility and inclusion.
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HOW WE CREATE VALUE FOR OUR
Employees
Our people are central to providing
a leading customer experience,
improving our business, and
improving shareholder value. We
are committed to investing in our
people and creating a workplace
that is diverse and inclusive, where
accountabilities are clear, the right
behaviours are rewarded, and it is
safe to speak up.
26
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In 2020, we launched our Culture
Reset program to strengthen our
culture. This defined our four key
cultural shifts and foundations for
performance:
—digitised, simplified, clear and
quick
—accountable and empowered
—getting better and no surprises
—safe and owning risk.
In 2022, we have made strong
progress on all key behaviours
and day-to-day work experience.
Accountability, customer focus, risk
aware and continuous improvement
are now amongst our top 10 values
across the organisation and there is
a strong sentiment that things are
getting better.
Underpinning our culture are our
purpose, values and behaviours
(PVB) which guide employees
and shape how we contribute to
our customers. We seek to ensure
that our culture aligns to our PVB
through:
—our executives, setting the ‘tone
from the top’ by role-modelling
consistent behaviours and
practices demonstrating sound
risk management
—our leaders, coaching our people
to live our values and behaviours
so that they can identify, report,
manage and resolve risks, be
accountable and recognise
positive risk behaviours
—our processes, structures and
systems aligned to our PVB
—our culture measurement tool,
monitoring our progress and
outcomes.
Culture Reset – Desired Culture Traits
Digitised,
simplified,
clear and quick
Empowered people, with courage to act and
simplified systems/processes/operating model.
Accountable
and
empowered
Everyone knowing their role in delivering on
clear, agreed outcomes, a high-performance
ethic with true end-to-end accountability.
Getting
better and
no surprises
Value relationships with honesty and challenge,
while embracing improvement over image and
feeling safe to raise issues early. Recognise
where we are, fact-based performance.
Safe and
owning the risk
Learning culture, where people own the risk
and feel safe to speak up and challenge and
take accountability. Balancing consequence
management with more recognition,
engagement and coaching.
NUMBER OF EMPLOYEES
1
37,476
PAID TO OUR PEOPLE
$5.9bn
WOMEN IN LEADERSHIP
2

50%
ORGANISATIONAL HEALTH INDEX
75 +1pt over the year
1. Full time equivalent at September 2022.
2. Women in Leadership refers to women in leadership roles. It includes the CEO, Group Executives,
General Managers, senior leaders with significant influence on business outcomes (direct reports
to General Managers and their direct reports), large (3+) team people leaders three levels below
General Manager, and Bank and Assistant Bank Managers.
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WESTPAC GROUP 2022 ANNUAL REPORT 28

Measuring
organisational health
Voice+ is our culture measurement
tool providing a holistic measure
of our important cultural metrics
and shifts, including performance
culture, risk culture and key
behaviours. Voice+ includes
McKinsey’s global ‘Organisational
Health Index’ (OHI) which provides
a detailed picture of management
practices, organisational health
outcomes and the OHI score which
benchmarks our organisational
health relative to global standards.
This year, we achieved our target
OHI score of 75, ranking us above
Global Banking (+5pts higher)
and Australian and New Zealand
(+10pts higher) medians. This was
just below the 2022 global top
quartile – a positive outcome for
the organisation.
A diverse and inclusive
workforce
Building a workforce that reflects
the diversity of our 12.7 million
customers is vital to our long-term
prosperity. We aim to build an
environment where our people can
bring their whole selves to work. In
doing so, we are creating a culture
where employees feel they belong
and are encouraged to bring new
ideas and understanding.
Embracing diversity improves
decision making and enables us
to better support the diverse
customers we serve.
We are strengthening workforce
diversity and inclusion through:
—a range of targeted initiatives
and policy improvements
—working closely with employee
action groups that represent
diverse communities across
the Group
—enhancing the divisional Inclusion
and Diversity Councils.
Three areas of focus are gender
equality, representation of different
cultures in leadership roles and
Indigenous representation.
Gender equality
Our commitment to gender
equality is longstanding. In 1995,
we were the first listed company
to introduce paid parental leave
and have maintained a gender
equality target of 50% for Women
in Leadership for six consecutive
years.
Last year, we signed up to the
investor-led ‘40:40 Vision’ initiative,
pledging to achieve gender balance
on the Executive Team by 2030 –
currently 45%. The Board also has a
40:40:20 target – currently 40%.
This year, further changes
supporting gender equality
included:
Progressive policies: We increased
paid parental leave to 16 weeks and
introduced special paid leave for
pregnancy loss. We also built on
policies and initiatives to support
women’s safety, including training
for all levels of the organisation to
prevent sexual harassment. We also
extended paid leave for domestic
and family violence.
Gender pay equity: We continue
our commitment to gender pay
equity. While there is a difference
in aggregate at some levels, our
aim continues to be that there is
no difference in pay equity for
people in similar roles across the
organisation. Over 2020 and 2021,
aside from our annual remuneration
review processes, we adjusted
salaries for 759 female employees
to address pay equity. Our policy
continues to be to take prompt
remedial action if we become
aware of a pay gap in like for like
work. Earlier this year, we removed
pay confidentiality clauses from
employee contracts, with a goal of
improving pay transparency and
building trust around pay.
Mentorship and development.
We are a major sponsor of ‘Mentor
Walks’, connecting female senior
executive mentors across Australia,
Singapore and New Zealand.
We have mirrored the program
internally, facilitating connections
for our aspiring female leaders with
senior women across the Group.
We also continue our partnership
with Chief Executive Women,
which supports our female leaders’
development.
Cultural diversity
We introduced a variety of
initiatives to support cultural
diversity. We enhanced our Cultural
Diversity Leadership Shadowing
Program for employees with
diverse cultural backgrounds,
and increased participation to
over 150 employees. We support
employee action groups (EAGs)
that represent over 10,000
employees. EAGs support inclusion
and diversity by connecting our
employees who are like-minded and
share similar experiences and who
are passionate about supporting
their community. These EAGs are
representative of our youth, our
culturally diverse employees, our
women, our LGBTIQ+ community,
our Indigenous employees,
veterans, domestic and family
violence community, the disability
network, our skilled volunteers, and
our 50+ years old employees.
We are working to better
understand the diversity of our
workforce and identify areas we
need to improve. This year, 35% of
our people participated in a survey
with responses indicating high
levels of inclusivity in our workforce.
We are now embedding this survey
into our annual Voice+ survey
and will use the insights gained to
inform our future strategy, policy
development and frameworks
to build an even more inclusive
workplace.
Indigenous representation
One of the four areas of focus
of our fifth Reconciliation
Action Plan (RAP) is Meaningful
Careers, which aims to create
jobs and employment pathways
for Aboriginal and Torres Strait
Islander peoples.
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Attracting and
retaining great people
Building the right workforce by
attracting new talent and retaining
great employees is a priority.
Competition for talent has become
fiercer as people look for career
changes, more flexibility and the
option to work away from the major
capital cities.
Given these developments, we’re
redefining our offer to employees,
increasing flexibility and tailoring
solutions for different segments,
including:
—offering different ways for
employees to work flexibly
between their office and
home. We are also trialling
new approaches to tap into
experts, such as establishing our
technology hub in Queensland.
—through our graduate and intern
programs, creating employment
pathways that better support
hybrid working while focusing
on connection and collaboration.
We also use our graduate
program to attract non-finance
graduates (e.g. STEM), to further
increase the diversity of our
workforce.
We are committed to combining
workforce flexibility with pay
equity. Westpac’s pay principles
are to pay employees fairly and
competitively against the external
market, based on capability and
experience.
Pay is particularly important to
our people this year given higher
inflation. We have finalised voting
on our new Australian 2023
Enterprise Agreement with two
thirds of employees, who voted,
voting yes. The new Enterprise
Agreement provides employees
with competitive fixed pay
increases in 2023 and 2024, while
also providing employees a pre-
tax one-off payment of $1,000 to
help with the current cost of living
pressures.
Building capability and
skills for the future
As we develop our workforce it is
vital that we build on the skills of
existing employees, supplemented
with new capabilities. We have a
capability framework that identifies
improvement areas so we can
develop programs to fill those
gaps. Areas of focus this year
included:
Risk management: Learning
programs to strengthen risk and
financial crime capability and
reinforce the importance of good
customer outcomes through
improved risk management.
Since FY21, around 10,000
employees have participated in risk
fundamentals workshops. This year,
our people also completed over
30,000 hours of financial crime
training and many participated in
our financial crime awareness week.
Such programs have contributed
to 93% of employees saying ‘I am
clear on how I am expected to
manage risks in my role’.
1
Digital and data capabilities:
Partnered with Massachusetts
Institute of Technology to improve
the digital and data skills of over
100 senior leaders. The tailored
program assessed the impact
of digital on Company success
and built awareness of emerging
technologies and digital platforms.
ESG: Partnered with Monash
University and Climateworks
Centre to design and deliver
workshops to over 1,100 employees
to establish baseline knowledge
of ESG opportunities, risks and
issues. Over 3,000 employees
also completed ESG fundamentals
online training.
CASE STUDY
Tapping into technologists in regional areas
The demand for digital skills is rising and with the drift of skilled
workers out of big cities, our new technology hub on Queensland’s
Gold Coast has opened a new gateway for engineers to join
Westpac. So far, 47 software engineers are based at the hub, and
we aim to increase that to 200 experts over the next few years.
1. As at June 22, Risk Culture Dashboard, Strategic Insights Platform.
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HOW WE CREATE VALUE FOR OUR
Community
Westpac is one of Australia and
New Zealand’s largest companies
and providers of capital, but we’re
also deeply connected to the local
communities in which we operate.
We provide value by supporting the
economy, partnering with community
organisations, and backing a
stronger, more inclusive society
through our philanthropic and
community programs.
30
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Westpac plays a significant role in
supporting the economy as a bank,
an employer, a buyer of goods and
services, a backer of Australian and
New Zealand businesses, and an
investor in our communities.
We employ more than 30,000
people in Australia, 5,000 in New
Zealand and nearly 1,000 in Pacific
1
,
and contributed $3.1 billion in
income tax with an effective tax
rate of 35% (including the bank
levy).
Backing diverse business and
social enterprise
Through our Supplier Inclusion and
Diversity program, we seek to work
with Indigenous owned businesses,
social enterprises, Australian
Disability Enterprises, women-led
businesses and businesses with a
B-Corp certification.
We recognise the opportunities our
supply chain creates to positively
impact people and we seek to
promote social and economic
participation through our sourcing
strategies and practices.
Our spending with diverse
suppliers was $20.7 million this
year, compared with $11.6 million
last year. Of that total, $8.8 million
was spent with Indigenous-
owned businesses compared with
$1.6 million last year.
One of the reasons for this increase
was the engagement of Aboriginal
and Torres Strait Islander-owned
businesses in completing the fit-out
of our new Western Sydney Hub at
Parramatta Square, which opened in
August 2022.
Investing in
communities
Through our community programs,
we support and encourage our
employees to make a difference
in the issues and causes that
matter to them. This year through
our Matching Gifts program,
over $2.27 million of employee
donations to more than 800
charities were matched. This
included donations and matching
of approximately $60,000 for our
Ukraine Appeal, and more than
$112,000 towards the Salvation
Army Flood Appeal. In addition
Westpac Group made a $200,000
corporate donation to the Salvation
Army Flood Appeal.
$3.1bn
income tax expense, including
the bank levy
35%
effective tax rate, including
the bank levy
$136m
invested in the community
$20.7m
spent with diverse suppliers, of which
$8.8m was with Indigenous-owned
businesses
1. Headcount including permanent full-time and part-time, temporary full-time and part-time and non-
guaranteed hours and excluding contractors. See the 2022 Sustainability Index and Datasheet for a
more detailed breakdown of headcount.
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Westpac Foundation
Westpac Foundation
3
supports
social enterprises and community
organisations that create jobs and
provide training and education
pathways for Australia’s most
under-represented. Its mission is
to help social enterprises create
10,000 jobs by 2030. Since 2015
it has helped create approximately
6,000 jobs
1
.
This year, Westpac Foundation
awarded 54 grants valued at a total
of $3.4 million to organisations
creating jobs and opportunities
for people overcoming barriers to
employment, including refugees
and asylum seekers, people with
disability, and Aboriginal and
Torres Strait Islander Australians.
Westpac Scholars Trust
Westpac Scholars Trust
4
awards 100
scholarships a year to individuals
who have the drive and potential to
help shape a better future. Together
with leading Australian universities,
since 2015 it has awarded over
$35 million in scholarships to more
than 640 scholars who challenge,
explore, and set new benchmarks
in innovation, research and
social change.
This year, the Trust expanded
its priorities to include scholars
addressing the impact of climate
change. The program backs
research and social initiatives in
four key areas: technology and
innovation, strengthening Australia-
Asia ties, creating positive social
change; and now, ensuring a
sustainable future.
St.George, BankSA and Bank
of Melbourne Foundations
St.George Foundation
5
, BankSA
Foundation
5
and Bank of
Melbourne Foundation
5
fund
children’s charities that help create
brighter futures for children and
young people in need in our local
communities. In 2022, more than
$2.5 million was awarded to 57
charities across Australia.
Aurora Education Foundation was
the recipient in 2022 of St.George
Foundation’s three-year Inspire
Grant of up to $600,000. The grant
will support Aboriginal and Torres
Strait Islander high school students
to access educational, wellbeing
and cultural opportunities, so
these young people can realise
their academic potential and
achieve their life goals. Students
who participate in this program
are twice as likely to achieve a
Year 12 education compared with
Indigenous students nationally.
80,000 helicopter rescue
missions and counting
This year marked 49 years of
sponsorship of the Westpac
Lifesaver Rescue Helicopter
Service. The Service responds to
emergencies ranging from coastal
search and rescue to inland motor
vehicle and farming incidents, as
well as transferring critically ill
patients between hospitals.
More than 80,000 missions, with
no-one ever having to pay to
be rescued.
Next year the celebrations will
continue as we reach 50 years
of partnership and say thank
you to the crew and personnel
who dedicate their lives to
helping others.
Safer Children, Safer
Communities
The Safer Children, Safer
Communities program involves a
series of actions and investments in
Australia and across Asia-Pacific to
help make a meaningful impact on
child safety and protection. Since
2020 we have supported more
than 50 organisations to empower,
protect and support children and
their families.
1,300+
jobs created in 2022
1
by Westpac
Foundation-supported social
enterprises
640+
active scholars
2
supported by
Westpac Scholars Trust since 2015
1. Jobs created is reported one quarter in arrears, from July to June.
2. Active scholars refers to the total number of individuals who have been awarded a scholarship and have completed or are in the process of completing
their degree or fellowship.
3. Westpac Foundation is administered by Westpac Community Limited (ABN 34 086 862 795) as trustee for Westpac Community Trust (ABN 53 265
036 982). The Westpac Community Trust is a Public Ancillary Fund, endorsed by the ATO as a Deductible Gift Recipient. None of Westpac Foundation,
Westpac Community Trust Limited nor the Westpac Community Trust are part of Westpac Group. Westpac provides administrative support, skilled
volunteering, donations and funding for operational costs of Westpac Foundation.
4. Westpac Scholars Trust (ABN 35 600 251 071) is administered by Westpac Scholars Limited (ABN 72 168 847 041) as trustee for the Westpac Scholars
Trust. Westpac Scholars Trust is a private charitable trust and neither the Trust nor the Trustee are part of Westpac Group. Westpac provides administrative
support, skilled volunteering and funding for operational costs of Westpac Scholars Trust.
5. St.George Foundation, BankSA Foundation and Bank of Melbourne Foundation are all administered by St.George Foundation Limited (ABN 46 003 790
761) as trustee for St.George Foundation Trust (ABN 44 661 638 970), a Public Ancillary Fund endorsed by the ATO as a Deductible Gift Recipient. While
St.George Foundation Limited is a related body corporate of Westpac Group, neither St.George Foundation, BankSA Foundation, Bank of Melbourne
Foundation nor St.George Foundation Trust are part of Westpac Group. Westpac provides administrative support, donations and funding for operational
costs of the Foundations.
Sustainability
Supplement
Read more about our progress
against our 2021-2023
Sustainability Strategy and
our broader contribution to
the community in our 2022
Sustainability Supplement.
2022
WESTPAC BANKING CORPORATION
ABN 33 007 457 141
Sustainability
Supplement
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Advancing
reconciliation
We launched our new Elevate
Reconciliation Action Plan (RAP)
in June this year, to coincide with
National Reconciliation Week.
There are four key focus areas in
the RAP:
—Valuing culture: building
relationships based on trust and
respect; valuing cultures and
histories, and recognising the
importance of self-determination
—Meaningful careers: investing
in Indigenous careers through
dedicated programs to recruit,
retain and develop Aboriginal
and Torres Strait Islander people
—Better banking experiences:
making it easier for Indigenous
customers to do business with
us, and helping to improve
financial inclusion and economic
participation
—Backing Indigenous enterprise:
helping more Aboriginal and
Torres Strait Islander Australians
to grow their businesses as
our customers, suppliers and
partners.
Our Sustainability Supplement
details our progress against our
key reconciliation targets and
provides more information on our
major programs and initiatives.
The full 2022-2025 Reconciliation
Action Plan is also available on
our website.
Building capacity
More than 3,000 employees
participated in our volunteering
programs, sharing their skills
and time to support community
organisations and social
enterprises.
Board Observer Program
The Westpac Board Observer
Program is a unique program for
our community partners, which
aims to bring new skills and
perspectives to their Boards.
Developed with legal and
consulting firm MinterEllison, the
Program provides community
partners the opportunity to invite
senior Westpac or MinterEllison
professionals to attend their
organisation’s Board meetings as
an observer for 12 months.
Community partners gain fresh
insights, skills and capabilities and
increased connections into Westpac
while our employees benefit from
developing their social leadership
skills, building relationships and
navigating the complexities of
boardroom decision making.
Thirty-three Westpac employees
participated as Board observers
this year, and a total of 120 have
taken part since the program
began in 2017. Many observers
have since transitioned to Director
or Strategic Advisor roles on
their Boards after completing
the program.
CASE STUDY
Westpac Research Fellow’s plan to save
our reefs
Dr Shawna Foo describes herself as an ‘ocean optimist’. Her research
is being supported by the Westpac Scholars Trust as part of its focus
on sustainability and involves identifying corals in parts of the Great
Barrier Reef which have been impacted by warming but are less likely
to bleach. “We need to find out why some corals are able to thrive
under environmental stress,” she says, “and use that information to help
increase coral reef resilience.”
Despite being shocked at the damage she has seen on the reef, Dr Foo
believes that positive action is possible. “I’m excited to play a part in
discovering ways to best protect our marine ecosystems in the face
of climate change,” she says.
1. This includes those children, young people and adults reached by technology, response and recovery-based programs delivered by our Australian-based
grant recipients and international partners, from 1 October 2021 to 30 June 2022.
2. This includes those children, young people and adults reached in early intervention, education and preventative programs delivered by our Australian-
based grant recipients and international partners, from 1 October 2021 to 30 June 2022.
WESTPAC GROUP
2022 ANNUAL REPORT
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FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION

WESTPAC GROUP 2022 ANNUAL REPORT 34

Sustainability
Sustainability
approach
Westpac’s purpose is to help
Australians and New Zealanders
succeed. Our sustainability approach
integrates our purpose and seeks to
respond to sustainability priorities
that matter most to our stakeholders,
so we can support and create value
for our customers, shareholders,
communities and the broader
economy.
Across the Group, we continue
to work to embed sustainability
performance measures through our
three-year 2021-2023 Sustainability
Strategy that aligns with the United
Nations Sustainable Development
Goals (SDG).
Our sustainability disclosures
are prepared based on global
sustainability frameworks, standards
and initiatives, such as the Global
Reporting Initiative (GRI), the
Sustainability Accounting Standards
Board (SASB), the Task Force on
Climate-Related Financial Disclosures
(TCFD), the United Nations Principles
for Responsible Banking (UNPRBs),
the United Nations Guiding Principles
on Business and Human Rights
(UNGPs), the United Nations Global
Compact (UNGC), and now the
NZBA.
More information on our sustainability
performance data, glossary, and our
alignment with reporting standards,
including the recent 2021 GRI
Universal Standards, is available in
our 2022 Sustainability Index and
Datasheet. We obtained independent
assurance over various subject matter,
including a selection of sustainability
performance data and assertions
made regarding our sustainability
reporting disclosed in our 2022
Annual Report, 2022 Sustainability
Supplement and 2022 Sustainability
Index and Datasheet.
Other sustainability-related disclosures
can be found on our website.
2022 Sustainability Supplement
2022 Sustainability Index and
Datasheet
Net-Zero 2030 Targets and Financed
Emissions – our methodology and
approach
Climate Change Position Statement
and Action Plan
Human Rights Position Statement and
2023 Action Plan
2022-2025 Reconciliation Action Plan
Child Safeguarding Position
Statement
2021 Safer Children Safer
Communities Progress Report
2021 Modern Slavery Statement
More information on Sustainability
Governance and Risk Management,
including Risk Factors and scenario
analysis, is available in Section 2 of
the Annual Report.
Important information. This Annual Report contains climate-related and other forward-looking statements, including targets,
commitments, plans, estimates, assumptions and metrics. For an explanation of forward-looking statements and the risks, uncertainties
and assumptions to which they are subject, see ‘Reading this report’ in Section 2. Please consider those important disclaimers when
reading the forward-looking statements in this Annual Report.
WESTPAC GROUP 2022 ANNUAL REPORT
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FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION

1 Net-zero, climate resilient operations
2 Supporting customers’ transition to net-zero and
to build their climate resilience
3 Collaborate for impact on initiatives towards
net-zero and climate resilience
As we review our reporting and disclosure approaches,
our climate-related metrics and targets, and their
presentation, may change in the future in line with
evolving sustainability standards and relevant industry
recommendations and practices.
Climate change
Strategy
1. A pathway to net-zero by mid-century, or sooner, including CO
2
-e emissions reaching net-zero at the latest by 2050, consistent with a maximum
temperature rise of 1.5°C above pre-industrial levels by 2100.
2. 2022 figures include direct operations in Australia, New Zealand, Fiji, Papua New Guinea, Singapore, United Kingdom, China, Germany and the United
States. Reporting boundary expanded since 2021 to include Singapore, China, Germany and the United States.
1 Net-zero, climate resilient operations
We are committed to reducing
the climate change impacts of our
operations.
In 2022, our Scope 1 and 2 operational
greenhouse gas emissions and
Scope 3 supply chain (non-financed)
greenhouse gas emissions were 70%
and 29% lower than our 2016 baseline,
respectively.
To align with our 2030 sector lending
targets baseline, we have updated
our direct operational Scope 1 and 2
absolute emissions reduction target
to be 64% by 2025 and 76% by 2030,
relative to a 2021 baseline. This update
has not changed our level of ambition.
Our revised Scope 3 supply chain
(non-financed) emission reduction
target is 50% by 2030, relative to a
2021 baseline.
These targets align with a 1.5°C
pathway to net-zero by 2050.
We will report on progress against our
updated targets in FY23.
To achieve our operational emissions
reduction targets, we remain
committed to sourcing the equivalent
of 100% of our global electricity
consumption from renewable sources
by 2025. To manage our Scope 3
supply chain (non-financed) emissions
reduction target we will focus on the
most material sources. We seek to
work with key suppliers to improve
their emissions reduction policies
and processes to reduce our supply
chain emissions.
To build climate resilience we are
developing our approach to assessing
and managing physical climate risk
to our direct operational sites and
strengthening controls in areas such
as business continuity and property
leasing.
Westpac Group operational greenhouse gas (GHG) emissions before carbon credits (tCO
2
-e)
2
20222021
Location-based GHG emissions (tCO
2
-e)
Total Scope 1 emissions7,2977,851
Total Scope 2 emissions76,18189,261
Total Scope 3 supply chain (non-financed) emissions68,78568,722
Total Scope 1, 2 and 3 (non-financed) emissions (tCO
2
-e)152,263165,834
Market-based GHG emissions (tCO
2
-e)
Total Scope 1 emissions7,297 7,851
Total Scope 2 emissions36,73453,981
Total Scope 3 supply chain (non-financed) emissions63,37771,738
Total Scope 1, 2 and 3 (non-financed) emissions (tCO
2
-e)107,408133,570
WESTPAC GROUP
2022 ANNUAL REPORT
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SHAREHOLDER INFORMATION

WESTPAC GROUP 2022 ANNUAL REPORT 36

Reduce our financed emissions
In line with our NZBA commitment,
we have set interim 2030 financed
emissions targets for five sectors in
our lending portfolio.
Financed emissions are the Group’s
Scope 3 emissions attributable to its
lending portfolios. We aim to achieve
these targets by 30 September 2030.
In our target setting process, we
focus on sectors that represent
material financed emissions based on
current data and methodologies.
1. Upstream oil and gas includes exploration, extraction and drilling companies, integrated oil and gas companies (that have upstream activities), and LNG
producers. The scope does not include midstream and downstream companies.
2. Companies with >5% of their revenue coming directly from thermal coal mining (i.e. the production and sale of thermal coal). Adjacent sectors (including
mining service providers) will be covered in other targets as appropriate. Transactional banking and rehabilitation bonds are excluded from our target.
3. Companies that are electricity generators include customers with >10% revenue coming from power generation or >5% revenues from thermal coal
electricity generation. Target excludes electricity transmission / distribution companies and Scope 3 emissions of electricity generators.
4. Companies that produce clinker in-house. Target includes emissions generated from calcination in clinker production as well as fuel combustion and
electricity consumption associated with the cement production process.
5. Discrete borrowers with office properties comprising a majority of their portfolio and with commercial real estate TCE > $75 million within Specialised
Lending – Property Finance (Investment only) and Corporate portfolios, as defined under Pillar 3 reporting. This excludes construction finance.
6. International Energy Agency Net Zero by 2050 (IEA NZE) scenario specifies that no new (greenfield) oil and gas fields are needed beyond those projects
that have already been committed (i.e. approved for development) as of 18 May 2021. The IEA NZE scenario is the International Energy Agency’s Net Zero
by 2050: A Roadmap for the Global Energy Sector report, 2021.
7. Where the Australian or New Zealand Government or regulator determines (or takes a formal public position) that supply from the asset being financed is
necessary for national energy security.
8. A credible transition plan should be developed by reference to the best available science and should include Scope 1, 2 and 3 emissions and actions the
company will take to achieve GHG reductions by 2050 aligned with a 1.5°C pathway.
9. Base building operational Scope 1 and 2 emissions. Target excludes all Scope 3 emissions (e.g. tenant emissions from electricity and appliance use,
construction, embodied emissions and corporate activities).
Sector targets in line with our NZBA commitment
SECTOR2030 FINANCED EMISSIONS REDUCTION TARGETFY21 BASELINE
Extractives – Upstream oil
and gas
1
23% reduction in Scope 1, 2 and 3 absolute
financed emissions by 2030 (relative to 2021
baseline)
We have updated our upstream oil and gas
position to support this target. Our position
provides:
• we will only consider directly financing
greenfield oil and gas projects that are in
accordance with the IEA NZE scenario
6

or where necessary for national energy
security
7
,
• we will continue to provide corporate
lending where the customer has a credible
transition plan
8
in place by 2025, and
• we will work with customers to support
their development of credible transition
plans prior to 2025.
7.5 MtCO
2
-e
(absolute financed
emissions)
Extractives – Thermal coal
mining
2
Zero lending exposure to companies with
>5% of their revenue coming directly from
thermal coal mining by 2030
$216.7m
(lending exposure)
(TCE as at 30 Sep 2021)
Power generation
3
0.10 tCO
2
-e/MWh for Scope 1 and 2
emissions intensity by 2030
0.26 tCO
2
-e/MWh
(emissions intensity)
Industrials – Cement
production
4
0.57 tCO
2
-e/tonne of cement for Scope 1 and
2 emissions intensity by 2030
0.66 tCO
2
-e/tonne cement
(emissions intensity)
Australian commercial real
estate (large customers with
office properties
5
)
62% reduction in Scope 1 and 2 emissions
9

intensity (kgCO
2
-e/m
2
net lettable area)
by 2030 (relative to a 2021 baseline) for
Australian large
5
customers with office
properties
Baseline and progress to be
disclosed in FY23
Net-Zero 2030 Targets and
Financed Emissions - our
methodology and approach (our
Targets and Financed Emissions
methodology)
Refer to our Targets and Financed
Emissions methodology on our
website for more information on
our 2030 sector targets, including
scope, sector boundary and target
definitions and FY21 baselines.
WESTPAC GROUP 2022 ANNUAL REPORT
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WESTPAC GROUP
2022 ANNUAL REPORT
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STRATEGiC REViEW
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FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION

In 2022, Westpac entered into a virtual power purchase agreement with
Flow Power to purchase 32.5 gigawatt hours of generation from the existing
Ararat Wind Farm in rural Victoria and the Berri Solar Farm and Battery in
South Australia.
The new deal paves the way for us to source the equivalent of 100% of our electricity consumption in Australia
from renewable energy sources by 2025, in line with our commitment to source the equivalent of 100% of
our global electricity consumption from renewable sources by 2025. It also offers the bank greater certainty
of electricity supply costs at a time of heightened price volatility across electricity markets. The new VPPA is
aligned with our commitment to support the communities where Westpac operates. The Berri project has plans
for a community fund to back clean energy initiatives such as local electric vehicle charging stations, as well as
local education and environmental programs.
Upstream oil and gas
(absolute financed emissions; MtCO
2
-e for
Scope 1, 2, and 3 combined)
Power generation
(emissions intensity; tCO
2
-e/MWh for
Scope 1 and 2)
Cement production
(emissions intensity; tCO
2
-e/tonne of
cement for Scope 1 and 2)
7.0
6.0
5.0
4.0
3.0
2.0
1.0
8.0
0.0
SB
TI SD
A ref er enc
e pa
thw
ay
202120
22
2023
20
24
2025
2026
2027
2028
2029
20
30
2021 baseline
2030 target
5.8
-23%
7.5
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0.0
0.8
202120
22
2023
20
24
2025
2026
2027
2028
2029
20
30
2021 baseline
2030 target
CSIRO/ClimateWorks Australia
Hydrogen Superpower
Scenario
1
IEA NZE / CSIRO/ClimateWorks
Australia Hydrogen Superpower
scenario
1
0.26
0.10
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0.0
0.8
20
21
2020
20
19
20
22
2023
20
24
2025
2026
2027
2028
2029
2030
2021 baseline
2030 target
SBTi SDA Cement Convergence
Pathway (Australia)
2
0.66
0.57
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
CS
IR O/
Climat
eW
orks
Au
st rali
a
Hy
dr ogen
Superp
ow
er Sc
enar
io
7.0
6.0
5.0
4.0
3.0
2.0
1.0
8.0
0.0
SB
TI SD
A ref er enc
e pa
thw
ay
202120
22
2023
20
24
2025
2026
2027
2028
2029
20
30
2021 baseline
2030 target
5.8
-23%
7.5
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0.0
0.8
202120
22
2023
20
24
2025
2026
2027
2028
2029
20
30
2021 baseline
2030 target
CSIRO/ClimateWorks Australia
Hydrogen Superpower
Scenario
1
IEA NZE / CSIRO/ClimateWorks
Australia Hydrogen Superpower
scenario
1
0.26
0.10
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0.0
0.8
20
21
2020
20
19
20
22
2023
20
24
2025
2026
2027
2028
2029
2030
2021 baseline
2030 target
SBTi SDA Cement Convergence
Pathway (Australia)
2
0.66
0.57
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
CS
IR O/
Climat
eW
orks
Au
st rali
a
Hy
dr ogen
Superp
ow
er Sc
enar
io
7.0
6.0
5.0
4.0
3.0
2.0
1.0
8.0
0.0
SB
TI SD
A ref er enc
e pa
thw
ay
202120
22
2023
20
24
2025
2026
2027
2028
2029
20
30
2021 baseline
2030 target
5.8
-23%
7.5
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0.0
0.8
202120
22
2023
20
24
2025
2026
2027
2028
2029
20
30
2021 baseline
2030 target
CSIRO/ClimateWorks Australia
Hydrogen Superpower
Scenario
1
IEA NZE / CSIRO/ClimateWorks
Australia Hydrogen Superpower
scenario
1
0.26
0.10
0.
7
0.6
0.5
0.4
0.3
0.2
0.1
0.0
0.8
20
21
2020
20
19
20
22
2023
20
24
2025
2026
2027
2028
2029
2030
2021 baseline
2030 target
SBTi SDA Cement Convergence
Pathway (Australia)
2
0.66
0.57
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
CS
IR O/
Climat
eW
orks
Au
st rali
a
Hy
dr ogen
Superp
ow
er Sc
enar
io
Net-zero reference scenario pathways for sectors with targets in line with our NZBA commitment
Our sector targets follow the UN
Environment Programme Finance
Initiative’s Guidelines for Climate
Target Setting for Banks, April 2021
(NZBA Guidelines). We selected
industry specific approaches for
our emissions reduction reference
pathways.
We used scenarios modelled by well-
recognised industry and scientific
organisations as benchmarks for
developing these pathways and
considered global standards and
tools, where relevant.
The below diagrams show the
reference pathways for some of our
sector targets.
For Upstream oil and gas, we
developed our target using the
IEA NZE reference scenario and
the CSIRO/ClimateWorks Australia
Hydrogen Superpower scenario
1
to
calculate our 23% reduction target
as shown.
For Thermal coal mining, there is
no reference pathway presented as
our commitment is to achieve zero
lending exposure by 2030.
For Australian commercial real
estate (large customers with office
properties) sector, we used the IEA
NZE (Service Buildings) reference
scenario to inform the development
of our target. We aim to prepare
and disclose our baseline and
progress in FY23.
1. CSIRO/ClimateWorks Australia Hydrogen Superpower Scenario derived from the multi-sector energy modelling report dated July 2021.
2. Cement Science Based Target Setting Guidance | Draft for public consultation, Science Based Targets initiative (SBTi), March 2022. SDA refers to Sectoral
Decarbonisation Approach.
Refer to our Targets and Financed
Emissions methodology on our
website for details of our reference
scenarios and pathways, and
the associated complexities and
challenges to setting targets and
calculating baselines.
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WESTPAC GROUP 2022 ANNUAL REPORT 38

Become the transition partner
of choice
We acknowledge our customers
within these sectors may follow
different transition pathways
depending on the characteristics of
their business.
Decarbonisation of our portfolio is
unlikely to be linear and will reflect,
for example, the development of
net-zero enabling technologies and
transition opportunities deployed
by customers, improvements in
data quality, and further evolution
of methodologies. We continue to
integrate and operationalise our
targets into our business processes
and lending decisions.
Success in meeting our targets will
depend on collaboration with our
customers who are also on a journey
to transition their businesses to a net-
zero emissions economy.
Discussions with institutional
customers on climate change is a
regular part of our engagement,
particularly in sectors that are high
emitting or are recognised as a
significant transition risk.
These discussions, along with
enhancements to our management
of ESG risks as part of our credit
process, have enhanced the depth
and rigour of our engagement on
climate change.
We will continue to engage
customers in sectors with targets
and seek to support their businesses
through the transition.
As a bank, we play a significant role in
the transition to a net-zero economy.
In FY22,
we achieved over $1.9 billion
in new lending
1
to climate change
solutions
2
taking us to over $3.8
billion since 2020, achieving our
target of $3.5 billion in new lending
from 2020 to 2023, and working
towards our target of $15 billion in
new lending by 2030. As at the end
of FY22, Westpac’s total exposure
to climate change solutions
3
is
$10.8 billion.
During FY22, we trained
approximately 3,000 employees
on ESG fundamentals to build
climate and ESG risk management
capabilities across the business.
In FY22, we supported WIB and
WNZL customers across 69
Sustainable Finance transactions

(including green, social, sustainability,
sustainability-linked and re-linked
loans and bonds) with a total volume
of $108 billion
4
across multiple
currencies and jurisdictions.
WNZL supported nine customers
to execute Sustainability-Linked
Loans in FY22, including seven for
which WNZL was a Sustainability
Coordinator
5
. Overall, New Zealand
borrowers executed NZD3.98 billion
of Sustainability-Linked Loans,
of which approximately a quarter
(NZD0.94 billion) sits on WNZL’s
Balance Sheet
6
. WNZL was Sole
Sustainability Coordinator or Green
Bond Advisor on all four inaugural
Green and Sustainability Bond
issuances in FY22.
Westpac is also the largest bank
lender to greenfield renewable
energy projects in Australia over the
past five years
7
.
In FY22, renewables accounted for
80% of our total committed exposure
to the electricity generation sector
(see the Energy Sector Value Chain
table).
FY22 progress highlights of our current Climate Action Plan - products and services
Acted as Joint
Sustainability
Coordinator and
Lead Arranger
for the first
8

Sustainability-
Linked Loan in the
manufacturing
sector in Australia.
Introduced a hybrid
and electric car loan
with a preferential
rate to buy an
eligible new or used
hybrid or electric
vehicle.
Announced a
new partnership
with sustainability
fintech Cogo to help
customers track their
carbon footprint
and make more
environmentally
friendly choices
9
.
WNZL launched
a pilot for a new
Sustainable
Agribusiness Loan
with a small group of
farming customers.
The loan is the
first of its kind to
require a customer
to meet all parts
of the Sustainable
Agriculture Finance
Initiative (SAFI)
guidance
10.
WNZL refreshed
the Westpac
Warm Up loans to
enable home loan
customers to borrow
up to NZD40,000
interest-free to make
their homes warmer,
drier and/or more
energy efficient, with
new electric vehicle
charger and solar
battery options.
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FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION

Understanding our financed
emissions
In FY21, we undertook analysis
to estimate financed emissions
associated with loans in our
Australian business, institutional and
residential mortgage portfolios.
This year, we broadened our analysis
and reporting to include WNZL,
Scope 3 emissions within certain
sectors
1
and reported estimated
emissions for Secured Commercial
Real Estate (CRE).
In FY22, the absolute financed
emissions of our total assessed
lending portfolio are estimated
at 40.8MtCO
2
-e, with Mining,
Manufacturing, Agriculture and
Utilities as the sectors with the
highest financed emissions.
The average emissions intensity of
our lending portfolio for FY22 is
estimated to be 0.052 kgCO
2
-e per $
of in-scope exposure, compared with
an estimated 0.056 kgCO
2
-e per $ of
in-scope exposure in FY21
2
.
Our estimated average data quality
score
3
across the total assessed
lending portfolio is 4.3 for Scope 1
and 2 emissions.
This analysis will guide our efforts
and approach for the development
of targets for other sectors in our
lending portfolio, consistent with our
NZBA commitment.
As data availability and calculation
methodologies evolve, we will review
our approach and seek to continue to
improve our data quality score and
reliability of our financed emissions
reporting.
Refer to our Targets and Financed
Emissions methodology on our
website for more information
on our financed emissions
analysis, including data sources,
assumptions and limitations.
Sectors in our financed emissions
analysis is based on ANZSIC codes.
These sector definitions differ from
those used for our 2030 sector
targets and Energy Sector Value
Chain reporting.
Estimated financed emissions of our lending portfolio (Group – Australia and New Zealand)
FY22
FY21
(rebaseline)
SECTOR
% OF
TOTAL
IN-SCOPE
EXPOSURE
SCOPE 1 AND 2
(MtCO
2
-e)
SCOPE 3
(MtCO
2
-e)
% OF TOTAL
ABSOLUTE
EMISSIONS
WEIGHTED
AVERAGE
DATA QUALITY
SCORE
(SCOPE 1 & 2)
FY22 TOTAL
EMISSIONS
INTENSITY
FOR IN-SCOPE
EXPOSURE
(kgCO
2
-e/$)
FY21 TOTAL
EMISSIONS
INTENSITY
FOR IN-SCOPE
EXPOSURE
(kgCO
2
-e/$)
Agriculture3%4.110% 4.9 0.1760.187
Manufacturing3%4.34.822% 4.0 0.4440.384
Mining1%1.811.332% 2.9 2.1032.215
Property (excluding
secured Commercial
Real Estate
and Residential
Mortgages)
2%0.31% 4.4 0.0180.008
Transport and
Storage
2%1.23% 4.1 0.0750.082
Utilities2%3.89% 3.5 0.3130.297
Other (non-emissions
intensive sectors)
4
17%4.712% 4.6 0.0360.043
Residential
Mortgages
63%3.38% 4.3 0.0070.007
Secured Commercial
Real Estate
7%1.33% 5.0 0.023N/A
Total100%24.716.1100% 4.3 0.0520.056
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WESTPAC GROUP 2022 ANNUAL REPORT 40

We recognise the energy sector’s
critical role in the transition to a
1.5°C-aligned net-zero emissions
economy and our role in supporting
this change. Customers and
transactions in these sectors are
assessed using our Group ESG
Credit Risk Policy, which includes our
Climate Action Plan commitments.
This year, movements in customer
exposures have in part been driven by
commodity prices and exchange rate
fluctuations, particularly in sectors
where customer exposures are
predominately denominated in USD,
such as the Oil and gas sector.
In FY22, our total committed
exposure to the Mining sector was
approximately 0.66% of Group
total, with Coal mining (thermal and
metallurgical) at approximately 0.04%
of the total and Oil and gas extraction
at approximately 0.15% of the total.
In future, we aim to modify our
reporting of Energy Sector Value
Chain to better align with reporting
progress against our 2030 sector
targets (refer to our Targets and
Financed Emissions methodology).
Mining and
extraction
Transport
Electricity
generation
6
Oil and gas
refining
Oil and gas
Extraction
2
FY22 $1.87bn
FY21 $1.84bn
FY20 $2.22bn
Exploration
2
FY22 $0.00bn
FY21 $0.33bn
FY20 $0.56bn
Oil and gas
LNG terminal
5
FY22 $0.69bn
FY21 $0.52bn
FY20 $0.57bn
Gas
FY22 $0.54bn
FY21 $0.58bn
FY20 $0.67bn
FY22 $0.64bn
FY21 $0.58bn
FY20 $2.02bn
Black coal
FY22 $0.18bn
FY21 $0.19bn
FY20 $0.27bn
Brown coal
FY22 $0.05bn
FY21 $0.03bn
FY20 $0.03bn
Distribution
and retail
Electricity
and gas
6
Networks
FY22 $3.48bn
FY21 $3.80bn
FY20 $4.53bn
Retailers
FY22 $0.97bn
FY21 $1.01bn
FY20 $0.77bn
Coal
Metallurgical coal
FY22 $0.13bn
FY21 $0.29bn
FY20 $0.21bn
Metallurgical coal
in diversified
miners
3

FY22 $0.15bn
FY21 $0.02bn
FY20 $0.03bn

Thermal coal
4
FY22 $0.20bn
FY21 $0.22bn
FY20 $0.30bn

Coal
Rail
FY22 $0.79bn
FY21 $0.30bn
FY20 $0.28bn
Port
FY22 $0.35bn
FY21 $0.32bn
FY20 $0.44bn

Liquid fuel
FY22 $0.06bn
FY21 $0.12bn
FY20 $0.12bn
Hydro
FY22 $0.98bn
FY21 $1.26bn
FY20 $1.30bn
Other renewables
FY22 $2.35bn
FY21 $2.23bn
FY20 $1.89bn
Oil and gas
FY22 $2.58bn
FY21 $2.10bn
FY20 $1.32bn
3 Collaborate for impact on initiatives towards net-zero and
climate resilience
Addressing climate change requires collective action and collaboration. In 1991, Westpac was a founding member of the
United Nations Environment Program Finance Initiative (UNEP FI) and we have since been an active participant. This
year the UNEP FI reached their 30th anniversary. Over this time, the UNEP FI has worked with investors, insurers and
banks world-wide to establish key sustainability frameworks such as the Principles for Responsible Banking.
This year, we participated in the Australian Industry Energy Transitions Initiative which brings together industry, finance,
government entities and research organisations to coordinate learning and action on net-zero emissions supply chains.
We also continue to support climate initiatives through industry associations such as the Australian Banking Association
and the Australian Sustainable Finance Institute.
For more information, refer to our updated Climate Action Plan on our website.
2022 Sustainability Index and
Datasheet
Refer to our 2022 Sustainability
Index and Datasheet on our
website for more information on
our Energy Sector Value Chain
reporting, including sector scope
and definitions. Apart from Thermal
coal in FY22, the definitions used
for sectors in our Energy Sector
Value Chain reporting currently
differ from those used for our
2030 sector targets and financed
emissions reporting.
1. All figures in Energy Sector Value Chain
diagram are TCE as at 30 September 2022.
WIB only.
2. Oil and gas extraction and Oil and gas
exploration sector boundaries are defined
based on Australian and New Zealand
Standard Industry Classification (ANZSIC)
codes.
3. For diversified miners, exposure to coal is
apportioned by the percentage EBITDA
contribution of coal in the miners’ latest annual
financial statements. Thermal coal exposure
within diversified miners is immaterial.
4. The definition and scope of Thermal coal
has been updated for FY22 only to align
with the definition used for our 2030 sector
target. For metrics relating to Thermal coal
in FY20 and FY21 the sector definition and
scope is detailed in the Glossary section in
our 2022 Sustainability Index and Datasheet.
Metallurgical coal mining is all other coal
mining.
5. For Oil and gas extraction customers with
LNG terminal operations, the exposures to
LNG terminals are reported in the Transport
category.
6. Australia and New Zealand only. These
activities include customers with operations
in several sectors – TCE is attributed based on
business segment contribution.
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Westpac understands that over half
of the world’s economy is moderately
or highly dependent on nature
1
. We
welcome the emergence of and have
joined the Taskforce on Nature-related
Financial Disclosures (TNFD) Forum
and are currently participating in
pilots with the UNEP FI and UNEP
World Conservation Monitoring Centre
(UNEP WCMC) to further develop this
framework.
In FY22, we initiated high-level analysis
on our Australian and New Zealand
business and institutional lending
portfolios to identify sectors that are
highly dependent on nature and the
sectors that have a high impact on
nature. Once completed, this analysis
will guide our future understanding
of the nature-related risks and
opportunities in our portfolio so we can
develop approaches to help us support
customers. Dependency relates to the
extent a sector is reliant on ecosystem
services to operate. Impact relates
to the extent a sector negatively
influences environmental change.
Our initial analysis of sectors with the
greatest level of dependency or impact
based on the level of exposure we have
is included in the adjacent table.
In FY23, we will seek to develop a
natural capital position statement to
further our approach to nature-related
risks and opportunities. Our analysis
will consider TNFD developments, the
outcomes from the UN Biodiversity
Conference (COP15), 2021 Australian
State of the Environment Report, and
impact on the bank and customers for
sectors that are materially dependent
or have a material impact on natural
capital.
Initial analysis of highly dependent and impactful sectors
2

RANKHIGHLY DEPENDENT SECTORSHIGHLY IMPACTFUL SECTORS
1
AgricultureElectricity and gas supply
2
Electricity and gas supplyProperty services
3
Food and beverage manufacturingAgriculture
4
Basic material wholesalingConstruction and trade services
5
Property servicesServices to transport
6
Personal and household goods
wholesaling
Business services
7
Construction trade servicesOil and gas extraction
8
Services to transportPetroleum, coal and associated
product manufacturing
9
Communication servicesGeneral construction
10
Machinery and motor vehicle
wholesaling
Machinery and equipment
manufacturing
Natural capital
CASE STUDY
Sustainability-linked lending targeting biodiversity
and natural capital
In 2022, Westpac supported North Queensland Airports (NQA)
– the owner of Cairns and Mackay Airports – with one of the very
first sustainability-linked loans in the Australian market to address
biodiversity and natural capital. Westpac acted as joint sustainability
coordinator for the transaction. The loan includes key performance
indicators which incentivise the airport operator to enhance the
habitat surrounding Cairns Airport and help save threatened wildlife, in
partnership with the local Yirrganydji people. Other initiatives linked to
the agreement include the reduction of greenhouse gas emissions to
net-zero by 2025, and support of First Nations peoples by prioritising
procurement from contactors with a defined percentage of Aboriginal
or Torres Strait Islander employees. If the loan KPIs are reached –
along with others tailored to emissions reductions and Indigenous
engagement – North Queensland Airports will be rewarded with a lower
interest rate. Conversely, a higher rate will apply if they are missed.
1. From research in the World Economic Forum’s report, Nature Risk Rising: Why the Crisis Engulfing Nature Matters for Business and the Economy. 2020.
2. The highly dependent and impactful sectors analysis was developed using the World Economic Forum’s (WEF) methodology. This methodology is the
currently best available information for a high-level assessment. Westpac’s approach and application of the WEF dependency methodology has been
reviewed by Southern Cross University. Sector dependency and impact was based on the ENCORE (Exploring Natural Capital Opportunities, Risks and
Exposure) tool and used the UNEP WCMC Sectoral Materiality Tool. The ENCORE tool is a global tool and does not take into account national or company
specific differences in production processes. The sectors are aligned to ANZSIC Level 2 codes.
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WESTPAC GROUP 2022 ANNUAL REPORT 42

Human
Rights Action Plan, FY21 Modern
Slavery Statement and our website.
Our salient human
rights issues and focus
for action
One of the actions in our Human
Rights Action Plan is to review
our salient human rights issues
1
. In
FY23, we will publish a refreshed
Human Rights Action Plan. As part
of this, we intend to initiate a refresh
of our salient issues assessment
2
,
with the aim of bringing in internal
and external stakeholder input to
inform our understanding of our
salient issues for FY23 and beyond.
In the interim, we have reported on
this year’s highlights, progress and
management actions against the
salient issues we identified in FY21.
These are outlined in the following
table.
Climate-related risks and the
transition to net-zero emissions may
impact employees, communities and
customers. We continue to build our
understanding of the interrelationship
between social impacts, human rights
and climate change.
Other emerging human rights issues
we responded to throughout the year
included:
—Impacts of artificial intelligence
and machine learning (AI/ML):
There is potential for the AI and ML
applications we use in our products
and services to have unintended
consequences on our people and
customers. We recognise the
need to take an active approach
to ethical use of both data and AI
to manage risk and maintain trust.
We have developed data ethics
principles to guide the way we
use AI. Using these principles, we
seek to use and disclose data in
a clear and transparent way, and
when using data, we encourage
our people to ask if we are doing
the right thing to maintain trust of
customers, people, communities
and shareholders. This year, we
established a Responsible AI
working group to further strengthen
our management of AI/ML risk. This
will inform future uplift including
accountability, risk management
and awareness and capabilities.
—Risks to human rights related to our
defence sector clients: The defence
sector has the potential to lead to
serious human rights violations.
This year we commenced review
of our Defence Position Statement
to better address the dynamic
nature of ESG risks (with a focus on
human rights risk) that may arise
for example through the end-use
of defence equipment and end-
use in countries in conflict or with
otherwise high human rights risk by
requiring enhanced due diligence.
CASE STUDY
Helping address child
sexual exploitation in the
Philippines
Through our Safer Children, Safer
Communities program, which
emerged from the third pillar
of Westpac’s Response Plan to
the AUSTRAC November 2019
Statement of Claim, with funding in
place for major partners for between
3-6 years, we remain committed
to reducing the human impact of
financial crime on children and
young people, especially in high-risk
countries such as the Philippines.
In FY22, funding through the
program helped:
—International Justice Mission
support 174 victim rescues, train
400 law enforcement officials
and 120 prosecutors, and assist in
the conviction of 40 perpetrators
—Save the Children Australia
provide child protection training
to over 3,000 children and 1,500
adults across 32 community
training workshops to raise
awareness of online child sexual
exploitation in the Philippines.
Internally, within the bank, our
Child Safeguarding Position
Statement guides our approach
towards identifying, preventing
and mitigating risks to children
and young people across our
products, services and operations.
More information on our progress
is available in the Sustainability
Supplement.
1. Salient human rights issues are those at risk of causing the most harm to people and of having the most severe negative impact on their human rights, as a result
of our activities and business relationships.
2. Our first salient human rights assessment was conducted in 2018 and has been reviewed on an annual basis. This year, we have reported against the salient issues
that we identified in FY21. These will be refreshed again in FY23 as part of our next Human Rights Position Statement and Action Plan. We did not identify salient
issues in FY21 in relation to our role as a supporter of the community.
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—Customer vulnerability and
hardship, including customer
safety and access.
—Groups at particular risk of
experiencing vulnerability may
include women, young people,
and more broadly people living
with disability. Aboriginal and
Torres Strait Islanders continue
to be significantly represented
in severely or fully financially
excluded groups.
—Impacts on the rights and
wellbeing of children and young
people through customers
exploiting our financial platforms
for criminal purposes.
—Individuals’ privacy may be at risk
as a result of the bank’s function.
—Refer to Annual Report and Sustainability Supplement for our
support of customers identified as being at increased risk of
vulnerability, and progress on our Access and Inclusion Plan
2021-2024 on our website. We will explore the issue of access
to banking and digital inclusion in our next Human Rights
Action Plan.
—Refer to the Sustainability Supplement and our 2022-2025
Reconciliation Action Plan on our website for how we seek
to support the needs of Aboriginal and Torres Strait Islander
customers.
—We continue to take action to help reduce the likelihood of
harm to children and young people. Refer to Case study:
Helping address child sexual exploitation in the Philippines
and our Safer Children, Safer Communities website.
—We sought to improve our Privacy Policy and Standards
to support the protection of personal information and
customers’ privacy. We simplified our Privacy Statement,
streamlining important privacy and credit related information
customers need to know from four documents into one.
We also sought to raise awareness on privacy across the
Group and contributed to industry feedback on the Attorney
General’s Privacy Act Review.
Lender
—Land rights, including the rights of
Indigenous communities, and the
issue of free, prior and informed
consent (FPIC) and land grabbing.
—Modern slavery, including forced
labour and the worst forms of
child labour.
—Our 2022-2025 Reconciliation Action Plan on our website
sets out a focus on respect for self-determination and a
deeper understanding of consent.
—We partnered with Monash University to provide ESG
training, including a focus on human rights, to support over
1,100 staff including institutional, business bankers and risk
officers.
—We continue to develop our approach to ESG risk
assessment, including assessment of social risk and human
rights across our Commercial and Institutional customers.
Employer
—COVID-19 impacts on employees,
work related mental ill-health and
workforce wellbeing.
—Exclusion and discrimination
in employment, diversity of
employees and equal employment
opportunity.
—Refer to Annual Report and Inclusion and Diversity page on
our website for more on our ongoing focus on inclusion and
diversity and fair pay and gender pay equity.
—We have a comprehensive mental health strategy that
seeks to support our people’s mental health and wellbeing.
This includes free, confidential counselling and support
for employees and their immediate family, mental health
training, a dedicated Employee Care team (comprised of
psychologists and people with allied health backgrounds),
and mental health initiatives and resources to support
emerging risks. We expanded our mental health support for
employees in responding to the COVID-19 pandemic, with
targeted initiatives to support people through lockdowns,
transitioning to new ways of working and the broader
impacts of the pandemic. We also provided paid COVID-19
leave to support our people when they could not work due to
isolation requirements.
Purchaser
of goods
and
services
—Products, components or services
from categories which are high risk
for human rights, including Modern
Slavery
—Following prior years’ focus on identifying high risk
categories in our supply chain and setting our assessment
approach, in FY22 we launched and commenced using our
new digital supplier risk assessment platform, assessing
suppliers and operational management including supplier
action plans.
—We have continued to take a risk-based approach by
using our Responsible Sourcing Assessment to screen 93%
of spend in high-risk categories and all top 100 suppliers by
spend.
—We have been working to improve our ongoing management
of human rights risk throughout the procurement lifecycle
including through the creation of supplier action plans.
—We are ready to use our digital platform to work with a
greater number of suppliers to seek to improve their modern
slavery practices and set action plans.
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Risk
management
Risk management
Effective risk management is
important given our role of
supporting customer lending,
deposits and transactions, and in
supporting the overall financial
system. It is also important as we
address the issues that we and our
regulators have identified including
in APRAs risk governance review,
which resulted in us entering into
a Court Enforceable Undertaking
with APRA in 2020.
We seek to create sustainable value
to support customers and other
key stakeholders through effective
management of risk, seeking
appropriate reward for risk aligned
to our purpose, strategy, values and
behaviours.
How we manage risk
Our Risk Management Framework
outlines how we manage risk,
providing structure and discipline
for risk management activities.
This is underpinned by our risk
culture that requires all our staff to
own risk outcomes (the Three Lines
of Defence model) with customers
at the centre to provide a complete
approach to managing risk and to
deliver fair customer outcomes.
Our Risk Management Framework
has nine components starting with
our ‘Business Strategy’, which
defines the markets and businesses
we operate in. Some of our risks
are stress tested and/or subject
to scenario analysis to assess
how major events and changing
conditions could impact our
operations, financial performance,
balance sheet or reputation. Stress
testing is particularly relevant in
our lending where we assess the
impact of changing economic
conditions on customers, and our
financial position.
Risk is managed by our people and
systems, and underpinned by risk
frameworks, policies, procedures
and standards.
Risk frameworks, policies,
procedures and standards may
operate at the Group level, across
major risk categories as well as
for individual regulated entities
or segments.
We also have processes in place to
monitor and report risks, incidents,
issues and actions. These include
reporting of breaches of limits.
We are focused on resolving long-
standing issues and taking action
to bring risks within appetite.
We have a formal risk governance
structure to support our risk
management framework by
providing appropriate data, analysis
and recommendations to support
decision making.
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Risk Culture
A strong risk culture is essential
for the Group’s Risk Management
Framework to operate effectively.
We are currently undertaking a
Group-wide program to strengthen
the management of risk and risk
culture.
We are building a risk culture
that helps us to actively identify,
manage and mitigate risks, learn
from risk events and continuously
anticipate new risks. We use several
tools to measure, monitor and
manage our risk culture:
—Risk Culture Framework
– articulates the roles and
responsibilities for measuring,
monitoring and managing risk
culture
—Risk Culture Self-Assessment –
an annual self-assessment for
business areas enabling them to
understand current risk culture
mindsets and behaviours and
identify and prioritise areas for
improvement
—Risk Culture Insights Program
– independent, second line
deep-dives are conducted to
understand the direct causes
of issues and strengths that
influence how people behave
and manage risk. Support is
also provided to the business
to understand how to address
these issues and to improve the
approach to managing risk
—Risk Culture Dashboard – a
comprehensive scorecard of risk
culture metrics that is updated
automatically and is available
online.
Governance and
Management Control
Business Strategy
Risk Identification
Risk Appetite
Stress and
Scenarios Analysis
People and
Infrastructure
Control Definition and
Effectiveness
Monitoring and
Reporting
Actions and
Response
Westpac’s business plans
are shaped considering the
risks associated with its
strategic objectives
Identifying
new and
emerging risks in
our business
from internal and
external
environments
Setting risk
appetite to
provide clarity on
the level of risk
we are prepared
to take
Performing stress
tests to assess
potential impacts
that changes to
existing risks and
new risks may
have on the
Group, including
on our capital
Having the right capability, people, data
and systems to support effective risk
management and decision making
Embedding appropriate
Frameworks, policies,
standards and controls to
manage the risks we take
Risks are
assessed
through ongoing
monitoring,
management,
reporting
and assurance
Appropriate
action plans
are
implemented
to improve
our risk
profile
Ensuring that appropriate data,
analysis and recommendations flow to
the right people and forums on a timely
basis to support decision making
Customers
Board approved 1 February 2022
Risk Management Framework
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WESTPAC GROUP 2022 ANNUAL REPORT 46

The Group has defined 11 major risks that impact our business. These major risks represent only the most material
risks to the Group and are not exhaustive.
Major Risk Categories
1
Capital
Adequacy
2
Funding &
Liquidity
Risk
3
Credit
Risk
4
Market
Risk
5
Strategic
Risk
6
Risk
Culture
7
Operational
Risk
8
Compliance
& Conduct
9
Financial
Crime
10
Cyber
Risk
11
Reputational &
Sustainability
Risk
For each major risk (category), the Board establishes a risk appetite, which is articulated in the Board Risk
Appetite Statement (RAS). The RAS lists the Group’s major risks and the measures and tolerances used to monitor
these risks. Most of these measures are monitored by ‘amber’ and ‘red’ tolerances which indicate when risks are
close to, or over, the Board’s approved appetite.
Following is an explanation of our major risk categories, how we consider risk appetite and examples of areas of
focus to illustrate how our Risk Management Framework operates.
Three Lines of Defence
Three Lines of Defence
Our Three Lines of Defence sets the context for the roles all employees are expected to play in risk management.
The first line is responsible for identifying and owning the risks in all aspects of their activity. The second line
provides expertise, advice, and monitoring of how risks are managed. The third line is Internal Audit, who provide
independent assurance.
First Line
Identify, control
and manage risk
Third Line
Internal
audit
Internal audit
—Provide independent assurance to the Board and executive
management on the adequacy and effectiveness of the Group’s
governance, risk management and internal controls
Risk oversight
—Establish and communicate risk frameworks, appetite,
and strategies
—Provide independent challenge to first line
—Measure, monitor and report risks against appetite
Risk owner
—Own existing and emerging risks in their segment by
identifying, managing and monitoring
—Operate within approved risk appetite and policies
—Design, implement and maintain controls
—Comply with laws and regulation
—Identify and escalate risk issues
—Promote a strong risk culture
Second Line
Set the risk standards,
provide challenge and
advise the first line
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1
Capital
Adequacy
The risk that Westpac
has an inadequate
level or composition
of capital to support
its normal business
activities and to meet
its regulatory capital
requirements under
normal operating
environments or
stressed conditions.
Risk Appetite and Mitigation
We seek to maintain a strong balance
sheet including in stressed scenarios.
We evaluate capital management through
our Internal Capital Adequacy Assessment
Process, the key features of which include:
—capital management strategy
—considering economic and regulatory
requirements and stakeholder
perspectives
—stress-testing considerations
—target operating range for
key capital ratios.
Areas of focus include:
—new operating capital ranges
following APRA finalising its
Basel III requirements
—actively monitoring and managing
Interest Rate Risk in the Banking
Book (IRRBB) RWA, given
increases over the past year from
higher regulatory embedded
losses as interest rates increased.
Example of a Risk Appetite
measure
—common equity tier 1 (CET 1)
capital ratio – a measure which
shows a bank’s capacity to
absorb losses.
2
Funding and
Liquidity Risk
The risk that the Group
cannot meet its payment
obligations or that
it does not have the
appropriate amount,
tenor and composition
of funding and liquidity
to support our assets.
Risk Appetite and Mitigation
We seek to manage our balance sheet
such that we:
—maintain a diversified, stable and
cost-effective funding base
—can source funding as and when
we need it
—have sufficient securable assets to meet
our funding and repo requirements
—fund new lending growth with stable
funding sources.
Areas of focus include:
—executing the FY23 wholesale
funding plan to support balance
sheet growth and refinance
maturing debt, including the Term
Funding Facility from June 2023
—managing liquidity risk to meet
regulatory requirements and the
Group’s liquidity needs amidst
uncertain market conditions.
Examples of a Risk Appetite
measure
—Net Stable Funding Ratio (NSFR)
—Liquidity Coverage Ratio (LCR)
3
Credit
Risk
The risk of financial
loss where a customer
or counterparty
fails to meet their
financial obligations
to Westpac.
Risk Appetite and Mitigation
We manage credit risk using Program-
managed (high-volume homogeneous
credit risk) and Transaction-managed
(individual customer and transactions)
approaches.
We seek to manage credit risk by:
—clearly setting boundaries which
helps to guide appropriate, credit
risk conscious strategic choices, and
promotes dynamic and risk conscious
strategic responses to changes in the
operating environment
—Credit Risk management is also
supported by a range of policies,
processes, systems, risk delegated
authorities and Board-approved credit
risk limits.
Further information on credit risk
management and provisioning is
contained in Notes 11 and 12 to the financial
statements, and in Westpac’s Pillar 3
reports.
Areas of focus include:
—responding to heightened credit
risk from global economic
uncertainty, rising interest rates,
climate change, and the transition
to net-zero emissions
—assessing the impact of external
events on the adequacy of the
overall expected credit loss
provision.
Example of a Risk Appetite
measure
—top 10 exposures to Corporates
and Non Bank Financial
Institution’s as a % of Total
Committed Exposure.
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Market
Risk
The risk of an
adverse impact on
earnings resulting
from changes in the
value of Westpac’s
positions as a result of
a change in financial
market factors, such
as foreign exchange
rates, interest rates,
commodity prices and
equity prices. This
includes interest rate
risk in the banking
book which is the risk
of loss in earnings
or economic value
in the banking book
as a consequence of
movements in interest
rates.
Risk Appetite and Mitigation
We have appetite for market risk in
approved products within our limit
framework. We seek to protect our
positions from changes in financial market
factors which may affect our activities.
We manage market risk through the daily
measurement and monitoring of Board
approved metrics that capture the risk of
adverse movements in financial markets.
The Board has approved a risk appetite
for traded and non-traded risks via the
measurement of Value at Risk (VaR),
Stressed VaR (sVaR), Net Income at Risk
(NaR) and specific structural risk limits.
The management of market risk
is supported by the Market Risk
Management Framework and associated
policies, processes, systems and
delegated authorities.
Areas of focus include:
—further strengthening the market
risk management environment
—upgrading/replacing market
risk systems and supporting
infrastructure
—implementing regulatory change
initiatives related to market risk
prudential standards.
Examples of a Risk Appetite
measure
—Value at Risk (VaR, $m) across
products and portfolios
—Net interest income at Risk
(NaR, $m) – potential reduction
in income over the year for a
material shift in the level of
interest rates.
5
Strategic
Risk
The risk that the Group
makes inappropriate
strategic choices, does
not implement its
strategies successfully,
or does not respond
effectively to changes
in the operating
environment.
Risk Appetite and Mitigation
We seek to grow our business through
well-considered strategic initiatives
aligned to the Group’s strategic priorities
and risk appetite.
We seek to manage the impact of
threats from changes in the operating
environment, which could significantly
impact our ability to implement our
strategy.
We continually evaluate our performance
against our plans and in light of changes
in internal and external factors, and we
must respond to such factors in a timely
manner.
Areas of focus include:
—progressing our response to the
Court enforceable undertaking with
APRA through the CORE Program
—appropriate funding, resourcing,
and delivery of regulatory
commitments
—investing in data, digital, and
improving customer service while
considering our cost targets.
Example of a Risk Appetite
measure
—actual ROE (tracking against
the Target ROE).
6
Risk
Culture
The risk that our
culture does not
promote and
reinforce behavioural
expectations and
structures to identify,
understand, discuss
and act on risks.
Risk Appetite and Mitigation
We promote a risk culture which supports
our purpose, strategy and values and our
ability to manage risk effectively.
We regularly assess our risk culture
and undertake initiatives to continually
improve.
Areas of focus include:
—improving the Risk Culture
Framework
—deploying Risk Fundamentals
training
—completing annual Risk Culture
Maturity self-assessment
identifying programs for
improvement.
Example of a Risk Appetite
measure
—internal survey results – %
of respondents who feel
safe calling out risks and/or
concerns.
Major Risk Categories (continued)
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Operational
Risk
The risk of loss from
inadequate or failed
internal processes,
people and systems or
from external events.
Risk Appetite and Mitigation
We recognise that operational risk is
a necessary part of doing business.
We seek to be resilient to operational
risk and minimise the risk through robust
processes and controls.
We seek to quickly and effectively
remediate material operational issues
and incidents.
Areas of focus include:
—reducing complexity and
executing risk management
consistently
—improving the end-to-end control
environment and management
of risks in line with value chain
process management
—managing risks from third parties
and suppliers including risks
related to business resilience
—monitoring Technology Disaster
Recovery to ensure that the
Group’s critical applications
can recover from disruption
—strengthening focus on ethical
and responsible use of data and
artificial intelligence.
Examples of a Risk Appetite
measure
—% of key controls rated
“unsatisfactory” or “requires
improvement”
—% of Critical Applications that
have successfully undergone
disaster recovery testing in the
last 12 months
—completion of Executive
Crisis Management, Group
Incident Management and
Division Incident Management
simulations (or activations)
—effective and adequate
management of the quality
of critical data.
8
Compliance
& Conduct
The risk of failing to
abide by compliance
obligations required of
us, or otherwise failing
to have behaviours
and practices that
deliver suitable, fair
and clear outcomes
for our customers and
that support market
integrity.
Risk Appetite and Mitigation
We establish robust controls and systems
to manage compliance and conduct risk.
We seek to eliminate:
—any breaches of regulatory
requirements
—conduct that causes unsuitable, unfair
or unclear customer outcomes or
adversely impacts the integrity of
markets
—complicated systems or processes
that could lead to systemic or material
breaches of regulatory requirements.
We seek to promptly own, investigate and
remediate incidents of non-compliance.
Areas of focus include:
—uplifting the Group’s compliance
and conduct management
system, including related risks
such as Design and Distribution
Obligations, Privacy and Breach
Reporting
—working with our people and
contractors to embed hybrid
working models.
Example of a Risk Appetite
measure
—average days to complete all
Compliance Assessments.
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Financial
Crime
The risk that Westpac
fails to prevent
financial crime and
comply with applicable
global financial crime
regulatory obligations.
Financial Crime includes
Anti-Money Laundering,
Counter Terrorism
Finance, Sanctions,
Anti-Bribery and
Corruption, Foreign
Account Tax Compliance
Act and the Common
Reporting Standard.
Risk Appetite and Mitigation
We help prevent financial crime by
proactively identifying, assessing,
mitigating and reporting financial
crime risks.
We seek to comply with all applicable
financial crime obligations. This means
managing our financial crime risks through
robust controls and systems, and includes
promptly owning, investigating and
remediating financial crime incidents.
Areas of focus include:
—continuing to strengthen controls
and to enhance our management
of financial crime risk
—delivering the Group’s data
strategy to reduce operational
risk in our Financial Crime systems
and processes to better support
compliance and risk management
—embedding new and enhanced
systems and controls to identify,
mitigate and manage financial
crime risk.
Example of a Risk Appetite
measure
—number of high rated Issues
which haven’t been remediated
within the initially agreed
timeframe.
10
Cyber
Risk
The risk that the
Group’s or its third
parties’ data or
technology are
inappropriately
accessed, manipulated
or damaged from
cybersecurity threats
or vulnerabilities.
Risk Appetite and Mitigation
We proactively manage our cyber
risk exposure, to limit the likelihood of
inappropriate access, manipulation or
damage to our and our third parties’ data
and technology.
We seek to protect the data of our
stakeholders and customers.
We seek to ensure that:
—we manage our risks within
regulatory frameworks
—we do not undermine our strategic,
financial, reputational or regulatory
standing
—we implement controls to address
potential cyber threats.
Areas of focus include:
—enhancing cybersecurity
capability including data security
controls, application protection
controls, and identity and access
management
—embedding a consistent cyber risk
management framework across
the Group.
Examples of a Risk Appetite
measure
—control effectiveness against
external cyber threats
—number of employees who
acted appropriately during
simulated malicious email
attacks.
Major Risk Categories (continued)
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Reputational &
Sustainability Risk
The risk of failing to
recognise or address
environmental,
social or governance
(ESG) issues and the
risk that an action,
inaction, transaction,
investment, or event
will reduce trust in
Westpac’s integrity
and competence by
clients, counterparties,
investors, regulators,
employees or the
public.
Risk Appetite and Mitigation
We seek to maintain the confidence of all
stakeholders, including to cultivate trust in
our integrity and competence.
We seek to balance commerciality of
decisions with stakeholder expectations,
and with potential impacts on people,
communities or the environment,
recognising that ESG issues can involve
complex, interconnected and at times
competing considerations.
Areas of focus include:
—elevating the importance of
Reputation and Sustainability Risk
across the Group
—progressing our Culture Reset
Program
—committing to the Net-Zero
Banking Alliance (NZBA) and
continuing to align our lending
portfolios with net-zero emissions
by 2050, consistent with a
maximum temperature rise of 1.5°C
above pre-industrial levels by 2100
(including setting interim 2030
sector targets)
—maturing our approach to climate
risk management, including
participating in APRA’s Climate
Vulnerability Assessment, and
considering APRA’s Prudential
Practice Guide CPG229 Climate
Change Financial Risks
—continuing to improve the
identification and management
of climate change and human
rights risks.
Examples of a Risk Appetite
measure
—RepTrak scores
—portfolio measures aligned
to NZBA targets.
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WESTPAC GROUP 2022 ANNUAL REPORT 52

Board Committees
Provide relevant periodic assurances
and reports (as appropriate)
Provide assurance
on the remuneration
disclosures in the
Remuneration Report
Provide assurance on
risk components of
the annual report and
interim/annual financial
results announcements
Delegation
Assurance,

Oversight through
Reporting
Accountability
Accountability
Delegation
Delegation
Board Committees will refer matters to the Board or other Board Committee where appropriate.
Board
Independent Assurance and Advice
External
Auditors
Group
Audit
Independent
Assurance and
External Advice
Chief Executive Officer
Group Executives
Nominations
& Governance
RemunerationAuditRisk
Corporate governance
Corporate governance is the
framework of systems, policies
and processes by which we
operate and through which our
people are both empowered and
accountable for making decisions
that affect our business, operations,
customers and stakeholders. The
framework establishes the roles and
responsibilities of Westpac’s Board,
management team, employees and
suppliers. It also establishes the
systems, policies and processes for
monitoring and evaluating Board
and management performance,
and the practices for corporate
reporting, disclosure, remuneration,
risk management and engagement
of security holders.
Our approach to corporate
governance is based on a set
of values and behaviours that
underpin our day-to-day activities,
and are designed to promote
transparency, fair dealing and
the protection of stakeholder
interests, including our customers,
our shareholders, our employees
and our community. It includes
aspiring to the highest standards
of corporate governance, which
we see as fundamental to the
sustainability of our business
and performance.
Board and Board
Committee structure
Our Board is assisted by four Board
Committees.
In FY22, we made two changes
in our committees. The Board
Legal, Regulatory and Compliance
Committee was recombined with
the Board Risk Committee and the
Board Technology Committee was
dissolved with its responsibilities
assumed by the Board and/or
the Board Risk Committee where
appropriate.
Role of the Board and
Board Committees
The Board is Westpac’s key
governance body responsible
for providing leadership and
strategic guidance for Westpac
and its related bodies corporate
and overseeing the sound and
prudent management of the
Westpac Group. The Board
is assisted by its committees,
which, in some instances,
consider matters and make
recommendations to the Board
for approval. A summary of the
responsibilities of the Board
and the Committees is set out
on the opposite page. Further
information can be found in the
Charters for each Committee
which are available on our
website westpac.com.au.
Specific reporting as shown above
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—approves and oversees management’s implementation of
the strategic direction of the Group, its business plan and
significant corporate strategic initiatives
—approves the appointment of the CEO, Chief Financial
Officer (CFO), Group Executives, the General Manager,
Group Audit and any other person the Board determines
—assesses the performance of the Board, its Committees,
the CEO and the Group Executives
—oversees culture across the Group
—approves the Board Renewal Policy and determining
Board size and composition
—approves the Westpac Group Remuneration Policy
—approves remuneration arrangements and variable
remuneration outcomes and adjustments to variable
remuneration where appropriate for Group Executives,
other employees who are accountable persons under
the Banking Executive Accountability Regime (BEAR),
any person performing a role specified by APRA and any
other person the Board determines
—approves the annual financial targets and financial
statements and monitors financial performance
—determines dividend policy and dividend payments
—approves the Group Risk Management Framework,
the Group Risk Management Strategy and the
Board Risk Appetite Statement and monitors the
effectiveness of risk management
—considers the social, ethical and environmental
impact of our activities and setting standards
and monitors compliance/performance with our
sustainability policies and practices
—provides oversight of the Group’s technology
strategy and the implementation of key technology
initiatives
—oversees and monitors workplace health and safety
issues
—meets our principal regulators on a regular basis
—maintains ongoing dialogue with Westpac’s
external auditor.
Board Risk
Committee
Board Audit
Committee
Board Remuneration
Committee
Board Nominations &
Governance Committee
To assist the Board to:
—review and approve the Group
Risk Management Framework,
the Group Risk Management
Strategy, and the Board Risk
Appetite Statement
—review and approve the Group’s
overall framework for managing
financial and non-financial risks
as well
as emerging risks
—oversee the risk culture across
the Group
—make its annual declaration
to APRA on risk management
under APRA prudential standard
CPS 220 Risk Management
—The Committee is also
responsible for:
• providing oversight of the
Group’s management of
financial and non-financial
risks, including financial
crime risk, reputation risk
and sustainability risk
• monitoring changes
anticipated for the
economic and business
environment, including
consideration of emerging
risks and other factors.
Oversees the:
—integrity of financial
statements and
financial reporting
systems of Westpac
—external audit
engagement,
including the
external auditor’s
appointment,
removal and rotation
of the lead audit
engagement partner
—performance of the
internal audit function
—integrity of the
Group’s corporate
reporting including
compliance with
prudential standards
and professional
accounting
requirements.
Reviews and makes
recommendations on:
—the Group’s
remuneration
framework (as
articulated in the
Group Remuneration
Policy), and assesses
its compliance with
laws, regulations and
prudential standards
—individual
remuneration
arrangements and
variable remuneration
outcomes of the CEO,
Group Executives,
other accountable
persons under BEAR,
and any other person
the Board determines
—Non-executive Director
fee levels
—the performance of the
CEO, in conjunction
with the Chairman
—the design and terms
of all Equity Plans.
—recommends to the
Board candidates as
Non-executive Directors
for appointment to the
Board and Boards of
significant subsidiaries
—reviews the process
for orientation and
education of Directors
—considers succession
planning for Non-
executive Directors
—assesses the skills,
experience, expertise and
diversity of the Board
—reviews diversity
generally across
the Group, and sets
measurable objectives
and monitors progress
against those objectives
—reviews and approves
the Group’s corporate
governance policies
(where required),
including relating to
tenure, independence
and renewal/
composition.
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WESTPAC GROUP 2022 ANNUAL REPORT 54

40%
FEMALE DIRECTORS
Corporate Governance
Statement
Westpac’s 2022 Corporate
Governance Statement
describes our corporate
governance framework,
policies and practices at
6 November 2022. The
Statement is available – along
with Board and Committee
Charters, principles and
policies – on our website at
westpac.com.au/corpgov.
2022
WESTPAC BANKING CORPORATION
ABN 33 007 457 141
Corporate
Governance
Statement
100%
OF NON-EXECUTIVE DIRECTORS INDEPENDENT
CEO
Average Board tenure
0-3 years 60% 3-6 years 30%

6-9 years 10%
3.4 years
AVERAGE BOARD TENURE
Board areas of focus in FY22
This year the Board and Board Committees
have overseen:
—the delivery of key strategic priorities and the
review of the Group’s strategy and purpose
—the management of risks arising from the changing
economic and geopolitical environment
—the Group’s capital position, including completing
capital management initiatives
—measures taken to support our customers and our
people due to the impacts of COVID-19, as well as
the impacts of severe weather conditions
—progress of the priorities in our 2021-2023
Sustainability Strategy, including joining the
Net-Zero Banking Alliance
—continued implementation of the Customer
Outcomes and Risk Excellence (CORE) program
—ongoing work to improve our management of
financial crime risk
—changes to our management structure and
executive team to simplify the Group’s operations
and improve accountability
—the ongoing consideration of Board and Board
Committee composition and succession
—the exit of non-core businesses
—the ongoing program of work to reset the bank’s
cost base.
Board diversity
A diverse group of skilled Directors make us a stronger
organisation that makes better decisions.
As we have met our objective of 40% women,
40% men and 20% any gender for the composition of
the Board, our focus is on maintaining alignment with
this objective.
Independence
All nine of Westpac’s Non-executive Directors are
considered independent, having satisfied our criteria for
independence which aligns with the guidance in the ASX
Corporate Governance Principles and Recommendations.
The Chairman and the Chairs of all Board Committees are
independent Non-executive Directors.
Board tenure
The average Board tenure is 3.4 years, with Directors’
individual length of service in Section 1 of the
Directors’ report.
The Westpac Board Renewal Policy limits the tenure of
Non-executive Directors, other than the Chairman, to
nine years, from the date first elected. The maximum
tenure for the Chairman is 12 years (including any term
served previously as a Director) from the date first
elected. The Board (on an exceptional basis) may extend
the maximum terms where it would benefit the Group,
with any such Director required to stand for re-election
annually.
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Westpac’s Directors bring a broad range of financial and other skills, knowledge and experience necessary to
guide the Group. The Board uses a skills matrix to illustrate the key skills and experience it seeks to achieve along
with the number of Directors with each skill and experience. The skills matrix also assists in identifying focus
areas for the continuing education and professional development of Directors. For example, in FY22, these focus
areas included digitisation, decentralised finance, automation, privacy risk and climate change (amongst others).
The skills matrix also assists in identifying areas where it may be desirable for specialist external expertise to be
retained to supplement the Board’s skills and experience.
Our 2022 Corporate Governance Statement provides more detail on our corporate governance framework,
policies and practices – available at westpac.com.au/corpgov.
Figure 1 – Board skills, experience and attributes as at 30 September 2022
SKILLS AND EXPERIENCEDESCRIPTIONNUMBER OF DIRECTORS
Customer
focus
Experience in developing and overseeing the embedding
of a strong customer-focused culture in large and complex
organisations, and a demonstrable commitment to achieving
customer outcomes.
Strategy
An ability to define strategic objectives, constructively question
business plans, oversee the implementation of strategy using
commercial judgement and bring a global perspective to bear.
Financial
services
Experience working in, or advising, the banking and financial
services industry with strong knowledge of its economic drivers
and global business perspectives.
Financial
acumen
Highly proficient in accounting or related financial management
and reporting for businesses of significant size.
Risk
Experience in anticipating, recognising and managing risks,
including financial, non-financial and emerging risks, and
monitoring risk management frameworks and controls.
Technology,
digital and
data
Experience in developing or overseeing the application of
technology in large and complex businesses, with particular
reference to technology-innovation, disruptive technologies, data,
cyber-security, digital transformation and customer experience.
Governance
Experience as a Director of a listed entity, with detailed knowledge
of governance issues, with particular reference to the legal,
compliance, regulatory and voluntary frameworks applicable
to listed entities and highly regulated industries.
Environment
and social
Experience in understanding and identifying potential risks
and opportunities arising from environmental and social issues,
including the transition to a climate resilient future, management
of biodiversity, and addressing human rights and modern slavery
within supply chains.
People and
culture
Experience in people matters including workplace health and
safety, cultures, morale, inclusion and diversity, management
development, succession, remuneration and talent retention
initiatives
Executive
leadership
Having held a CEO or a similar senior leadership role in a large
complex organisation, and having experience in that position in
managing the business through periods of significant change and
delivering desired business outcomes.
Expert General working experience and knowledge Limited working experience and knowledge
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WESTPAC GROUP 2022 ANNUAL REPORT 56

MA, MBA
Age: 75
CHAIRMAN AND INDEPENDENT
NON-EXECUTIVE DIRECTOR
Appointed: Director since February
2020 and Chairman since April 2020.
Board Committees: Chairman of the
Board Nominations & Governance
Committee.
Experience: John is a senior figure in
global banking and financial services
and has 48 years of experience in the
sector. He was formerly Chairman of
Barclays plc, Aviva plc and FirstGroup
plc, and Chairman of The City UK. He
was also a Non-executive Director
of Westfield Group/Westfield
Corporation, The Royal Bank of
Scotland Group, Capital Radio plc and
was a council member of The London
Stock Exchange.
John served as Chief Executive
Officer of Australia and New Zealand
Banking Group Limited from 1997
to 2007, and as Group Executive
Director at Standard Chartered. He
also held senior positions at Citicorp
including as Managing Director of
Citicorp Investment Bank Ltd and
Head of Citicorp and Citibank in the
UK and Ireland. He began his career
at Ford Motor Co.
Directorships of listed entities
over the past three years: Unibail-
Rodamco-Westfield SE (since
June 2018).
Other principal directorships
and interests: Director of Old Oak
Holdings Ltd
Board Committees:

Board of Directors
Directors’
report
Our Directors present their
report together with the financial
statements of the Group for
the financial year ended
30 September 2022.
Directors
The names of the persons who have been Directors,
or appointed as Directors, during the period since 1
October 2021 and up to the date of this report are:
John McFarlane, Peter King, Nerida Caesar, Craig Dunn
(appointed as a Director on 1 June 2015 and retired as
a Director on 15 December 2021), Audette Exel AO,
Steven Harker (appointed as a Director on 1 March
2019 and retired as a Director on 26 October 2021),
Michael Hawker AM, Christopher Lynch, Peter Marriott,
Peter Nash, Nora Scheinkestel and Margaret Seale.
Particulars of the skills, experience, expertise and
responsibilities of the Directors at the date of this
report, including all directorships of other listed
companies held by a Director at any time in the
three years immediately before 30 September 2022,
and the period for which each directorship has
been held, are set out in the following pages.
Board Committee Member Key
Chairman of each committee is noted with a red icon.
Board Nominations & Governance
Board Risk
Board Remuneration
Board Audit
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BEc, FCA.
Age: 52
MANAGING DIRECTOR AND CHIEF
EXECUTIVE OFFICER
Appointed: Director since
December 2019.
Board Committees: Nil.
Experience: Peter was appointed
Westpac Group Chief Executive
Officer in April 2020. Peter previously
held this role on an acting basis
between December 2019 and March
2020. Since joining the Westpac
Group in 1994, Peter also held senior
finance roles including Chief Financial
Officer with responsibility for
Westpac’s Finance, Tax, Treasury and
Investor Relations functions. He has
worked in senior finance roles across
the Group including in Group Finance,
Business and Consumer Banking,
Business and Technology Services,
Treasury and Financial Markets. Peter
commenced his career at Deloitte
Touche Tohmatsu. He has a Bachelor
of Economics from Sydney University
and completed the Advanced
Management Programme at INSEAD.
He is currently Chairman of the
Australian Banking Association (ABA)
and also a Fellow of the Institute of
Chartered Accountants.
Directorships of listed entities over
the past three years: Nil.
Other principal directorships and
interests: Chairman and Director of
the Australian Banking Association
Incorporated, Director of the Institute
of International Finance and Director
of Financial Markets Foundation for
Children.
Board Committees:
Nil.
Nerida Caesar
BCom, MBA, GAICD
Age: 58
INDEPENDENT NON-EXECUTIVE
DIRECTOR
Appointed: Director since
September 2017.
Board Committees: Nil.
Experience: Nerida has over 34 years
of broad ranging commercial and
business management experience,
with particular depth in technology
led businesses. Nerida was Group
Managing Director and Chief
Executive Officer, Australia and New
Zealand, of Equifax (formerly the
ASX-listed Veda Group Limited) and
was also a former director of Genome.
One Pty Ltd and Stone and Chalk
Limited. Before joining Equifax, Nerida
held several senior management roles
at Telstra, including Group Managing
Director, Enterprise and Government
and Group Managing Director,
Wholesale. Nerida also held several
Executive and senior management
positions with IBM within Australia
and internationally, including as Vice
President of IBM’s Intel Server Division
for the Asia Pacific region.
Directorships of listed entities over
the past three years: Nil.
Other principal directorships and
interests: Chairman of Workplace
Giving Australia Limited, Co-Chairman
of G2GWGA Pty Ltd, Director of NBN
Co Ltd and Director of CreditorWatch.
Advisor to startups in the technology
sector.
Board Committees:
Nil.
Audette Exel AO
BA, LLB (Hons)
Age: 59
INDEPENDENT NON-EXECUTIVE
DIRECTOR
Appointed: Director since
September 2021.
Board Committees: Member of the
Board Risk Committee.
Experience: Audette has more than
35 years’ experience in the global
financial services markets as a
senior executive, a non-executive
director and as a social entrepreneur.
Audette was formerly the Managing
Director of BSX-listed Bermuda
Commercial Bank (1993-1996), Chair
of the Bermuda Stock Exchange
(1995-1996) and a Director and
Chair of the Investment Committee
of the Bermuda Monetary Authority
(1999-2005). She was a Director and
Chair of the Investment Committee
of Steamship Mutual (1999-2017).
She began her career as a lawyer
specialising in international finance.
Audette is the founder and Chair of
the Adara Group, a pioneering social
enterprise which exists to support
people living in extreme poverty and
is the Chief Executive Officer of its
corporate advice businesses. She is
the recipient of numerous awards,
including an honorary Order of
Australia for service to humanity.
Directorships of listed entities over
the past three years: Suncorp Group
Limited (June 2012 to September
2020).
Other principal directorships
and interests: Founder and Chair
of Adara Development Australia,
Adara Development USA, Adara
Development Bermuda, Adara
Development UK and Adara
Development Uganda. CEO
and Director of Adara Advisors
Pty Limited and Adara Partners
(Australia) Pty Limited.
Board Committees:
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WESTPAC GROUP 2022 ANNUAL REPORT 58

BSc, FAICD, SF Fin, FAIM, FIoD
Age: 63
INDEPENDENT NON-EXECUTIVE
DIRECTOR
Appointed: Director since December
2020.
Board Committees: Member of the
Board Risk Committee.
Experience: Michael has substantial
experience, with over 35 years
in the financial services industry,
including as Chief Executive Officer
and Managing Director of Insurance
Australia Group from 2001 to 2008.
Prior to this, he held senior positions
at Westpac, and with Citibank in
Australia and Europe. Michael was a
Director of Macquarie Bank Limited
and Macquarie Group Limited, and a
Director of Aviva plc. Michael was also
President of the Insurance Council of
Australia, Chairman of the Australian
Financial Markets Association,
a Board member of the Geneva
Association and a member of the
Financial Sector Advisory Council.
Directorships of listed entities over
the past three years: Washington
H. Soul Pattinson and Company Ltd
(since October 2012) and Macquarie
Group Limited (March 2010 to
September 2020).
Other principal directorships and
interests: Director of BUPA Global
Board UK, Deputy Chair of BUPA ANZ
Group, Director of Allianz Australia
Group and a Non-executive Director
of the Museum of Contemporary
Art Australia.
Board Committees:
Peter Marriott
BEc (Hons.), FCA
Age: 65
INDEPENDENT NON-EXECUTIVE
DIRECTOR
Appointed: Director since June 2013.
Board Committees: Chairman of the
Board Risk Committee. Member of
the Board Audit Committee.
Experience: Peter has over 40 years’
experience in senior management
roles in the finance industry,
encompassing international banking,
finance and auditing. He joined
Australia and New Zealand Banking
Group Limited (ANZ) in 1993 and
was Chief Financial Officer from July
1997 to May 2012. Prior to his career
at ANZ, Peter was a banking and
finance, audit and consulting partner
at KPMG Peat Marwick. Peter was
formerly a Director of ANZ National
Bank Limited in New Zealand and
various ANZ subsidiaries.
Directorships of listed entities over
the past three years: ASX Limited
(since July 2009).
Other principal directorships and
interests: Director of ASX Clearing
Corporation Limited, ASX Settlement
Corporation Limited and Austraclear
Limited. Member of Monash
University Council and Chairman
of the Monash University Council’s
Resources and Finance Committee.
Board Committees:

Chris Lynch
BCom, MBA, FCPA
Age: 69
INDEPENDENT NON-EXECUTIVE
DIRECTOR
Appointed: Director since September
2020.
Board Committees: Member of the
Board Audit and Board Remuneration
Committees.
Experience: Chris has significant
experience in mineral resources and
infrastructure, having spent over
30 years working in these fields
globally. Chris was formerly the
Global Chief Financial Officer of Rio
Tinto Group, based in London, and
an Executive Director. Prior to this,
he was a Non-executive Director of
Rio Tinto Group. Chris was the Chief
Executive Officer of Transurban
Group, an international toll road
developer and manager with interests
in Australia and North America from
2008 to 2012. His executive career
also included seven years at BHP
Billiton where he was Chief Financial
Officer and then Executive Director
and Group President – Carbon Steel
Materials. Chris spent 20 years with
Alcoa Inc. where he held a number
of executive positions, including
Vice-President and Chief Information
Officer based in Pittsburgh, USA
and Chief Financial Officer of Alcoa
Europe in Switzerland. He was also
managing director of KAAL Australia
Limited, a joint venture company
formed by Alcoa and Kobe Steel.
Chris was formerly a Commissioner of
the Australian Football League from
2008 until 2014.
Directorships of listed entities over
the past three years: Nil.
Other principal directorships and
interests: Director of Business for
Millennium Development Ltd.
Board Committees:

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WESTPAC GROUP
2022 ANNUAL REPORT
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BCom, FCA, F Fin
Age: 60
INDEPENDENT NON-EXECUTIVE
DIRECTOR
Appointed: Director since March
2018.
Board Committees: Chairman
of the Board Audit Committee.
Member of the Board Risk and
Board Nominations & Governance
Committees.
Experience: Peter was formerly a
Senior Partner with KPMG, having
been admitted to the Australian
partnership in 1993. He served as the
National Chairman of KPMG Australia
and served on KPMG’s Global and
Regional Boards. His previous
positions with KPMG included
Regional Head of Audit for Asia
Pacific, National Managing Partner
for Audit in Australia and head of
KPMG Financial Services. Peter has
worked in geographically diverse and
complex operating environments
providing advice on a range of
topics including business strategy,
risk management, internal controls,
business processes and regulatory
change. He has also provided financial
and commercial advice to many State
and Federal Government businesses.
Peter is a former member of the
Business Council of Australia and its
Economic and Regulatory Committee.
Directorships of listed entities over
the past three years: Johns Lyng
Group Limited (Chairman since
October 2017), Mirvac Group (since
November 2018) and ASX Limited
(since June 2019).
Other principal directorships and
interests: Director of the General
Sir John Monash Foundation. Board
member of the Koorie Heritage Trust.
Board Committees:

Margaret (Margie) Seale
BA, FAICD
Age: 62
INDEPENDENT NON-EXECUTIVE
DIRECTOR
Appointed: Director since
March 2019.
Board Committees: Member of the
Board Risk, Board Remuneration and
Board Nominations & Governance
Committees.
Experience: Margie has more than
25 years’ experience in senior
executive roles in Australia and
overseas, including in consumer
goods, global publishing, sales
and marketing, and the successful
transition of traditional business
models to digital environments.
Prior to her non-executive career,
Margie was the Managing Director
of Random House Australia and
New Zealand and President, Asia
Development for Random House
Inc. Margie was a Director and then
Chair of Penguin Random House
Australia Pty Limited, and a Director
of Ramsay Health Care Limited,
Bank of Queensland Limited and the
Australian Publishers’ Association.
She also served on the Boards of
Chief Executive Women (chairing
its Scholarship Committee), the
Powerhouse Museum, and the
Sydney Writers Festival.
Directorships of listed entities over
the past three years: Scentre Group
Limited (since February 2016) and
Telstra Corporation Limited (May 2012
to October 2021).
Other principal directorships and
interests: Director of Westpac
Scholars Limited.
Board Committees:

Nora Scheinkestel
LLB (Hons), PhD, FAICD
Age: 62
INDEPENDENT NON-EXECUTIVE
DIRECTOR
Appointed: Director since
March 2021.
Board Committees: Chair of the
Board Remuneration Committee.
Member of the Board Risk Committee.
Experience: Nora is an experienced
company director with a background
as a senior banking executive in
international and project financing.
Nora has served as Chairman and
Director in a range of companies
across various industry sectors and
in the public, private and government
arena. Previously, Nora was a director
of a number of other major ASX
listed companies, was formerly a
member of the Takeovers Panel
and was an Associate Professor in
the Melbourne Business School at
Melbourne University. In 2003, Nora
was awarded a centenary medal
for services to Australian society in
business leadership.
Directorships of listed entities over
the past three years: Brambles
Limited (since June 2020), Origin
Energy Limited (since March 2022),
Telstra Corporation Limited (August
2010 to October 2022), AusNet
Services Ltd (November 2016 to
February 2022), Atlas Arteria Limited
(August 2014 to November 2020),
Atlas Arteria International Limited
(April 2015 to November 2020) and
OceanaGold Corporation (April 2018
to December 2019).
Other principal directorships and
interests: Nil.
Board Committees:

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WESTPAC GROUP 2022 ANNUAL REPORT 60

Shannon Finch
BA (Hons), LLB (Hons)
Age: 52
GROUP GENERAL COUNSEL
Shannon joined Westpac
in November 2021 and
leads Westpac’s legal
function globally.
Shannon has nearly
30 years legal experience
including with the
Commonwealth Attorney
General’s Department
Corporations Law
Simplification Unit,
Mallesons Stephen Jaques
(now King & Wood
Mallesons) in Canberra,
London and Sydney,
including as head of
the Sydney office, and
as a senior partner of
global corporate law firm
Jones Day. Shannon is a
member of the Business
Law Executive of the Law
Council of Australia, and
the Advisory Committee to
the Australian Law Reform
Commission’s Review of the
Legislative Framework for
Corporations and Financial
Services Regulation.
Shannon has experience as
a Non-executive Director,
is a member of the AICD
and Chief Executive
Women, and is a Fellow of
the Governance Institute
of Australia.
Shannon has a Bachelor of
Arts (Hons) and Bachelor
of Laws (Hons) from
the Australian National
University.
Peter King
BEc, FCA.
Age: 52
MANAGING DIRECTOR AND
CHIEF EXECUTIVE OFFICER,
WESTPAC GROUP
Peter was appointed
Westpac Group Chief
Executive Officer in April
2020, after holding the role
on an acting basis between
December 2019 and March
2020.
Since joining Westpac in
1994, Peter has held senior
finance roles including
Chief Financial Officer with
responsibility for Westpac’s
Finance, Group Audit,
Tax, Treasury and Investor
Relations functions. He has
worked in senior finance
roles across the Group
including in Group Finance,
Business and Consumer
Banking, Business and
Technology Services,
Treasury and Financial
Markets.
Peter commenced his
career at Deloitte Touche
Tohmatsu. He has a
Bachelor of Economics
from Sydney University and
completed the Advanced
Management Programme
at INSEAD. Peter is
currently the Chairman
of the Australian Banking
Association (ABA) and he is
also a Fellow of the Institute
of Chartered Accountants.
Scott Collary
BA, Humanities
Age: 58
GROUP EXECUTIVE,
CUSTOMER SERVICES &
TECHNOLOGY
Scott Collary joined
Westpac in November 2020
as Chief Operating Officer;
he became Group Executive
Customer Services &
Technology in March 2022
and leads our customer
solutions, financial crime
and fraud prevention,
operations and technology
functions.
Scott has over 30 years’
global banking experience,
with a breadth of expertise
across technology,
operations, risk mitigation
and commercial functions.
Before joining Westpac,
Scott was Chief Information
and Operations Officer for
North America Consumer
Businesses at Bank of
Montreal, Canada. Prior
to that, Scott held senior
executive positions at a
number of multinational
financial institutions
including ANZ, Citibank,
Fifth Third Bank and Bank
of America.
Scott holds a Bachelor’s
Degree from the University
of Maryland in the United
States.
Chris de Bruin
MBA, BSc (Hons)
Age: 58
CHIEF EXECUTIVE,
CONSUMER & BUSINESS
BANKING
Chris de Bruin joined
Westpac Group as Chief
Executive, Consumer, in
February 2021 and became
Chief Executive, Consumer
& Business Banking in
March 2021.
With nearly 25 years in
the financial services
sector globally, Chris’
experience spans retail
banking, consumer product
portfolios, fintech and
digital banking.
He spent 13 years at
Standard Chartered Bank,
where he held a variety
of roles across Asia and
the Middle East, including
as Global Head of Retail
Products and Digital
Banking.
Before joining Westpac,
Chris was Chief Executive
Officer of Deem Finance,
one of the largest non-
bank financial institutions
in the Middle East. Prior to
that, Chris was President
of Canadian fintech Zafin
and had been an Associate
Principal at McKinsey &
Company.
Chris was educated in
South Africa and holds an
MBA from the University of
Cape Town, and a Bachelor
of Science (Honours) from
Stellenbosch University.
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LLB (Hons), BA
Age: 52
CHIEF EXECUTIVE,
WESTPAC INSTITUTIONAL
BANK
Anthony joined Westpac
Group as Chief Executive,
Westpac Institutional Bank
in October 2020. He has
responsibility for Westpac’s
global relationships with
corporate, institutional
and government clients,
as well as all products
across financial and capital
markets, transactional
banking, structured finance
and working capital
payments. In addition,
Anthony has responsibility
for Westpac’s offices
and branches in Asia,
Europe and New York and
Westpac’s branch in New
Zealand. Before joining
Westpac Group, Anthony
was CEO of Australia and
New Zealand and Co-Head
of Investment Bank, Asia
Pacific at Deutsche Bank
from 2017. Prior to Deutsche
Bank, Anthony was a
partner at Goldman Sachs
based in Hong Kong within
the investment banking
division and previously
held a number of roles at
Goldman Sachs in Australia
and New Zealand having
joined the organisation
in 2001. Before joining
Goldman Sachs, Anthony
worked at Credit Suisse.
Anthony holds a Bachelor
of Law (Honours) from
Queensland University
of Technology, and
Bachelor of Arts (Japanese
Language, Modern Asian
Studies) from Griffith
University.
Yianna Papanikolaou
BSc(Hons), MBA
Age: 45
CHIEF TRANSFORMATION
OFFICER
Yianna Papanikolaou
joined Westpac Group as
General Manager, Group
Transformation in February
2022 and became Chief
Transformation Officer
in May 2022. She is
responsible for leading the
Group’s Transformation
efforts to become a
simpler, stronger bank,
and accountable for the
Customer Outcomes and
Risk Excellence (CORE)
Program, and the Chief
Control Office.
Yianna has over 20 years
of experience in the
financial services industry,
and has held executive
roles and led large-scale
transformations for major
organisations across the
globe. Before joining
Westpac, she spent seven
years at Deutsche Bank in
the United Kingdom where
she held several leadership
positions, including
Managing Director, Chief
Transformation Office.
Prior to this, she was at
Royal Bank of Scotland,
as Head of Strategy and
Transformation for the
Corporate Bank. She began
her career in strategy and
technology consulting.
Yianna holds a Bachelor’s
degree in Computer
Science and Mathematics
from Clark University and
an MBA from The University
of Manchester.
Carolyn McCann
BBus (Com), BA,
GradDipAppFin, GAICD
Age: 50
GROUP EXECUTIVE,
CORPORATE SERVICES
Carolyn was appointed as
Westpac’s Group Executive,
Corporate Services in March
2022, and is responsible
for functions that partner
with the business to
deliver common services
including Property,
Procurement, Protective
Services, HR Services,
Finance Services, Corporate
Reporting & Analytics,
Sustainability, Corporate
Affairs & Community and
Transformation. Prior
to this role Carolyn was
Group Executive, Customer
and Corporate Relations.
Carolyn has more than
25 years’ experience in
financial services.
Carolyn joined Westpac in
2013, as General Manager,
Corporate Affairs and
Sustainability. Prior to
joining Westpac, Carolyn
spent 13 years at Insurance
Australia Group in various
positions, including Group
General Manager, Corporate
Affairs and Investor
Relations. She began her
career in consulting and
has extensive in-house and
consulting experience in
financial services. Carolyn
has a Bachelor of Arts
from The University of
Queensland, a Bachelor of
Business from Queensland
University of Technology,
and a Graduate Diploma
of Applied Finance and
Investment from the
Securities Institute of
Australia. She has also
completed Cambridge
University’s Sustainability
Business Management
course.
Catherine McGrath
LLB/BCom
Age: 51
CHIEF EXECUTIVE OFFICER
WESTPAC NEW ZEALAND
Catherine was appointed
Chief Executive Officer of
Westpac New Zealand in
November 2021.
She has more than 25 years’
experience working in
financial services, spanning
business, operational
and people leadership
roles to which she has
driven significant people,
structural, technology and
strategic change.
Prior to joining Westpac,
Catherine led large-scale
transformations at some
of the world’s best known
banks including Barclays
Group and Lloyds TSB
in the UK. This included
various positions such
as Head of Channels,
Managing Director of
Transaction Products and
Payments, and Transaction
Banking Director. Earlier
in her career she worked
at BNZ, ASB and the
Prudential Group.
Catherine was raised in New
Zealand. She graduated
from Canterbury University
with a Bachelor of Law and
a Bachelor of Commerce.
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WESTPAC GROUP 2022 ANNUAL REPORT 62

CFA, FICB
Age: 60
CHIEF RISK OFFICER
Ryan was appointed Chief
Risk Officer in April 2022.
Ryan is responsible for
risk management across
the Group, which includes
credit risk, operational risk,
financial crime, compliance
and conduct.
Ryan has over 30 years’
experience in financial
services specialising in
risk management. Prior to
joining Westpac Group,
Ryan was at Fannie Mae as
Executive Vice President
and Chief Risk Officer
overseeing the company’s
governance and strategy for
global risk management.
Prior to Fannie Mae Ryan
held senior positions at
GE Capital, Wells Fargo &
Company and Deutsche
Bank. Ryan has also been
on the Board of Fannie Mae
and General Electric Capital
Corporation. A Canadian,
Ryan began his career
at the Bank of Montreal
in Credit Services before
taking on various roles
across Citibank Canada and
Bankers Trust Company.
Ryan is a Chartered
Financial Analyst and a
Fellow of the Institute of
Canadian Bankers.
Christine Parker
BGDipBus (HRM)
Age: 62
GROUP EXECUTIVE,
HUMAN RESOURCES
Christine was appointed to
Westpac Group’s Executive
Team in October 2011.
Christine holds leadership
responsibility for the Human
Resources function across
the Westpac Group. She is
responsible for the Westpac
Group’s human resources
strategy and management,
including reward and
recognition, safety, learning
and development, careers
and talent, employee
relations and employment
policy.
Christine is also responsible
for the office of the Banking
Executive Accountability
Regime (BEAR) and
supports the CEO and
Board on culture and
conduct. Since joining
Westpac in 2007, Christine
has held a variety of senior
leadership roles including
Group General Manager,
Human Resources and
General Manager, Human
Resources for Westpac
New Zealand Limited.
Before joining Westpac,
Christine held senior HR
roles in a number of high-
profile organisations and
across a range of industries,
including Carter Holt
Harvey and Restaurant
Brands New Zealand.
Christine is currently
Chair of the St.George
Foundation, a member of
Chief Executive Women and
was previously a Director of
Orygen Youth Mental Health
Foundation, Women’s
Community Shelters and
member of the Veterans’
Employment Industry
Advisory Committee.
Michael Rowland
B.Comm, FCA
Age: 61
CHIEF FINANCIAL OFFICER
Michael joined Westpac
Group as Chief Financial
Officer in September
2020. He is responsible for
Westpac’s Finance, Group
Audit, Investor Relations,
Tax and Treasury functions.
Before joining Westpac,
Michael was a Partner in
Management Consulting at
KPMG. Before that he held a
number of senior executive
positions at ANZ from 1999
to 2013. This included CFO
Institutional Banking, CFO
Wealth, CFO New Zealand,
CFO Personal Financial
Services, and business
leadership roles as CEO
Pacific, Managing Director
Mortgages and General
Manager, Transformation.
Michael commenced his
career at KPMG, where he
was promoted to become
a Tax Partner in 1993.
Michael holds a Bachelor
of Commerce, from the
University of Melbourne
and a Graduate Diploma of
Taxation Law from Monash
University. He is a Fellow of
the Institute of Chartered
Accountants in Australia
and New Zealand.
Jason Yetton
B.Comm (Finance & Mktg),
GradDipAppFin
Age: 51
CHIEF EXECUTIVE,
SPECIALIST BUSINESSES
Jason was appointed
Chief Executive, Specialist
Businesses in May 2020.
He is responsible for
Westpac’s Banking as a
Service, Corporate and
Business Development
and the Strategic Reviews
and potential divestments
of the Group’s Specialist
Businesses.
Before joining Westpac
Group, Jason was Chief
Executive Officer NewCo,
CBA, where he was
appointed to lead the
demerger of its wealth
management and mortgage
broking businesses. Prior to
that, he was Chief Executive
Officer and Managing
Director, SocietyOne, an
early financial services
disrupter and consumer
finance marketplace lender.
Jason was previously
with the Westpac Group
for more than 20 years,
holding a number of senior
positions including Group
Executive, Westpac Retail
and Business Banking, and
a range of senior executive
positions in BT Financial
Group.
Jason holds a Bachelor
of Commerce (Marketing
and Finance) from the
University of New South
Wales and a Graduate
Diploma in Applied Finance
and Investment from the
Securities Institute of
Australia.
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LLB (Hons.)
Age: 47
COMPANY SECRETARY
Tim was appointed
Company Secretary in
November 2011. Before that
appointment, Tim was Head
of Legal – Risk Management
& Workouts, Counsel &
Secretariat and prior to that,
he was Counsel, Corporate
Core.
Before joining Westpac in
2006, Tim was a Consultant
with Gilbert + Tobin, where
he provided corporate
advisory services to ASX-
listed companies. Tim was
previously a lawyer at
Henderson Boyd Jackson
W.S. in Scotland and in
London in Herbert Smith’s
corporate and corporate
finance division.
Executive Team
As at 30 September 2022 our Executive Team was:
NAMEPOSITION
YEAR
JOINED
GROUP
YEAR
APPOINTED
TO POSITION
Peter King
Managing Director &
Chief Executive Officer
19942020
Scott Collary
Chief Executive,
Customer Service & Technology
20202022
Chris de Bruin
Chief Executive,
Consumer & Business Banking
20212021
Shannon Finch
Group General Counsel20212021
Carolyn McCann
Group Executive, Corporate Services20132022
Catherine McGrath
Chief Executive Officer,
Westpac New Zealand
20212021
Anthony Miller
Chief Executive,
Westpac Institutional Bank
20202020
Yianna
Papanikolaou
Chief Transformation Officer20222022
Christine Parker
Group Executive, Human Resources20072011
Michael Rowland
Chief Financial Officer20202020
Jason Yetton
Chief Executive, Specialist Businesses 20202020
Ryan Zanin
Chief Risk Officer20222022
There are no family relationships between or among any of our Directors or Executive Team.
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WESTPAC GROUP 2022 ANNUAL REPORT 64
Directors’ report
Directors’ report
3. Operating and financial review
a) Principal activities
The principal activities of the Group during the
financial year ended 30 September 2022 were the
provision of financial services including lending, deposit
taking, payments services, investment platforms,
superannuation and funds management, insurance
services, leasing finance, general finance, interest rate
risk management and foreign exchange services.
During the period Westpac sold its Australian and
New Zealand life insurance businesses and its auto
finance and novated leasing businesses. The Group
ceased to provide these services once the transactions
completed. Other than these changes, there have been
no significant changes in the nature of the principal
activities of the Group during 2022.
b) Operations and financial performance
Net profit attributable to owners of Westpac Banking
Corporation for 2022 was $5,694 million, an increase of
$236 million or 4% compared to 2021. Basic earnings
per share increased 7% as net profit after tax increased
and the average share count reduced 3% following the
$3.5 billion share buy-back.
The increase in net profit was predominantly due
to reduction in expenses, partly offset by lower
non-interest income mainly from the loss on sale of
Australian life insurance and higher credit impairment
charges. Over recent years, Westpac has incurred
certain items that have been called “notable items”.
The net after tax reduction in net profit for these items
was $1,292 million in 2022 compared to $1,601 million in
2021, $309 million lower and these include:
• Provisions for estimated customer refunds,
payments, associated costs and litigation;
• The write-down of assets and expenses from
reducing our corporate and branch footprint; and
• The impact of asset sales and revaluations.
The following is a summary of the movements in major
line items in net profit for 2022 compared to 2021.
Net interest income increased by $303 million or 2%
over 2022 with increased lending and deposits partly
offset by a 13 basis point reduction in net interest
margin. Average interest earning assets increased 8%,
while spot lending increased 4% with growth in owner-
occupied mortgages, small business, and institutional
lending. Customer deposits increased 6% over the year,
more than fully funding loan growth contributing to an
increase in the customer deposit to loan ratio to 82.9%.
All the decline in net interest margin was in the first
half of the year from the impact of low interest rates
and lending competition. While competition continued
through the year, rising interest rates assisted in
restoring margins in the second half of the year from
improved returns on capital and low-rate deposits and
increased deposit spreads.
Through the year, the decrease in net interest margin
was due to:
• Lower spreads on mortgages and business lending
reflecting intense competition; and
• Margin dilution from $48 billion increase in average
liquid assets to meet the need for additional high
quality liquid assets following the scheduled
reduction of the Reserve Bank of Australia’s
committed liquidity facility (CLF). Funding and
holding liquid assets are more expensive than the
cost of the CLF; partly offset by
• Increased deposit spreads which contributed
21 basis points to net interest margin; and
• Increase of $443 million on unrealised gains on
fair value movements of non-hedge accounted
economic hedges in 2022.
Non-interest income was $1,919 million lower compared
to 2021. The decrease was predominantly due to:
• Lower other income reflecting the net loss on
disposal of non-core businesses in 2022 mainly
driven by the loss on the sale of our Australian life
insurance business of $1,112 million. There was a net
gain in 2021 of $188 million from non-core asset
sales;
• Lower contribution from NZ life insurance and
Australian life insurance businesses of $287 million
following their sales in 2022 and the impact of
unfavourable valuations; and
• Lower general and lenders mortgage insurance
income by $185 million as these businesses were
sold in 2021; partly offset by
• Lower remediation costs which were offset against
revenue of $256 million.
Operating expenses were $2,509 million or 19% lower
compared to 2021. The decrease was mainly due to:
• Lower asset write-downs of $1,023 million;
• A reduction in depreciation and amortisation of
assets of $450 million following write-downs in
2021;
• Reduced use of third-party services;
• Lower staff expenses of $168 million from lower
FTE, partly offset by increased superannuation and
higher restructuring costs;
• Lower separation costs associated with the sale of
businesses; and
• Lower remediation costs of $296 million.
Credit impairment charges were $335 million in 2022,
compared to a credit impairment benefit of $590
million in 2021. The charge in 2022 represented 5 basis
points of gross loans and is still well below long-term
historical averages. The charge in 2022 reflected:
• Impact of higher inflation, interest rates rising and
expectation of slowing economic activity; partly
offset by
• Impact of further improvement in credit quality
metrics through the year including a reduction in
stressed exposures.

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SHAREHOLDER INFORMATION
Directors’ report
The effective tax rate was 32.7% in 2022 and was
above the corporate tax rate of 30% due to some non-
deductible expenses including the loss on the sale of
our Australian life insurance business. The effective tax
rate was also high in 2021 due to non-deductible items
including goodwill write-downs.
A review of the operations of the Group and its
segments and their results for the financial year ended
30 September 2022 is set out in Section 2 of the
Annual Report under the sections ‘Review of Group
operations’ (see pages 106 to 115) and ‘Segment
reporting’ (see pages 116 to 133), which form part of
this report. Further information about our financial
position and financial results is included in the financial
statements in Section 3 of this Annual Report (see
pages 159 to 295), which form part of this report.
c) Dividends
Westpac has announced a final ordinary dividend
of 64 cents per Westpac ordinary share, totalling
approximately $2,241 million for the year ended
30 September 2022. The dividend will be fully franked
and will be paid on 20 December 2022.
An interim ordinary dividend for the current financial year
of 61 cents per Westpac ordinary share for the half year
ended 31 March 2022 totaling $2,136 million was paid as
a fully franked dividend on 24 June 2022. 58 cents per
Westpac ordinary share totalling to $2,127 million was
paid as interim ordinary dividend in 2021.
Further, in respect of the year ended 30 September 2021,
a fully franked final dividend of 60 cents per
ordinary share totalling $2,201 million was paid on
21 December 2021.
d) Significant changes in state of affairs and events
during and since the end of the 2022 financial
year
Significant changes in the state of affairs of the Group
during the financial year ended 30 September 2022
were:
• completing a $3.5 billion off-market share
buy-back on 14 February 2022, with approximately
167.5 million Westpac shares, equating to
approximately 4.6% of the shares on issue at that
time, being bought back at the buy-back price of
$20.90 per Westpac share
• making changes to the Group’s structure and
executive team as part of initiatives to simplify the
Group’s operations and improve accountability as
outlined in the Remuneration Report (see pages
74 to 94)
• ongoing implementation of the CORE Program,
which is delivering the Integrated Plan required
by the 2020 enforceable undertaking with APRA
in relation to our risk governance remediation,
and supporting the strengthening of our risk
governance, accountability and culture
• seeking to operate with a CET1 Capital Ratio of
between 11.0% and 11.5% (operating capital range)
in normal operating conditions as measured under
APRA’s new capital framework from 1 January 2023
• APRA announced on 1 September 2022 that it had
removed the 10% add-on applied to the net cash
outflows included in the calculation of our Liquidity
Coverage Ratio
• following a review in 2020, the continued
simplification of our business and operations:
–completing the sale of: Westpac’s auto finance
and novated leasing business; Westpac Life-NZ-
Limited and Westpac Life Insurance Services
Limited; and
–announcing the following transactions, which
have not yet completed: transfer of the
members and benefits of BT Funds Management
Limited’s personal and corporate (non-platform)
superannuation products via a successor fund
transfer to Mercer Super Trust; and sale of
Westpac’s Advance Asset Management business
to Mercer (Australia) Pty Ltd.
For a discussion of these changes and other
significant developments, please refer to ‘Significant
developments’ in Section 1 of the Annual Report, which
forms part of this report (see pages 97 to 101).
The Directors are not aware of any matter
or circumstance that has occurred since
30 September 2022 that has significantly affected or
may significantly affect the operations of the Group, the
results of these operations or the state of affairs of the
Group in subsequent financial years.
e) Business strategies, developments and expected
results
Our business strategies, prospects and likely major
developments in the Group’s operations in future
financial years and the expected results of those
operations are discussed in the Strategic Review (see
pages 2 to 55) and in ‘Significant developments’ in
Section 1 of the Annual Report (see pages 97 to 101),
which forms part of this report.
Further information on our business strategies and
prospects for the future financial years and likely
developments in our operations and the expected
results of operations have not been included in this
report because the Directors believe it would be likely
to result in unreasonable prejudice to us.
f) Risks to our financial performance, position and
our operations
Our financial position, our future financial results,
our operations and the success of our strategy are
subject to a range of risks. These risks are set out and
discussed in Section 2 of this Annual Report under the
section ‘Risk factors’, which forms part of this report
(see pages 134 to 145).

WESTPAC GROUP 2022 ANNUAL REPORT 66
Directors’ report
4. Directors’ interests
a) Directors’ interests in securities
The following particulars for each Director are set out in the Remuneration Report in Section 10 of the Directors’
report for the year ended 30 September 2022 and in the table below:
• their relevant interests in our shares or the shares of any of our related bodies corporate;
• their relevant interests in debentures of, or interests in, a registered scheme made available by us or any of our
related bodies corporate;
• their rights or options over shares in, debentures of, or interests in, any registered scheme made available by
us or any of our related bodies corporate; and
• any contracts:
– to which the Director is a party or under which they are entitled to a benefit; and
– that confer a right to call for or deliver shares in, debentures of, or interests in, a registered scheme made
available by us or any of our related bodies corporate.
Directors’ interests in Westpac and related bodies corporate as at 6 November 2022
Number of Relevant
Interests in Westpac
Ordinary Shares
Number of Westpac
Share Rights
Westpac Banking Corporation
Current Directors
John McFarlane45,000-
Peter King172,038
1
415,883
2
Nerida Caesar13,583
3
-
Audette Exel10,898-
Michael Hawker32,432-
Chris Lynch13,090
4
-
Peter Marriott22,110-
Peter Nash15,260-
Nora Scheinkestel9,709
Margaret Seale10,438
5
-
Former Directors
Craig Dunn15,009
6
-
Steven Harker 11,605
7
-
1. Peter King’s interest in Westpac ordinary shares includes 20,076 restricted shares held under the Restricted Share Plan.
2. Share rights issued under the Long Term Variable Reward Plan.
3. As at 30 September 2022, Nerida Caesar’s related parties also hold the following interests in registered schemes made available by
certain related bodies corporate of Westpac in their capacity as the responsible entity of the registered schemes (a) 211,487.9616 units
in PIMCO Wholesale Plus Global Bond Fund and (b) 72,135.84 units in Fidelity Wholesale Plus Australian Equities Fund.
4. Chris Lynch and his related bodies corporate also hold relevant interests in 1,137 Westpac Capital Notes 5 (ASX: WBCPH).
5. Margaret Seale and her related bodies corporate also hold relevant interests in 100 Westpac Capital Notes 7 (ASX: WBCPJ).
6. Figure displayed is as at Craig Dunn’s retirement date of 15 December 2021.
7. Figure displayed is as at Steven Harker’s retirement date of 26 October 2021.
Note: Certain subsidiaries of Westpac offer a range of registered schemes. The Directors from time to time invest in these schemes and are
required to provide a statement to the ASX when any of their interests in these schemes change. ASIC has exempted each Director from
the obligation to notify the ASX of a relevant interest in a security that is an interest in BT Cash Management Trust (ARSN 087 531 539),
BT Premium Cash Fund (ARSN 089 299 730), Westpac Cash Management Trust (ARSN 088 187 928) or Advance Cash Multi-Blend Fund
(ARSN 094 113 050).

WESTPAC GROUP
2022 ANNUAL REPORT
67
STRATEGIC REVIEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
Directors’ report
b) Indemnities and insurance
Under the Westpac Constitution, unless it is forbidden
or would be made void by statute, we indemnify any
person who is or has been a Director or Company
Secretary of Westpac and of each of our related
bodies corporate (except related bodies corporate
listed on a recognised stock exchange), any person
who is or has been an employee of Westpac or our
subsidiaries (except subsidiaries listed on a recognised
stock exchange), and any person who is or has been
acting as a responsible manager under the terms of
an Australian Financial Services Licence of any of
Westpac’s wholly-owned subsidiaries against every
liability (other than a liability for legal costs) incurred
by each such person in their capacity as director,
company secretary, employee or responsible manager,
as the case may be; and all legal costs incurred in
defending or resisting (or otherwise in connection
with) proceedings, whether civil or criminal or of an
administrative or investigatory nature, in which the
person becomes involved because of that capacity.
Each of the Directors named in this Directors’ report
and the Company Secretary of Westpac has the benefit
of this indemnity.
Consistent with shareholder approval at the
2000 Annual General Meeting, Westpac has entered
into a Deed of Access and Indemnity with each of the
Directors, which includes indemnification in identical
terms to that provided in the Westpac Constitution.
Westpac also executed a deed poll in September 2009
providing indemnification equivalent to that provided
under the Westpac Constitution to individuals who are
or have been acting as:
• statutory officers (other than as a director) of
Westpac;
• directors and other statutory officers of wholly-
owned subsidiaries of Westpac; and
• directors and statutory officers of other nominated
companies as approved by Westpac in accordance
with the terms of the deed poll and Westpac’s
Contractual Indemnity Policy.
Some employees of Westpac’s related bodies
corporate and responsible managers of Westpac and
its related bodies corporate are also currently covered
by a deed poll that was executed in November 2004,
which is on similar terms to the September 2009
deed poll.
The Westpac Constitution also permits us, to the
extent permitted by law, to pay or agree to pay
premiums for contracts insuring any person who is or
has been a Director or Company Secretary of Westpac
or any of its related bodies corporate against liability
incurred by that person in that capacity, including a
liability for legal costs, unless:
• we are forbidden by statute to pay or agree to pay
the premium; or
• the contract would, if we paid the premium, be
made void by statute.
Under the September 2009 deed poll, Westpac also
agrees to provide directors’ and officers’ liability
insurance to Directors of Westpac and Directors of
Westpac’s wholly-owned subsidiaries (except wholly-
owned subsidiaries listed on a recognised stock
exchange).
For the year ended 30 September 2022, the Group has
insurance cover which, in certain circumstances, will
provide reimbursement for amounts which we have to
pay under the indemnities set out above. That cover
is subject to the terms and conditions of the relevant
insurance, including but not limited to the limit of
indemnity provided by the insurance. The insurance
policies prohibit disclosure of the premium payable
and the nature of the liabilities covered.
c) Share rights outstanding
As at the date of this report there are 3,647,748 share
rights outstanding in relation to Westpac ordinary
shares, held by 93 holders. The latest dates for exercise
of the share rights range between 17 December 2024
and 1 January 2037.
Holders of outstanding share rights in relation to
Westpac ordinary shares do not have any rights under
the share rights to participate in any share issue or
interest of Westpac or any other body corporate.
d) Proceedings on behalf of Westpac
No application has been made and no proceedings
have been brought or intervened in, on behalf of
Westpac under section 237 of the Corporations Act.

WESTPAC GROUP 2022 ANNUAL REPORT 68
Directors’ report
5. Environmental disclosure
The Westpac Group’s environmental framework is
made up of:
• our Sustainability Strategy, which includes our
climate change and environmental targets;
• our Sustainability Risk Management Framework;
• our Climate Change Position Statement and Action
Plan;
• our positions on certain sensitive sectors;
• our Responsible Sourcing Code of Conduct and
Responsible Sourcing Program; and
• public reporting of our environmental performance.
We participate in a number of voluntary initiatives
including the Global Reporting Initiative (GRI), the
Sustainability Accounting Standards Board (SASB),
the Equator Principles, the Principles for Responsible
Banking, the Net-Zero Banking Alliance, the United
Nations Global Compact, the RE100, the Taskforce
on Nature-related Financial Disclosures (TFND) and
the Australian Government Climate Active Carbon
Neutral Standard for Organisations. We also review
our performance against a number of Environmental,
Social and Governance (ESG) benchmarks, including
Sustainalytics, MSCI ESG and ISS. We report our
climate disclosures based on the recommendations of
the Taskforce on Climate-Related Financial Disclosures
(TCFD).
The National Greenhouse and Energy Reporting Act
2007 (NGER) came into effect in September 2007. The
Group reports on greenhouse gas emissions, energy
consumption and production under the NGER for the
period 1 July through 30 June each year.
Our operations are not materially affected by any
other significant environmental regulation under any
law of the Commonwealth of Australia or of any State
or Territory of Australia. We may, however, become
subject to environmental regulation as a result of our
lending activities in the ordinary course of business and
we have policies in place to ensure that this potential
risk is addressed as part of our normal processes.
We are not aware of the Group incurring any material
liability (including for rectification costs) under any
environmental legislation.
Westpac’s sustainability disclosures are available in the
Strategic Review in Section 1 of this Annual Report (see
pages 34 to 43), and in our Sustainability Supplement.
Additional information about our environmental
performance, including information on our climate
change approach, details of our greenhouse gas
emissions profile and environmental footprint, and
progress against our environmental targets and carbon
neutral certification are available on our website
at https://www.westpac.com.au/about-westpac/
sustainability/.
6. Human rights disclosure
Westpac’s overall approach to human rights is set
out in our Human Rights Position Statement and
2023 Action Plan. This lays out the principles and
actions that guide our approach and commitment
to respecting human rights in our role as a financial
services provider, lender, purchaser of goods and
services, employer, and supporter of communities.
For example, our Responsible Sourcing Program,
including the Responsible Sourcing Code of Conduct
and risk assessment methodology is the primary
framework for identifying and addressing human rights
risk in our supply chain.
The Group is subject to the Commonwealth of
Australia’s Modern Slavery Act 2018 (Cth) and the
United Kingdom’s Transparency in Supply Chains
provisions under the Modern Slavery Act 2015.
As required under the Australian and UK legislation,
Westpac publishes an annual statement to disclose
the actions taken by the Group to assess and address
modern slavery risks within our operations and supply
chain. Westpac published its statement for the 2021
financial year in March 2022.
7. Rounding of amounts
Westpac is an entity to which ASIC Corporations
Instrument 2016/191 dated 24 March 2016, relating
to the rounding of amounts in directors’ reports and
financial reports, applies. Pursuant to this Instrument,
amounts in this Directors’ report and the accompanying
financial report have been rounded to the nearest
million dollars, unless indicated to the contrary.
8. Political engagement
In line with Westpac policy, no cash donations were
made to political parties during the financial year
ended 30 September 2022.
In Australia, political expenditure for the financial
year ended 30 September 2022 was $194,842.64.
This relates to payment for participation in legitimate
political engagement activities where they were
assessed to be of direct business relevance to Westpac.
Such activities include business observer programs
attached to annual party conferences, policy dialogue
forums and other political engagement activities, such
as speeches and events with industry participants.
In New Zealand, political expenditure for the financial
year ended 30 September 2022 was nil.

WESTPAC GROUP
2022 ANNUAL REPORT
69
STRATEGIC REVIEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
Directors’ report
9. Directors’ meetings
The Westpac Banking Corporation Board met 12 times during the year ended 30 September 2022. In addition,
Directors attended Board strategy sessions and special purpose committee meetings during the year.
The following table includes:
• Names of the Directors that held office at any time during, or since the end of, the financial year.
• The number of scheduled and unscheduled Board and Board Committee meetings held during the financial
year that each Director, as a member of the Board or Board Committee, was eligible to attend, and the number
of meetings attended by each Director.
The table excludes the attendance of those Directors who attended the Board Committee meetings of which they
are not a member.
Scheduled
meetings
Unscheduled
meetings
3
Risk
Legal,
Regulatory &
Compliance
4
AuditRemuneration
Nominations &
GovernanceTechnology
5
Held
1

At-
tend-
ed
2
Held
1
At-
tend-
ed
2
Held
1
At-
tend-
ed
2
Held
1
At-
tend-
ed
2
Held
1
At-
tend-
ed
2
Held
1
At-
tend-
ed
2
Held
1
At-
tend-
ed
2
Held
1
At-
tend-
ed
2
Director
John McFarlane
6
9933n/an/an/an/an/an/an/an/a55n/an/a
Peter King9933n/an/an/an/an/an/an/an/an/an/an/an/a
Nerida Caesar
7
9933n/an/a88n/an/an/an/an/an/a44
Audette Exel
8
993388n/an/an/an/an/an/an/an/a44
Michael Hawker
9
99337733n/an/an/an/a2244
Chris Lynch
10
993311n/an/a4477n/an/an/an/a
Peter Marriott
11
9933888844n/an/a2244
Peter Nash
12
9933883344n/an/a55n/an/a
Nora Scheinkestel
13
993388n/an/an/an/a99n/an/an/an/a
Margaret Seale
14
99338888n/an/a9955n/an/a
Former Director
Craig Dunn
15
222211n/an/an/an/a3322n/an/a
Steven Harker
16
n/an/a10n/an/a11n/an/a11n/an/an/an/a
1. The number of scheduled meetings held during the time the Director was a member of the Board or Board Committee.
2. The number of scheduled Board or Committee meetings that the Director attended as a member.
3. Out of cycle meetings normally called for a special purpose that do not form part of the Board’s forward agenda.
4. The Board Legal, Regulatory and Compliance Committee was recombined with the Board Risk Committee on 12 August 2022.
5. The Board Technology Committee was dissolved on 12 August 2022, with its responsibilities assumed by the Board Risk Committee
and the Board.
6. Chairman of the Board and Chairman of the Board Nominations & Governance Committee.
7. Retired as a member of the Board Legal, Regulatory and Compliance Committee and Board Technology Committee on 12 August
2022.
8. Member of the Board Risk Committee. Retired as a member of the Board Technology Committee on 12 August 2022.
9. Appointed as a member of the Board Risk Committee on 1 December 2021. Retired as a member of the Board Nominations &
Governance Committee and the Board Legal, Regulatory & Compliance Committee on 1 December 2021 and retired as Chairman of
the Board Technology Committee on 12 August 2022.
10. Member of the Board Audit Committee. Appointed as a member of the Board Remuneration Committee on 1 December 2021. Retired
as a member of the Board Risk Committee on 1 December 2021.
11. Chairman of the Board Risk Committee and member of the Board Audit Committee. Retired as a member of the Board Nominations
& Governance Committee on 1 December 2021 and the Board Legal, Regulatory & Compliance Committee and Board Technology
Committee on 12 August 2022.
12. Chairman of the Board Audit Committee and member of the Board Risk Committee and Board Nominations & Governance Committee.
Retired as a member of the Board Legal, Regulatory & Compliance Committee on 1 December 2021.
13. Member of the Board Risk Committee and Board Remuneration Committee. Appointed as Chairman of the Board Remuneration
Committee following the completion of the 2021 Annual General Meeting.
14. Member of the Board Risk Committee, Board Nominations & Governance Committee and Board Remuneration Committee. Retired as
Chairman of the Board Legal, Regulatory & Compliance Committee on 12 August 2022.
15. Retired as a Director following the completion of the 2021 Annual General Meeting.
16. Retired as a Director on 26 October 2021.

Directors’ report
Dear shareholders,
2022 has been significant for
Westpac. We have made good
progress on our strategic priorities,
lifted our core earnings and returned
over $7.8 billion to shareholders via
dividends and a share buy-back.
We have strengthened our position
by resolving outstanding regulatory
issues, exiting non-core businesses,
reducing costs and streamlining our
organisation.
However, we have not achieved
everything we set out to do and we
still lag peers on some important
performance measures, in particular
total shareholder return (TSR).
These are reflected in both short
term variable reward (STVR)
outcomes and long term variable
reward (LTVR) outcomes for the
CEO and Group Executives.
At the 2021 Annual General Meeting,
just over 30% of the votes cast by
shareholders were against the 2021
Remuneration Report which meant
we incurred a first strike.
In response, the Board
Remuneration Committee has
focused on:
1. Understanding the reasons for
the first strike and responding to
feedback;
2. Assessing remuneration
outcomes for the 2022 financial
year;
3. Assessing remuneration
changes for Directors and Group
Executives;
4. Pay equity; and
5. Considering future changes to
remuneration that meet the
expectations of shareholders,
executives and regulators.
1. First strike
The strike against the adoption of
the Remuneration Report was a
serious message for the Board from
shareholders. As the new Chair of
the Board Remuneration Committee,
I have spoken to many shareholders
and their advisers to understand
their concerns and where we could
do better.
Those that voted against could
not reconcile the results of our
performance with remuneration
outcomes and felt that remuneration
did not align to their experience as
shareholders.
We have therefore enhanced our
disclosures, expanded commentary
and improved our transparency.
We have worked hard to deliver on
the objectives of our remuneration
strategy – to align executive and
shareholder experience while also
providing the motivation that
variable award is designed to deliver
and to honour our contractual
obligations to our people.
2. Remuneration outcomes
Last year, our CEO received fixed
remuneration of $2.40 million and
STVR of $1.68 million, representing
70% of his target opportunity and
47% of his maximum opportunity.
The CEO's LTVR, which comprises
40% of his target package, did not
vest in 2021 as we failed to meet
the TSR and return on equity (ROE)
hurdles reflecting the Board's
stretch targets and the Group's
underperformance in recent years.
This year, our CEO's fixed
remuneration was increased by 4%
as a result of benchmarking against
his peers, which was foreshadowed
in last year’s Remuneration Report.
This is still less than what his two
predecessors were paid.
The CEO's 2022 STVR has been
determined at 78% of his target
opportunity or 52% of his maximum
opportunity and reflects the Board's
assessment of the Group STVR
Scorecard.
The LTVR again did not vest in 2022
given neither the TSR hurdle nor the
ROE hurdle were met.
We understand that shareholders
remain disappointed in our TSR – as
does the Board – but alignment is
delivered by the LTVR not vesting
for the CEO or Group Executives for
seven consecutive years.
Group performance assessment
We have made meaningful progress
on the Fix, Simplify and Perform
strategic priorities which we set two
years ago and which form the basis
of the Group STVR Scorecard.
Half of the Group STVR Scorecard
is weighted to Perform and the
other half is weighted to Fix
and Simplify. The Board and the
executive team firmly believe that
the Fix and Simplify aspects of our
strategic priorities are fundamental
to enabling us to deliver on the
Perform objective, and, in turn,
deliver sustainable returns for
shareholders.
Accordingly, the Board considers it
appropriate to recognise progress
against these priorities in the
determination of the Group STVR
outcome.
We also have formal STVR
Scorecard modifiers that take
into account risk and reputation
and people management and we
introduced environmental, social
and governance considerations
this year. The Board did not feel
Letter from
the Chair
of the Board Remuneration
Committee
Directors’ report
10. Remuneration Report
70WESTPAC GROUP 2022 ANNUAL REPORT

that any matters necessitated
changes to the Group STVR
Scorecard outcome, although there
were upward adjustments for two
Group Executives and a downward
adjustment to one other Group
Executive.
The Board believes the Group STVR
outcome of 78% of target or 52%
of maximum appropriately reflects
the progress made against our
strategic priorities of Fix, Simplify
and Perform, including improved
financial performance, as set out
below.
Fix
Within Fix, our major program to
lift our management of risk and risk
culture, titled Customer Outcomes
and Risk Excellence (CORE), is on
track.
We improved our management of
risk and risk culture, as evidenced
by targeted risk questions in our
employee surveys and we closed
out seven significant historical
regulatory matters with ASIC.
We have also made progress on our
financial crime capability, halved
the number of outstanding high
rated issues and closed out 14 major
customer remediations. While
new incidents have emerged, they
are fewer in number and of lower
severity. However, we remain vigilant
and have more to do.
Simplify
Within Simplify, we have announced
the sale of nine out of eleven
businesses identified for divestment
and we have completed the sale of
six major divestments.
We have consolidated or closed a
number of overseas offices and in
Australia, we finalised organisational
and management changes to
streamline our operations and
bring bankers and relevant support
functions closer to the customer.
We have simplified the business by
eliminating a further 181 products
and over 5 million customers
regularly use our online services.
While we have launched our digital
mortgage, we have not increased
our digital sales as a proportion of
total sales as planned. Specifically,
the broader digitisation of the
mortgage lending process is not yet
where we want it.
Perform
Within Perform, both cash earnings
and core earnings (excluding
notable items) were higher than
targets, including from better
growth and a reduction in expenses.
The strength of the balance sheet
was also retained, enabling us to
conduct a share buy-back and
increase dividends.
Business lending was strong but
mortgage growth and service
targets were not met. Customer
satisfaction has improved but our
net promoter scores remain below
those of peers and we have not
delivered the improvement planned.
We have continued to drive the
Group’s cultural change through
our culture reset program which
has delivered good progress over
the year. The Organisational Health
Index score of 75 was a strong result
given the significant organisational
change earlier in the year.
Further detail on performance
against all measures of the
Scorecard is set out in Section 3.5.
3. Remuneration changes for
Directors and Group Executives
Board fees
We reviewed the Board’s fees
relative to market and investor
expectations. As a result, we
reduced the Chairman’s base
fee from $913,999 to $850,000.
Reductions were also made to fees
for Committee Chairs and all other
Non-executive Directors.
In addition, in keeping with our
simplification objectives and
mirroring changes in executive
responsibilities, we rationalised two
Board Committees.
As a result, the total cost of the
Board will reduce by 10.5% on an
annualised basis.
Total target remuneration changes
In addition to the CEO's total target
remuneration increase for 2022, the
Board determined increases for two
other executives. Further detail is
contained in the report.
Minimum shareholding requirements
We revised the executive minimum
shareholding requirements to
remove unvested LTVR from the
calculation of shareholdings,
noting that sale restrictions apply
if requirements are not met. As
committed last year, the CEO has
not sold any shares this year.
We also increased the Chairman’s
minimum shareholding requirement
from one times the Non-executive
Director fee to one times the
Chairman’s fee, in line with peers.
4. Pay equity
We are committed to combining
workforce flexibility with pay equity.
Westpac’s pay principles are to pay
employees fairly and competitively
against the external market, based
on capability and experience.
We have finalised voting on our
new Australian 2023 Enterprise
Agreement with two thirds of
employees, who voted, voting yes.
The new Enterprise Agreement
provides employees with
competitive fixed pay increases in
2023 and 2024, while also providing
employees a pre-tax one-off
payment of $1,000 to help with
the current cost of living pressures.
Refer to the following page for
a summary of our Enterprise
Agreement arrangements.
We also continue our commitment
to gender pay equity. While there is
a difference in aggregate at some
levels, our aim continues to be that
there is no difference in pay equity
for people in similar roles across the
organisation. Over 2020 and 2021,
aside from our annual remuneration
review processes, we adjusted
salaries for 759 female employees
to address pay equity. Our policy
continues to be to take prompt
remedial action if we become aware
of a pay gap in like for like work.
Earlier this year, we removed
pay confidentiality clauses from
employee contracts, with a goal of
improving pay transparency and
building trust around pay.
5. Future direction of
remuneration
Our executive remuneration
structure for 2023 is unchanged. We
will continue to review our executive
remuneration structure and market
developments to ensure we remain
competitive with peers. We believe
we are well placed to implement
any necessary changes from 1
October 2023 in line with APRA's
new Prudential Standard CPS 511
Remuneration. We will consult with
stakeholders around any proposed
material changes.
On behalf of the Board, I encourage
you to read the report in full and we
welcome your feedback.
Nora Scheinkestel
CHAIR, BOARD REMUNERATION
COMMITTEE
71
WESTPAC GROUP
2022 ANNUAL REPORT
STRATEGIC REVIEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
Directors’ report

Directors’ report
Rewarding performance
in 2022
The 2022 Group STVR Scorecard outcome of 78% of
target or 52% of maximum opportunity (up from 47%
of maximum in 2021) recognises progress against our
strategic priorities.
There are a range of financial and non-financial
measures used to determine STVR. The CEO's average
STVR outcome since appointment is 33% of maximum
opportunity. The CEO's STVR was cancelled in 2020 as
part of collective accountability for the AUSTRAC matters.
Alignment with shareholders
The 2019 LTVR lapsed in full for the seventh consecutive year reflecting the underperformance of relative TSR and ROE
in recent years.
Reinforcing risk
behaviours
We believe that recognising and rewarding positive risk
behaviours and outcomes is as important as applying
consequences for poor risk behaviour.
313 employees received an increased variable reward
outcome for delivering exceptional risk outcomes.
There were 1,026 referrable code of conduct breaches
for employees based in Australia in 2022, of which 158
employees exited the business and 868 employees were
subject to formal disciplinary outcomes.
A balanced offer
for our people
Our new Australian 2023 Enterprise Agreement (EA)
provides competitive pay for eligible employees in 2023 and
2024, simpler terms and conditions and enhanced benefits.
An increase of 4% on 1 January 2023 for eligible employees
who earn up to $94,446 (Tier 1) – the largest group covered
by the EA pay increases. Plus a $1,000 one off cash
payment for most employees as part of helping with cost of
living pressures. This equates to a total benefit of 5.4% for
employees earning $70,000.
Over 2015 to 2021, we increased fixed pay for Tier 1 employees
by 19.75% while inflation over the same period was 10.9%.
Differentiating for
performance
25% to 60% of 25% to 60% of
maximum STVRmaximum STVR
We are building a culture of excellence and performance.
Competitive remuneration is required to attract the talent
needed to deliver on our strategic priorities.
The average Group Executive 2022 STVR outcome was
79% of target or 53% of maximum opportunity, with
outcomes ranging from 25% to 60% of maximum.
We focused on driving individual accountability through
specific measures in each of the Group Executive STVR
Scorecards designed to uplift overall performance. STVR
outcomes reflect progress against these measures.
Two Group Executives received upward adjustments using
the STVR Scorecard modifier for risk and reputation and
environmental, social and governance considerations.
One Group Executive received a downward adjustment to
their STVR outcome as a result of risk related matters.
0%
20%
40%
60%
80%
100%
CEO STVR outcome
0
2,000
4,000
6,000
10,000
8,000
Earnings ($m)
Cash earnings ($m)
Cash earnings excluding
notable items ($m)
CEO STVR outcome (% of maximum)
202020212022
CEO STVR outcome (% of target)
Core earnings excluding
notable items ($m)
Cash return on equity (%)
LTVR award (% vested)
0%
20%
40%
60%
100%
80%
0%
2%
4%
6%
8%
10%
12%
14%
LTVR award (% vested)
Cash return on equity
20182019202020212022
-60%
-20%
0%
20%
40%
80%
60%
Total shareholder return
Oct 17Oct 18Oct 19Oct 20Oct 21
Oct 22
Peer 1Peer 2Peer 3Westpac
-40%
72WESTPAC GROUP 2022 ANNUAL REPORT
Remuneration outcomes and highlights for 2022

Supporting organisational change
In 2022, we implemented further changes designed to
help simplify the bank, improve accountability and reduce
our cost base. Key initiatives included:
1. Lines of Business, bringing bankers
and support functions closer to the
customer
We implemented changes designed to reduce our cost
base, create a smaller more focused head office and
reduce the size of corporate functions.
We have further embedded the Lines of Business model
which means a single leader has end-to-end accountability
for a customer need, such as mortgages or business
lending.
Changes in Customer Services & Technology were made
to shift support functions to be closer to the customers
they serve. Services not directly facing the customer were
consolidated to enable greater focus on service excellence
and efficiency.
The Corporate Services Division was created to realise
the benefits of scale across common processes. Carolyn
McCann (Group Executive, Corporate Services) was
appointed to the new role. Her total target remuneration
was increased by 13% to reflect the additional scope and
accountability of her expanded role.
2. Restructuring the Risk Division
Progress on our financial crime program and strengthening
our risk management allowed us to consolidate financial
crime and compliance back within the Risk Division.
As a result, the roles of Chief Risk Officer and Group
Executive, Financial Crime, Compliance & Conduct were
combined.
Ryan Zanin was appointed Chief Risk Officer. His
appointment arrangements are as follows:
• Total target remuneration of $5.26 million¹ comprised of
32% fixed remuneration, 24% STVR and 44% LTVR.
• Pro rata 2022 LTVR grant.
• Buy out award
2
comprising cash components totalling
$1.05 million.
• Relocation benefits of $0.25 million.
David Stephen (former Chief Risk Officer) and Les Vance
(former Group Executive, Financial Crime, Compliance &
Conduct) received contractual entitlements
³
in line with
retrenchment. Their unvested equity remains on foot and
they were eligible for 2022 STVR on a pro rata basis.
Other decisions to
support our business
CEO, Westpac New Zealand
Catherine McGrath was appointed Chief Executive Officer,
Westpac New Zealand. Her appointment arrangements are
as follows:
• Total target remuneration of NZ$3.65 million comprised
of 26% fixed remuneration, 26% STVR and 48% LTVR.
• Pro rata 2022 LTVR grant.
Aligning with market benchmarks
As referenced in the 2021 Report, a total target
remuneration increase of 4% for 2022 was approved for
Michael Rowland (Chief Financial Officer) following a
market review.
1. Includes the increase to the superannuation guarantee rate from 10.0% to 10.5% effective 1 July 2022.
2. Provided to compensate external hires for remuneration foregone from their previous employer upon resignation to join Westpac.
Awards reflect the vesting profile at the previous employer and are subject to continued service and adjustment.
3. Refer to Section 5.4 for an overview of employment agreements including termination provisions.
3. Streamlining Board Committees
The Board reviewed its Committee structure and made the
following changes:
• The Board Legal, Regulatory and Compliance
Committee was combined with the Board Risk
Committee which mirrors the changes in executive
responsibilities described previously.
• The Board Technology Committee was dissolved and
the agenda will be addressed by the full Board as the
Board considers technology to be core to strategy.
In addition, fees were benchmarked and it was decided
that reductions were appropriate.
The Chairman's fee has been reduced from $913,999
to $850,000. Non-executive Director base fees and
Committee Chair fees were also reduced. Details are set
out in Section 6.2. The total cost of the Board as a result
of the changes will be reduced by 10.5% on an annualised
basis.
73
WESTPAC GROUP
2022 ANNUAL REPORT
STRATEGIC REVIEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
Directors’ report

Directors’ report
Remuneration Report
Contents
1. Key Management Personnel75
2. Summary of the 2022
executive remuneration framework
76
3. 2022 remuneration outcomes and
alignment to performance
78
4. Further detail on the executive variable
reward structure
83
5. Remuneration governance85
6. Non-executive Director remuneration87
7. Statutory remuneration details88
74WESTPAC GROUP 2022 ANNUAL REPORT

75
WESTPAC GROUP
2022 ANNUAL REPORT
STRATEGIC REVIEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
Directors’ report
1. Key Management Personnel
The remuneration of KMP is disclosed in this Report. Disclosures related to former KMP that ceased in 2021 are
included in the 2021 Annual Report.
KMP is defined as those persons having authority and responsibility for planning, directing and controlling the
activities of an entity, directly or indirectly, including any director (whether executive or otherwise) of that entity.
NamePositionTerm as KMP
Managing Director & Chief Executive Officer
Peter KingManaging Director & Chief Executive OfficerFull Year
Group Executives1
Scott Collary
2
Group Executive, Customer Services & TechnologyFull Year
Chris de BruinChief Executive, Consumer & Business BankingFull Year
Carolyn McCann
3
Group Executive, Corporate ServicesFull Year
Catherine McGrathChief Executive Officer, Westpac New ZealandCommenced on 15 November 2021
Anthony MillerChief Executive, Westpac Institutional BankFull Year
Christine ParkerGroup Executive, Human ResourcesFull Year
Michael RowlandChief Financial OfficerFull Year
Jason Yetton
4
Chief Executive, Specialist BusinessesFull Year
Ryan Zanin
5
Chief Risk OfficerCommenced on 19 April 2022
Former Group Executives
Simon PowerActing Chief Executive Officer, Westpac New ZealandCeased on 14 November 2021
David StephenChief Risk OfficerCeased on 28 April 2022
Les VanceGroup Executive, Financial Crime, Compliance & ConductCeased on 28 April 2022
Current Non-executive Directors
John McFarlaneChairmanFull Year
Nerida CaesarDirectorFull Year
Audette Exel AODirectorFull Year
Michael Hawker AMDirectorFull Year
Chris LynchDirectorFull Year
Peter MarriottDirectorFull Year
Peter NashDirectorFull Year
Nora ScheinkestelDirectorFull Year
Margaret SealeDirectorFull Year
Former Non-executive Directors
Craig DunnDirectorRetired on 15 December 2021 following
completion of the 2021 Annual General
Meeting
Steven HarkerDirectorRetired on 26 October 2021
1. References to Group Executives in this Report refer to Group Executives who are in KMP roles.
2. Scott Collary’s title was changed from Chief Operating Officer to Group Executive, Customer Services & Technology on 1 March 2022.
Scott’s total target remuneration was not changed.
3. Carolyn McCann's title was changed from Group Executive, Customer & Corporate Relations to Group Executive, Corporate Services
on 3 February 2022.
4. Jason Yetton’s title was changed from Chief Executive, Specialist Businesses & Group Strategy to Chief Executive, Specialist
Businesses on 8 November 2021. Jason’s total target remuneration was not changed.
5. Ryan Zanin commenced as a Group Executive on 19 April 2022 and assumed responsibility as Chief Risk Officer on 29 April 2022. This
role combined the Chief Risk Officer and the Group Executive, Financial Crime, Compliance & Conduct roles that were previously held
by David Stephen and Les Vance, respectively, both of whom ceased on 28 April 2022.

76WESTPAC GROUP 2022 ANNUAL REPORT
Directors’ report
2. Summary of the 2022 executive remuneration framework
Our purpose and strategy are supported by our remuneration strategy, principles and frameworks.
Westpac’s purpose and strategy
Westpac’s purpose is to help Australians and New Zealanders succeed. Our strategy seeks to deliver on
our purpose by building deep and enduring customer relationships, being a leader in the community,
being a place where the best people want to work and, in so doing, delivering sustainable returns for
shareholders.
In delivering our strategy, we have three priorities that help guide our activities:
• Fix;
• Simplify; and
• Perform.
Remuneration strategy
Westpac’s remuneration strategy is designed to attract and retain talented employees by rewarding
them for achieving high performance and delivering superior long-term results for our customers and
shareholders, while adhering to sound risk management and governance principles.
Remuneration principles
The remuneration strategy is underpinned by the following principles:
• align remuneration with customer and shareholder interests;
• support an appropriate risk culture and employee conduct;
• differentiate pay for behaviour and performance in line with our strategy and purpose;
• provide market competitive and fair remuneration;
• enable recruitment and retention of talented employees;
• provide the ability to risk-adjust remuneration; and
• be simple, flexible and transparent.
Executive remuneration framework
Fixed remunerationSTVRLTVR
Purpose
Attract and retain high quality
executives through market
competitive and fair remuneration.
Ensure a portion of remuneration is variable,
at-risk and linked to the delivery of agreed
targets for financial and non-financial
measures that support Westpac’s strategic
priorities. The STVR outcome can range
from 0% to 100% of target depending on
performance relative to targets agreed at
the beginning of the year, or exceed 100%
(up to a maximum of 150% of target) when
exceptional performance is achieved.
Align executive accountability
and remuneration with
the long-term interests of
shareholders by rewarding the
delivery of sustained Group
performance over the long
term.
Delivery
Comprises cash salary,
salary sacrificed items and
superannuation contributions.
Awarded in cash (50%) and restricted
shares
1
(50%) based on an assessment
of performance over the preceding year.
Restricted shares vest in equal portions after
one and two years subject to continued
service and adjustment.
Awarded in performance
share rights which vest after
four years subject to the
achievement of a relative TSR
performance hurdle, continued
service and adjustment.
Alignment to performance
Set with reference to market
benchmarks in the financial
services industry in Australia
and globally as well as the size,
responsibilities and complexity
of the role, and the skills and
experience of the executive.
Individual performance impacts
fixed remuneration adjustments.
Performance is assessed using a scorecard
comprising:
• a values and behaviours assessment
against Westpac's values;
• financial and non-financial measures linked
to Westpac’s key strategic priorities; and
• a modifier to support the adjustment of
the outcome, upwards or downwards
(including to zero), for risk and reputation,
people management, environmental, social
and governance considerations and any
other matters as determined by the Board.
Performance is assessed
against relative TSR which
is a comparative measure
of Westpac’s performance
(measured over four years)
relative to a group of Australian
financial services companies.
Alignment to shareholders
Minimum shareholding requirements
²

equivalent to five times annual
fixed remuneration excluding
superannuation for the CEO and $1.2
million for Group Executives. These
requirements must be satisfied within
five years of appointment.
Half of the STVR award is deferred into
equity for a period of up to two years to
support alignment with shareholders over
the medium term.
The LTVR is delivered in
equity and the relative TSR
performance hurdle is aligned
to long-term shareholder
returns and value creation.
1. The Group Executive outside of Australia receives deferred STVR as unhurdled share rights.
2. Revised minimum shareholding requirements are effective from 1 October 2022. Refer to Section 5.2 for further detail.

77
WESTPAC GROUP
2022 ANNUAL REPORT
STRATEGIC REVIEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
Directors’ report
2.1. Risk
Westpac’s remuneration arrangements are designed and managed to support effective risk management, the
generation of appropriate risk-based returns and the risk profile associated with our businesses which incorporate
products with varying complexity and maturity profiles.
• Remuneration outcomes: The performance of the Group and each Division is reviewed and measured with
reference to how risk is managed in line with Westpac’s Risk Appetite Statement and the results influence
remuneration outcomes. The key risks that are considered include strategic risk, risk culture, operational risk,
compliance and conduct, financial crime, cyber risk, reputational and sustainability risk, capital adequacy,
funding and liquidity risk, credit risk and market risk. In addition, STVR outcomes are influenced by relevant
risk-related matters through the Board’s application of the Scorecard modifier, which is informed by risk and
compliance input independent of the business or functional area.
• Variable reward pool: The Board determines the size of the variable reward pool each year. This is based
on the Group’s performance for the year and the variable reward opportunity across the workforce and
a discretionary overlay to reflect quality of performance and/or exceptional circumstances. Non-financial
measures are reflected in both the Group’s performance and the overlay, which includes talent retention and
market competitiveness considerations.
• Mandatory risk and compliance requirements: Individuals are only eligible to receive a fixed remuneration
increase, STVR and LTVR where an individual has satisfied minimum requirement gates which require that
behaviours are in line with Westpac’s values and code of conduct and that the individual has met the risk and
compliance requirements for their role and business.
• Remuneration adjustments for prior period matters: The Board may adjust all forms of unvested deferred
variable reward downward, including to zero, for matters arising from a prior period if circumstances or
information come to light which mean that in the Board’s view all or part of the award was not appropriate.
Having decided that a downward adjustment is appropriate and determined the amount of any adjustment,
typically the Board will first apply that adjustment against the STVR for the current performance period. In
instances where an adjustment to current year STVR is insufficient or unavailable, the Board may apply the
adjustment to unvested deferred variable reward. Clawback provides an additional mechanism to recover
vested deferred variable reward in certain limited circumstances for awards made in respect of performance
periods commencing on or after 1 October 2019. It is the Board’s current intention that clawback will only be
considered for relevant conduct that occurred on or after 1 October 2019.
2.2. 2022 target remuneration mix
1
30% fixed
remuneration
15% STVR
(cash component)
15% STVR
(deferred
component)
40% LTVR
Chief Executive Ocer

26% fixed
remuneratio
n
13% STVR
(cash component
)
13% STVR
(deferred
component)
48% LTVR
Group Executives
2
1. Based on target STVR and LTVR (face value). Variation in the target remuneration mix by individual may apply.
2. Excludes Control Function Group Executives with a target remuneration mix generally comprised of 32% fixed remuneration, 24%
STVR and 44% LTVR. This applies to the Group Executive, Corporate Services, the Group Executive, Human Resources, the Chief
Financial Officer and the Chief Risk Officer.
2.3. Timeline of potential remuneration
20232024202520262022
Date eligible for vesting
Date granted
Date paid
Cash STVR award (50%)
Fixed remuneration
LTVR award subject to relative TSR performance (100%) – measured over 4 years
Deferred STVR award (25%)
Deferred STVR award (25%)

78WESTPAC GROUP 2022 ANNUAL REPORT
Directors’ report
3. 2022 remuneration outcomes and alignment to performance
3.1. Snapshot of 2022 remuneration outcomes
2022
STVR
The CEO's 2022 STVR outcome based on the Group STVR Scorecard was 78% of target or 52% of the
maximum opportunity.
The average 2022 STVR outcome for Group Executives based on their individual STVR Scorecards
was 79% of target or 53% of the maximum opportunity, with outcomes ranging from 25% to 60% of
maximum. The average outcome for 2022 was up from the 2021 average of 48% of maximum.
Further detail on performance and individual outcomes is set out in Section 3.5 (2022 Group STVR
Scorecard) and Section 3.6 (Variable reward awarded for 2022).
2019
LTVR
There is a zero vesting outcome under Westpac’s LTVR plan for the CEO and Group Executives in
2022. The performance hurdles, comprising relative TSR and cash ROE
1
, were not achieved and the
2019 LTVR award lapsed in full reflecting the stretch targets.
The table below shows the vesting outcome for the 2019 LTVR awarded to the CEO and Group
Executives that reached the end of its performance period in 2022.
Performance
hurdle
Performance
start dateTest date
Performance range
Outcome% Vested% Lapsed
ThresholdMaximum
TSR
(50% of
award)
1 October
2018
1 October
2022
Equal to
composite
TSR index
Exceeds
composite
TSR index² by
21.55
(i.e. 5% CAGR
3)
Westpac:
-11.08%
Index:
8.23%
0%100%
ROE
(50% of
award)
1 October
2018
1 October
2021
4
13.00%14.00%7.31%0%100%
1. Cash ROE is return on equity on a cash earnings basis. Cash earnings is not prepared in accordance with Australian accounting
standards and has not been subject to audit. Refer to Note 2 to the Financial Statements for a description of cash earnings.
2. The composite TSR index is comprised of a group of 10 companies with more weight placed on the three other major Australian banks.
3. Compound annual growth rate.
4. The cash ROE hurdled performance share rights reached the end of their performance period on 30 September 2021 and were subject
to an additional one year holding lock through to 30 September 2022.
3.2. Group performance
The table below summarises Group key performance indicators and variable reward outcomes over the last five
years.
Years ended 30 September
20222021202020192018
CEO STVR outcome (% of maximum)52%47%0%0%52%
CEO STVR outcome (% of target)78%70%0%0%78%
Average Group Executive STVR outcome (% of maximum)53%48%0%37%58%
Average Group Executive STVR outcome (% of target)79%73%0%56%87%
LTVR outcome (% vested)0%0%0%0%0%
Cash earnings
1
($m)5,2765,3522,6086,8498,065
Cash earnings (excluding notable items) ($m)6,5686,9535,2277, 9798,346
Net profit attributable to owners of WBC ($m)5,6945,4582,2906,7848,095
TSR – three years(15.92%)1.18%(35.43%)15.33%8.27%
TSR – five years(13.82%)10.34%(27.87%)14.58%25.67%
Dividends per Westpac share (cents)12511831174188
Cash earnings per Westpac share
1
$1.48$1.46$0.73$1.98$2.36
Share price – high$26.44$27.12$29.81$30.05$33.68
Share price – low$18.80$16.51$13.47$23.30$27.24
Share price – close$20.64$26.00$16.84$29.64$27.93
1. Cash earnings is not prepared in accordance with Australian accounting standards and has not been subject to audit. Refer to Note 2
to the Financial Statements for a description of cash earnings.

79
WESTPAC GROUP
2022 ANNUAL REPORT
STRATEGIC REVIEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
Directors’ report
3.3. Total realised remuneration – Chief Executive Officer and Group Executives
The table below details the actual remuneration paid
1
and equity that vested
2
in 2022 and 2021. This table is not
prepared in accordance with Australian accounting standards.
Fixed
remuneration
Cash STVR
payments
Vesting of
prior year
deferred STVR
awards
Vesting of
prior year
LTVR awards
Total realised
remuneration
Prior year
LTVR lapsed
Name$$$$$$
Managing Director & Chief Executive Officer
Peter King, Managing Director & Chief Executive Officer
20222,505,037 975,000 419,839 - 3,899,876 1,925,747
20212,403,149 840,000 169,680 - 3,412,829 2,043,148
Group Executives
Scott Collary, Group Executive, Customer Services & Technology
20221,233,073 520,500 222,174 - 1,975,747 -
20211,123,350 444,500 - - 1,567,850 -
Chris de Bruin, Chief Executive, Consumer & Business Banking
20221,308,568 546,000 233,676 - 2,088,244 -
2021941,648 467,500 - - 1,409,148 -
Carolyn McCann, Group Executive, Corporate Services
2022975,916 324,500 142,456 - 1,442,872 1,043,742
2021901,181 285,000 101,083 - 1,287,264 318,535
Catherine McGrath, Chief Executive Officer, Westpac New Zealand
3
2022799,221 318,974 - - 1,118,195 -
2021-------------------------------------------- Not a KMP in 2021 ------------------------------------
Anthony Miller, Chief Executive, Westpac Institutional Bank
20221,182,743 416,500 195,929 - 1,795,172 -
20211,122,518 392,000 - - 1,514,518 -
Christine Parker, Group Executive, Human Resources
20221,006,590 356,000 159,939 - 1,522,529 1,534,558
20211,001,312 320,000 163,708 - 1,485,020 1,628,097
Michael Rowland, Chief Financial Officer
20221,262,539 394,500 202,433 - 1,859,472 -
20211,201,574 405,000 - - 1,606,574 -
Jason Yetton, Chief Executive, Specialist Businesses
20221,182,743 527,500 308,396 - 2,018,639 -
20211,177,574 617,000 - - 1,794,574 -
Ryan Zanin, Chief Risk Officer
3
2022767,034 228,000 - - 995,034 -
2021-------------------------------------------- Not a KMP in 2021 ------------------------------------
Former Group Executives
Simon Power, Acting Chief Executive Officer, Westpac New Zealand
3
202289,601 - 42,975 - 132,576 -
2021200,897 82,066 - - 282,963 -
David Stephen, Chief Risk Officer
3
20221,039,884 148,500 219,414 - 1,407,798 1,904,124
20211,802,362 439,000 242,181 - 2,483,543 4,788,645
Les Vance, Group Executive, Financial Crime, Compliance & Conduct
3
2022577,713 158,500 139,194 - 875,407 -
2021959,331 278,500 - - 1,237,831 -
1. Excluding contractual provisions relating to termination.
2. Equity that vested in October 2022 is included in the 2022 figures. Equity that vested in October 2021 is included in the 2021 figures.
The value of deferred STVR and LTVR is based on the number of restricted shares or share rights multiplied by the five day volume
weighted average price (VWAP) up to and including the scheduled date of vesting, forfeiture or lapse (as relevant). The value of
equity differs from the disclosure in Section 7.
3. The information relates to the period the individual was a KMP. Refer to Section 1 for further details.
3.4. Buy out awards paid or vested during 2022
In addition, the following buy out awards were paid or vested under the restricted share plan during the year:
• Chris de Bruin had 10,834 restricted shares vest in April 2022;
• Anthony Miller had deferred cash payments of $246,160 and $685,060 made in February 2022 and March
2022 respectively, 12,772 restricted shares vest in February 2022 and 31,900 restricted shares vest in March
2022; and
• David Stephen had 6,552 restricted shares vest in March 2022.

80WESTPAC GROUP 2022 ANNUAL REPORT
Directors’ report
Strategic
priorityMeasureOutcomeCommentary
Fix
(30%)
Deliver our CORE program
100%n/an/a
100% of design activities complete, 87%
implemented and 32% of embed activities
completed.
Improve risk management
measures
3.534
Enterprise Risk Management rating improved from
'Needs Improvement' (3.33) to 'Effective' (3.62).
Simplify
(20%)
Exit non-core businesses
767+
6 major divestments completed.
Address complexity for our
customers by reducing products
12251
172
181 products closed which met stretch
performance.
Transform using digital and data to
improve the customer experience
% of digital sales and
digitally active customers
The number of 30 day digitally active customers
was at stretch however the proportion of digitally
initiated sales was at threshold.
Perform
(50%)
Enhance returns and optimise
capital:
• Cash earnings (excluding
notable items)
-5%+5%$6.36bn
$6.57bn which was above target.
• Core earnings (excluding
notable items)
-5%+5%$9.58bn
$9.73bn which was above target.
• Return on tangible equity
(excluding notable items)
-5%+5%10.3%
10.6% which was above target.
• Cost base target for 2022
(excluding notable items)
+2%-2%$9.98bn
$10.17bn which was at threshold performance.
Growth in core markets:
• Australian mortgages
0.8x1x>1x
Growth was below threshold at 0.5x major bank
system growth.
• Australian business lending
0.8x1x>1.1x
Growth was at stretch at 1.1x major bank system
growth.
Customer service:
• Net promoter scores
Close the gap to major banks
Consumer and Business net promoter scores did
not close the gap to major bank average and were
below threshold.
• Mortgage first party time-to-
right
8<710
Mortgage first party time-to-right improved and
met stretch performance at 6.4 days.
• Business lending time-to-
decision
1012<8
Business lending time-to-decision did not meet
threshold and was at 14.9 days.
People, capability and culture
including risk culture
747576
Organisational Health Index score met the target of
75 (up from 74).
3.5. 2022 Group STVR Scorecard
The Group’s priorities are set out in the Group Scorecard, which forms part of the CEO’s Scorecard. Common
elements appear in Group Executive Scorecards together with individual objectives reflecting Divisional measures.
The weighting of the Fix strategic priority across all Scorecards was agreed with APRA.
A summary of the performance assessment is provided below and is designed to be read over two pages.
Individual measures have been assessed against a 'Threshold', 'Target' and 'Stretch' rating scale as outlined in the
key. Each strategic priority has also been assessed in totality using the same key.
Key:
Threshold
50-75%
Stretch
100-125%
Target
75-100%

81
WESTPAC GROUP
2022 ANNUAL REPORT
STRATEGIC REVIEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
Directors’ report
Performance assessment
The CORE program is on track as confirmed by Promontory’s seventh report. We halved the number of outstanding high rated issues.
Financial crime capability continues to mature with upgrades to systems and the control environment. We closed out seven significant
historical matters with ASIC and 14 major customer remediation programs. The liquidity matter with APRA was resolved and the liquidity
overlay was removed. Sufficient progress was achieved with RBNZ to reduce the overlay to approximately 7% for Westpac New Zealand.
In contrast to last year when a number of major risk incidents arose, 2022 has seen fewer and lower severity incidents than last year. Risk
culture measures as tested through organisation wide surveys have shown improvements.
Overall, while these measures demonstrate progress, we still have room to improve and this been reflected in the overall outcome.
We assessed the Fix priority at 82.5% of target and 55% of maximum, compared to 60% of target last year.
Three further sales were completed in 2022 and we signed agreements for the divestment of BT Super and Advance Asset Management.
All steps required to close the Hong Kong, Shanghai and Beijing branches were completed and we await regulatory approval.
Following the successful roll out of the Westpac App to iOS (2021) and Android (2022), we achieved a stretch outcome with over 5
million 30 day digitally active customers (being those customers with at least 1 successful digital log in, in the last 30 days).
The proportion of digitally initiated sales only achieved threshold given a higher number of customers continued to attend branches. We
will continue to invest in digital initiatives.
Overall, we are becoming a simpler bank with a more focused portfolio which reduces risk and improves the cost base for the
organisation.
We assessed the Simplify priority at 80% of target and 53% of maximum, compared to 85% of target last year.
Financials: Cash earnings and core earnings (excluding notable items) were higher than targets. Notable items totalled $1.29bn of which
the largest item was associated with the sale of Life Insurance at $1.1bn. The loss was announced to the market last year and considered
at the time of setting targets. The sale of the Life Insurance business was a strategic decision supported by the Board and its finalisation
added 17 basis points to the Group's CET1 capital ratio.
Core earnings, which reflects the underlying business before impairment charges were up 6% over the year. Excluding notable items and
the impact of sold businesses, core earnings were up 8%. The strength of the balance sheet was also retained, enabling us to conduct a
share buy-back and increase dividends. Return on tangible equity was above target reflecting earnings.
The cost to income ratio was reduced from 63% to 55%. Performance against the cost base target was only at threshold as risk and
regulatory compliance costs, particularly in New Zealand, were higher than planned.
Growth: Australian business and institutional lending was strong (up 15%) but mortgage growth targets were not met.
Customer service: Over the year we delivered important digital capability, including improvements to our Westpac mobile app. Consumer
net promoter scores saw some improvement however this was not enough to close the gap to our competitors. Business saw a
deterioration in net promoter scores and we have made further changes to improve customer outcomes.
Mortgage first party time-to-right has improved through increasing operational capacity and simplifying policy and processes. Business
lending time-to-decision has improved but we did not meet our target, due to increased application volumes, deal complexity and
compliance related changes.
Organisational Health Index: We have continued to drive the Group’s cultural transformation through our culture reset program which has
delivered good progress over the year. The Organisational Health Index score of 75 (up from 74 last year) was a strong result given the
significant organisational changes earlier in the year.
Overall, earnings were higher than targets, costs were at threshold and we delivered good progress on our cultural transformation.
However, we had mixed performance on growth in core markets and we did not close the gap on customer service.
We assessed the Perform priority at 75% of target and 50% of maximum, compared to 70% of target last year.
Overall Group Scorecard performance assessment78% of target
52% of maximum
Modifier: The STVR Scorecard modifier takes into account risk and reputation, people management and
environmental, social and governance considerations. This year, the Board noted progress in these areas
however, it felt that this did not necessitate changes to the overall outcome.
No adjustment at the
Group level¹
Adjusted Group Scorecard performance assessment78% of target
52% of maximum
1. Two Group Executives received upward adjustments using the STVR Scorecard modifier for risk and reputation and environmental,
social and governance considerations. One Group Executive received a downward adjustment to their STVR outcome as a result of risk
related matters.

82WESTPAC GROUP 2022 ANNUAL REPORT
Directors’ report
3.6. Variable reward awarded for 2022
The table below shows the variable reward awarded to the CEO and Group Executives for 2022, including:
• STVR outcomes for 2022 (including the cash and deferred equity components); and
• equity granted under the 2022 LTVR plan. The 2019 LTVR did not vest in 2022. The 2022 LTVR grants shown
at face value in the table below will be tested on 1 October 2025.
The final value of equity received will depend on the share price at the time of vesting and the number of
restricted shares or share rights that vest subject to performance hurdles (where applicable), continued service
and remuneration adjustments.
The value of equity differs from the disclosure in Section 7 which provides the annualised accounting value for
unvested equity awards prepared in accordance with Australian accounting standards.
2022 STVR award
2022 LTVR
award
Name
Target
STVR
opportunity
(pro rata)
($)
Maximum
STVR
opportunity
(pro rata)
($)
STVR
outcome
(% of
target)
STVR
outcome
(% of
maximum)
STVR
outcome
1

($)
Maximum
STVR
foregone
($)
Face value
2

(pro rata)
($)
Managing Director & Chief Executive Officer
Peter King 2,500,000 3,750,000 78%52% 1,950,000 1,800,000 3,250,000
Group Executives
Scott Collary
Group Executive, Customer Services &
Technology 1,225,000 1,837,500 85%57% 1,041,000 796,500 2,250,000
Chris de Bruin
Chief Executive, Consumer & Business
Banking 1,300,000 1,950,000 84%56% 1,092,000 858,000 2,400,000
Carolyn McCann
Group Executive, Corporate Services 729,178 1,093,767 89%59% 649,000 444,767 1,335,205
Catherine McGrath
3
Chief Executive Officer, Westpac New
Zealand 769,045 1,153,568 83%55% 637,948 515,620 1,416,456
Anthony Miller
Chief Executive, Westpac Institutional Bank 1,175,000 1,762,500 71%47% 833,000 929,500 2,150,000
Christine Parker
Group Executive, Human Resources 800,000 1,200,000 89%59% 712,000 488,000 1,562,000
Michael Rowland
Chief Financial Officer 950,000 1,425,000 83%55% 789,000 636,000 1,740,000
Jason Yetton
Chief Executive, Specialist Businesses 1,175,000 1,762,500 90%60% 1,055,000 707,500 2,150,000
Ryan Zanin
3
Chief Risk Officer 569,589 854,384 80%53% 456,000 398,384 1,044,247
Former Group Executives
Simon Power
3
Acting Chief Executive Officer, Westpac New
Zealand 92,765 139,147 - - - 139,147 -
David Stephen
3
Chief Risk Officer 776,712 1,165,068 38%25% 297,000 868,068 2,559,375
Les Vance
3
Group Executive, Financial Crime,
Compliance & Conduct 428,630 642,945 74%49% 317,000 325,945 1,355,000
Average Group Executive STVR outcome79%53%
1. Two Group Executives received upward adjustments using the STVR Scorecard modifier for risk and reputation and environmental,
social and governance considerations. One Group Executive received a downward adjustment to their STVR outcome as a result of risk
related matters.
2 Calculated by multiplying the number of rights by the five day VWAP up to the commencement of the performance period. The five
day VWAP was $25.51 for awards made in December 2021, March 2022 and May 2022.
3. The information relates to the period the individual was a KMP. Refer to Section 1 for further details.

83
WESTPAC GROUP
2022 ANNUAL REPORT
STRATEGIC REVIEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
Directors’ report
4. Further detail on the executive variable reward structure
This section provides further details of the 2022 STVR and LTVR plans.
4.1. Short term variable reward
The table below sets out the key design features of the 2022 STVR plan.
Short term variable reward plan
Plan structure50% of STVR is awarded in cash and 50% is deferred into equity in the form of restricted shares (or unhurdled share
rights for the Group Executive based outside of Australia).
One restricted share provides the holder with one ordinary share at no cost subject to trading restrictions until the
time of vesting.
One unhurdled share right entitles the holder to one ordinary share at the time of vesting with no exercise cost.
Dividends are paid on restricted shares from the grant date.
Target and
maximum
opportunity
The target opportunity for the CEO and Group Executives is expressed as a percentage of fixed remuneration. The
target opportunity is set by the Board following recommendation from the Board Remuneration Committee which
considers a range of factors including market competitiveness and the nature of the role.
Target STVRMaximum STVR
0%100%150%
Remuneration at-risk
Westpac’s STVR is designed to award the target opportunity
on delivery of agreed targets for financial and non-financial
measures that support Westpac’s strategic priorities. It is
possible for the outcome to fall below the target amount, and
attract some reward for threshold performance, depending on
performance relative to targets agreed at the beginning of the
year.
Reward for exceptional
performance
There is the possibility to
award up to a maximum of
150% of the STVR target
in circumstances where
exceptional outcomes are
achieved that are also in line
with the Group’s risk appetite
and where an individual
has acted in a manner that
exemplifies the encouraged
behaviours.
Performance
measures
STVR awards are determined based on performance against a scorecard which is designed to align with shareholder
interests by setting stretching measures and seeks to ensure that our customers’ and employees’ needs are met and
appropriate risk settings are maintained.
The STVR Scorecard is split into three sections:
• Values and behaviours assessment: Consideration of the degree to which individuals have demonstrated
Westpac's values of 'Helpful, Ethical, Leading change, Performing and Simple';
• Focus areas: Performance is assessed against financial and non-financial measures that are imperative to
supporting the effective execution of Westpac’s strategy; and
• Modifier: The Board and Board Remuneration Committee recognise that performance measures may not always
appropriately reflect overall performance of the Group. The modifier supports adjustment of the outcome,
upwards or downwards (including to zero), for risk and reputation, people management, environmental, social
and governance considerations and any other matters that the Board feels are not fully reflected in the focus
areas.
Further information on the 2022 Group STVR Scorecard is provided in Section 3.5.
Deferred STVR awards recognise past performance and are subject to continued service and adjustment.
Deferral period50% of STVR is deferred into equity for a period of up to two years, which aligns executive remuneration with
shareholder interests and acts as a retention mechanism. The deferral period also allows the Board to apply
discretion to reduce deferred components where necessary.
Deferred STVR vests in equal portions after one and two years, subject to continued service and adjustment.
Delayed vestingThe Board has discretion (subject to law) to delay vesting of equity-based awards if the individual is under
investigation for misconduct, the subject of, or implicated in legal or regulatory proceedings, if the Board is
considering an adjustment or if otherwise required by law.
Remuneration
adjustments
for prior period
matters
The Board has discretion to adjust current year STVR.
The Board may also adjust unvested deferred STVR downwards, including to zero, if circumstances or information
come to light which mean that in the Board’s view all or part of the award was not appropriate. The Board
will typically apply the adjustment to unvested STVR where an adjustment to current year STVR is considered
insufficient or unavailable.
Clawback applies, to the extent legally permissible and practicable, to deferred STVR awarded in respect of
performance periods commencing on or after 1 October 2019 for up to seven years from the date of grant. Clawback
may occur in circumstances of serious or gross misconduct, fraud, bribery, severe reputational damage, and any
other deliberate, reckless or unlawful conduct that may have a serious adverse impact on Westpac, its customers or
its people which has resulted in dismissal or the Board considers at its discretion would have justified the dismissal
of the relevant executive or where otherwise required by law. It is the Board’s current intention that clawback will
only be considered for relevant conduct that occurred on or after 1 October 2019.
Changes for 2023There are no changes to STVR for 2023.

84WESTPAC GROUP 2022 ANNUAL REPORT
Directors’ report
4.2. Long term variable reward
The table below sets out the key design features of the 2022 LTVR plan awarded in December 2021.
Long term variable reward plan
Plan structureLTVR is awarded in performance share rights which vest after four years subject to the achievement of performance
hurdles, continued service and adjustment. One performance share right entitles the holder to one ordinary share at
the time of vesting with no exercise cost. Dividends are not accumulated on performance share rights.
Award
opportunity
The value of LTVR awarded to the CEO and Group Executives is expressed as a percentage of fixed remuneration.
The value of LTVR is set by the Board following recommendation from the Board Remuneration Committee which
considers a range of factors including market competitiveness and the nature of the role.
The face value of the LTVR opportunity for the CEO for 2022 is 129% of fixed remuneration
1
, and the face value of
LTVR opportunities for the Group Executives range between 137% and 184% of fixed remuneration
1
.
Allocation
methodology
The number of performance share rights each executive receives will be determined by dividing the dollar value
of the LTVR award by the face value of performance share rights. The face value is the five day VWAP up to the
commencement of the performance period (which is 1 October 2021 for the 2022 LTVR grant).
Performance
hurdle
LTVR is subject to a relative TSR performance hurdle that aims to achieve long term growth in shareholder value and
support alignment between executive reward and shareholder interests. Relative TSR is a measure of the total return
delivered to shareholders over the performance period assuming dividends are reinvested, relative to that of peers.
The performance hurdle measures Westpac’s TSR performance against eight Australian financial services companies
using a percentile ranking vesting schedule as outlined below.
Westpac’s TSR performance Indicative vesting percentage
At the 75th percentile or higher100%
Between the median and the 75th percentilePro-rata vesting between 50% and 100%
At the median50%
Below the median0%
The comparator group of companies comprise: AMP Limited, Australia & New Zealand Banking Group Limited, Bank
of Queensland Limited, Bendigo and Adelaide Bank Limited, Commonwealth Bank of Australia, Macquarie Group
Limited, National Australia Bank Limited and Suncorp Group Limited.
Assessment of
performance
outcomes
The relative TSR result is calculated independently to ensure external objectivity before being provided to the Board
to determine the vesting outcome. The Board may exercise discretion in determining the final vesting outcome, for
example where relative TSR performance hurdles have been met but the absolute TSR outcome is negative.
Performance share rights subject to relative TSR performance will be tested against the performance hurdle on
1 October 2025.
No re-testingThere is no re-testing. Awards that have not vested after the measurement period lapse immediately.
Early vestingUnvested awards may vest before a test date if the executive is no longer employed by the Group due to death or
disability (subject to law) or a change in control. Other than a change in control, vesting is generally not subject to
the performance hurdles being met.
Delayed vestingThe Board has discretion (subject to law) to delay vesting of equity-based awards if the individual is under
investigation for misconduct, or the subject of or implicated in legal or regulatory proceedings, if the Board is
considering an adjustment or if otherwise required by law.
Treatment
of awards on
cessation of
employment
The Board has the discretion to determine the treatment of unvested performance share rights where the CEO or a
Group Executive resigns, retires or otherwise leaves the Group before vesting occurs.
The Board may choose to accelerate the vesting of performance share rights or leave the awards on foot for the
remainder of the performance period. In exercising its discretion, the Board will consider relevant circumstances
including those relating to the departure.
The Board also has the ability to adjust the number of performance share rights downwards (including to zero)
in the event of misconduct resulting in significant financial and/or reputational impact to the Group and in other
circumstances considered appropriate. Where an executive acts fraudulently or dishonestly, or is in material breach
of their obligations under the relevant equity plan, unexercised performance share rights (whether vested or
unvested) will be forfeited unless the Board determines otherwise.
Remuneration
adjustments
for prior period
matters
The Board has discretion to adjust LTVR which is awarded on a prospective basis. The Board may adjust unvested
LTVR downwards, including to zero, if circumstances or information come to light which mean that in the Board’s
view all or part of the award was not appropriate. The Board will typically apply the adjustment to unvested LTVR
where an adjustment to current and deferred STVR is considered insufficient or unavailable.
The Board may also determine to apply clawback to LTVR which has previously vested. Clawback applies, to
the extent legally permissible and practicable, to deferred LTVR awarded in respect of performance periods
commencing on or after 1 October 2019 for up to seven years from the date of grant. Clawback may occur in
circumstances of serious or gross misconduct, fraud, bribery, severe reputational damage, and any other deliberate,
reckless or unlawful conduct that may have a serious adverse impact on Westpac, its customers or its people
which has resulted in dismissal or the Board considers at its discretion would have justified the dismissal of the
relevant executive or where otherwise required by law. It is the Board’s current intention that clawback will only be
considered for relevant conduct that occurred on or after 1 October 2019.
Changes for 2023There are no changes to LTVR for 2023.
Other LTVR awards
currently on foot
Test datePerformance hurdlesFurther detail
2020 LTVR award1 October 2023Relative TSR performance against a weighted composite index of 10
comparator companies (100%)
Refer to the 2020
Annual Report
2021 LTVR award1 October 2024Relative TSR performance using a percentile ranking vesting schedule
against eight comparator companies (100%)
Refer to the 2021
Annual Report
1. Includes the increase to the superannuation guarantee rate from 10.0% to 10.5% effective 1 July 2022.

85
WESTPAC GROUP
2022 ANNUAL REPORT
STRATEGIC REVIEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
Directors’ report
5. Remuneration governance
5.1. Group Remuneration Policy and governance
The Group Remuneration Policy sets out the mandatory requirements to be reflected in the design and management
of remuneration arrangements across Westpac. We aim to attract and retained talent employees, by rewarding them
for achieving high performance and delivering superior long term results for customers and shareholders.
The policy supports Westpac’s purpose by requiring the design and management of remuneration to align with
stakeholder interests, support long term financial soundness and encourage prudent risk management. The policy is
supported by an established governance structure, plans and frameworks.
Board
The Board provides strategic guidance for the Group and has oversight of management’s implementation of Westpac’s strategic
initiatives. The Board has accountability for reviewing and approving remuneration for select groups of employees.
Without limiting its role, the Board approves (following recommendation from the Board Remuneration Committee where applicable):
• corporate goals and objectives relevant to the remuneration of the CEO;
• the size of the variable reward pool;
• adjustments to variable remuneration in accordance with the Group Remuneration Policy; and
• remuneration arrangements and variable remuneration outcomes and adjustments in accordance with the Group Remuneration
Policy for the CEO, Group Executives, any other employees who are accountable persons under the Banking Executive
Accountability Regime, any other person specified by APRA and any other person the Board determines.
The Board has the discretion to defer, adjust or withdraw aggregate and individual variable reward.
Further detail is contained in the Board and Committee Charters which are available on Westpac’s website¹.
Board Remuneration Committee
The Board Remuneration Committee assists the Board to discharge its responsibilities by overseeing the design, operation and
monitoring of the remuneration framework of Westpac and its related bodies corporate.
It also oversees the general remuneration practices across the Group in the context that these practices fairly and responsibly reward
individuals engaged by the Group having regard to performance and the remuneration framework and that policies of the Group are
aligned to Westpac’s risk management framework and legal and prudential requirements.
The Board Remuneration Committee reviews and makes recommendations to the Board in relation to:
• the remuneration framework as articulated in the Group Remuneration Policy;
• remuneration arrangements and variable remuneration outcomes and adjustments in accordance with the Group Remuneration
Policy for the individuals and groups outlined above in the description of the Board's role;
• the remuneration arrangements and outcomes of employees of the Westpac Group in accordance with the Group Remuneration
Policy;
• corporate goals and objectives relevant to the remuneration of the CEO; and
• the design and terms of any equity-based plans including plan rules and any applicable performance hurdles.
In carrying out its duties, the Board Remuneration Committee accesses internal personnel (including risk and financial control
personnel) and engages external advisers who are independent of management. The current members of the Board Remuneration
Committee are independent Non-executive Directors.
Further detail is contained in the Board Remuneration Committee Charter which is available on Westpac’s website².
Interaction with other Board CommitteesManagement remuneration oversight
Members of the Board Remuneration Committee are
members of either the Board Risk Committee, the Board
Audit Committee or the Board Nominations & Governance
Committee. The cross membership of those Committees
supports alignment between risk and reward.
The Board Remuneration Committee seeks feedback from
and considers matters raised by other Board Committees
with respect to remuneration outcomes, adjustments to
remuneration in light of relevant matters and alignment of
remuneration with the risk management framework. The Chairs
of the Board Risk Committee and the Board Audit Committee
report periodically to the Board Remuneration Committee.
Divisions consider areas of risk and consider potential
implications for remuneration.
Divisions provide information to the Group Remuneration
Oversight Committee which in turn considers consistency of
remuneration across the Group and provides information to
the Board Remuneration Committee and Board for review and
decision making as appropriate.
Remuneration consultants
In 2022, the Board retained an independent adviser to provide specialist information on executive remuneration and other
remuneration matters. The services were provided directly to the Board Remuneration Committee independent of management.
The Chair of the Board Remuneration Committee oversees the engagement and associated costs. Work undertaken by the
independent adviser included the provision of information relating to the benchmarking of Non-executive Director, CEO and Group
Executive remuneration.
In 2022, no remuneration recommendations, as prescribed under the Corporations Act 2001 (Cth) (Corporations Act) were made by
Board advisers.
1. The Board Charter was updated effective 12 August 2022.
2. The Board Remuneration Committee Charter was updated effective 12 August 2022. Amendments were made to the Board
Remuneration Committee Charter and the Board Charter to align with CPS 511 requirements while allowing for current practice in
relation to approval of remuneration for individuals under CPS/SPS 510 to continue while applicable.

86WESTPAC GROUP 2022 ANNUAL REPORT
Directors’ report
5.2. Executive minimum shareholding requirements and current compliance
The CEO and Group Executives are required to build and maintain a significant Westpac shareholding within five
years of their appointment to strengthen alignment with shareholder interests.
At 30 September 2022, the CEO and Group Executives comply with or are on track to meet the requirements.
The minimum shareholding requirements were reviewed this year in light of market practice and to ensure that
shareholder alignment is supported. Effective from 1 October 2022, the requirements have been revised as set out
below.
Aspect of the
requirements
Previous requirements
to 30 September 2022
Revised requirements
from 1 October 2022
Calculation of
shareholdings
Unvested performance share rights (including LTVR) are
valued at 50% in the calculation of shareholdings.
Unvested performance share rights (including LTVR) will no
longer be included in the calculation of shareholdings.
Requirement
level
CEO: Five times fixed remuneration excluding
superannuation.
Group Executives: $1.2 million.
CEO: Two times fixed remuneration including superannuation.
Group Executives: One times fixed remuneration including
superannuation.
Sale
restrictions
LTVR grants from 2022 onwards are only able to be sold
to meet tax obligations, until the minimum shareholding
requirement is met.
Executives are restricted from selling vested equity, other
than for the purpose of meeting tax obligations, as follows:
• For LTVR awards from 2022 onwards, until the required
shareholding level is met; and
• For STVR awards, where the required shareholding level is
not met at the end of the accumulation period.
Accumulation
period
Within five years of appointment to their role.Within five years of 1 October 2022 (i.e. by 1 October
2027), or appointment to their role, whichever is later. The
Board Remuneration Committee retains discretion to make
adjustments in exceptional circumstances.
The calculation of other shareholdings remains unchanged. This includes recognising:
• shares held in an employee share plan (including deferred STVR);
• shares held outright in the individual’s name either solely or jointly with another person; and
• shares held in a family trust or a self-managed superannuation fund.
5.3. Hedging policy
Participants in Westpac’s equity plans are prohibited from entering, either directly or indirectly, into hedging
arrangements for unvested awards in the STVR and LTVR plans. No financial products may be used to mitigate
the risk associated with these awards. Any attempt to hedge awards will result in forfeiture and the Board may
consider other disciplinary action. These restrictions satisfy the requirements of the Corporations Act which
prohibits hedging of unvested awards.
5.4. Employment agreements
The remuneration and other terms of employment for the CEO and Group Executives are formalised in their
employment agreements. Each agreement provides for the payment of fixed and variable reward, employer
superannuation contributions and other benefits such as death and disablement insurance cover.
The table below details the key terms including termination provisions of the employment agreements for the
CEO and Group Executives.
TermWhoConditions
Duration of agreementCEO and Group Executives• Ongoing until notice given by either party
Notice (by the executive or the Group)
to terminate employment
CEO and Group Executives
• Twelve months
1
Termination payments on termination
without cause
2
CEO and Group Executives• Deferred STVR (which is awarded on a pro rata
basis) and LTVR (which is subject to performance
hurdles) vest according to the applicable equity
plan rules, including being subject to remuneration
adjustments.
Termination for causeCEO and Group Executives • Deferred STVR and LTVR is forfeited, noting the
Board has discretion to determine otherwise
• Occurs immediately for misconduct
• Three months' notice for poor performance
Post-employment restraintsCEO and Group Executives• Twelve month non-solicitation restraint
1. Payment in lieu of notice may in certain circumstances be approved by the Board for some or all of the notice period.
2. The maximum liability for termination benefits for the CEO and Group Executives at 30 September 2022 was $12.0 million (2021:
$14.5 million).

87
WESTPAC GROUP
2022 ANNUAL REPORT
STRATEGIC REVIEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
Directors’ report
6. Non-executive Director remuneration
6.1. Structure and policy
Westpac’s Non-executive Director remuneration strategy is designed to attract and retain experienced, qualified
Board members and provide appropriate remuneration for their time and expertise.
Non-executive Director fees are not related to Westpac’s results. Fees are paid in cash and no discretionary
payments are made for performance. Non-executive Directors are required to build and maintain a minimum
shareholding to align their interests with those of shareholders (refer to Section 6.3 for further details).
The table below sets out the components of Non-executive Director remuneration.
Non-executive Director remuneration
Base feesRelate to service on the Westpac Banking Corporation Board. The base fee for the Chairman covers
all responsibilities, including for Board Committees.
Committee feesAdditional fees are paid to Non-executive Directors (other than the Board Chairman) for chairing or
participating in Board Committees other than the Board Nominations & Governance Committee.
Employer superannuation
contributions
Reflects statutory superannuation contributions which are capped at the superannuation maximum
contributions base as prescribed under the Superannuation Guarantee legislation.
Subsidiary Board and Advisory
Board fees
Relates to service on Subsidiary Boards and Advisory Boards and are paid by the relevant subsidiary.
6.2. Non-executive Director remuneration in 2022
The table below sets out the annual Board and standing Committee fees (inclusive of superannuation). Changes in
Board and Committee composition during the year are set out in the overview of Directors' meetings in Section 9
of the Directors' report.
Non-executive Director fees were reviewed following market benchmarking and a change in Board Committee
structure. A range of Non-executive Director fee reductions became effective in August 2022 as set out in the
table below.
For 2022, $3.71 million (82%) of the fee pool was used. The fee pool of $4.5 million per annum was approved by
shareholders at the 2008 Annual General Meeting and includes employer superannuation contributions.
Base and Committee fees
Annual fee ($)
(inclusive of
superannuation)Comments on changes effective August 2022 ($)
Chairman850,000Reduced from 913,999.
Other Non-executive Directors240,000Reduced from 248,999.
Committee Chair fees
Board Audit Committee70,000Reduced from 70,400.
Board Risk Committee70,000Reduced from 90,000.
Board Remuneration Committee60,000Reduced from 63,800.
Board Technology Committee35,200Committee ceased to operate and the Technology agenda is now
addressed with the Board or other Board Committees as appropriate.
Board Legal, Regulatory & Compliance Committee67,500Committee ceased to operate and the Legal, Regulatory and
Compliance agenda is now addressed with the Board Risk
Committee.
Committee membership fees
Board Audit Committee32,000
Board Risk Committee32,000
Board Remuneration Committee29,000
Board Technology Committee20,000Committee ceased to operate as noted above.
Board Legal, Regulatory & Compliance Committee30,000Committee ceased to operate as noted above.
Other fees
Non-executive Directors may also receive Subsidiary Board and Advisory Board fees or fees for additional duties.
Fees for additional duties are paid at a per meeting rate of $2,000 for Committee members and $4,000 for
Committee Chairs (inclusive of superannuation).
During the reporting period, there were no fees paid to Non-executive Directors for Subsidiary Boards or Advisory
Boards. Peter Nash received additional fees of $12,000 for responsibilities and participation in a Due Diligence
Committee.
6.3. Non-executive Director minimum shareholding requirement
Non-executive Directors are required to build and maintain a holding in Westpac ordinary shares with a value not
less than the Board base fee, within five years of appointment to the Board.
In 2022, the Chairman's minimum shareholding requirement was increased from one times the Non-executive
Director fee to one times the Chairman's fee.
At 30 September 2022, all Non-executive Directors comply with or are on track to meet the requirement.

88WESTPAC GROUP 2022 ANNUAL REPORT
Directors’ report
7. Statutory remuneration details
7.1. Details of Non-executive Director remuneration
The table below details Non-executive Director remuneration.
Short-term benefits
Post-employment
benefits
Westpac Banking
Corporation Board
fees
1
Additional,
Subsidiary and
Advisory Board
Fees
Non-
monetary
benefits
2
SuperannuationTotal
Name$$$$$
Current Non-executive Directors
John McFarlane, Chairman
2022884,530 - 8,29824,286917,114
2021893,423 - 8,35522,573924,351
Nerida Caesar
2022268,054 - - 23,637291,691
2021276,058 - - 22,290298,348
Audette Exel AO
2022273,871 - - 24,064297,935
202123,438 - - 2,34425,782
Michael Hawker AM
2022286,694 - - 24,039310,733
2021242,854 - - 19,692262,546
Chris Lynch
2022286,171 - - 24,111310,282
2021290,111 - - 22,296312,407
Peter Marriott
2022387,409 - - 24,003411,412
2021398,527 - - 22,346420,873
Peter Nash
2022332,140 12,000 - 24,079368,219
2021377,525 - - 22,273399,798
Nora Scheinkestel
2022312,989 - - 24,192337,181
2021169,400 - - 13,851183,251
Margaret Seale
2022344,088 - - 23,987368,075
2021320,110 - - 22,427342,537
Former Non-executive Directors
Craig Dunn
3
202265,274 - - 5,27570,549
2021322,034 - - 22,311344,345
Steven Harker
3
202221,877 - - 2,18824,065
2021312,419 - - 22,351334,770
Total fees
20223,463,097 12,000 8,298223,8613,707,256
2021
4
3,690,139 - 8,355219,7083,918,202
1. Includes fees paid to the Chairman and members of Board Committees.
2. Non-monetary benefits are determined on the basis of the cost to the Group including associated fringe benefits tax (FBT) where
applicable and includes bank funded car parking.
3. The information relates to the period the individual was a KMP. Refer to Section 1 for further details.
4. Total fees for 2021 shown as reported in the 2021 Annual Report.

89
WESTPAC GROUP
2022 ANNUAL REPORT
STRATEGIC REVIEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
Directors’ report
7.2. Remuneration details – Chief Executive Officer and Group Executives
The table below details remuneration for the CEO and Group Executives prepared and audited in accordance with
Australian accounting standards.
Short term benefits
Post-
employment
benefits
Other
long term
benefitsShare-based payments
Fixed
remuneration
1
Cash
STVR
award
2
Non-
monetary
benefits
3
Other
short term
benefits
4
Superannuation
benefits
5
Long
service
leave
Restricted
shares
6
Share
rights
7
Total
8
$$$$$$$$$
Managing Director & Chief Executive Officer
Peter King, Managing Director & Chief Executive Officer
20222,402,724975,00031,649 - 42,92775,688755,346734,9345,018,268
20212,402,786 840,000 30,548 - 46,33236,851404,355441,5814,202,453
Group Executives
Scott Collary, Group Executive, Customer Services & Technology
20221,204,267520,50070,86368,38433,37818,669937,653318,4773,172,191
20211,138,524 444,500 266,054 711,616 30,43216,796657,896176,0633,441,881
Chris de Bruin, Chief Executive, Consumer & Business Banking
20221,313,505546,00061,374169,09030,38319,802883,662361,3543,385,170
2021966,699 467,500 172,286 480,570 22,03214,331548,716163,1712,835,305
Carolyn McCann, Group Executive, Corporate Services
20221,049,737324,5004,765 - 29,04828,997253,793308,0401,998,880
2021941,852 285,000 4,053 - 26,92113,669190,488133,3531,595,336
Catherine McGrath, Chief Executive Officer, Westpac New Zealand
9
2022708,147318,9749,159 - 101,654 - - 195,2781,333,212
2021------------------------------------------------------- Not a KMP in 2021 -------------------------------------------------------
Anthony Miller, Chief Executive, Westpac Institutional Bank
20221,162,351416,5003,994815,36934,89117,9081,061,788310,8733,823,674
20211,121,762 392,000 1,881 2,004,445 31,56116,0101,203,527181,5394,952,725
Christine Parker, Group Executive, Human Resources
2022957,683356,000 2,806 - 29,764(12,784)281,419398,9912,013,879
2021971,685 320,000 2,908 - 28,11515,161185,986222,2801,746,135
Michael Rowland, Chief Financial Officer
20221,230,296394,5003,994 - 31,48919,957332,668252,7022,265,606
20211,241,835 405,000 64,765 - 27,90918,193168,550155,6522,081,904
Jason Yetton, Chief Executive, Specialist Businesses
20221,195,337527,500 2,806 - 34,70917,869476,229403,1412,657,591
20211,175,416 617,000 2,908 - 33,09517,803256,778283,2242,386,224
Ryan Zanin, Chief Risk Officer
9
2022814,140228,000147,076328,925 2,510 11,37856,39448,6841,637,107
2021------------------------------------------------------- Not a KMP in 2021 -------------------------------------------------------
Former Group Executives
Simon Power, Acting Chief Executive Officer, Westpac New Zealand
7, 9
202282,463 - 2,558 - 6,417 - - 28,039119,477
2021214,774 82,066 404 - 21,059 - - 76,754395,057
David Stephen, Chief Risk Officer
9,10,11
20221,371,134148,5005,2981,330,45430,141(81,893)416,4611,890,7665,110,861
20211,848,612 439,000 8,804 - 37,56427,356543,067544,6923,449,095
Les Vance, Group Executive, Financial Crime, Compliance & Conduct
9,11
2022580,130158,500 2,688 913,24222,7768,933467,522941,0953,094,886
2021985,785
278,500 4,070
- 34,34133,102575,260150,0102,061,068

90WESTPAC GROUP 2022 ANNUAL REPORT
Directors’ report
1. Fixed remuneration is the total cost of salary, salary sacrificed benefits (including motor vehicles, parking and associated FBT where
applicable) and an accrual for annual leave.
2. The cash STVR award is typically paid in December following the end of the financial year.
3. Non-monetary benefits are determined on the basis of the cost to the Group (including associated FBT, where applicable) and
include annual health checks, provision of taxation advice, bank funded car parking, relocation costs, living away from home expenses
and allowances. Cash relocation allowances are recognised as an expense from the commencement date as a KMP to the end of a
clawback period.
4. Includes payments on termination of employment for former KMP or other contracted amounts for current KMP. The cash portion of
buy out arrangements is recognised as an expense from commencement date as a KMP to the end of the vesting period. For Ryan
Zanin, the cash buy out arrangement was agreed on 30 August 2022, 0% of this award was paid in 2022 and portions of the award are
due to be paid between March 2023 and December 2024.
5. The CEO and Group Executives are provided with life insurance cover under the Westpac Group Plan at no cost. Superannuation
benefits have been calculated consistent with AASB 119 Employee Benefits.
6. The amortisation approach for restricted shares commences from the service period when the award was earned through to the
end of the vesting period. A portion of the restricted shares held by Scott Collary, Chris de Bruin, Anthony Miller and David Stephen
represent an allocation made to compensate them for remuneration foregone from their previous employer on resignation to join
Westpac. The restricted shares replicate the vesting periods, and applicable conditions of the equity foregone.
7. Equity-settled remuneration is based on the amortisation over the performance and vesting period (normally two to four years). It
is calculated using the fair value at the grant date of hurdled and unhurdled share rights granted during the four years ended 30
September 2022. Fair value is calculated at grant date consistent with external valuation using the invitation opt out date. For Simon
Power, the equity-settled remuneration for 2021 has been revised to include amortisation of 2021 STVR awards ($12,574) which relate
to a service period prior to commencement of his KMP period, and superannuation for 2021 has increased by $8,207 to include
superannuation relating to the 2021 cash STVR. Details of prior year grants are disclosed in previous Annual Reports. The 2022 value
for Catherine McGrath includes 63% attributed to deferred STVR awards.
8. The percentage of total remuneration which is performance related (i.e. cash STVR awards plus share-based payments) was: Peter
King 49%, Scott Collary 56%, Chris De Bruin 53%, Carolyn McCann 44%, Catherine McGrath 39%, Anthony Miller 47%, Christine Parker
51%, Michael Rowland 43%, Jason Yetton 53%, Ryan Zanin 20%, Simon Power 23%, David Stephen 48% and Les Vance 51%. The
percentage of total remuneration delivered in the form of options or share rights was: Peter King 15%, Scott Collary 10%, Chris De Bruin
11%, Carolyn McCann 15%, Catherine McGrath 15%, Anthony Miller 8%, Christine Parker 20%, Michael Rowland 11%, Jason Yetton 15%,
Ryan Zanin 3%, Simon Power 23%, David Stephen 37% and Les Vance 30%.
9. The information relates to the period the individual was a KMP. Refer to Section 1 for further details.
10. Fixed remuneration for David Stephen includes payments made or to be made during a gardening leave period where, in line with
contractual requirements, he continued to receive cash salary and superannuation.
11. The share-based payment values for David Stephen and Les Vance reflect the accruals for unvested equity up to the end of each
performance period. While the full value is being accrued for all unvested equity, the awards may or may not vest subject to the
relevant performance hurdles.

91
WESTPAC GROUP
2022 ANNUAL REPORT
STRATEGIC REVIEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
Directors’ report
7.3. Movement in equity-settled instruments during the year
The table below shows the movements in the number and value of equity instruments for the CEO and Group
Executives under the relevant plan during 2022.
NameType of equity-based instrument
Number
granted
1
Number
vested
2
Number
exercised
3
Value
granted
4

$
Value
exercised
5

$
Value
forfeited or
lapsed
5

$
Managing Director & Chief Executive Officer
Peter KingShares under Restricted Share Plan40,152 6,649 - 839,980 - -
Performance share rights127,401 - - 740,200 - 2,078,604
Group Executives
-
Scott CollaryShares under Restricted Share Plan21,247 - - 444,487 - -
Performance share rights88,200 - - 513,324 - -
Chris de BruinShares under Restricted Share Plan22,347 10,834 - 467,499 - -
Performance share rights94,080 - - 547,546 - -
Carolyn McCannShares under Restricted Share Plan13,623 8,489 - 284,993 - -
Performance share rights52,340 - - 313,815 - 324,063
Catherine
McGrath
6
Unhurdled share rights- - - - - -
Performance share rights56,266 - - 327,468 - -
Anthony MillerShares under Restricted Share Plan18,738 44,672 - 391,999 - -
Performance share rights84,280 - - 490,510 - -
Christine ParkerShares under Restricted Share Plan15,296 6,415 - 319,992 - -
Performance share rights61,230 - - 356,359 - 1,656,351
Michael RowlandShares under Restricted Share Plan19,359 - - 404,990 - -
Performance share rights68,208 - - 396,971 - -
Jason YettonShares under Restricted Share Plan29,493 - - 616,994 - -
Performance share rights84,280 - - 490,510 - -
Ryan Zanin
6
Shares under Restricted Share Plan- - - - - -
Performance share rights40,934 - - 381,505 - -
Former Group Executives
Simon Power
6
Unhurdled share rights- 9,962 - - - -
Performance share rights- - - - - -
David Stephen
6
Shares under Restricted Share Plan20,984 16,042 - 438,985 - -
Performance share rights100,328 - - 583,909 - 4,871,746
Les Vance
6
Shares under Restricted Share Plan13,312 23,553 - 278,487 - -
Performance share rights53,116 - - 309,135 - -
1. Performance share rights granted to the CEO were approved by shareholders at the 2020 and 2021 Annual General Meetings under
ASX Listing Rule 10.14. No performance options were granted in 2022. Any deferred STVR awards in the form of restricted shares
(or unhurdled share rights for KMP in New Zealand) are awarded in December each year. 2021 deferred STVR was awarded on 15
December 2021 for the Group Executives and 16 December 2021 for the CEO, the vesting period commenced on 1 October 2021, 50%
of the award will vest on 1 October 2022 and 50% will vest on 1 October 2023 (subject to continued service and adjustment).
2. No hurdled share rights granted in 2017 vested in October 2021 when assessed against the relative TSR and cash ROE performance
hurdles. 100% of the deferred STVR due to vest in 2022 vested. For Chris de Bruin, all of the restricted shares that vested were in
relation to a buy out award which represents 18% of the total number of shares allocated for that award. For Anthony Miller, all of the
restricted shares that vested were in relation to a buy out award which represents 36% of the total number of shares allocated for that
award. For David Stephen, 6,552 of 16,042 restricted shares that vested were in relation to a buy out award which represents 5% of the
total number of shares allocated for that award.
3. Vested share rights granted after July 2015 may be exercised up to a maximum of 15 years from the commencement date of their
performance period. The exercise price for share rights is zero.
4. For performance share rights, the value granted represents the number of securities granted multiplied by the fair value per
instrument as set out in the table in the sub-section titled ‘Fair value of LTVR awards made during the year’ below. For restricted
shares, the value granted represents the number of ordinary shares granted multiplied by the five day VWAP of a Westpac ordinary
share on the date the shares were granted ($20.92). These values, which represent the full value of the equity-based awards made to
the CEO and Group Executives in 2022, do not reconcile with the amount shown in the table in Section 7.2 which shows the amount
amortised in the current year of equity awards over the performance year the award was earned and the applicable vesting period.
The minimum total value of the grants for future financial years is zero and an estimate of the maximum possible total value in future
financial years is the fair value, as shown above.
5. The value of each share right exercised, forfeited or lapsed is calculated based on the five day VWAP of a Westpac ordinary share on
the date of exercise (or forfeiture or lapse). The overall values reflect forfeitures or lapses as a result of a failure to meet performance
conditions or resignation.
6. The information relates to the period the individual was a KMP. Refer to Section 1 for further details.

92WESTPAC GROUP 2022 ANNUAL REPORT
Directors’ report
Fair value of LTVR awards made during the year
In accordance with AASB 2 Share-based Payment, the table below provides a summary of the fair value of LTVR
awards granted to the CEO and Group Executives in December 2021
1
. LTVR awards will only vest if performance
hurdles are achieved and service conditions are met in future years.
Plan nameGranted to
Performance
hurdleGrant date
Commencement
dateTest dateExpiry
Fair value
per instrument
2
Westpac
LTVR plan
CEO and Group
Executives
Relative
TSR
16 December 2021
for the CEO
15 December 2021
for the Group
Executives
1 October
2021
1 October
2025
1 October
2036
$5.81 for the CEO
$5.82 for the Group
Executives
The allocation methodology differs from the fair value used for accounting purposes. The allocation is determined
by dividing the dollar value of the LTVR award by the face value of performance share rights. The face value is the
five day VWAP up to the commencement of the performance period. Refer to Section 4.2 for further detail.
7.4. Details of Westpac equity holdings of Non-executive Directors
The table below sets out details of relevant interests in Westpac ordinary shares held by Non-executive Directors
(including their related parties) during the year ended 30 September 2022
3
.
Number held at
start of the year
Changes
during the year
Number held at
end of the year
Current Non-executive Directors
John McFarlane40,000 10,000 50,000
Nerida Caesar13,583 - 13,583
Audette Exel AO4,000 6,898 10,898
Michael Hawker AM20,854 13,180 34,034
Chris Lynch
4
13,090 - 13,090
Peter Marriott
5
40,311 - 40,311
Peter Nash15,360 - 15,360
Nora Scheinkestel5,172 4,537 9,709
Margaret Seale
6
26,158 - 26,158
Former Non-executive Directors
Craig Dunn
7
15,009 - n/a
Steven Harker
7
13,170-n/a
1. LTVR awards were also granted to Carolyn McCann on 4 March 2022 with a fair value of $8.05 and Ryan Zanin on 17 May 2022 with a
fair value of $9.32. These grants have a commencement date of 1 October 2021, a test date of 1 October 2025 and an expiry date of 1
October 2036.
2. The fair values of performance share rights granted during the year have been independently calculated at their respective grant
dates based on the requirements of AASB 2 Share-based Payment by PFS Consulting. The fair value of performance share rights
with hurdles based on TSR performance relative to a group of comparator companies takes into account the average TSR outcome
determined using a Monte Carlo simulation pricing model.
3. Other than as disclosed below, no share interests include non-beneficially held shares.
4. In addition to holding ordinary shares, Chris Lynch and his related parties held interests in 1137 Westpac Capital Notes 5 at year end.
5. In addition to holding ordinary shares, Peter Marriott and his related parties held interests in 563 Westpac Capital Notes 2 at year end.
6. In addition to holding ordinary shares, Margaret Seale and her related parties held interests in 100 Westpac Capital Notes 7 at year end.
7. The information relates to the period the individual was a KMP. Refer to Section 1 for further details.

93
WESTPAC GROUP
2022 ANNUAL REPORT
STRATEGIC REVIEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
Directors’ report
7.5. Details of Westpac equity holdings of Executive Key Management Personnel
The table below details Westpac equity held (and movement in that equity) by the CEO and Group Executives
(including their related parties) for the year ended 30 September 2022
1
.
Name
Type of equity-based
instrument
Number
held at
start of
the year
Number
granted during
the year as
remuneration
Received
on exercise
and/or
exercised
during the
year
Number
forfeited
or lapsed
during the
year
2
Other
changes
during the
year
Number held
at end of the
year
Number
vested and
exercisable
at end of the
year
Managing Director & Chief Executive Officer
Peter King Ordinary shares131,886 40,152 - - - 172,038 -
Performance share rights460,630 127,401 - (80,062)- 507,969 -
Group Executives
Scott CollaryOrdinary shares75,088 21,247 - - - 96,335 -
Performance share rights120,614 88,200 - - - 208,814 -
Chris de BruinOrdinary shares61,046 22,347 - - - 83,393 -
Performance share rights100,676 94,080 - - - 194,756 -
Carolyn McCannOrdinary shares67,175 13,623 - - - 80,798 -
Performance share rights174,136 52,340 - (12,482)- 213,994 -
Catherine
McGrath
3
Ordinary shares- - - - - - -
Unhurdled share rights- - - - - - -
Performance share rights- 56,266 - - - 56,266 -
Anthony MillerOrdinary shares123,295 18,738 - - - 142,033 -
Performance share rights120,492 84,280 - - - 204,772 -
Christine ParkerOrdinary shares29,457 15,296 - - (4,500)40,253 -
Performance share rights280,816 61,230 - (63,798)- 278,248 -
Michael RowlandOrdinary shares- 19,359 - - - 19,359 -
Performance share rights99,415 68,208 - - - 167,623 -
Jason YettonOrdinary shares- 29,493 - - - 29,493 -
Performance share rights180,201 84,280 - - - 264,481 -
Ryan Zanin
3
Ordinary shares- - - - - - -
Performance share rights- 40,934 - - - 40,934 -
Former Group Executives
Simon Power
3
Ordinary shares236 - - - - n/an/a
Unhurdled share rights38,122 - - - - n/an/a
Performance share rights- - - - - n/an/a
David Stephen
3
Ordinary shares154,910 20,984 - - - n/an/a
Performance share rights514,052 100,328 - (187,646)- n/an/a
Les Vance
3
Ordinary shares81,752 13,312 - - (35,070)n/an/a
Performance share rights98,441 53,116 - - - n/an/a
1. The highest number of shares held by an individual in the table is 0.0049% of total Westpac ordinary shares outstanding as at
30 September 2022.
2. Forfeitures or lapses during the year are as a result of a failure to meet performance conditions.
3. The information relates to the period the individual was a KMP. Refer to Section 1 for further details.

94WESTPAC GROUP 2022 ANNUAL REPORT
Directors’ report
7.6. Loans to Non-executive Directors and Executive Key Management Personnel
Financial instrument transactions that occurred during the financial year between Non-executive Directors, the
CEO or Group Executives and the Group are in the ordinary course of business (including interest and collateral).
These transactions are provided at arms-length.
The table below details loans to Non-executive Directors, the CEO and Group Executives (including their related
parties) of the Group.
Balance at start of
the year
$
Interest paid and
payable for the year
$
Interest not charged
during the year
$
Balance at end of
the year
$
Number in Group at
end of the year
Non-executive Directors9,894,987139,143- 7,136,7504
CEO and Group Executives19,025,842407,723- 14,083,0096
Total28,920,829546,866- 21,219,75910
The table below details KMP (including their related parties) with loans above $100,000 during 2022.
Balance at start of
the year
$
Interest paid and
payable for the year
$
Interest not charged
during the year
$
Balance at end of
the year
$
Highest indebtedness
during the year
$
Non-executive Directors
John McFarlane- 22,181 - 3,283,970 3,344,454
Chris Lynch 3,931,965 74,112 - 2,832,121 3,931,965
Peter Nash 367,702 16,025 - 400,217 519,942
Margaret Seale595,920 16,533 - 620,442 622,217
Former Non-executive Directors
Steven Harker¹4,999,400 10,292- n/a5,007,127
CEO and Group Executives
Peter King1,158,00031,167- 1,158,0001,161,176
Scott Collary2,465,12649,224- 2,393,1102,469,673
Carolyn McCann605,60112,780- 580,146641,986
Anthony Miller2,637,91413,471- 2,575,0862,639,829
Christine Parker5,502,679164,019- 5,432,6675,434,991
Jason Yetton 2,850,00078,025- 1,944,0002,831,932
Former Group Executives
Simon Power
1
1,161,7124,873- n/a1,127,254
Les Vance
1
2,644,81054,164 - n/a11,470,492
1. The information relates to the period the individual was a KMP. Refer to Section 1 for further details.

WESTPAC GROUP
2022 ANNUAL REPORT
95
STRATEGIC REVIEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
Directors’ report
Directors’ report
11. Auditor
a) Auditor’s independence declaration
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act
is below:
PricewaterhouseCoopers, ABN 52 780 433 757
One International Towers Sydney, Watermans Quay, Barangaroo, GPO BOX 2650, SYDNEY NSW 2001
T: +61 2 8266 0000, F: +61 2 8266 9999, www.pwc.com.au
Liability limited by a scheme approved under Professional Standards Legislation.

Auditor’s Independence Declaration
As lead auditor for the audit of Westpac Banking Corporation for the year ended 30 September 2022, I
declare that to the best of my knowledge and belief, there have been:
(a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
(b) no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Westpac Banking Corporation and the entities it controlled during the
period.

CJ Heath Sydney
Partner
PricewaterhouseCoopers

6 November 2022

WESTPAC GROUP 2022 ANNUAL REPORT 96
Directors’ report
b) Non-audit services
We may decide to engage PwC on assignments additional to their statutory audit duties where their expertise or
experience with Westpac or a controlled entity is important.
Details of the non-audit service amounts paid or payable to PwC for non-audit services provided during the 2021
and 2022 financial years are set out in Note 34 to the financial statements.
PwC also provides audit and non-audit services to non-consolidated entities, non-consolidated trusts of which a
Westpac Group entity is trustee, manager or responsible entity and non-consolidated superannuation funds or
pension funds. The fees in respect of these services were approximately $9.3 million in total (2021: $9.6 million).
PwC may also provide audit and non-audit services to other entities in which Westpac holds a minority interest
and which are not consolidated. Westpac is not aware of the amount of any fees paid to PwC by those entities.
Westpac has a policy on engaging PwC, details of which are set out in its Corporate Governance Statement in the
section ‘‘Engagement of the external auditor’.
The Board has considered the position and, in accordance with the advice received from the Board Audit
Committee, is satisfied that the provision of the non-audit services during 2022 by PwC is compatible with the
general standard of independence for auditors imposed by the Corporations Act. The Directors are satisfied, in
accordance with advice received from the Board Audit Committee, that the provision of non-audit services by
PwC, as set out above, did not compromise the auditor independence requirements of the Corporations Act for
the following reasons:
• all non-audit services provided by PwC for the year have been reviewed by the Board Audit Committee, which
is of the view that they do not impact the impartiality and objectivity of PwC; and
• based on Board quarterly independence declarations made by PwC to the Board Audit Committee during
the year, none of the services undermine the general principles relating to auditor independence including
reviewing or auditing PwC’s own work, acting in a management or a decision-making capacity for the
company, acting as advocate for the company or jointly sharing economic risk and rewards.
12. Responsibility statement
The Directors of Westpac Banking Corporation confirm that to the best of their knowledge:
• the consolidated financial statements for the financial year ended 30 September 2022, which have been
prepared in accordance with the accounting policies described in Note 1 to the consolidated financial
statements, being in accordance with Australian Accounting Standards (AAS), give a true and fair view of the
assets, liabilities, financial position and profit of the Group; and
• the Annual Report from the section entitled ‘About Westpac’ to and including the section entitled ‘Other
Westpac business information’ includes a fair review of the information required by the Disclosure Guidance
and Transparency Rules 4.1.8R to 4.1.11R of the United Kingdom Financial Conduct Authority, together with a
description of the principal risks and uncertainties faced by the Group.
The Directors’ Report is signed in accordance with a resolution of the Board of Directors.

John McFarlane Peter King
Chairman Managing Director & Chief Executive Officer
6 November 2022 6 November 2022

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Information on Westpac
Significant developments
Westpac significant developments - Australia
Off-market buy-back
We completed a $3.5 billion off-market share buy-back
on 14 February 2022, with approximately 167.5 million
Westpac shares, equating to approximately 4.6% of the
shares on issue at that time, being bought back at the
buy-back price of $20.90 per Westpac share.
Ambition to become a Net-Zero, Climate Resilient Bank
In 2022, we released our fifth Climate Change Position
Statement and Action Plan, defining our ambition to
become a net-zero, climate resilient bank. We also
joined the Net-Zero Banking Alliance (NZBA) and
continued the Group’s work on aligning our lending
portfolios with a 1.5°C-aligned pathway to net-zero
emissions by 2050. In accordance with our NZBA
commitment, we set our first series of financed
emissions 2030 sector targets. We are continuing
work to operationalise our targets, and where data
and methodologies allow, aim to develop targets for
other sectors in our financing activities that have high
greenhouse gas emissions or emissions intensity. We
will review and update our targets, methodologies and
pathways as climate science advances, requirements
and opportunities for transition and resilience evolve,
and as guidance and policy develop. We will disclose
progress against our 2030 targets and other updates
as part of our annual reporting process. Further
information is set out in the ‘Climate change’ and ‘Risk
factors’ sections.
Changes to structure and executive team
In February 2022, we announced changes to the
Group’s operating structure and executive team as
part of initiatives to simplify the Group’s operations
and improve accountability. The restructure involved
moving certain services to the lines of business they
support, the creation of two shared services segments
designed to achieve benefits of scale across common
processes, and a leaner Group head office responsible
for setting strategy, policies and frameworks for the
Group. We also confirmed the restructure of our
management team, including combination of the roles
of Chief Risk Officer and Group Executive, Financial
Crime, Compliance and Conduct, with Ryan Zanin
commencing as Chief Risk Officer on 29 April 2022.
In addition, on 29 April 2022, Yianna Papanikolaou
commenced as the Chief Transformation Officer,
reporting to the CEO. The role has responsibility
for major change and investment programs and
accountability for the Customer Outcomes and Risk
Excellence (CORE) program.
Exit of businesses within Specialist Businesses
segment
Following a review in 2020, we determined we would
look to exit businesses in the Specialist Businesses
segment over time. Since then, a number of these
businesses have been sold, including the following
which completed in 2022:
• Sale of Westpac’s motor vehicle dealer finance and
novated leasing business;
• Sale of Westpac Life-NZ- Limited to Fidelity Life
Assurance Company Limited and
• Sale of Westpac Life Insurance Services Limited
(now known as TAL Life Insurance Services Limited)
(WLIS) to TAL Dai-ichi Life Australia Pty Limited.
The following transactions were announced during
2022, but have not yet completed:
• Transfer of the members and benefits of BT Funds
Management Limited’s personal and corporate
(non-platform) superannuation products, via a
successor fund transfer, to Mercer Super Trust; and
• Sale of Westpac’s Advance Asset Management
business to Mercer (Australia) Pty Ltd.
These transactions are expected to complete in 2023
Further detail in relation to these transactions is
available in Note 38 to the financial statements.
Work continues on preparing the Group’s Platforms
business for sale. Following the termination of the sale
agreements with Kina Bank for the sale of the Group’s
Pacific businesses, and subsequent consideration of
alternative options, we consider it is unlikely we will
be in a position to sell the Pacific businesses in the
short to medium term. We will continue to support our
customers in the region.
Approvals may be required from regulators or other
stakeholders in order to divest businesses and assets,
and there is a risk that these approvals may not be
received or that the purchaser or transferee (as the
case may be) do not complete these transactions for
other reasons. Some of the announced or completed
transactions have involved the giving of warranties
and indemnities in favour of the counterparty for
certain conduct matters, remediation, and other risks,
including in relation to the previously disclosed review
of premium increases on certain life insurance products
issued by our former subsidiary WLIS.
Further information is set out in ‘Risk factors’ and Note
26 to the financial statements.
Regulatory and risk developments
Enforceable undertaking on risk governance
remediation, Integrated Plan and CORE program
Our CORE program is delivering the Integrated Plan
required by the enforceable undertaking (EU) entered
into with APRA in December 2020 in relation to our
risk governance remediation and supporting the
strengthening of our risk governance, accountability
and culture. Execution of the CORE program is ongoing
and over 60% of the activities in the Integrated Plan
have been assessed as complete and effective by the
Independent Reviewer.
Promontory Australia, as the appointed Independent
Reviewer, provides quarterly reports to APRA on
our compliance with the EU and Integrated Plan.
Promontory Australia has provided seven reports to
APRA so far, with its next report due in January 2023.
These reports are published on our website every
six months at https://www.westpac.com.au/about-
westpac/media/core/.
Information on Westpac

WESTPAC GROUP 2022 ANNUAL REPORT 98
Information on Westpac
Risk management
We are continuing to invest in strengthening our end-to-
end management of risk. A range of shortcomings and
areas for improvement in our risk governance have been
highlighted in current and historical reviews, including
embedding of our risk management framework, policies
and systems, clarity of the three lines of defence model,
regulatory reporting, data quality and management,
product governance, prudential compliance
management and associated control frameworks, our
risk capabilities, and business continuity management.
We have a number of risks currently considered outside
of risk appetite or that do not meet the expectations
of regulators, and we have taken steps to seek to bring
these risks into appetite.
The CORE program, discussed above, is designed to
deliver improvements in many of these areas, including
embedding a more proactive risk culture, embedding
clear risk management accountabilities, improving
the control environment, and uplifting risk awareness,
capability and capacity for ongoing risk management.
Other areas of improvement such as operational risk,
credit risk, sustainability risk, climate risk, compliance
and conduct, financial crime, stress testing and
model risk management are being addressed through
investment in a number of areas, which may include
subject-matter expertise, process and technology
improvements.
Further information about risk management is set out
in ‘Risk management’ in the Strategic Review.
APRA removes Westpac’s liquidity add-on
On 1 September 2022, APRA announced that it had
removed the 10% add-on applied to the net cash
outflows included in the calculation of our Liquidity
Coverage Ratio (LCR). The removal of the add-on
increased our LCR by approximately 13 percentage
points as at 1 September 2022.
APRA phasing out reliance on Committed Liquidity
Facility
On 10 September 2021, APRA announced it expects
authorised deposit-taking institutions (ADIs) to
reduce their Committed Liquidity Facility (CLF)
usage to zero in stages. We have complied with
APRA’s announcement to date. In line with APRA’s
expectations, we expect to reduce our CLF allocation
to zero by 1 January 2023. To replace the reduction
in the CLF, we have increased our holdings of High
Quality Liquid Assets. As at 30 September 2022, our
CLF allocation was $9.25 billion.
Financial crime
We continue to make progress on improving our
financial crime risk management program, as we
implement a significant multi-year program of work
(including AML/CTF, Sanctions, Anti-Bribery and
Corruption, Foreign Account Tax Compliance Act
(FATCA) and Common Reporting Standards (CRS)).
Through this work, we continue to undertake activities
to remediate and improve our financial crime controls
in multiple areas including initial, enhanced and
ongoing customer due diligence and associated record
keeping, upgrading customer and payment screening
and transaction monitoring solutions, improving
Electronic Funds Transfer Instruction processes,
establishing data reconciliations and checks to ensure
the completeness of data feeding into our financial
crime systems, and improving regulatory reporting
including in relation to International Funds Transfer
Instructions, Threshold Transaction Reports, Suspicious
Matter Reports (including ‘tipping off’ controls), and
FATCA and CRS reporting and equivalent reports in
jurisdictions outside Australia.
With increased focus on financial crime, further issues
requiring attention have been and may be identified,
and we have continued to liaise with AUSTRAC, and
local regulators in jurisdictions outside Australia, as
appropriate. Details about the consequences of failing
to comply with financial crime obligations are set out in
‘Risk factors’.
APRA capital requirements
APRA announcements on capital
Information relating to APRA announcements on
capital is set out in Note 28 to the financial statements.
Operational risk capital overlays
The following additional capital overlays are currently
applied by APRA to our operational risk capital
requirement:
• $500 million in response to Westpac’s Culture,
Governance and Accountability self-assessment.
The overlay has applied from 30 September 2019.
• $500 million in response to the magnitude and
nature of issues that were the subject of the
AUSTRAC proceedings. The overlay has applied
from 31 December 2019.
These overlays have been applied through an increase
in risk-weighted assets. The impact on our Level
2 common equity Tier 1 (CET1) capital ratio at 30
September 2022 was a reduction of 29 basis points.
Additional loss absorbing capacity
On 2 December 2021, APRA announced a requirement
for D-SIBs (including Westpac) to increase their total
capital requirements by 4.5 percentage points of RWA
under the current capital adequacy framework to be
met by 1 January 2026. The additional total capital is
expected to be met through additional Tier 2 Capital. In
our funding, this increase in total capital is likely to be
offset by a decrease in long-term wholesale funding.
Westpac significant developments - New Zealand
Reviews required under section 95 of the Banking
(Prudential Supervision) Act 1989
On 23 March 2021, the Reserve Bank of New Zealand
(RBNZ) issued two notices to Westpac New Zealand
Limited (WNZL) under section 95 of the Banking
(Prudential Supervision) Act 1989 (NZ) requiring WNZL
to supply two external reviews to the RBNZ (the Risk
Governance Review and the Liquidity Review). These
reviews only applied to WNZL and not to Westpac in
Australia or its New Zealand branch.

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The Risk Governance Review related to the
effectiveness of WNZL’s risk governance, with a focus
on the role played by the WNZL Board. This review was
undertaken by Oliver Wyman Limited (Oliver Wyman)
and completed in November 2021. The review identified
deficiencies in WNZL’s risk governance practices
and operations which impacted the WNZL Board’s
effectiveness in governing risk.
WNZL has a programme of work underway to address
the issues raised, which is being overseen by the WNZL
Board. WNZL has engaged Oliver Wyman to provide
independent assurance that WNZL’s remediation has
been delivered to an appropriate standard. WNZL is
making good progress with this programme of work.
The Liquidity Review related to the effectiveness of
WNZL’s actions to improve liquidity risk management
and the associated risk culture. This followed previously
identified breaches of the RBNZ’s Liquidity Policy
(BS13) and non-compliances with condition of
registration 14 identified through the RBNZ’s liquidity
thematic review. This review was undertaken by
Deloitte Touche Tohmatsu (Deloitte) and completed in
May 2022. The review found that WNZL had improved
its liquidity control environment and had made
improvements to its associated risk culture. The review
did not identify any material control gaps or issues and
made some recommendations for improvement, which
are being implemented as part of WNZL’s continuous
improvement activity.
From 31 March 2021, the RBNZ amended WNZL’s
conditions of registration, requiring WNZL to discount
the value of its liquid assets by approximately 14%.
From 15 August 2022, the RBNZ reduced the overlay
to approximately 7%, which at 30 September 2022 was
NZ$1.489 billion. The overlay will remain in place until
the RBNZ is satisfied that control assurance work has
been completed.
Technology programme
Separate to the section 95 reviews outlined above,
WNZL has also committed to the RBNZ and Financial
Markets Authority (FMA) to address its technology
issues, and engaged Deloitte to monitor progress.
While work has been underway to address these issues
for some time, more work is required to meet WNZL’s
expectations and those of the regulators.
Reserve Bank’s Outsourcing Policy
Condition of registration 22 requires WNZL to comply
with those provisions of the RBNZ’s Outsourcing Policy
that are currently in force, and to be fully compliant
with all provisions of the policy by 1 October 2023.
WNZL is continuing to undertake a large-scale, multi-
year, complex programme of work to become fully
compliant by the compliance date. WNZL continuously
monitors its progress and, while it considers that it
has a pathway to achieve compliance, significant risks
remain in relation to the delivery of its plan by the
compliance date.
RBNZ review of overseas bank branches
On 20 October 2021, the RBNZ announced it is
reviewing its policy for branches of overseas banks
(including Westpac Banking Corporation’s New Zealand
branch), with a view to creating a simple, coherent
and transparent policy framework for branches of
overseas banks. On 24 August 2022, the RBNZ released
a second and final consultation paper, outlining its
preferred approach to the regulation of branches,
including:
• restricting overseas bank branches to engaging in
wholesale business only (meaning they could not
take retail deposits or offer products or services to
retail customers), and limiting the maximum size of
a branch to NZ$15 billion in total assets; and
• requiring dual-registered branches (such as
Westpac’s New Zealand branch), to only conduct
business with customers with a turnover greater
than NZ$50 million. In addition, the branch must be
sufficiently separate from the relevant subsidiary
with any risks mitigated by specific conditions of
registration.
The consultation period closes on 16 November 2022.
Deposit Takers Bill
The Deposit Takers Bill 2022 was introduced into the
New Zealand Parliament on 22 September 2022. If
passed, the Bill will create a single regulatory regime
for banks and non-bank deposit takers in New Zealand
and introduce a depositor compensation scheme to
protect up to NZ$100,000 per eligible depositor, per
institution, if a payout event is triggered. The scheme is
expected to be fully funded by levies and with a Crown
backstop. If the Bill is passed, initial implementation
of the depositor compensation scheme is expected in
early 2024, with the remainder of the Bill following the
development of secondary legislation.
General regulatory changes affecting our businesses
Enhanced breach reporting regime
From 1 October 2021, we commenced operating under
the enhanced Australian Securities and Investments
Commission (ASIC) breach reporting regime that
applies to Australian financial services licensees and
credit licensees. The expanded reporting regime has
led to a significant increase in our breach reporting
to ASIC, and is consistent with the trend across the
financial services sector.
Reforms to critical infrastructure laws and cyber resilience
The Security of Critical Infrastructure Act 2018 (Cth)
has been amended to strengthen the security and
resilience of critical infrastructure. This includes critical
infrastructure assets used to provide banking and
financial services. As a result of these amendments, the
financial services sector is subject to new obligations
relating to the security of its critical infrastructure
assets. This includes obligations to:
• report operational, interest and control information
in respect of specified critical infrastructure assets
(where applicable) to the Register of Critical
Infrastructure Assets; and
• notify the Australian Cyber Security Centre of cyber
security incidents that impact critical infrastructure
assets.

WESTPAC GROUP 2022 ANNUAL REPORT 100
Information on Westpac
The Act also gives the Government extensive powers
to provide assistance in responding to cyber security
threats. This includes the power to issue directions to
take action (or refrain from taking action) in response
to an incident, or as a last resort option, to intervene in
the defence of an asset from a cyber threat.
In addition, APRA, ASIC, and the Australian
Government have continued their focus on cyber
resilience, given the increasing number of cyber-related
incidents. APRA is seeking to ensure that regulated
entities improve their cyber resilience practices and
has been focusing on the effective implementation
of Prudential Standard CPS 234 Information Security.
We continue to enhance our systems and processes
to mitigate cyber security risks, including in relation to
third parties.
Proposed reforms to the Privacy Act
The Australian Attorney-General’s Department is
continuing to review the Privacy Act 1988 (Cth) with
a view to implementing reforms to better empower
consumers, protect their data and support the
digital economy. As part of this review, earlier this
year the Attorney-General’s Department received
public submissions on its discussion paper regarding
proposed reforms to the Privacy Act. While its
final report, containing recommended reforms for
consideration by the government is yet to be released,
the Attorney-General has indicated it wants new
legislation drafted this year and expressed particular
concerns around data retention. We are awaiting the
final report.
In the meantime, the Federal Government has
introduced into Parliament the Privacy Legislation
Amendment (Enforcement and Other Measures) Bill
2022. If the Bill is enacted, the Privacy Act will be
amended to include:
• a significant increase in penalties for serious or
repeated breaches of privacy for bodies corporate
from the current $2.22 million to the greater of $50
million, three times the value of the benefit obtained
through any contravention, or 30% of adjusted
turnover during the breach period (if a court cannot
determine the value of the benefit obtained); and
• greater enforcement and information sharing
powers for the Australian Information Commissioner,
such as expanding the types of declarations it could
make at the conclusion of an investigation.
Proposed amendments to Unfair Contract Terms Laws
On 27 October 2022, the Treasury Laws Amendment
(More Competition, Better Prices) Bill 2022 (Cth) was
passed by both Houses of Parliament. The Bill amends
the Competition and Consumer Act 2010 (Cth) (and
the Australian Securities and Investments Commission
Act 2001 (Cth)) to broaden the scope of existing unfair
contract terms laws and make such terms illegal, and
significantly increase the maximum civil penalties for
contraventions. The civil penalties for corporations
will increase to the greater of $50 million; three times
the value of the benefit obtained; or where the value
of the benefit cannot be determined, 30% of adjusted
turnover during the breach period. For individuals,
the civil penalties will increase to $2.5 million. The
increased penalties will take effect the day after Royal
Assent, while the remaining reforms will commence 12
months later. We are considering the potential impacts
of the proposed amendments.
Focus on superannuation
On 31 August 2022, APRA released results for its
second annual performance assessment (APA) test.
The BT Super/Super for Life MySuper product failed
the test for the second time and Westpac’s default
superannuation fund for Westpac Group employees,
BT Super for Life – Westpac Group Plan MySuper also
failed for the first time. The BT Trustee has notified
relevant members of this outcome. The 2022 APA
was based on a combined eight-year performance
of the products. As the BT Super/Super for Life
MySuper product has failed the annual performance
test a second time, the BT trustee cannot accept new
MySuper members into this product until it passes
a subsequent annual performance test and APRA
permits reopening of the product to new members.
The BT Super/Super for Life products were closed to
new members in August 2022. The Westpac Group
Plan remains open to new members. Consistent with
its obligations and APRA’s expectations, in advance of
receiving the second APA result and after conducting a
robust process, the BT Trustee determined that subject
to a number of conditions being satisfied, the transfer
of corporate and personal super members (non-
platform) and their assets to the Mercer Super Trust is
in members’ best financial interests. This transfer, which
applies to the members and assets of the BT Super/
Super for Life and Westpac Group Plan products, is
expected to occur in the first half of 2023.
Litigation and regulatory proceedings
Our entities are parties from time to time in legal
proceedings arising from the conduct of our business.
Material legal proceedings are described below and as
required in Note 26 to the financial statements.

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Information on Westpac
Fraud
Westpac’s proceedings against Forum Finance Pty Ltd
We continue to support external administrators
appointed to companies associated with the directors
of Forum Finance Pty Ltd and to pursue certain of our
legal rights to preserve fraudulently obtained funds,
with a view to making some recovery. We obtained
asset freezing and search orders to seek to preserve
available assets and relevant information, and continue
to assist New South Wales Police.
Completed matters
During 2022, a number of litigation matters have been
finalised, including:
ASIC’s consumer credit insurance proceedings
On 7 April 2021, ASIC commenced proceedings in
the Federal Court against Westpac in relation to the
sale of consumer credit insurance (CCI) products to
certain customers who ASIC alleged had not requested
this product. Westpac ceased selling CCI products in
2019. On 7 April 2022, the Federal Court made orders,
as agreed between Westpac and ASIC, and ordered
Westpac to pay a $1.5 million penalty.
Regulatory matters agreed between Westpac and ASIC
On 30 November 2021, Westpac announced that it had
reached agreement with ASIC to resolve six separate
longstanding matters through agreed civil penalty
proceedings in the Federal Court. These matters
followed regulatory investigations conducted by ASIC,
many instigated by self-reporting of issues by Westpac.
Westpac and ASIC agreed proposed penalties for each
of the proceedings, totalling $113 million, plus agreed
costs, which were subsequently ordered by the Court
and have been paid.
Regulatory proceedings
Information on ASIC’s civil proceedings against
Westpac relating to interest rate hedging activity in
relation to the 2016 Ausgrid privatisation transaction is
set out in Note 26 to the financial statements.
Class actions
Information relating to class actions (including settled
class actions and potential class actions) is set out in
Note 26 to the financial statements.

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Group
performance
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Review of Group operations
Income statement review
Balance sheet review
Capital resources
Segment reporting
Consumer and Business Banking
Consumer
Business
Westpac Institutional Bank
Westpac New Zealand
Specialist Businesses
Group Businesses
Risk and risk management
Risk management
Risk factors
Sustainability
Sustainability governance and risk management
TCFD Index
Non-financial summary
Other Westpac business information

WESTPAC GROUP 2022 ANNUAL REPORT 104
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Disclosure regarding forward-looking statements
This Annual Report contains statements that constitute ‘forward-looking statements’ within the meaning of
Section 21E of the US Securities Exchange Act of 1934.
Forward-looking statements are statements that are not historical facts. Forward-looking statements appear in a
number of places in this Annual Report and include statements regarding our intent, belief or current expectations
with respect to our business and operations, macro and micro economic and market conditions, results of
operations and financial condition, capital adequacy and risk management, including, without limitation, future
loan loss provisions and financial support to certain borrowers, forecasted economic indicators and performance
metric outcomes, indicative drivers, climate- and other sustainability-related statements, commitments, targets,
projections and metrics, and other estimated and proxy data.
Words such as ‘will’, ‘may’, ‘expect’, ‘intend’, ‘seek’, ‘would’, ‘should’, ‘could’, ‘continue’, ‘plan’, ‘estimate’,
‘anticipate’, ‘believe’, ‘probability’, ‘indicative’, ‘risk’, ‘aim’, ‘outlook’, ‘forecast’, ‘assumption’, ‘projection’, ‘target’,
‘goal’, ‘guidance’, ‘ambition’, or other similar words, are used to identify forward-looking statements. These
statements reflect our current views on future events and are subject to change, certain known and unknown
risks, uncertainties and assumptions and other factors which are, in many instances, beyond our control (and
the control of our officers, employees, agents, and advisors), and have been made based on management’s
expectations or beliefs concerning future developments and their potential effect upon Westpac.
Forward-looking statements may also be made, verbally or in writing, by members of Westpac’s management or
Board in connection with this Annual Report. Such statements are subject to the same limitations, uncertainties,
assumptions and disclaimers set out in this document.
There can be no assurance that future developments or performance will align with our expectations or that the
effect of future developments on us will be those anticipated. Actual results could differ materially from those we
expect or which are expressed or implied in forward-looking statements, depending on various factors including,
but not limited to:
• information security breaches, including cyber attacks
• the effect of, and changes in, laws, regulations, taxation or accounting standards or practices, and government
and central bank monetary policies, particularly changes to liquidity, leverage and capital requirements
• regulatory investigations, reviews and other actions, inquiries, litigation, fines, penalties, restrictions or other
regulator-imposed conditions, including from our actual or alleged failure to comply with laws, regulations or
regulatory policy
• the effectiveness of our risk management practices, including our policies, processes, systems and employees
• changes to the external business environment, including geopolitical, social or environmental risks, events or
changes in countries in which Westpac or its customers or counterparties operate
• climate-related risks (including physical and transition risks) that may arise from initiatives and trends
associated with climate change mitigation (including Westpac’s ambition to become a net-zero, climate
resilient bank)
• the failure to comply with financial crime obligations, which has had, and could further have, adverse effects
on our business and reputation
• internal and external events which may adversely impact our reputation
• reliability and security of Westpac’s technology and risks associated with changes to technology systems
• litigation and other legal proceedings and regulator investigations and enforcement actions
• the stability of financial systems and disruptions to financial markets and any losses or business impacts we or
our customers or counterparties may experience
• market volatility, including uncertain conditions in funding, equity and asset markets
• the incidence of inadequate capital levels under stressed conditions
• changes in economic conditions, consumer spending, saving and borrowing habits in Australia, New Zealand
and other countries in which we or our customers or counterparties operate and our ability to maintain or to
increase market share, margins and fees, and control expenses
• adverse asset, credit or capital market conditions or an increase in defaults, impairments and provisioning
because of a deterioration in economic conditions
• sovereign risks, including the risk that governments will default on their debt obligations, fail to perform
contractual obligations, or be unable to refinance their debts
• changes to Westpac’s credit ratings or the methodology used by credit rating agencies
• the effects of competition in the areas in which we operate
• operational risks resulting from ineffective processes and controls
• levels of inflation, interest rates, exchange rates and market and monetary fluctuations and volatility
• poor data quality, data availability or data retention
• strategic decisions including diversification, innovation, divestment, acquisitions, expansion activity and integration
• changes to our critical accounting estimates and judgements and changes to the value of our intangible assets
• and various other factors beyond Westpac’s control.

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The above list is not exhaustive. For certain other factors that may impact on forward-looking statements made
by Westpac, refer to ‘Risk factors’ in this Annual Report. When relying on forward-looking statements to make
decisions with respect to Westpac, investors and others should carefully consider the foregoing factors and other
uncertainties and events.
Except as required by law, we assume no obligation to revise or update any forward-looking statements in this
Annual Report, whether from new information, future events, conditions, or otherwise, after the date of this
Annual Report.
Further important information regarding climate change and sustainability-related statements
This Annual Report contains forward-looking statements and other representations relating to environment,
social and governance (ESG) topics, including but not limited to climate change, net-zero, climate resilience,
natural capital, emissions intensity and other sustainability related statements, commitments, targets, projections,
scenarios, risk and opportunity assessments, pathways, forecasts, estimated projections and other proxy data.
These are subject to known and unknown risks, and there are significant uncertainties, limitations, risks and
assumptions in the metrics and modelling on which these statements rely.
In particular, the metrics, methodologies and data relating to climate and sustainability are rapidly evolving and
maturing, including variations in approaches and common standards in estimating and calculating emissions, and
uncertainty around future climate- and sustainability-related policy and legislation. There are inherent limits in
the current scientific understanding of climate change and its impacts. Some material contained in this Annual
Report may include information including, without limitation, methodologies, modelling, scenarios, reports,
benchmarks, tools and data, derived from publicly available or government or industry sources that have not
been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability
of such information. There is a risk that the estimates, judgements, assumptions, views, models, scenarios or
projections used may turn out to be incorrect. These risks may cause actual outcomes, including the ability to
meet commitments and targets, to differ materially from those expressed or implied in this Annual Report. The
climate- and sustainability-related forward-looking statements made in this Annual Report are not guarantees
or predictions of future performance and Westpac gives no representation, warranty or assurance (including as
to the quality, accuracy or completeness of these statements), nor guarantee that the occurrence of the events
expressed or implied in any forward-looking statement will occur. There are usually differences between forecast
and actual results because events and actual circumstances frequently do not occur as forecast and these
differences may be material. Westpac will continue to review and develop its approach to ESG as this subject
area matures.
Currency of presentation, exchange rates and certain definitions
In this Annual Report, ‘financial statements’ means our audited consolidated balance sheets as at
30 September 2022 and 30 September 2021 and income statements, statements of comprehensive income,
changes in equity and cash flows for each of the years ended 30 September 2022, 2021 and 2020 together with
accompanying notes which are included in this Annual Report.
Our financial year ends on 30 September. As used throughout this Annual Report, the financial year ended
30 September 2022 is referred to as 2022 and other financial years are referred to in a corresponding manner.
We publish our consolidated financial statements in Australian dollars. In this Annual Report, unless otherwise
stated or the context otherwise requires, references to ‘dollars’, ‘dollar amounts’, ‘$’, ‘AUD’ or ‘A$’ are to Australian
dollars and references to ‘NZ$’, ‘NZD’ or ‘NZ dollars’ are to New Zealand dollars. The Australian dollar equivalent
of New Zealand dollars at 30 September 2022 was A$1.00 = NZ$1.1355, being the closing spot exchange rate on
that date.
Any discrepancies between totals and sums of components in tables contained in this Annual Report are due
to rounding.
Selected consolidated financial and operating data
We have derived the following selected financial information, as of, and for the financial years ended,
30 September 2022, 2021 and 2020 from our consolidated financial statements and related notes.
This information should be read together with our audited consolidated financial statements and the
accompanying notes included elsewhere in this Annual Report.
Reading this report

WESTPAC GROUP 2022 ANNUAL REPORT 106
Review of Group operations
Accounting standards
The financial statements and other financial information included elsewhere in this Annual Report, unless
otherwise indicated, have been prepared and presented in accordance with Australian Accounting Standards
(AAS). Compliance with AAS ensures that the financial statements also comply with International Financial
Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).
The financial statements have been prepared in accordance with the accounting policies described in the Notes to
the financial statements.
Recent accounting developments
For a discussion of recent accounting developments refer to Note 1 to the financial statements.
Critical accounting assumptions and estimates
Applying the Group’s accounting policies requires the use of judgement, assumptions and estimates which
impact the financial information. Note 1 (b) includes details of the areas of our critical accounting assumptions
and estimates and a reference to the relevant note in the financial statements providing further information. Each
of the assumptions and estimates have been discussed at our Board Audit Committee (BAC). The following is a
summary of the areas involving our most critical accounting estimates.
• Note 7 Income tax
• Note 11 Provisions for expected credit losses (ECL)
• Note 23 Fair values of financial assets and financial liabilities
• Note 25 Intangible assets
• Note 26 Provisions, contingent liabilities, contingent assets and credit commitments
• Note 33 Superannuation commitments
Impact of climate-related risks
The Group has considered the impact of climate-related risks on its financial position and performance and while
the effects of climate change represent a source of uncertainty, the Group has concluded that climate-related risks
do not have a material impact on the judgements, assumptions and estimates for the year ended 30 September
2022. Details of provision for ECL overlays held in relation to physical climate-related risk are provided in Note 11.
Impact of COVID-19
The Group has considered the impact of the COVID-19 pandemic on the assumptions and estimates impacting the
financial statements for the year ended 30 September 2022. The key areas requiring judgement include:
• ECL; and
• recoverable amount assessments of intangible assets.
As there is a higher than usual degree of uncertainty associated with these assumptions and estimates, the actual
outcomes may differ significantly which may impact accounting estimates included in these financial statements.
Review of Group
operations

WESTPAC GROUP
2022 ANNUAL REPORT
107
STRATEGIC REVIEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
Review of Group operations
Income statement review
Consolidated income statement and key financial information
1

(in $m unless otherwise indicated)
Income statements for the years ended 30 September202220212020
Net interest income 17,161 16,858 16,696
Net fee income 1,671 1,482 1,592
Net wealth management and insurance income 808 1,211 751
Trading income 664 719 895
Other (loss)/income(698) 952 249
Net operating income before operating expenses and impairment charges 19,606 21,222 20,183
Operating expenses(10,802)(13,311)(12,739)
Impairment charges(335) 590 (3,178)
Profit before income tax 8,469 8,501 4,266
Income tax expense(2,770)(3,038)(1,974)
Profit attributable to non-controlling interests (NCI)(5)(5)(2)
Net profit attributable to owners of Westpac Banking Corporation (WBC) 5,694 5,458 2,290
Key financial ratios
Shareholder value
Fully franked dividends per ordinary share (cents) 125 118 31
Dividend payout ratio (%)
2
76.79 79.25 48.87
Basic earnings per share (cents)
3
159.9 149.4 63.7
Diluted earnings per share (cents)
4
152.4 137.8 63.7
Weighted average number of ordinary shares (millions) 3,559 3,653 3,590
Net tangible assets per ordinary share ($)
5
17.18 16.90 15.67
Return on average ordinary equity (%)
6
8.10 7.70 3.37
Return on average total equity (%)
7
8.10 7.70 3.36
Share price ($):
High 26.44 27.12 29.81
Low 18.80 16.51 13.47
Close 20.64 26.00 16.84
Business performance
Net interest margin (%)
8
1.93 2.06 2.03
Operating expenses to operating income ratio (%) 55.10 62.72 63.12
Return on average assets (%)
9
0.58 0.60 0.25
Capital adequacy
Total equity to total assets (%) 7.00 7.70 7.50
Average total equity to total average assets (%) 7.21 7.83 7.40
APRA Basel III:
Common equity Tier 1 (%) 11.29 12.32 11.13
Tier 1 ratio (%) 13.39 14.65 13.23
Total capital ratio (%) 18.40 18.86 16.38
Credit quality
10
Loans written off (net of recoveries) 745 594 977
Loans written off (net of recoveries) to average loans (basis points) 10 8 14
Net impaired assets to equity and collectively assessed provisions (%) 1.06 1.28 2.21
Total provisions for expected credit losses (ECL) to total loans (basis points) 62 70 88
1. Where accounting classifications have changed or where
changes in accounting policy are adopted retrospectively,
comparatives have been restated and may differ from results
previously reported.
2. Adjusted for Treasury shares.
3. Based on weighted average number of fully paid ordinary shares.
4. Basic earnings per share adjusted for the impact of dilutive
potential ordinary shares.
5. Total equity attributable to owners of Westpac Banking
Corporation, after deducting intangible assets divided by the
number of ordinary shares outstanding, less Treasury shares.
6. Calculated by dividing net profit attributable to owners of
Westpac Banking Corporation (adjusted for RSP dividends) by
average ordinary equity.
7. Calculated by dividing net profit attributable to owners of
Westpac Banking Corporation (adjusted for RSP dividends) by
average ordinary equity and non-controlling interests.
8. Calculated by dividing net interest income by average interest
earning assets.
9. Calculated by dividing net profit attributable to owners of
Westpac Banking Corporation by average total assets.
10. Includes balances classified as held for sale.
Review of Group
operations

WESTPAC GROUP 2022 ANNUAL REPORT 108
Review of Group operations
Overview of performance – 2022 v 2021
Net profit attributable to owners of Westpac Banking Corporation (WBC) for 2022 was $5,694 million, an increase
of $236 million or 4% compared to 2021. Basic earnings per share increased 7% as net profit after tax increased
and the average share count reduced 3% following the $3.5 billion share buy-back.
The increase in net profit was predominantly due to reduction in expenses, partly offset by lower non-interest
income mainly from the loss on sale of Australian life insurance and higher credit impairment charges. Over recent
years, Westpac has incurred certain items that have been called “notable items”. The net after tax reduction in net
profit for these items was $1,292 million in 2022 compared to $1,601 million in 2021, $309 million lower and these
include:
• Provisions for estimated customer refunds, payments, associated costs and litigation;
• The write-down of assets and expenses from reducing our corporate and branch footprint; and
• The impact of asset sales and revaluations.
The following is a summary of the movements in major line items in net profit for 2022 compared to 2021.
Net interest income increased $303 million or 2% over 2022 with increased lending and deposits partly offset by
a 13 basis point reduction in net interest margin. Average interest earning assets increased 8%, while spot lending
increased 4% with growth in owner-occupied mortgages, small business, and institutional lending. Customer
deposits increased 6% over the year, more than fully funding loan growth contributing to an increase in the customer
deposit to loan ratio to 82.9%.
All the decline in net interest margin was in the first half of the year from the impact of low interest rates and lending
competition. While competition continued through the year, rising interest rates assisted in restoring margins in the
second half of the year from improved returns on capital and low-rate deposits and better deposit spreads.
Through the year, the decrease in net interest margin was due to:
• Lower spreads on mortgages and business lending reflecting intense competition; and
• Margin dilution from $48 billion increase in average liquid assets to meet the need for additional high quality
liquid assets following the scheduled reduction of the Reserve Bank of Australia’s committed liquidity facility
(CLF). Funding and holding liquid assets are more expensive than the cost of the CLF; partly offset by
• Increased deposit spreads which contributed 21 basis points to net interest margin; and
• Increase of $443 million on unrealised gains on fair value movements of non-hedge accounted economic
hedges in 2022.
Non-interest income was $1,919 million lower compared to 2021. The decrease was predominantly due to:
• Lower other income from the net loss on disposal of non-core businesses in 2022 mainly driven by the loss on
the sale of our Australian life insurance business of $1,112 million. There was a net gain in 2021 of $188 million
from non-core asset sales;
• Lower contribution from NZ life insurance and Australian life insurance businesses of $287 million following
their sales in 2022 and the impact of unfavourable valuations; and
• Lower general and lenders mortgage insurance income by $185 million as these businesses were sold in 2021;
partly offset by
• Lower remediation costs which were offset against revenue of $256 million.
Operating expenses were $2,509 million or 19% lower compared to 2021. The decrease was mainly due to:
• Lower asset write-downs of $1,023 million;
• A reduction in depreciation and amortisation of assets of $450 million following write-downs in 2021;
• Reduced use of third-party services;
• Lower staff expenses of $168 million from lower FTE, partly offset by increased superannuation and higher
restructuring costs;
• Lower separation costs associated with the sale of businesses; and
• Lower remediation costs of $296 million.
Credit impairment charges were $335 million in 2022, compared to a credit impairment benefit of $590 million
in 2021. The charge in 2022 represented 5 basis points of gross loans and is still well below long-term historical
averages. The impairment benefit in 2021 reflected the release of provisions following an improved economic
outlook. The charge in 2022 reflected:
• Impact of higher inflation, interest rates rising and expectation of slowing economic activity; partly offset by
• Impact of further improvement in credit quality metrics through the year including a reduction in stressed
exposures.
The effective tax rate was 32.7% in 2022 and was above the corporate tax rate of 30% due to some non-
deductible expenses including the loss on sale of our Australian life insurance business. The effective tax rate was
also high in 2021 due to non-deductible items including goodwill write-downs.

WESTPAC GROUP
2022 ANNUAL REPORT
109
STRATEGIC REVIEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
Review of Group operations
The Board has determined a final dividend of 64 cents per ordinary share. The full year ordinary dividends of
$1.25 is higher than the ordinary dividends declared in 2021 and represents a payout ratio of 76.79%. The full year
ordinary dividend is fully franked.
Income statement review – 2022 v 2021
Net interest income – 2022 v 2021
$m202220212020
Interest income 23,251 22,278 27,047
Interest expense(6,090)(5,420)(10,351)
Net interest income 17,161 16,858 16,696
Increase/(decrease) in net interest income
Due to change in volume 199 31 496
Due to change in rate 104 131 (707)
Change in net interest income 303 162 (211)
Net interest income increased $303 million or 2% compared to 2021 with higher lending and deposits offset by
lower margins. Key features include:
• Group net interest margin decreased 13 basis points to 1.93%. Refer to Interest spread and margin – 2022 v
2021 for primary drivers of margin movement.
Total loans (including held for sale) increased $28.8 billion or 4% compared to 30 September 2021. Excluding
foreign currency translation impacts, total loans increased $35.1 billion, or 5%.
Key features of total loan movements were:
• Australian housing loans increased $11.8 billion or 3% due to growth in the owner occupied lending, partly
offset by decline in investor lending. Through the year we grew at 0.5 times major bank system, with relative
performance improving in 2H22;
• Australian personal lending decreased $1.9 billion or 13% with lower personal loan balances, continuing the
structural decline in this form of lending across the system, whilst the auto finance portfolio continues to run
off following the sale of the business;
• Australian business lending was $22.2 billion higher or 15% from increased activity from WIB customers,
including merger and acquisition activity and higher utilisation of existing credit facilities. The business lending
segment grew $6.5 billion or 8%, with most growth across the commercial property and agriculture sectors;
• New Zealand lending increased $4.4 billion or 5% in $NZ terms from higher housing due to improved
processes and higher approval rates. Business lending was higher from growth in small business and
institutional, while personal lending was lower due to a highly competitive environment; and
• Held for sale assets were zero from March 2022 as we completed the sale of our auto finance portfolio in
December 2021.
Deposits and other borrowings excluding certificates of deposit increased $32.5 billion or 6% compared to
30 September 2021 due to generally supportive macroeconomic settings, more than fully funding loan growth for
the year. Excluding foreign currency translation impacts, customer deposits increased $36.9 billion, or 6%.
Key features of deposits and other borrowings excluding certificates of deposit growth were:
• In Australia, deposits increased $34.6 billion or 7%. Aggregate growth has continued to be supported by high
levels of system liquidity. Through the year, the composition of growth followed the change in the interest rate
cycle. With rates low throughout First Half 2022, most deposits were directed to at call accounts. As interest
rates increased customers responded by diverting funds to higher interest term deposit accounts;
• New Zealand deposits increased $2.0 billion or 3% in $NZ terms with a change in portfolio mix to higher rate
term deposit products from at call, as interest rates increased; and
• Other overseas deposits increased $1.7 billion or 25% mostly in WIB, as term deposits in Europe and Asia
increased $1.4 billion to support lending growth.
Certificates of deposit decreased $0.3 billion or 1% reflecting lower short-term wholesale funding issuance in
this form.
The Group's customer deposit to loan ratio ended the year at 82.9% from 81.6% at 30 September 2021.

WESTPAC GROUP 2022 ANNUAL REPORT 110
Review of Group operations
Interest spread and margin – 2022 v 2021
$m202220212020
Group
Net interest income 17,161 16,858 16,696
Average interest earning assets 886,971 819,456 821,718
Average interest bearing liabilities 802,692 736,336 745,641
Average net non-interest bearing assets, liabilities and equity 84,279 83,120 76,077
Interest spread
1
1.86% 1.98% 1.90%
Benefit of net non-interest bearing assets, liabilities and equity
2
0.07% 0.08% 0.13%
Net interest margin
3
1.93% 2.06% 2.03%
Group net interest margin of 1.93% decreased 13 basis points from 2021. Excluding the impact of notable items,
net interest margin decreased 15 basis point. Key features include:
• 30 basis point decrease from loans primarily due to lower spreads on mortgage lending in Australia, from
both competition and growth in lower spread owner occupied lending. While rates on fixed rate mortgages
increased over the year, this did not match the timing of the rise in funding costs, and spreads on fixed rate
mortgages are below those on variable rate mortgages. Business lending spreads were also lower due to
competition to attract and retain customers;
• 21 basis point increase from higher deposit spreads on at call accounts and higher earnings on hedged
deposits. These improvements were partly offset in Second Half 2022 by a mix shift from higher spread at call
balances to relatively lower spread term deposits, predominantly in the Consumer and Business portfolios in
Australia and New Zealand;
• 2 basis point increase from wholesale funding costs as spreads on new term wholesale funding were lower
than the spreads on maturing facilities;
• 2 basis point increase from capital primarily from higher earnings on hedged capital; and
• 10 basis point decrease from liquid assets as we increased third party liquid assets principally to offset the
phasing out of the CLF.
Non-interest income - 2022 v 2021
$m202220212020
Net fee income 1,671 1,482 1,592
Net wealth management and insurance income 808 1,211 751
Trading income 664 719 895
Other income(698) 952 249
Non-interest income 2,445 4,364 3,487
Non-interest income of $2,445 million decreased $1,919 million or 44% compared to 2021.
Net fee income increased $189 million or 13% primarily resulting from:
• Higher interchange and currency fees from increased international spend and higher cards activity as
COVID-19 restrictions eased; and
• Lower remediation provisions for credit card customers in 2022, partly offset by
• Lower fee income due to simplification initiatives including the removal of certain fees and consolidation of
products.
• Net wealth management and insurance income decreased $403 million, or 33% compared to 2021 primarily
resulting from:
• Unfavourable yield curve movements on Life Insurance policyholder liabilities;
• Lower wealth income from continued migration of customers from legacy platforms to lower fee Panorama
platform;
• Lower New Zealand funds management income from fee reductions as part of industry changes in default
KiwiSaver funds from December 2021;
• Higher Life Insurance claims; and
• Loss of revenue following sale of the Australian life insurance business.
1. Interest spread is the difference between the average yield on all interest earning assets and the average yield on all interest
bearing liabilities.
2. The benefit of net non-interest bearing assets, liabilities and equity is determined by applying the average yield paid on all interest
bearing liabilities to the average level of net non-interest bearing funds as a percentage of average interest earning assets.
3. Net interest margin is calculated by dividing net interest income by average interest earning assets.
Review of Group
operations

WESTPAC GROUP
2022 ANNUAL REPORT
111
STRATEGIC REVIEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
Review of Group operations
Trading income decreased $55 million or 8% compared to 2021 primarily due to:
• Lower contribution from derivative valuation adjustments due to widening counterparty credit spreads
($185 million); and
• Lower non-customer markets income primarily due to lower fixed income trading from interest rate volatility,
global inflationary pressures and geopolitical uncertainty on credit spreads; partly offset by
• Increase in customer markets income from higher demand for corporate derivatives in First Half 2022 and
higher FX trading income due to increase market volatility.
Other income decreased $1,650 million primarily due:
• Loss on sale of Australian life insurance in Second Half 2022;
• A gain on the revaluation of Coinbase in the prior year;
• A gain on the sale of Westpac General Insurance in the prior year;
• Non-repeat gain on sale of NZ wealth business and lower revaluations of fintech investments, partly offset by
• One-off payment related to achieving specific milestones under the General Insurance distribution
arrangement.
Operating expenses – 2022 v 2021
$m202220212020
Staff expenses 5,866 6,034 5,015
Occupancy expenses 914 1,226 1,016
Technology expenses 2,282 3,128 2,643
Other expenses 1,740 2,923 4,065
Total operating expenses 10,802 13,311 12,739
Total operating expenses to net operating income ratio (%) 55.10% 62.72% 63.12%
Operating expenses were $2,509 million or 19% lower compared to 2021. Notable items include:
• write-down of assets and costs related to accelerated branch closures ($1,054 million lower);
• costs associated with estimated customer refunds, payments, costs and litigation ($345 million lower);
• asset sales and revaluations ($327 million lower);
Excluding the impact of notable items, operating expenses were $783 million or 7% lower compared to Full
Year 2021. The decline mainly reflects benefits from our transformation program, businesses sold and lower
amortisation expense. The impact of businesses sold was a $73 million decline over the prior year. The following
discussion excludes the impact of notable items.
FTE were 2,667 lower over the year as we completed changes to our organisational structure, sold additional
businesses and progressed our cost plans.
Staff expenses were $15 million higher (flat) as reductions in FTE were partly offset by wage increases, the full
period impact of increased superannuation contributions, higher restructuring costs and increased variable
reward. Staff expenses were higher in Westpac New Zealand to support risk and compliance projects, and in
our mortgage operations to support higher growth. These increases were offset by lower leave provisions,
productivity benefits, and lower staff from businesses sold.
Occupancy expenses were $163 million or 17% lower from the rationalisation of corporate sites, lower network
costs from the consolidation of branches and ATM closures (net 119 branches consolidated and 199 ATMs were
closed). Depreciation was also lower following property lease write-downs in Full Year 2021.
Technology expenses decreased $293 million or 12%. The decline was largely driven by lower software
amortisation due to write-downs in Full Year 2021, lower investment spend following a peak in Full Year 2021
and reduced depreciation. Lower investment spend was driven by a decrease in Fix following the completion of
strategic projects during Full Year 2022, which includes 213 of the CORE program’s activities being assessed by
the independent reviewer as complete and effective.
Other expenses decreased $342 million or 19% mainly from lower third-party spend as projects completed during
the year, renegotiation of contracts reduced use of third-party suppliers, and lower non-lending losses.

WESTPAC GROUP 2022 ANNUAL REPORT 112
Review of Group operations
Impairment charges – 2022 v 2021
$m202220212020
Total impairment (benefit)/charges 335 (590) 3,178
Impairment charges to average gross loans (basis points) 5 (8) 45
In Full Year 2022, the impairment charge was $335 million, compared to a Full Year 2021 credit impairment
benefit of $590 million, a $925 million turnaround. The benefit in Full Year 2021 was due to an improved economic
outlook at that time (the impacts of COVID-19 were not as adverse as first projected) and that some provisions
booked in Full Year 2020 were no longer required (and therefore released in Full Year 2021).
Total new IAPs, write-backs and recoveries were $297 million lower due to:
• very low new IAP compared to Full Year 2021, which was impacted by the IAP related to Forum Finance,
partially offset by;
• lower write-backs and recoveries, predominately in Consumer and Business Banking and in New Zealand.
Total new CAPs were a $1,222 million increase mostly due to a lower CAP benefit and write-offs.
Other changes in CAPs in Full Year 2022 was a small benefit, driven by continued improvement in credit quality
metrics, partially offset by:
• an increase in the downside economic scenario weight to 45%;
• an update to modelled economic scenarios for key portfolios; and
• less favourable forward looking economic inputs in the provision calculation.
Income tax expense – 2022 v 2021
$m202220212020
Income tax expense 2,770 3,038 1,974
Tax as a percentage of profit before income tax expense (effective income tax rate) 32.71% 35.74% 46.27%
The effective tax rate of 32.71% in 2022 is above the Australian corporate tax rate of 30%, with the key driver for
the increase in the rate being accounting losses on the sale of the Australian life insurance business that are non-
deductible for tax purposes. This has been partially offset by benefits derived from prior period adjustments.
Review of Group
operations

WESTPAC GROUP
2022 ANNUAL REPORT
113
STRATEGIC REVIEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
Review of Group operations
Balance sheet review
Selected consolidated balance sheet data
1
The detailed components of the balance sheet are set out in the notes to the financial statements.
20222021
As at 30 September$m$m
Cash and balances with central banks 105,257 71,353
Collateral paid 6,216 4,232
Trading securities and financial assets measured at fair value through income statement and investment
securities 100,797 104,518
Derivative financial instruments 41,283 19,353
Loans 739,647 709,784
Assets held for sale 75 4,188
All other assets 20,923 22,449
Total assets 1,014,198 935,877
Collateral received 6,371 2,368
Deposits and other borrowings 659,129 626,955
Other financial liabilities 56,360 50,309
Derivative financial instruments 39,568 18,059
Debt issues 144,868 128,779
Liabilities held for sale 32 837
All other liabilities 6,107 7,411
Total liabilities excluding loan capital 912,435 834,718
Total loan capital 31,254 29,067
Total liabilities 943,689 863,785
Net assets 70,509 72,092
Total equity attributable to owners of WBC 70,452 72,035
NCI 57 57
Total shareholders’ equity and NCI 70,509 72,092
1. Where accounting classifications have changed or where changes in accounting policy are adopted retrospectively, comparatives have
been restated and may differ from results previously reported.
Review of Group
operations

WESTPAC GROUP 2022 ANNUAL REPORT 114
Review of Group operations
Balance sheet review
Total assets increased $78.3 billion or 8% to $1,014.2 billion since September 2021 primarily driven by higher liquid
assets (mainly cash and balances with central banks), derivatives, and loans. Total liabilities increased $79.9 billion
or 9% to $943.7 billion since September 2021 mainly from higher deposits, derivatives, and debt issues. Equity was
lower mostly from the $3.5 billion off-market buy-back completed in February 2022.
Liquid assets increased as we responded to the decision by APRA to wind-down the CLF used by certain
Australian banks to meet their LCR requirement. The wind-down in the CLF required us to hold more funded liquid
assets. This change and the completion of a $3.5 billion off-market share buy-back required additional funding
which was met by customer deposit growth and additional wholesale funding.
Assets – 2022 v 2021
• Cash and balances with central banks increased $33.9 billion or 48% from higher funded liquid assets in
response to the wind-down in the CLF;
• Collateral paid increased $2.0 billion or 47% due to higher collateralised derivative balances;
• Trading securities and other financial assets measured at FVIS and investment securities decreased $3.7 billion
or 4% mainly due to the sale of government investment securities, partly offset by an increase in securities
purchased under agreement to resell;
• Derivative assets increased $21.9 billion or 113% driven by movements in cross currency swaps and foreign currency
forward contracts, partly offset by interest rate swaps due to volatility in exchange rates and interest rates;
• Loans increased $29.9 billion or 4% (including held for sale, loans increased $28.8 billion or 4%). Refer to loan
discussion in Net interest income 2022 v 2021 for further information.
• Assets held for sale decreased $4.1 billion or 98% from the $1 billion sale of our motor vehicle dealer finance
and novated leasing book, and finalising the sales of our life insurance businesses in both Australia and
New Zealand; and
• All other assets decreased $1.5 billion or 7% mostly due to reductions in securities sold not delivered included
in other financial assets and deferred tax assets.
Liabilities and equity – 2022 v 2021
• Collateral received increased $4.0 billion or 169% from higher collateralised derivative balances;
• Deposits and other borrowings increased $32.2 billion or 5%. Refer to deposits and other borrowings
discussion in Net interest income – 2022 v 2021 for further information;
• Other financial liabilities increased $6.1 billion or 12% mainly due to higher securities sold under agreements
to repurchase, securities sold short, and interbank deposits, partly offset by lower securities purchased not
delivered;
• Derivative liabilities increased $21.5 billion or 119% driven by movements in cross currency swaps, foreign
currency forward contracts and interest rate swaps due to volatility in exchange rates and interest rates;
• Debt issues increased $16.1 billion or 12% mainly due to $17.4 billion net issuance and $6.1 billion loss from
foreign currency translation, partly offset by $7.4 billion non-cash adjustments predominantly related to fair
value hedge adjustment gain;
• Loan capital increased $2.2 billion or 8% mainly due to $4.2 billion net issuances of Additional Tier 1 and
Tier 2 instruments and $1.7 billion loss from foreign currency translation, partly offset by $3.7 billion non-cash
adjustments predominantly related to fair value hedge adjustment gain;
• Liabilities held for sale decreased $0.8 billion or 96% from finalising the sales of our life insurance businesses in
both Australia and New Zealand; and
• All other liabilities decreased $1.3 billion or 18% due to lower compliance, regulation and remediation
provisions, lease liability and a decline in valuation of the defined benefit liability.
Equity attributable to owners of Westpac Banking Corporation decreased $1.6 billion or 2% mainly attributable to
the off-market share buy-back, partly offset by retained profits.
Loan quality - 2022 v 2021
Housing and personal loans that were past due can be disaggregated based on days overdue as follows:
Consolidated20222021
$m30-89 days90+ daysTotal30-89 days90+ daysTotal
Loans
Loans - housing 2,319 3,597 5,916 5,373 5,081 10,454
Loans - personal 147 195 342 214 247 461
Total 2,466 3,792 6,258 5,587 5,328 10,915

WESTPAC GROUP
2022 ANNUAL REPORT
115
STRATEGIC REVIEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
Review of Group operations
Capital resources
For details of the Group’s capital resources, including APRA announcements on capital, refer to Note 28 to the
financial statements.
Basel Capital Accord
APRA’s Prudential Standards are generally consistent with the International Regulatory Framework for Banks,
also known as Basel III, issued by the Basel Committee on Banking Supervision (BCBS), except where APRA
has exercised certain discretions. On balance, the application of these discretions acts to reduce capital ratios
reported under APRA’s Prudential Standards relative to the BCBS approach and to those reported in some other
jurisdictions.
Westpac is accredited by APRA to apply advanced models permitted by the Basel III global capital adequacy
regime to the measurement of its regulatory capital requirements. Westpac uses the Advanced Internal Ratings
Based approach for credit risk, the Standardised Measurement Approach (SMA) for operational risk and the
internal model approach for Interest Rate Risk in the Banking Book (IRRBB).
Westpac’s Level 2 regulatory capital ratios as at 30 September are summarised in the table below. As the table
summarises Westpac’s Level 2 regulatory capital structure, the capital amounts shown are not the same as the
Westpac Group’s consolidated financial statements. Westpac’s Pillar 3 Report provides further details regarding
Westpac’s capital structure.
$m20222021
Tier 1 common equity 69,408 70,817
Deductions from common equity(15,465)(17,009)
Total common equity after deductions 53,943 53,808
Additional Tier 1 capital 10,021 10,180
Deductions from Additional Tier 1 capital(25)(25)
Net Tier 1 regulatory capital 63,939 63,963
Tier 2 capital 24,202 18,766
Deductions from Tier 2 capital(243)(361)
Total Tier 2 capital after deductions 23,959 18,405
Total regulatory capital 87,898 82,368
Credit risk 362,098 357,295
Market risk 9,290 6,662
Operational risk 59,063 55,875
Interest rate risk in the banking book 42,782 11,446
Other assets 4,387 5,372
Total risk weighted assets 477,620 436,650
Common Equity Tier 1 capital ratio 11.29% 12.32%
Additional Tier 1 capital ratio 2.10% 2.33%
Tier 1 capital ratio 13.39% 14.65%
Tier 2 capital ratio 5.01% 4.21%
Total regulatory capital ratio 18.40% 18.86%
Review of Group
operations

WESTPAC GROUP 2022 ANNUAL REPORT 116
Segment reporting
Segment reporting
Segment reporting – 2022 v 2021
The accounting standard AASB 8 Operating Segments requires segment results to be presented on a basis
that is consistent with information provided internally to Westpac’s key decision makers. In assessing financial
performance, including segment reporting, we currently use an adjusted AAS measure of performance referred
to as ‘cash earnings’. Cash earnings is viewed as a measure of the level of profit that is generated by ongoing
operations and is therefore typically considered in assessing distributions, including dividends. Cash earnings is
neither a measure of cash flow nor net profit determined on a cash accounting basis, as it includes both cash and
non-cash adjustments to net profit attributable to owners of Westpac Banking Corporation.
A reconciliation of cash earnings to net profit attributable to owners of Westpac Banking Corporation for each
business segment is set out in Note 2 to the Financial Statements.
To determine cash earnings, three categories of adjustments are made to statutory results:
• items that key decision makers at Westpac believe do not reflect ongoing operations;
• items that are not typically considered when dividends are recommended, mainly economic hedging impacts;
and
• accounting reclassifications between individual line items that do not impact statutory results.
The discussion of our segment reporting in this section is presented on a cash earnings basis unless otherwise
stated. Cash earnings is not directly comparable to statutory results presented in other parts of this Annual
Report.
On 17 March 2021, Westpac announced that it was bringing together the leadership of its Consumer and Business
segments into a new Consumer and Business segment. We have updated our reporting and restated comparatives
for this change and changes in the allocations of certain revenue and expense items across segments, to align
with changes in the information presented internally to key decision makers. The key changes include:
• All Australian mortgages (both business and consumer) are now included in the Mortgage line of business
(LOB).
• Revenue sharing ceased from the sale of certain institutional products (i.e. Foreign exchange and interest rate
hedging). This reduces non-interest income across both Consumer and Business segments with all income for
these products recorded in WIB.
• The addition of the share broking business in Consumer from Specialist Businesses.
Outlined below are the cash earnings adjustments to the statutory results:
• fair value (gain)/loss on economic hedges (which do not qualify for hedge accounting under AAS) comprise:
–The unrealised fair value (gain)/loss on hedges of accrual accounted term funding transactions are reversed
in deriving cash earnings as they may create a material timing difference on statutory results but do not
affect the Group’s earnings over the life of the hedge; and
–The unrealised fair value (gain)/loss on foreign exchange hedges of future New Zealand earnings impacting
non-interest income is reversed in deriving cash earnings as they may create a material timing difference on
statutory results but do not affect the Group’s profits over the life of the hedge.
• ineffective hedges: The unrealised (gain)/loss on ineffective hedges is reversed in deriving cash earnings
because the gain or loss arising from the fair value movement in these hedges reverses over time and does not
affect the Group’s profits over time;
• adjustment related to Pendal: Westpac disposed of its holdings in 2020. As a result, no further adjustments will
be recognised in future years. In prior years this item was treated as a cash earnings adjustment given its size
and that it did not reflect ongoing operations;
• Treasury shares: Treasury shares held by the Group in managed funds and life businesses were disposed of in
2020; and
• accounting reclassifications between individual line items that do not impact statutory results comprise:
–Operating leases: Under AAS, rental income on operating leases is presented gross of the depreciation of
the assets subject to the lease. These amounts are offset in deriving non-interest income and operating
expenses on a cash earnings basis; and
–Policyholder tax recoveries: Income and tax amounts that are grossed up to comply with the AAS covering
the Life Insurance business (policyholder tax recoveries) are reversed in deriving income and taxation
expense on a cash earnings basis.
The guidance provided in Australian Securities and Investments Commission (ASIC) Regulatory Guide 230 has
been followed when presenting this information.

WESTPAC GROUP
2022 ANNUAL REPORT
117
STRATEGIC REVIEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
Segment reporting
Cash earnings by segment
The following table presents, for each of the key segments of our business, the cash earnings at the end of the
financial years ended 30 September 2022, 2021 and 2020. Refer to Note 2 to the financial statements for the
disclosure of our geographic and business segments and the reconciliation to net profit attributable to owners
of Westpac Banking Corporation.
$m202220212020
Consumer 3,291 3,707 3,287
Business 918 1,077 88
Consumer and Business Bank 4,209 4,784 3,375
Westpac Institutional Bank 687 (533) 480
Westpac New Zealand 1,075 950 612
Specialist Businesses(723) 162 (539)
Group Businesses 28 (11)(1,320)
Total cash earnings 5,276 5,352 2,608
In presenting segment results on a management reporting basis, internal charges and transfer pricing adjustments
are included in the performance of each segment reflecting the management structure rather than the legal
entity (these results cannot be compared to results for individual legal entities). Where management reporting
structures or accounting classifications have changed, financial results for comparative years have been revised
and may differ from results previously reported.
Our internal transfer pricing frameworks facilitate risk transfer, profitability measurement, capital allocation and
business unit alignment, tailored to the jurisdictions in which we operate. Transfer pricing allows us to measure
the relative contribution of our products and segments to the Group’s interest margin and other dimensions of
performance. Key components of our transfer pricing frameworks are funds transfer pricing for interest rate and
liquidity risk and allocation of basis and contingent liquidity costs, including capital allocation.

WESTPAC GROUP 2022 ANNUAL REPORT 118
Segment reporting
Over recent years, a number of notable items have impacted results but do not reflect ongoing business
performance. These can be divided into three categories:
Category
Cash earnings
impact FY22
(after tax)Detail
1. Provisions for customer refunds and
payments, associated costs and litigation
costs
$133 million
reduction
• Additional provisions for estimated customer refunds:
–remediation for premium increases on certain life insurance products
issued by Australian life insurance; and
– additional wealth related remediation; partly offset by release of
provisions for customer remediation in Westpac New Zealand.
• Additional costs for our customer remediation program; and
• Increase in litigation provisions.
2. The write-down of assets (including
goodwill and capitalised software) and
accelerated branch closure costs
$283 million
reduction
• Write-down of assets related to our superannuation business in
preparation for its exit. This included all goodwill attributable to the
business along with some capitalised software of $167 million in costs,
$154 million after tax;
• Write-down of assets from a reduction in corporate office space
required. Reduced space requirements are from business sales, reduced
headcount, and more flexible working. The write-down considers the
capitalised value of the remaining term of the lease less likely sublease
income, $118 million in costs, $82 million after tax; and
• Expenses associated with the accelerated consolidation of branches that
has progressed more rapidly than recent years of $66 million in costs,
$47 million after tax.
3. The impact of asset sales and
revaluations
$876 million
reduction
• Loss on sale of Australian life insurance of $1,112 million in non-interest
income, $1,120 million after tax;
• Expenses and revaluations associated with asset sales, including of
Advance Asset Management and successor funds transfer of BT’s
personal and corporate superannuation funds of $125 million, $101 million
after tax; and
• Other costs associated with the divestments of the Group’s businesses;
partly offset by:
• Gain on the sale of NZ life insurance; and
• Gain on sale of the Group’s motor vehicle dealer finance and novated
leasing business in First Half 2022. This also includes a tax refund in
Second Half 2022 related to transaction and separation costs relating to
the Group’s motor vehicle dealer finance, novated leasing business and
vendor finance businesses.

WESTPAC GROUP
2022 ANNUAL REPORT
119
STRATEGIC REVIEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
Segment reporting
$m
AUSTRAC
proceedings
Refunds,
payments,
costs, and
litigation
Write-
down of
assets and
accelerated
branch
closure
costs
Asset
sales and
revaluationsTotal
2022
Net interest income- (1)- - (1)
Net fee income- (1)- - (1)
Net wealth management and insurance income- (51)- - (51)
Trading income- - - - -
Other income- - - (841)(841)
Non-interest income- (52)- (841)(893)
Staff expenses- (18)(39)(51)(108)
Occupancy expenses- - (126)- (126)
Technology expenses- - (62)(35)(97)
Other expenses- (108)(124)(58)(290)
Operating expenses- (126)(351)(144)(621)
Profit before impairment charges and income tax expense- (179)(351)(985)(1,515)
Tax and NCI- 46 68 109 223
Cash earnings- (133)(283)(876)(1,292)
2021
Net interest income- 131 - (4) 127
Net fee income- (137)- - (137)
Net wealth management and insurance income- (106)- - (106)
Trading income- - - - -
Other income- (4)- 764 760
Non-interest income- (247)- 764 517
Staff expenses- (116)- (175)(291)
Occupancy expenses- - (232)(43)(275)
Technology expenses- (3)(579)(68)(650)
Other expenses- (352)(594)(185)(1,131)
Operating expenses- (471)(1,405)(471)(2,347)
Profit before impairment charges and income tax expense- (587)(1,405) 289 (1,703)
Tax and NCI- 139 241 (278) 102
Cash earnings- (448)(1,164) 11 (1,601)
2020
Net interest income- (143)- - (143)
Net fee income- (88)- - (88)
Net wealth management and insurance income- (121)- (357)(478)
Trading income- - - - -
Other income- - - 303 303
Non-interest income- (209)- (54)(263)
Staff expenses- (123)- (3)(126)
Occupancy expenses- - - - -
Technology expenses- (4)(161)(4)(169)
Other expenses(1,478)(147)(507)(112)(2,244)
Operating expenses(1,478)(274)(668)(119)(2,539)
Profit before impairment charges and income tax expense(1,478)(626)(668)(173)(2,945)
Tax and NCI 36 186 54 50 326
Cash earnings(1,442)(440)(614)(123)(2,619)

WESTPAC GROUP 2022 ANNUAL REPORT 120
Segment reporting
A number of notable items impacted 2022, 2021 and 2020 results. The impact to net interest income, non-interest
income and operating expenses is summarised below.
2022
Non-interest income decreased by $893 million and comprised:
• a $1,112 million decrease due to the loss on sale of Australian life insurance;
• a $52 million decrease for additional remediation related to wealth products, partly offset by the release of
some provisions in Westpac New Zealand;
• a $18 million decrease related to a post-sale adjustment to earn-out payments associated with the sale of the
vendor finance business; partly offset by
• a gain on the sale of the auto finance wholesale dealer and retail distribution business of $170 million; and
• a gain on the sale of NZ life insurance of $119 million.
Operating expenses increased by $621 million in 2022 and comprised:
• expenses and revaluations associated with asset sales, including the sale of Advance Asset Management and
successor funds transfer of BT’s personal and corporate superannuation funds of $292 million;
• write-down of assets from a reduction in corporate office space required. Reduced space requirements are
from business sales, reduced headcount, and more flexible working. The write-down of $118 million considers
the capitalised value of the remaining term of the lease less likely sublease income;
• expenses of $66 million associated with the accelerated consolidation of branches that has progressed more
rapidly than recent years;
• Other expenses associated with asset sales and revaluations of $19 million; and
• $126 million additional costs for our customer remediation program and an increase in litigation provisions,
including for longstanding ASIC matters settled during the year.
Income tax expense and NCI reduced by $223 million. This was mainly from a tax refund related to the sale of the
Group’s motor vehicle dealer finance, novated leasing business and vendor finance businesses. There was also a
benefit from certain items discussed above recognised in operating expenses.
2021
Net interest income increased by $127 million as some customer remediation provisions were no longer required
for business customers that were not provided regulated consumer loans. These provision releases were partly
offset by additional provisions for customer remediation in Westpac New Zealand.
Non-interest income increased by $517 million and comprised:
• a $760 million benefit to other income from a gain on our stake in Coinbase, the gain on sale of Westpac
General Insurance, post-sale earn out payments from the sale of vendor finance and a small gain from finalising
the sale of our holding in Zip Co Limited; partly offset by
• a $137 million reduction to net fee income for additional provisions related to salaried advice remediation and
for some customers on our platforms who were not advised of certain corporate actions; and
• a $106 million reduction to net wealth management and insurance income for additional provisions for aligned
dealer group advice remediation.
Operating expenses increased by $2,347 million in 2021 and comprised:
• staff expenses of $291 million for the implementation of our remediation program, and separation costs related
to the sale of Australian life insurance;
• occupancy expenses of $275 million related to the write-down of WIB property leases and from the write-
down of assets in Westpac Pacific;
• technology expenses of $650 million mainly from the write-down and impairment of capitalised software, the
majority of which was associated with WIB, and costs related to the sale of Australian life insurance; and
• other expenses of $1,131 million including;
–the write-down of goodwill in WIB following annual impairment testing along with goodwill in Westpac
Lenders Mortgage Insurance and other assets in Westpac Pacific;
–Reinventure performance fees paid that were linked to the divestment of Coinbase; and
–other costs linked to completing our remediation programs and litigation matters.
Income tax expense and NCI reduced by $102 million. This was mainly from the tax benefit from certain items
discussed above recognised in operating expenses, partly offset by higher tax from the divestment of Coinbase,
the sale of Westpac General Insurance and the write-off of a deferred tax asset in the Australian life insurance.

WESTPAC GROUP
2022 ANNUAL REPORT
121
STRATEGIC REVIEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
Segment reporting
2020
Net interest income reduced by $143 million from an increase in provisions for Business customers that were
provided business loans but should have been provided regulated consumer loans, partly offset by the release of
provisions no longer required for interest only loans that did not automatically switch, when required, to principal
and interest loans.
Non-interest income reduced by $263 million from:
• a reduction to net fee income of $88 million for provisions for some customers on our platforms who were not
advised of certain corporate actions;
• A $478 million reduction of net wealth management and insurance income from the write-off of intangibles
including insurance liabilities and deferred acquisition costs associated with Australian life insurance and
provisions for aligned dealer group advice remediation; partly offset by
• A $303 million benefit to other income from a revaluation gain related to the divestment of the Group’s stake
in Zip Co Limited.
Operating expenses increased by $2,539 million in 2020 and comprised:
• staff expenses of $126 million for implementation of our remediation program;
• technology expenses of $169 million from the write-down of capitalised software; and
• other expenses of $2,244 million including costs associated with the AUSTRAC matter (including a $1.3 billion
penalty), the write-down of goodwill for the Australian life insurance and the Group’s motor vehicle finance
and novated leasing businesses, an accounting loss on sale of our vendor finance business, and costs linked to
our remediation programs and litigation.
Income tax expense and NCI reduced by $326 million from the tax benefit of the above items (excluding penalties
and goodwill write-downs that were non-deductible), partly offset by tax on the revaluation gain associated with
the divestment of Zip Co Limited.

WESTPAC GROUP 2022 ANNUAL REPORT 122
Segment reporting
Consumer
WestpacWestpac
and
BusinessInstitutionalNew ZealandSpecialistGroup
$mConsumerBusinessBankBank($A)BusinessesBusinessesGroup
2022
Net interest income- - - - (1)- - (1)
Net fee income- - - - (1)- - (1)
Net wealth management
and insurance income- - - - - (51)- (51)
Trading income- - - - - - - -
Other income- - - - 119 (960)- (841)
Non-interest income- - - - 118 (1,011)- (893)
Operating expenses(66)- (66)- - (365)(190)(621)
Profit before impairment
charges and income tax
expense(66)- (66)- 117 (1,376)(190)(1,515)
Tax and NCI 19 - 19 - - 150 54 223
Cash earnings(47)- (47)- 117 (1,226)(136)(1,292)
2021
Net interest income 3 177 180 - (35)(18)- 127
Net fee income(3) 1 (2)- (12) 8 (131)(137)
Net wealth management
and insurance income- - - - - (4)(102)(106)
Trading income- - - - - - - -
Other income- - - - 1 195 564 760
Non-interest income(3) 1 (2)- (11) 199 331 517
Operating expenses(141)(54)(195)(1,193)(23)(640)(296)(2,347)
Profit before impairment
charges and income tax
expense(141) 124 (17)(1,193)(69)(459) 35 (1,703)
Tax and NCI 36 (39)(3) 202 17 (81)(33) 102
Cash earnings(105) 85 (20)(991)(52)(540) 2 (1,601)
2020
Net interest income 5 (141)(136)- (7)- - (143)
Net fee income 4 2 6 - (7)(7)(80)(88)
Net wealth management
and insurance income- - - - - (402)(76)(478)
Trading income- - - - - - - -
Other income- - - - - - 303 303
Non-interest income 4 2 6 - (7)(409) 147 (263)
Operating expenses(64)(130)(194)- 1 (694)(1,652)(2,539)
Profit before impairment
charges and income tax
expense(55)(269)(324)- (13)(1,103)(1,505)(2,945)
Tax and NCI 16 81 97 - 4 181 44 326
Cash earnings(39)(188)(227)- (9)(922)(1,461)(2,619)

WESTPAC GROUP
2022 ANNUAL REPORT
123
STRATEGIC REVIEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
Segment reporting
Consumer and Business Banking
Financial performance
$m202220212020
Net interest income 12,012 12,473 12,716
Non-interest income 941 867 920
Net operating income before operating expenses and impairment (charges)/benefits 12,953 13,340 13,636
Operating expenses(6,585)(7,116)(6,432)
Impairment (charges)/benefits(344) 609 (2,387)
Profit before income tax expense 6,024 6,833 4,817
Income tax expense(1,815)(2,049)(1,442)
Cash earnings 4,209 4,784 3,375
Net cash earnings adjustments- - -
Net profit attributable to owners of WBC 4,209 4,784 3,375
Deposits and other borrowings ($bn) 413.9 395.0 370.9
Net loans ($bn) 559.5 541.1 529.8
Total assets ($bn) 574.0 555.4 545.7
Total operating expenses to net operating income ratio (%) 50.84% 53.34% 47.17%

WESTPAC GROUP 2022 ANNUAL REPORT 124
Segment reporting
Consumer
Consumer provides a range of banking products and services, including mortgages, credit cards, personal loans,
and savings and at call deposits to customers in Australia. Products and services are provided under the Westpac,
St.George, BankSA, Bank of Melbourne, and RAMS brands.
Financial performance
$m202220212020
Net interest income 8,985 9,486 9,711
Non-interest income 612 518 580
Net operating income before operating expenses and impairment (charges)/benefits 9,597 10,004 10,291
Operating expenses(4,689)(4,898)(4,323)
Impairment (charges)/benefits(201) 184 (1,277)
Profit before income tax expense 4,707 5,290 4,691
Income tax expense(1,416)(1,583)(1,404)
Cash earnings 3,291 3,707 3,287
Net cash earnings adjustments- - -
Net profit attributable to owners of WBC 3,291 3,707 3,287
Deposits and other borrowings ($bn) 280.6 266.4 251.9
Net loans ($bn) 474.6 462.7 449.0
Total assets ($bn) 486.9 474.8 462.5
Total operating expenses to net operating income ratio (%) 48.86% 48.96% 42.01%
2022 v 2021
Cash earnings of $3,291 million were $416 million or 11% lower in 2022, mostly due to lower net interest margins
and a $385 million turnaround in impairment charges. These were partly offset by lower expenses and higher non-
interest income.
Net interest
income down
$501 million, 5%
• Net loans increased $11.9 billion, or 3%, predominantly in owner occupied mortgages
($15.7 billion) while investor mortgages declined $2.6 billion. Credit card balances
increased while other personal lending was lower;
• Deposits increased $14.2 billion, or 5%. Around two thirds of growth was in First Half
2022 driven by government stimulus and uncertainty due to COVID-19. Term deposits
increased $12.0 billion and at call accounts were up $2.2 billion, with growth in
transaction accounts including mortgage offsets; and
• Net interest margin was 17 basis points lower with all the decline in the first half of the
year. Mortgage competition and a concentration of growth in lower spread products
was the driver behind the fall. These declines were partly offset by higher deposit
spreads as interest rates increased in Second Half along with better returns from
hedged deposits and capital.
Non-interest
income up
$94 million, 18%
• Most of the increase was due to:
–Higher card fees from increased transactions as the economy re-opened and
consumer sentiment improved;
–Lower remediation payments; and
–A $25 million one-off item related to achieving a milestone under the new
distribution arrangement for general insurance.
• Partly offset by the loss of fee income from the removal of certain account-keeping
fees and other simplification initiatives ($15 million).
Operating
expenses down
$209 million, 4%
• The reduction in expenses was due to:
–Simplified organisational design including lower operational costs following the
consolidation of 119 branches and a reduction of 199 ATMs;
–A reduction in the number of products (down 53 products); and
–The completion of several risk and regulatory programs.
• Partly offset by increased franchise investments.

WESTPAC GROUP
2022 ANNUAL REPORT
125
STRATEGIC REVIEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
Segment reporting
Impairment
charge up
$385 million, Large
• The impairment charge of $201 million in 2022 was due to write-offs partly offset
by overlays. The overlays in 2022 capture the effects of anticipated increases in
delinquencies and for extreme weather events alongside an update to modelled
economic scenarios, partly offset by a benefit from the improvement in credit quality
metrics. The benefit in 2021 was due to the release of COVID-19 related provisions ; and
• Credit quality metrics improved with stressed exposures to TCE down 30 basis points
to 0.68%. Mortgage 90+ day delinquencies were down 32 basis points to 0.75% due
to the reduction in the hardship portfolio as customers completed their serviceability
period and as customers successfully exited COVID-19 assistance. Other consumer 90+
day delinquencies were down 25 basis points to 1.35%.

WESTPAC GROUP 2022 ANNUAL REPORT 126
Segment reporting
Business
Business provides banking services and products to Australian small business, Agribusiness and Commercial
businesses generally up to $200 million in exposure. The segment offers savings, transaction and lending products
including specialist services such as cash flow finance, equipment finance and property finance. Business operates
under the Westpac, St.George, BankSA, and Bank of Melbourne brands.
Financial performance
$m202220212020
Net interest income 3,027 2,987 3,005
Non-interest income 329 349 340
Net operating income before operating expenses and impairment (charges)/benefits 3,356 3,336 3,345
Operating expenses(1,896)(2,218)(2,109)
Impairment (charges)/benefits(143) 425 (1,110)
Profit before income tax expense 1,317 1,543 126
Income tax expense(399)(466)(38)
Cash earnings 918 1,077 88
Net cash earnings adjustments- - -
Net profit attributable to owners of WBC 918 1,077 88
Deposits and other borrowings ($bn) 133.3 128.6 119.0
Net loans ($bn) 84.9 78.4 80.8
Total assets ($bn) 8 7.1 80.6 83.2
Total operating expenses to net operating income ratio (%) 56.50% 66.49% 63.05%
2022 v 2021
Cash earnings of $918 million were $159 million, or 15% lower than 2021. The decline was due to a $568 million
change in impairment charges, partly offset by a 15% reduction in expenses while net interest income was up 1%.
Net interest
income up
$40 million, 1%
• Net interest income in 2021 benefited from the write-back of provisions related to
customer refunds and payments which was not repeated in 2022. Excluding this
impact, net interest income was up $217 million, or 8%;
• Net loans were $6.5 billion, or 8% higher with growth across most sectors. This
included growth in commercial property of 13%, and agriculture of 9%;
• Deposits were up $4.8 billion, or 4%, with growth split across term deposits, up
$2.7 billion and at call accounts up $2.1 billion (with all the rise in transaction accounts).
Deposit trends changed through the year. Early in the year growth was predominantly
in at call accounts but shifted to term deposits as interest rates began to rise; and
• Net interest margin was down 7 basis points. Excluding the benefit from the provision
write-back noted above, net interest margin was 16 basis points higher due to rising
interest rates which improved deposit spreads, particularly in transaction deposits.
These increases were partly offset by lower lending spreads due to competitive pricing
for new lending and to retain customers. The high relative proportion of deposits to
loans also supported higher margins.
Non-interest
income down
$20 million, 6%
• The decrease was largely due to lower merchant fees and higher fees paid to card
scheme providers due to the increase of international spend following the easing of
COVID-19 restrictions; partly offset by higher fees due to increased loan settlements of
$11 billion.
Operating
expenses down
$322 million, 15%
• The decline was due to the completion of programs to improve our management of
risk, and simplification of our operating structure.
Impairment
charge up
$568 million, Large
• The impairment charge was due to a CAP charge in 2022 compared to a CAP benefit
in 2021. The charge in 2022 was due to an update of modelled economic scenarios and
the benefit in 2021 was due to the release of COVID-19 related provisions; and
• Credit quality metrics improved with stressed exposures to TCE down 85 basis points
to 5.05%, due to a reduction in impaired and watchlist exposures predominately within
the accommodation, transport and trade sectors.

WESTPAC GROUP
2022 ANNUAL REPORT
127
STRATEGIC REVIEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
Segment reporting
Westpac Institutional Bank
Westpac Institutional Bank (WIB) delivers a broad range of financial products and services to corporate,
institutional and government customers operating in, or with connections to, Australia and New Zealand. WIB
operates through dedicated industry relationship and specialist product teams, with expert knowledge in
financing, transactional banking, and financial and debt capital markets. Customers are supported throughout
Australia and via branches and subsidiaries located in New Zealand, New York, London, and Singapore. WIB works
with all the Group’s operating segments in the provision of markets’ related financial needs including foreign
exchange and fixed interest solutions.
Financial performance
$m202220212020
Net interest income 1,110 925 1,117
Non-interest income 1,139 1,313 1,428
Net operating income before operating expenses and impairment (charges)/benefits 2,249 2,238 2,545
Operating expenses(1,181)(2,595)(1,343)
Impairment (charges)/benefits(85)(162)(403)
Profit before income tax expense 983 (519) 799
Income tax expense(296)(14)(319)
Cash earnings 687 (533) 480
Net cash earnings adjustments- - -
Net profit attributable to owners of WBC 687 (533) 480
Deposits and other borrowings ($bn) 116.6 99.3 104.9
Net loans ($bn) 85.2 67.7 66.9
Total assets ($bn) 106.1 82.8 76.2
Total operating expenses to net operating income ratio (%) 52.51% 115.95% 52.77%

WESTPAC GROUP 2022 ANNUAL REPORT 128
Segment reporting
2022 v 2021
Cash earnings of $687 million were $1,220 million higher than 2021. This was mainly due to the write-down of
assets (goodwill, capitalised software and other assets) that reduced cash earnings by $991 million in 2021.
Excluding this impact, cash earnings were $229 million, or 50% higher than 2021. Lower expenses, an increase in
net interest income and lower impairment charges were partly offset by lower derivative valuation adjustments
(DVA) contribution.
Net interest
income up
$185 million, 20%
• Net loans increased $17.5 billion, or 26% with growth across infrastructure, M&A,
finance, property and renewable energy. Most growth was from deepening
relationships with existing customers and increased utilisation of their credit facilities,
with TCE up 11%;
• Deposits were up $17.3 billion, or 17% higher, across both term and transaction deposits.
Most of the transaction deposit increase was in government balances; and
• Net interest margin was up 1 basis point from improved deposit spreads which
benefited from higher interest rates and a $24 million increase in markets net interest
income. These were partly offset by higher liquidity and wholesale funding costs,
higher bank levy charges, and lower loan spreads.
Non-interest
income down
$174 million, 13%
• DVA was $185 million lower from a widening of counterparty credit spreads. In 2022,
DVA was $88 million negative compared to a gain of $97 million in 2021;
• Excluding DVA, non-interest income was $11 million, or 1%, higher from:
–$57 million increase in customer markets income across fixed income and FX due to
higher customer demand from increased market volatility;
–Partly offset by a $26 million decline in non-customer markets income, mostly in
credit markets; and
–Lower payments revenue from the prior exit of some non-core activities.
Operating
expenses down
$1,414 million, 54%
• The write-down of assets in 2021 resulted in additional expenses of $1,193 million.
Excluding this impact, expenses decreased $221 million, or 16% reflecting:
–Benefits from simplification, mostly the full period benefit of international
consolidation and operating model changes;
–Completion of some risk and compliance programs;
–Lower software amortisation and property costs following the write-downs in 2021;
and
–Higher capitalised investment spend largely focused on payments capabilities.
• Partly offset by an increase in staff expenses and the full year impact of higher
superannuation contributions.
Impairment
charges down
$77 million, 48%
• The lower impairment charge was due to significantly lower new IAP, partly offset
by a CAP charge from the increase in the downside weight and updates to modelled
economic scenarios; and
• Credit quality metrics improved with stressed exposures to TCE down 29 basis points
to 0.35% mainly due to the partial write-off of impaired exposures, including Forum
Finance early in the year.

WESTPAC GROUP
2022 ANNUAL REPORT
129
STRATEGIC REVIEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
Segment reporting
Westpac New Zealand
Westpac New Zealand provides banking, wealth and insurance products and services for consumer, business
and institutional customers in New Zealand. Westpac conducts its business through: Westpac New Zealand
Limited, which is incorporated in New Zealand, and Westpac Banking Corporation (New Zealand Branch), which
is incorporated in Australia. Westpac New Zealand operates through a network of branches and ATMs across the
North and South Islands. Business and institutional customers are also served through relationship and specialist
product teams. Westpac New Zealand maintains its own infrastructure, including technology, operations and
treasury.
All figures are in NZ$ unless noted otherwise.
Financial performance
NZ$m202220212020
Net interest income 2,278 2,118 1,943
Non-interest income 431 345 339
Net operating income before operating expenses and impairment (charges)/benefits 2,709 2,463 2,282
Operating expenses(1,158)(1,132)(1,059)
Impairment (charges)/benefits 27 84 (320)
Profit before income tax expense 1,578 1,415 903
Income tax expense(413)(402)(254)
Cash earnings 1,165 1,013 649
Net cash earnings adjustments 3 (3) 7
Net profit attributable to owners of WBC 1,168 1,010 656
Deposits and other borrowings ($bn) 77.9 75.9 71.0
Net loans ($bn) 96.8 92.6 88.0
Total assets ($bn) 118.9 112.4 104.2
Total funds ($bn) 10.9 12.0 12.2
Total operating expenses to net operating income ratio (%) 42.75% 45.96% 46.41%
AUD$m202220212020
Net interest income 2,106 1,987 1,832
Non-interest income 397 323 319
Net operating income before operating expenses and impairment (charges)/benefits 2,503 2,310 2,151
Operating expenses(1,072)(1,062)(998)
Impairment (charges)/benefits 25 79 (302)
Profit before income tax expense 1,456 1,327 851
Income tax expense(381)(377)(239)
Cash earnings 1,075 950 612
Net cash earnings adjustments 2 (2) 7
Net profit attributable to owners of WBC 1,077 948 619
Deposits and other borrowings ($bn) 68.6 72.5 65.7
Net loans ($bn) 85.3 88.4 81.4
Total assets ($bn) 104.7 107.1 96.4
Total funds ($bn) 9.6 11.5 11.3
Total operating expenses to net operating income ratio
1
(%) 42.75% 45.96% 46.41%

1. Ratio calculated using NZ$.

WESTPAC GROUP 2022 ANNUAL REPORT 130
Segment reporting
2022 v 2021
Cash earnings of NZ$1,165 million were NZ$152 million, or 15% higher than 2021, primarily driven by the
NZ$126 million gain on sale of the NZ Life. Excluding the gain on sale along with associated costs and remediation
provisions, cash earnings were NZ$26 million, or 2% lower, from a NZ$57 million decrease in impairment benefits,
lower non-interest income and higher regulatory, risk and compliance spending. This was partly offset by a
NZ$126 million increase in net interest income.
Net interest
income up
NZ$160 million, 8%
• Lower provisions for customer refunds and payments provided a benefit of
NZ$34 million. Excluding this impact, net interest income was NZ$126 million, or
6% higher;
• Net loans increased NZ$4.2 billion, or 5%, with a NZ$2.9 billion increase in mortgages
and a NZ$1.2 billion rise in business lending;
• Deposits increased NZ$2.0 billion, or 3%, as interest rates increased. Deposit growth
was concentrated in term deposits which increased NZ$4.0 billion while at call
accounts were NZ$2.0 billion lower; and
• Net interest margin was flat at 2.00% compared to 2021 but was 3 basis points lower
excluding customer refunds and payments. The decline was from competition for
mortgages which reduced lending spreads. This was partly offset by higher deposit
spreads benefiting from rising interest rates.
Non-interest
income up
NZ$86 million, 25%
• The gain on sale of NZ life insurance provided a NZ$126 million benefit. There was also
a benefit from lower provisions for customer refunds and payments compared to 2021;
and
• Excluding these, non-interest income was NZ$52 million or 15% lower reflecting:
– The loss of income following the sale of NZ life insurance;
– A reduction of fees on our investment funds, including KiwiSaver; and
– 2021 included a gain on sale of the Wealth Advisory business (NZ$8 million).
Operating
expenses up
NZ$26 million, 2%
• Costs related to the announced sale of NZ life insurance, write down of intangible
assets and costs associated with managing customer remediation programs increased
2021 costs by NZ$23 million. Excluding this item, expenses increased NZ$49 million,
or 4%, from increased regulatory, risk and compliance expenses, including to meet
the RBNZ’s BS11 outsourcing policy and investments in technology resilience, cyber
security and data capability. Staff expenses were also higher due to 239 more FTE and
higher average salaries.
Impairment
benefit down
NZ$57 million, 68%
• Continued to record an impairment benefit consistent with further improvement in
credit quality metrics across the portfolio. This benefit was lower than 2021 due to
increased overlays and updated modelled economic scenarios for higher interest rates
and increased inflation; and
• Credit quality metrics improved with stressed exposures to TCE down 22 basis points
to 0.97% supported by low unemployment. Mortgage 90+ day delinquencies were
down 8 basis points to 0.22% and other consumer 90+ day delinquencies were down
62 basis points to 1.03%, predominately from improvements in the hardship segment.

WESTPAC GROUP
2022 ANNUAL REPORT
131
STRATEGIC REVIEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
Segment reporting
Specialist Businesses
Specialist Businesses comprises the operations that Westpac has decided to exit. The sale of Australian life
insurance was completed in August 2022. In 2022, separate agreements were entered into to merge BT’s
personal and corporate superannuation funds through a successor fund transfer as well as the sale of Advance
Asset Management. These transactions are subject to regulatory approval, and if granted, the successor funds
transfer and sale are expected to complete in 2023. Other operations yet to be sold include wealth administration
platforms. Specialist Businesses also manages Westpac Pacific which provides a full range of banking services in
Fiji and Papua New Guinea. The segment operates under the Westpac, St.George, BankSA, Bank of Melbourne,
and BT brands.
$m202220212020
Net interest income 474 494 519
Non-interest income(152) 1,455 733
Net operating income before operating expenses and impairment (charges)/benefits 322 1,949 1,252
Operating expenses(1,047)(1,478)(1,547)
Impairment (charges)/benefits 67 66 (256)
Profit before income tax expense(658) 537 (551)
Income tax expense(61)(373) 14
Profit attributable to NCI(4)(2)(2)
Cash earnings(723) 162 (539)
Net cash earnings adjustments- - (31)
Net profit attributable to owners of WBC(723) 162 (570)
Deposits and other borrowings ($bn) 9.5 8.7 7.6
Net loans ($bn) 9.9 13.6 14.9
Total assets ($bn) 12.9 19.4 22.7
Total funds ($bn) 198.8 227.4 193.0
Total operating expenses to net operating income ratio (%) 325.16% 75.83% 123.56%

WESTPAC GROUP 2022 ANNUAL REPORT 132
Segment reporting
2022 vs 2021
Specialist Businesses reported a cash earnings loss of $723 million in 2022 compared to cash earnings of
$162 million in 2021. The reduction of $885 million was due to a $1,226 million impact related to asset sales
including the $1,120 million loss on completion of the sale of Australian life insurance and expenses associated
with the write-down of intangible assets in the unitised superannuation business along with additional provisions
for customer refunds, payments, litigation and associated costs.
Excluding the impact of these items, 2022 cash earnings were $503 million, $199 million or 28% lower compared
to 2021, mostly from the impact of businesses sold and lower life insurance revenues.
Net interest
income down
$20 million, 4%
• Excluding the impacts of customer refunds and payments, costs and litigation, and
asset sales and revaluations, net interest income was down $39 million, of which
$33 million relates to businesses sold.
• Excluding the sale of the auto wholesale dealer business ($1.0 billion), net loans
decreased $2.7 billion, or 21% primarily due to the run-off of the retail auto loan
portfolio (down $2.5 billion). Margin lending was also lower;
• Deposits increased $0.8 billion, or 9% mostly from higher deposits on platforms and a
rise in Westpac Pacific deposits; and
• Excluding the provision for customer refunds, net interest margin was up 35 basis
points mostly from lower funding costs in the auto finance portfolio and higher deposit
spreads in platforms as interest rates increased.
Non-interest
income down
$1,607 million, 110%
• Non-interest income includes the loss on completion of the sale of Australian life
insurance, other asset sales and revaluation impacts. Excluding these items, non-
interest income decreased $397 million or 32%;
• The reduction of income from businesses sold was $416 million;
– Life insurance income was $224 million lower from yield curve movements on life
insurance policyholder liabilities, higher claims and the loss of revenue following its
sale; and
–$192 million lower income from businesses that were exited in 2021.
• Superannuation, Platforms and Investments was $36 million lower from lower platform
margins and MySuper fee reductions. Partly offset by;
• Higher income from transitional service agreement payments and other income related
to businesses sold.
Operating
expenses down
$431 million, 29%
• Excluding the impacts from asset sales and revaluation, write-down of intangibles,
refund, payments, costs and litigation, expenses were $156 million, or 19% lower;
• Expenses related to businesses sold decreased $73 million, or 72%, due to timing of the
completion of sales and lower investment spend. Of these reductions, $15 million relate
to business sold in 2021; and
• Expenses related to ongoing business were down $83 million, or 11%, due to lower
investment spend and lower costs from simplification outcomes.
Impairment
benefits down
$1 million, 2%
• Similar impairment benefit to prior year due to low IAPs and a CAP benefit (from
improved underlying quality and the reduction in overlays);
• The ratio of stressed exposures to TCE increased 267 basis points to 9.08%, mainly due
to increased watchlist exposure in Westpac Pacific. Excluding Westpac Pacific, stressed
exposure to TCE reduced 10 basis points to 1.73%; and
• Similarly 90+ day delinquencies in auto finance increased 36 basis points, this was
due to portfolio roll-off (81 basis points) which is partly offset by underlying portfolio
performance (45 basis points).

WESTPAC GROUP
2022 ANNUAL REPORT
133
STRATEGIC REVIEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
Segment reporting
Group Businesses
This segment comprises:
• Treasury, which is responsible for the management of the Group’s balance sheet including wholesale
funding, capital and management of liquidity. Treasury also manages interest rate risk and foreign exchange
risks inherent in the balance sheet, including managing the mismatch between Group assets and liabilities.
Treasury’s earnings are primarily sourced from managing the Group’s balance sheet and interest rate risk,
(excluding Westpac New Zealand) within set risk limits.
• Enterprise services, which includes earnings on capital not allocated to segments, certain intra-group
transactions that facilitate presentation of performance, gains/losses from some asset sales, earnings and
costs associated with the Group’s fintech investments, costs associated with customer remediation for the
Advice business and certain other head office items including provisions. These costs are mainly retained in
Group Businesses.
• Corporate Services, which comprises shared corporate functions such as property, procurement, finance
services, corporate affairs, sustainability, and HR services. These costs are partly allocated to other segments in
the Group.
• Customer Services & Technology, which includes operations, call centres and technology. The majority of these
costs are allocated to other segments in the Group.
Financial performance
$m202220212020
Net interest income 903 835 902
Non-interest income 71 366 140
Net operating income before operating expenses and impairment (charges)/benefits 974 1,201 1,042
Operating expenses(906)(1,032)(2,380)
Impairment (charges)/benefits 2 (2) 170
Profit before income tax expense 70 167 (1,168)
Income tax expense(41)(175)(152)
Profit attributable to NCI(1)(3)-
Cash earnings 28 (11)(1,320)
Net cash earnings adjustments 416 108 (294)
Net profit attributable to owners of WBC 444 97 (1,614)
2022 v 2021
Cash earnings were a $28 million profit, compared with a loss of $11 million for 2021.
Net operating
income down
$227 million, 19%
• 2021 included gains from our investment in Coinbase Inc. and Zip Co. Limited
($562 million) and provisions for customer refunds and payments ($231 million).
• Excluding notable items, net operating income was up $104 million, or up 12%, primarily
driven by a better Treasury contribution.
Operating
expenses down
$126 million, 12%
• 2021 included provisions for customer refunds and payments ($176 million) and
performance fees related to gains in our investment in Coinbase Inc. ($120 million).
• 2022 includes provisions for customer refunds, payments and litigation costs
($72 million) and the write down of assets from a reduction in corporate office space
required ($118 million).
• Excluding notable items, expenses were down $20 million, or down 3%:
–Lower costs across most functions as we progress through our cost plans and
complete a number of strategic projects; partly offset by
–Higher amortisation and impairment of software assets; and
–Full period impacts of increases in variable reward.

WESTPAC GROUP 2022 ANNUAL REPORT 134
Risk and risk management
Risk and risk management
Risk management
Refer to Strategic Review for details of the Group’s Risk Management Framework.
Risk factors
Our business is subject to risks that can adversely impact our financial performance, financial condition and future
performance. If any of the following risks occur, our business, prospects, reputation, financial performance or
financial condition could be materially adversely affected, with the result that the trading price of our securities
or the level of dividends could decline and as a security holder you could lose all, or part, of your investment.
You should carefully consider the risks described (individually and in combination) and the other information in
this Annual Report and subsequent disclosures before investing in, or continuing to own, our securities. The risks
and uncertainties described below can emerge together or quickly in succession in a fashion that is uncorrelated
with the order in which they are presented below, and they are not the only ones we face. Additional risks and
uncertainties that we are unaware of, or that we currently deem to be immaterial, may also become important
factors that affect us.
For a discussion of our risk management framework and procedures, refer to ‘Risk management’ in Section 1 of
this Annual Report. For further detail on financial risk (including credit, funding and liquidity risk, and market risk),
refer to Note 22 to the financial statements.
Risks relating to our business
We have suffered, and could in the future suffer, information security risks, including cyberattacks
We (and other third parties that we engage with, including our external service providers, business partners,
customers and organisations that we acquire or invest in) face information security risks. These risks are
heightened by: the inherent risks in existing and new technologies; increasing digitisation of business processes
within, and transactions among, organisations; the increased volume of data, including sensitive data, that
organisations collect, generate, hold, use and disclose; the global increase in the sophistication, severity and
volume of cyber crime; supply chain disruptions; the prevalence of remote and hybrid working for employees,
staff of service providers, and customers; ongoing geo-political tensions or wars, including the military invasion of
Ukraine by Russia; and other external events such as acts of terrorism and attacks from State sponsored actors,
which could compromise our information assets and interrupt our usual operations and those of our customers,
suppliers and counterparties.
As a result of these factors, adverse information security events such as data breaches, cyberattacks, espionage
and/or errors are happening at an unprecedented pace, scale and reach. Cyberattacks or other information
security breaches have the potential to cause: financial system instability; serious disruption to customer banking
services; economic and non-economic losses to Westpac, our customers, shareholders, suppliers, counterparties
and others; and compromise data privacy of customers, shareholders, employees and others. While we have
systems in place to protect against, detect, contain and respond to cyberattacks and information security threats,
these systems have not always been, and may not always be, effective.
Westpac, its customers, shareholders, employees, suppliers, counterparties or others could suffer losses from
cyberattacks, information security breaches or ineffective cyber resilience. We may not be able to anticipate and
prevent a cyberattack, effectively respond to a cyberattack and/or rectify or minimise damage resulting from a
cyberattack. Our suppliers and counterparties, and other parties that facilitate our activities, financial platforms
and infrastructure (such as payment systems and exchanges or that hold data in relation to our existing or
potential customers), are also subject to the risk of cyberattacks and other information security breaches, which
could in turn impact Westpac. Furthermore, as the scale and volume of cyberattacks increases globally, there is
an increased likelihood that global and domestic regulators such as APRA, ASIC, the OAIC and the ACCC take
enforcement action for information security risk management failures, for failing to protect our information assets
(including customer and other data) or for deficiencies in our response to cyberattacks and information security
threats (including for any delayed, deficient, or misleading notifications or for misleading statements made about
our information security practices).
Our operations rely on the secure processing, storage and transmission of information on our computer systems
and networks, and the systems and networks of external suppliers. Although we implement measures to protect
the confidentiality, availability and integrity of our information, there is a risk that our information assets (including
the computer systems, software and networks on which we, or our customers, shareholders, employees, suppliers,
counterparties or others rely), may be subject to security breaches, unauthorised access, malicious software,
external attacks or internal breaches that could have an adverse impact on our and their confidential information.
A range of potential consequences could arise from a successful cyberattack or information security breach
(whether targeting Westpac or third parties), such as: damage to technology infrastructure; the potential use
of incident response and intervention powers by the Australian Government under the Security of Critical
Infrastructure Act 2018 (Cth); disruptions or other adverse impacts to network access, operations or availability
of services; loss of customers, suppliers and market share or reputational damage; loss of data or information;
cyber extortion; customer remediation and/or claims for compensation; breach of applicable laws and regulations

WESTPAC GROUP
2022 ANNUAL REPORT
135
STRATEGIC REVIEW
GROUP PERFORMANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
Risk and risk management
(including those relating to privacy, data protection and reporting obligations); increased vulnerability to fraud
and scams; litigation and adverse regulatory action including fines or penalties and increased regulatory scrutiny
and enforcement action; and additional costs and increased need for significant additional resources to modify or
enhance our systems and processes or to investigate and remediate any vulnerabilities or incidents.
All these potential consequences could have regulatory impacts and negatively affect our business, prospects,
reputation, financial performance or financial condition. As cyber threats evolve, we may need to spend significant
resources to modify or enhance our systems or investigate and remediate any vulnerabilities or incidents.
We could be adversely affected by legal or regulatory change
We operate in an environment where there is sustained regulatory change and ongoing scrutiny of financial
services providers. Our business, prospects, reputation, financial performance and financial condition have been,
and could in the future be, adversely affected by changes to law, regulation, policies, supervisory activities, the
expectations of our regulators, and the requirements of industry codes of practice, such as the Banking Code
of Practice.
Such regulatory changes may affect how we operate and have altered the way we provide our products and
services, in some cases requiring us to change or discontinue our offerings. These changes could also limit, and
have in the past limited, our flexibility, require us to incur substantial costs (such as costs of systems changes, or
the levies associated with the anticipated Compensation Scheme of Last Resort), impact the profitability of our
businesses, require the Group to retain additional capital, impact our ability to pursue strategic initiatives, result
in the Group being unable to increase or maintain market share and/or create pressure on margins and fees.
A failure to manage regulatory change effectively and in the timeframes required (which may be short) has
resulted, and could in the future result, in the Group not meeting its compliance obligations. It could also result
in enforcement action, penalties, fines, capital impacts and ultimately loss of business licences. Managing large
volumes of regulatory change simultaneously has created, and will continue to create, execution risk. Systems
changes can increase the risk of human error or unintended consequences (or system flaws) and this risk is
exacerbated by frequent requirements for change. We expect that we will continue to invest significantly in
compliance and the management and implementation of regulatory change. Significant management attention,
costs and resources may be required to update existing, or implement new, processes to comply with such
regulatory changes. The availability of skilled personnel required to implement changes may be limited.
There is additional information on certain aspects of regulatory changes affecting the Group in ‘Significant
developments’ and the sections ‘Critical accounting assumptions and estimates’ and ‘Future developments in
accounting standards’ in Note 1 to the financial statements.
We have been and could be adversely affected by failing to comply with laws, regulations or regulatory policy
We are responsible for ensuring that we comply with all applicable legal and regulatory requirements and industry
codes of practice in the jurisdictions in which we operate or obtain funding.
We are subject to conduct and compliance risk. These risks are exacerbated by the complexity and volume of
regulation, including where we interpret our obligations and rights differently to regulators or a Court, tribunal or
other body, or where applicable laws in different jurisdictions conflict. The potential for this is heightened when
regulation is new, untested or is not accompanied by extensive regulatory guidance.
Our compliance management system is designed to identify, assess and manage compliance risk. However,
this system has not always been, and may not always be, effective. Breakdowns have occurred, and may in the
future occur, due to flaws in the design or implementation of controls or processes, or when new measures are
implemented in short periods of time, for example in response to external events such as the COVID-19 pandemic.
This has resulted in, and may in the future result in, potential breaches of compliance obligations as well as poor
customer outcomes which have exposed, and may continue to expose, the Group to regulatory action, litigation
(including class action), damages, penalties and remediation obligations. As reviews and change programs are
progressed, compliance issues have been, and will likely continue to be, identified.
Conduct risk could occur through the provision of products and services to customers that do not meet
their needs or do not meet the expectations of the market, as well as the poor conduct of our employees,
contractors, agents, authorised representatives, credit representatives and external services providers. This could
occur through a failure to meet professional obligations to specific clients (including fiduciary and suitability
requirements), weakness in risk culture, corporate governance or organisational culture, poor product design
and implementation, failure to adequately consider customer needs or selling products and services outside of
customer target markets. This could include deliberate, reckless or negligent actions by such individuals that
could result in the circumvention of our controls, processes and procedures. We depend on our people to ‘do the
right thing’ to meet our compliance obligations and abide by our Code of Conduct. While we have frameworks,
policies, processes, training and controls that are designed to manage poor conduct outcomes, at times these
have been, and could in future be, ineffective. Inappropriate or poor conduct by individuals such as not following
a policy or engaging in misconduct has resulted, and could result, in poor customer outcomes and a failure by the
Group to meet our compliance obligations. This can be exacerbated by failures or delays in detecting or promptly
responding to breaches.

WESTPAC GROUP 2022 ANNUAL REPORT 136
Risk and risk management
The Group’s failure, or suspected failure, to comply with a compliance obligation, or to promptly detect or
remedy such a failure, has in the past and could in the future lead to a regulator commencing surveillance or
an investigation. ASIC’s expanded breach reporting regime, which commenced on 1 October 2021, has led to
a significant increase in our reporting to ASIC of certain breaches (or likely breaches), which could give rise to
additional regulatory scrutiny and action. Past compliance failures may increase the likelihood or severity of
regulatory action for subsequent failures. We are currently subject to a number of investigations and reviews
by regulators and are responding to a number of requests from APRA, ASIC and other regulators, involving
significant resources and costs.
Depending on the circumstances, regulatory reviews and investigations have in the past, and may in the future,
result in a regulator taking administrative or enforcement action against the Group and/or its representatives.
Regulators have broad powers, and in certain circumstances, can issue directions to us (including in relation to
product design and distribution and remedial action). Regulators could also pursue civil or criminal proceedings,
seeking substantial fines, civil penalties or other enforcement outcomes. For example, the payment in 2021 of a
civil penalty of $1.3 billion as a result of proceedings brought by AUSTRAC against Westpac; the payment of civil
penalties of $114.5 million in 2022 relating to seven proceedings which were settled with ASIC; and ASIC’s 2021
action against Westpac relating to its involvement in the 2016 Ausgrid privatisation transaction. Penalties can
be (and have been) more significant where it has taken some time to identify contraventions, or to investigate,
correct or remediate contraventions, where there are patterns of similar conduct, or where there has been
awareness of contraventions. In addition, regulatory investigations may lead to adverse findings against Directors
and management, including potential disqualification.
APRA can also require the Group to hold additional capital either through a capital overlay or higher risk weighted
assets. In 2019, APRA imposed a $500 million overlay to our operational risk capital requirement following the
completion of our self-assessment into our frameworks and practices in relation to culture, governance and
accountability, and a further $500 million overlay following the commencement of civil penalty proceedings by
AUSTRAC (both overlays were applied through an increase in risk-weighted assets). Both overlays continue to be
imposed. If the Group incurs additional capital overlays, we may need to raise additional capital, which could have
an adverse impact on our financial performance.
The political and regulatory environment that we operate in has seen (and may in the future see) our regulators
(including any new regulator) receive new powers along with materially (and potentially substantially) increased
penalties for corporate and financial sector misconduct, or failings. For example, recent and anticipated increases in
the civil penalties for certain contraventions (as discussed in ‘Significant Developments’) to the greater of $50 million;
three times the value of the benefit obtained; or where the value of the benefit cannot be determined, 30% of
adjusted turnover during the breach period. Given the size of Westpac, a failure by the Group may result in multiple
contraventions, which could lead to significant financial and other penalties. This could also result in reputational
damage and impact the willingness of customers, investors and other stakeholders to deal with Westpac.
There may also be a shift in the type and focus of enforcement proceedings commenced by regulators in the
future. Regulators may seek to refer investigations to the Commonwealth Department of Public Prosecutions
or other prosecutorial bodies for potential criminal prosecution. This may result in an increase in criminal
prosecutions against institutions and/or their employees or representatives. The civil penalty regimes were
expanded in 2019, with significant increases in applicable penalties. As a result, it is possible that civil penalty
proceedings may be brought more frequently by regulators for conduct after 2019, in a broader range of contexts,
and in circumstances where underlying conduct may not have been intentional, reckless or systemic. ASIC can
commence civil proceedings and seek civil penalties (currently up to $555 million per contravention) against an
Australian financial services licensee for failing to do all things necessary to ensure that the financial services
provided under the licence are provided honestly, efficiently and fairly.
Regulatory investigations or actions commenced against the Group have exposed, and may in the future expose,
the Group to an increased risk of litigation brought by third parties (including through class action proceedings),
which may require us to pay compensation to third parties and/or undertake further remediation activities. In
some cases, the amounts claimed and/or to be paid may be substantial.
We have incurred significant remediation costs on a number of occasions (including compensation payments and
costs of correcting issues) and new issues may arise requiring remediation. We also have, and may continue to
have, challenges and risk in relation to remediation activities such as effectively and reliably scoping, quantifying,
implementing or completing remediation activities, including determining how to compensate impacted parties
properly and fairly, and the challenges and risks of completing these activities in a timely way. Remediation
activities may be affected or delayed by a number of events or considerations, such as the number of customers
(or other parties) affected, where customers commence litigation (including class action proceedings), where a
regulator requires a remediation to be done in a specific way or timeframe, or difficulties in locating or contacting
affected parties. Investigation of the underlying issue may be impeded due to the passage of time, technical
system constraints, or if our records are inadequate. Remediation programs may not prevent regulatory action,
litigation or other proceedings from being pursued, or sanctions being imposed.
Regulatory investigations, inquiries, litigation, fines, penalties, infringement notices, revocation, suspension
or variation of conditions of regulatory licences or other enforcement or administrative action or agreements
(such as enforceable undertakings) have and could, either individually or in aggregate with other regulatory
action, adversely affect our business, prospects, reputation, financial performance or financial condition. There
is additional information on certain aspects of regulatory matters that may affect the Group in ‘Significant
developments’ and in Note 26 to the financial statements.

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FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
Risk and risk management
We have suffered, and in the future could suffer, losses and be adversely affected by the failure to
implement effective risk management
Our risk management framework has not always been, and may not in the future be, effective, and the resources
we have in place for identifying, escalating, measuring, evaluating, monitoring, reporting and controlling or
mitigating material risks may not always be adequate.
This could be because the design of the framework is inadequate or key risk management policies, controls and
processes may be ineffective due to inadequacies in their design, technology failures, incomplete implementation
or embedment, or failure by our people (including contractors, agents, authorised representatives and credit
representatives) to comply with our policies and processes. The potential for these types of failings is heightened
if we do not have appropriately skilled, trained and qualified people in key positions or we do not have sufficient
capacity, including people, processes and technology, to appropriately manage risks.
There are also inherent limitations with any risk management framework as risks may exist, or emerge in the
future, that we have not anticipated or identified.
Further, the design or operation of our remuneration structures and consequence management processes may not
always sufficiently encourage the right risk culture, behaviours, or prudent risk management as intended, which
could also result in staff engaging in excessive risk-taking behaviours.
The risk management framework may also prove ineffective because of weaknesses in risk culture or risk
governance practices and policies (for example, where there is a lack of awareness of our policies, controls and
processes or where they are not adequately monitored, audited or enforced). This may result in poor decision
making or risks and control weaknesses not being identified, escalated or acted upon.
We are required to periodically review our risk management framework to determine if it remains appropriate.
Past analysis and reviews, in addition to regulatory feedback, have highlighted that while there have been
improvements, the framework is still not operating satisfactorily in a number of respects and needs continued
focus. We have a number of risks which sit outside our risk appetite or do not meet the expectations of regulators,
including, for example, fraud and scams, records management, third party arrangements, data, change execution,
models and conduct risk (including product design, hardship and privacy).
As part of our risk management framework, we measure and monitor risks against our risk appetite. When a risk is
out-of-appetite (as some risks are), the Group needs to take steps to bring this risk back into appetite in a timely
way. This may include steps to improve the design of our risk class frameworks and supporting policies. However,
we may not always be able to bring a risk back within appetite within proposed timeframes or institute effective
improvements. This may occur because, for example, the Group experiences delays in enhancing our information
technology systems, in recruiting sufficient appropriately trained staff for required activities or operational failure.
It is also possible that due to external factors beyond our control, certain risks may be inherently outside of
appetite for periods of time.
Weaknesses in risk management systems and controls may also result in regulatory action. For example,
APRA requiring Westpac to hold additional capital as discussed above. In December 2020, APRA accepted an
Enforceable Undertaking from Westpac, reflecting the crystallisation of many of the risks discussed above. APRA
has approved Westpac’s Integrated Plan in relation to risk governance and remediation. Promontory Australia
was appointed as the Independent Reviewer to provide regular updates to APRA on Westpac’s compliance with
the Enforceable Undertaking and the Integrated Plan. These reports are provided quarterly and published on our
website every six months at https://www.westpac.com.au/about-westpac/media/core/.
If any of our governance or risk management processes and procedures prove ineffective or inadequate or are
otherwise not appropriately implemented or we do not bring risks into appetite as has occurred, we could be
exposed to higher levels of risk than expected and sustained or increased regulatory scrutiny. This may result in
losses, imposition of capital requirements, breaches of compliance obligations, fines and reputational damage
which could adversely affect our business, prospects, financial performance or financial condition or require
remediation.
We could suffer losses due to geopolitical risks, environmental and social risk factors or external events
The Group may face changes in the external business environment including competitive, regulatory, economic,
geopolitical, technological, social and environmental changes. There is a risk that the Group does not identify,
understand or respond effectively to such changes or that these changes have an adverse impact on the Group’s
ability to pursue its strategic agenda.
We and our customers operate businesses and hold assets in a diverse range of geographic locations. Geopolitical
risks are increasing, including those arising from geopolitical instability, conflicts, strategic competition, trade
tensions, trade tariffs, sanctions, social disruption (including civil unrest, war and terrorist activity), acts of civil or
international hostility, and complicity with or reluctance to take action against certain types of crimes. We are also
exposed to risks arising from significant environmental change or other external events including climate change,
natural capital loss, water scarcity, rising sea levels, extreme weather events (such as drought, bushfire, flood and
storm), and outbreaks or pandemics (such as COVID-19).

WESTPAC GROUP 2022 ANNUAL REPORT 138
Risk and risk management
Such an event has the potential to hinder domestic and international economic stability and adversely impact
economic activity. It could impact consumer and investor confidence, and disrupt numerous industries,
businesses, service providers and supply chains. It could lead to shortages of materials and labour and/or cost
increases, price volatility or supply interruption in commodities (including metals and energy), volatility in
financial markets including currencies, damage to property, affect asset values and impact our ability to recover
amounts owing to us. All of these impacts could adversely affect our business, prospects, financial performance or
financial condition.
The high dependency of the global economy on nature means natural capital loss represents a risk to Westpac,
primarily through our exposure to customers in sectors that are materially dependent or impact on nature. Natural
capital loss can also contribute to, and be accelerated by, climate change and these risks can be interdependent.
Increasing recognition and market-based responses to this risk also create heightened regulatory and stakeholder
expectations on Westpac. We acknowledge the goal of the Taskforce on Nature-related Financial Disclosures is to
develop and deliver a risk management and disclosure framework for organisations to report on evolving nature-
related risks.
Our business may be exposed to social and human rights risks through our activities and business relationships
including in our operations and supply chain. If we fail to adequately identify and manage these risks, we may
cause, contribute to, or be directly linked to adverse social and human rights impacts including a risk that we may
provide financial services to institutional, business and retail customers that perpetrate, rely on, or benefit from
human rights abuses or exploit our financial platforms and products for criminal purposes.
Data sources relevant to our assessment and management of environmental and social risks continue to mature. If
those data sources do not mature at sufficient pace, or are not sufficiently available or reliable, there is a risk that
our decision making (including target setting and reporting) in areas reliant on this data could be affected, such
as by outdated or incorrect assumptions or modelling.
Please refer to ‘Sustainability’ (‘Natural capital’) for further details on the identification, assessment and
management of Natural capital risks and ‘Sustainability’ (‘Human Rights’), both in Section 1 of this Annual Report,
for further details on the identification, assessment, and management of Human Rights risks.
Climate change may have adverse effects on our business
Climate-related risks have had, and are likely to have, adverse effects on our Group, customers, external suppliers,
and the communities in which we operate. There are significant uncertainties inherent in accurately identifying
and modelling climate-related risks and opportunities over short-, medium- and long-term time horizons and in
assessing their impact. These risks may manifest as physical risks, both acute and chronic in nature, transition
risks, and risks related to legal liability and regulatory action.
Physical risks include increases and variability in temperatures, changes in precipitation patterns, rising sea levels,
loss of natural capital, and increased frequency and severity of adverse climatic events, including fires, storms,
floods and droughts. These may impact us and our customers through, for example, disruptions to business and
economic activity, inability to access insurance and/or impacts on income and asset values. Adverse impacts
on our customers may also, in turn, increase human rights risk, increase the number of people in vulnerable
circumstances, and negatively impact loan serviceability and security values, as well as our profitability.
Transition risks may arise from initiatives and trends associated with climate change mitigation and the
transition to a low carbon economy, changes in investor appetite, shifting customer preferences, technological
developments, changes in supervisory expectations of banks, and other regulatory and policy changes. Transition
risks could directly impact Westpac by, for example, giving rise to higher compliance and/or funding costs, the
contraction of revenue from sectors materially exposed to transition risk, and potential legal or regulatory risk.
We are also indirectly exposed to transition risk through our lending to higher risk sectors or regions and our own
transition pathway. Transition risks may place additional pressure on certain customer sectors, including pressure
to reduce greenhouse gas emissions, that could result in loss of revenue and result in increased credit risk to
Westpac. Conversely, Westpac may not be able to reduce our lending to higher risk sectors or regions, as a result
of possible stakeholder requirements to continue to lend to certain customer sectors.
Westpac’s ambition to become a net-zero, climate resilient bank, including joining the NZBA and setting interim
2030 sector targets has, and will, require ongoing changes to the Group’s lending and operational policies and
processes and may present execution risk. Our ability to meet our commitments and targets is dependent on
the orderly transition of the economy towards net-zero, which may be impacted by external factors including
government climate policy, the level of public and private investment, electricity grid transmission capacity, and
constraints in the development and supply of technology, infrastructure and skilled labour required to deliver new
renewable projects, including power generation.
Failure or perceived failure to adapt the Group’s strategy, governance, procedures, systems and controls to
proactively manage or disclose evolving climate- and sustainability-related risks and opportunities (including,
for example, perceived misstatement of, or failure to adequately implement or meet, sustainability claims,
commitments and/or targets) may give rise to business, reputational, legal and regulatory risks. This includes
financial and credit risks that may impact on our profitability and outlook, and the risk of regulatory action or third
party and shareholder litigation (including class actions) against the Group (and/or our customers), with these
types of actions becoming more common.

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FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
Risk and risk management
We may also be subject, from time to time, to legal and business challenges due to actions instituted by activist
shareholders or others. Examples of areas which have attracted shareholder activism and challenges include: the
finance of or interaction with businesses that are perceived to be at greater risk from physical and transition risks
of climate change or are perceived to not demonstrate responsible management of climate change, environmental
and social issues; disclosure of climate- and sustainability-related risks; and setting and implementing appropriate
climate change and environmental strategies (including net-zero or emissions reductions strategies, targets
and policies).
Scrutiny from Australian, New Zealand and global regulators and shareholders on the climate-related risk
management practices, lending policies, targets and commitments, and other sustainability products, claims
and marketing practices of banks and other financial institutions, will likely remain high in coming years.
Increased focus by and collaboration between local and global regulators on climate change and sustainability
factors increases compliance, legal and regulatory risks, and costs. Applicable legal and regulatory regimes,
policies, and reporting and other standards are also evolving (alongside science, technology, research and
development) and are likely to continue to do so over time. Examples of regulatory developments in this
space include: APRA’s Climate Vulnerability Assessment involving major Australian banks including Westpac;
APRA’s Prudential Practice Guide on climate change financial risks and Climate Risk Self-Assessment Survey;
the EU’s introduction of Sustainability Financial Disclosure Regulations and changes to Basel Pillar 3 disclosure
obligations; international policy consideration of capital regulatory requirement updates to account for climate-
and sustainability-related prudential risks; New Zealand’s introduction of mandatory climate-risk reporting
legislation for the financial sector and associated disclosure standards; AASB’s proposed approach to developing
sustainability-related financial reporting standards in Australia; International Sustainability Standards Board’s
proposed introduction of IFRS S1 General Requirements for Disclosure of Sustainability-related Financial
Information and IFRS S2 Climate-related Disclosures; the US SEC’s proposed introduction of enhanced and
standardised mandatory climate-related disclosures; and increased compliance and enforcement focus by ASIC
and ACCC and other regulators on a range of issues relating to sustainability, including active monitoring and
investigation of environmental or sustainability claims.
Please refer to ‘Sustainability’ (‘Climate Change’) in Section 1 of this Annual Report and our Climate Change
Action Plan for further details on the identification, assessment and management of climate-related risks.
The failure to comply with financial crime obligations has had, and could have further, adverse effects
on our business and reputation
The Group is subject to anti-money laundering and counter-terrorism financing (AML/CTF) laws, anti-bribery
and corruption laws, economic and trade sanctions laws and tax transparency laws in the jurisdictions in which it
operates (Financial Crime Laws). These laws can be complex and, in some circumstances, impose a diverse range
of obligations. As a result, regulatory, operational and compliance risks are heightened.
Financial Crime Laws require Westpac to report certain matters and transactions to regulators (such as
international funds transfer instructions, threshold transaction reports and suspicious matter reports) and ensure
that we know who our customers are and that we have appropriate ongoing customer due diligence in place. The
failure to comply with some of these laws has had, and in the future could have, adverse impacts for the Group.
The Group operates within a landscape that is constantly changing, particularly with the emergence of new
payment technologies, increased regulatory focus on digital assets (e.g. cryptocurrency), increasing reliance on
economic and trade sanctions to manage issues of international concern, and the rapid increase of ransomware
and cyber extortion attacks. These developments bring with them new financial crime risks for the Group (as well
as other risks), which may require adjustments to the Group’s systems, policies, processes and controls.
In recent years there has been, and there continues to be, a focus on compliance with financial crime obligations,
with regulators globally commencing investigations and taking enforcement action for identified non-compliance
(often seeking significant penalties). Further, due to the Group’s scale of operations, an undetected failure or
the ineffective implementation, monitoring or remediation of a system, policy, process or control (including a
regulatory reporting obligation) has resulted, and could in the future result, in a significant number of breaches
of AML/CTF or other financial crime obligations. This in turn could lead to significant financial penalties and other
adverse impacts for the Group, such as reputational damage and litigation risk.
While the Group has systems, policies, processes and controls in place designed to manage its financial crime
obligations (including reporting obligations), these have not always been, and may not in the future always be,
effective. This could be for a range of reasons, including, for example, a deficiency in the design of a control or
a technology failure or a change in financial crime risks or typologies. Our analysis and reviews, in addition to
regulator feedback, have highlighted that our systems, policies, processes and controls are not always operating
satisfactorily in a number of respects and require improvement. We continue to have an increased focus on
financial crime and our management of this risk and, as such, further issues requiring attention have been
identified and may continue to be identified.
Although the Group provides updates to AUSTRAC, the ATO, RBNZ and other regulators on its remediation
and other program activities, there is no assurance that AUSTRAC, the ATO, RBNZ or other regulators will
agree that its remediation and program update activities will be adequate or effectively enhance the Group’s
compliance programs.

WESTPAC GROUP 2022 ANNUAL REPORT 140
Risk and risk management
If we fail to comply with our financial crime obligations, we have faced, and could in the future face, significant
regulatory enforcement action and other consequences as discussed in the ‘We have been and could be adversely
affected by failing to comply with laws, regulations or regulatory policy’ risk factor and increased reputational
risks as discussed in the risk factor entitled ‘Reputational damage has harmed, and could in the future harm, our
business and prospects’. There is additional information on financial crime matters in ‘Significant developments’.
Reputational damage has harmed, and could in the future harm, our business and prospects
Reputational risk arises where there are differences between stakeholders’ current and emerging perceptions,
beliefs and expectations and our past, current and planned activities, processes, performance and behaviours.
There are various potential sources of reputational damage. For example, where our actions cause, or are
perceived to cause, a negative outcome for customers, shareholders, stakeholders or the community. Reputational
damage could also arise from the failure to effectively manage risks, failure to comply with legal and regulatory
requirements, enforcement or supervisory action by regulators, adverse findings from regulatory reviews, failure
or perceived failure to adequately respond to community, environmental, social and ethical issues, and inadequate
record keeping, which may prevent Westpac from demonstrating that, or determining if, a past d
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Westpac Self-Funding Instalments over securities in MQG Westpac 2022 AGM email to shareholders

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