Westpac 2023 Interim Financial Results Announcement

ASX
Release



8 May 2023

Westpac 2023 Interim Financial Results Announcement (incorporating
requirements of Appendix 4D)

Westpac Banking Corporation (“Westpac”) today provides the attached Westpac 2023
Interim Financial Results Announcement (incorporating requirements of Appendix 4D).









For further information:

Hayden Cooper Justin McCarthy
Group Head of Media Relations General Manager, Investor Relations
0402 393 619 0422 800 321


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. 

Incorporating the requirements of Appendix 4D.
Westpac Banking Corporation ABN 33 007 457 141.
2023
INTERIM
FINANCIAL
RESULTS
For the six months
ended 31 March 2023.

iiWESTPAC GROUP 2023 INTERIM FINANCIAL RESULTS
Results Announcement to the market
ASX Appendix 4D
Results for announcement to the market
1

Report for the half year ended 31 March 2023
2
Revenue from ordinary activities
3,4
($m)up8%to$11,003
Profit from ordinary activities after tax attributable to equity holders
4
($m)up22%to$4,001
Net profit for the period attributable to equity holders
4
($m)up22%to$4,001
Dividend Distributions (cents per ordinary share)
Amount per
security
Franked amount
per security
Interim dividend7070
Record date for determining entitlements to the dividend
12 May 2023
1.This document comprises the Westpac Group 2023 Interim Financial Results, including the 2023 Interim Financial Report contained in
Section 3 and is provided to the Australian Securities Exchange under Listing Rule 4.2A.
2.This report should be read in conjunction with the 2022 Westpac Group Annual Report and any public announcements made in the
period by the Westpac Group in accordance with the continuous disclosure requirements of the Corporations Act 2001 and ASX
Listing Rules.
3.Comprises reported interest income, interest expense and non-interest income.
4.Above comparisons are to the reported results for the six months ended 31 March 2022.

1 REVIEW OF GROUP

OPERATIONS
2 SEGMENT REPORTING
3
2023 INTERIM

FINANCIAL REPORT
4
OTHER INFORMATION
5 GLOSSARY
WESTPAC GROUP

2023 INTERIM FINANCIAL RESULTS
iii
Results Announcement to the market
Introduction
Our interim period refers to the six months ended 31 March 2023 (First Half 2023). Throughout this Interim
Financial Results Announcement, we also refer to the six months ended 31 March 2022 (First Half 2022) and the
six months ended 30 September 2022 (Second Half 2022).
The selected financial information for First Half 2023, First Half 2022 and Second Half 2022 contained in this
Interim Financial Results Announcement is based on the financial statements contained in the unaudited
consolidated Interim Financial Report for Westpac Banking Corporation (Westpac) and its controlled entities
(collectively referred to as ‘the Group’) for the six months ended 31 March 2023. The Interim Financial Report has
been prepared and presented in accordance with Australian Accounting Standards (AAS) as they relate to interim
financial reports. The Interim Financial Report also complies with International Financial Reporting Standards
(IFRS) as issued by the International Accounting Standards Board (IASB) as they relate to interim financial
reports.
This report contains statements that constitute ‘forward-looking statements’. For an explanation of forward-
looking statements and the risks, uncertainties and assumptions to which they are subject, see ‘Other information’
in Section 4. Please consider those important disclaimers when reading the forward-looking statements in
this report.
All dollar values in this Interim Financial Results Announcement are in Australian dollars unless otherwise noted.
Information on terms, acronyms and calculations used in this report are provided in the Glossary within Section 5
of the document.
Non-AAS financial measures
The Group’s statutory results are prepared in accordance with AAS and are also compliant with IFRS.
In assessing the Group’s performance and that of our operating segments we use a number of financial measures,
including amounts, measures and ratios that are presented on a non-AAS basis, as described below.
Non-AAS financial measures and ratios do not have standardised meanings under AAS. As such they are unlikely
to be directly comparable to similar measures presented by other companies and should not be viewed in
isolation from, or as a substitute for, the AAS results.
Our non-AAS measures fall within the following categories:
Measure/ratioDescription
Further
information
Performance
measures excluding
the impact of Notable
Items, businesses sold
and/or held-for-sale
profit
The net interest income, non-interest income, operating expenses
and segment reporting sections of this report include performance
measures that exclude Notable Items, businesses sold and/or held-for-
sale profit.
Notable Items are items that management believes are not reflective
of the Group’s ongoing business performance. Details of Notable Items
are included in Section 1.4.
Businesses sold reflect the contribution to the Group’s results in the
period of businesses sold prior to their sale. It also includes any gains/
losses related to their sale but excludes items that have been identified
as Notable Items.
Held-for-sale profit reflects the contribution to the Group’s results in
the period of businesses that are held-for-sale. For the period ending
31 March 2023 there were no businesses held-for-sale and therefore no
held-for-sale profit.
Performance measures which are adjusted for one or more of these
items include:
• Net interest income
• Non-interest income (including net fee income, net wealth
management and insurance income, trading income and other
income)
• Operating expenses (including staff expenses, occupancy
expenses, technology expenses and other expenses)
• Pre-provision profit
Management considers this information useful as these measures
provide a view that reflects the Group’s ongoing business performance.
Sections 1.4,
1.5.2, 1.5.5,
1.5.8 and
2.1-2.4

ivWESTPAC GROUP 2023 INTERIM FINANCIAL RESULTS
Results Announcement to the market
Measure/ratioDescription
Further
information
Pre-provision profitPre-provision profit is net profit/(loss) excluding credit impairment
(charges)/benefits and income tax (expense)/benefit.
This is calculated as net interest income plus non-interest income
less operating expenses. This includes (charges)/benefits relating to
provisions and impairment other than from expected credit losses.
Management considers this information useful as this measure
provides readers with a view of the impact of the operating
performance of the Group.
Section 2.0
-2.5 and 4.9
Core net interest
income and Core NIM
Core net interest income is calculated as net interest income excluding
Notable Items, and Treasury and Markets.
Core NIM is calculated as Core net interest income (annualised where
applicable) divided by average interest earning assets.
Management considers this information useful as this measure
provides a view of the underlying performance of the Group’s net
interest margin for lending, deposit and funding.
Sections 1.3
and 1.5.2
Dividend payout ratio
(excluding Notable
Items)
Calculated as ordinary dividend paid/declared on issued shares (net
of Treasury shares) divided by the net profit attributable to owners of
WBC excluding Notable Items.
Management considers this information useful as this measure
provides a view of the dividend payout ratio based on the ongoing
business performance of the Group.
Section 1.1
Expense to income
ratio (excluding
Notable Items)
Calculated as operating expenses excluding Notable Items divided by
net operating income excluding Notable Items.
Management considers this information useful as this measure
provides a view of the efficiency of the ongoing business performance
of the Group.
Sections 1.3
and 4.9
Average tangible
ordinary equity and
Return on average
tangible ordinary
equity (ROTE)
Average tangible ordinary equity is calculated as average ordinary
equity less, average goodwill and other intangible assets (excluding
capitalised software).
Return on average tangible ordinary equity is calculated as net profit
attributable to owners of WBC (annualised where applicable) divided
by average tangible ordinary equity.
Management considers this information useful as these measures are
commonly used internally as well as by investors, analysts and others
in assessing the Group’s use of equity.
Sections 1.3
and 4.9

1 REVIEW OF GROUP

OPERATIONS
2 SEGMENT REPORTING
3
2023 INTERIM

FINANCIAL REPORT
4
OTHER INFORMATION
5 GLOSSARY
WESTPAC GROUP

2023 INTERIM FINANCIAL RESULTS
v
Results Announcement to the market
Presentation changes
In 2022 and earlier reporting periods the Group reported a non-AAS financial measure of profit referred to as
“cash earnings” as well as reporting “Notable Items” and a further non-AAS profit measure excluding these
Notable Items in both external and internal reporting.
In First Half 2023 the Group ceased reporting cash earnings and cash earnings excluding Notable Items and will
use net profit attributable to owners of WBC (net profit) as the Group’s key measure of financial performance.
Comparatives have been revised accordingly.
To assist in explaining the Group’s financial performance, the Group will continue to report Notable Items which
represent certain items that management believe are not reflective of the Group’s ongoing business performance.
Cash earnings adjustments to net profit in prior periods included:
• Fair value (gain)/loss on economic hedges (which do not qualify for hedge accounting under AAS) which may create
a material timing difference on reported results but do not affect the Group’s earnings over the life of the hedge.
• The net ineffectiveness on qualifying hedges arises from the fair value movement in these hedges which
reverses over time and therefore does not affect the Group’s profits over time.
These items are now reported as Notable Items and comparatives have been revised accordingly. Notable Items
are explained further in Section 1.4.
Cash earnings adjustments which reclassified amounts between individual line items but did not impact net cash
earnings ceased in First Half 2023 and comparatives have been revised.
The Group will not report an adjusted measure of profit excluding Notable Items.
This Results Announcement is unaudited
PricewaterhouseCoopers has reviewed the financial statements and accompanying notes contained within
Section 3 of this Results Announcement and has issued an unmodified review report. All other sections,
including the Directors’ Report in Section 3 of the Results Announcement have not been subject to review by
PricewaterhouseCoopers. The financial information contained in this Results Announcement includes information
extracted from the reviewed financial statements together with information that has not been reviewed.

viWESTPAC GROUP 2023 INTERIM FINANCIAL RESULTS
Results Announcement to the market
Index
1.0Review of Group operations1
1.1 Performance overview1
1.2 Performance summary5
1.3 Key financial information5
1.4 Impact of Notable Items7
1.5 Review of earnings9
1.6 Credit quality24
1.7 Balance sheet and funding27
1.8 Capital and dividends31
1.9 Sustainability performance summary37
2.0Segment reporting40
2.1.1 Consumer43
2.1.2 Business46
2.2 Westpac Institutional Bank (WIB)49
2.3 Westpac New Zealand52
2.4 Specialist Businesses56
2.5 Group Businesses60
3.02023 Interim financial report62
3.1 Directors’ report63
3.2 Consolidated income statement82
3.3 Consolidated statement of comprehensive income83
3.4 Consolidated balance sheet84
3.5 Consolidated statement of changes in equity85
3.6 Consolidated cash flow statement86
3.7 Notes to the consolidated financial statements87
3.8 Statutory statements119
4.0Other information122
4.1 Disclosure regarding forward-looking statements122
4.2 References to websites124
4.3 Credit ratings124
4.4 Dividend reinvestment plan124
4.5 Information on related entities124
4.6 Financial calendar and Share Registry details125
4.7 Exchange rates128
4.8 Net profit contribution of businesses sold129
4.9 Additional information for Non-AAS financial measures130
5.0Glossary132

1 REVIEW OF GROUP

OPERATIONS
2 SEGMENT REPORTING
3
2023 INTERIM

FINANCIAL REPORT
4
OTHER INFORMATION
5 GLOSSARY
WESTPAC GROUP

2023 INTERIM FINANCIAL RESULTS
vii
Results Announcement to the market
In this Interim Financial Results Announcement (Results Announcement) references to ‘Westpac’, ‘WBC’,
‘Westpac Group’, ‘the Group’, ‘we’, ‘us’ and ‘our’ are to Westpac Banking Corporation and its controlled entities,
unless it clearly means just Westpac Banking Corporation.
Financial calendar
Interim Results Announcement released 8 May 2023
Ex-dividend date for interim dividend 11 May 2023
Record date for interim dividend 12 May 2023
Interim dividend payable 27 June 2023
Final Results Announcement (scheduled) 6 November 2023

viiiWESTPAC GROUP 2023 INTERIM FINANCIAL RESULTS
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1
1 REVIEW OF GROUP

OPERATIONS
2 SEGMENT REPORTING
3
2023 INTERIM

FINANCIAL REPORT
4
OTHER INFORMATION
5 GLOSSARY
WESTPAC GROUP

2023 INTERIM FINANCIAL RESULTS
Review of Group operations
1.0 Review of Group operations
1.1 Performance overview
Financial highlights

$4,001m
Net profit, up 22% on 1H22
11.3%
ROE, up 205bps on 1H22
70 cents
Dividend per share,
fully franked up 15% on 1H22
12.3%
CET1 capital ratio, up 95bps on Mar-22
1H23 results overview
1
The Group delivered a net profit of $4,001 million, up 22% on the prior corresponding period. Our improved financial
performance reflects the benefit of a higher net interest margin, growth in home and business loans together with
ongoing cost discipline. This was tempered by a rise in provisions for loan losses. Our performance drove a material
improvement in both ROE and ROTE, which rose 205 basis points to 11.3% and 229 basis points to 12.8% respectively.
Our interim dividend of 70 cents per share was up 15%, representing a payout ratio of 61%. Excluding Notable
Items, the payout ratio was 64% which is marginally below the sustainable payout ratio range of 65% to 75%.
Our balance sheet position was strengthened, which positions us well for the more challenging economic
environment with capacity for growth. Our CET1 capital ratio of 12.3% provides $3.6 billion of capital above
the top end of the target range of 11.5%. The liquidity coverage ratio (LCR) and net stable funding ratio (NSFR)
were 135% and 119% respectively, well above regulatory minimums. Our deposit to loan ratio increased to 83.7%,
supported by deposit growth of $26.7 billion which funded most of the $30.4 billion increase in loans. In addition,
impairment provisions of $4.9 billion were approximately $1.5 billion above the expected losses of our base case
economic scenario.
Investment spend was $868 million with 38% directed towards growth and productivity initiatives, up from 31%. This
included the roll-out of our mortgage origination platform, enhancing digital capability, as well as the continued
development of our corporate cash management platform. Our regulatory compliance agenda remains a priority
and was a significant proportion of spend. As we have made progress, risk and regulatory investment spend
decreased 18%.
Outlook
The rising cost of living, including the impact of higher interest rates is being increasingly felt by households
and businesses across Australia and New Zealand. As Australia’s first bank, we are supporting customers facing
these headwinds.
Westpac is navigating this environment from a position of strength. Our balance sheet, and the Australian financial
system more broadly, is in a sound position. We are strongly capitalised with liquidity and funding to support
household and business customers.
The Australian economy remains resilient with unemployment at 50-year lows, population growth supported by
accelerating immigration and stabilising house prices. While interest rates are nearing their expected peak in both
Australia and New Zealand, the lagged impact of rapid monetary policy tightening is yet to be felt fully. This is
particularly the case for customers transitioning from fixed to variable rate mortgages in coming periods.
Economic growth is expected to be positive, however it is likely to slow further during the remainder of 2023.
Unemployment is likely to rise and we expect credit growth, both household and business, to slow further.
1. Unless otherwise stated, all figures relate to the half year ended March 2023 with the comparative period the half year ended 31 March 2022.

2
WESTPAC GROUP 2023 INTERIM FINANCIAL RESULTS
Review of Group operations
Improved financial performance
1
Pre-provision profit was $6,015 million, up 24% compared to the prior corresponding period, driven by an 8%
increase in operating income and a 7% reduction in operating expenses.
24%
Pre-provision profit
• Group net interest margin (Group NIM) was up 5 basis points to 1.96%.
–Core NIM expanded 20 basis points to 1.90% from wider deposit
spreads and higher return on capital balances. This was partly
offset by tighter loan spreads due to intense competition as well
as the significant increase in lower returning liquid assets as we
accumulated additional High Quality Liquidity Assets (HQLA)
in response to the phase-out of the RBA’s Committed Liquidity
Facility (CLF);
–Lower Treasury and Markets income reduced Group NIM by
7 basis points; and
–The impact of Notable Items decreased Group NIM by 8 basis points.
• Net interest income increased 10% to $9,113 million. This reflects the
increase in Group NIM and a 7% increase in average interest earning
assets. Growth was driven by owner occupied mortgages, loans to
business customers across the commercial property and agriculture
sectors and all sectors in institutional banking. Average liquid assets
were also 15% higher.
• Non interest income of $1,890 million was 3% lower driven by
Notable Items and the impact of businesses sold. Excluding these
items, non-interest income increased 3% to $1,529 million, driven by
higher Markets income.
• Operating expenses of $4,988 million were 7% lower, driven in part
by businesses sold. Operating expenses excluding Notable Items
and the impact of businesses sold were $5,006 million, down 1%,
reflecting benefits of our simpler organisation and reduced use of
third party service providers. We absorbed inflationary pressures on
wages and third party vendor costs.
1.96%
Group NIM,
up 5 bps on 1H22
flat on 2H22
1.90%
Core NIM,
up 20 bps on 1H22
up 10 bps on 2H22
Strong balance sheet
CapitalFunding and liquidity
Our CET1 capital ratio of 12.3% was above our target
range of 11.0% to 11.5%, providing $3.6 billion of
capital above the top end of the target range.
The increase of 99 basis points this half reflects the
impact of:
• Net profit added 88 basis points;
• Adoption of APRA’s revised capital framework,
added 62 basis points;
• Lower risk weighted assets (RWA) added 7 basis
points;
• Dividend utilised 45 basis points; and
• Capital deductions and other items, 13 basis
points decrease.
Our quarterly average LCR was 135% and NSFR
was 119%, both well above regulatory minimums.
Customer deposit growth supported most of our
funding requirements this half, with our deposit
to loan ratio up 84 basis points to 83.7%. We
maintained access to global funding markets, raising
$20.0 billion of new long-term wholesale funding in
the half.
Common equity tier 1 capital ratio (%)
11.3
11.3
12.3
17.4
17.6
18.1
Mar-22Sep-22Mar-23
APRA basisInternationally comparable
135%
LCR,
above 100% regulatory
minimum requirement
1. Unless otherwise stated, all figures relate to the half year ended March 2023 with the comparative period the half year ended 31 March 2022.

3
1 REVIEW OF GROUP

OPERATIONS
2 SEGMENT REPORTING
3
2023 INTERIM

FINANCIAL REPORT
4
OTHER INFORMATION
5 GLOSSARY
WESTPAC GROUP

2023 INTERIM FINANCIAL RESULTS
Review of Group operations
Investment spend
Investment spend was down 8% to $868 million compared to
the prior corresponding period.
• Spend on growth and productivity increased 13% reflecting
roll-out of our mortgage origination platform to third party
brokers, investment in digital capability, and continued
development of the corporate cash management platform.
• Delivery of our regulatory compliance agenda remains
a priority and was a significant proportion of spend.
As we have made progress, risk and regulatory spend
decreased 18%.
Impairment charges to average
loans (bps)
CAP to Credit RWA (%)
Investment spend (%)
Dividend (ce
nts)
Return on tangible equity (%)
4
5
10
1H222H221H23
1.161.16
1.33
Mar-22Sep-22Mar-23
38
62
Growth & productivity
Risk & Regulatory
10.5
7.9
12.8
1H222H221H23
61
64
70
1H222H221H23
Improved shareholder returns
Our strong capital position and improved financial performance
has provided scope for improved returns to shareholders.
The Board determined an interim dividend of 70 cents per
share, fully franked, an increase of 15% or 9 cents on the prior
corresponding period.
This reflects a payout ratio of 61%. Notable Items had limited
impact on regulatory capital and the dividend determination.
The payout ratio excluding Notable Items was 64% which
is marginally below the sustainable payout ratio range of
65% to 75%.
No discount will be offered to shareholders who elect to
participate in the Dividend Reinvestment Plan (DRP). An
equivalent number of shares are expected to be purchased on
market to offset the shares transferred under the DRP.
ROE rose 205 basis points to 11.3% and ROTE was up 229 basis
points to 12.8%. Earnings per ordinary share were 114.2 cents,
up 26%.
Net tangible assets per share were $17.67, up 3%.
Impairment charges to average
loans (bps)
CAP to Credit RWA (%)
Investment spend (%)
Dividend (ce
nts)
Return on tangible equity (%)
4
5
10
1H222H221H23
1.161.16
1.33
Mar-22Sep-22Mar-23
38
62
Growth & productivity
Risk & Regulatory
10.5
7.9
12.8
1H222H221H23
61
64
70
1H222H221H23
Provisioning positioned for slow down and potential
deterioration in credit quality.
• Credit impairment charges were $390 million or 10 basis
points of average loans, compared to 4 basis points of
average loans in the prior corresponding period. The charge
was driven by higher Collectively Assessed Provisions (CAP),
a function of weaker forward-looking economic inputs, a rise
in early cycle consumer delinquencies and some increased
stress in New Zealand business portfolios. The charge was
moderated by a benefit from write-backs and recoveries.
• Credit quality metrics were little changed with stressed exposures
to total committed exposures (TCE) unchanged at 1.10%.
• Impairment provisions of $4,923 million were up 5% due to
higher CAP. The ratio of CAP to credit risk weighted assets
(credit RWA) was 1.33%, an increase of 17 basis points due
to both higher CAP and lower RWA following the adoption
of APRA’s revised capital framework. With provisions more
than $1.5 billion above the expected losses of our base case
economic scenario, the Group is well positioned for potential
deterioration in credit quality.
Impairment charges to average
loans (bps)
CAP to Credit RWA (%)
Investment spend (%)
Dividend (ce
nts)
Return on tangible equity (%)
4
5
10
1H222H221H23
1.161.16
1.33
Mar-22Sep-22Mar-23
38
62
Growth & productivity
Risk & Regulatory
10.5
7.9
12.8
1H222H221H23
61
64
70
1H222H221H23

4
WESTPAC GROUP 2023 INTERIM FINANCIAL RESULTS
Review of Group operations
Refreshed purpose and strategy
As a simpler and stronger bank, we are entering our next strategic phase and turning our focus towards improving
our market position and returns.
We will be guided by our refreshed strategy and new purpose: creating better futures together.
Our strategy is framed by four pillars: Customer, Easy, Expert, Advocate.
Everything starts and ends with customers. We are focusing on service that is consistently great, supporting
customers through good and bad times and recognising those who choose us as their bank.
We are making banking easier, intuitive and digital.
Sharing our expertise to help customers is how we differentiate. Whether that’s through bankers, thought
leadership in finance or supporting customers to transition to net-zero.
As Australia’s first bank and company – we have been advocating for change for centuries. We are focusing on
three key areas: safety and security, financial inclusion and climate.
How we deliver value
SHAREHOLDERS
CUSTOMERS
70 cents
Interim dividend per share
11.3%
Return on equity
114.2 cents
Earnings per ordinary share
$215 million+
Stopped or recovered in customer scam losses
1
$750 billion
in lending
12.8 million
Customers
EMPLOYEESCOMMUNITY
38,503
Employees
2
$2.9 billion
Paid to our people
75
Organisational Health Index,
+3 above Global Banking median
$1.8 billion
Income tax expense, including the
bank levy #6 largest taxpayer
3
Net-Zero Banking
Alliance member
2030 targets set for 5
emissions-intensive sectors
Westpac Australia will source equivalent of
100% of energy consumption
from renewables from 2H23 onwards
1. Over calendar year 2022.
2. Full time equivalent employees at March 2023.
3. Based on the ATO’s Corporate Tax Transparency Report for the 2020-21 Income Year, published November 2022.

5
1 REVIEW OF GROUP

OPERATIONS
2 SEGMENT REPORTING
3
2023 INTERIM

FINANCIAL REPORT
4
OTHER INFORMATION
5 GLOSSARY
WESTPAC GROUP

2023 INTERIM FINANCIAL RESULTS
Review of Group operations
1.2 Performance summary
Half YearHalf YearHalf Year% Mov’t
1
MarchSeptMarchMar 23Mar 23
$m202320222022- Sept 22- Mar 22
Net interest income 9,113 8,873 8,288 3 10
Non-interest income 1,890 503 1,942 large(3)
Net operating income 11,003 9,376 10,230 17 8
Operating expenses(4,988)(5,429)(5,373)(8)(7)
Pre-provision profit 6,015 3,947 4,857 52 24
Impairment (charges)/benefits(390)(196)(139) 99 181
Profit before income tax expense 5,625 3,751 4,718 50 19
Income tax expense(1,620)(1,336)(1,434) 21 13
Profit after income tax expense 4,005 2,415 3,284 66 22
Profit attributable to non-controlling interests (NCI)(4)(1)(4)large-
Net profit attributable to owners of WBC 4,001 2,414 3,280 66 22
Notable Items (post tax) 178 (1,053) 179 large (1)
Effective tax rate 28.8% 35.6% 30.4%large(159 bps)
1.3 Key financial information
2
1. Percentage (%) movements are shown as % unless otherwise stated. This applies to all the tables in this document.
2. Reconciliations of Non-AAS financial measures included in this table are provided in Sections 1.5.2 and 4.9.
3. Excludes the dividend component of the off-market share buy-back in First Half 2022.
Half YearHalf YearHalf Year% Mov’t
MarchSeptMarchMar 23Mar 23
202320222022- Sept 22- Mar 22
Shareholder value
Basic earnings per ordinary share (cents) 114.2 69.0 90.5 66 26
Diluted earnings per ordinary share (cents) 107.7 66.0 85.7 63 26
Weighted average ordinary shares (millions) 3,501 3,496 3,622 - (3)
Fully franked dividends per ordinary share (cents) 70 64 61 9 15
Dividend payout ratio
3
61.33% 92.73% 65.06%large(373 bps)
Return on average ordinary equity 11.30% 6.93% 9.25%large 205 bps
ROTE 12.76% 7.85% 10.47%large 229 bps
Average ordinary equity ($m) 70,947 69,467 71,073 2 -
Average tangible ordinary equity ($m) 62,864 61,335 62,825 2 -
Average total equity ($m) 70,994 69,520 71,130 2 -
Net tangible asset per ordinary share ($) 17.67 17.18 17.22 3 3

6
WESTPAC GROUP 2023 INTERIM FINANCIAL RESULTS
Review of Group operations
Half YearHalf YearHalf Year% Mov’t
MarchSeptMarchMar 23Mar 23
202320222022- Sept 22- Mar 22
Business performance
Group NIM 1.96% 1.96% 1.91%- 5 bps
Core NIM 1.90% 1.80% 1.70% 10 bps 20 bps
Treasury & Markets impact on NIM 0.08% 0.10% 0.15%(2 bps)(7 bps)
Notable Items impact on NIM(0.02%) 0.06% 0.06%largelarge
Average interest earning assets ($m) 934,208 901,786 872,075 4 7
Expense to income ratio 45.33% 57.90% 52.52%largelarge
Expense to income ratio (ex Notable Items) 45.88% 49.53% 52.84%largelarge
Full time equivalent employees (FTE) 38,503 37,476 38,823 3 (1)
Revenue per FTE ($ ‘000’s) 291 249 259 17 12
Capital, funding and liquidity
Level 2 common equity Tier 1 capital ratio
- Australian Prudential Regulation Authority (APRA) 12.28% 11.29% 11.33% 99 bps 95 bps
- Internationally comparable 18.14% 17.57% 17.36% 57 bps 78 bps
Credit RWA ($m) 340,558 362,098 359,673 (6)(5)
Total risk weighted assets (RWA) ($m) 452,946 477,620 459,956 (5)(2)
LCR
1
135% 132% 137% 396 bps(111 bps)
NSFR
1
119% 121% 125%(159 bps)large
Deposit to loan ratio 83.7% 82.9% 83.5% 84 bps 18 bps
Credit quality and impairment charges
1
Gross impaired exposures to gross loans 0.20% 0.20% 0.23%- (3 bps)
Gross impaired exposures provisions to gross impaired
exposures 42.80% 47.95% 48.03%largelarge
Collectively assessed provisions to credit RWA 133 bps 116 bps 116 bps 17 bps 17 bps
Total provisions to credit RWA 145 bps 128 bps 130 bps 17 bps 15 bps
TCE ($bn) 1,220 1,186 1,161 3 5
Total stressed exposures as a % of TCE
2
1.10% 1.07% 1.10% 3 bps-
Mortgages 90+ day delinquencies 0.68% 0.69% 0.82%(1 bps)(14 bps)
Other consumer loans 90+ day delinquencies 1.54% 1.56% 1.62%(2 bps)(8 bps)
Impairment charges/(benefits) to average loans 10 bps 5 bps 4 bps 5 bps 6 bps
Balance sheet ($m)
Loans 749,931 739,647 719,556 1 4
Total assets 1,019,108 1,014,198 964,749 - 6
Customer deposits 627,585 612,834 600,872 2 4
1. Includes balances presented as held for sale.
2. Westpac applied amendments to APS 220 Credit Risk Management in relation to the definition of non-performing loans. As a result,
the ratio at 31 March 2023 is not directly comparable to past periods. On adoption of the new definition, the impact to the ratio was a
4bps increase, largely due to changes relating to an extension of the period over which exposures remain classified as non-performing
before potential reclassification to performing.
1.3 Key financial information (continued)

7
1 REVIEW OF GROUP

OPERATIONS
2 SEGMENT REPORTING
3
2023 INTERIM

FINANCIAL REPORT
4
OTHER INFORMATION
5 GLOSSARY
WESTPAC GROUP

2023 INTERIM FINANCIAL RESULTS
Review of Group operations
1.4 Impact of Notable Items
As noted in the Presentation changes section of the Introduction to this Results Announcement, the Group has
simplified its financial reporting in First Half 2023 and is no longer reporting the non-AAS profit measures of cash
earnings and cash earnings excluding Notable Items. Net profit after tax has been adopted as the Group’s key
performance measure for the Group and its segments for internal reporting to key decision makers. Consistent
with that change, cash earnings and cash earnings excluding Notable Items will no longer be reported in the
Group’s profit announcements. To assist in explaining the Group’s financial performance, the Group will continue
to report Notable Items which represent certain items that are not considered to be reflective of the Group’s
ongoing business performance.
Notable Items broadly fall into the following categories:
–Unrealised fair value gains and losses on economic hedges that do not qualify for hedge accounting
–Net ineffectiveness on qualifying hedges
–Large items that are not reflective of the Group’s ordinary operations. In individual reporting periods large
items may include:
–Provisions for remediation, litigation, fines and penalties
–The impact of asset sales and revaluations
–The write-down of assets (including goodwill and capitalised software)
–Restructuring costs
In determining dividends the impact of Notable Items is typically excluded.
The impact of Notable Items (post tax) in First Half 2023 was a benefit of $178 million (Second Half 2022: $1,053
million reduction; First Half 2022: $179 million benefit).
Details of Notable Items (post tax) impacting on the First Half 2023 result are:
Category
Net profit
impact 1H23Detail
Unrealised fair value gains and losses on
economic hedges that do not qualify for
hedge accounting
$121m
reduction
• The unrealised fair value (gain)/loss on hedges of accrual accounted term
funding transactions for the period was $121 million. This represents a timing
difference for the statutory results but does not affect the Group’s profits
over the life of the hedge.
Net ineffectiveness on qualifying hedges $43m benefit• The net ineffectiveness on qualifying hedges of $43 million for the period
arises from the fair value movement in these hedges which reverses over
time and therefore does not affect the Group’s profits over time.
The impact of asset sales and
revaluations
$256m
benefit
• Gain on the sale of Advance Asset Management Limited (AAML). This also
includes a tax benefit related to transaction and separation costs.
For detailed explanations of Notable Items for Second Half 2022 and First Half 2022, refer to the 2022 Annual
Report and 2022 Full Year Financial Results Announcement.

8
WESTPAC GROUP 2023 INTERIM FINANCIAL RESULTS
Review of Group operations
$m
Economic
hedges
Hedge
ineffectiveness
Provisions
for litigation,
fines and
penalties
Asset
sales and
revaluations
The write-
down of
assetsTotal
Half Year March 2023
Net interest income(151) 62 - - - (89)
Non-interest income(22)- - 243 - 221
Net operating income(173) 62 - 243 - 132
Operating expenses- - - - - -
Income tax (expense)/benefit and NCI 52 (19)- 13 - 46
Net profit/(loss)(121) 43 - 256 - 178
Half Year Sept 2022
Net interest income 346 (50)(8)- - 288
Non-interest income
1
35 - (9)(1,112)- (1,086)
Net operating income 381 (50)(17)(1,112)- (798)
Operating expenses- - (80)(126)(184)(390)
Income tax (expense)/benefit and NCI(115) 17 29 149 55 135
Net profit/(loss) 266 (33)(68)(1,089)(129)(1,053)
Half Year March 2022
Net interest income 287 (27) 7 - - 267
Non-interest income 4 - (43) 271 - 232
Net operating income 291 (27)(36) 271 - 499
Operating expenses- - (46)(18)(167)(231)
Income tax (expense)/benefit and NCI(87) 8 17 (40) 13 (89)
Net profit/(loss) 204 (19)(65) 213 (154) 179
1. Second Half 2022 asset sales and revaluations relates to the loss on sale of Westpac Life Insurance Services Limited.

1 REVIEW OF GROUP

OPERATIONS
2 SEGMENT REPORTING
3
2023 INTERIM

FINANCIAL REPORT
4
OTHER INFORMATION
5 GLOSSARY
9
WESTPAC GROUP

2023 INTERIM FINANCIAL RESULTS
Review of Group operations
1.5 Review of earnings
1.5.1 Net interest margin
Group net interest margin movement (%)
First Half 2023 – First Half 2022
1.70
0.21
0.06
(8bps)
1H22
6bps
Earnings
on Capital
(7bps)
(8bps)
LoansNotable Items
3
1.90
1.91
1H23
(24bps)
47bps
DepositsLiquid AssetsT&M
2
(1bp)
1.96
WSF
1
Group NIM up 5bps
Notable Items, Treasury & Markets
Core NIM
Core NIM up 20bps
Group net interest margin movement (%)
First Half 2023 – First Half 2022
1. Wholesale Funding Cost.
2. Treasury & Markets contribution.
3. Notable items are described in Section 1.4.
First Half 2023 – First Half 2022
• The Group NIM increased by 5 basis points to 1.96%. Key movements included:
– Core NIM: 20 basis point increase with key drivers described below;
– Treasury and Markets: 7 basis point decrease largely driven by market volatility in Treasury and lower
realised gains on the sale of liquid assets; and
– Notable Items: 8 basis point decline reflecting unrealised fair value losses related to economic hedges of
term funding.
• The 20 basis point increase in Core NIM was driven by:
–Loan interest spread: 24 basis point decrease due to tighter spreads on mortgage lending in Australia
and New Zealand relating to price competition for new and existing loans and from growth in tighter
spread owner occupied lending. This impact was partly mitigated by managing the margin-volume trade
off. Business lending spreads were also tighter reflecting increased competition to attract new, and retain
existing customers;
–Deposit interest spread: 47 basis point increase from higher deposit spreads and higher earnings on
hedged deposits. A mix shift towards lower spread term deposits as customers responded to higher
interest rates reduced margin slightly;
– Liquid assets: 8 basis point decline from the cost of holding higher HQLA to support the reduction of
the CLF;
–Wholesale funding: 1 basis point decrease from higher wholesale funding costs as spreads on new term
wholesale funding were wider than the spreads on maturing facilities; and
– Earnings on capital: 6 basis point increase from higher earnings on capital balances as a result of rising
interest rates.
1. Wholesale Funding Cost.
2. Treasury & Markets contribution.
3. Notable Items are described in Section 1.4.

10
WESTPAC GROUP 2023 INTERIM FINANCIAL RESULTS
Review of Group operations
Group net interest margin movement (%)
First Half 2023 – Second Half 2022
1.80
0.16
0.06
Earnings
on Capital
(2bps)
2H22LoansNotable Items
3
T&M
2
(8bps)
1H23
1.96
1.90
(11bps)
(1bp)
4bps
20bps
Deposits
(2bps)
Liquid AssetsWSF
1
1.96
Group NIM remained flat
Notable Items, Treasury & Markets
Core NIM
Group net interest margin movement (%)
First Half 2023 – Second Half 2022
Core NIM up 10bps
1. Wholesale Funding Cost.
2. Treasury & Markets contribution.
3. Notable items are described in Section 1.4.
First Half 2023 – Second Half 2022
• The Group NIM was flat at 1.96%. Key movements included:
– Core NIM: 10 basis point increase with key movements described below;
– Treasury and Markets: 2 basis point decrease driven by market volatility in Treasury; and
– Notable Items: 8 basis point decline due to unrealised fair value losses related to economic hedges of
term funding.
• The 10 basis point increase in Core NIM was driven by:
– Loan interest spread: 11 basis point decrease predominantly due to tighter spreads on mortgage lending in
Australia from price competition for new and existing customers, and from growth in lower spread owner-
occupied lending. This impact was partly mitigated by managing the margin-volume trade off. Business
lending spreads were also slightly tighter from increased competition to attract new, and retain existing
customers;
– Deposit interest spread: 20 basis point increase from higher deposit spreads and higher earnings on
hedged deposits. A mix shift towards lower spread term deposits as customers responded to higher
interest rates reduced margin slightly;
–Liquid assets: 2 basis point decrease from the cost of holding higher HQLA to support the reduction of
the CLF;
– Wholesale funding: 1 basis point decrease from higher wholesale funding costs as spreads on new term
wholesale funding were wider than the spreads on maturing facilities; and
–Earnings on capital: 4 basis point increase from higher earnings on capital balances as a result of rising
interest rates.
1. Wholesale Funding Cost.
2. Treasury & Markets contribution.
3. Notable Items are described in Section 1.4.

1 REVIEW OF GROUP

OPERATIONS
2 SEGMENT REPORTING
3
2023 INTERIM

FINANCIAL REPORT
4
OTHER INFORMATION
5 GLOSSARY
11
WESTPAC GROUP

2023 INTERIM FINANCIAL RESULTS
Review of Group operations
1.5.2 Net interest income
Half YearHalf YearHalf Year% Mov’t
MarchSeptMarchMar 23Mar 23
202320222022- Sept 22- Mar 22
Net interest Income ($m)
Net interest income 9,113 8,873 8,288 3 10
Core net interest income 8,855 8,131 7,401 9 20
Notable Items(89) 288 267 largelarge
Treasury
1
266 383 568 (31)(53)
Markets 81 71 52 14 56
Average interest earning assets ($m)
2
Loans 699,735 683,786 670,648 2 4
Housing 481,538 472,098 468,207 2 3
Personal 13,485 14,471 15,618 (7)(14)
Business 204,712 197,217 186,823 4 10
Liquid assets 208,467 201,512 181,932 3 15
Other interest-earning assets 26,006 16,488 19,495 58 33
Average interest earning assets 934,208 901,786 872,075 4 7
NIM (%)
Group NIM 1.96% 1.96% 1.91%- 5 bps
Core NIM 1.90% 1.80% 1.70% 10 bps 20 bps
First Half 2023 – First Half 2022
Net interest income increased 10% to $9,113 million with core net interest income growing by 20% to
$8,855 million. Key features included:
• Core NIM increased 20 basis points. The rise in interest rates supported deposit spreads and earnings on
hedged deposits and capital. Lending competition, particularly in Australian mortgages, and higher liquid asset
balances drove asset spread compression; and
• The Group’s average interest earning assets increased 7% to $934.2 billion. Growth in average loans of 4% was
primarily attributable to mortgages and business lending. Average liquid assets were 15% higher as a result of
increased holdings of HQLA to support the reduction of the CLF. Other interest-earning assets increased by
33% due to the appreciation of the AUD against USD in First Half 2023, resulting in additional collateral paid to
derivative counterparties to offset the decline in the valuation of derivatives.
First Half 2023 – Second Half 2022
Net interest income increased 3% to $9,113 million with core net interest income increasing by 9% to
$8,855 million. Key features included:
• Core NIM improved 10 basis points. The rise in interest rates benefited deposit spreads and earnings on
hedged deposits and capital. Lending competition, particularly in Australian mortgages drove asset spread
compression; and
• The Group’s average interest earning assets increased by 4% to $934.2 billion. Growth in average loans of 2%
was primarily attributable to mortgages and business lending. Liquid assets, up 3%, from increased holdings
of HQLA to support the reduction of the CLF. Other interest-earning assets increased by 58% due to the
appreciation of the AUD against USD in First Half 2023, resulting in additional collateral paid to derivative
counterparties to offset the decline in the valuation of derivatives.
1. Treasury net interest income excludes capital benefit.
2. Includes assets held for sale.
Review of Group
operations

12
WESTPAC GROUP 2023 INTERIM FINANCIAL RESULTS
Review of Group operations
1.5.3 Loans
As atAs atAs at% Mov’t
31 March30 Sept31 MarchMar 23Mar 23
$m202320222022- Sept 22- Mar 22
Australia 650,639 647,122 625,464 1 4
Housing 472,570 467,382 458,278 1 3
Personal 12,028 12,832 14,128 (6)(15)
Business 169,891 170,636 156,763 - 8
Provisions(3,850)(3,728)(3,705) 3 4
New Zealand (A$) 92,359 85,772 87,806 8 5
New Zealand (NZ$) 98,623 97,393 94,471 1 4
Housing 65,224 63,827 62,166 2 5
Personal 1,192 1,202 1,201 (1)(1)
Business 32,748 32,764 31,517 - 4
Provisions(541)(400)(413) 35 31
Other overseas (A$) 6,933 6,753 6,286 3 10
Total loans 749,931 739,647 719,556 1 4
Market share and system multiple metrics
Market share
As atAs atAs at
31 March30 Sept31 March
202320222022
Australia
Banking system (APRA)
Housing credit
1
21%22%22%
Cards21%21%21%
Financial system (Reserve Bank of Australia (RBA))
Housing credit
1
20%21%21%
Business credit
2,3
16%15%15%
New Zealand (Reserve Bank of New Zealand (RBNZ))
4
Consumer lending18%18%18%
Business lending16%16%16%
System multiples
Half YearHalf YearHalf Year
MarchSeptMarch
202320222022
Australia
Banking system (APRA)
Housing credit
1
0.5 0.8 0.3
Cards0.5 0.3 0.7
Financial system (RBA)
Housing credit
1
0.6 0.7 0.2
Business credit
2,3,5
n/a 0.9 0.8
New Zealand (RBNZ)
4
Consumer lending1.2 1.6 0.7
1. Includes securitised loans.
2. Westpac Group’s business credit growth rate and multiples are based on Financial System as published in the RBA Lending and Credit
Aggregates, inclusive of Westpac Institutional Bank.
3. For the half year ended March 2023, the RBA’s interpretations on the financial aggregates and business lending statistics changed to
remove the effect of lending to warehouse trusts in business credit. Including lending to warehouse trusts in business credit double
counts loans from non-banks that are separately recorded in housing or business credit. Westpac Group’s financial results will apply
this change prospectively from the March 2023 period.
4. New Zealand comprises New Zealand banking operations.
5. n/a indicates that system growth or Westpac growth was negative.

1 REVIEW OF GROUP

OPERATIONS
2 SEGMENT REPORTING
3
2023 INTERIM

FINANCIAL REPORT
4
OTHER INFORMATION
5 GLOSSARY
13
WESTPAC GROUP

2023 INTERIM FINANCIAL RESULTS
Review of Group operations
First Half 2023 – First Half 2022
Loans increased by 4% to $749.9 billion. Lending movements included:
• Increase in Australian housing loans of 3% to $472.6 billion, predominantly in owner occupied variable rate
mortgages with investor lending declining 1%. This resulted in a change in the portfolio as fixed rate fell to 34%
from 40% while investor fell to 32% from 33%;
• Contraction in Australian personal lending of 15% to $12.0 billion, due to the continued auto loan portfolio run-
off following our exit from this business. Excluding this run-off, personal lending balances were flat with higher
cards balances offset by a decline in other personal lending;
• Growth in Australian business lending of 8% to $169.9 billion, mostly from broad-based growth in WIB,
including higher utilisation of credit facilities while the Business segment’s loans grew in the commercial
property and agriculture sectors; and
• Increase in New Zealand lending of 4% to $98.6 billion in NZ$ terms with growth across housing, from above
system growth, and business, primarily in the utilities and wholesale trade sectors.
First Half 2023 – Second Half 2022
Loans increased 1% to $749.9 billion. Lending movements included:
• Increase in Australian housing loans of 1% to $472.6 billion. This was achieved with growth in owner occupied
variable rate mortgages, partly offset with a decline in the fixed rate portfolio reflecting the impact of higher
interest rates on customer decisions;
• Contraction in Australian personal lending of 6%, due to continued run-off in the auto loan portfolio. Excluding
this run-off, personal lending balances were marginally higher with growth in both cards and other personal
lending;
• Australian business lending was stable partly reflecting the continued run-off in the auto finance portfolio.
Excluding this run-off, Australian business lending balances were slightly higher. Modest growth in the business
segment was offset by a contraction in WIB due to a reduction in utilisation of credit facilities and higher
refinancing activity; and
• Increase in New Zealand lending by 1% in NZ$ terms primarily in housing which achieved above system growth.
1. [The sale of Westpac Pacific was terminated in Second Half 2021 and was therefore no longer classified as Held for Sale. For further
details on Held for Sale balances, refer to Section 4, Note 17.]

14
WESTPAC GROUP 2023 INTERIM FINANCIAL RESULTS
Review of Group operations
1.5.4 Deposits and other borrowings
As atAs atAs at% Mov’t
31 March30 Sept31 MarchMar 23Mar 23
$m202320222022- Sept 22- Mar 22
Customer deposits
Australia 545,090 535,645 521,303 2 5
At call 349,419 352,544 361,609 (1)(3)
Term 140,704 127,921 104,865 10 34
Non-interest bearing 54,967 55,180 54,829 - -
New Zealand (A$) 74,703 68,614 72,839 9 3
New Zealand (NZ$) 79,769 77,910 78,369 2 2
At call 30,320 31,246 32,480 (3)(7)
Term 36,367 32,273 30,067 13 21
Non-interest bearing 13,082 14,391 15,822 (9)(17)
Other overseas (A$) 7,79 2 8,575 6,730 (9) 16
Total customer deposits 627,585 612,834 600,872 2 4
Certificates of deposit 48,767 46,295 44,734 5 9
Australia 32,227 30,507 27,048 6 19
New Zealand (A$) 2,618 2,588 2,783 1 (6)
Other overseas (A$) 13,922 13,200 14,903 5 (7)
Total deposits and other borrowings (including held for sale) 676,352 659,129 645,606 3 5
Market share and system multiple metrics
Market share
As atAs atAs at
31 March30 Sept31 March
202320222022
Australia
Banking system (APRA)
Household deposits20%20%21%
Business deposits
1
18%18%18%
Financial system (RBA)
Retail deposits
2
19%20%20%
New Zealand (RBNZ)
3
Deposits18%18%18%
System multiples
Half YearHalf YearHalf Year
MarchSeptMarch
202320222022
Australia
Banking system (APRA)
Household deposits1.3 0.6 0.8
Business deposits
1,4
n/a 0.7 0.9
Financial system (RBA)
Retail deposits
2
0.4 0.7 0.8
New Zealand (RBNZ)
3
Deposits
4
5.9 n/a 1.0
1. Westpac Group’s business deposit growth rate and multiples are based on ADI System as published in the Monthly ADI statistics by
APRA, inclusive of Westpac Institutional Bank.
2. Retail deposits as measured by the RBA, financial system includes financial corporations’ deposits.
3. New Zealand comprises New Zealand banking operations.
4. n/a indicates that system growth or Westpac growth was negative.

1 REVIEW OF GROUP

OPERATIONS
2 SEGMENT REPORTING
3
2023 INTERIM

FINANCIAL REPORT
4
OTHER INFORMATION
5 GLOSSARY
15
WESTPAC GROUP

2023 INTERIM FINANCIAL RESULTS
Review of Group operations
First Half 2023 – First Half 2022
Deposits increased by 4% to $627.6 billion. Deposit growth was underpinned by the movements in:
• Australian deposits up 5% to $545.1 billion, mostly from Consumer and Institutional customers. In line with
rising interest rates, customers continued to switch to higher interest bearing term deposit accounts across all
segments while at call deposits reduced by 3%. Non-interest bearing deposits were flat with mortgage offset
account balances stable;
• New Zealand deposits up 2% to $79.8 billion in NZ$ terms with customers opting for higher interest rate
bearing term deposits across all segments; and
• Other overseas deposits up 16% to $7.8 billion, mostly from the AUD depreciation. Excluding FX movements,
deposits grew $0.2 billion.
The Group’s deposit to loan ratio improved to 83.7% from 83.5% at 31 March 2022, as deposit growth broadly
funded loan growth over the last 12 months.
First Half 2023 – Second Half 2022
Deposits increased by 2% to $627.6 billion. Deposit movements included:
• Increase in Australian deposits of 2% to $545.1 billion fully funding loan growth. Growth was predominantly in
higher interest bearing term deposits reflecting changed customer preferences. At call deposits declined by
1% primarily in our Business and Institutional transaction account balances;
• Increase in New Zealand deposits of 2% to $79.8 billion in $NZ terms with customers continuing to move to
higher interest bearing term deposit accounts; and
• Decrease in other overseas deposits of 9%, mostly in WIB due to the appreciation of the AUD. Excluding FX
movements, overseas deposits were down $0.7 billion.
The Group’s deposit to loan ratio strengthened to 83.7% from 82.9% due to deposit growth outpacing lending
growth in the half.

16
WESTPAC GROUP 2023 INTERIM FINANCIAL RESULTS
Review of Group operations
1.5.5 Non-interest income
1
Half YearHalf YearHalf Year% Mov’t
MarchSeptMarchMar 23Mar 23
$m202320222022- Sept 22- Mar 22
Net fee income 827 826 845 - (2)
Net wealth management and insurance income 347 407 401 (15)(13)
Trading income 387 321 343 21 13
Other income 329 (1,051) 353 large(7)
Total non-interest income 1,890 503 1,942 large(3)
Non-interest income is composed of:
Half YearHalf YearHalf Year% Mov’t
MarchSeptMarchMar 23Mar 23
$m202320222022- Sept 22- Mar 22
Notable Items
Net fee income- (1)- (100)-
Net wealth management and insurance income- (8)(43)(100)(100)
Trading income(22) 40 4 largelarge
Other income 243 (1,117) 271 large(10)
Total non-interest income - Notable Items 221 (1,086) 232 large(5)
Businesses sold
1
Net wealth management and insurance income 115 167 225 (31)(49)
Other income 25 - - - -
Total non-interest income - Businesses sold 140 167 225 (16)(38)
Non interest income (Ex Notable Items and Businesses sold)
Net fee income 827 827 845 - (2)
Net wealth management and insurance income 232 248 219 (6) 6
Trading income 409 281 339 46 21
Other income 61 66 82 (8)(26)
Non-interest income excluding Notable Items and Businesses sold 1,529 1,422 1,485 8 3
Total non-interest income 1,890 503 1,942 large(3)
First Half 2023 – First Half 2022
Non-interest income declined by 3% to $1,890 million. Excluding Notable Items and the impact of businesses sold,
non-interest income increased by 3% to $1,529 million.
Net fee income
Net fee income declined by 2% to $827 million. Movements included:
• Lower card interchange fees of $6 million in New Zealand due to regulatory changes which came into effect in
November 2022;
• Lower payments revenue of $8 million due to remediation charges; and
• Lower institutional undrawn financing line fees of $4 million as credit facility utilisation increased.
Net wealth management and insurance income
Net wealth management and insurance income declined by 13% to $347 million due to Notable Items and the
impact of businesses sold. Excluding these impacts, net wealth management and insurance income increased by
6% to $232 million. Drivers included:
• Higher margins on duration cash balances of $22 million benefiting from higher interest rates; and
• Reduced wealth income of $14 million due to lower funds under administration.
1. Comparatives have been restated to incorporate the results of AAML and BT Superannuation funds successor fund transfer (SFT).
Review of Group
operations

17
1 REVIEW OF GROUP

OPERATIONS
2 SEGMENT REPORTING
3
2023 INTERIM

FINANCIAL REPORT
4
OTHER INFORMATION
5 GLOSSARY
WESTPAC GROUP

2023 INTERIM FINANCIAL RESULTS
Review of Group operations
Trading income
Trading income increased 13% to $387 million. Excluding Notable Items, trading income increased by 21% to
$409 million. Movements included:
• Improved Fixed Income and FX performance driven largely by credit spreads tightening and higher sales
volumes providing a net benefit of $53 million; and
• Derivative valuation adjustments (DVA) which contributed $57 million from tightening counterparty credit
spreads, compared to a charge of $10 million in the prior corresponding period.
Other income
Other income of $329 million, including the $243 million gain on sale of AAML, decreased by 7% on the prior
corresponding period. Other income in First Half 2022 included the gains on sale of the Wholesale Auto finance
and New Zealand Life Insurance businesses for $170 million and $119 million respectively.
Excluding Notable Items and the impact of businesses sold, other income decreased by 26% to $61 million as the
prior corresponding period included a $25 million benefit for achieving specific milestones under the General
Insurance distribution arrangement.
Businesses sold
The contribution from the businesses sold was $140 million in First Half 2023. For further details of the
contribution of each business refer to section 4.8.
First Half 2023 – Second Half 2022
The increase in non-interest income to $1,890 million predominantly reflects the impact of Notable Items and the
impact of businesses sold. Excluding these items, non-interest income increased by 8% to $1,529 million.
Net fee income
Net fee income was flat with offsetting movements primarily due to:
• Lower undrawn financing line fees of $4 million in WIB as credit facility utilisation increased;
• Lower interchange fees of $10 million in New Zealand mostly due to regulatory changes;
• Lower card income of $4 million from a combination of higher scheme incentives and loyalty provisions;
• Lower remediation charges of $22 million; and
• Higher origination and syndication fees in WIB of $13 million.
Net wealth management and insurance income
Net wealth management and insurance income declined by 15% to $347 million due to Notable Items and the
impact of businesses sold. Excluding these items, net wealth management and insurance income decreased by
6% to $232 million. The key movements included:
• Lower custody fees from a reclassification impact of $17 million and lower regulatory related recoveries; and
• Higher net wealth income of $7 million benefited from improving market conditions over the half which
resulted in higher fund balances offsetting the impact from lower opening fund balances and net outflows.
Trading income
Trading income increased by 21% to $387 million. Excluding Notable Items, trading income increased by 46% to
$409 million primarily due to:
• Increased fixed income and FX performance of $74 million driven largely by credit spreads tightening and
higher volumes; and
• Higher contribution from DVA from tightening counterparty credit spreads generating a $57 million
contribution compared to a charge of $17 million in the prior period.
Other income
Other income of $329 million includes the $243 million gain on sale of AAML. This compares to a loss of
$1,051 million in the prior period mostly from the loss on sale of Australian life insurance of $1,112 million.
Excluding Notable Items and businesses sold, other income decreased by 8% to $61 million predominantly
due to a one-off deferred payment of $3 million received in the prior period as part of the sale of the Westpac
LMI business.
Businesses sold
The contribution from the businesses sold was $140 million in First Half 2023. For further details of the
contribution of each business refer to section 4.8.

18
WESTPAC GROUP 2023 INTERIM FINANCIAL RESULTS
Review of Group operations
1.5.6 Group funds
As atAs at% Mov’tAs at% Mov’t
31 MarchNetOther30 SeptMar 2331 MarchMar 23
$bn2023InflowsOutflowsflowsMov’t2022Sept 222022Mar 22
Superannuation 33.4 1.5 (3.9)(2.4)(1.2) 37.0 (10) 41.8 (20)
Platforms 136.7 7.9 (10.0)(2.1) 12.1 126.7 8 140.2 (2)
Packaged Funds 1.8 2.2 (5.0)(2.8)(35.8) 40.4 (96) 45.9 (96)
Total Australia funds 171.9 11.6 (18.9)(7.3)(24.9) 204.1 (16) 227.9 (25)
Total NZ funds (A$) 10.7 0.9 (0.9)- 1.1 9.6 11 10.9 (2)
Total Group funds 182.6 12.5 (19.8)(7.3)(23.8) 213.7 (15) 238.8 (24)
Total NZ funds (NZ$) 11.5 1.0 (1.0)- 0.6 10.9 6 11.7 (2)
Group funds comprises non-superannuation and superannuation regulated products provided to Australian
and New Zealand customers through advised and direct channels. This includes wealth products distributed to
Australian and New Zealand customers.
Group funds decreased by 15% compared to the prior period, primarily driven by $38.5 billion related to the sale
of AAML which was partly offset by favourable market movements of $14.7 billion. Inflows of $12.5 billion were
more than offset by outflows of $19.8 billion.
On 1 April 2023, the SFT of the members and benefits of BT Funds Management Limited’s personal and corporate
(non-platform) superannuation of $33.4 billion to Mercer Super Trust was completed. This will be reflected in
Second Half 2023.
1.5.7 Markets related income
1,2
Half YearHalf YearHalf Year% Mov’t
MarchSeptMarchMar 23Mar 23
$m202320222022- Sept 22- Mar 22
Net interest income 81 71 52 14 56
Non-interest income 445 296 323 50 38
Markets income 526 367 375 43 40
Sales and risk management income 474 387 386 22 23
DVA 52 (20)(11)largelarge
Markets income 526 367 375 43 40
Markets income comprises sales and risk management revenue derived from the creation, pricing and distribution
of risk management products to the Group’s customers. Dedicated relationship specialists provide product
solutions to these customers to help manage their interest rate, foreign exchange, commodity, credit and
structured products risk exposures.
First Half 2023 – First Half 2022
Markets income increased by 40% to $526 million.
Sales and risk management income increased by 23% to $474 million. More favourable market conditions
compared to the prior corresponding period benefitted credit products with credit spread tightening and higher
volumes. FX also had increased customer sales.
DVA contributed $52 million, reflecting tighter counterparty credit spreads. This compared to a negative impact of
$11 million in the prior corresponding period.
First Half 2023 – Second Half 2022
Markets income increased by 43% to $526 million.
Sales and risk management income increased by 22% to $474 million. More favourable market conditions resulted
in credit spread tightening and higher credit volumes.
DVA contributed $52 million, reflecting tighter counterparty credit spreads. This compared to a negative impact of
$20 million in the prior period.
1. Markets income includes WIB, Specialist Businesses and Westpac New Zealand markets.
2. In First Half 2023, the presentation of Markets related income has been revised:
a. Derivative Valuation Adjustment (DVA) has been revised to include Funding Value Adjustment (FVA) and Credit Value Adjustment
(CVA). Previously DVA included only CVA.
b. Sales and risk management income includes both customer and non-customer income.
Comparatives have been restated.

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2023 INTERIM

FINANCIAL REPORT
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5 GLOSSARY
WESTPAC GROUP

2023 INTERIM FINANCIAL RESULTS
Review of Group operations
Markets Value at Risk (VaR)
$mAverageHighLow
Half Year 31 March 2023 9.9 15.4 5.5
Half Year 30 September 2022 6.5 11.3 4.4
Half Year 31 March 2022 5.0 11.0 3.1
The Components of Markets VaR are as follows:
AverageHalf YearHalf YearHalf Year
MarchSeptMarch
$m202320222022
Interest rate risk 7.5 4.7 3.6
Foreign exchange risk 1.7 1.5 1.3
Commodity risk 2.5 2.8 2.1
Credit and other market risks
1
6.2 4.7 3.3
Diversification benefit(8.0)(7.2)(5.3)
Net market risk 9.9 6.5 5.0
1. Includes pre-payment risk and credit spread risk (exposures to generic credit rating bonds).

20
WESTPAC GROUP 2023 INTERIM FINANCIAL RESULTS
Review of Group operations
1.5.8 Operating expenses
Half YearHalf YearHalf Year% Mov’t
MarchSeptMarchMar 23Mar 23
$m202320222022- Sept 22- Mar 22
Staff expenses(2,892)(2,884)(2,982)- (3)
Occupancy expenses(372)(516)(398)(28)(7)
Technology expenses(1,054)(1,157)(1,125)(9)(6)
Other expenses(670)(872)(868)(23)(23)
Total operating expenses(4,988)(5,429)(5,373)(8)(7)
Excluding Notable Items
Staff expenses(2,892)(2,795)(2,963) 3 (2)
Occupancy expenses(372)(390)(398)(5)(7)
Technology expenses(1,054)(1,105)(1,080)(5)(2)
Other expenses(670)(749)(701)(11)(4)
Total operating expenses excluding Notable Items(4,988)(5,039)(5,142)(1)(3)
Operating expenses - Businesses sold
1
18 (49)(78)largelarge
Operating expenses excluding Notable Items and Business sold(5,006)(4,990)(5,064)- (1)
Full Time Equivalent (FTE) employees
As atAs atAs at% Mov’t
31 March30 Sept31 MarchMar 23Mar 23
Number of FTE202320222022- Sept 22- Mar 22
Permanent employees 34,749 33,774 34,637 3 -
Temporary employees 3,754 3,702 4,186 1 (10)
FTE 38,503 37,476 38,823 3 (1)
Average FTE 37,821 37,629 39,517 1 (4)
First Half 2023 – First Half 2022
Operating expenses declined by 7% to $4,988 million primarily reflecting the absence of Notable Items in First
Half 2023 and benefits from businesses sold.
Excluding Notable Items, operating expenses decreased by 3% to $4,988 million reflecting cost discipline
especially in light of inflationary pressures on wages and third party vendor services. The cost reduction was
largely achieved through efficiencies derived from the implementation of the Group’s simplification activities,
including cost reset actions. This has led to a reduction of the cost to income ratio from 52.8% to 45.9%.
Staff expenses declined 3% to $2,892 million. Excluding Notable Items staff expenses decreased by 2% reflecting
lower FTE from simplification measures which offset continued pressure from wage growth. FTE was 1% lower,
mainly from fewer temporary employees. In addition to business exits, efficiencies were realised from the
progression of cost reset actions. Restructuring costs were also lower.
Occupancy expenses reduced by 7% to $372 million following the reduction in corporate space requirements
and the consolidation of the branch network including the closure of 115 branches and the establishment of 36
co-locations over the year.
Technology expenses declined 6% to $1,054 million. Excluding Notable Items technology expenses decreased
by 2%, reflecting lower amortisation and depreciation costs, partly offset by higher software maintenance and
licence costs.
Other expenses declined 23% to $670 million. Excluding Notable Items other expenses decreased by 4%, a result
of lower consulting and third party spend and lower non-lending losses.
Businesses sold provided an $18 million benefit in First Half 2023 due to the reimbursement of costs related to the
SFT which more than offset the run costs of the businesses sold. For further details of the contribution of each
business refer to section 4.8.
1. Comparatives have been restated to incorporate the results of AAML and SFT.
Review of Group
operations

21
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OPERATIONS
2 SEGMENT REPORTING
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2023 INTERIM

FINANCIAL REPORT
4
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5 GLOSSARY
WESTPAC GROUP

2023 INTERIM FINANCIAL RESULTS
Review of Group operations
First Half 2023 – Second Half 2022
Operating expenses declined by 8% to $4,988 million primarily reflecting the absence of Notable Items in First
Half 2023 and benefits from businesses sold.
Excluding Notable Items, operating expenses declined by 1% to $4,988 million, reflecting cost discipline against
the backdrop of an inflationary environment. The reduction in third party vendor and property costs partly offset
the increase in staff expenses.
Staff expenses were flat to the prior period at $2,892 million. Excluding Notable Items staff expenses increased
by 3% as higher average FTE was compounded by wage pressure. FTE increased by 3% to 38,503 reflecting
sustained regulatory requirements in WNZL and increased customer supporting roles due to heightened
mortgage refinancing activity.
Occupancy expenses decreased 28% to $372 million. Excluding Notable Items occupancy expenses decreased 5%
as the Group’s footprint was reduced. This included a reduction in corporate office requirements and the benefit
from the continued consolidation of the branch network, including the closure of 66 branches and the opening of
19 new co-locations in the half.
Technology expenses declined 9% to $1,054 million. Excluding Notable Items technology expenses decreased
by 5%. Amortisation and depreciation costs were lower. Third party vendor costs were higher, particularly from
inflationary pressure.
Other expenses declined 23% to $670 million. Excluding Notable Items other expenses fell by 11%, reflecting lower
consulting and third party spend.
Businesses sold provided an $18 million benefit in First Half 2023 due to the reimbursement of costs related to the
SFT which more than offset the run costs of the businesses sold. For further details of the contribution of each
business refer to section 4.8.
Investment spend
Half YearHalf YearHalf Year% Mov’t
MarchSeptMarchMar 23Mar 23
$m202320222022- Sept 22- Mar 22
Expensed 287 355 528 (19)(46)
Capitalised software, fixed assets and prepayments 581 685 419 (15) 39
Total 868 1,040 947 (17)(8)
Risk & regulatory 536 659 653 (19)(18)
Growth and Productivity 332 381 294 (13) 13
Total 868 1,040 947 (17)(8)
There was $868 million of investment across the Group in First Half 2023. This was $79 million lower than the prior
corresponding period and $172 million lower than the prior period with the latter movement reflecting both the
completion of projects and seasonality.
Of the investment spend, 38% was directed towards growth and productivity initiatives and 62% was focused on
risk and compliance.
Growth and productivity investments included:
• The rollout of OBP to third party brokers. This consolidates mortgage origination across all brands and
channels onto one platform;
• Rollout of several new features in the Westpac App. These included:
– Enhanced personal financial management features;
– New voice search functionality enabling greater accessibility;
– Enhanced digital fixed rate mortgage refinancing capability where customers can make applications and
accept offers via the app; and
–Expense splitter, allowing customers to split and track shared payments with others.
• Launch of EFTPOS Air to allow small business customers to take payments through Android phones. The
simple set up and digital onboarding experience means businesses can set up and take payments within a
few hours on their own device;
• Further functionality improvements to the Digital Mortgage, allowing joint borrower applications.
Approximately $200 million of Digital Mortgages were settled with upward momentum in settlement volumes
through the period;
• Deployment of approximately 28,000 next generation merchant terminals with features to support
accessibility, assistance and sustainability;
• Digitisation of 146 paper forms which further simplified service requests in Consumer and Business
Banking; and
• Continued development of the Corporate Cash Management platform, in line with the Group’s aspiration to be
the number one transactional banking partner for Australian institutional customers.

22
WESTPAC GROUP 2023 INTERIM FINANCIAL RESULTS
Review of Group operations
Risk and regulatory spend included:
• The Customer Outcomes and Risk Excellence (CORE program) which was established to improve our
management of risk and culture. Of the Program’s 353 activities, 306 or 87% have been completed while
264 or 75% have been assessed by the independent reviewer as complete and effective. The Program
continues into Second Half 2023, with a focus on demonstrating risk and culture changes have been
embedded into the business in a consistent, integrated, and sustainable manner;
• Implementation of APRA’s revised Basel III Capital Adequacy Prudential Standards APS112, APS113 and APS115;
• Implementation of ISO 20022, a new standard format for international and high value domestic payments
messaging between banks, providing a common language for payments data around the world that will see
faster and more reliable payments;
• Expansion of scam protections through the introduction of Westpac Verify and automated push notifications
to customers for suspected fraud and scams. Westpac Verify is a feature which alerts customers when there is
a potential mismatch in payment details. These enhancements help stop payments to suspect accounts; and
• Progress on requirements to comply with the RBNZ’s revised outsourcing policy, BS11.
Capitalised software
Half YearHalf YearHalf Year% Mov’t
MarchSeptMarchMar 23Mar 23
$m202320222022- Sept 22- Mar 22
Balance as at beginning of period 2,264 1,921 1,840 18 23
Total additions 595 677 424 (12) 40
Amortisation expense(250)(262)(283)(5)(12)
Impairment expense- (56)(54)(100)(100)
Other adjustments 23 (16)(6)largelarge
Balance as at end of period 2,632 2,264 1,921 16 37
Average amortisation period (years) 4.5 3.6 3.1 0.9 years1.4 years
Capitalised software increased by 37% on the prior corresponding period, and by 16% on the prior period, to
$2,632 million. The increase was driven by capitalisation of investments associated with the Group’s strategic
priorities. Additions included investment in One Banking Platform, WNZL regulatory requirements and our
payments infrastructure. Amortisation was lower and the average amortisation period longer as most of these
programs continue to be in the build phase.

23
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2 SEGMENT REPORTING
3
2023 INTERIM

FINANCIAL REPORT
4
OTHER INFORMATION
5 GLOSSARY
WESTPAC GROUP

2023 INTERIM FINANCIAL RESULTS
Review of Group operations
1.5.9 Credit impairment charges
Half YearHalf YearHalf Year% Mov’t
MarchSeptMarchMar 23Mar 23
$m202320222022- Sept 22- Mar 22
Individually assessed provisions (IAPs)
New IAPs(76)(123)(97)(38)(22)
Write-backs 86 51 64 69 34
Recoveries 128 87 102 47 25
Total IAPs, write-backs and recoveries 138 15 69 large 100
Collectively assessed provisions (CAPs)
Write-offs(218)(228)(218)(4)-
Other changes in CAPs(310) 17 10 largelarge
Total new CAPs(528)(211)(208) 150 154
Total credit impairment (charges)/benefits(390)(196)(139) 99 181
First Half 2023 – First Half 2022
The impairment charge of $390 million represents 10 basis points of average loans, up from 4 basis points. The
rise in impairment charges was driven by a higher CAP charge more than offsetting an IAP benefit. This compared
to a CAP charge of $208 million and an IAP benefit of $69 million in the prior corresponding period.
The CAP charge of $528 million comprised other changes in CAP of $310 million and write-offs of $218 million.
The other changes in CAP were due to:
• Weakening forward-looking economic indicators;
• Rising early cycle delinquencies in consumer portfolios due to higher interest rates and inflationary pressures
on household budgets; and
• An increase in stress within New Zealand business portfolios reflecting higher interest rates, inflation and
recent weather events.
The IAP benefit of $138 million comprised:
• Recoveries of $128 million, including a benefit from a large exposure which had been previously written off;
• Write-backs of $86 million mainly due to rating upgrades following restructurings and refinancing externally;
and
• New IAPs of $76 million, with no new IAP greater than $10 million.
First Half 2023 – Second Half 2022
The impairment charge increased to $390 million and was 10 basis points of average loans compared to 5 basis
points. The key driver of the higher charge was a 150% increase in CAP to $528 million offset by an IAP benefit of
$138 million reflecting the factors noted above.
1.5.10 Income tax expense
First Half 2023 – First Half 2022
The effective tax rate of 28.8% in First Half 2023 was lower than the effective tax rate of 30.4% in First Half 2022
due to the sale of AAML which resulted in an accounting gain, but a loss for tax purposes in First Half 2023.
First Half 2023 – Second Half 2022
The effective tax rate of 28.8% in First Half 2023 was significantly lower than the Second Half 2022 effective tax
rate of 35.6% mainly due to:
• The sale of AAML which resulted in an accounting gain, but a tax loss in First Half 2023; compared to
• Second Half 2022 which included the sale of Australian life insurance which resulted in an accounting loss, that
was not deductible for tax purposes.
The effective tax rate is below the Australian corporate tax rate of 30%.
1.5.11 Non-controlling interests
Non-controlling interests represent results of non-wholly owned subsidiaries attributable to shareholders other
than Westpac. This predominantly include profits attributable to the 10.1% shareholding in Westpac Bank-PNG-
Limited that are not owned by Westpac.
Review of Group
operations

24
WESTPAC GROUP 2023 INTERIM FINANCIAL RESULTS
Review of Group operations
1.6 Credit quality
Credit quality key metrics
As atAs atAs at
31 March30 Sept31 March
202320222022
Stressed exposures by credit grade as a % of TCE:
Impaired 0.12% 0.13% 0.14%
Non-performing not impaired
1
0.55% 0.51% 0.56%
Watchlist and substandard 0.43% 0.43% 0.40%
Total stressed exposures 1.10% 1.07% 1.10%

Gross impaired exposures to TCE for business and institutional:
Business Australia 0.53% 0.55% 0.60%
Business New Zealand 0.20% 0.16% 0.16%
Institutional 0.03% 0.05% 0.07%

Mortgage 90+ day delinquencies:
Group 0.68% 0.69% 0.82%
Australia 0.73% 0.75% 0.88%
New Zealand 0.29% 0.22% 0.30%

Other consumer loans 90+ day delinquencies:
Group 1.54% 1.56% 1.62%
Australia 1.58% 1.60% 1.64%
New Zealand 1.13% 1.03% 1.42%

Other:
Gross impaired exposures to gross loans 0.20% 0.20% 0.23%
Gross impaired exposure provisions to gross impaired exposures 42.80% 47.95% 48.03%
Total provisions to gross loans 65 bps 62 bps 65 bps
Collectively assessed provisions to credit risk weighted assets 133 bps 116 bps 116 bps
Total provisions to credit risk weighted assets 145 bps 128 bps 130 bps
Impairment charges/(benefits) to average loans 10 bps 5 bps 4 bps
Net write-offs to average gross loans 4 bps 8 bps 13 bps
Movement in gross impaired exposures
Half YearHalf YearHalf Year% Mov’t
MarchSeptMarchMar 23Mar 23
$m202320222022- Sept 22- Mar 22
Balance as at beginning of period 1,514 1,653 2,142 (8)(29)
New and increased - individually managed 174 208 222 (16)(22)
Write-offs(271)(368)(566)(26)(52)
Returned to performing or repaid(282)(215)(221) 31 28
Portfolio managed - new/increased/returned/repaid 385 207 89 86 large
Exchange rate and other adjustments 1 29 (13)(97)large
Balance as at end of period 1,521 1,514 1,653 - (8)
1. Previously disclosed as 90 day past due and not impaired. In First Half 2023, Westpac applied amendments to APS 220 Credit Risk
Management in relation to the definition of non-performing loans. As a result, the ratio in Half Year 2023 is not directly comparable
to past periods. On adoption of the new definition, the impact to the ratio was a 4bps increase, largely due to changes relating to an
extension of the period over which exposures remain classified as non-performing before potential reclassification to performing.

25
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2 SEGMENT REPORTING
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2023 INTERIM

FINANCIAL REPORT
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OTHER INFORMATION
5 GLOSSARY
WESTPAC GROUP

2023 INTERIM FINANCIAL RESULTS
Review of Group operations
Credit quality First Half 2023 – Second Half 2022
Portfolios continued to perform well with stressed exposures as a percentage of TCE increasing by a modest
3 basis points to 1.10% at 31 March 2023, predominantly from a regulatory reporting change as described below.
The composition and drivers of stressed exposures were:
• Impaired exposures of 12 basis points, a decline of 1 basis point reflecting lower impaired exposures in WIB;
• Non-performing not impaired exposures of 55 basis points, an increase of 4 basis points predominantly from
the impact of regulatory changes relating to an extension of the period over which exposures remain classified
as non-performing before potential reclassification to performing. Prior periods have not been restated; and
• Watchlist and substandard exposures of 43 basis points, stable compared to the prior period.
Gross impaired exposures to gross loans remained steady at 0.20%. The provision coverage of the impaired
portfolio was 43%, down from 48% due in part to write-backs of a small number of large exposures with high
coverage in Business and WIB. Impaired exposures have an appropriate level of provision cover.
Portfolio segments First Half 2023 – Second Half 2022
Stressed exposures in WIB declined 7 basis points to 0.28% of TCE. This improvement was driven by a reduction
of watchlist and impaired exposures, partly due to some of these exposures being externally refinanced.
Stressed exposures in the Australian Business segment fell by 19 basis points to 4.74% of TCE. This reflected a
reduction in watchlist, substandard and impaired exposures. The accommodation, café and restaurant sector saw
a sizeable reduction in stressed exposure. The reduction in stressed TCE in the service sector partly reflected
the upgrade of one large exposure. The commercial real estate portfolio experienced an increase in stressed
exposures, up 31 basis points to 2.38% of TCE. The rise in stress has been most evident in the retail and industrial
sectors. Positively, the weighted average loan to value ratio for the property portfolio remains below 50%.
Australian mortgage 90+ day delinquencies continued to reduce. The 2 basis point decline to 0.73% was due to
a reduction in the hardship portfolio as customers completed their serviceability period. There was an increase in
early cycle consumer lending delinquencies driven by rising interest rates and inflationary pressures on customers.
Properties in possession were 227, an increase of only 3 despite the slowdown in the property market.
Realised Australian mortgage losses remained low at $11 million, accounting for less than 1 basis point of Australian
mortgages.
Australian other consumer 90+ day delinquencies declined by 2 basis points to 1.58%. An improvement in arrears
performance across the portfolio of 11 basis points was partly offset by 9 basis points decline from the run-off
in certain portfolios, in particular, auto finance. There was an increase in early cycle delinquencies due to higher
interest rates and inflation.
In New Zealand, credit quality remains sound, although credit quality metrics are showing early signs of
deterioration across all portfolios. Stressed exposures to TCE rose by 36 basis points to 1.33%. The increase in
stress was driven by downgrades across watchlist and substandard exposures in the agriculture, forestry and
fishing, and property sectors while impaired exposures to TCE were little changed.
New Zealand 90+ day mortgage delinquencies were up 7 basis to 0.29%. Other consumer 90+ day delinquencies
increased by 10 basis points to 1.13%. The higher delinquencies in both portfolios reflected seasonal factors
alongside the impact of increasing interest rates and inflationary pressures on customers.

26
WESTPAC GROUP 2023 INTERIM FINANCIAL RESULTS
Review of Group operations
Provisioning First Half 2023 – Second Half 2022
As atAs atAs at% Mov’t
31 March30 Sept31 MarchMar 23Mar 23
$m202320222022- Sept 22- Mar 22
Provision for ECL on loans and credit commitments
Collectively assessed provisions
Modelled provision 3,810 3,473 3,038 10 25
Overlays 720 700 1,136 3 (37)
Total collectively assessed provisions 4,530 4,173 4,174 9 9
Individually assessed provisions 382 452 501 (15)(24)
Total provision for ECL on loans and credit commitments 4,912 4,625 4,675 6 5
Provision for ECL on debt securities at amortised cost 6 6 4 - 50
Provision for ECL on debt securities at FVOCI
1
5 4 3 25 67
Total provision for ECL 4,923 4,635 4,682 6 5
Total provisions increased 6% to $4,923 million. The increase was driven by higher CAP of $358 million, partly
offset by an IAP release of $70 million.
The increase in CAP was due to:
• Weakening of forward-looking economic inputs in the provisioning calculation;
• A rise in the consumer portfolios early cycle delinquencies; and
• Higher watchlist and substandard exposures in New Zealand portfolios.
The $20 million increase in overlays captures the projected impact of weather-related events on New Zealand
portfolios. A portion of the Australian construction sector overlay was released as the risk is now covered under
modelled CAP.
The IAP release of $70 million reflected write-backs in WIB and Business portfolios more than offsetting new IAP.
The economic scenario weights, which underpin the provisions for expected credit losses, remain unchanged:
As atAs atAs at
31 March30 Sept31 March
Scenario weightings (%)202320222022
Upside 5 5 5
Base 50 50 50
Downside 45 45 45
The elevated downside weight of 45% reflects the continuing uncertainty and downside risks including the impact
of rising interest rates, high inflation and geopolitical risks.
1. FVOCI represents fair value through other comprehensive income.

27
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2 SEGMENT REPORTING
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2023 INTERIM

FINANCIAL REPORT
4
OTHER INFORMATION
5 GLOSSARY
WESTPAC GROUP

2023 INTERIM FINANCIAL RESULTS
Review of Group operations
1.7 Balance sheet and funding
1.7.1 Balance sheet
As atAs atAs at% Mov’t
31 March30 Sept31 MarchMar 23Mar 23
$m202320222022- Sept 22- Mar 22
Assets
Loans 749,931 739,647 719,556 1 4
Housing 534,021 523,952 516,403 2 3
Personal 13,151 13,897 15,250 (5)(14)
Business 207,229 206,004 192,098 1 8
Provision for expected credit losses (ECL)(4,470)(4,206)(4,195) 6 7
Liquid assets
1
210,463 194,058 178,275 8 18
Assets held for sale- 75 2,700 (100)(100)
All other assets 58,714 80,418 64,218 (27)(9)
Total assets 1,019,108 1,014,198 964,749 - 6
Liabilities
Customer deposits 627,585 612,834 600,872 2 4
Non-interest bearing, repayable at call 68,558 69,032 70,543 (1)(3)
Other interest bearing at call 379,861 381,944 393,493 (1)(3)
Other interest bearing term 179,166 161,858 136,836 11 31
Certificates of deposit 48,767 46,295 44,734 5 9
Debt issues 148,952 144,868 133,629 3 11
Term funding from central banks 34,523 33,277 31,732 4 9
Liabilities held for sale- 32 684 (100)(100)
All other liabilities 86,613 106,383 82,765 (19) 5
Total liabilities 946,440 943,689 894,416 - 6
Equity
Total equity attributable to owners of WBC 72,624 70,452 70,279 3 3
NCI 44 57 54 (23)(19)
Total equity 72,668 70,509 70,333 3 3
1. Excludes assets held for sale.

28
WESTPAC GROUP 2023 INTERIM FINANCIAL RESULTS
Review of Group operations
1.7.2 Funding and liquidity risk management
Liquidity risk is the risk that the Group will be unable to fund assets and meet obligations as they become due.
This risk is inherent for all banks as intermediaries between depositors and borrowers. The Group has a Liquidity
Risk Management Framework which seeks to meet our cash flow obligations under a wide range of market
conditions and scenarios, as well as meeting the requirements of the LCR and NSFR.
The Group’s Liquidity Risk Management Framework is approved by the Board and sets out the Group’s funding
and liquidity risk appetite. It also determines the roles and responsibilities of key people managing funding and
liquidity risk, risk reporting and control processes. In addition, it sets out the limits and targets used to manage
Westpac’s balance sheet, including wholesale funding limits, liquidity risk limits and stress testing.
LCR
Quarter QuarterQuarter% Mov’t
MarchSeptMarchMar 23Mar 23
$m202320222022- Sept 22- Mar 22
High Quality Liquid Assets (HQLA)
1
186,480 175,595 169,346 6 10
Committed Liquidity Facility (CLF)- 15,512 27,750 (100)(100)
Total LCR liquid assets 186,480 191,107 197,096 (2)(5)
Cash outflows in a modelled 30-day APRA defined stressed scenario
Customer deposits 96,839 101,271 96,351 (4) 1
Wholesale funding 14,990 12,975 11,526 16 30
Other flows
2
25,807 31,051 36,412 (17)(29)
Total 137,636 145,297 144,289 (5)(5)
LCR
1
135% 132% 137% 396 bps(111 bps)
The LCR is designed to enhance banks’ short-term resilience, by measuring the level of HQLA, as defined, held
against its liquidity needs for a 30 calendar day period under a regulator-defined stress scenario.
Westpac’s average LCR for the quarter ended 31 March 2023 was 135%. The increase in the ratio compared to the
quarter ended 30 September 2022 was mainly due to a reduction in net cash outflows. The removal of the 10% net
cash outflow overlay in September 2022 was the largest driver of the reduction.
Average LCR-qualifying liquid assets were lower in the March quarter, with an increase in HQLA more than offset
by the reduction in the CLF. The CLF was fully phased-out by 1 January 2023.
Westpac held an average of $186.5 billion in HQLA in the March 2023 quarter, an increase of $10.9 billion on the
September 2022 quarterly average of $175.6 billion. This includes approximately $49 billion in HQLA above the
100% LCR minimum. The Group’s portfolio of HQLA provides a buffer against periods of liquidity stress, as well
as meeting regulatory requirements. HQLA include cash, deposits with central banks, government and semi-
government securities, and are recognised in the LCR calculation at market value.
Westpac uses derivatives to hedge the interest rate risk of the liquid asset portfolio and reduce exposure to
changes in fair value. Changes in the fair value of liquid assets are recognised in Other Comprehensive Income
(OCI) through the relevant equity reserve or the income statement.
The Group also has access to non-HQLA and other assets that are eligible for re-purchase with a central bank
under certain conditions and provide a source of additional liquidity for the Group. These assets include private
securities and self-originated AAA-rated mortgage-backed securities.
1. Includes balances presented as held for sale.
2. Other flows include credit and liquidity facilities, collateral outflows and inflows from customers.
Review of Group
operations

29
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FINANCIAL REPORT
4
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5 GLOSSARY
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2023 INTERIM FINANCIAL RESULTS
Review of Group operations
NSFR
As atAs atAs at% Mov’t
31 March30 Sept31 MarchMar 23Mar 23
$m202320222022- Sept 22- Mar 22
Available stable funding 701,432 687,442 669,655 2 5
Required stable funding 589,569 570,185 536,022 3 10
Net stable funding ratio 119% 121% 125%(159 bps)large
The NSFR is designed to encourage banks’ longer-term funding resilience. To comply, banks are required to maintain
an NSFR of at least 100% at all times. Westpac’s NSFR was 119% at 31 March 2023, down from 121% at 30 September
2022. The decrease in the ratio over the half was mainly due to the impact of APRA’s changes to APS 112 Capital
Adequacy which resulted in a higher stable funding requirement for certain mortgages.
Funding
The Group monitors the composition and stability of its funding so that it remains within its funding risk appetite
and meets the regulatory requirements of both the LCR and NSFR. During First Half 2023, the Group maintained
its strong funding position.
Funding by residual maturity
As at 31 March 2023As at 30 Sept 2022As at 31 March 2022
$mRatio %$mRatio %$mRatio %
Wholesale funding
Less than 12 months 78,430 8.1 79,098 8.4 74,285 8.1
Long term to short term scroll
1
44,431 4.6 38,896 4.1 26,527 2.9
Wholesale funding - residual maturity less than 12
months 122,861 12.7 117,994 12.5 100,812 11.0
Securitisation 4,342 0.4 4,973 0.5 4,968 0.5
Greater than 12 months 139,964 14.5 136,586 14.5 138,108 15.2
Wholesale funding - residual maturity greater than 12
months 144,306 14.9 141,559 15.0 143,076 15.7
Customer deposits 627,585 65.0 612,834 65.1 600,872 65.7
Equity
2
71,759 7.4 69,967 7.4 69,244 7.6
Total funding 966,511 100.0 942,354 100.0 914,004 100.0
Deposit to loan ratio
As at 31 March 2023As at 30 Sept 2022As at 31 March 2022
$mRatio %$mRatio %$mRatio %
Customer deposits 627,585 612,834 600,872
Loans 749,931 83.7 739,647 82.9 719,556 83.5
Customer deposits
Customer deposits accounted for 65.0% of the Group’s total funding at 31 March 2023, a moderate decrease
compared to 65.1% at 30 September 2022. During the half, customer deposits grew strongly, up $14.8 billion,
ahead of loan growth of $10.3 billion. The Group’s deposit to loan ratio increased to 83.7% from 82.9% at
30 September 2022 reflecting the stronger deposit growth.
1. Scroll represents wholesale funding with an original maturity greater than 12 months that now has a residual maturity less than
12 months.
2. Includes total share capital, share-based payment reserve and retained profits.

30
WESTPAC GROUP 2023 INTERIM FINANCIAL RESULTS
Review of Group operations
Long term wholesale funding
Long term funding with a residual maturity greater than 12 months made up 14.5% of the Group’s total funding at
31 March 2023, unchanged on 30 September 2022. Funding from securitisation accounted for a further 0.4% of
total funding, a small decrease compared to 0.5% at 30 September 2022.
The Group maintained good access to global capital markets throughout First Half 2023, despite periods of
significant dislocation in March 2023. The Group raised $20.0 billion of long term wholesale funding, leveraging
the scale and diversity of its wholesale funding franchise. New issuance included senior and covered bonds in
a range of tenors and currencies, including AUD, USD, EUR, GBP and others. During the First Half, the Group’s
New Zealand subsidiary also re-established its US Medium Term Note Programme under Rule 144A and Reg S,
adding further diversity to the Group’s funding profile. The Group also drew down on the RBNZ’s Funding for
Lending Programme through its New Zealand subsidiary.
Short term wholesale funding
Wholesale funding with a residual maturity less than 12 months accounted for 12.7% of the Group’s total funding
at 31 March 2023, up from 12.5% at 30 September 2022. The increase in short term funding reflects a higher
proportion of long term funding where the residual maturity is less than one year, referred to as scroll. This
includes $22 billion of maturities relating to the Term Funding Facility. The short term wholesale funding portfolio,
including long term to short term scroll, had a weighted average maturity of 128 days, up from 104 days at
30 September 2022.
Equity
Funding from equity made up 7.4% of total funding at 31 March 2023 and was unchanged on the prior half.

31
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FINANCIAL REPORT
4
OTHER INFORMATION
5 GLOSSARY
WESTPAC GROUP

2023 INTERIM FINANCIAL RESULTS
Review of Group operations
1.8 Capital and dividends
As atAs atAs at% Mov’t
31 March30 Sept31 MarchMar 23Mar 23
202320222022- Sept 22- Mar 22
Level 2 regulatory capital structure
Common equity Tier 1 (CET1) capital after deductions ($m) 55,644 53,943 52,126 3 7
Risk weighted assets (RWA) ($m) 452,946 477,620 459,956 (5)(2)
CET1 capital ratio 12.28% 11.29% 11.33% 99 bps 95 bps
Additional Tier 1 capital ratio 2.20% 2.10% 2.08% 10 bps 12 bps
Tier 1 capital ratio 14.48% 13.39% 13.41% 109 bps 107 bps
Tier 2 capital ratio 5.27% 5.01% 4.30% 26 bps 97 bps
Total regulatory capital ratio 19.75% 18.40% 17.71% 135 bps 204 bps
APRA leverage ratio 5.46% 5.61% 5.60%(15 bps)(14 bps)
Level 1 regulatory capital structure
CET1 capital after deductions ($m) 52,021 50,722 48,684 3 7
Risk weighted assets ($m) 416,254 447,010 433,643 (7)(4)
Level 1 CET1 capital ratio 12.50% 11.35% 11.23% 115 bps 127 bps
APRA’s revised capital framework
APRA’s revised capital framework (Basel III) became effective on 1 January 2023 and included updated prudential
standards for capital adequacy and credit risk capital. The objectives of the revised capital framework are to
provide flexibility for banks to operate in all environments including in times of stress, enhance risk sensitivity and
improve comparability including with international standards. Revisions include:
• Capital requirements: Total CET1 Requirement for domestic systemically important banks (D-SIBs) (including
Westpac), is 10.25%
1
. This comprises:
–Minimum CET1 of 4.5%;
–Capital conservation buffer (CCB) of 4.75%; and
–Countercyclical capital buffer of 1.0%.
• Calculation of Credit RWA: Several changes with the most significant including:
–Asset classifications used to determine RWA;
–Greater use of internal modelling within property finance and mortgages which reduced risk weightings;
–Higher capital requirements for higher risk segments such as interest only and investor mortgages;
–Revised credit conversion factors (CCFs) for the calculation of off-balance sheet exposures which has
reduced exposure at default. CCFs are percentage values used to convert an off-balance sheet exposure
into an on-balance sheet equivalent; and
–New Zealand RWA largely determined by the Reserve Bank of New Zealand (RBNZ) requirements which
increased RWA compared to prior periods.
• Introduction of a capital floor which limits the capital benefit available to advanced banks to no more than
72.5% of the RWA outcomes available under the standardised approach; and
• Introduction of a minimum leverage ratio of 3.5% and amendments of the leverage exposure calculation.
In addition, APRA stated that it expects D-SIBs, including Westpac, to operate with a CET1 capital ratio above 11%
in normal operating conditions.
These revisions are reflected in the disclosed capital ratios at 31 March 2023. Prior periods have not been restated
with capital reported under APRA’s, then applicable, capital framework.
1. Noting that APRA may apply higher CET1 requirements for an individual ADI.
Review of Group
operations

32
WESTPAC GROUP 2023 INTERIM FINANCIAL RESULTS
Review of Group operations
Additional Tier 1 and Tier 2 capital movement for First Half 2023
The redemption of an A$0.25 billion Tier 2 capital note during the half decreased the total regulatory capital ratio
by 6 basis points. There were no Additional Tier 1 or Tier 2 capital instruments issued.
On 2 December 2021, APRA announced a requirement for D-SIBs, including Westpac, to increase total
capital requirements by 4.5 percentage points of RWA under its capital adequacy framework to be met by
1 January 2026. The increase in total capital is expected to be met through additional Tier 2 capital.
1
Leverage ratio
The leverage ratio represents the amount of Tier 1 capital relative to exposure
2
. At 31 March 2023, Westpac’s
leverage ratio was 5.46%, down 15 basis points from 30 September 2022 mostly due to the increase in total
exposures under the revised capital framework which was partly offset by higher Tier 1 capital.
Internationally comparable capital ratios
APRA’s revised capital adequacy requirements are more conservative than those of the Basel Committee on
Banking Supervision, leading to lower reported capital ratios when compared to international peers. In line with
the revised capital framework, the internationally comparable ratio methodology has also been updated. On
10 March 2023 the Australian Banking Association released its study on the comparability of APRA’s new capital
framework and finalised Basel reforms.
The table below calculates the Group’s reported capital ratios with reference to this study.
As atAs atAs at% Mov’t
31 March30 Sept31 MarchMar 23Mar 23
%202320222022- Sept 22- Mar 22
Internationally comparable capital ratios
CET1 capital ratio 18.14% 17.57% 17.36% 57 bps 78 bps
Tier 1 capital ratio 21.07% 20.57% 20.23% 50 bps 84 bps
Total regulatory capital ratio 28.24% 27.75 % 26.16% 49 bps 208 bps
Leverage ratio 5.91% 6.00% 6.10%(9 bps)(19 bps)
1. Reflecting the net impact of movements in the foreign currency translation reserve and RWA.
Capital management strategy
Westpac evaluates its approach to capital management through an Internal Capital Adequacy Assessment
Process (ICAAP). Key features include:
• The development of a capital management strategy, including consideration of regulatory capital minimums,
capital buffers and contingency plans;
• Consideration of regulatory capital requirements and the perspectives of external stakeholders including rating
agencies as well as equity and debt investors; and
• A stress testing framework that challenges the capital measures, coverage and capital requirements including
the impact of adverse economic scenarios.
The Board has determined that Westpac will target a CET1 operating capital range of between 11.0% and 11.5%, in
normal operating conditions.
CET1 capital ratio movement for First Half 2023 (basis points)
1
CCEETT11ccaappiittaallrraattiioommoovveemmeennttffoorrFFiirrssttHHaallff22002233
((bbaassiissppooiinnttss))
11.29
12.28
(45)
(16)
88
62
7
3
Sep-22Net Profit2H22 dividend
net of DRP
Revised capital
framework
RWA movementCapital
deductions
and other
items
FX translation
impacts
Mar-23
Westpac’s Level 2 CET1 capital ratio was 12.28% at 31 March 2023, 99 basis points higher than 30 September 2022.
Key movements included:
• First Half 2023 net profit: 88 basis points increase;
• Payment of the 2022 final dividend net of the DRP: 45 basis points reduction;
• APRA’s revised capital framework: 62 basis points addition;
• Other RWA: 7 basis points increase with a reduction in Interest Rate Risk in the Banking Book (IRRBB) RWA
more than offsetting an increase in market RWA;
• Capital deductions and other capital movements: reduced the ratio by 16 basis points. The main drivers were:
–Higher deduction for deferred tax assets, 7 basis points decrease;
–Higher deductions for capitalised software and expenditure, 10 basis points decrease; and
–Other capital deductions, 1 basis point increase;
• Foreign currency impacts added 3 basis points
1
.
The net profit and capital deductions outlined above include the divestment of AAML of 8 basis points.
Westpac’s Level 1 CET1 capital ratio was 12.50% at 31 March 2023, 115 basis points higher than 30 September 2022
with movements in line with Level 2 and a slightly higher impact from the revised capital framework as Level 1
excludes New Zealand.

33
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2 SEGMENT REPORTING
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2023 INTERIM

FINANCIAL REPORT
4
OTHER INFORMATION
5 GLOSSARY
WESTPAC GROUP

2023 INTERIM FINANCIAL RESULTS
Review of Group operations
Additional Tier 1 and Tier 2 capital movement for First Half 2023
The redemption of an A$0.25 billion Tier 2 capital note during the half decreased the total regulatory capital ratio
by 6 basis points. There were no Additional Tier 1 or Tier 2 capital instruments issued.
On 2 December 2021, APRA announced a requirement for D-SIBs, including Westpac, to increase total
capital requirements by 4.5 percentage points of RWA under its capital adequacy framework to be met by
1 January 2026. The increase in total capital is expected to be met through additional Tier 2 capital.
1
Leverage ratio
The leverage ratio represents the amount of Tier 1 capital relative to exposure
2
. At 31 March 2023, Westpac’s
leverage ratio was 5.46%, down 15 basis points from 30 September 2022 mostly due to the increase in total
exposures under the revised capital framework which was partly offset by higher Tier 1 capital.
Internationally comparable capital ratios
APRA’s revised capital adequacy requirements are more conservative than those of the Basel Committee on
Banking Supervision, leading to lower reported capital ratios when compared to international peers. In line with
the revised capital framework, the internationally comparable ratio methodology has also been updated. On
10 March 2023 the Australian Banking Association released its study on the comparability of APRA’s new capital
framework and finalised Basel reforms.
The table below calculates the Group’s reported capital ratios with reference to this study.
As atAs atAs at% Mov’t
31 March30 Sept31 MarchMar 23Mar 23
%202320222022- Sept 22- Mar 22
Internationally comparable capital ratios
CET1 capital ratio 18.14% 17.57% 17.36% 57 bps 78 bps
Tier 1 capital ratio 21.07% 20.57% 20.23% 50 bps 84 bps
Total regulatory capital ratio 28.24% 27.75 % 26.16% 49 bps 208 bps
Leverage ratio 5.91% 6.00% 6.10%(9 bps)(19 bps)
1. Reflecting the net impact of movements in the foreign currency translation reserve and RWA.
1. Within Westpac’s funding, this increase in total capital is likely to be offset by a decrease in long-term wholesale funding.
2. As defined under Attachment D of APS110: Capital Adequacy.

34
WESTPAC GROUP 2023 INTERIM FINANCIAL RESULTS
Review of Group operations
Risk Weighted Assets
APRA’s new capital framework commenced 1 January 2023 requires a revised credit asset classes. The revised
credit asset classes do not align to prior period asset classes, and therefore prior period RWA’s have not been
included in the table below.
As atAs atAs at% Mov’t
31 March30 Sept31 MarchMar 23Mar 23
$m202320222022- Sept 22- Mar 22
Credit risk
1
:
Corporate 24,309
Business lending 25,928
Property finance 31,234
Large corporate 21,228
Sovereign 2,357
Financial institution 15,057
Residential mortgages 109,164
Australian credit cards 3,957
Other retail 5,304
Small business 18,219
Specialised lending 2,931
Securitisation 6,400
Standardised 29,139
New Zealand
1
45,331
Total credit risk 340,558 362,098 359,673 (6)(5)
Market risk 15,168 9,290 9,596 63 58
Operational risk 56,900 59,063 57,875 (4)(2)
Interest rate risk in the banking book (IRRBB) 34,748 42,782 27,710 (19) 25
Other 5,572 4,387 5,102 27 9
Total risk weighted assets 452,946 477,620 459,956 (5)(2)
Total RWA decreased by 5.2% to $452.9 billion from both lower credit and non-credit RWA.
Credit RWA decreased by $21.5 billion. Key movements included:
• Implementation of the revised capital framework reduced credit RWA by $23.7 billion. Key drivers were:
–Property Finance: Internal modelling has reduced the risk weight of property finance from 85% to 61%.
These exposures were formerly calculated using the IRB slotting approach;
– Mortgages: Revisions to mortgage models reduced RWA, although additional capital was required for
higher risk segments, including standardised risk weights for some exposures. Overall, this change resulted
in a reduction in the mortgage risk weight by 110 basis points to 23.9%; and
– Off-balance sheet exposures: EAD has reduced by $40.4 billion mainly related to changes in CCFs for non-
retail exposures.
• A $1.0 billion benefit from improved credit quality in corporate and property finance exposures which more
than offset higher early cycle delinquencies in consumer portfolios;
• A $2.4 billion decrease from counterparty credit risk and mark-to-market related credit risk primarily due to
decreases in the mark-to-market value of derivatives from changes in underlying foreign currency rates;
• A $3.6 billion increase from higher lending across residential mortgages, specialised lending and corporates; and
• A $2.0 billion increase from foreign currency translation impacts, predominantly the depreciation of the A$
against the NZ$.
Non-credit RWA were $3.1 billion lower. Key movements included:
• IRRBB RWA: $8.0 billion decrease due to a lower regulatory embedded loss. This occurred as the spread
between the average rate on capital hedges and market rates have narrowed;
• Operational RWA: $2.2 billion decrease from APRA’s revised annual SMA
2
. This was mainly driven by lower
operational losses; and
• Market RWA: $5.9 billion increase from a combination of market risk exposure changes and higher market
volatility.
1. Covers credit and securitisation exposures regulated under RBNZ prudential requirements.
2. Westpac adopted the SMA to calculate operational risk capital from 1 January 2022. Under the revised standard, operational risk is
calculated annually based on annual audited financial statements.

35
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2 SEGMENT REPORTING
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2023 INTERIM

FINANCIAL REPORT
4
OTHER INFORMATION
5 GLOSSARY
WESTPAC GROUP

2023 INTERIM FINANCIAL RESULTS
Review of Group operations
Capital adequacy
As atAs atAs at
31 March30 Sept31 March
$m202320222022
Tier 1 capital
CET1 capital
Paid up ordinary capital 39,824 39,666 39,667
Treasury shares(759)(712)(708)
Equity based remuneration 1,907 1,843 1,824
Foreign currency translation reserve(160)(537)(445)
Accumulated other comprehensive income(38) 28 183
Non-controlling interests - other 44 57 54
Retained earnings 30,686 29,063 28,362
Less retained earnings in life and general insurance, funds management and securitisation
entities(343)(300)(1,144)
Deferred fees 276 300 265
Total CET1 capital 71,437 69,408 68,058
Deductions from CET1 capital
Goodwill (excluding funds management entities)(7,943)(7,914)(7,935)
Deferred tax assets(2,065)(1,746)(1,812)
Goodwill in life and general insurance, funds management and securitisation entities(149)(204)(209)
Capitalised expenditure(2,250)(2,148)(2,013)
Capitalised software(2,631)(2,263)(1,914)
Investments in subsidiaries not consolidated for regulatory purposes(201)(316)(1,541)
Regulatory expected downturn loss in excess of eligible provisions(2)(144)(164)
Defined benefit superannuation fund surplus(67)(219)(60)
Equity investments(209)(187)(161)
Regulatory adjustments to fair value positions(276)(324)(123)
Total deductions from CET1 capital(15,793)(15,465)(15,932)
Total CET1 capital after deductions 55,644 53,943 52,126
Additional Tier 1 capital
Basel III complying instruments 9,958 10,021 9,566
Total Additional Tier 1 capital 9,958 10,021 9,566
Deductions from Additional Tier 1 capital
Holdings of own and other financial institutions Additional Tier 1 capital instruments(25)(25)(25)
Total deductions from Additional Tier 1 capital(25)(25)(25)
Net Additional Tier 1 regulatory capital 9,933 9,996 9,541
Net Tier 1 regulatory capital 65,577 63,939 61,667
Tier 2 capital
Basel III complying instruments 23,160 23,791 20,147
Eligible general reserve for credit loss 1,103 411 158
Total Tier 2 capital 24,263 24,202 20,305
Deductions from Tier 2 capital
Investments in subsidiaries not consolidated for regulatory purposes- - (60)
Holdings of own and other financial institutions Tier 2 capital instruments(367)(243)(445)
Total deductions from Tier 2 capital(367)(243)(505)
Net Tier 2 regulatory capital 23,896 23,959 19,800
Total regulatory capital 89,473 87,898 81,467
Risk weighted assets 452,946 477,620 459,956
CET1 capital ratio 12.28% 11.29% 11.33%
Additional Tier 1 capital ratio 2.20% 2.10% 2.08%
Tier 1 capital ratio 14.48% 13.39% 13.41%
Tier 2 capital ratio 5.27% 5.01% 4.30%
Total regulatory capital ratio 19.75% 18.40% 17.71%

36
WESTPAC GROUP 2023 INTERIM FINANCIAL RESULTS
Review of Group operations
Dividends
Half YearHalf YearHalf Year% Mov’t
MarchSeptMarchMar 23Mar 23
202320222022- Sept 22- Mar 22
Ordinary dividend - Interim (cents per share) 70 - 61 - 15
Ordinary dividend - Final (cents per share)- 64 - (100)-
Payout ratio
1
61.33% 92.73% 65.06%large(373.00)
Adjusted franking credit balance ($m) 3,396 3,298 3,135 3 8
The Board has determined an interim fully franked dividend of 70 cents per share, to be paid on 27 June 2023 to
shareholders on the register at the record date of 12 May 2023. The 2023 interim dividend represents a payout
ratio of 61.33%. In addition to being fully franked, the dividend will also carry NZ$0.07 in New Zealand imputation
credits that may be used by New Zealand tax residents.
The Board has determined to satisfy the DRP for the 2023 interim ordinary dividend by arranging for the purchase
of shares in the market by a third party. The market price used to determine the number of shares transferred
under the DRP will be set over the 10 trading days commencing 17 May 2023, with no discount applied.
Capital deduction for regulatory expected credit loss
For capital adequacy purposes APRA requires the amount of regulatory expected credit losses in excess of
eligible provisions to be deducted from CET1 capital. The table below shows the calculation of this capital
deduction.
As atAs atAs at
31 March30 Sept31 March
$m202320222022
Provisions associated with eligible portfolios
Total provisions for expected credit losses 4,923 4,635 4,682
plus provisions associated with partial write-offs 381 377 304
less ineligible provisions
2
(181)(143)(101)
Total eligible provisions 5,123 4,869 4,885
Regulatory expected downturn loss 4,101 4,690 4,947
Excess/(shortfall) in eligible provisions compared to regulatory expected downturn loss 1,022 179 (62)
CET1 capital deduction for regulatory expected downturn loss in excess of eligible provisions
3
(2)(144)(164)
1. Payout ratio excludes the dividend component of completed off-market share buy-back announced on 14 February 2022.
2. Provisions associated with portfolios subject to the Basel standardised approach to credit risk are not eligible.
3. Regulatory expected loss is calculated for portfolios subject to the Basel advanced capital IRB approach to credit risk. The comparison
between regulatory expected loss and eligible provisions is performed separately for defaulted and non-defaulted exposures.

37
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2 SEGMENT REPORTING
3
2023 INTERIM

FINANCIAL REPORT
4
OTHER INFORMATION
5 GLOSSARY
WESTPAC GROUP

2023 INTERIM FINANCIAL RESULTS
Review of Group operations
1.9 Sustainability performance summary
Westpac’s sustainability approach
Westpac’s purpose is creating better futures together. We believe that we have a role to play in helping to create
positive social, economic and environmental impact. Our 2021-2023 Sustainability Strategy sets out how we can
best serve our stakeholders and contribute to solving global challenges. It focuses on three priority areas: helping
when it matters most; backing a stronger Australia and New Zealand; and collaborating for impact.
We have a long history of sustainability disclosure, having produced our first Sustainability Report in 2002.
Progress against our 2021-2023 Sustainability Strategy with a focus on First Half 2023 is available in our Investor
Discussion Pack, with this report focusing on our climate change progress.
Progress on our Climate Action Plan
Our Climate Change Position Statement and Action Plan (Climate Action Plan), was updated in November 2022
and defines our ambition to become a net-zero, climate resilient bank.
The Climate Action Plan identifies three priority areas:
• Net-zero, climate resilient operations;
• Supporting customers’ transition to net-zero and to build their climate resilience; and
• Collaborate for impact on initiatives towards net-zero and climate resilience.
Progress in First Half 2023 has included:
1. Net-zero, climate resilient operations
We are committed to reducing the climate change impacts of our direct operations, aligned with a 1.5°C pathway
1
.
Our approach is to reduce emissions from our own operations
2
and purchase carbon credits to offset our residual
emissions. In 2022, we updated our operational emissions targets against a 2021 baseline and to increase our
supply chain emissions reduction ambition. Our targets are:
• Scope 1 and 2 absolute emissions reduction of 64% by 2025 and 76% by 2030; and
• Scope 3 supply chain (non-financed) absolute emissions reduction of 50% by 2030.
Initiatives to support these targets in First Half 2023 include:
• Delivered the second phase
3
of our renewables transition program to enable the equivalent of 100% of
Westpac’s Australian electricity demand to be sourced from renewables from Second Half 2023;
• Planning and delivery underway to source renewable electricity for our international operations by 2025;
• Operational go-live of electric vehicle charging stations in our new Western Sydney headquarters;
• Purchased Australian Carbon Credit Units (ACCUs) to offset residual emissions to support Westpac’s intention to
obtain carbon neutral certification for its direct Australian operations and supply chain (non-financed) emissions
under the Climate Active Carbon Neutral Standard for Organisations for Full Year 2023;
• Planning underway to assess the physical risks to our property portfolio resulting from climate change; and
• Developing a program to support employees reduce their home emissions.
First Half
2023
Second Half
2022
First Half
2022
2021
baseline
Market-based direct operational Scope 1 and Scope
2 greenhouse gas (GHG) emissions
4
before carbon
credits (tCO₂-e)16,860 21,28822,74362,630
% reduction to 2021 baseline
(Half Year annualised)
(46%)(32%)(27%)n/a
Share (%) of global operational electricity demand
sourced from renewables
5
59%53%52%n/a
Review of Group
operations
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. Includes Westpac Group direct operations in Australia, New Zealand, United Kingdom, United States, Germany, China, Singapore, Fiji and
Papua New Guinea.
3. The second phase consists of a virtual power purchase agreement (i.e. generation exported to grid and distributed to sites through the
national transmission and distribution network) with Flow Power to source renewable electricity from Ararat Wind Farm in Victoria and
Berri Solar Farm + Battery in South Australia. The third phase will seek to deliver the remainder of the transition to source the equivalent
of 100% of our global electricity consumption from renewables sources by the end of 2025.
4. The market-based accounting method provides a picture of Westpac’s electricity emissions in the context of its renewable energy
procurement represented by the retirement of eligible renewable energy attribute certificates.
5. Committed to sourcing the equivalent of 100% of our global electricity consumption from renewable sources by 2025. Renewables
percentage is supported by the surrender of large-scale generation certificates (LGCs) directly by, or on behalf of, Westpac at year-end
that represent 59% of Westpac’s direct First Half 2023 electricity consumption. This figure differs from the higher renewables percentage
reported under Westpac’s Climate Active Public Disclosure Statement due to the Climate Active Standard Electricity Accounting
methodology recognising jurisdictional renewable energy targets and the large-scale renewable energy target

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WESTPAC GROUP 2023 INTERIM FINANCIAL RESULTS
Review of Group operations
2. Supporting customers’ transition to net-zero and to build their climate resilience
Under this priority area, we are working towards:
• reducing our financed emissions;
• providing products and services that support customers to transition and build their climate resilience; and
• mobilising capital to incentivise development of transition technologies and climate adaptation measures.
In First Half 2023, work has included:
Progress on reducing our financed emissions
We joined the Net-Zero Banking Alliance (NZBA) in July 2022 and are committed to aligning our lending
portfolios with net-zero emissions by 2050, consistent with a 1.5°C pathway. Under our commitment we have now
set interim 2030 emission reduction targets for five sectors: upstream oil and gas, thermal coal mining, power
generation, cement production, and Australian commercial real estate (large customers with office properties)
1
.
In First Half 2023, progress has included:
• Setting sector targets
We are continuing work to set additional sector targets and expand our existing sector targets to increase the
target coverage across our portfolio - in line with our NZBA commitment.
As part of this process, we are working to build our understanding of high-emitting sectors to allow us to set
and better inform the additional targets. This work includes:
• determining appropriate 1.5°C-aligned pathways for high-emitting sectors for additional targets;
• engaging with customers and industry bodies in high-emitting sectors for additional targets to understand
their decarbonisation transition plans; and
• conducting research to better understand both the emissions profiles and targets of these sectors
(including production and emissions data) and the opportunities for transition planning and
decarbonisation.
• Operationalising sector targets
Work to help achieve the targets already set includes:
• building capabilities with an aim to ensure transaction assessments align with our Climate Action Plan;
• developing sector models to monitor and manage our targets, including decision-making frameworks for
new and existing facilities;
• improving the ways we capture, store, and use the data required to monitor and manage our targets;
• including net-zero considerations into our environment, social and governance (ESG) risk assessment tools;
• adding fossil fuel-related sector thresholds into divisional and board risk appetite statements; and
• continuing to build capability with new expert employees and training for our bankers.
Looking to continue to improve the quality of our targets and plans, we have been reviewing and testing the
methodologies, sector boundaries, and baselines of our existing targets, and will consider updates to maintain
the effectiveness and relevance of the targets.
As part of the capability uplift in Consumer and Business Banking (CBB), we established a Climate and Rural
Engagement Team to support our customers’ transition to net-zero. The team comprises individuals from a
variety of backgrounds to collaborate with stakeholders to help reduce the division’s financed emissions. The
team has a particularly important role in better supporting our bankers and customers to understand climate
risks and opportunities.
1. Refer to our Net-Zero 2030 Targets and Financed Emissions – our methodology and approach on our website for detail on our sector
targets, including scope, sector boundary and target definitions. This methodology document includes the FY21 baselines from which our
targets will be measured and discusses some of the complexities and challenges involved in setting targets and calculating baselines.

39
1 REVIEW OF GROUP

OPERATIONS
2 SEGMENT REPORTING
3
2023 INTERIM

FINANCIAL REPORT
4
OTHER INFORMATION
5 GLOSSARY
WESTPAC GROUP

2023 INTERIM FINANCIAL RESULTS
Review of Group operations
• Engaging customers
In WIB, we have continued to engage customers in sectors where we have set targets and seek to support
their businesses through the transition. During First Half 2023, engagement has focused on:
• transition plans;
• implemented and planned emission reduction initiatives; and
• sustainable finance.
CBB supports a large, more diversified customer base. To be effective, this requires a portfolio approach to
customer engagement. For example, we seek to work with customers alongside industry bodies.
We recognise that reducing emissions will not be easy for some customers, however decarbonisation will
create opportunities as well as help make businesses more resilient. Supporting customers with this transition
is key to our engagement with them.
We will seek to provide progress reports against our NZBA targets, as well as updates on any additional sector
targets, in our full year disclosures.
Progress on becoming the transition partner of choice
We recognise the significant role we can play in the transition to a net-zero economy by supporting customers
and mobilising capital.
In First Half 2023, progress has included:
• Sustainable finance
• Supported customers across 23 sustainable finance transactions
1
with a total notional value of $19.7 billion;
and
• Of the 23 sustainable finance transactions, Westpac contributed $2.1 billion of direct lending and assisted
(together with other joint lead managers) with the distribution of $7.3 billion of bonds into the capital
markets. Of these transactions, 15 were loans and 8 were bonds.
• Climate change solutions
• Achieved a cumulative $1.9 billion in new lending
2
to climate change solutions
3
to take us to over $5.7 billion
since 2020 and exceed our target of $3.5 billion in new lending from 2020 to 2023. Our total committed
exposure to climate change solutions has increased to $12.0 billion.
$bn
At
31 March
2023
At
30 Sept
2022
%
change
Climate change solutions - total committed exposure12.010.811%
Climate change solutions - new lending since 1 October 20205.73.850%
As part of our Climate Action Plan, we are developing a sustainable finance taxonomy and aim to announce a new
sustainable financing target with our Full Year 2023 results.
3. Collaborate for impact on initiatives towards net-zero and climate resilience
Addressing climate change requires collective action. We recognise the important role we can play by supporting
and participating in international, national, and industry-based initiatives to progress action on climate change.
In First Half 2023, we collaborated with Australia’s emissions-intensive industry and related businesses as part
of the Australian Industry Energy Transitions Initiative (ETI), co-convened by ClimateWorks Centre and Climate-
KIC Australia. The Australian Industry ETI released its report Pathways to industrial decarbonisation: Positioning
Australian industry to prosper in a net zero global economy on 20 February 2023. This report outlines a potential
pathway for heavy industry decarbonisation consistent with limiting global warming to 1.5°C by 2050.
We are a founding member of the Australian Sustainable Finance Institute (ASFI), and provide input on initiatives
in the Australian Sustainable Finance Roadmap. In First Half 2023 we continued our participation, through ASFI, in
the Sustainable Finance Taxonomy Project.
We are part of a global pilot testing led by United Nations Environment Programme Finance Initiative (UNEP FI)
with the private finance sector to test the draft risk management and disclosure framework from the Taskforce on
Nature-related Financial Disclosures (TNFD). The outcomes of this pilot have been fed back into the development
of the TNFD. Westpac is a forum member of the TNFD.
In First Half 2023, we have also been participating in Australian Banking Association (ABA) working groups on
improving industry practices in climate risk, climate disclosures, and financed emissions.
1. Sustainable finance transactions refers to green, social, sustainability, sustainability-linked and re-linked loans and bonds. Westpac's
approach to sustainable finance is aligned with several relevant industry guidelines and principles, such as those issued by the Loan
Market Association, International Capital Markets Association and the Climate Bond Initiative.
2. New lending represents the total of new and increases in lending commitments, excluding refinances.
3. Climate change solutions activities are defined in the Glossary section in our 2022 Sustainability Index and Datasheet.

40
WESTPAC GROUP 2023 INTERIM FINANCIAL RESULTS
Segment reporting
Segment reporting
2.0 Segment reporting
In the current period, the Group has changed its internal and external reporting from reporting cash earnings to
reporting statutory net profit. Internally, Westpac separately identifies the impact of Notable Items on income
and expenses and includes a sub-total titled “Pre-provision profit”. Pre-provision profit represents profit before
impairment charges and income tax expenses.
As segment reporting is to be consistent with the reporting internally to the Group’s key decision makers, the
segment reporting below reflects this basis of preparation and prior period balances have been restated.
ConsumerBusiness
Consumer
and
Business
Banking
Westpac
Institutional
Bank
Westpac
New
Zealand
1

(A$)
Specialist
Businesses
Group
BusinessesGroup
Half Year March 2023 ($m)
Net interest income 4,693 2,043 6,736 712 1,145 216 393 9,202
Non-interest income 297 165 462 704 116 393 (6) 1,669
Notable Items- - - - - 243 (111) 132
Net operating income 4,990 2,208 7,198 1,416 1,261 852 276 11,003
Operating expenses(2,301)(914)(3,215)(617)(574)(280)(302)(4,988)
Notable Items- - - - - - - -
Total operating expenses(2,301)(914)(3,215)(617)(574)(280)(302)(4,988)
Pre-provision profit 2,689 1,294 3,983 799 687 572 (26) 6,015
Impairment (charges)/benefits(170)(78)(248) 4 (142)(2)(2)(390)
Profit before income tax
(expense)/benefit 2,519 1,216 3,735 803 545 570 (28) 5,625
Income tax (expense)/benefit
and NCI
2
(756)(365)(1,121)(229)(154)(77)(43)(1,624)
Net profit/(loss) 1,763 851 2,614 574 391 493 (71) 4,001
Net profit includes impact of:
Notable Items (post tax)
2
- - - - - 256 (78) 178
Profit/(loss) attributable to
businesses sold
3
- - - - - 111 - 111
Half Year September 2022 ($m)
Net interest income 4,608 1,704 6,312 629 1,073 232 339 8,585
Non-interest income 288 167 455 554 128 418 34 1,589
Notable Items- - - - (12)(1,120) 334 (798)
Net operating income 4,896 1,871 6,767 1,183 1,189 (470) 707 9,376
Operating expenses(2,254)(915)(3,169)(607)(538)(313)(412)(5,039)
Notable Items(66)- (66)- - (150)(174)(390)
Total operating expenses(2,320)(915)(3,235)(607)(538)(463)(586)(5,429)
Pre-provision profit 2,576 956 3,532 576 651 (933) 121 3,947
Impairment (charges)/benefits(228) 15 (213)(27) 16 29 (1)(196)
Profit before income tax
(expense)/benefit 2,348 971 3,319 549 667 (904) 120 3,751
Income tax (expense)/benefit
and NCI
2
(703)(292)(995)(168)(192) 49 (31)(1,337)
Net profit/(loss) 1,645 679 2,324 381 475 (855) 89 2,414
Net profit includes impact of:
Notable Items (post tax)
2
(47)- (47)- (10)(1,112) 116 (1,053)
Profit/(loss) attributable to
businesses sold
3
- - - - - 74 - 74
1. Refer to section 2.3 for the Westpac New Zealand NZ$ segment reporting.
2. The tax impact of Notable Items was a reduction to income tax (expense)/benefit of $46 million in First Half 2023 (Second Half 2022:
$135 million reduction, First Half 2022: $89 million addition).
3. Refer to section 4.8 for further details.

41
1 REVIEW OF GROUP

OPERATIONS
2
SEGMENT REPORTING
3
2023 INTERIM

FINANCIAL REPORT
4
OTHER INFORMATION
5 GLOSSARY
WESTPAC GROUP

2023 INTERIM FINANCIAL RESULTS
Segment reporting
ConsumerBusiness
Consumer
and
Business
Banking
Westpac
Institutional
Bank
Westpac
New
Zealand
1

(A$)
Specialist
Businesses
Group
BusinessesGroup
Half Year 31 March 2022 ($m)
Net interest income 4,377 1,323 5,700 481 1,034 242 564 8,021
Non-interest income 324 165 489 592 151 442 36 1,710
Notable Items- - - - 132 109 258 499
Net operating income 4,701 1,488 6,189 1,073 1,317 793 858 10,230
Operating expenses(2,369)(984)(3,353)(581)(534)(370)(304)(5,142)
Notable Items- - - - - (215)(16)(231)
Total operating expenses(2,369)(984)(3,353)(581)(534)(585)(320)(5,373)
Pre-provision profit 2,332 504 2,836 492 783 208 538 4,857
Impairment (charges)/benefits 27 (158)(131)(58) 9 38 3 (139)
Profit before income tax
(expense)/benefit 2,359 346 2,705 434 792 246 541 4,718
Income tax (expense)/benefit
and NCI
2
(713)(107)(820)(128)(190)(114)(186)(1,438)
Net profit/(loss) 1,646 239 1,885 306 602 132 355 3,280
Net profit includes impact of:
Notable Items (post tax)
2
- - - - 129 (114) 164 179
Profit/(loss) attributable to
businesses sold
3
- - - - 18 94 - 112
1. Refer to section 2.3 for the Westpac New Zealand NZ$ segment reporting.
2. The tax impact of Notable Items was a reduction to income tax (expense)/benefit of $46 million in First Half 2023 (Second Half 2022:
$135 million reduction, First Half 2022: $89 million addition).
3. Refer to section 4.8 for further details.

42
WESTPAC GROUP 2023 INTERIM FINANCIAL RESULTS
Segment reporting
Businesses sold
The table below shows the profit/(loss) attributable to businesses sold on the segments by the relevant period.
Further details are provided in Section 4.8.


$mConsumerBusiness
Consumer
and
Business
Banking
Westpac
Institutional
Bank
Westpac
New
Zealand
(A$)
Specialist
Businesses
Group
BusinessesGroup
Half Year March 2023
Net interest income- - - - - - - -
Non-interest income- - - - - 140 - 140
Net operating income - - - - - 140 - 140
Operating expenses- - - - - 18 - 18
Pre-provision profit- - - - - 158 - 158
Impairment (charges)/benefits- - - - - - - -
Profit before income tax
(expense)/benefit- - - - - 158 - 158
Income tax (expense)/benefit
and NCI- - - - - (47)- (47)
Net profit- - - - - 111 - 111
Half Year Sept 2022
Net interest income- - - - - - - -
Non-interest income- - - - - 167 - 167
Net operating income - - - - - 167 - 167
Operating expenses- - - - - (49)- (49)
Pre-provision profit- - - - - 118 - 118
Impairment (charges)/benefits- - - - - - - -
Profit before income tax
(expense)/benefit- - - - - 118 - 118
Income tax (expense)/benefit
and NCI- - - - - (44)- (44)
Net profit- - - - - 74 - 74
Half Year March 2022
Net interest income- - - - - 6 - 6
Non-interest income- - - - 28 197 - 225
Net operating income - - - - 28 203 - 231
Operating expenses- - - - (3)(75)- (78)
Pre-provision profit- - - - 25 128 - 153
Impairment (charges)/benefits- - - - - 7 - 7
Profit before income tax
(expense)/benefit- - - - 25 135 - 160
Income tax (expense)/benefit
and NCI- - - - (7)(41)- (48)
Net profit- - - - 18 94 - 112

43
1 REVIEW OF GROUP

OPERATIONS
2
SEGMENT REPORTING
3
2023 INTERIM

FINANCIAL REPORT
4
OTHER INFORMATION
5 GLOSSARY
WESTPAC GROUP

2023 INTERIM FINANCIAL RESULTS
Segment reporting
2.1.1 Consumer
The Consumer segment provides a range of banking products and services including mortgages, credit cards,
personal loans and deposits to customers in Australia. These products and services are provided through a
portfolio of brands comprising Westpac, St.George, BankSA, Bank of Melbourne and RAMS.
Half YearHalf YearHalf Year% Mov’t
MarchSeptMarchMar 23Mar 23
$m202320222022- Sept 22- Mar 22
Net interest income 4,693 4,608 4,377 2 7
Non-interest income 297 288 324 3 (8)
Net operating income 4,990 4,896 4,701 2 6
Operating expenses(2,301)(2,254)(2,369) 2 (3)
Notable Items- (66)- (100)-
Total operating expenses(2,301)(2,320)(2,369)(1)(3)
Pre-provision profit 2,689 2,576 2,332 4 15
Impairment (charges)/benefits(170)(228) 27 (25)large
Profit before income tax expense 2,519 2,348 2,359 7 7
Income tax expense and NCI(756)(703)(713) 8 6
Net profit 1,763 1,645 1,646 7 7
Notable Items (post tax)- (47)- (100)-
Expense to income ratio (Ex Notable Items) 46.11% 46.04% 50.39% 7 bpslarge
Net interest margin (Ex Notable Items) 2.18% 2.16% 2.09% 2 bps 9 bps
As atAs atAs at% Mov’t
31 March30 Sept31 MarchMar 23Mar 23
$bn202320222022- Sept 22- Mar 22
Customer deposits
At call 175.3 164.1 172.2 7 2
Term 64.3 62.2 50.5 3 27
Non-interest bearing 54.0 54.3 53.5 (1) 1
Total customer deposits 293.6 280.6 276.2 5 6
Loans
Mortgages 472.7 467.6 458.4 1 3
Other 9.0 8.9 9.0 1 -
Provisions(1.9)(1.9)(1.7)- 12
Total loans 479.8 474.6 465.7 1 3
Deposit to loan ratio 61.19% 59.12% 59.30% 207 bps 189 bps
Total assets 492.7 486.9 477.8 1 3
TCE 569.8 564.4 554.0 1 3
Average interest earning assets 432.2 425.1 420.3 2 3
Average allocated capital 25.7 25.2 25.2 2 2
Credit quality
Impairment charges/(benefits) to average loans 0.07% 0.10%(0.01%)(3 bps)large
Mortgage 90+ day delinquencies 0.73% 0.75% 0.88%(2 bps)(15 bps)
Other consumer loans 90+ day delinquencies 1.26% 1.35% 1.48%(9 bps)(22 bps)
Total stressed exposures to TCE 0.76% 0.68% 0.81% 8 bps(5 bps)

44
WESTPAC GROUP 2023 INTERIM FINANCIAL RESULTS
Segment reporting
Financial performance
First Half 2023 – First Half 2022
Net profit grew 7% to $1,763 million.
Pre-provision profit grew 15% to $2,689 million. This was driven by a 6% increase in net operating income,
supported by higher net interest margins, and a 3% decline in operating expenses, reflecting disciplined cost
management.
Net interest
income
up 7%
• Net loans increased by 3% to $479.8 billion. Mortgage growth of 3% was entirely driven
by owner occupied mortgages. The mortgage origination platform was operational for
our bankers and broker network towards the end of the period with 92% of loans settled
on the platform in March 2023. Customer preference continued to shift towards variable
rate mortgages which accounted for 95% of new mortgages during the period, up from
61% in the prior corresponding period. Other consumer lending was flat with a rise in card
balances offset by a decline in other personal lending;
• Deposits grew by 6% to $293.6 billion, reflecting competitive positioning. With higher
interest rates, customers showed increased preference for term deposits and higher
interest bearing savings accounts. Term deposits increased by 27% and comprised 22% of
total deposits, up from 18% in March 2022. At call deposits increased by 2%, accounting for
60% of total deposits. Mortgage offset balances increased 1%; and
• The net interest margin expanded 9 basis points with higher interest rates widening
deposit spreads and returns on both capital balances and hedged deposits. This more than
offset contracting loan spreads which remained under pressure from intense competition
for both new mortgages and the retention of existing customers, and portfolio mix
changes with growth concentrated in lower spread owner occupied lending.
Non-interest
income
down 8%
• Non-interest income declined by 8% to $297 million reflecting:
–The non-recurrence of a $25 million milestone payment received from the distribution
agreement for general insurance in First Half 2022; and
–Lower mortgage discharge settlement fees due to the slowing property market. This
was partly offset by lower remediation payments.
Expenses
down 3%
• Operating expenses reduced by 3% to $2,301 million from:
–The benefit of a simpler organisational structure;
–A smaller branch footprint supported by our branch transformation program which
included the closure of 115 branches and the establishment of 36 new co-located
branches; and
–The completion of risk and regulatory programs.
Impairment
charge of
$170m
• The impairment charge was 7 basis points of average loans, compared to a 1 basis point
impairment benefit in the prior corresponding period. The charge reflected the increase in
CAP due to some deterioration in early cycle delinquencies in the mortgage and consumer
finance portfolios. In contrast, the impairment benefit in prior corresponding period was
due to significant improvement in 90+ day delinquencies following a reduction in the
hardship portfolio as customers completed their serviceability period while others exited
COVID-19 support.
• Credit quality metrics improved with stressed exposures to TCE down 5 basis points.
Mortgage 90+ day delinquencies were down 15 basis points to 0.73%, reflecting the
reduction in the hardship portfolio as customers completed their serviceability period.

45
1 REVIEW OF GROUP

OPERATIONS
2
SEGMENT REPORTING
3
2023 INTERIM

FINANCIAL REPORT
4
OTHER INFORMATION
5 GLOSSARY
WESTPAC GROUP

2023 INTERIM FINANCIAL RESULTS
Segment reporting
First Half 2023 – Second Half 2022
Net profit grew 7% to $1,763 million.
Pre-provision profit increased 4% to $2,689 million. Excluding Notable Items, all of which were in the prior period,
pre-provision profit increased by 2%. This was driven by a 2% increase in net operating income from higher net
interest margins, partly offset by a 2% increase in operating expenses.
Net interest
income
up 2%
• Net loans increased by 1% to $479.8 billion, entirely driven by mortgage growth in owner
occupied lending. This reflected mortgage system growth of 0.5 times for the period. The
slower mortgage growth relative to prior periods was attributable to a combination of
slowing system credit growth with new lending declining $7 billion, given uncertainty in
the housing market following a cumulative rise in the cash rate of 3.5% since May 2022,
and decisions taken to manage the impacts of intense competition. Customers’ preference
for variable rate mortgages remained elevated, comprising 95% of new mortgage flow,
up from 89% in the prior period. This has taken the proportion of variable rate mortgages
within the portfolio to 67%, up from 63% in the prior period. Despite the rise, the overall
proportion of variable rate mortgages is yet to return to pre 2020 levels. Personal loans
and consumer credit cards increased 1%;
• Deposits increased by 5% to $293.6 billion, supported by competitive positioning.
Growth in higher interest bearing at call savings and term deposits offset the decline in
transaction account balances and reflected changing customer preferences in a rising rate
environment; and
• The net interest margin was up 2 basis points with higher interest rates supporting
wider deposit spreads and returns on both capital balances and hedged deposits. These
improvements were partly offset by lower mortgage spreads reflecting competitive
pressures for both retaining existing customers and attracting new customers.
Non-interest
income
up 3%
• Non-interest income increased by 3% to $297 million. Lower remediation payments more
than offset a reduction in mortgage discharge settlement fees due to a slowing property
market.
Expenses
down 1%
• Operating expenses declined by 1% to $2,301 million. Excluding Notable Items, all of which
occurred in the prior half, expenses increased by 2% driven by branch transformation costs
and higher staff expenses reflecting salary increases and additional FTE to enhance service
levels; and
• The increase in expenses excluding Notable Items was partly mitigated by cost savings
achieved from the branch transformation program and our simplified organisation
structure. This included expanding co-located branches to 46 while closing 66 branches.
Impairment
charge of
$170m
• The impairment charge was 7 basis points of average loans compared to 10 basis points in
the prior period. The charge was driven by CAP reflecting some deterioration in early cycle
mortgage and consumer finance portfolio delinquencies, notwithstanding an improvement
in 90+ day delinquencies. The higher charge in the prior period was due to an update to
modelled economic scenarios for the mortgage portfolio.
• The increase in stressed exposures to TCE of 8 basis points to 0.76% was due to a
regulatory change requiring an extension to the period over which exposures remain
classified as non-performing before potential reclassification to performing, which we have
not restated prior periods for.
• Mortgage 90+ day delinquencies improved by 2 basis points to 0.73% due to a reduction in
the hardship portfolio as customers completed their serviceability period. Other consumer
90+ day delinquencies improved 9 basis points with the personal loan portfolio generating
most of the improvement.

46
WESTPAC GROUP 2023 INTERIM FINANCIAL RESULTS
Segment reporting
2.1.2 Business
The Business segment provides a range of banking services and products to Australian small and commercial
businesses, generally up to $200 million in exposure. This includes specialist services such as cash flow finance,
equipment finance and property finance. Business operates under the Westpac, St.George, and Bank of
Melbourne brands.
Half YearHalf YearHalf Year% Mov’t
MarchSeptMarchMar 23Mar 23
$m202320222022- Sept 22- Mar 22
Net interest income 2,043 1,704 1,323 20 54
Non-interest income 165 167 165 (1)-
Net operating income 2,208 1,871 1,488 18 48
Operating expenses(914)(915)(984)- (7)
Total operating expenses(914)(915)(984)- (7)
Pre-provision profit 1,294 956 504 35 157
Impairment (charges)/benefits(78) 15 (158)large(51)
Profit before income tax expense 1,216 971 346 25 large
Income tax expense and NCI(365)(292)(107) 25 large
Net profit 851 679 239 25 large
Expense to income ratio (Ex Notable Items) 41.39% 48.90% 66.13%largelarge
Net interest margin (Ex Notable Items) 4.78% 4.07% 3.33% 71 bps 145 bps
As atAs atAs at% Mov’t
31 March30 Sept31 MarchMar 23Mar 23
$bn202320222022- Sept 22- Mar 22
Customer deposits
At call 95.1 104.2 109.5 (9)(13)
Term 38.2 29.0 25.1 32 52
Non-interest bearing 0.1 0.1 0.1 - -
Total customer deposits 133.4 133.3 134.7 - (1)
Loans
Business 8 7.0 86.3 82.4 1 6
Provisions(1.4)(1.4)(1.5)- (7)
Total loans 85.6 84.9 80.9 1 6
Deposit to loan ratio 155.95% 157.06% 166.42%(111 bps)large
Total assets 87.8 8 7.1 83.2 1 6
TCE 113.1 111.1 106.6 2 6
Average interest earning assets 85.8 83.5 79.6 3 8
Average allocated capital 8.4 8.2 7.9 2 6
Credit quality
Impairment charges/(benefits) to average loans 0.18%(0.04%) 0.40%large(22 bps)
Business: impaired exposures to TCE 0.49% 0.52% 0.60%(3 bps)(11 bps)
Total stressed exposures to TCE 4.85% 5.05% 5.07%(20 bps)(22 bps)

47
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OPERATIONS
2
SEGMENT REPORTING
3
2023 INTERIM

FINANCIAL REPORT
4
OTHER INFORMATION
5 GLOSSARY
WESTPAC GROUP

2023 INTERIM FINANCIAL RESULTS
Segment reporting
Financial performance
First Half 2023 – First Half 2022
Net profit grew to $851 million.
Pre-provision profit grew 157% to $1,294 million. The increase was driven by a 48% growth in net operating income
to $2,208 million as higher interest rates supported deposit spreads, and a 7% reduction in operating expenses to
$914 million following the completion of several regulatory and compliance programs.
Net interest
income
up 54%
• Net loans increased by 6% to $85.6 billion with most of the growth in commercial property
and agriculture lending;
• Deposits decreased by 1% to $133.4 billion reflecting the initial impacts felt by business
from higher interest rates and inflation. There was a shift to term deposits which now
comprise 29% of total customer deposits, up from 19% in the prior corresponding period.
Conversely, there were declines in both savings accounts and low rate transaction
accounts; and
• The net interest margin was up 145 basis points supported by the larger deposit portfolio
relative to lending, reflected in a deposit to loan ratio of 156%. Rising interest rates
supported higher deposit spreads and returns on both capital and hedged deposits. This
was partly offset by loan spreads continuing to narrow due to ongoing competition.
Non-interest
income flat
• Non-interest income was flat at $165 million. Lower remediation charges were offset by
lower merchant income from higher interchange fees paid to card scheme providers.
Expenses
down 7%
• A 7% reduction in operating expenses to $914 million was achieved from:
– The completion of several regulatory and compliance programs, reducing overall
regulatory spend, particularly the reliance on third parties; and
–Benefits of a simpler organisational structure, particularly head office functions and the
reduction of corporate office space.
• Staff costs remained flat as we reinvested savings to improve service levels. Continued
wage growth also impacted staff costs.
Impairment
charge of $78m
• The impairment charge was 18 basis points of average loans compared to 40 basis points
in the prior corresponding period. The charge reflected higher CAP due to deteriorating
forward-looking economic forecasts to the prior period in particular the commercial
property outlook, partly offset by the release of a portion of the construction overlay. The
impairment charge was higher in the prior corresponding period primarily due to increased
overlays for the construction sector to address inflationary pressures in light of supply
chain and labour difficulties, along with the increase in the downside scenario weighting in
First Half 2022.
• Credit quality metrics improved with stressed exposures to TCE down 22 basis points to
4.85%, mostly reflecting a reduction in impaired and substandard exposures mostly within
accommodation, cafes and restaurants and property services.

48
WESTPAC GROUP 2023 INTERIM FINANCIAL RESULTS
Segment reporting
First Half 2023 – Second Half 2022
Net profit grew 25% to $851 million.
Pre-provision profit grew 35% to $1,294 million. The 18% increase in net operating income to $2,208 million
reflected wider deposit margins, supported by higher interest rates, while operating expenses were stable at
$914 million, highlighting disciplined cost management in an inflationary environment.
Net interest
income
up 20%
• Net loans increased by 1% with growth in the commercial property sector;
• Deposits were flat with a significant mix shift from savings and low-rate transaction
accounts towards higher rate term deposits. Term deposits accounted for 29% of total
customer deposits compared to 22% in the prior period; and
• The net interest margin increased by 71 basis points driven by higher deposit spreads
and returns on capital and hedged deposits as interest rates increased. Ongoing lending
competition resulted in continued loan spread compression. The large rise in the net
interest margin was supported by the larger deposit portfolio relative to lending.
Non-interest
income
down 1%
• The 1% decline in non-interest income to $165 million reflects:
– Lower merchant income due to higher interchange fees; and
– Higher scheme incentives from increased spend absorbed some of the decline in
merchant income.
Expenses flat
• Operating expenses were flat at $914 million. Movements included:
–Lower staff expenses from a simplified organisational structure as head office functions
were simplified; and
–Increased investment spend across regulatory and operational risk management
programs, and capabilities to improve service levels.
Impairment
charge of $78m
• The impairment charge was 18 basis points of average loans compared to a 4 basis point
benefit in the prior period. The charge reflected higher CAP due to the deteriorating
forward-looking economic forecasts partly offset by the release of a portion of the overlay.
• Credit quality metrics improved with stressed exposures to TCE down 20 basis points to
4.85%, reflecting a reduction in stressed exposures within the accommodation, cafes and
restaurants, and services sectors.

49
1 REVIEW OF GROUP

OPERATIONS
2
SEGMENT REPORTING
3
2023 INTERIM

FINANCIAL REPORT
4
OTHER INFORMATION
5 GLOSSARY
WESTPAC GROUP

2023 INTERIM FINANCIAL RESULTS
Segment reporting
2.2 Westpac Institutional Bank (WIB)
WIB delivers a broad range of financial products and services to corporate, institutional and government
customers. WIB operates through dedicated industry relationship and specialist product teams, with expert
knowledge including in 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
operating divisions in the provision of markets related financial needs including foreign exchange and fixed
interest solutions.
Half YearHalf YearHalf Year% Mov’t
MarchSeptMarchMar 23Mar 23
$m202320222022- Sept 22- Mar 22
Net interest income 712 629 481 13 48
Non-interest income 704 554 592 27 19
Net operating income 1,416 1,183 1,073 20 32
Operating expenses(617)(607)(581) 2 6
Total operating expenses(617)(607)(581) 2 6
Pre-provision profit 799 576 492 39 62
Impairment (charges)/benefits 4 (27)(58)largelarge
Profit before income tax expense 803 549 434 46 85
Income tax expense and NCI(229)(168)(128) 36 79
Net profit 574 381 306 51 88
Expense to income ratio (Ex Notable Items) 43.57% 51.31% 54.15%largelarge
Net interest margin (Ex Notable Items) 1.46% 1.34% 1.17% 12 bps 29 bps
As atAs atAs at% Mov’t
31 March30 Sept31 MarchMar 23Mar 23
$bn202320222022- Sept 22- Mar 22
Customer deposits
At call 72.5 75.7 71.9 (4) 1
Term 39.3 40.1 31.7 (2) 24
Non-interest bearing 0.9 0.8 1.1 13 (18)
Total customer deposits 112.7 116.6 104.7 (3) 8
Loans
Loans 85.0 85.5 74.3 (1) 14
Provisions(0.3)(0.3)(0.3)- -
Total loans 84.7 85.2 74.0 (1) 14
Deposit to loan ratio 133.02% 136.83% 141.53%(381 bps)large
Total assets 99.9 106.1 94.0 (6) 6
TCE 205.6 199.3 190.8 3 8
Average interest earning assets 98.0 93.7 82.6 5 19
Average allocated capital 8.3 7.9 7.7 5 8
Credit quality
Impairment charges to average loans(0.01%) 0.07% 0.16%largelarge
Impaired exposures to TCE 0.06% 0.10% 0.14%(4 bps)(8 bps)
Total stressed exposures to TCE 0.28% 0.35% 0.20%(7 bps) 8 bps

50
WESTPAC GROUP 2023 INTERIM FINANCIAL RESULTS
Segment reporting
Revenue contribution
1
Half YearHalf YearHalf Year% Mov’t
MarchSeptMarchMar 23Mar 23
$m202320222022- Sept 22- Mar 22
Lending and deposit revenue 970 913 799 6 21
Sales and risk management income 435 348 348 25 25
DVA 52 (20)(11)largelarge
Other
2
(41)(58)(63)(29)(35)
Total WIB revenue 1,416 1,183 1,073 20 32
Financial performance
First Half 2023 – First Half 2022
Net profit grew 88% to $574 million.
Pre-provision profit increased by 62% to $799 million reflecting average interest earning asset growth, higher net
interest margins and increased customer activity contributing to a better Markets performance. This resulted in a
rise in net operating income of 32% to $1,416 million. Operating expenses grew 6% reflecting investments in our
payments platform and customer service levels.
Net interest
income
up 48%
• Net loans increased by 14% to $84.7 billion. Growth was from deepening relationships with
existing customers and higher utilisation of credit facilities. There was also a benefit from
increased corporate activity during 2022, including mergers and acquisitions. Loan growth
was achieved across all sectors;
• Deposits increased by 8% to $112.7 billion, predominantly in corporate higher yielding term
deposits; and
• The net interest margin was up 29 basis points reflecting improved deposit spreads,
returns on capital and higher Markets income. Loan spreads remained under competitive
pressure.
Non-interest
income
up 19%
• Non-interest income increased by 19% to $704 million supported by a $57 million
positive impact from DVA reflecting tighter counterparty credit spreads earlier in the half.
Excluding this benefit, non-interest income increased by 7% due to:
– Improved Markets income from credit products which benefitted from tighter spreads
and higher volumes due to more favourable market conditions, and higher customer
volumes in FX; and
– Increased origination and syndication fees reflecting elevated activity.
• Following the increase in utilisation of lending facilities, lending fees declined although this
fall was offset by higher net interest income.
Expenses
up 6%
• Operating expenses increased 6% to $617 million reflecting:
–Higher software amortisation costs;
–Increased investment spend due to an increase in capability uplift investments such
as the Corporate Cash Management Platform was partly offset by a reduction of Fix
related investments; and
–Higher employee expenses from maintaining customer service levels and continued
wage pressure.
Impairment
benefit of $4m
• The impairment benefit was 1 basis point of average loans compared to an impairment
charge of 16 basis points in the prior corresponding period. The impairment benefit was
due to higher write-backs and recoveries which more than offset the increase in CAP and
new IAPs. The impairment charge was higher in the prior corresponding period primarily
due to increased portfolio overlays and an increase to the downside scenario weight.
• Stressed exposures to TCE increased by 8 basis points to 0.28% mostly driven by higher
watchlist and substandard exposures, while impaired exposures declined due write-backs.
1. In First Half 2023, the presentation of markets related income has been revised:
a. DVA has been revised to include Funding Value Adjustment (FVA) and Credit Value Adjustment (CVA). Previously DVA included
only CVA.
b. Sales and risk management income includes both customer and non-customer income.
Comparatives have been restated.
2. Includes capital benefit and the Bank Levy.

51
1 REVIEW OF GROUP

OPERATIONS
2
SEGMENT REPORTING
3
2023 INTERIM

FINANCIAL REPORT
4
OTHER INFORMATION
5 GLOSSARY
WESTPAC GROUP

2023 INTERIM FINANCIAL RESULTS
Segment reporting
First Half 2023 – Second Half 2022
Net profit grew 51% to $574 million.
Pre-provision profit grew by 39% to $799 million. Net operating income increased by 20% to $1,416 million,
supported by an improved Markets performance and higher interest rates. Operating expenses increased by 2%
reflecting inflationary and wage pressure and ongoing investments.
Net interest
income
up 13%
• Net loans decreased by 1% although average interest earning assets were up by 5%
reflecting increased corporate activity in the prior half. The small decline in net loans was
due to a reduction in the utilisation of credit facilities and refinancing activity, partly offset
by new loan growth;
• Deposits decreased by 3% as customers chose to pay down debt in response to higher
interest rates; and
• The net interest margin widened by 12 basis points from a lift in Markets income, returns on
capital and improved lending mix.
Non-interest
income
up 27%
• Non-interest income was boosted by a $57 million benefit from derivative valuation
adjustments reflecting tighter counterparty credit spreads. Excluding this benefit, non-
interest income increased by 13% due to:
– Improved Markets income, predominantly from tighter credit spreads reflecting more
favourable conditions for most of the half and higher volumes; and
– Increased origination and syndication activity from supportive market conditions.
Expenses
up 2%
• Operating expenses increased by 2% to $617 million. Movements included:
–Higher software amortisation costs;
–Increased investment spend due to an increase in capability uplift investments partly
offset by a reduction of risk and regulatory related investments; and
–Higher employee expenses from wage pressure and an increase in FTE to maintain
customer service levels.
• Benefits from cost reset activities such as simplification and operating model changes
partly offset the increases.
Impairment
benefit of $4m
• The impairment benefit was 1 basis point of average loans compared to an impairment
charge of 7 basis points in the prior period. The benefit was driven by higher write-backs
and recoveries which fully offset the increase in CAP and new IAPs; and
• Stressed exposures to TCE decreased by 7 basis points to 0.28%, mainly due to a
reduction in impaired exposures within manufacturing and watchlist exposures within the
services sector.

52
WESTPAC GROUP 2023 INTERIM FINANCIAL RESULTS
Segment reporting
2.3 Westpac New Zealand
Westpac New Zealand provides banking and wealth products and services for consumer, business and institutional
customers in New Zealand. New Zealand maintains its own infrastructure, including technology, operations and
treasury.
All figures are in NZ$ unless noted otherwise.
Half YearHalf YearHalf Year% Mov’t
MarchSeptMarchMar 23Mar 23
NZ$m202320222022- Sept 22- Mar 22
Net interest income 1,246 1,185 1,095 5 14
Non-interest income 126 145 161 (13)(22)
Notable Items- (13) 140 (100)(100)
Net operating income 1,372 1,317 1,396 4 (2)
Operating expenses(624)(594)(564) 5 11
Total operating expenses(624)(594)(564) 5 11
Pre-provision profit 748 723 832 3 (10)
Impairment (charges)/benefits(154) 17 10 largelarge
Profit before income tax expense 594 740 842 (20)(29)
Income tax expense and NCI(168)(212)(202)(21)(17)
Net profit 426 528 640 (19)(33)
Notable Items (post tax)- (9) 136(100)(100)
Profit/(loss) attributable to businesses sold- - 19 - (100)
Expense to income ratio (Ex Notable Items) 45.48% 44.66% 44.90% 82 bps 58 bps
Net interest margin (Ex Notable Items) 2.10% 2.04% 1.96% 6 bps 14 bps
As atAs atAs at% Mov’t
31 March30 Sept31 MarchMar 23Mar 23
NZ$bn202320222022- Sept 22- Mar 22
Customer deposits
At call 30.3 31.2 32.5 (3)(7)
Term 36.4 32.3 30.1 13 21
Non-interest bearing 13.1 14.4 15.8 (9)(17)
Total customer deposits 79.8 77.9 78.4 2 2
Loans
Mortgages 65.2 63.8 62.2 2 5
Business 32.3 32.2 31.0 - 4
Other 1.2 1.2 1.2 - -
Provisions(0.5)(0.4)(0.4) 25 25
Total loans 98.2 96.8 94.0 1 4
Deposit to loan ratio 81.26% 80.48% 83.40% 78 bps(214 bps)
Total assets 122.0 118.9 116.5 3 5
TCE 147.3 144.6 141.8 2 4
Liquid assets 20.5 18.4 19.3 11 6
Average interest earning assets 118.8 115.8 111.8 3 6
Average allocated capital 7.5 7.4 7.0 1 7
Total funds 11.5 10.9 11.7 6 (2)
Credit quality
Impairment charges/(benefits) to average loans 0.32%(0.04%)(0.02%)largelarge
Mortgage 90+ day delinquencies 0.29% 0.22% 0.30% 7 bps(1 bps)
Other consumer loans 90+ day delinquencies 1.13% 1.03% 1.42% 10 bps(29 bps)
Impaired exposures to TCE 0.07% 0.06% 0.06% 1 bps 1 bps
Total stressed exposures to TCE 1.33% 0.97% 1.14% 36 bps 19 bps

53
1 REVIEW OF GROUP

OPERATIONS
2
SEGMENT REPORTING
3
2023 INTERIM

FINANCIAL REPORT
4
OTHER INFORMATION
5 GLOSSARY
WESTPAC GROUP

2023 INTERIM FINANCIAL RESULTS
Segment reporting
Financial performance (NZ$)
First Half 2023 – First Half 2022
Net profit decreased 33% to $426 million.
Pre-provision profit decreased by 10% to $748 million. Notable Items impacted pre-provision profit in the First Half
2022 which included the gain on the sale of NZ life insurance. Excluding Notable Items, pre-provision profit grew
by 8% with higher margins and balance sheet growth driving a 14% increase in net interest income. This offset an
11% increase in operating expenses due to higher risk and regulatory spend.
Net interest
income
up 14%
• Net loans increased by 4% to $98.2 billion. Mortgage growth of 5% to $65 billion was 1.4x
system. Growth was primarily driven in fixed rate owner occupied mortgages, reflecting
New Zealand’s mortgage market being largely fixed rate. Business loans increased by 4%
to $32 billion with growth largely in the utilities and wholesale trade sectors;
• Deposits grew by 2% to $79.8 billion. Growth was driven from an increase in term
deposits as customer preferences shifted towards higher rate accounts as interest rates
increased. As a result, savings and transaction accounts both declined. Term deposits
now account for 46% of customer deposits, up from 38% in the prior corresponding
period, but down on pre COVID-19 levels of ~50%; and
• The net interest margin was up 14 basis points with rising interest rates improving
deposit spreads and returns on capital balances. Loan spreads continued to decline due
to a competitive mortgage market.
Non-interest
income
down 22%
• The 22% reduction in non-interest income to $126 million was due to:
–The loss of income following the divestment of NZ life insurance; and
–Lower card income of $7 million from a reduction in interchange fees reflecting
regulatory changes which came into effect in November 2022, impacting nearly
5 months of the period.
Expenses up 11%
• Operating expenses increased by 11% to $624 million reflecting:
–Higher investments in risk and regulatory projects, including RBNZ’s BS11 outsourcing
policy; and
–A 12% increase in FTE to support these projects and the continued strengthening of
our technology foundations along with inflationary pressures.
Impairment
charge of $154m
• The impairment charge was 32 basis points of average loans compared to a 2 basis point
benefit in the prior corresponding period. The charge reflected higher CAP attributable
to a weather related portfolio overlay of $66 million, along with a deterioration in the
economic outlook and early cycle consumer delinquencies.
• Stress exposures to TCE increased 19 basis points due to downgrade of a small number
of exposures to stressed.

54
WESTPAC GROUP 2023 INTERIM FINANCIAL RESULTS
Segment reporting
First Half 2023 – Second Half 2022
Net profit declined by 19% to $426 million.
Pre-provision profit increased by 3% to $748 million. Excluding Notable Items, pre-provision profit was up by 2%.
Net operating income rose by 4% to $1,372 million which more than offset the 5% growth in operating expenses to
$624 million.
Net interest
income
up 5%
• Net loans grew by 1%. Mortgage growth of 2% was 1.3x of system and primarily in fixed
rate owner occupied loans. Business loans were flat;
• Deposits increased by 2% fully funding new loan growth. The growth was well above
system which was relatively flat. The shift in customer preference towards higher rate
products saw term deposits grow by 13% while at call deposits contracted in the period.
Term deposits accounted for 46% of customer deposits, up from 41% in the prior period;
and
• The net interest margin improved by 6 basis points. The increase was driven by higher
deposit spreads and larger returns on capital. Loan spreads continued to remain under
pressure from mortgage competition.
Non-interest
income
down 13%
• The 13% reduction in non-interest income to $126 million predominantly reflects declining
card income due to lower interchange fees following new credit card regulation effective
November 2022.
Expenses
up 5%
• Operating expenses increased by 5% to $624 million reflecting investments in risk and
regulatory projects including RBNZ’s BS11 outsourcing policy and a 6% increase in FTE to
support technology enhancements and other projects.
Impairment
charge of $154m
• The impairment charge was 32 basis points of average loans compared to 4 basis
points benefit in the prior period. The charge was driven by higher CAP attributable
to a weather related portfolio overlay of $66 million, along with a deterioration in the
economic outlook and an increase in consumer delinquencies.
• Stress exposures to TCE increased by 36 basis points to 1.33% due to downgrades to
watchlist exposures along with a rise in consumer 90+ day delinquencies reflecting the
impact of higher inflation and interest rates on customers.

55
1 REVIEW OF GROUP

OPERATIONS
2
SEGMENT REPORTING
3
2023 INTERIM

FINANCIAL REPORT
4
OTHER INFORMATION
5 GLOSSARY
WESTPAC GROUP

2023 INTERIM FINANCIAL RESULTS
Segment reporting
2.3.1 Westpac New Zealand segment performance (A$ Equivalent)
Results have been translated into Australian dollars (A$) at the average exchange rates for each reporting
period, First Half 2023: $1.0876 (Second Half 2022: $1.1067; First Half 2022: $1.0593). Unless otherwise stated,
assets and liabilities have been translated at spot rates as at the end of the period, 31 March 2023: $1.0678
(30 September 2022: $1.1354; 31 March 2022: $1.0759).
Half YearHalf YearHalf Year% Mov’t
MarchSeptMarchMar 23Mar 23
$m202320222022- Sept 22- Mar 22
Net interest income 1,145 1,073 1,034 7 11
Non-interest income 116 128 151 (9)(23)
Notable Items- (12) 132 (100)(100)
Net operating income 1,261 1,189 1,317 6 (4)
Operating expenses(574)(538)(534) 7 7
Total operating expenses(574)(538)(534) 7 7
Pre-provision profit 687 651 783 6 (12)
Impairment (charges)/benefits(142) 16 9 largelarge
Profit before income tax expense 545 667 792 (18)(31)
Income tax expense and NCI(154)(192)(190)(20)(19)
Net profit 391 475 602 (18)(35)
Notable Items (post tax)- (10) 129 (100)(100)
Profit/(loss) attributable to businesses sold- - 18 - (100)
Expense to income ratio (Ex Notable Items)
1
45.48% 44.66% 44.90% 82 bps 58 bps
Net interest margin (Ex Notable Items)
1
2.10% 2.04% 1.96% 6 bps 14 bps
As atAs atAs at% Mov’t
MarchSeptMarchMar 23Mar 23
$bn202320222022- Sept 22- Mar 22
Customer deposits 74.7 68.6 72.8 9 3
Loans 91.9 85.3 87.4 8 5
Deposit to loan ratio
1
81.26% 80.48% 83.40% 78 bps(214 bps)
Total assets 114.2 104.7 108.2 9 6
TCE 137.9 127.3 131.8 8 5
Liquid assets 19.2 16.2 18.0 19 7
Average interest earning assets
2
109.3 104.6 105.6 4 4
Average allocated capital
2
6.9 6.6 6.6 5 5
Total funds 10.7 9.6 10.9 11 (2)
1. Ratios calculated using NZ$.
2. Averages are converted at applicable average rates.

56
WESTPAC GROUP 2023 INTERIM FINANCIAL RESULTS
Segment reporting
2.4 Specialist Businesses
Specialist Businesses was established in May 2020 by combining the operations that Westpac identified to be
exited as part of its portfolio simplification agenda. Since its formation, nine business divestments, including
two in 2023, have been completed. The merger of BT’s personal and corporate superannuation funds with
Mercer Super Trust through an SFT and the sale of its AAML business to Mercer (Australia) were completed. The
remaining operations include BT Platforms, Westpac Pacific, margin lending and the retail auto finance business
(which is in run-off).
Half YearHalf YearHalf Year% Mov’t
MarchSeptMarchMar 23Mar 23
$m202320222022- Sept 22- Mar 22
Net interest income 216 232 242 (7)(11)
Non-interest income 393 418 442 (6)(11)
Notable Items 243 (1,120) 109 large 123
Net operating income 852 (470) 793 large 7
Operating expenses(280)(313)(370)(11)(24)
Notable Items- (150)(215)(100)(100)
Total operating expenses(280)(463)(585)(40)(52)
Pre-provision profit 572 (933) 208 large 175
Impairment (charges)/benefits(2) 29 38 largelarge
Profit before income tax expense 570 (904) 246 large 132
Income tax expense and NCI(77) 49 (114)large(32)
Net profit/(loss) 493 (855) 132 largelarge
Notable Items (post tax) 256 (1,112)(114)largelarge
Profit/(loss) attributable to businesses sold 111 74 94 50 18
Expense to income ratio (Ex Notable Items) 45.98% 48.15% 54.09%(217 bps)large
Net interest margin (Ex Notable Items) 4.07% 3.70% 3.45% 37 bps 62 bps
As atAs atAs at% Mov’t
31 March30 Sept31 MarchMar 23Mar 23
$bn202320222022- Sept 22- Mar 22
Deposits 10.0 9.5 8.4 5 19
Loans
Loans 8.4 10.2 12.0 (18)(30)
Provisions(0.3)(0.3)(0.3)- -
Total loans 8.1 9.9 11.7 (18)(31)
Deposit to loan ratio 124.24% 95.85% 71.29%largelarge
Total funds 166.2 198.8 222.9 (16)(25)
TCE 12.2 13.8 15.4 (12)(21)
Average interest earning assets 10.7 12.5 14.1 (14)(24)
Average allocated capital 1.8 3.2 4.1 (44)(56)
Average funds 199.3 209.5 224.9 (5)(11)
Credit quality
Auto Finance 90 day+ delinquencies 2.85% 2.33% 2.00% 52 bps 85 bps
Total stressed exposures to TCE 9.20% 9.08% 6.98% 12 bps 222 bps
Net profit/(loss)
Half YearHalf YearHalf Year% Mov’t
MarchSeptMarchMar 23Mar 23
$m202320222022- Sept 22- Mar 22
Businesses sold
1,2
111 74 94 50 18
Remaining businesses
1
126 183 152 (31)(17)
Notable Items 256 (1,112)(114)largelarge
Net profit/(loss) 493 (855) 132 largelarge
1. Excludes Notable Items.
2. First Half 2023 includes a completion adjustment of $18 million (post tax) in relation to the sale of WLIS and $37 million (post tax) in
relation to the reimbursement of costs for the SFT.

57
1 REVIEW OF GROUP

OPERATIONS
2
SEGMENT REPORTING
3
2023 INTERIM

FINANCIAL REPORT
4
OTHER INFORMATION
5 GLOSSARY
WESTPAC GROUP

2023 INTERIM FINANCIAL RESULTS
Segment reporting
Financial performance
First Half 2023 – First Half 2022
Net profit of $493 million compared to $132 million in the prior corresponding period.
Pre-provision profit of $572 million was $364 million higher, predominantly due to the positive impact of
Notable Items, including the gain on sale of AAML in this half and asset write downs incurred in the prior
corresponding period.
Excluding Notable Items and the impact of businesses sold, pre-provision profit decreased by 8% to $171 million.
Net operating income decreased by 2% while operating expenses increased by 1%.
Net interest
income
down 11%
• Excluding the impact of businesses sold, net interest income was down 8%.
• Net loans decreased by 31% to $8.1 billion primarily due to the run-off of the retail auto
portfolio. Margin loans were also lower while loans in Westpac Pacific were slightly up.
• Deposits increased by 19% to $10.0 billion due to increased deposits on Platforms. Rising
interest rates resulted in customers shifting their asset allocation on Platforms towards
higher interest earning term deposits; and
• The net interest margin was up 62 basis points mostly from lower funding costs in the
retail auto portfolio and higher Platforms deposit spreads as interest rates increased.
Non-interest
income
down 11%
• Non-interest income declined by 11% to $393 million;
• The reduction in income from businesses sold was $57 million due to:
–Reduced funds under management income in Superannuation and AAML, $20 million;
and
–Lower income from businesses that were exited in the prior corresponding period,
$37 million.
• Excluding businesses sold, non-interest income increased by 3% to $253 million.
Movements included:
–Higher merchant and FX transaction fees in Westpac Pacific from increased tourism;
–Higher contributions from Platforms reflecting higher revenue from duration
managed cash balances partly offset by lower funds under administration; and
–Declining retail auto finance income from the run-off in loan balances.
Expenses
down 24%
• Operating expenses declined by 24% to $280 million. Excluding the impact of businesses
sold, expenses increased by 1% to $298 million predominantly due to spend required to
prepare businesses for sale, partly offset by lower investment spend.
Impairment
charge of $2m
• The impairment charge was 4 basis points of average loans compared to a 59 basis
points benefit in the prior corresponding period. The charge reflected write-off directs in
the auto finance portfolio which more than offset a CAP release.
• There was a rise in stressed exposures over the year, driven by an increase in watchlist
exposures in Westpac Pacific. The rise in stressed exposures to TCE also reflects the
impact of the run off in the auto finance portfolio.

58
WESTPAC GROUP 2023 INTERIM FINANCIAL RESULTS
Segment reporting
First Half 2023 – Second Half 2022
Net profit of $493 million compared to a $855 million loss in the prior period.
Pre-provision profit of $572 million compared to a pre-provision loss of $933 million in the prior period. The
turnaround was driven by the absence of the $1.1 billion loss on sale of Australian life insurance in the prior half
and a gain on sale of AAML in this half.
Excluding Notable Items and the impact of businesses sold, pre-provision profit decreased by 22% to $171 million
reflecting a 13% growth in operating expenses and a 3% decrease in net operating income.
Net interest
income
down 7%
• Net loans declined by 18% reflecting the run-off of the retail auto portfolio;
• Deposits increased by 5% driven by higher deposits on Platforms. Rising interest rates
saw a shift in customer preference towards higher interest rate term deposits which
accounted for 31% of total deposits, up from 22% in the prior period. At call deposits
declined by 6%; and
• The net interest margin was up 37 basis points due to wider deposit spreads in Platforms.
Non-interest
income
down 6%
• Non-interest income declined by 6% to $393 million;
• The reduction in income from businesses sold was $27 million due to:
–Reduced funds under management income in Superannuation and AAML, $7 million;
and
–Lower income from businesses that were exited in the prior period, $20 million.
• Excluding businesses sold, non-interest income increased by 1% to $253 million.
Drivers included:
–Higher merchant income in Westpac Pacific from increased tourism and favourable
FX translation impacts;
–Reduced Platforms income partly offset by higher revenue from duration managed
cash balances and impacts of higher equity markets; and
–Lower income from auto finance due to a decline in fee income as the portfolio is in
run-off.
Expenses
down 11%
• Operating expenses declined by 11% to $280 million. Excluding the impact of businesses
sold, operating expenses increased by 13% to $298 million reflecting spend required to
prepare businesses for sale. Excluding these expenses, ongoing businesses were broadly
flat.
Impairment
charge of $2m
• The small impairment charge was 4 basis points of average loans compared to 52 basis
points benefit in the prior period. The charge reflected write-off directs in the auto
finance portfolio which more than offset a CAP release.
• Stressed exposures to TCE deteriorated by 12 basis points to 9.20%, mainly reflecting a
reduction in the auto finance portfolio.

59
1 REVIEW OF GROUP

OPERATIONS
2
SEGMENT REPORTING
3
2023 INTERIM

FINANCIAL REPORT
4
OTHER INFORMATION
5 GLOSSARY
WESTPAC GROUP

2023 INTERIM FINANCIAL RESULTS
Segment reporting
Superannuation, Platforms and Investments
As atAs at% Mov’tAs at% Mov’t
31 MarchNetNet30 SeptMar 2331 MarchMar 23
$bn2023InflowsOutflowsFlowsMov’t2022- Sept 222022- Mar 22
Superannuation 33.4 1.5 (3.9)(2.4)(1.2) 37.0 (10) 41.8 (20)
Platforms 131.0 7.2 (9.7)(2.5) 12.1 121.4 8 135.2 (3)
Packaged funds 1.8 2.2 (5.0)(2.8)(35.8) 40.4 (96) 45.9 (96)
Total funds 166.2 10.9 (18.6)(7.7)(24.9) 198.8 (16) 222.9 (25)
Packaged funds decreased by $38.6 billion compared to the prior period, primarily driven by $38.5 billion related
to the sale of AAML.
On 31 March 2023, the Group entered into an agreement relating to the transition of its private portfolio
management business (with funds under management of $1.9 billion as at 31 March 2023). This is expected to
complete in calendar year 2023.
On 1 April 2023, the transfer of the members and benefits of BT Funds Management Limited’s personal and
corporate (non-platform) superannuation of $33.4 billion to Mercer Super Trust was completed.

60
WESTPAC GROUP 2023 INTERIM FINANCIAL RESULTS
Segment reporting
2.5 Group Businesses
This segment comprises:
• Treasury, which is responsible for the management of the Group’s balance sheet including wholesale funding,
capital, and 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 Australian balance sheet and interest rate risk;
• Customer Services & Technology, which includes operations, call centres and technology. These costs are
allocated to segments across the Group;
• Corporate Services
1
, which provides shared corporate functions such as property, procurement, finance
services, corporate affairs, sustainability, and HR services. These costs are allocated to other segments across
the Group; and
• Enterprise services, which includes earnings on capital not allocated to segments, certain intra-group
transactions and gains/losses from asset sales, earnings and costs associated with the Group’s fintech
investments, costs associated with customer remediation for the Advice business and other corporate
expenses including centrally held provisions.
Half YearHalf YearHalf Year% Mov’t
MarchSeptMarchMar 23Mar 23
$m202320222022- Sept 22- Mar 22
Net interest income 393 339 564 16 (30)
Non-interest income(6) 34 36 largelarge
Notable Items(111) 334 258 largelarge
Net operating income 276 707 858 (61)(68)
Operating expenses(302)(412)(304)(27)(1)
Notable Items- (174)(16)(100)(100)
Total operating expenses(302)(586)(320)(48)(6)
Pre-provision profit(26) 121 538 largelarge
Impairment (charges)/benefits(2)(1) 3 100 large
Profit before income tax expense(28) 120 541 largelarge
Income tax expense and NCI(43)(31)(186) 39 (77)
Net profit/(loss)(71) 89 355 largelarge
Notable Items (post tax)(78) 116 164 largelarge
Treasury
Half YearHalf YearHalf Year% Mov’t
MarchSeptMarchMar 23Mar 23
$m202320222022- Sept 22- Mar 22
Net interest income 220 335 554 (34)(60)
Non-interest income 6 9 12 (33)(50)
Notable Items(89) 299 254 largelarge
Net operating income 137 643 820 (79)(83)
Net profit 66 422 547 (84)(88)
Treasury Value at Risk (VaR)
2
$mAverageHighLow
Half Year March 2023 60.8 73.0 50.6
Half Year Sept 2022 65.4 74.4 58.3
Half Year March 2022 64.4 72.8 54.6
1. Corporate Services costs are partly allocated to other segments, while Group head office costs are retained in Group Businesses.
2. VaR includes trading book and banking book exposures. The banking book component includes interest rate risk, credit spread risk in
liquid assets and other basis risks.

61
1 REVIEW OF GROUP

OPERATIONS
2
SEGMENT REPORTING
3
2023 INTERIM

FINANCIAL REPORT
4
OTHER INFORMATION
5 GLOSSARY
WESTPAC GROUP

2023 INTERIM FINANCIAL RESULTS
Segment reporting
Financial performance
First Half 2023 - First Half 2022
Net loss of $71 million compared to $355 million profit in the prior corresponding period.
Pre-provision loss of $26 million, compared with $538 million pre-provision profit in the prior corresponding
period. Excluding Notable Items, pre-provision profit was $85 million compared with $296 million profit in the
prior corresponding period.
Net operating
income down 36%
Excluding Notable Items, income was down 36% or $213 million, driven by:
• Market volatility impacting Treasury earnings;
• Higher gains on sale of liquid assets in the prior corresponding period; and
• Higher returns on capital balances partly offset the decline.
Operating expenses
down 1%
Excluding Notable Items, expenses were down 1% or $2 million. Movements, primarily
included:
• Lower consulting and third party costs, as several strategic projects completed; and
• Largely offset by higher employee benefits remediation costs.
First Half 2023 - Second Half 2022
Net loss of $71 million compared to $89 million profit in the prior period.
There was a pre-provision loss of $26 million, compared with $121 million pre-provision profit for the prior half.
Excluding Notable Items, pre-provision profit was $85 million compared with $39 million loss in the prior period.
Net operating
income up 4%%
Excluding Notable Items, income was up 4% or $14 million. Movements included:
• Higher interest rates increasing returns on capital balances.
• Lower Treasury earnings from market volatility partly offset this benefit.
Operating expenses
down 27%
Excluding Notable Items, expenses were down 27% or $110 million, driven by:
• A reduction in costs for the Banking as a Service (BaaS) platform following the partial
impairment in the prior period; and
• Lower consulting and third party spend driven by completion of activities within the
CORE program.

62
WESTPAC GROUP 2023 INTERIM FINANCIAL RESULTS
Table of contents
3.02023 Interim financial report
3.1Directors’ report63
3.2Consolidated income statement82
3.3Consolidated statement of comprehensive income83
3.4Consolidated balance sheet84
3.5Consolidated statement of changes in equity85
3.6Consolidated cash flow statement86
3.7Notes to the consolidated financial statements87
Note 1Financial statements preparation87
Note 2Segment reporting88
Note 3Net interest income and average balance sheet and interest rates92
Note 4Non-interest income94
Note 5Operating expenses95
Note 6Income tax96
Note 7Earnings per share96
Note 8Loans97
Note 9Provision for expected credit losses97
Note 10Credit quality101
Note 11Deposits and other borrowings103
Note 12Fair values of financial assets and financial liabilities104
Note 13Provisions, contingent liabilities, contingent assets and credit commitments109
Note 14Shareholders’ equity114
Note 15Notes to the consolidated cash flow statement116
Note 16Subsequent events118
Note 17Assets and liabilities held for sale118
3.8Statutory statements119
Table of contents

63
1 REVIEW OF GROUP

OPERATIONS
2 SEGMENT REPORTING
3
2023 INTERIM

FINANCIAL REPORT
4
OTHER INFORMATION
5 GLOSSARY
WESTPAC GROUP

2023 INTERIM FINANCIAL RESULTS
Directors’ report
3.1 Directors’ report
The Directors of Westpac present their report together with the financial statements of Westpac and its controlled
entities (collectively referred to as ‘the Group’) for the half year ended 31 March 2023.
Directors
The names of the Directors of Westpac holding office at any time during, and since the end of, the half year and
the period for which each has served as a Director are set out below:
NamePosition
John McFarlaneDirector since February 2020 and Chairman since April 2020.
Peter KingManaging Director and Chief Executive Officer since December 2019.
Tim BurroughsDirector since March 2023.
Nerida CaesarDirector since September 2017.
Audette Exel AODirector since September 2021.
Michael Hawker AMDirector since December 2020.
Christopher LynchDirector since September 2020.
Peter NashDirector since March 2018.
Nora ScheinkestelDirector since March 2021.
Margaret SealeDirector since March 2019.
Michael Ullmer AODirector since April 2023.
Peter MarriottRetired 14 December 2022. Director since June 2013.
Review and results of the Group’s operations
Net Profit attributable to owners of Westpac for First Half 2023 was $4,001 million, 22% higher than First Half
2022. Compared to Second Half 2022, net profit was 66% higher.
Before impairment charges and income tax expense, profit was 24% higher than First Half 2022 from an 8%
increase in operating revenue and a 7% reduction in expenses. This reflects the benefit of higher net interest
margin and growth in mortgages and business lending along with continued cost discipline and lower asset
write-downs.
A summary of the movements in the major line items in Net Profit for First Half 2023 compared to First Half 2022
is discussed below.
Net interest income was $825 million higher, with a 7% increase in average interest earning assets and a 5 basis
point (bps) increase in net interest margin. Contributors to the movement in net interest margin included:
• Higher deposit spreads from higher interest rates and higher earnings on hedged deposits;
• Increased benefits on capital balances as a result of higher interest rates;
• Lower spreads on mortgages and business lending due to competition to attract new and retain existing
customers;
• An increase in liquid assets which have lower yields to support the reduction of the committed liquidity facility;
• Unrealised losses on fair value economic hedges in First Half 2023 compared to gains in First Half 2022; and
• A decrease in Treasury and Markets income reflecting a contraction in short-term funding spreads, lower
realised gains on liquid assets.
Non-interest income was $52 million lower compared to First Half 2022, mostly due to a reduction in revenue from
businesses sold.
Operating expenses were $385 million, or 7% lower compared to First Half 2022. The decrease was due to:
• Asset write-downs were $177 million lower due to the elevated write-downs in First Half 2022;
• A reduction in depreciation and amortisation of assets of $92 million; and
• Lower staff costs of $90 million from a reduction in average FTE and lower restructuring costs. This was partly
offset by higher average salaries.
Impairment charges were $390 million compared to $139 million in First Half 2022, impacted by a weakening
forward-looking economic indicators, rising early cycle delinquencies and an increase in stress in the New Zealand
business portfolio in First Half 2023. Most credit quality metrics improved compared to First Half 2022.
The effective tax rate was 28.8%. This was lower than the 30.4% effective tax rate in First Half 2022 due to tax
losses in First Half 2023 compared to tax gains in First Half 2022 from businesses sold.
The Board has determined an interim dividend of 70 cents per share, which will be fully franked.
Directors’ report