Westpac 1H23 Presentation and Investor Discussion Pack

ASX
Release


8 May 2023

Westpac 1H23 Presentation and Investor Discussion Pack

Westpac Banking Corporation (“Westpac”) today provides the attached Westpac 1H23
Presentation and Investor Discussion Pack.









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

Westpac
2023 Interim
Results Index
2023 Interim Results Presentation3
Investor Discussion Pack of 2023 Interim Results33
Earnings drivers35
Credit quality and provisions46
Non-credit risks69
Capital, Funding and Liquidity74
Customer franchise 88
Sustainability92
Segment results100
Economics109
Appendix113
Contact us125
Disclaimer126

Peter King
Chief Executive Officer

1H23 Highlights
4Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
Improved financial result
Simpler, stronger bank
Next strategic phase
Supporting customers
Strengthened balance sheet

1H23 Improved financial result
1 Also referred to as net profit attributable to owners of WBC, net profit after tax or statutory profit.
1H221H23
Change
1H23 –1H22
Net profit
1
$3,280m$4,001m22%
Notable Items$179m$178m(1%)
Revenue$10,230m$11,003m8%
Expenses($5,373m)($4,988m)(7%)
Impairment charges to average loans annualised4 bps10 bps6 bps
CET1 ratio11.3%12.3%95 bps
Return on equity9.3%11.3%205 bps
Earnings per share91 cents114 cents26%
Interim dividend per share61 cents70 cents15%
5Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack

33
95
91
31
55
69
114
2020202120222023
1H2H1H23
Increased shareholder returns
6
Dividend per share (cents)
Earnings per share (cents)
3
Return on tangible equity (%)
1 No dividend was issued in 1H20. 2 1H23 compared to 1H22. 3 Full year earnings per share: FY20 64 cents; FY21 149 cents; andFY22 160 cents.
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
3.9
8.8
9.2
12.8
FY20FY21FY221H23
Up 361bps
58
61
31
60
64
70
2020202120222023
InterimFinal1H23 Interim
Up 15%
2
Up 26%
2
1

Strengthened balance sheet
7
Capital above target rangeWell provisioned
Significant increase in liquid assets Funding composition improved
1 Expected credit loss. 2 Wholesale funding with a residual maturity of less than 12 months, including long term to short terms scroll.
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
7.4%
8.7%
12.3%
Mar-08Mar-13Mar-23
$4.9bn
$3.4bn
Total impairment provisions100% base case ECL
$34bn
$111bn
$210bn
8%
16%
21%
Mar-08Mar-13Mar-23
44%
59%
65%
14%
17%
15%
37%
17%
13%
$352bn
$610bn
$967bn
Mar-08Mar-13Mar-23
Equity
Short term wholesale
Long term wholesale
Customer deposits
$1.5bn above
base case
$3.6bn above
top end of
target range
1
2
Liquid assets as a % of total assets
CET1 ratio

Stronger foundations
• 87%of CORE program activities
3
completed
• Westpac program status
4
:
−March 2023 – Amber
−February 2023 – Red
−September 2022 – Green
−March 2022 – Amber
• Program activities targeting completion by December 2023
• Risk management will continue to be a focus beyond 2023
Simpler, stronger bank
8
1 At 30 April 2023. 2 Announced 4 April 2023. 3 Completed activities finalised by Westpac. Activities may still be subject to Promontory Australia review. At 31 March 2023. 4 Program status rating changes with the identification and resolution of issues.
95%
Implement
56%
EmbedDesign
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
Simpler bank
9
Businesses
exited
47%
reduction in major
technology incidents
50
Co-located branches
1
1,700+
AT M s– Armaguard
agreement
2
Office space reduction
120
applications
decommissioned
12%

A strategy for growth and return
PILLARS
CUSTOMER
care at the heart
EASY
to do business with
EXPERT
solutions and tools
AD V O C AT E
for positive change
• Responsive &
consistent service
• Support for
customers
in good times & bad
• Recognition for
customers’ loyalty
• Simple, safe,
straightforward
banking
• Better ways to
manage finances
• Digitally-enabled
throughout
• Comprehensive
solutions, features &
benefits
• Distinctive thought
leadership in finance
and climate
• Best people in the
industry
• Financial inclusion &
equality
• Data security &
protection
• Action on climate &
nature
VALUES
HelpfulEthical
Leading
Change
PerformingSimple
MEASURES
Return on tangible equityMarket position
FOUNDATIONS
Strong
balance sheet
Proactive Risk
Management and
Risk Culture
Data-informed
insights and
decisioning
Passionate
people who
make a difference
PURPOSECreating better futures together
9Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack

Maintaining cost discipline
10
Cost to income ratio (%)
1
1 Statutory profit basis.
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
• Looking to lift investment in growth and
productivity over time
• Risk, regulatory and inflation costs persistent
• Moving away from FY24 absolute cost target
• Focus on improving cost to income ratio relative
to peers
• Maintaining cost discipline through cost reset
program – delivered >$1bn in savings
40
45
50
55
60
65
FY20FY21FY221H23
5.0
4.9
5.3
5.2
5.3
5.7
5.0
2.5
2.3
0.6
12.7
13.3
10.8
FY20FY21FY221H23
1H231H2HNotable items
Expenses ($bn)
WestpacPeers

Supporting customers – bank in your pocket
11
1 For mortgage originations.
Real-time digital
gambling block
New Westpac
Android App
New self serve
features
Personal Finance
Management
Digital mortgage
New Business App
Apple Pay
New Westpac
iOS App
Strengthened
safeguards against
abusive messages
Instant Digital Card
and Dynamic CVC
Expense splitter and
Voice search
Actionable push
notifications for fraud
Eftpos Air
Voice scam detection,
Biometric fraud
detection
PayTo
Open Banking
1
Westpac Verify
Carbon footprint
tracker
Security Wellbeing
Check
Westpac Protect –
Trusted Wi-Fi
2020Now
Innovation accelerating
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack

Restoring mortgage market position
12
Established franchiseDigitising to the Core
One origination platform for
all consumer customers
• First party TTR
2
down,
simple deals at ~3 days
3
• All brokers now on platform,
TTR set to reduce
Positioning for future growth
Reducing origination time
• Digital Mortgage scalable
• Fast & automated Broker
experiences
1 Source: FiftyFive5 Brand Tracker. 2 Time To Right. 3 Based on time from application start.
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
1,350+
Bankers
20,000+
Active brokers
#2
consideration ranking,
up 1 place from Sep-22
1
Disciplined
growth
in competitive
environment
Re-imagining service
• Digital applications and servicing
• Data-driven insights and offers
Increase customer advocacy
• Lift NPS
• Higher retention rate
Digital
mortgage
• Decisioning from days
to minutes
• Integrated into core
infrastructure
• ~$80m settled in April

Business Banking growth opportunity
13
Disciplined growth
Deposits (%)
Digitisation and simplification
1 Other includes transport & storage, health, finance & insurance and education.
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
Launched EFTPOS Air for small business customers
Digital lending application form –
decisions 25% faster
New climate team
support customer transitions
Strong deposit base
deposit to loan ratio 156%
Business lending growth
in targeted industries
Women in business
–
$500m commitment
29
31
40
$133bn
Term deposits
Savings
Transactions
27
13
9
8
8
7
7
5
16
Loans (%)
$87bn
Property
Agriculture
Wholesale & retail trade
Professional services
Property operators
Accommodation, cafes
& restaurants
Other
1
Construction
Manufacturing

Reclaiming position as a leading institutional bank
14
Deeper relationships driving growth
• Improved returns
• More activity with existing customers
and products
• Markets sales and risk management income up 25%
• Sound credit quality – average risk
grade unchanged
1 #1 market share in bonds and semis, #1 market share in OIS, #1 market share in asset-backed bonds, =#2 market share in investment grade corporate bonds, #3 market share in interest rate swaps. Source: 2022 Peter Lee Associates Fixed Income
Survey, ranking against all banks. 2 Source: Bloomberg AUD primary bond league table for ACGB & Semi issuance, calendar year 2022. 3 Source: IJ Global’sProject Finance league table, calendar year 2022.
1.1
1.2
1.4
54.1
51.3
43.6
1H222H221H23
Revenue ($bn)Cost to income (%)
Differentiated expertise
• Partner for transition to net-zero
• Thought leadership in markets & economics
• DataXproviding insights to customers
• Enhanced FX Online offering
• Investing for the future – new corporate cash
management platform
Relationship strength across categories
• Leading position across a range of key fixed income
markets
1
• Top of league table in Australian government and semi-
government bond issuance
2
• #1 Renewables Project Finance bank in Australia
3
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
74
85
85
Mar-22Sep-22Mar-23
Financial performance
Net loans ($bn)

Michael Rowland
Chief Financial Officer

1H23 results summary compared to 2H22
1 Excluding Notable Items. 2 Of average loans. 3 Adoption of APRA’s revised capital framework added 8bps to the CAP to credit RWA ratio. 4 TCE is total committed exposure. 5 In 1H23 Westpac applied amendments to APS 220 Credit Risk
Management which changed the definition of non-performing loans in Half Year 2023 and resulted in an increase in the stressed exposures to TCE ratio of 4bps.
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack16
•Pre-provision profit
1
$5,883m, up 15%
•Revenue
1
$10,871m, up 7% –higher Core NIM and non-interest income
•Expenses
1
$4,988m, down 1% –cost discipline
•Impairment charges 10 bps
2
, up 5 bps mainly from updated economics
forecasts,
•CAP to credit RWA 133 bps, up 17 bps
3
•Mortgage 90+ day delinquency 0.68%, down 1 bp
•Stressed exposures to TCE
4
1.10%, up 3 bps
5
•Slight increase in early cycle delinquencies
•CET1 capital ratio 12.3%, up 99 bps
•Total provisions $4.9bn, $1.5bn above base case scenario
•LCR and NSFR well above regulatory minimums
•Proactive on funding and higher deposits
Financial performance
improved
Balance sheet strong
– provides flexibility
Credit
quality sound

Notable Items and discontinuation of cash earnings
17
• Statutory net profit after tax primary measure
• Part of simplification agenda:
−ASX and US results closely aligned
−Full year results and annual report combined
• Notable Items continued to be reported
Net interest margin (%)1H222H221H23
Core NIM
4
1.701.801.90
Treasury & Markets impact0.150.100.08
Core NIM, Treasury & Markets
5
1.851.901.98
Notable Items impact: Hedging0.060.06(0.02)
Group NIM
6
1.911.961.96
1 For further details of Notable Items refer to page 38. 2 Unrealised fair value gains and losses on economic hedges. 3 Net ineffectiveness on qualifying hedges. 4 Group net interestMargin excluding Notable Items, Treasury & Markets. 5 Equivalent of
net interest margin on a cash earning basis reported in prior periods. 6 Group net interest margin.
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
Notable Items
1
($m after tax)1H222H221H23
Economic hedges
2
204266(121)
Hedge ineffectiveness
3
(19)(33)43
Large items not reflective of
ordinary operations
(6)(1,286)256
Total Notable Items179(1,053)178

1H23 Net profit
1 Advance Asset Management Limited. 2 Non-controlling interests.
($m)
2,414
617
80
51
1,231 4,001
(194)
(198)
2H22
Net interest
income
Non-interest
income
ExpensesImpairment
charges
Tax & NCINotable Items1H23
2
Pre-provision profit up 15%
18Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
1H23: AAML
1
sale $256m gain
2H22: Life insurance sale $1,112m loss

1.80
1.90
0.16
0.06
1.96
20bps
4bps
1.96 (11bps)
(1bps)
(2bps)
(2bps)
(8bps)
2H22LoansCustomer
deposits
CapitalWholesale
funding
Liquid assetsTreasury
& Markets
Notable Items1H23
Core NIM
1
ex liquids up 12 bps
Net interest margin (%)
1 Group net interest margin excluding Notable Items, Treasury & Markets. 2 Exit refers to Core NIM for the month of March 2023.
Core NIM
Exit1.88%
2
1H231.90%
Savings accounts ~11bps
Hedged deposits 2bps
Competition,
switching and mix
Impact on Group NIM (%)2H221H23
Treasury & Markets0.100.08
Notable Items: Economic
hedges and ineffectiveness
0.06(0.02)
Core NIM ex liquids up 12bps
Core NIMNotable Items, Treasury & Markets
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack19

719.6
739.6
5.2
0.7
6.6
0.1
749.9
(0.5)
(1.8)
Mar-22Sep-22MortgagesBusiness
(ex auto)
InstitutionalNew
Zealand
(in A$)
Personal
(ex auto)
AutoMar-23
Disciplined lending growth
($bn)
20
Up 1%
Up $1.4bn in NZ$
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack

Non-interest income up 5%
1
21
($m)
1 Excludes the impact of Notable Items. 2 Derivative valuation adjustment (DVA) has been revised to include funding value adjustment and credit value adjustment (CVA). Previously DVA included only CVA. Prior periods have been restated.
• Lower contribution from
businesses sold
• Tightening credit spreads
• Higher sales volumes
• One-off in 2H22 - Australian life
insurance completion adjustment
•NZ: Lower interchange fees
•Consumer: Lower payments
remediation
•WIB: lower undrawn line fees,
higher debt capital markets fees
Net fees
1
FlatWealth
1
16%Markets and other
1
43%
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
444
415
347
1H222H221H23
349
298
352
(10)
(17)
57
82
66
86
421
347
495
1H222H221H23
MarketsDVAOther
302
303
296
265
248
266
162
165
163
116
111
102
845
827827
1H222H221H23
WIBConsumerBusinessOther
2

1H23 expenses down 1%
1
1 Excluding the impact of Notable Items.
5,373
5,429
5,039
249
20
4,988
(390)
(194)
(93)
(33)
1H222H22Notable
Items
2H22 ex
Notable
Items
Ongoing
expenses
Cost
reset
benefits
Investment
ex risk
& reg
Risk
& reg
Specialist
Businesses
1H23
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack22
($m)
Salary & wage increases
and inflation
Down 1%

653
536
294
332
947
868
1H221H23
Investment
1 Includes capitalised software, fixed assets and prepayments.
23
Investment spend ($m)1H222H221H23
Expensed528355287
Capitalised
1
419685581
Total investment spend9471,040868
Avg amortisation period (years)3.13.64.5
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
Growth and productivity investment increased
• Mortgage origination platform
• Digital capability
• Corporate cash management platform
• Business process simplification
Regulatory compliance remains a priority
Capitalisation of investment increased with higher spend
on platforms and infrastructure
($m)
• CORE program
• Basel III
• BS11
• Payments
• Data collection
• Financial Crime
• Cyber
• Resilience
Growth & productivityRisk & regulatory
Up 13%
Down 18%

Credit impairment charge / (benefit) composition
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
Individually assessed provisions (IAP)
($m)
Collectively assessed provisions (CAP)Total
24
97
123
76
(166)
(138)
(214)
218
228
218
(10)
(17)
310
139
196
390
1H222H221H231H222H221H231H222H221H231H222H221H231H222H221H23
New IAP
Write-backs
& recoveries
Write-offs
direct
Other movement
in CAP

Impairment provisions $1.5bn above base case
25
501
452
382
989
947
1,011
1,262
1,691
1,980
794
845
830
1,136
700
720
4,682
4,635
4,923
Mar-22Sep-22Mar-23
CAP to credit RWA of 1.33%, up 17bps
Overlays higher
•New NZ weather-related events overlay
•Construction reduced, reflected in modelled scenarios
CAP (ex overlays) higher
•Updated economic forecasts
•Some deterioration in credit quality
IAP lower
•Impaired asset provision coverage 43%
Expected credit loss (ECL) ($m)
Total impairment provisions ($m)
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
Overlays
Stage 3 IAPStage 3 CAP
Stage 1 CAPStage 2 CAP
4,923
3,391
Total impairment provision100% base case ECL
$1.5bn above
base case

Slight increase in early cycle delinquencies
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
1 TCE is total committed exposure. 2Non-performing not impaired exposure increase of 4bps due to APS 220 Credit Risk Management methodology change impacting Australian mortgage portfolio.
Stressed exposures as a % of TCE
1
Australian mortgage delinquencies (%)
Australian unsecured delinquencies (%)
26
1.39
0.73
0.00
1.00
2.00
3.00
4.00
Mar-20Sep-20Mar-21Sep-21Mar-22Sep-22Mar-23
30+ day delinquencies90+ day delinquencies
2.98
1.58
1.00
2.25
3.50
4.75
6.00
Mar-20Sep-20Mar-21Sep-21Mar-22Sep-22Mar-23
30+ day delinquencies90+ day delinquencies
0.17
0.26
0.19
0.14
0.13
0.12
0.48
0.80
0.68
0.56
0.51
0.55
0.55
0.85
0.49
0.40
0.43
0.43
1.20
1.91
1.36
1.10
1.07
1.10
Sep-19Sep-20Sep-21Mar-22Sep-22Mar-23
Watchlist &
substandard
Non-performing,
not impaired
2
Impaired

Capital above top end of target operating range
1 Net of dividend reinvestment plan. 2 APRA’s revised capital framework effective 1 January 2023. 3 Capital deduction and other movements including FX translation impacts.
11.29
82bps
62bps
7bps
8bps12.28
(45bps)
(15bps)
Sep-22Net profit ex
Notable Items
DividendBasel IIIRWAOtherDivestmentsMar-23
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack27
CET1 Capital (%)
Target operating
range: 11 – 11.5%
3
Reduced RWA:
• Property finance
• Mortgages
• Off-balance sheet
12

61
64
70
1H222H221H23
Dividend 70 cps, up 15%
1
28
Dividends per ordinary share (cents)Dividend payout ratio (%)
1H222H221H23
Net profit659361
Net profit
(ex Notable Items)
696564
1 Compared to 1H22. 2 Based on 31 March 2023 closing price of $21.66.
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
Considers medium
term outlook for
return and growth
Sustainable
payout ratio
range 65 –75%
Final dividend yield
6.5%
2
, fully
franked 9.3%
2
Neutralise
DRP

2H23 Margin outlook
1
29Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
1 This page contains 'forward-looking statements' and statements of expectation. Please refer to the disclaimer on page 126. 2 Exit refers to Core NIM for the month of March 2023.
•Expecting mortgages to remain very competitive
•Deposit mix impact
•Higher earnings on hedged deposits
•Small drag from roll-off of TFF
•Wholesale funding costs broadly flat
•Higher earnings on capital
•Core NIM peaked in Oct-22
•Exit NIM
2
1.88%, 2 bps below 1H23 average of 1.90%
Core NIM
Funding
Lending
& deposits
Capital

Revenue
Expenses
Credit quality
Balance sheet
2H23 Considerations
1
30
1 This page contains 'forward-looking statements' and statements of expectation. Please refer to the disclaimer on page 126.
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
•Headwinds on margin
•System credit growth easing
•Focus on increasing business lending
•Full period impact of business exits
•Cost discipline maintained
•Risk and regulatory costs, wages and inflation to remain elevated
•Start 2H23 with sound credit quality
•Expect some deterioration in creditmetrics
•Conservative balance sheet settings
•Maintain capital above operating range – flexibility for future capital management

Peter King
Chief Executive Officer

Priorities and outlook
1 From Westpac Economics.
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack32
Australian economic forecasts
1
Dec-22Dec-23Dec-24
Cash rate
3.10%3.85%2.85%
GDP
2.7%1.0%1.5%
Unemployment rate
3.5%4.5%5.0%
Inflation
7.8%4.0%3.1%
Credit growth
7.8%3.2%3.5%
House price growth
(7.1%)0.0%5.0%
Slowing
economic growth
Credit portfolio
resilient to date
Supporting
customers
Strong financial position
provides flexibility
Disciplined growth Focus on cost reset

Investor
Discussion
Pack

Multi-brand serving 12.8 million customers
Australia’s first bank
and oldest company
founded in 1817
Second largest market share
in Australian mortgages and
household deposits
3
Improved total shareholder
return,dividend70 cents per
share up 15% in 1H23
1
#2 Digital Bank App
4
Mobile App NPS
5
at+31
Why Westpac
1 Compared to prior corresponding period (1H22). 2 S&P Global Ratings, Moody’s Investors Service and Fitch Ratingsrespectively. All three credit rating agencies have Westpac Banking Corporation on a stable outlook. 3 Based on APRA statisticsat
March 2023. 4 Forrester Research: Digital Experience Review™– Australian Mobile Banking Apps, Q3 2022. 5 For further details on metric provider see page 124.
Overview
Strong balance sheet with
high capital ratios, strong
funding and liquidity, and sound
credit provisions
Highly rated bank with credit
ratings
2
AA-/ Aa3 / A+
Member of Net-Zero Banking
Alliance,supporting
customers’ transition to a net-
zero economy by 2050
Organisational Health Index
at 75, +3 versus global median
Australianconsumer MFI
5
share at 18%, ranking #2
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack34

Earnings drivers

3,280
3,101
1,181
154
3,823
178
(179)
(41)
(251)
(321)
4,001
1H22Notable
Items
1H22 ex
Notable
Items
Net interest
income
Non-interest
income
ExpensesImpairment
charges
Tax & NCI1H23 ex
Notable Items
Notable
Items
1H23
Businesses sold, simplification benefits and
completion of some regulatory programs,
average FTE
3
down 4%
1H23 Net profit
36
Earnings
Net profit 1H22 – 1H23 ($m)
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
AIEA
1
up 7%, core NIM
2
up 20bps.
Impact of Treasury & Markets and
Notable Items reduced Group
NIM by 15bps
Up 22%
1 Average interest-earning assets. 2 Net interest margin. 3 Full time equivalent. 4 Non-controlling interests.
Up 23% ex Notable Items
Higher charge for collectively
assessed provisions
Lower income from
businesses sold
4

2,414
1,0533,467
617
80
51
3,823
178
(194)
(198)
4,001
2H22Notable
Items
2H22 ex
Notable
Items
Net interest
income
Non-interest
income
ExpensesImpairment
charges
Tax & NCI1H23 ex
Notable Items
Notable
Items
1H23
1H23 Net profit
37
Earnings
Net profit 2H22 – 1H23 ($m)
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
Up 66%
Up 10% ex Notable Items
AIEA up 4% due to loan growth and
higher liquid assets. Core NIM up
10bps offset by impact from Treasury &
Markets and Notable Items
Stronger Markets
performance
Reduction in third-party providers, property
costs, and other simplification benefits partly
offset higher inflation and wage growth
Changes in macro economic factors, New
Zealand weather overlays and small
increase in early-cycle delinquencies

Single measure of performance – net profit
38
• Westpac uses net profit to assess financial performance at both a Group and segment level
• Notable Items broadly fall into the following categories:
−Large items that are not reflective of the Group’s ordinary operations which may include:
oProvisions for remediation, litigation, fines and penalties
oThe impact of asset sales and revaluations
oThe write-down of assets (including goodwill and capitalised software)
oRestructuring costs
−Unrealised fair value gains and losses on economic hedges that do not qualify for hedge accounting
−Net ineffectiveness on qualifying hedges
Earnings
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
Notable Items ($m after tax)1H222H221H23
Provisions for litigation, fines and penalties(65)(68)-
Asset sales and revaluations213(1,089)256
Write-down of assets(154)(129)-
Economic hedges204266(121)
Hedge ineffectiveness(19)(33)43
Total Notable Items179(1,053)178
(46)
159
(120)
105
243
(544)
(94)
200
185
233
(78)
1H182H181H192H191H202H201H212H211H222H221H23
Hedging volatility ($m)

550
563
50
9
0570
(45)
(7)
Mar-22Sep-22New
mortgage
lending
Mortgage
repayment
New
business
lending
Business
loan
repayment
Net
consumer
finance
Mar-23
458
468
25
7
473
(15)
(11)
Mar-22Sep-22New lending
ex refinance
Net
refinance
Property sale
and other
PaydownMar-23
724
744
5
1
7
754
(0)
(2)
Mar-22Sep-22ConsumerBusinessWIBNew
Zealand
OtherMar-23
Composition and movement in lending
39
Movement in gross loans ($bn)Composition of loans
1,2
(% of total)
63
12
10
2
8
4
<1
Australian mortgages
Australian business
Institutional
Australian other consumer
New Zealand mortgages
New Zealand business/others
Other overseas
Australian lending ($bn)
Consumer and Business segments
1 Gross loans. 2 In A$. Movement in local currency was NZ$1.4 billion. 3 Includes refinance, redraw, property sales, repayment and others. 4 Includes Group Businesses and Specialist Businesses. 5 Excludes external refinance. 6 External refinance
only. 7 Includes redraws.
Revenue
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
Up 4%
Up 1%
2
4
$754bn
Charts may not add due to rounding.
Australian mortgage lending ($bn)
Up 3%
Up 1%
Up 3%
Up 1%
5
6
7
3

601
613
17
12
628
(14)
(0)
Mar-22Sep-22Term
deposits
SavingsTransactionMortgage
offset
Mar-23
Composition and movement in deposits
40
Composition of deposits (% of total)
56
26
18
Households
Businesses
Institutional
Customer deposits by type ($bn)
134
137
162
179
207
217
199
211
188
193
198
183
52
53
54
54
581
601
613
628
Sep-21Mar-22Sep-22Mar-23
Term depositsSavingsTransactionMortgage offset
Customer deposit movements ($bn)
Customer deposits by segment ($bn)
1 In A$. Movement in local currency over the half was NZ$1.9 billion.
Revenue
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
Up 4%
Up 2%
$628bn
Charts may not add due to rounding.
266
276
281
294
129
135
133
133
99
105
117
113
72
73
69
75
14
12
13
13
580
601
613
628
Sep-21Mar-22Sep-22Mar-23
SB and otherNew ZealandWIBBusinessConsumer
1

0%
1%
2%
3%
4%
5%
Mar-20Mar-21Mar-22Mar-23
3 year swap rate (spot)
Blended tractor rate
1.80
1.90
0.16
0.06
1.96
20bps
4bps
1.96
(11bps)
(1bp)
(2bps)
(2bps)(8bps)
2H22LoansDepositsEarnings on
capital
Wholesale
funding
Liquid assetsTreasury
& Markets
Notable Items1H23
Notable Items,T&MCore NIM
Net interest margin
Net interest margin (% and bps)
Australian deposits
1
by interest rate
bands ($bn)
Tractor rate
1 Excludes mortgage offset balances. Prior period numbers have been updated. 2 On statutory profit basis.
Revenue
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
41
297
168
1
0
94
129
230
28
81
55
70
285
Mar-22Sep-22Mar-23
41
1.96%
1.8%
2.0%
2.2%
2.4%
2.6%
2.8%
20022007201220172022
Group NIM
2
over 20 years (%)
Capital $53bn: 3yr hedge
Deposits $64bn: 4yr hedge
Core NIM
Exit 1.88%
1H23 1.90%
≤25bps
26≤150bps151≤300bps
301bps+

349
298
352
(10)
(17)
57
82
66
61
421
347
470
1H222H221H23
MarketsDVAOther
845
827827
219
248
232
339
281
409
82
66
61
1,485
1,422
1,529
1H222H221H23
FeesWealth managementMarketsOther
302
303
296
265
248
266
162
165
163
116
111
102
845
827
827
1H222H221H23
WIBConsumerBusinessOther
Non-interest income
1
42
Non-interest income by type ($m)
Net fee income ($m)
Markets and other ($m)
Revenue
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
1 Excluding Notable Items and businesses sold. Income for businesses sold includes Motor Vehicle Finance & Novated Leasing, New Zealand life insurance and Australian life insurance, AAML and BT Super successor fund transfer; prior figures have
been aligned to current presentation for comparability. 2 Derivative valuation adjustment (DVA) has been revised to include funding value adjustment and credit value adjustment (CVA). Previously DVA included only CVA. Prior periods have been
restated.
2

5,373
5,142
697
4,988
(231)
(562)
(95)
(101)
(93)
1H22Notable Items1H22 ex Notable
Items
Ongoing
expenses
Cost reset
benefits
Investment
ex risk & reg
Risk & regSpecialist
Businesses
1H23
Expenses
1 Excluding the impact of Notable Items. Compared to prior corresponding period. 2 Successor fund transfer of BT Super to Mercer
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack43
Operating expenses declined 3% despite inflationary pressures
1
Expenses
Down 3%
Wage increases and inflation
Includes SFT
2
expense
reimbursement

Selected cost reset initiatives
44
1 Percentage of home loan applications through mortgage origination platform for 1
st
and 3
rd
party lending (excluding RAMS). FY24 target refers to both 1
st
and 3
rd
party across Consumer. 2 Refer to page 124 for definition. 3 Reduction to FY24
represents decrease on baseline. 4 Includes products for sale and not for sale across Australia and New Zealand, except for institutional products which are forsale only. 5 Represents international locations excluding New Zealand and Westpac Pacific.
6 $200m is based on savings from volume and rate management, and includes consulting engagements.7 Cumulative. 8 Relates to the month of March 2023. 9Annualised.
Expenses
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
MetricFY20 baselineFY221H23
Portfolio
simplification
•Sale of non-core businesses
1 under sale
agreement
7 completed9 completed
7
Business
simplification
•Mortgages processed on digital
origination platform
1
•Consumer sales via digital
2
•Branch transactions
3
•Number of products
4
32%
42%
29 million
1,191
82%
43%
23 million
805
92%
8
43%
22 million
9
785
Organisational
simplification
•Offshore locations
5
•Reduce third-party and contractor spend by
more than $200m p.a.
6
•Reduce head office roles – more than 20%
877
>$200m>$200m
9
(12%)(12%)

1H23 impairment charge of $390m
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack45
97
123
76
(166)
(138)
(214)
218
228
218
(10)
(17)
310
139
196
390
1H222H221H231H222H221H231H222H221H231H222H221H231H222H221H23
Impairment charges and stressed exposures (bps)
Impairment charges ($m)
New
IAPs
Write-backs &
recoveries
Write-offs
direct
Other mvmts
in CAP
Individually assessed
Collectively assessed
Total
Impairment charges
10
110
-100
0
100
200
300
400
-20
0
20
40
60
80
100
2008200920102011201220132014201520162017201820192020202120222023
Impairment charge to average loans annualised (lhs)Stressed exposures to TCE (rhs)

Credit quality
and provisions

47
412
611
832
452
382
943
1,561
1,131
947
1,011
1,578
2,249
1,606
1,691
1,980
820
1,034
791
845
830
171
708
647
700
720
3,924
6,163
5,007
4,635
4,923
Sep-19Sep-20Sep-21Sep-22Mar-23
Stage 3 IAP Stage 3 CAP Stage 1 CAP
OverlayTotal provisions
4,923
3,391
6,836
Reported
probability-weighted ECL
100%
base case ECL
100%
downside ECL
Provisions for expected credit loss
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
Total provisions for expected credit losses
1
($m)
Credit quality
Expected credit loss
1
(ECL) ($m)
1 Includes provisions for debt securities. 2 Forecast date is 21 March 2023. 3 These KEIs represent trough or peak values that characterise the scenarios considered in setting downside severity. Residential and commercial forecasts represent
cumulative reduction over a two-year period.
Forecasts for base case
economic scenario
2
Base caseDownside
20232024
Trough /
peak
3
GDP growth1.0%1.5%(6%)
Unemployment4.7%5.1%11%
Residential property prices(7.8%)2.0%(27%)
Commercial property prices(9.4%)1.4%(32%)
COVID-19
Increased for NZ
weather events
with construction
overlay reduced
as this risk is now
covered under
modelled CAP
Updated
economics
forecast, NZ
portfolio
deterioration and
higher early cycle
consumer
delinquencies
Write-backs and
lower new IAP
$1.5bn in provisions above the
base case economic scenario

0.70
0.64
0.67
7.65
11.62
13.16
91.65
87.73
86.17
Mar-22Sep-22Mar-23
Provision cover
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
Exposures as a % of TCE
48
Credit quality
Provisioning to TCE (%)
Mar-22Sep-22Mar-23
Stage 1 provisions
Fully performing portfolio0.100.090.09
Stage 2 provisions (includes portfolio overlays)
Non-stressed but significant increase in credit risk 1.921.351.33
Watchlist & substandard10.9511.0510.93
Stage 3 provisions
Non-performing, not impaired10.6211.0711.06
Impaired48.0347.9742.81
1 The adoption of APRA’s revised capital framework added 8bps to the CAP to credit RWA ratio.Prior periods have not been restated. 2 Regulatory changes extending the period over which exposures remain classified as non-performing before they
can be reclassified as performing.
Mar-22Sep-22Mar-23
Provisions to gross loans (bps)656265
Impaired asset provisions to impaired assets (%)484843
Collectively assessed provisions to credit RWA (bps)
1
116116133
Key ratios
Stage 1 –small reduction
driven by modelled
outcomes reflecting
updated key economic
indicators
Stage 2 –small increase
driven by modelled
outcomes reflecting updated
key economic indicators
Stage 3 –small increase
driven by APS220 impacts
2
Chart does not add to 100 due to rounding.

1
107
4110
(1)
(1)
Sep-22ImpairedNon-
performing,
not impaired
SubstandardWatchlistMar-23
Movement in stress categories (bps)
0.17
0.26
0.19
0.14
0.13
0.12
0.48
0.80
0.68
0.56
0.51
0.55
0.55
0.85
0.49
0.40
0.43
0.43
1.20
1.91
1.36
1.10
1.07
1.10
Sep-19Sep-20Sep-21Mar-22Sep-22Mar-23
Watchlist & substandardNon-performing, not impairedImpaired
Credit quality metrics stable
49
1,069
1,761
836
430
174
FY19FY20FY21FY221H23
1H2H
New and increased gross impaired assets ($m)
2
Stressed exposures as a % of TCE
1 Non-performing not impaired exposure increase of 4bps due to APS 220 Credit Risk Management methodology change impacting Australian mortgage portfolio. 2Includes exposures that are managed on a facility by facility basis.
Credit quality
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
Increase driven by change
in methodology following
regulatory change
1

06001,2001,8002,4003,0003,600
A
A-
BBB+
A
BBB+
A-
A-
A-
BBB+
AA-
Portfolio composition
50
Total committed exposure (TCE) by risk grade at 31 March 2023 ($m)
Top 10 institutional exposures to corporations
and NBFIs
3
(% of TCE)
Top 10 institutional exposures to corporations & NBFIs
at 31 March 2023 ($m)
4
1 Risk grade equivalent. 2 Region is based on booking office. 3 NBFI is non-bank financial institutions. 4 S&P rating or equivalent.
Credit quality
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
1.0
1.1
1.2
1.1
1.0
Sep-19Sep-20Sep-21Sep-22Mar-23
Standard and Poor’s risk grade
1
AustraliaNZ / PacificOther overseasGroup% of total
AAA to AA-
221,18425,119 19,502 265,805
22%
A+ to A-
39,054 5,618 9,539 54,211
4%
BBB+ to BBB-
71,205 12,087 7,812 91,104
7%
BB+ to BB
77,86015,014 721 93,595
8%
BB- to B+
54,093 7,677 506 62,276
5%
<B+
6,305 2,332 36 8,673
1%
Mortgages
540,961 71,153 -612,114
50%
Otherconsumer products
27,380 5,132 -32,512
3%
TCE
1,038,042 144,132 38,116 1,220,290
TCE at 30 September 2022
1,014,349133,62037,9331,185,902
Exposure by region
2
(%)
85%12%3%100%
Clearing house
membership

Exposure and credit quality by sector
Sector
Finance &
Insurance
1
Property
2
Wholesale
& retail
tradeManufacturing
Agriculture,
forestry&
fishing
Services
3
Property &
business
services
Transport
& storageUtilitiesConstruction
4
Accomm,
cafes &
restaurantsMining
TCE ($bn)
Mar-23205.678.8
29.0
24.223.9
23.7
22.017.316.911.910.28.7
Sep-22187.976.1
29.3
24.423.2
23.5
22.429.314.311.510.27.9
Stressed (%)
5,6
Mar-230.12.4
3.2
3.04.1
2.8
3.11.40.16.24.82.4
Sep-220.12.1
3.0
2.93.6
4.1
3.22.00.25.46.80.6
Impaired (%)
6
Mar-230.00.1
0.6
0.50.3
0.4
0.60.20.00.80.60.1
Sep-220.00.1
0.6
0.80.2
0.5
0.70.20.00.80.60.1
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
PropertyWholesale &
retail trade
ManufacturingAgriculture,
forestry &
fishing
ServicesProperty &
business
services
Transport
&
storage
UtilitiesConstructionAccommodation
cafes &
restaurants
Mining
Mar-22Sep-22Mar-23
Credit quality across sectors
1 Finance and insurance includes banks, non-banks, insurance companies and other firms providing services to the finance and insurance sectors. Includes assets held for liquidity portfolio. 2 Property includes both residential and non-residential
property investors and developers and excludes real estate agents. 3 Services includes education, health & community services, cultural & recreational and personal & other services. 4Construction includes building and non-building construction, and
industries serving the construction sector. 5 Includes impaired exposures. 6 Percentage of portfolio TCE
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack51
Corporate and business stressed exposures by industry sector (%)
Credit quality
Mostly downgrades to
watchlist (loans are still
performing)
Increased stress
mostly in New
Zealand dairy
portfolio, reduced
stress in Australian
agriculture
Decrease driven by
upgrade of one exposure
Mostly downgrades to
watchlist (loans are
still performing)
Upgrade of a
small number
of exposures
Driven by
mining
services

Sectors in focus:
Commercial property
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack52
Commercial property exposures
(% of TCE)
1 Policy exception can be made under limited circumstances. 2 Fully secured: Secured loan to collateral value ratio ≤ 100%. 3Restatement of Mar-22 and Sep-22 median risk grade reflects data review. 4 Includes impaired exposures. 5 Percentage of
commercial property portfolio TCE. 6 Following a review of ANZIC codes used to classify commercial property exposures, some exposures have been reclassified in 1H23. 7 Region is based on booking office.
Credit quality
Mar-22Sep-22Mar-23
TCE ($bn)74.376.178.8
Lending ($bn)56.560.061.0
As a % of Group TCE6.406.426.46
Median risk grade
(S&P equivalent)
3
BBBBBB-
% of portfoliograded
as stressed
4,5
2.062.072.38
% of portfolio impaired
5
0.160.070.08
Commercial property portfolio composition (TCE) (%)
•Single Group-wide credit policy,
supported by industry concentration
limits and sub limits
•Managed by specialist relationship
teams, dedicated credit officers and
subject matter experts
•Weighted average LVR for the Australian
secured portfolio <50%
•Credit policy maximum LVR at
origination 65%
1
•80% fully secured
2
6.5
6.5
6.4
6.2
6.2
6.4
6.4
6.5
Sep-
17
Sep-
18
Sep-
19
Sep-
20
Sep-
21
Mar-
22
Sep-
22
Mar-
23
18
13
7
6
3
9
44
NSW & ACT
VIC
QLD
SA, NT & TAS
WA
NZ & Pacific
Institutional
32
6
47
15
Investors &
developers <$10m
Developers >$10m
Investors >$10m
Diversified property
groups and property
trusts >$10m
Borrower type
6
Region
6,7
23
24
19
16
13
5
Commercial offices
Retail
Residential
Industrial
Corporate
Other
Commercial property portfolio
composition (TCE) (%)
Sector
5

59
18
23
Fully secured
Partially secured
Unsecured
22
16
8
5
5
28
16
Building construction
Installation services
Site prep services
Structure services
Completion services
Other services
Non-building
construction
33
39
24
4
Accommodation
Pubs, taverns and
bars
Cafes and
restaurants
Clubs (hospitality)
Sectors in focus:
Accommodation, cafes and restaurants; construction
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack53
Accommodation, cafes and restaurants
1 Includes impaired exposures. 2 Percentage of portfolio TCE. 3 Fully secured: Secured loan to collateral value ratio ≤ 100%, Partially secured: Secured loan to collateral value ratio > 100%, but < 150%, Unsecured: Secured loan to collateral value ratio
> 150%, or no security held.
Credit quality
Mar-22Sep-22Mar-23
Total committed
exposure (TCE) ($bn)
9.910.210.2
Lending ($bn)8.18.48.8
As a % of Group TCE0.850.860.84
% of portfoliograded
as stressed
1,2
7.646.764.76
% of portfolio
impaired
2
0.680.560.60
Portfolio security composition
3
(TCE) (%)Portfolio by sub-sector (TCE) (%)
74
22
4
Fully secured
Partially secured
Unsecured
Portfolio security composition
3
(TCE) (%)Portfolio by sub-sector (TCE) (%)
Mar-22Sep-22Mar-23
TCE ($bn)11.211.511.9
Lending ($bn)6.87.17.3
As a % of Group TCE0.960.970.97
% of portfoliograded
as stressed
1,2
5.465.376.24
% of portfolio
impaired
2
0.800.780.81
Construction

Sectors in focus:
Australian agriculture; mining
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack54
Mining portfolio by sub-sector (TCE) (%)
Mining (incl. oil and gas)
1 Includes impaired exposures. 2 Percentage of portfolio TCE.
Credit quality
Mar-22Sep-22Mar-23
TCE ($bn)8.47.98.7
Lending ($bn)3.43.12.8
As a % of Group TCE0.720.660.71
% of portfoliograded as stressed
1,2
0.600.622.42
% of portfolio in impaired
2
0.140.110.09
32
30
16
11
5
6
Oil and gas
Metal ore
Iron ore
Mining services
Coal
Other
Australian agriculture portfolio by sub-sector (TCE) (%)
Mar-22Sep-22Mar-23
TCE ($bn)13.413.714.3
Lending ($bn)10.611.311.3
As a % of Group TCE1.161.161.17
% of portfolio graded as stressed
1,2
1.962.732.48
% of portfolio in impaired
2
0.400.370.36
31
27
10
9
5
5
4
3
2
2
2
Grain
Beef & sheep
Horticulture
Dairy
Cotton
Services to agriculture
Viticulture
Fishing & aquaculture
Other
Forestry & logging
Poultry
Australian agriculture

49
23
28
Personal and household
goods retailing
Motor vehicle retailing and
services
Food retailing
Sectors in focus:
Retail trade; residential aged care and retirement
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack55
Credit quality
Retail trade
Mar-22Sep-22Mar-23
TCE ($bn)12.511.912.4
Lending ($bn)8.38.67.8
As a % of Group TCE1.081.001.01
% of portfoliograded as stressed
1,2
3.693.793.46
% of portfolio impaired
2,3
0.790.840.78
Retail trade exposure by sub-sector (TCE) (%)
Residential aged care and retirement
Mar-22Sep-22Mar-23
TCE ($bn)3.73.12.9
Lending ($bn)1.61.71.6
As a % of Group TCE0.320.260.23
% of portfoliograded as stressed
1,2
2.033.172.79
% of portfolio impaired
2
0.760.610.05
48
52
Residential aged care
Retirement
Residential aged care and retirement exposure by sub-sector (TCE) (%)
1 Includes impaired exposures. 2 Percentage of portfolio TCE. 3 Impaired ratio for Mar-22 and Sep-22 restated, reflecting data review.

0.3
0.1
0.3
0.2
0.1
0.1
0.1
0.1
0.1
0.2
0.2
0.2
0.3
3.0
2.9
2.2
1.6
1.5
1.3
1.9
3.3
3.1
2.6
2.0
1.8
1.5
2.2
Sep-18Sep-19Sep-20Sep-21Mar-22Sep-22Mar-23
Impaired90+ day past due and not impairedWatchlist & substandard
New Zealand business exposures
56
1 Includes forestry and fishing.
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
Credit quality
Business TCE by industry sector %
Business stressed exposures as a % of business TCE
Chart may not add due to rounding.
29
16
14
11
6
5
5
4
3
3
2
1
1
Finance & insuranceAgriculture, forestry and fishing
PropertyGovernment administration & defence
UtilitiesTrade
ManufacturingServices
Transport & storageProperty & business services
ConstructionAccommodation, cafes & restaurants
Other industries
Increase in stress from agriculture
1
,
commercial property and trade
reflecting higher interest rates

New Zealand business exposures
57
Sectors in focus
1 Includes forestry and fishing. 2 Includes impaired exposures. 3 Percentage of portfolio TCE. 4 Dairy is a sub-set of agriculture and is included in the agriculture table.
Credit quality
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
Agriculture
1
Mar-22Sep-22Mar-23
TCE (NZ$bn)10.610.510.3
Agriculture as a % of total TCE7.47.27.0
% of portfoliograded as ‘stressed’
2,3
6.14.86.5
% of portfolio impaired
3
0.080.030.08
Mar-22Sep-22Mar-23
TCE (NZ$bn)8.89.49.5
Property as a % of total TCE6.26.56.4
% of portfoliograded as ‘stressed’
2,3
1.91.73.0
% of portfolio impaired
3
0.060.060.06
Commercial property
23
22
22
16
15
2
RetailIndustrial
CommercialCorporate
ResidentialOther
NZ$9.5bn
Mar-22Sep-22Mar-23
TCE (NZ$bn)6.36.36.3
Dairy as a % of total TCE4.44.34.2
% of portfoliograded as ‘stressed’
2,3
6.24.14.7
% of portfolio impaired
3
0.120.040.04
Dairy
4
Commercial property TCE by segment (%)

Australian consumer finance
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack58
Australian consumer finance portfolio
1
Australian consumer finance 90+ delinquencies (%)
Australian consumer finance portfolio ($bn)Credit card accounts paying minimum repayment (%)
3
1 Does not include margin lending. 2 Loans to customers through dealers in Specialist Businesses. These loans will be run-down over their contractual term. 3 Minimumrepayment over at least six consecutive months. Minimum repayment defined as
<=5% of each months statement cycle balance.
Credit quality
6.4
2.4
4.0
12.8
6.4
2.3
3.0
11.7
6.5
2.3
2.2
11.0
Credit cardsPersonal loansAuto loans
(consumer)
Total consumer
finance
Mar-22Sep-22Mar-23
Mar-22Sep-22Mar-23
Lending ($bn)12.811.711.0
As a % of Group loans1.81.61.5
30+ day delinquencies(%)3.062.792.98
90+ day delinquencies(%)1.641.601.58
90+ day delinquencies down 2bps over the period, reflecting 12bps improvement in
portfolio, partly offset by 10bps from contraction in portfolio (mostly auto loans in
run-off)
2
In run-off
0.71
2.84
2.85
0.0
1.0
2.0
3.0
4.0
5.0
6.0
Mar-20Sep-20Mar-21Sep-21Mar-22Sep-22Mar-23
Credit cardsPersonal loansAuto loans
(consumer - in run off)
0.0
2.0
4.0
6.0
8.0
Mar-20Sep-20Mar-21Sep-21Mar-22Sep-22Mar-23

Australian mortgage delinquencies
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack59
1 Financial hardship assistance is available to customers experiencing temporary financial difficulty, including changes in income due to illness, a relationship breakdown or natural disasters. Hardship assistance often takes the form of a reduction or
deferral of repayments for a short period. Customer requesting financial hardship assistance must provide a statement of financial position and an assessment is made regarding the customer’s eligibility.
Mortgage credit quality
Australian mortgage delinquencies (%)
Australian mortgage portfolio
Mar-19
Pre COVID-19
Mar-22Sep-22Mar-23
90+ day delinquencies (bps):
Total portfolio inc. impaired
mortgages
82887573
Owner occupied loans
89857369
Investment property loans
68897575
Principal & interest loans
83907874
Interest only loans
75664847
30+ day delinquencies
total portfolio(bps)
159147121139
Mar-19
Pre COVID-19
Mar-22Sep-22Mar-23
Customers in hardship
1
including 6mth serviceability period
(by balances, bps)
64755350
Consumer properties in possession
(number)
482201224227
Impaired mortgages
(by balances, bps)
N/A556
Australian mortgage 90+ day delinquencies by State (%)
0.0
1.0
2.0
3.0
4.0
Mar-18Mar-19Mar-20Mar-21Mar-22Mar-23
NSW/ACTVIC/TASQLD
WASA/NTALL
1.39
0.73
0.61
0.0
1.0
2.0
3.0
4.0
Mar-18Mar-19Mar-20Mar-21Mar-22Mar-23
30+ day delinquencies
90+ day delinquencies
90+ dpd excl. 6 months serviceability hold-out period
COVID-19
deferrals

Australian mortgage portfolio composition
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
1 Flow is new mortgages settled in the 6 months ended 31 March 2023. 2 Includes amortisation. Calculated at account level, where split loans represent more than one account. 3 Mar-22 re-stated for classification changes between ‘On time’ and ‘<1
month’ ahead categories. Loans ahead on payments exclude equity/line of credit products as there are no scheduled principal payments. 4 Mortgage loss rates for March balances are annualised, based on losses for the 6 months. Mortgage loss rates
for September are actual losses for the 12 months ending.
60
Mortgage credit quality
Australian mortgage portfolio
Mar-22
balance
Sep-22
balance
Mar-23
balance
1H23
flow
1
Total portfolio ($bn)
458.3
467.6472.749.7
Owner occupied (OO) (%)
64.8
65.866.469.3
Investment property loans (IPL) (%)
33.4
32.632.230.7
Portfolio loan/line of credit (LOC) (%)
1.7
1.61.4-
Variable rate / Fixed rate (%)
60/40
63/3767/3395/5
Interest only (I/O) (%)
14.2
13.513.315.7
Proprietary channel (%)
52.7
51.851.546.4
First home buyer (%)
10.4
10.19.65.8
Mortgage insured (%)
15.4
14.714.29.4
Mar-22Sep-22Mar-23
1H23
flow
1
Average loan size
2
($’000)280286
292
445
Customers ahead on repayments
including offset account balances(%)
By accounts7474
74
By balances
3
6868
69
Mortgage losses net of insurance
($m, for 6 months ending)
282
11
Annual mortgage loss rate
4
(bps)1.20.6
0.5
47
49
55
56
57
58
60
64
66
66
45
45
39
40
39
39
37
34
33
32
Sep-
14
Sep-
15
Sep-
16
Sep-
17
Sep-
18
Sep-
19
Sep-
20
Sep-
21
Sep-
22
Mar-
23
OOIPL
Owner occupied / Investment property loans as a %
of the Australian mortgage portfolio
50
46
40
35
31
27
23
21
18
16
14
14
13
Mar-
17
Sep-
17
Mar-
18
Sep-
18
Mar-
19
Sep-
19
Mar-
20
Sep-
20
Mar-
21
Sep-
21
Mar-
22
Sep-
22
Mar-
23
Interest only loans as a % of the Australian mortgage
portfolio

Australian mortgage portfolio
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack61
Mortgage credit quality
1 Six months to.
5
8
10
12
21
36
8
3
4
6
7
15
47
17
<75k75k to 100k100k to
125k
125k to
150k
150k to
200k
200k to
500k
>500k
Owner OccupiedInvestment Property
Applicant gross income band
(1H23 drawdowns, % by approved limits)
By product and repayment type (%)
2
11
23
3
62
2
10
22
3
63
2
10
22
3
64
0
12
19
3
66
LOCIPL-I/OIPL-P&IOO-I/OOO-P&I
Mar-22 (Portfolio)Sep-22 (Portfolio)Mar-23 (Portfolio)1H23 Flows
Chart does not add to 100 due to rounding.
Debt-to-income >=6x at origination (%)
18.0
17.5
21.1
27.3
28.9
22.7
15.5
17.7
17.6
18.1
20.6
24.4
21.9
16.4
Mar-20Sep-20Mar-21Sep-21Mar-22Sep-22Dec-22
Major banks ex WestpacWestpac
By State (%)
41
29
15
8
7
41
29
15
8
7
41
29
15
8
7
39
31
16
8
7
NSW/ACTVIC/TASQLDWASA/NT
Mar-22 (Portfolio)Sep-22 (Portfolio)Mar-23 (Portfolio)1H23 Flows
Source: APRA, Westpac.
Sound fundamentals maintained
1

28
20
37
11
4
0
20
16
44
12
7
1.3
62
15
13
7
2
0.7
0.8
0
10
20
30
40
50
60
70
80
90
100
0<=6060<=7070<=8080<=9090<=9595<=100>100
1H23 drawdowns LVR at origination
Portfolio LVR at origination
Portfolio dynamic LVR
Australian mortgage portfolio
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack62
Australian housing loan-to-value ratios (LVRs) (%)
1 Dynamic LVR is the loan-to-value ratio taking into account the current loan balance, changes in security value, offset accountbalances and other loan adjustments. Property valuation source CoreLogic. 2 Weighted average LVR calculation considers
size of outstanding balances. 3 Average LVR of new loans is on rolling 6 months. 4 In 2H21 Westpac Lender’s Mortgage Insurance Limited was sold to Arch Capital Group. Westpac has entered into a 10-year exclusive supply agreement for Arch to
provide lenders mortgage insurance to the Group. 5 Includes loans where LMIapplies to >70% LVR loans, for example, single industry towns.
Mortgage credit quality
Australian mortgage portfolio LVRs
Mar-22
balance
Sep-22
balance
Mar-23
balance
Weighted
averages
2
LVR at origination (%)737372
Dynamic LVR
1
(%)474951
LVR of new loans
3
(%)717068
Serviceability assessment creates a buffer for borrowers
Chart does not add to 100 due to rounding.
N/A
1
Australian mortgage portfolio by insurance profile
4
(%)
14
6
80
Insurance not required
(Low risk profile including loans <80% LVR)
Not insured >80% LVR
(Special package policy applies for certain
professionals and Westpac staff)
Insured
5
(>80% LVR)
LVRs remain low
•Loans are assessed at the higher of
−The customer rate, including any life-of-loan discounts, plus the
serviceability buffer of 3.0% (up from 2.5% in October 2021)
or
−The minimum assessment rate, called the “floor rate”, currently
5.05%
•Interest only (I/O) loans: Assessed based on the residual principal
and interest (P&I) term using the applicable P&Irate, plus a 3.0%
buffer
•Fixed rate loans : Assessed on the variable rate to which the loan
will revert after the fixed period, plus a 3.0% buffer

Australian mortgage portfolio
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack63
1 Customer loans ahead on payments exclude equity/line of credit products as there are no scheduled principal payments. Includesmortgage offset accounts. ‘Behind’ is more than 30 days past due. ‘On time’ includes up to 30 days past due.
Mar-22 re-stated for classification changes between ‘On time’ and ‘<1 month’ ahead categories. 2 Includes RAMS from Sep-20 onwards.
Mortgage credit quality
36
37
39
39
40
41
42
46
48
51
53
53
54
Mar-17Mar-18Mar-19Mar-20Mar-21Mar-22Mar-23
Linked to I/O mortgagesLinked to P&I mortgages.
Australian home loan customers ahead on repayments
1
(% by accounts)
Offset account balances
2
($bn)
1
31
19
15
11
23
1
30
19
16
12
22
1
30
19
16
12
21
BehindOn time< 1 mth< 6 mths>6 mths <2yrs>2 Yrs
Mar-22Sep-22Mar-23
Australian home loan customers ahead on repayments
1
(% by balances)
8
8
9
11
13
14
11
9
8
19
19
19
Mar-22Sep-22Mar-23
Loans ‘on time’ and <1 month ahead (% of balances)
49
49
48
Investment property loans –
incentive is to keep
repayments high for tax
purposes
Accounts opened in the last
12 months
Loans with structural
restrictions on repayments
e.g. fixed rate
Residual – less than 1
month repayment buffer
32
12
15
16
25
1
>2yrs
>6mths <2yrs
<6 mths
< 1 mth
On time
Behind
Chart does not add due to rounding
Mortgage buffers largely unchanged in 1H23
Chart does not add due to rounding
Chart does not add due to rounding

0.6
0.6
0.3
0.3
1.5
1.7
1.0
0.9
1.2
1.4
0.8
0.7
Sep-22Mar-23Sep-22Mar-23
FixedVariableTotal
30+ Delinquency 90+ Delinquency
Australian mortgage portfolio
Mortgage credit quality
19
20
19
55
40
21
22
9
7
Mar-22Mar-23Mar-24Mar-25>Sep-25
Australian fixed rate mortgage expiry
schedule ($bn, every 6 months to)
Expired (actuals)
2
Yet to expire
56
34
8
2
1
64
25
7
2
1
61
28
7
2
1
0-60>60-80>80-90>90-100>100
FixedVariableTotal
Australian mortgage portfolio by
dynamic LVR
3
(%)
1 On a balance weighted basis. 2 Scheduled expiry for 6 months to March 2023 was $21bn. Actual expiry $19bn. 3 Dynamic LVR is the loan-to-value ratio taking into accountthe current loan balance, changes in security value, offset account balances
and other loan adjustments. Property valuation source CoreLogic.
22
25
19
34
20
22
18
40
21
23
18
38
<$100k>$100k -
$150k
>$150k -
$200k
>$200k
FixedVariableTotal
Australian mortgage portfolio by
income band (%)
Australian mortgage portfolio
arrears (%)
•Most fixed rate borrowers are well placed
to manage higher repayments
−Borrower characteristics similar to
variable rate portfolio
−Slightly more first home buyers and
owner occupiers in the fixed rate
portfolio versus variable rate portfolio,
leading to moderately lower income and
higher dynamic LVRs
−49% also have a variable rate loan
•Average interest rate step up for fixed
accounts expiring in 2H23 approximately
3.7%
1
Fixed rate mortgage roll-off closely managed
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack64

Mortgages originated between
Aug-19 and Jun-22
3
(42% of the portfolio)
Dynamic LVR with no LMI
Analysis of minimum contractual
repayment at March 2023
>80%
Of which
>85%
Of which
>90%
Repayment buffer<12months
(Total: $152bn)
$13.3bn$7.0bn$3.4bn
Of which repayment buffer
<3months (Total: $130bn)
$12.0bn$6.3bn$3.1bn
Australian mortgage portfolio
Mortgage credit quality
Australian mortgage hardship
4
balances
(% of portfolio)
0.50
0.00
0.50
1.00
1.50
2.00
2.50
Sep-
19
Dec-
19
Mar-
20
Jun-
20
Sep-
20
Dec-
20
Mar-
21
Jun-
21
Sep-
21
Dec-
21
Mar-
22
Jun-
22
Sep-
22
Dec-
22
Mar-
23
Non-COVID-19 supportCOVID-19 support.
Percentage increase in variable-rate repayment following
interest rate changes (accounts at 31 Mar 23)
1
30
14
34
13
10
23
8
12
41
17
No change>0%<20%20%-40%40%-60%>60%
Originated before Aug-19Originated between Aug-19 and Jun-22
•Increase in repayments greatest for those loans originated
between August 2019 and June 2022, during historically low
interest rate period
•$3.1bn in loans where repayment buffer is less than 3 months and
dynamic LVR is above 90%
•Providing support to customers in difficulty through hardship
program
−Currently 0.5% of total mortgage balances in hardship, mostly
due to reduced income
1 Captures accounts active in Jun-22 and Mar-23. Shows the increase based on the actual repayment made in Jun-22 and the contractual mortgage rates at a cash rate of 3.6% assuming rates changed by an equivalent amount. Analysis assumes an
I/O mortgage remains an I/O mortgage. 2 Analysis based on minimum repayments. Includes fixed and variable rate mortgages. ​3 Excludes equity/line of credit products as there are no scheduled principal payments. 4 Financial hardship assistance is
available to customers experiencing temporary financial difficulty, including changes in income due to illness, a relationship breakdown or natural disasters. Hardship assistance often takes the form of a reduction or deferral of repayments for a short
period. Customer requesting financial hardship assistance must provide a statement of financial position and an assessment ismade regarding the customer’s eligibility.
Identifying and supporting customers at risk
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack65
Accounts >12 months
ahead
2,3
: 31%
Accounts >12 months
ahead
2,3
: 44%

Australian mortgage portfolio underwriting
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack66
Credit policy atMarch 2023
1 HEM is the Household Expenditure Measure, produced by the Melbourne Institute.
Mortgage credit quality
Income
•Verified via payslips, tax returns or salary credits, with other supporting documentation such as
PAYG payment summaries or ATO Statements (minimum standards apply)
•Shading of at least 20% applies to less certain income sources i.e. overtime, bonuses
Credit Score &
Credit Bureau
•Bespoke application scorecards segmented by new and existing customers
•Credit and score override rates tracked and capped
•Credit bureau checks required
Expenses
•Assessed as the higher of a borrower’s HEM
1
comparable expenses or HEM plus any expenses
that are not comparable to HEM (e.g. private school fees, life insurance)
•HEM is applied by income bands, post settlement postcode location, marital status and
dependants
•17 expense categories used, aligned with Melbourne Institute guidelines and LIXI standards
Serviceability
assessment
•For serviceability assessment, loans are assessed at the higher of:
-The customer rate, including any life-of-loan discounts, plus the serviceability buffer
of 3.0%, up from 2.50% in October 2021, or
-The minimum assessment rate, called the “floor rate”, currently 5.05%, down from
October 2020, previously 5.35%
•For I/O loans, serviceability is assessed on a P&I basis over the residual term
•Fixed rate loans assessed on the variable rate to which the loan will revert after fixed period
•All existing customer commitments are verified
•Review Westpac Group accounts and Comprehensive Credit Reporting (CCR) to identify
customer commitments
•Limits apply to higher debt-to-income lending; above 7x referred for manual credit assessment
where LVR>80
•Credit card repayments assessed at 3.8% of limit or balance whichever is higher
Genuine savings
deposit
requirements
•Minimum 5% proof of genuine savings for higher LVR loans (typically LVR >90%).
Any Home Owner Grants are not considered genuine savings
Security
•LVR restrictions apply depending on location, property value and nature of security
•Restrictions on high-density apartments based in postcode defined areas, generally capital city
CBD’s and properties in towns heavily reliant on a single industry, e.g. mining, tourism
LMI
•Mortgage insurance for higher risk loans, such as LVRs >80%. Special package policy waivers
apply for certain professionals and Westpac Group staff
Australian mortgage portfolio by
year of origination (% of total book)
8
2
3
4
5
5
6
6
6
9
21
22
5
Pre-20122014201720202023
Calendar year
Chart does not add due to rounding

Australian mortgage portfolio
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack67
Scheduled I/O term expiry
2
(% of total I/O loans)
Interest only (I/O) lending by dynamic LVR
1
and income
band (% of total I/O lending)
1 Dynamic LVR is the loan-to-value ratio taking into account the current loan balance, changes in security value, offset accountbalances and other loan adjustments. Property valuation source CoreLogic. 2 Based on outstanding balance. Excludes line
of credit loans, I/O loans without date (including bridging loans and loans with construction purpose) and I/O loans that shouldhave switched to P&I but for the previously announced mortgage processing error. 3 Includes amortisation. Calculated at
account level where split loans represent more than one account. 4 Customer loans ahead on payments exclude equity/line of credit products as there are no scheduled principal payments.
Mortgage credit quality
7
3
1
24
13
5
24
15
8
55
31
15
<=60%60%<=80%>80%
Dynamic LVR bands (%)
<$100k
$100k – $250k
>$250k
Applicant gross income bands
Chart does not add due to rounding.
66
24
6
2
1
1
1
2
3
4
5
6+
Investment property portfolio by number of properties
per customer (%)
Investment property lending (IPL) portfolioMar-22Sep-22
Mar-23
Investment property loans ($bn)153152
151
Weighted
averages
LVR of IPL loans at origination (%)7171
71
LVR of new IPL loans in the period(%)7070
69
DynamicLVR
1
of IPL loans (%)4749
51
Average loan size
3
($’000)321326
330
Customers ahead on repayments
including offset accounts
4
(%)
6160
60
90+ day delinquencies (bps)8975
75
Annualised loss rate (net of insurance claims) (bps)21
0.8
16
19
13
14
18
20
0.3
0<1 Yr
1<2 Yrs2<3 Yrs3<4 Yrs4<5 Yrs
5<10 Yrs
10 Yrs+
I/O portfolio $62bn (13% of portfolio)
at 31 March 2023
Chart does not add due to rounding.
Interest only and investment property lending

New Zealand consumer portfolio
68
Mortgage 90+ day delinquencies
1
(%)
Unsecured consumer 90+ day
delinquencies
1
(%)
Mortgage portfolio LVR
2
(% of portfolio)
Mortgage loss rates (%)
1 In May 2019 we made changes to the reporting of customers in hardship to align to the method used by APRA. 2 LVR based on current loan property value at latest credit event.
New Zealand credit quality
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
1.13
Mortgage portfolioSep-22Mar-23
Total portfolio (NZ$bn)
63.865.2
Owner occupied (%)
73.373.7
Investment property loans
(IPL) (%)
26.726.3
Broker introduced (%)
50.151.1
Proprietary channel (%)
49.948.9
Fixed/ variable split (%)
90/1091/9
Interest only (I/O) (%)
17.917.0
Origination LVR
80–90% (%)
8.68.6
Origination LVR
>90% (%)
2.32.6
Mortgage 90+ day
delinquencies (%)
0.220.29
Mortgage 30+ day
delinquencies (%)
0.470.69
Unsecured consumer
portfolio (NZ$bn)
1.21.2
53%
21%
19%
5%
2%
0<=6060<=7070<=8080<=9090+
93% of mortgage portfolio has
an LVR less than 80%
0
0.00
0.01
0.02
0.03
0.04
0.05
1H151H171H191H211H23
0.29
0.0
0.1
0.2
0.3
0.4
0.5
0.6
Mar-15Mar-17Mar-19Mar-21
Mar-23
0.0
1.0
2.0
3.0
Mar-15Mar-17Mar-19Mar-21Mar-23

Non-financial risks

CORE program
70
•Customer Outcome Risk Excellence
program (CORE) activities progressing
and targeted to be complete by
end of 2023
2
•Addresses issues raised by
enforceable undertaking with APRA
signed December 2020
•Strengthening risk governance,
improving accountability and enhancing
risk culture across the Group
•306 of 353
3
activities complete
•Quarterly independent assurance
•Westpac program status Amber
4
at
March 2023
−Red during February 2023
CORE activities progress
1
1 At 31 March 2023. Completed activities finalised by Westpac. Activities may still be subject to Promontory Australia review. 2Westpac will continuously improve its risk governance, risk management practices and culture beyond the end of the CORE
program. 3 Activities increased from 350 to 353 in 1H23. 4 Program status rating changes with the identification and resolution of issues, most recently: Amber – March 2023; Green – September 2022;
Amber – March 2022.
202120222023
MarJunSepDecMarJunSepDecMarJunSepDec
100% of Embedactivities
targeted to be complete
Mar-23
Design
Sep-21
Sep-22
Implement
Embed
32%56%6%
87%
95%
40%
76%
Non-credit risks
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
87% of activities complete
1

CORE program
1 Employee survey. 2 No. of open issues. 3 Internal rating out of 5. 4 No. of transactions complete - # of business sales completed when legal ownership passes from Westpac to the buyer. 5 Includes Westpac NZ Wealth Advisory and the SFT of BT
Superannuation. 6 Not 2nd or 3rd lines %.
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
67%
77%
Sep-20Mar-23
Issues raised by first line
risk management
6
233
103
Sep-20Mar-23
High-rated issues
2
2.64
4.36
Sep-20Mar-23
Improved data quality
management
3
89%
94%
Sep-20Mar-23
“Clear in how expected to
manage risks”
1
69%
76%
Sep-20Mar-23
“People constructively
challenge...”
1
10.8%
10.7%
Sep-20Mar-23
Key controls requiring
improvement
63%
72%
Sep-20Mar-23
“Jobs...are designed to have
clear objectives and
accountabilities...”
1
“...organisational structure
helps create clear
accountability”
1
0
9
Sep-20Mar-23
Progress of planned non-
core business exits
4
Non-credit risks
Target states
We are a well-run
business where
risk is actively
managed
1
A simplified
organisational
construct with
clear
accountabilities
Three lines of
defence is
understood and
embedded
Our people
understand risks
and proactively
manage them
We’re known for
execution
excellence and
getting it done
2
3
4
5
Measures of progress
5
71
Strengthening risk governance, accountability and risk culture

Our cyber security protection
72
Continued investment in cyber security
Non-credit risks
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
Employees
We have controlsaround who we hire;
how their access is granted; and
monitoringof system use
Customers
Dedicated controls that seek to protect
customers from fraud, including multi-
factor authentication
Suppliers
Subject to security reviews, limited access
to our systems and data, and continual
performance monitoring
Core security
Core security capabilities across all
systems, e.g. malware prevention, firewalls,
email security
System security
Integrated approach to security of our
systems, e.g. design reviews, patching and
secure development
Monitoring, intelligence and networks
24/7 monitoring for indications of attacks
and control weaknesses. Threat detection
supported by cyber threat intelligence and
information sharing partnerships
Our cybersecurity controls
Monitoring, intelligence and networks
System Security
Data
Customers
Core Security
Consistently invested in cyber
security for the last decade
FY15FY16FY17FY18FY19FY20FY21FY221H23
New investment in periodCumulative prior investment
Targeted ransomware
Espionage & critical
infrastructure attacks
Significant sources of threat from

(‘000’s)
16.9
0
5
10
15
20
Mar-20Mar-21Mar-22Mar-23
Digital banking security initiatives
73
Dynamic CVC users
3
Helping protect customers and reducing fraud and scams
1 Monthly average for March 2023. 2 Monthly card transactions blocked. These blocks represent merchants that have historically been shown to deceive customers with exceptionally poor quality or non-existent goods. Less than 1% of customers insist
that transactions should be completed. The amount represents the $-value of the transaction that customers did not lose through the scam. Each card declined is only counted once per day (i.e. if a card has multiple declines in the same day it is only
counted once). 3 Monthly average.
Non-credit risks
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
Biometric fraud detection
Better customer experience,
reduced identity theft
Westpac Verify alerting customers
to potential scams including account
name mismatch
Advanced customerbehavioural tools
to combat remote access scams,
including Voice scam detection
Push notifications on account activity
Faster alerts support the reduction
in losses
Real-time blocking of potentially
questionable online merchants
Saved $131m for 1.54m customer
incidences since January 2022
Dynamic CVC
Used daily by ~17,000 customers
1
, ~80%
lower fraud vs cards with static CVC
Real-time blocking of potential online shopping scams
2
3
4
4
5
8
9
15
12
12
14
14
12
15
0
50
100
150
200
250
0
2
4
6
8
10
12
14
16
18
20
Mar-22May-22Jul-22Sep-22Nov-22Jan-23Mar-23
Declined card transactions ($m) (lhs)Declined card transactions ('000's) (rhs)

Capital, funding
and liquidity

11.29
82
62
7
812.28
(45)
(18)
Sep-22Net profit
excluding
Notable
Items
2H22
dividend net
of DRP
Basel IIIRWACapital
deductions
and other
items
FX
translation
impacts
Divest-
ments
Mar-23
CET1 capital ratio 12.3%
Level 2 CET1 capital ratio movements (%, bps)
1 The dividend reinvestment plan (DRP) for the 2022 final dividend was satisfied by the issue of new shares. 2 APRA’s revisedcapital framework effective 1 January 2023. 3 Internationally comparable methodology references the ABA study on the
comparability of APRA’s new capital framework and finalised reform released on 10 March 2023.
Capital, funding and liquidity
75
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
Key capital ratios (%)
Mar-22Sep-22Mar-23
Level 2 CET1 capital ratio 11.311.312.3
Additional Tier 1 capital ratio2.12.12.2
Tier 1 capital ratio13.413.414.5
Tier 2 capital ratio4.35.05.3
Total regulatory capital ratio17.718.419.8
Risk weighted assets
(RWA)($bn)
460478453
Leverage ratio 5.65.65.5
Level 1 CET1 capital ratio11.211.312.5
Internationally comparable ratios
3
Leverage ratio
(internationally comparable)
6.16.05.9
CET1 capital ratio
(internationally comparable)
17.417.618.1
1
3
Above target operating range of 11.0% – 11.5%
2

460.0
477.6
3.6
2.0
5.9
1.1
452.9
(23.7)
(1.0)
(2.4)
(8.0)
(2.2)
Mar-22Sep-22Basel IIICredit qualityLendingCounter-
party credit
and MTM risk
FX translationMarket riskIRRBBOperational
risk
OtherMar-23
Risk weighted assets
76
Risk weighted assets
1
(RWA) ($bn)
IRRBB RWA
1
($bn)
1 Chart may not add due to rounding. 2 APRA’s revised capital framework effective 1 January 2023. 3 Mark to market (MTM).
Capital, funding and liquidity
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
(4)
8
21
13
13
16
17
17
2
3
5
5
11
27
43
35
0.52
2.60
4.05
3.41
Sep-21Mar-22Sep-22Mar-23
Embedded loss/(gain)Repricing and yield curve riskOptionality and basis risk3y Swap rate (in %)
Down $24.7bn or 5%
Credit risk down $21.5bn
1
or 6%
2
3
Exposure changes and
higher market volatility
Annual update based on
APRA’s Standardised
Measurement Approach
See below

Credit RWA
1
($bn)
APRA’s revised capital framework
77
Impact on Westpac
•APRA’s revised capital framework effective on 1 January 2023
•Includes a revised CET1 requirement of 10.25% and changes to
credit RWA
•Required capital broadly unchanged
•Westpac seeks to operate with a CET1 capital ratio of between
11.0% to 11.50% in normal operating conditions
Changes in credit RWA include
•Property: Closer alignment to international standards. Greater
use of internal modelling and a reduction in exposure calculation
reducing RWA
•Mortgages: Revisions to models including greater risk sensitivity
for higher risk segments
•New Zealand: Closer alignment to RBNZ requirements
increasing RWA
363.9
0.5
1.9
0.7340.2
(18.7)
(8.1)
31-Dec-22Property financeMortgagesBusiness lendingNew ZealandOther01-Jan-23
Credit RWA reduced by $23.7 billion
1 Chart may not add due to rounding. Day-1 impact of APRA’s revised capital framework effective 1 January 2023.
Capital, funding and liquidity
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
Down $23.7bn or 7%

4.2
2.2
6.2
5.2
0.9
1.4
2.2
3.3
3.0
12.4
FY19FY20FY21FY221H232H23FY24FY25FY26FY27FY28>FY28
1.4
1.7
1.7
1.5
1.8
1.9
3.6
FY23FY24FY25FY26FY27FY28FY29>FY29
AUDUSD
Additional Tier 1 (AT1) and Tier 2 capital
78
Westpac Tier 2 profile
3,4
(notional amount, A$bn)
AT1 and Tier 2 capital ($bn)Westpac AT1 profile
1,4
(notional amount, A$bn)
1 FX at31 Mar-23. AT1 securities profiled to the first optional redemption date. USD AT1 Securities optional redemption date is 21 Sep-27. Westpac Capital Notes 7 optional conversion, redemption or transfer date is 22 Mar-27. 2 Represents AUD
equivalent notional amount using spot FX translation at31 Mar-23. 3 Excludes Westpac New Zealand Limited (RBNZ Tier 2 does not count for APRA LAC requirements).Represents AUD equivalent notional amount using spot FX translation at date of
issue for issuance and spot FX translation at31 Mar-23 for maturities. Securities in callable format profiled to first call date. Securities in bullet format profiled to maturity date.4 No redemption prior to the maturity date may be made without the prior
written approval of APRA. Approval is at the discretion of APRA and may or may not be given. There can be no certainty that APRAwill provide its prior written approval for any such redemption. Holders should not expect that APRA’s approval will be
given for any redemption if requested by Westpac. Any redemption does not imply or indicate that Westpac will in future exerciseany right it may have to redeem any other outstanding regulatory capital instruments issued by Westpac. Any such
redemption would also be subject to APRA’s prior written approval (which may or may not be given).
Westpac Tier 2 capital (%)
Capital, funding and liquidity
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
77
23
Callable
Bullet
71
13
4
7
3
2
By format
3
(notional amount)
By currency
3
(notional amount)
WCN8
USD
AT1
WCN6
WCN5
WCN7WCN9
USDEUR
AUD DomesticJPY
AUD EMTNSGD
4
2
10
10
10
20
24
24
Mar-22Sep-22Mar-23
AT1Tier 2
IssuanceFirst optional redemption date
4
/Maturities
2H23 issuance expected to be approx.
$2-3 billion subject to market conditions

Loss-absorbing capacity and capital securities
AT1 and Tier 2 securitiesLoss-absorbing capacity (LAC)
•Australian D-SIBs are required to increase
Total Capital to meet APRA’s LAC
requirements
•This is expected to be met through Tier 2
Capital
•Westpac is well progressed – Tier 2 capital
5.3% at 31 March 2023
Tier 2 and LAC requirements (%)
79
Capital, funding and liquidity
Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack
Loss
absorption
•Primary method of loss absorption is contractual conversion into ordinary
shares
•No Westpac AT1 or Tier 2 securities have write-off as the primary method
of loss absorption
•APRA’s prudential requirements in APS 111 permit a ranking or order of
conversion and any ranking must provide for AT1 to be fully converted or
written-off before Tier 2
Conversion
triggers
•CET1 trigger event (AT1 only)
−Level 1 or Level 2 CET1 capital ratio falls to or below 5.125%
•Point of Non-Viability (PONV) trigger event (AT1 and Tier 2)
−PONV is where APRA notifies Westpac in writing that:
conversion of AT1 and Tier 2 capital instruments of Westpac is
necessary, because without it, Westpac would become non-viable; or
a public sector injection of capital, or equivalent support, is necessary,
because without it, Westpac would become non-viable
−PONV is at APRA’s discretion
Conversion
mechanics
•Automatic conversion of the face value (or percentage of the face value) of
each instrument into a variable number of ordinary shares, based on the
face value of each note and a 5 day VWAP prior to the trigger event,
including a 1% discount. The conversion number is subject to a maximum
conversion number (based on 20% of the share price at the time of issue)
•Write-off is a backstop only if conversion does not occur within 5 days for
any reason
5.3
2.02.0
3.0
4.5
5.0
6.5
Westpac
March 2023
January 2024
Requirements
January 2026
Requirements
Tier 2LAC

Regulatory capital changes
ImplementationChangeDetails
Expected impact
on the Group’s
capital ratios
1 Jan 2024
CPS 190
Financial
Contingency
Planning
CPS 900
Resolution
Planning
APRA has released two draft prudential standards for consultation for banks to:
•Develop plans to respond to financial stress
•Prepare for resolution with limited adverse impacts on the community and
financial system, in the event of their failure
1 Jan 2025
1 Jan 2026
APS117 –
IRRBB
APS116 –
Market Risk
•Non-traded:currently standardising aspects of the calculation of IRRBB
capital to reduce volatility over time and variation between ADIs
•Traded: APRA is yet to commence consultation on Fundamental Review
of the Trading Book
1 Jan 2024 and
1 Jan 2026
Loss Absorbing
Capacity (LAC)
•APRA requires D-SIBs to lift the total capital ratio by 4.5% of RWA by 1
January 2026. This comprises of 3% to 16.75% by 1 January 2024 and a
further 1.5% to 18.25% by 1January 2026
Current and
finalised by
1 Jul 2028
RBNZ Capital
Review
•D-SIB total capital requirements increasing to 18% by 1 July 2028. Includes
Tier 1 capital requirement of 16% of which 13.5% must be CET1 capital
Capital, funding and liquidity
80Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack

Internationally comparable capital ratio reconciliation
1
1 Internationally comparable methodology references the ABA study on the comparability of APRA’s new capital framework and finalised reform released on 10 March 2023. 2 Internal ratings-based approach (IRB).
APRA’s capital requirements are more conservative than those of the Basel Committee on Banking Supervision (BCBS), leading tolower reported
capital ratios by Australian banks. The following details the adjustments and how Westpac’s APRA CET1 capital ratio aligns toaninternationally
comparable ratio
Capital, funding and liquidity
Westpac’s CET1 capital ratio (APRA basis)
12.3
Equity investments
Balances below prescribed threshold are risk weighted,compared to a 100% CET1 deduction under APRA’s
requirements
0.1
Deferred tax assets
Balances below prescribed threshold are risk weighted,compared to a 100% CET1 deduction under APRA’s
requirements
0.5
Capitalised expenses
APRA requires these items to be deducted from CET1. The BSBS only requires exposures classified as
intangible assets under relevant accounting standards to be deducted from CET1
0.6
Interestrate risk in the banking
book (IRRBB)
APRA requires capital to be heldfor IRRBB. The BCBS does not have a Pillar 1 capital requirement for IRRBB
1.3
RWA scaling factorAPRA applies a scaling factor to all Advanced IRB
2
credit RWAs. The BCBS does not apply this scalar
0.8
Property financeAPRA applies an additional scaling factor to property finance RWA. The BCBS does not apply this scalar.
0.3
Residential mortgages
APRA applies scaling factors to mortgage RWAs for higher risk segments such as interest only and investor
mortgages and applies a standardised risk weight to certain mortgages. The BCBS does not apply this treatment.
1.8
Non-retail Loss Given Default
(LGD)
Non-retail LGD’s under the Foundation IRB (F-IRB) and Advanced IRB approaches differ from the BCBS
(0.1)
New Zealand
APRA requires New Zealand RWAs to be largely calculated in accordance with the RBNZ rules. The RBNZ rules
are more conservative than BCBS.
0.5
Internationallycomparable CET1 capital ratio
18.1
Internationallycomparable Tier 1 capital ratio
21.1
Internationallycomparable total regulatory capital ratio
28.2
81Westpac Group 2023 Interim Results Presentation & Investor Discussion Pack