WNZL Disclosure Statement – 31 March 2023

Classification: PROTECTED
ASX
Release


19 May 2023

Westpac New Zealand Limited Disclosure Statement

Westpac Banking Corporation (“Westpac”) today provides the attached Westpac New
Zealand Limited Disclosure Statement for the six months ended 31 March 2023.








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

2
Westpac New Zealand Limited
This page has been intentionally left blank

Westpac New Zealand Limited 3
Contents
Glossary of terms4
Directors’ statement5
Financial statements
Income statement6Note 6 Loans14
Statement of comprehensive income6Note 7 Provision for expected credit losses14
Balance sheet7Note 8 Deposits and other borrowings20
Statement of changes in equity8Note 9 Debt issues20
Statement of cash flows9Note 10 Related entities20
Note 1 Financial statements preparation 10
Note 2 Net interest income11
Note 11 Fair values of financial assets and financial
liabilities
21
Note 3 Non-interest income12
Note 4 Operating expenses13
Note 12 Credit related commitments, contingent
assets and contingent liabilities
24
Note 5 Impairment charges/(benefits)13Note 13 Segment reporting24
Registered bank disclosures
i. General information26
ii. Additional financial disclosures28
v. Concentration of credit exposures to individual
counterparties
50
iii. Asset quality33vi. Insurance business50
vii. Risk management policies50
iv. Capital adequacy and regulatory liquidity ratios37
Conditions of registration51
Independent auditor’s review report52
Independent assurance report54

4 Westpac New Zealand Limited
Glossary of terms
Certain information contained in this Disclosure Statement is required by the Registered Bank Disclosure Statements (New Zealand Incorporated
Registered Banks) Order 2014 (as amended) (‘Order’).
In this Disclosure Statement, reference is made to:
Westpac New Zealand Limited (otherwise referred to as the ‘Bank’);
Westpac New Zealand Limited and its controlled entities (otherwise referred to as the ‘Banking Group’);
Westpac Banking Corporation (otherwise referred to as the ‘Ultimate Parent Bank’);
Ultimate Parent Bank and its controlled entities (otherwise referred to as the ‘Ultimate Parent Bank Group’); and
New Zealand Branch of the Ultimate Parent Bank (otherwise referred to as the ‘NZ Branch’).
Words and phrases not defined in this Disclosure Statement, but defined by the Order, have the meaning given by the Order when used in
this Disclosure Statement.
The Disclosure Statement also uses the following terms as defined below.
ANZSIC
Australia and New Zealand Standard Industrial
classification
FVOCI
Fair value through other comprehensive
income
AT1Additional Tier 1 capital
FXForeign exchange
BCBSBasel Committee on Banking Supervision
IAPIndividually assessed provisions
BPRsBanking Prudential Requirements
IRBInternal ratings-based
BPS ActBanking (Prudential Supervision) Act 1989LGDLoss given default
BS13Reserve Bank document ‘Liquidity Policy’LVRLoan-to-value ratio
CAPCollectively assessed provisions
NZ IFRS
New Zealand equivalents to International
Financial Reporting Standards
CB
Programme
The Bank’s Global Covered Bond Programme
PDProbability of default
EADExposure at defaultReserve BankReserve Bank of New Zealand
ECLExpected credit lossesRWARisk weighted assets
Fidelity LifeFidelity Life Assurance Company LimitedSPVSpecial purpose vehicle
Financial
statements
Condensed consolidated interim financial statementsWestpac Life
Westpac Life-NZ- Limited (renamed Fidelity
Insurance Limited on 28 February 2022)
FVISFair value through income statementWSNZLWestpac Securities NZ Limited

Directors’ statement
Westpac New Zealand Limited 5
Each Director of the Bank believes, after due enquiry, that, as at the date on which this Disclosure Statement is signed, the Disclosure Statement:
(a) contains all the information that is required by the Order; and
(b) is not false or misleading.
Each Director of the Bank believes, after due enquiry, that over the six months ended 31 March 2023, except as noted on pages 27 and 51:
(a) the Bank has complied in all material respects with each condition of registration that applied during that period;
(b) credit exposures to connected persons were not contrary to the interests of the Banking Group; and
(c) the Bank had systems in place to monitor and control adequately the Banking Group’s material risks, including credit risk, concentration of
credit risk, interest rate risk, currency risk, equity risk, liquidity risk, operational risk and other business risks, and that those systems were
being properly applied.
This Disclosure Statement has been signed by all the Directors:
Philippa GreenwoodCatherine McGrath
David GreenRob Hamilton
David HavercroftSam Knowles
Jonathan MasonChristine Parker
Michael Rowland
Dated this 18
th
day of May 2023

Income statement for the six months ended 31 March 2023
6 Westpac New Zealand Limited
THE BANKING GROUP
Six MonthsSix Months
EndedEnded
31 Mar 2331 Mar 22
$ millionsNoteUnauditedUnaudited
Interest income:
Calculated using the effective interest method2 2,805 1,600
Other2 50 13
Total interest income2 2,855 1,613
Interest expense2 (1,546) (526)
Net interest income 1,309 1,087
Non-interest income
Net fees and commissions3 111 121
Other3 3 8
Total non-interest income 114 129
Net operating income 1,423 1,216
Operating expenses4 (619)(543)
Impairment (charges)/benefits5 (154)15
Profit before income tax 650 688
Income tax expense (183)(191)
Net profit attributable to the owner of the Bank 467 497
The above income statement should be read in conjunction with the accompanying notes.
Statement of comprehensive income for the six months ended 31 March 2023
THE BANKING GROUP
Six MonthsSix Months
EndedEnded
31 Mar 2331 Mar 22
$ millions
UnauditedUnaudited
Net profit attributable to the owner of the Bank 467 497
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Gains/(losses) recognised in equity on:
Investment securities 45 (182)
Cash flow hedging instruments (3)276
Transferred to income statement:
Cash flow hedging instruments (72)38
Income tax on items taken to or transferred from equity:
Investment securities (13) 51
Cash flow hedging instruments 21 (88)
Items that will not be reclassified subsequently to profit or loss
Remeasurement of defined benefit obligation recognised in equity (net of tax) -7
Net other comprehensive income for the period (net of tax) (22) 102
Total comprehensive income attributable to the owner of the Bank 445 599
The above statement of comprehensive income should be read in conjunction with the accompanying notes.

Balance sheet as at 31 March 2023
Westpac New Zealand Limited 7
THE BANKING GROUP
31 Mar 2330 Sep 22
$ millionsNote
UnauditedAudited
Assets
Cash and balances with central banks 11,187 10,820
Collateral paid 59 42
Trading securities and financial assets measured at FVIS 2,287 2,118
Derivative financial instruments 150 169
Investment securities 6,763 5,623
Loans6, 7 98,209 96,882
Other financial assets 278 263
Due from related entities 1,616 2,606
Property and equipment 401 402
Deferred tax assets 106 39
Intangible assets 885 785
Other assets 106 69
Total assets 122,047 119,818
Liabilities
Collateral received 145 82
Deposits and other borrowings8 82,566 80,848
Other financial liabilities 5,818 4,348
Derivative financial instruments 102 118
Due to related entities 1,949 2,961
Debt issues9 19,801 19,933
Current tax liabilities 104 58
Provisions 220 233
Other liabilities 358 374
Loan capital 2,085 2,083
Total liabilities 113,148 111,038
Net assets 8,899 8,780
Shareholder's equity
Share capital 7,300 7,300
Reserves 115 137
Retained profits 1,484 1,343
Total shareholder's equity 8,899 8,780
The above balance sheet should be read in conjunction with the accompanying notes.

Statement of changes in equity for the six months ended 31 March 2023
8 Westpac New Zealand Limited
THE BANKING GROUP
Reserves
InvestmentCash FlowTotal
Share SecuritiesHedgeRetainedShareholder's
$ millions
Capital ReserveReserveProfitsEquity
As at 30 September 2021 (Audited) 7,300 (60) 45 1,078 8,363
Six months ended 31 March 2022 (Unaudited)
Net profit attributable to the owner of the Bank - - - 497 497
Net gains/(losses) from changes in fair value - (182) 276 - 94
Income tax effect - 51 (77) - (26)
Transferred to income statement - - 38 - 38
Income tax effect - - (11) - (11)
Remeasurement of defined benefit obligations - - - 9 9
Income tax effect - - - (2) (2)
Total comprehensive income for the six months
ended 31 March 2022 - (131) 226 504 599
Transactions with owner:
Dividends paid on ordinary shares - - - (465) (465)
As at 31 March 2022 (Unaudited) 7,300 (191) 271 1,117 8,497
As at 30 September 2022 (Audited) 7,300 (285) 422 1,343 8,780
Six months ended 31 March 2023 (Unaudited)
Net profit attributable to the owner of the Bank - - - 467 467
Net gains/(losses) from changes in fair value - 45 (3) - 42
Income tax effect - (13) 1 - (12)
Transferred to income statement - - (72) - (72)
Income tax effect - - 20 - 20
Remeasurement of defined benefit obligations - - - - -
Income tax effect
-
- -
-
-
Total comprehensive income for the six months
ended 31 March 2023 - 32 (54) 467 445
Transactions with owner:
Dividends paid on ordinary shares (refer to Note 10) - - - (326) (326)
As at 31 March 2023 (Unaudited) 7,300 (253) 368 1,484 8,899
The above statement of changes in equity should be read in conjunction with the accompanying notes.

Statement of cash flows for the six months ended 31 March 2023
Westpac New Zealand Limited 9
THE BANKING GROUP
Six MonthsSix Months
EndedEnded
31 Mar 2331 Mar 22
$ millionsUnauditedUnaudited
Cash flows from operating activities
Interest received 2,853 1,627
Interest paid (1,321) (470)
Non-interest income received 129 111
Operating expenses paid (606) (485)
Income tax paid (195) (192)
Cash flows from operating activities before changes in operating assets and liabilities 860 591
Net (increase)/decrease in:
Collateral paid (17) 110
Trading securities and financial assets measured at FVIS (169) 297
Loans (1,396) (1,563)
Other financial assets (1) (4)
Due from related entities 36 (997)
Other assets 2 1
Net increase/(decrease) in:
Collateral received 63 (179)
Deposits and other borrowings 1,718 1,997
Other financial liabilities 1,233 (566)
Due to related entities (1,240) (256)
Other liabilities 4 1
Net movement in external and related entity derivative financial instruments 453 (29)
Net cash provided by/(used in) operating activities 1,546 (597)
Cash flows from investing activities
Purchase of investment securities (1,119) (707)
Proceeds from investment securities 35 150
Purchase of capitalised computer software (118) (66)
Purchase of property and equipment (26) (10)
Net cash provided by/(used in) investing activities (1,228) (633)
Cash flows from financing activities
Net movement in due to related entities
124
47
Proceeds from debt issues
6,277
7,970
Repayments of debt issues
(6,002)
(3,825)
Payments for the principal portion of lease liabilities
(24)
(32)
Dividends paid to ordinary shareholder (326) (465)
Net cash provided by/(used in) financing activities 49 3,695
Net increase/(decrease) in cash and cash equivalents 367 2,465
Cash and cash equivalents at beginning of the period 10,820 9,013
Cash and cash equivalents at end of the period 11,187 11,478
Cash and cash equivalents at end of the period comprise:
Cash on hand 274 240
Balances with central banks 10,913 11,238
Cash and cash equivalents at end of the period 11,187 11,478
The above statement of cash flows should be read in conjunction with the accompanying notes.

Notes to the financial statements
10 Westpac New Zealand Limited
Note 1 Financial statements preparation
These financial statements have been prepared in accordance with the Order and Generally Accepted Accounting Practice, as appropriate for for-
profit entities, and the New Zealand equivalent to International Accounting Standard 34 Interim Financial Reporting. These financial statements are
also compliant with International Accounting Standard 34 Interim Financial Reporting as issued by the International Accounting Standards Board.
These financial statements do not include all the notes of the type normally included in annual financial statements. Accordingly, these financial
statements should be read in conjunction with the financial statements included in the Disclosure Statement for the year ended 30 September 2022.
Accounting policies
These financial statements have been prepared under the historical cost convention, as modified by applying fair value accounting to investment
securities and financial assets and financial liabilities (including derivative financial instruments) measured at FVIS or FVOCI. The going concern
concept has been applied.
The financial statements were authorised for issue by the Board of Directors on 18 May 2023.
All amounts in this Disclosure Statement are presented in New Zealand dollars and have been rounded to the nearest million dollars unless
otherwise stated.
Comparative information has been revised where appropriate to enhance comparability. Where there has been a material restatement of
comparative information, the nature of, and the reason for, the restatement is disclosed in these financial statements.
The accounting policies adopted in the preparation of these financial statements are consistent with those in the financial statements for the year
ended 30 September 2022.
Critical accounting assumptions and estimates
In preparing these financial statements, the application of the Banking Group's accounting policies requires the use of judgement, assumptions and
estimates.
The areas of judgement, estimates and assumptions in these financial statements, including the key sources of estimation uncertainty, are
consistent with those in the Disclosure Statement for the year ended 30 September 2022. Details on specific judgements in relation to the
calculation of the provision for ECL, including overlays, are included in Note 7.
Amendments to Accounting Standards effective this period
No new accounting standards have been adopted by the Banking Group for the six months ended 31 March 2023. There have been no amendments
to existing accounting standards that have had a material impact on the Banking Group.

Notes to the financial statements
Westpac New Zealand Limited 11
Note 2 Net interest income5967-2 04-18
THE BANKING GROUP
Six MonthsSix Months
EndedEnded
31 Mar 2331 Mar 22
$ millions
UnauditedUnaudited
Interest income
Calculated using the effective interest method
Cash and balances with central banks 244 34
Collateral paid 2 -
Investment securities 70 39
Loans 2,489 1,527
Total interest income calculated using the effective interest method 2,805 1,600
Other
Trading securities and financial assets measured at FVIS 46 12
Due from related entities 4 1
Total other 50 13
Total interest income 2,855 1,613
Interest expense
Calculated using the effective interest method
Collateral received 1 -
Deposits and other borrowings 1,039 240
Due to related entities 24 9
Debt issues 107 73
Loan capital 80 52
Other financial liabilities 102 12
Total interest expense calculated using the effective interest method 1,353 386
Other
Deposits and other borrowings 66 17
Due to related entities 4 2
Debt issues 96 6
Other interest expense
1
27 115
Total other 193 140
Total interest expense 1,546 526
Net interest income 1,309 1,087
1
Includes the net impact of Treasury’s interest rate and liquidity management activities.

Notes to the financial statements
12 Westpac New Zealand Limited
Note 3 Non-interest income5967-2 04-18
THE BANKING GROUP
Six MonthsSix Months
EndedEnded
31 Mar 2331 Mar 22
$ millions
UnauditedUnaudited
Net fees and commissions
Facility fees 22 22
Transaction fees and commissions 123 124
Other non-risk fee income 5 7
Fees and commissions income 150 153
Credit card loyalty programmes (20) (18)
Transaction fees and commissions related expenses (19) (14)
Fees and commissions expenses (39) (32)
Net fees and commissions 111 121
Other
Net ineffectiveness on qualifying hedges - 8
Other 3 -
Total other income 3 8
Total non-interest income 114 129
Non-interest income in scope of NZ IFRS 15 Revenue from Contracts with Customers can be further disaggregated into the following operating
segments and is consistent with the segment descriptions detailed in Note 13:
THE BANKING GROUP
$ millions
Consumer Banking
and Wealth
Institutional and
Business BankingReconciling ItemsTotal
Six months ended 31 March 2023 (Unaudited)
Fees and commissions income
Facility fees 14 8 - 22
Transaction fees and commissions 79 43 1 123
Other non-risk fee income 2 6 (3) 5
Fees and commissions income 95 57 (2) 150
Fees and commissions expenses (39) - - (39)
Net fees and commissions income 56 57 (2) 111
Six months ended 31 March 2022 (Unaudited)
Fees and commissions income
Facility fees 13 8 1 22
Transaction fees and commissions 84 38 2 124
Other non-risk fee income 3 6 (2) 7
Fees and commissions income 100 52 1 153
Fees and commissions expenses (31) - (1) (32)
Net fees and commissions income 69 52 - 121

Notes to the financial statements
Westpac New Zealand Limited 13
Note 4 Operating expenses
THE BANKING GROUP
Six monthsSix months
Ended Ended
31 Mar 2331 Mar 22
$ millions
UnauditedUnaudited
Staff expenses
1
330 300
Lease expenses 13 9
Depreciation 42 46
Technology services and telecommunications
1
99 80
Purchased services 48 38
Software amortisation costs 18 21
Related entities - management fees 3 3
Other 66 46
Total operating expenses
619 543
1
Comparatives have been restated due to a revision in the presentation of capitalised staff expenses associated with internally generated
software. The restatement results in a $20 million decrease in staff expenses from $320 million to $300 million and a corresponding increase in
technology services and telecommunications from $60 million to $80 million.
Note 5 Impairment charges/(benefits)
THE BANKING GROUP
Six MonthsSix Months
Ended Ended
31 Mar 2331 Mar 22
$ millions
UnauditedUnaudited
Provisions raised/(released):
Performing 121 (19)
Non-performing 30 (1)
Bad debts written-off/(recovered) directly to the income statement 3 5
Impairment charges/(benefits) 154 (15)
of which relates to:
Loans and credit commitments 154 (15)
Impairment charges/(benefits) 154 (15)
Impairment charges/(benefits) on all other financial assets are not material to the Banking Group.

Notes to the financial statements
14 Westpac New Zealand Limited
Note 6 Loans
THE BANKING GROUP
31 Mar 2330 Sep 22
$ millions
UnauditedAudited
Residential mortgages 65,254 63,869
Other retail 2,737 2,829
Corporate 30,579 30,459
Other
173 121
Total gross loans 98,743 97,278
Provision for ECL on loans (refer to Note 7) (534) (396)
Total net loans 98,209 96,882
As at 31 March 2023, $7,537 million of residential mortgages, accrued interest (representing accrued interest on the outstanding residential
mortgages) and cash (representing collections of principal and interest from the underlying residential mortgages) were used by the Banking
Group to secure the obligations of WSNZL under the CB Programme (30 September 2022: $7,528 million). In addition, $6,482 million of residential
mortgages and accrued interest has been pledged as collateral as part of the repurchase agreements with the Reserve Bank, under the Funding
for Lending Programme and Term Lending Facility (30 September 2022: $4,998 million). These pledged assets were not derecognised from the
Banking Group’s balance sheet in accordance with the accounting policies outlined in Note 1. Financial statements preparation included in the
Disclosure Statement for the year ended 30 September 2022. As at 31 March 2023, the New Zealand dollar equivalent of bonds issued by WSNZL
under the CB Programme was $4,945 million (30 September 2022: $3,576 million) and the cash value of the repurchase agreements with the
Reserve Bank was $5,061 million (30 September 2022: $3,967 million).
Note 7 Provision for expected credit losses
Loans and credit commitments
Movements in components of loss allowance
The reconciliation of the provision for ECL for loans and credit commitments has been determined by an aggregation of monthly movements over
the period. The key line items in the reconciliation represent the following:
“Transfers between stages” lines represent transfers between Stage 1, Stage 2 and Stage 3 prior to remeasurement of the provision for ECL.
“New financial assets originated” line represents new accounts originated during the period.
“Financial assets derecognised during the period” line represents loans derecognised due to final repayments during the period.
“Other charges/(credits) to the income statement” line represents the impact on the provision for ECL due to changes in credit quality
during the period (including transfers between stages), changes in portfolio overlays, changes due to forward-looking economic scenarios
and partial repayments and additional drawdowns on existing facilities over the period.
Amounts written off represent a reduction in the provision for ECL as a result of derecognition of exposures where there is no reasonable
expectation of full recovery.

Notes to the financial statements
Westpac New Zealand Limited 15
Note 7 Provision for expected credit losses (continued)
The following tables reconcile the provision for ECL on loans and credit commitments for the Banking Group.
THE BANKING GROUP
31 Mar 23
Unaudited
PerformingNon-performing
Stage 1Stage 2Stage 3Stage 3
$ millions
CAPCAPCAPIAP
Total
Provision for ECL on loans and credit commitments as at 30
September 2022
103 240 69 27 439
Due to changes in credit quality:
Transfers to Stage 1 91 (87) (4) - -
Transfers to Stage 2 (10) 24 (14) - -
Transfers to Stage 3 CAP - (17) 19 (2) -
Transfers to Stage 3 IAP - (2) (7) 9 -
Reversals of previously recognised impairment charges - - - (3) (3)
New financial assets originated 9 - - - 9
Financial assets derecognised during the period (3) (13) (9) - (25)
Changes in CAP due to amounts written off - - (11) - (11)
Other charges/(credits) to the income statement (89) 218 51 1 181
Total charges/(credits) to the income statement for ECL (2) 123 25 5 151
Amounts written off from IAP - - - (1) (1)
Total provision for ECL on loans and credit commitments as
at 31 March 2023
101 363 94 31 589
Presented as:
Provision for ECL on loans (refer to Note 6) 84 325 94 31 534
Provision for ECL on credit commitments
1
17 38 - - 55
Total provision for ECL on loans and credit commitments as
at 31 March 2023
101 363 94 31 589
1
Includes provision for ECL on related entity credit commitments of $11 million classified as Due to Related Entities in the Balance Sheet.

Notes to the financial statements
16 Westpac New Zealand Limited
Note 7 Provision for expected credit losses (continued)
THE BANKING GROUP
30 Sep 22
Audited
PerformingNon-performing
Stage 1Stage 2Stage 3Stage 3
$ millions
CAPCAPCAPIAP
Total
Provision for ECL on loans and credit commitments as at 30
September 2021
102 279 75 69 525
Due to changes in credit quality:
Transfers to Stage 1 141 (122) (19) - -
Transfers to Stage 2 (12) 52 (39) (1) -
Transfers to Stage 3 CAP - (24) 26 (2) -
Transfers to Stage 3 IAP - (7) (6) 13 -
Reversals of previously recognised impairment charges - - - (6) (6)
New financial assets originated 16 - - - 16
Financial assets derecognised during the year (11) (27) (19) - (57)
Changes in CAP due to amounts written off - - (23) - (23)
Other charges/(credits) to the income statement (133) 89 74 3 33
Total charges/(credits) to the income statement for ECL 1 (39) (6) 7 (37)
Amounts written off from IAP - - - (49) (49)
Total provision for ECL on loans and credit commitments as
at 30 September 2022
103 240 69 27 439
Presented as:
Provision for ECL on loans (refer to Note 6) 85 215 69 27 396
Provision for ECL on credit commitments
1
18 25 - - 43
Total provision for ECL on loans and credit commitments as
at 30 September 2022
103 240 69 27 439
1
Includes provision for ECL on related entity credit commitments of $4 million classified as Due to Related Entities in the Balance Sheet.

Notes to the financial statements
Westpac New Zealand Limited 17
Note 7 Provision for expected credit losses (continued)
The following table provides further details of the provision for ECL by types of exposure and stage:
THE BANKING GROUP
31 Mar 2330 Sep 22
UnauditedAudited
PerformingNon-performingPerformingNon-performing
Stage 1Stage 2Stage 3Stage 3Stage 1Stage 2Stage 3Stage 3
$ millions
CAPCAPCAPIAP
Total
CAPCAPCAPIAP
Total
Provision for ECL on loans and
credit commitments
Residential mortgages 49 118 52 10 229 46 91 43 9 189
Other retail 14 49 14 2 79 17 43 13 1 74
Corporate 38 196 28 19 281 40 106 13 17 176
Total provision for ECL on
loans and credit commitments
101 363 94 31 589 103 240 69 27 439
Impact of overlays on the provision for ECL on loans and credit commitments
The following table attributes the provision for ECL on loans and credit commitments between modelled ECL and portfolio overlays.
Portfolio overlays are used to capture risk of increased uncertainty relating to forward-looking economic conditions, or areas of potential risk and
uncertainty in the portfolio, that are not captured in the underlying modelled ECL.
THE BANKING GROUP
31 Mar 2330 Sep 22
$ millionsUnauditedAudited
Modelled provision for ECL on loans and credit commitments 393 313
Overlays 196 126
Total provision for ECL on loans and credit commitments 589 439
Details of changes related to forward-looking economic inputs and portfolio overlays, based on reasonable and supportable information up to
the date of this disclosure statement, are provided below.

Notes to the financial statements
18 Westpac New Zealand Limited
Note 7 Provision for expected credit losses (continued)
Modelled provision for ECL on loans and credit commitments
The modelled provision for ECL on loans and credit commitments is a probability weighted estimate based on three scenarios which together
represent the Banking Group’s view of the forward-looking distribution of potential loss outcomes. The changes in provisions as a result of
changes in modelled ECL are reflected through the “Other charges/(credits) to the income statement” line in the “Movements in components of
loss allowance” table. Portfolio overlays are used to capture potential risk and uncertainty in the portfolio, that are not captured in the underlying
modelled ECL.
The base case scenario uses Westpac Economic forecasts as at 31 March 2023, which includes a moderate recession and residential property
price reductions in the 2024 financial year in response to high interest rates and the current high inflationary environment.
The Banking Group's forecasts assume the following:
Key economic assumptions for base
case scenario
31 Mar 23
1
Unaudited
30 Sep 22
Audited
Annual GDPForecast growth of 0.4% for calendar year 2023 and
a slight contraction of 0.3% for calendar year 2024.
Forecast growth of 1.6% for calendar year 2023 and
1.8% for calendar year 2024.
Residential property pricesForecast annual price contraction of 8.9% for
calendar year 2023 and forecast growth of 1.0% for
calendar year 2024.
Forecast annual price contraction of 5.0% for
calendar year 2023 and forecast growth of 1.0% for
calendar year 2024.
Cash rateForecast cash rate of 5.00% at December 2023 and
3.75% at December 2024.
Forecast cash rate of 4.00% at December 2023 and
3.00% at December 2024
Unemployment rateForecast rate of 4.0% at December 2023 and 5.1% at
December 2024.
Forecast rate of 3.8% at December 2023 and 4.2% at
December 2024.
1
The Banking Group released updated forecasts on 5 April 2023 as a result of the Reserve Bank's announcement of a 50 bps increase in the official cash rate. These
updated forecasts would not have had a material impact on the provision for ECL as at 31 March 2023.
The downside scenario is a more severe scenario with ECL higher than the base case. The more severe loss outcome for the downside is generated
under a recession in which the combination of negative GDP growth, declines in residential property prices and an increase in the unemployment
rate simultaneously impact ECL across all portfolios from the reporting date. The assumptions in this scenario and relativities to the base case will
be monitored having regard to the emerging economic conditions and updated where necessary. The upside scenario represents a modest
improvement to the base case.
The following sensitivity table shows the reported provision for ECL on loans and credit commitments based on the probability weighted scenarios
and what the provision for ECL on loans and credit commitments would be assuming a 100% weighting is applied to the base case scenario and to
the downside scenario (with all other assumptions held constant).
THE BANKING GROUP
31 Mar 2330 Sep 22
$ millionsUnauditedAudited
Reported probability-weighted ECL 589 439
100% base case ECL 486 330
100% downside ECL 722 578

Notes to the financial statements
Westpac New Zealand Limited 19
Note 7 Provision for expected credit losses (continued)
If 1% of the Stage 1 gross exposure from loans and credit commitments (calculated on a 12 month ECL) was reflected in Stage 2 (calculated on a
lifetime ECL) the provision for ECL on loans and credit commitments would increase by $19 million (30 September 2022: $23 million) based on
applying the average provision coverage ratios by stage to the movement in the gross exposure by stage.
The following table indicates the weightings applied by the Banking Group as at 31 March 2023 and 30 September 2022.
THE BANKING GROUP
31 Mar 2330 Sep 22
Scenario weightings (%)UnauditedAudited
Upside55
Base5050
Downside4545
Portfolio overlays
Portfolio overlays are used to address areas of risk, including significant uncertainties that are not captured in the underlying modelled ECL.
Determination of portfolio overlays requires expert judgement and is thoroughly documented and subject to comprehensive internal governance
and oversight. Overlays are continually reassessed and if the risk is judged to have changed (increased or decreased), or is subsequently captured
in the modelled ECL, the overlay will be released or remeasured.
Portfolio overlays were increased by $70 million, primarily due to additional overlays for uncertainties arising from the recent cyclone and flood
events.
The Banking Group’s total portfolio overlays as at 31 March 2023 were $196 million (30 September 2022: $126 million) and comprise:
$66 million for the impact of the recent cyclone and flood events on customers not factored into modelled outcomes in the corporate and
residential mortgage portfolios (30 September 2022: Nil). This has been quantified by identifying the key cohorts of customers affected by
the events, then estimating the potential consequences for the impacted customers, the expected deterioration in the loan performance and
the consequential impact to the provision for ECL. The overlay is expected to be released when the impact on customers is realised and
incorporated in the modelled outcome, mainly when customers’ credit risk grade reviews are performed over the coming quarters;
$56 million on the residential mortgages and other retail portfolios, reflecting the expected, lagged impact from increasing interest rates (30
September 2022: $52 million) not captured in the modelled outcome. As the models were developed using data from periods without rapid
interest rate rises, the relationship between interest rates and delinquency is only weakly present in the modelled outcome. The overlay is
therefore developed using historical lag relationships between increases in interest rates and delinquencies over a longer period. The overlay
is expected to be released when the impact of increasing interest rates flows through into customer loan repricing and subsequent
performance;
$40 million on the residential mortgages portfolio, reflecting a worsening downside scenario (this impact is distinct from the increasing
interest rate overlay above) not factored into the modelled downside outcome (30 September 2022: $40 million);
$30 million on the corporate portfolio, reflecting the continued expected delay in stress and observed losses (30 September 2022: $30
million); and
$4 million (30 September 2022: $4 million) reflecting other related risks.
Impact of changes in gross carrying amount on the provision for ECL
Stage 1 gross carrying amount had a net decrease of $3.9 billion (30 September 2022: increased by $0.7 billion), primarily driven by underlying
portfolio movement from the residential mortgages and corporate portfolios, including derecognitions, repayments and additional exposures
transferred to Stage 2 to account for additional overlays, partially offset by new lending during the period. The Stage 1 ECL decrease is in line
with Stage 1 exposure movement to Stage 2, primarily driven by a more negative economic outlook and additional overlays.
Stage 2 gross carrying amount increased by $5.2 billion (30 September 2022: increased by $3.5 billion), mainly driven by increases from the
residential mortgages and corporate portfolios due to additional exposures transferred to Stage 2 to account for additional overlays and a rise
in high-risk exposures. Stage 2 ECL increases are driven by the underlying portfolio movements, a more negative economic outlook and
additional overlays.
Stage 3 gross carrying amount increased by $0.1 billion (30 September 2022: decreased by $0.1 billion), driven by increases in 90 days past
due exposures from the residential mortgages portfolio and customer downgrades from the corporate portfolio, offset by releases due to
write-offs from the other retail portfolio. Stage 3 ECL increases are in line with the increase in Stage 3 exposures.
Refer to Note iii. Asset quality of the Registered bank disclosures for further details.

Notes to the financial statements
20 Westpac New Zealand Limited
Note 8 Deposits and other borrowings-2 04-18
THE BANKING GROUP
31 Mar 2330 Sep 22
$ millionsUnauditedAudited
Certificates of deposit 2,796 2,939
Non-interest bearing, repayable at call 13,082 14,391
Other interest bearing:
At call 30,321 31,245
Term 36,367
32,273
Total deposits and other borrowings 82,566 80,848
Deposits and other borrowings have been recognised under both the historical cost convention and by applying fair value accounting to certain
products. Refer to Note 11 for further details.
Note 9 Debt issues
THE BANKING GROUP
31 Mar 2330 Sep 22
$ millionsUnauditedAudited
Short-term debt
Commercial paper 3,907 5,490
Total short-term debt 3,907 5,490
Long-term debt
Non-domestic medium-term notes 8,339 7,515
Covered bonds 4,936 3,563
Domestic medium-term notes 2,619 3,365
Total long-term debt 15,894 14,443
Total debt issues 19,801 19,933
Debt issues have been recognised under both the historical cost convention and by applying fair value accounting to certain products. Refer to
Note 11 for further details.
Note 10 Related entities
Controlled entities of the Bank are set out in Note 23 to the financial statements included in the Disclosure Statement for the year ended 30 September
2022.
On 28 February 2022, the sale of Westpac Life (renamed Fidelity Insurance Limited on 28 February 2022) to Fidelity Life was completed, at which point
Westpac Life ceased to be a subsidiary of the Ultimate Parent Bank and a related entity of the Banking Group.
On 16 February 2023, the Bank declared and paid a dividend of $326 million to its immediate parent company, Westpac New Zealand Group Limited.

Notes to the financial statements
Westpac New Zealand Limited 21
Note 11 Fair values of financial assets and financial liabilities
Fair Valuation Control Framework
The Banking Group uses a Fair Valuation Control Framework where the fair value is either determined or validated by a function independent of the
transaction. This framework formalises the policies and procedures used to achieve compliance with relevant accounting, industry and regulatory
standards. The framework includes specific controls relating to:
the revaluation of financial instruments;
independent price verification;
fair value adjustments; and
financial reporting.
A key element of the framework is the Revaluation Committee, comprising senior valuation specialists from within the Ultimate Parent Bank Group.
The Revaluation Committee reviews the application of the agreed policies and procedures to assess that a fair value measurement basis has been
applied.
The method of determining fair value differs depending on the information available.
Fair value hierarchy
A financial instrument’s categorisation within the valuation hierarchy is based on the lowest level input that is significant to the fair value
measurement.
The Banking Group categorises all fair value instruments according to the hierarchy described below.
Valuation techniques
The Banking Group applies market accepted valuation techniques in determining the fair valuation of over-the-counter derivatives. This includes
Credit Valuation Adjustment and Funding Valuation Adjustment, which incorporate credit risk and funding costs and benefits that arise in relation to
uncollateralised derivative positions, respectively.
The specific valuation techniques, the observability of the inputs used in valuation models and the subsequent classification for each significant
product category are outlined as follows:
Financial instruments measured at fair value
Level 1 instruments
The fair value of financial instruments traded in active markets is based on recent unadjusted quoted prices. These prices are based on actual arm’s
length basis transactions.
The valuations of Level 1 instruments require little or no management judgement.
InstrumentBalance sheet categoryIncludes:Valuation
Debt instrumentsTrading securities and
financial assets measured at
FVIS
Investment securities
New Zealand
Government bonds
These instruments are traded in liquid, active markets where
prices are readily observable. No modelling or assumptions are
used in the valuation.
Level 2 instruments
The fair value for financial instruments that are not actively traded is determined using valuation techniques which maximise the use of observable
market prices. Valuation techniques include:
the use of market standard discounting methodologies;
option pricing models; and
other valuation techniques widely used and accepted by market participants.

Notes to the financial statements
22 Westpac New Zealand Limited
Note 11 Fair values of financial assets and financial liabilities (continued)
InstrumentBalance sheet categoryIncludes:Valuation
Interest rate
products
Derivative financial instruments
Due from related entities
Due to related entities
Interest rate swaps,
forwards and options
– derivative financial
instruments
Industry standard valuation models are used to calculate the
expected future value of payments by product, which is
discounted back to a present value. The model’s interest rate
inputs are benchmark interest rates and active broker quoted
interest rates in the swap, bond and futures markets. Interest
rate volatilities are sourced from brokers and consensus data
providers. If consensus prices are not available, these are
classified as Level 3 instruments.
FX products
Derivative financial instruments
Due from related entities
Due to related entities
FX swaps – derivative
financial instruments
Derived from market observable inputs or consensus pricing
providers using industry standard models. If consensus
prices are not available, these are classified as Level 3
instruments.
Non-asset backed
debt instruments
Trading securities and financial
assets measured at FVIS
Investment securities
Due from related entities
Due to related entities
Other financial liabilities
Local authority and NZ
public securities, other
bank issued
certificates of deposit,
commercial paper, other
government securities,
off-shore securities and
corporate bonds
Repurchase agreements
and reverse repurchase
agreements over non-
asset backed debt
securities
Valued using observable market prices which are sourced from
independent pricing services, broker quotes or inter-dealer
prices. If prices are not available for these sources, these are
classified at Level 3 instruments.
Deposits and
other borrowings
at fair value
Deposits and other borrowingsCertificates of deposit
Discounted cash flow using market rates offered for deposits
of similar remaining maturities.
Debt issues at fair
value
Debt issuesCommercial paper
Discounted cash flows, using a discount rate which reflects
the terms of the instrument and the timing of cash flows
adjusted for market observable changes in the Banking
Group’s implied creditworthiness.
Level 3 instruments
Financial instruments valued where at least one input that could have a significant effect on the instrument’s valuation is not based on observable
market data due to illiquidity or complexity of the product. These inputs are generally derived and extrapolated from other relevant market data and
calibrated against current market trends and historical transactions.
These valuations are calculated using a high degree of management judgement.
As at 31 March 2023, the Banking Group has no financial instruments valued under this category (30 September 2022: nil).

Notes to the financial statements
Westpac New Zealand Limited 23
Note 11 Fair values of financial assets and financial liabilities (continued)
The following table summarises the attribution of financial instruments measured at fair value to the fair value hierarchy:
THE BANKING GROUP
31 Mar 2330 Sep 22
UnauditedAudited
$ millions
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Financial assets measured at fair value on a recurring basis
Trading securities and financial assets measured at FVIS1302,157-2,287862,032-2,118
Derivative financial instruments-150-150-169-169
Investment securities2,3044,459-6,7631,9823,641-5,623
Due from related entities-1,464-1,464-2,155-2,155
Total financial assets measured at fair value2,4348,230-10,6642,0687,997-10,065
Financial liabilities measured at fair value on a recurring basis
Deposits and other borrowings at fair value-2,796-2,796-2,939-2,939
Other financial liabilities-97-97----
Derivative financial instruments-102-102-118-118
Due to related entities-1,040-1,040-2,200-2,200
Debt issues at fair value-3,907-3,907-5,490-5,490
Total financial liabilities measured at fair value-7,942-7,942-10,747-10,747
Analysis of movements between fair value hierarchy levels
The Banking Group considers transfers between levels, if any, to have occurred at the end of the reporting period. During the period, there were no
material transfers between levels of the fair value hierarchy (30 September 2022: no material transfers between levels).
Financial instruments not measured at fair value
The following table summarises the estimated fair value of the Banking Group’s financial instruments not measured at fair value:
THE BANKING GROUP
31 Mar 2330 Sep 22
UnauditedAudited
CarryingCarrying
$ millions
AmountFair ValueAmountFair Value
Financial assets not measured at fair value
Cash and balances with central banks 11,187 11,187 10,820 10,820
Collateral paid 59 59 42 42
Loans 98,209 97,140 96,882 95,528
Other financial assets 278 278 263 263
Due from related entities 152 152 451 451
Total financial assets not measured at fair value 109,885 108,816 108,458 107,104
Financial liabilities not measured at fair value
Collateral received 145 145 82 82
Deposits and other borrowings 79,770 79,755 77,909 77,895
Other financial liabilities 5,721 5,721 4,348 4,348
Due to related entities 909 909 761 761
Debt issues
1
15,894 15,670 14,443 14,242
Loan capital
1
2,085 2,226 2,083 2,224
Total financial liabilities not measured at fair value 104,524 104,426 99,626 99,552
1
The estimated fair value of debt issues and loan capital includes the impact of changes in the Banking Group's credit spreads since origination.
A detailed description of how fair value is derived for financial instruments not measured at fair value is disclosed in Note 25 of the financial statements
included in the Disclosure Statement for the year ended 30 September 2022.5967-2 04-18

Notes to the financial statements
24 Westpac New Zealand Limited
Note 12 Credit related commitments, contingent assets and contingent liabilities
THE BANKING GROUP
31 Mar 2330 Sep 22
$ millions
UnauditedAudited
Letters of credit and guarantees 1,455 1,609
Commitments to extend credit 27,244 27,901
Total undrawn credit commitments 28,699 29,510
Contingent assets
The credit commitments shown in the table above also constitute contingent assets. These commitments would be classified as loans on the balance
sheet on the contingent event occurring.
Contingent liabilities
All potential claims and other liabilities are assessed on a case-by-case basis. A provision will be recognised where the Banking Group has
conducted an assessment which determines the likelihood of loss as probable and where its potential loss can be reliably estimated. A contingent
liability exists in respect of actual or potential claims where the likely loss is not assessed as probable, where the law is uncertain or, in rare
circumstances, where the outflow of resources cannot be reliably estimated.
The Banking Group is exposed to contingent risks and liabilities arising from the conduct of its business, including: actual and potential disputes,
claims and legal proceedings; investigations, inquiries and reviews (formal and informal) carried out by regulatory authorities; and internal
investigations and reviews, one such internal review being a review of processes for some products relating to the requirements of the Credit
Contracts and Consumer Finance Act 2003.
The scope of reviews (internal and external), investigations and inquiries can be wide-ranging and can result in litigation (including class action
proceedings and enforcement proceedings), fines and penalties, customer remediation and/or other sanctions and reputational damage.
Note 13 Segment reporting
The Banking Group’s segment reporting incorporates Consumer Banking and Wealth and Institutional and Business Banking sectors within New
Zealand. On this basis, no geographical segment reporting is provided.
The operating segment results have been presented on a management reporting basis and consequently internal charges and transfer pricing
adjustments have been reflected in the performance of each operating segment. Intersegment pricing is determined on a cost recovery basis.
The Banking Group does not rely on any single major customer for its revenue base.
Investments and Insurance provided funds management and insurance services until 28 February 2022 when the sale of Westpac Life to Fidelity Life
was completed. From 1 March 2022, it only provides funds management services. As at 31 March 2023, the investments business unit is no longer
reported as a main operating segment.
The Banking Group’s operating segments are defined by the customers they serve and the services they provide. The Banking Group has identified the
following main operating segments:
Consumer Banking and Wealth provides financial services predominantly for individuals; and
Institutional and Business Banking provides a broad range of financial services for commercial, corporate, property finance, agricultural,
institutional and government customers.
Reconciling items primarily represent:
business units that do not meet the definition of a reportable operating segment under NZ IFRS 8 Operating Segments;
elimination entries on consolidation of the results, assets and liabilities of the Banking Group’s controlled entities in the preparation of the
consolidated financial statements of the Banking Group; and
results of certain business units excluded for management reporting purposes, but included within the consolidated financial statements of the
Banking Group for statutory financial reporting purposes.

Notes to the financial statements
Westpac New Zealand Limited 25
Note 13 Segment reporting (continued)
THE BANKING GROUP
ConsumerInstitutional
Banking andand BusinessReconciling
$ millionsWealthBankingItemsTotal
Six months ended 31 March 2023 (Unaudited)
Net interest income61460293
1,309
Non-interest income
56571114
Net operating income before operating expenses and
impairment charges
670659941,423
Operating expenses(341)(247)(31)
(619)
Impairment (charges)/benefits
(48)(106)-(154)
Profit before income tax28130663650
Six months ended 31 March 2022 (Unaudited)
Net interest income559537(9)
1,087
Non-interest income
6952
8
129
Net operating income before operating expenses and
impairment charges
628589(1)1,216
Operating expenses(317)(204)(22)(543)
Impairment (charges)/benefits
55515
Profit before income tax316390(18)688
As at 31 March 2023 (Unaudited)
Total gross loans59,41439,592(263)98,743
Total deposits and other borrowings44,05135,7182,79782,566
As at 30 September 2022 (Audited)
Total gross loans57,96839,684(374)97,278
Total deposits and other borrowings43,57434,3352,93980,848

Registered bank disclosures
Unaudited
Unaudited
26 Westpac New Zealand Limited
This section contains the additional disclosures required by the Registered Bank Disclosure Statements (New Zealand Incorporated Registered
Banks) Order 2014 (as amended).
i. General information
Guarantee arrangements
No material obligations of the Bank are guaranteed as at the date the Directors signed this Disclosure Statement.
Westpac New Zealand Group Limited does not guarantee any of the obligations of the Bank or any member of the Banking Group.
Changes to Directorate
There have been no changes in the composition of the Board of Directors of the Bank since 30 September 2022.
Auditor
PricewaterhouseCoopers
PwC Tower, Level 27
15 Customs Street West
Auckland, New Zealand
Pending proceedings or arbitration
No pending legal proceedings or arbitration concerning any member of the Banking Group is expected to have a material adverse effect on the Bank or
the Banking Group.
Credit ratings
The Bank has the following credit ratings with respect to its long-term senior unsecured obligations, including obligations payable in New Zealand in
New Zealand dollars, as at the date the Directors signed this Disclosure Statement:
Rating AgencyCurrent Credit RatingRating Outlook
Fitch Ratings
Moody’s Investors Service
S&P Global Ratings
A+
A1
AA-
Stable
Stable
Stable

Registered bank disclosures
Unaudited
Unaudited
Westpac New Zealand Limited 27
i. General information (continued)
Other material matters
Reports required under section 95 of the Banking (Prudential Supervision) Act 1989
On 23 March 2021, the Reserve Bank issued two notices to the Bank under section 95 of the Banking (Prudential Supervision) Act 1989 requiring the
Bank to supply two external reviews to the Reserve Bank (the ‘Risk Governance Review’ and the ‘Liquidity Review’). These reviews only applied to the
Bank and not to the Ultimate Parent Bank or its NZ Branch.
The Risk Governance Review related to the effectiveness of the Bank’s risk governance. This review, completed by Oliver Wyman Limited (Oliver
Wyman) in November 2021, identified deficiencies in the Bank’s risk governance practices and operations which the Bank sought to address through
a programme of work overseen by the Bank’s Board.
Oliver Wyman (on engagement from the Bank) delivered an independent assurance report on the Bank’s remediation to the Bank and the Reserve
Bank in December 2022. In April 2023, the Reserve Bank acknowledged the decision of the Bank’s Board to approve closure of the Risk Governance
programme of work, noted the improvements made by the Bank to date and that any remaining activity will be overseen by the Bank’s Board Risk
and Compliance Committee.
The Liquidity Review related to the effectiveness of the Bank’s actions to improve liquidity risk management and the associated risk culture. The
review, completed by Deloitte Touche Tohmatsu (Deloitte) in May 2022, did not identify any material control gaps or issues and made some
recommendations for improvement, which are being implemented as part of the Banks’s continuous improvement activity. Since then, the Bank has
undertaken further assurance work and continues to review and enhance the control framework.
From 31 March 2021, the Reserve Bank amended the Bank’s conditions of registration, requiring the Bank to discount the value of its liquid assets by
approximately 14%. From 15 August 2022, the Reserve Bank reduced the overlay quantum to approximately 7%, which at 31 March 2023 was $1.7
billion. The overlay will remain in place until the Reserve Bank is satisfied that control assurance work has been completed.
Technology programme
Separate to the section 95 reviews outlined above, the Bank has also committed to the Reserve Bank, APRA and Financial Markets Authority to
address various technology issues, and engaged Deloitte to monitor progress. While work has been underway to address these issues for some time,
more work is required to meet the Bank’s expectations and those of the regulators.
Reserve Bank’s Outsourcing Policy
Condition of registration 22 requires the Bank to comply with those provisions of the Reserve Bank’s Outsourcing Policy that are currently in force,
and to be fully compliant with all provisions of the policy by 1 October 2023. The Bank is completing a large-scale, multi-year, complex programme
of work to become fully compliant by the compliance date. The Bank continuously monitors its progress and, while it considers that it has a pathway
to achieve compliance, significant risks remain in relation to the delivery of its plan by the compliance date.
Deposit Takers Bill
The Deposit Takers Bill 2022 was introduced into the New Zealand Parliament on 22 September 2022. If passed, the Bill will create a single regulatory
regime for banks and non-bank deposit takers in New Zealand and introduce a depositor compensation scheme to protect up to $100,000 per
eligible depositor, per institution, if a payout event is triggered. The scheme is expected to be fully funded by levies and with a Crown backstop. If
the Bill is passed, initial implementation of the depositor compensation scheme is expected in 2024, with the remainder of the Bill to be
implemented following the development of secondary legislation.
Reserve Bank review of overseas bank branches
On 20 October 2021, the Reserve Bank announced it is reviewing its policy for branches of overseas banks (including the NZ Branch), with a view to
creating a simple, coherent and transparent policy framework for branches of overseas banks. On 24 August 2022, the Reserve Bank released a
second and final consultation paper, outlining its preferred approach to the regulation of branches, including:
restricting overseas bank branches to engaging in wholesale business only (meaning they could not take retail deposits or offer products or
services to retail customers), and limiting the maximum size of a branch to $15 billion in total assets; and
requiring dual-registered branches (such as the NZ Branch), to only conduct business with customers with a consolidated turnover greater
than $50 million. In addition, the branch must be sufficiently separate from the relevant subsidiary with any risks mitigated by specific
conditions of registration.
The NZ Branch currently provides financial markets, trade finance and international payments products and services to customers referred by the
Bank. The consultation period closed on 16 November 2022. Final policy decisions are expected to be announced in the second half of 2023.

Registered bank disclosures
Unaudited
Unaudited
28 Westpac New Zealand Limited
ii. Additional financial disclosures
Additional information on balance sheet
THE BANKING GROUP
31 Mar 2330 Sep 22
$ millions
Unaudited Audited
Interest earning and discount bearing assets 119,329 116,325
Interest and discount bearing liabilities 98,406 95,643
Total amounts due from related entities 1,616 2,606
Total amounts due to related entities 3,442 4,454
Financial assets pledged as collateral
The Banking Group is required to provide collateral to other financial institutions, as part of standard terms, to secure liabilities. In addition to assets
supporting the CB Programme disclosed in Note 6, the carrying value of these financial assets pledged as collateral is:
THE BANKING GROUP
31 Mar 2330 Sep 22
$ millions
UnauditedAudited
Cash 59 42
Securities pledged under repurchase agreements:
Investment securities
1
281 1,397
Residential mortgage-backed securities
2
6,482 4,998
Total amount pledged to secure liabilities (excluding CB Programme) 6,822 6,437
1
As at 31 March 2023, $65 million of investment securities were pledged as collateral to the New Zealand Branch of the Ultimate Parent Bank, which is recorded within
due to related entities on the balance sheet (30 September 2022: $1,397 million) and $216 million of investment securities were pledged to third parties which is recorded
within other financial liabilities on the balance sheet (30 September 2022: $nil).
2
As at 31 March 2023, the Banking Group has undertaken repurchase agreements with the Reserve Bank, under the Funding for Lending Programme and Term Lending
Facility, using residential mortgage-backed securities. For the Funding for Lending Programme, the repurchase cash amount at 31 March 2023 is $4,981 million (30
September 2022: $3,871 million), which is recorded in other financial liabilities on the balance sheet, with underlying securities to the value of $6,387 million provided
under the arrangement (30 September 2022: $4,883 million). For the Term Lending Facility, the repurchase cash amount at 31 March 2023 is $80 million (30
September 2022: $96 million), which is recorded within other financial liabilities on the balance sheet, with underlying securities to the value of $95 million provided
under the arrangement (30 September 2022: $115 million).
Additional information on concentrations of credit risk
The maximum exposure to credit risk (excluding collateral received) is represented by the carrying amount of on-balance sheet financial assets and
undrawn credit commitments as set out in the following table.
THE BANKING GROUP
$ millions31 Mar 23
Financial assets
Cash and balances with central banks 11,187
Collateral paid 59
Trading securities and financial assets measured at FVIS 2,287
Derivative financial instruments 150
Investment securities 6,763
Loans 98,209
Other financial assets 278
Due from related entities 1,616
Total financial assets 120,549
Undrawn credit commitments
Letters of credit and guarantees 1,455
Commitments to extend credit 27,244
Total undrawn credit commitments 28,699
Total maximum credit risk exposure 149,248

Registered bank disclosures
Unaudited
Unaudited
Westpac New Zealand Limited 29
ii. Additional financial disclosures (continued)
THE BANKING GROUP
$ millions31 Mar 23
On-balance sheet credit exposures
Analysis of on-balance sheet credit exposures by geographical areas
New Zealand 117,831
Overseas 3,252
Subtotal 121,083
Provision for ECL on loans (534)
Total on-balance sheet credit exposures 120,549
Analysis of on-balance sheet credit exposures by industry sector
Accommodation, cafes and restaurants 393
Agriculture 9,220
Construction 505
Finance and insurance 6,326
Forestry and fishing 466
Government, administration and defence 17,309
Manufacturing 2,210
Mining 186
Property 8,139
Property services and business services 1,146
Services 1,419
Trade 2,197
Transport and storage 1,069
Utilities 2,200
Retail lending 66,596
Subtotal 119,381
Provision for ECL on loans (534)
Due from related entities 1,616
Other financial assets 86
Total on-balance sheet credit exposures 120,549
Off-balance sheet credit exposures consists of
Credit risk-related instruments 28,699
Total off-balance sheet credit exposures 28,699
Analysis of off-balance sheet credit exposures by geographical areas
New Zealand 28,181
Overseas 518
Total off-balance sheet credit exposures 28,699
Analysis of off-balance sheet credit exposures by industry sector
Accommodation, cafes and restaurants 74
Agriculture 628
Construction 495
Finance and insurance 2,039
Forestry and fishing 164
Government, administration and defence 908
Manufacturing 1,575
Mining 53
Property 1,521
Property services and business services 677
Services 1,200
Trade 1,888
Transport and storage 682
Utilities 1,707
Retail lending 15,088
Total off-balance sheet credit exposures 28,699
ANZSIC has been used as the basis for disclosing industry sectors.

Registered bank disclosures
Unaudited
Unaudited
30 Westpac New Zealand Limited
ii. Additional financial disclosures (continued)
Additional information on concentrations of funding
THE BANKING GROUP
$ millions31 Mar 23
Funding consists of
Collateral received 145
Deposits and other borrowings 82,566
Other financial liabilities
1
5,203
Due to related entities
2
936
Debt issues
3
19,801
Loan capital 2,085
Total funding 110,736
Analysis of funding by geographical area
2
New Zealand 89,809
Australia 786
United Kingdom 9,722
United States of America 5,416
China 2,612
Other 2,391
Total funding 110,736
Analysis of funding by industry sector
Accommodation, cafes and restaurants 453
Agriculture 1,736
Construction 2,630
Finance and insurance 41,703
Forestry and fishing 162
Government, administration and defence 3,243
Manufacturing 2,307
Mining 69
Property services and business services 7,649
Services 6,083
Trade 2,179
Transport and storage 1,077
Utilities 936
Households 35,396
Other
4
4,177
Subtotal 109,800
Due to related entities
2
936
Total funding 110,736
1
Other financial liabilities, as presented above, are in respect of repurchase agreements.
2
Amounts due to related entities, as presented above, are in respect of deposits and borrowings and exclude amounts which relate to derivative financial
instruments and other liabilities.
3
The geographic region used for debt issues is based on the nature of the debt programmes. The nature of the debt programmes is used as a proxy for the location
of the original purchaser. Where the nature of the debt programmes does not necessarily represent an appropriate proxy, the debt issues are classified as 'Other’.
These instruments may have subsequently been on-sold.
4
Includes deposits from non-residents.
ANZSIC has been used as the basis for disclosing industry sectors.

Registered bank disclosures
Unaudited
Unaudited
Westpac New Zealand Limited 31
ii. Additional financial disclosures (continued)
Additional information on interest rate sensitivity
The following table presents a breakdown of the earlier of the contractual repricing or maturity dates of the Banking Group’s net asset position as at 31
March 2023. The Banking Group uses this contractual repricing information as a base, which is then altered to take account of customer behaviour, to
manage its interest rate risk.
THE BANKING GROUP
31 Mar 23
Over 3Over 6Over 1
Months andMonths andYear andNon-
Up to 3Up to 6Up toUp toOverinterest
$ millionsMonthsMonths1 Year2 Years2 YearsBearingTotal
Financial assets
Cash and balances with central banks10,913----27411,187
Collateral paid59-----59
Trading securities and financial assets measured
at FVIS
1,538270-51428-2,287
Derivative financial instruments-----150150
Investment securities432893291,1254,788-6,763
Loans43,8899,43116,60420,1158,816(646)98,209
Other financial assets-----278278
Due from related entities452----1,1641,616
Total financial assets57,2839,79016,93321,29114,0321,220120,549
Non-financial assets1,498
Total assets122,047
Financial liabilities
Collateral received145-----145
Deposits and other borrowings47,24610,7279,6661,12572013,08282,566
Other financial liabilities5,08080---6585,818
Derivative financial instruments-----102102
Due to related entities 799----1,1501,949
Debt issues2,9906471,8834,18811,025(932)19,801
Loan capital1,493---592-2,085
Total financial liabilities57,75311,45411,5495,31312,33714,060112,466
Non-financial liabilities682
Total liabilities113,148
On-balance sheet interest rate repricing gap(470)(1,664)5,38415,9781,695
Net derivative notional principals
Net interest rate contracts (notional):
Receivable/(payable)16,546(3,874)(5,121)(10,438)2,887
Net interest rate repricing gap16,076(5,538)2635,5404,582

Registered bank disclosures
Unaudited
Unaudited
32 Westpac New Zealand Limited
ii. Additional financial disclosures (continued)
Additional information on liquidity risk
Contractual maturity of financial liabilities
The following table presents cash flows associated with financial liabilities, payable at the balance sheet date, by remaining contractual maturity. The
amounts disclosed in the table are the future contractual undiscounted cash flows, whereas the Banking Group manages inherent liquidity risk based on
expected cash flows.
Cash flows associated with these financial liabilities include both principal payments, as well as fixed or variable interest payments incorporated into the
relevant coupon period. Principal payments reflect the earliest contractual maturity date. Derivative financial instruments designated for hedging
purposes are expected to be held for their remaining contractual lives, and reflect gross cash flows over the remaining contractual term.
Derivatives held for trading and certain liabilities classified in “Other financial liabilities” which are measured at FVIS are not managed for liquidity
purposes on the basis of their contractual maturity, and accordingly these liabilities are presented in either the on demand or up to 1 month columns.
Only the liabilities that the Banking Group manages based on their contractual maturity are presented on a contractual undiscounted basis in the
following table.
THE BANKING GROUP
31 Mar 23
OverOver
1 Month3 MonthsOver 1
Year
OnUp toand Up toand Up toand Up toOver
$ millions
Demand1 Month3 Months1 Year5 Years5 YearsTotal
Financial liabilities
Collateral received-145----145
Deposits and other borrowings41,7517,41211,51921,0261,985-83,693
Other financial liabilities-339-805,570-5,989
Derivative financial instruments:
Held for trading 4-----4
Held for hedging purposes (net settled)-24(6)639
Held for hedging purposes (gross settled):
Cash outflow-12199509443892,314
Cash inflow--(3)(877)(892)(369)(2,141)
Due to related entities:
Non-derivative balances8566231-22-971
Derivative financial instruments:
Held for trading 115-----115
Held for hedging purposes (net settled)-5893221771351
Held for hedging purposes (gross settled):
Cash outflow-34623095,9801,5457,930
Cash inflow---(47)(5,313)(1,579)(6,939)
Debt issues-6881,1523,94712,7863,29821,871
Loan capital--9281472,2632,447
Total undiscounted financial liabilities42,7268,75212,88625,43221,4125,551116,759
Total contingent liabilities and commitments
Letters of credit and guarantees1,455-----1,455
Commitments to extend credit27,244-----27,244
Total undiscounted contingent liabilities and
commitments
28,699-----28,699

Registered bank disclosures
Unaudited
Unaudited
Westpac New Zealand Limited 33
ii. Additional financial disclosures (continued)
Liquid assets
The following table shows the Banking Group’s holding of liquid assets. Liquid assets include high quality assets readily convertible to cash to
meet the Banking Group’s liquidity requirements. The level of liquid asset holdings is reviewed frequently and is consistent with both the
requirements of the balance sheet and market conditions.
THE BANKING GROUP
$ millions31 Mar 23
Cash and balances with central banks 11,187
Supranational securities 2,383
NZ Government securities 2,460
NZ public securities 2,753
NZ corporate securities 1,529
Residential mortgage-backed securities 6,150
Available liquid assets 26,462
Reconciliation of mortgage-related amounts
The following table provides the Banking Group’s reconciliation between any amounts disclosed in this Disclosure Statement that relate to
mortgages on residential property.
THE BANKING GROUP
$ millions31 Mar 23
Residential mortgages - total gross loans (as disclosed in Note 6 and Section iii. Asset quality) 65,254
Reconciling items:
Unamortised deferred fees and expenses (297)
Fair value hedge adjustments 236
Value of undrawn commitments and other off-balance sheet amounts relating to residential mortgages 12,296
Undrawn at default
1
(3,419)
Residential mortgages by LVR (as disclosed in Additional mortgage information in Section iv. Capital adequacy and
regulatory liquidity ratios)
74,070
Accrued interest receivable 74
Partial write-offs 5
Residential mortgages - EAD (as disclosed in Credit risk exposures by asset class in Section iv. Capital adequacy
and regulatory liquidity ratios)
74,149
1
Estimate of the amount of committed exposure not expected to be drawn by the customer at the time of default.
iii. Asset quality
Past due assets
THE BANKING GROUP
31 Mar 23
Residential
$ millionsMortgagesOther RetailCorporateOtherTotal
Past due but not individually impaired assets
Less than 30 days past due1,01595208-1,318
At least 30 days but less than 60 days past due15215119-286
At least 60 days but less than 90 days past due99736-142
At least 90 days past due17623110-309
Total past due but not individually impaired assets1,442140473-2,055

Registered bank disclosures
Unaudited
Unaudited
34 Westpac New Zealand Limited
iii. Asset quality (continued)
Movements in components of loss allowance
Refer to Note 7 for movements in the components for loss allowance on loans and credit commitment for total exposure. The provision for ECL on
loans and credit commitments can be further disaggregated into the following types of credit exposures:
THE BANKING GROUP
PerformingNon-performing
Stage 1Stage 2Stage 3Stage 3
$ millions
CAPCAPCAPIAP
Total
Residential mortgages
Provision for ECL as at 30 September 2022 46 91 43 9 189
Due to changes in credit quality:
Transfers to Stage 1 40 (38) (2) - -
Transfers to Stage 2 (1) 10 (9) - -
Transfers to Stage 3 CAP - (2) 4 (2) -
Transfers to Stage 3 IAP - - (4) 4 -
Reversals of previously recognised impairment charges - - - (3) (3)
New financial assets originated 2 - - - 2
Financial assets derecognised during the period - (1) (5) - (6)
Changes in CAP due to amounts written off - - - - -
Other charges/(credits) to the income statement (38) 58 25 3 48
Total charges/(credits) to the income statement for ECL 3 27 9 2 41
Amounts written off from IAP - - - (1) (1)
Total provision for ECL on loans and credit commitments as
at 31 March 2023
49 118 52 10 229
Other retail
Provision for ECL as at 30 September 2022 17 43 13 1 74
Due to changes in credit quality:
Transfers to Stage 1 31 (29) (2) - -
Transfers to Stage 2 (4) 8 (4) - -
Transfers to Stage 3 CAP - (7) 7 - -
Transfers to Stage 3 IAP - - - - -
Reversals of previously recognised impairment charges - - - - -
New financial assets originated 3 - - - 3
Financial assets derecognised during the period (1) (6) (1) - (8)
Changes in CAP due to amounts written off - - (11) - (11)
Other charges/(credits) to the income statement (32) 40 12 1 21
Total charges/(credits) to the income statement for ECL (3) 6 1 1 5
Amounts written off from IAP - - - - -
Total provision for ECL on loans and credit commitments as
at 31 March 2023
14 49 14 2 79
Corporate
Provision for ECL as at 30 September 2022 40 106 13 17 176
Due to changes in credit quality:
Transfers to Stage 1 20 (20) - - -
Transfers to Stage 2 (5) 6 (1) - -
Transfers to Stage 3 CAP - (8) 8 - -
Transfers to Stage 3 IAP - (2) (3) 5 -
Reversals of previously recognised impairment charges - - - - -
New financial assets originated 4 - - - 4
Financial assets derecognised during the period (2) (6) (3) - (11)
Changes in CAP due to amounts written off - - - - -
Other charges/(credits) to the income statement (19) 120 14 (3) 112
Total charges/(credits) to the income statement for ECL (2) 90 15 2 105
Amounts written off from IAP - - - - -
Total provision for ECL on loans and credit commitments as
at 31 March 2023
38 196 28 19 281
The above movements in components of loss allowance table does not include ‘Other’ credit exposures on the basis that the provision for ECL
is nil.

Registered bank disclosures
Unaudited
Unaudited
Westpac New Zealand Limited 35
iii. Asset quality (continued)
Impacts of changes in gross financial assets on loss allowances - total
Refer to Note 7 for the impacts of changes in gross financial assets on loss allowances. The following table further explains how changes in gross
carrying amounts of loans during the period have contributed to changes in the provision for ECL on loans.
THE BANKING GROUP
31 Mar 23
Unaudited
Performing Non-performing
Stage 1Stage 2Stage 3Stage 3
$ millions
CAPCAPCAPIAP
Total
Total gross carrying amount as at 30 September 2022 85,362 11,374 482 60 97,278
Transfers:
Transfers to Stage 1 3,493 (3,470) (22) (1) -
Transfers to Stage 2 (8,708) 8,789 (81) - -
Transfers to Stage 3 CAP (41) (276) 319 (2) -
Transfers to Stage 3 IAP - (6) (15) 21 -
Net further lending/(repayment) (1,749) 784 - 1 (964)
New financial assets originated 7,229 - - - 7,229
Financial assets derecognised during the period (4,075) (646) (63) (4) (4,788)
Amounts written-off - - (11) (1) (12)
Total gross carrying amount as at 31 March 2023 81,511 16,549 609 74 98,743
Provision for ECL as at 31 March 2023 (84) (325) (94) (31) (534)
Total net carrying amount as at 31 March 2023 81,427 16,224 515 43 98,209

Registered bank disclosures
Unaudited
Unaudited
36 Westpac New Zealand Limited
iii. Asset quality (continued)
Impacts of changes in gross financial assets on loss allowances – by types of credit exposure
The gross carrying amounts of loans can be further disaggregated into the following types of credit exposures:
THE BANKING GROUP
PerformingNon-performing
Stage 1Stage 2Stage 3Stage 3
Total
$ millions
CAPCAPCAPIAP
Residential mortgages
Total gross carrying amount as at 30 September 2022 57,337 6,172 340 20 63,869
Transfers:
Transfers to Stage 1 2,350 (2,334) (16) - -
Transfers to Stage 2 (4,143) 4,208 (65) - -
Transfers to Stage 3 CAP (30) (160) 192 (2) -
Transfers to Stage 3 IAP - (1) (10) 11 -
Net further lending/(repayment) (1,462) 284 (1) (2) (1,181)
New financial assets originated 4,851 - - - 4,851
Financial assets derecognised during the period (1,985) (260) (37) (2) (2,284)
Amounts written-off - - - (1) (1)
Total gross carrying amount as at 31 March 2023 56,918 7,909 403 24 65,254
Provision for ECL as at 31 March 2023 (43) (112) (52) (10) (217)
Total net carrying amount as at 31 March 2023 56,875 7,797 351 14 65,037
Other retail
Total gross carrying amount as at 30 September 2022 2,063 708 56 2 2,829
Transfers:
Transfers to Stage 1 514 (508) (5) (1) -
Transfers to Stage 2 (584) 592 (8) - -
Transfers to Stage 3 CAP (5) (34) 39 - -
Transfers to Stage 3 IAP - - (2) 2 -
Net further lending/(repayment) (151) 82 - - (69)
New financial assets originated 177 - - - 177
Financial assets derecognised during the period (142) (40) (7) - (189)
Amounts written-off - - (11) - (11)
Total gross carrying amount as at 31 March 2023 1,872 800 62 3 2,737
Provision for ECL as at 31 March 2023 (10) (41) (14) (2) (67)
Total net carrying amount as at 31 March 2023 1,862 759 48 1 2,670
Corporate
Total gross carrying amount as at 30 September 2022 25,841 4,494 86 38 30,459
Transfers:
Transfers to Stage 1 629 (628) (1) - -
Transfers to Stage 2 (3,981) 3,989 (8) - -
Transfers to Stage 3 CAP (6) (82) 88 - -
Transfers to Stage 3 IAP - (5) (3) 8 -
Net further lending/(repayment) (136) 414 1 3 282
New financial assets originated 2,099 - - - 2,099
Financial assets derecognised during the period (1,898) (342) (19) (2) (2,261)
Amounts written-off - - - - -
Total gross carrying amount as at 31 March 2023 22,548 7,840 144 47 30,579
Provision for ECL as at 31 March 2023 (31) (172) (28) (19) (250)
Total net carrying amount as at 31 March 2023 22,517 7,668 116 28 30,329
The above gross carrying amount table does not include 'Other' credit exposures (refer to Note 6) on the basis that the provision for ECL is nil.

Registered bank disclosures
Unaudited
Unaudited
Westpac New Zealand Limited 37
iii. Asset quality (continued)
Other asset quality information
THE BANKING GROUP
31 Mar 23
Residential
$ millionsMortgagesOther RetailCorporateOtherTotal
Undrawn commitments with individually impaired counterparties1-2-3
Other assets under administration-----
iv. Capital adequacy and regulatory liquidity ratios
The information contained in this note has been derived in accordance with the Banking Group’s conditions of registration which relate to capital
adequacy and the Reserve Bank BPRs.
The Banking Group maintains an actively managed capital base to cover risks inherent in the business. The adequacy of the Banking Group’s capital
is monitored using, among other measures, the rules and ratios established by the BCBS and adopted by the Reserve Bank in supervising the
Banking Group.
The Banking Group’s capital summary
THE BANKING GROUP
$ millions
31 Mar 23
Tier 1 capital
Common Equity Tier 1 capital
Paid-up ordinary shares issued by the Bank plus related share premium 7,300
Retained earnings (net of appropriations) 1,484
Accumulated other comprehensive income and other disclosed reserves
1
115
Less deductions from Common Equity Tier 1 capital
Goodwill (477)
Other intangible assets
2
(424)
Cash flow hedge reserve (368)
Deferred tax asset deduction (106)
Expected loss excess over eligible allowance (5)
Total Common Equity Tier 1 capital 7,519
Additional Tier 1 capital
Additional Tier 1 capital instruments
3
1,125
Total additional Tier 1 capital 1,125
Total Tier 1 capital 8,644
Tier 2 capital
Tier 2 capital instruments
3
600
Revaluation reserves -
Eligible impairment allowance in excess of expected loss 71
Total Tier 2 capital 671
Total capital 9,315
1
Accumulated other comprehensive income and other disclosed reserves consist of investment securities reserve and cash flow hedge reserve as disclosed as
reserves on the balance sheet.
2
Includes capitalised transaction costs on loan capital and debt issues.
3
Classified as a liability under Generally Accepted Accounting Practice and excludes capitalised transaction costs. Additional Tier 1 capital instruments and Tier 2
capital instruments are itemised on pages 38 and 39. Further details on convertibility for Additional Tier 1 capital instruments are noted under the ‘Conversion’
section.

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

The AT1 notes were issued by the Bank and rank equally amongst themselves and are subordinated to the claims of depositors and senior or less subordinated creditors
of the Bank, but rank ahead of the Bank’s ordinary shares.
In accordance with the Reserve Bank BPRs, the Bank’s Additional Tier 1 instrument is subject to a transitional phase-out from 1 January 2022. In line
with the transitional phase-out schedule contained in BPR110, 75.0% of the total nominal value of the Bank’s Additional Tier 1 instrument will be
recognised as regulatory capital between 1 January 2023 and 31 December 2023.
Interest payable
Quarterly interest payments on the AT1 notes are at the absolute discretion of the Bank and will only be paid if the payment conditions are satisfied,
including that the interest payment will not result in the Bank becoming insolvent immediately following the interest payment; not result in a breach of
the Reserve Bank Prudential Standards; and the payment date not falling on the date of a capital trigger event or non-viability trigger event. Interest
payments are non-cumulative. If interest is not paid in full, the Bank may not determine or pay any dividends on its ordinary shares or undertake a
discretionary buy back or capital reduction of the Bank’s ordinary shares (except in limited circumstances).
Redemption
The Bank may elect to redeem all or some of the AT1 notes for their face value on 21 September 2027 and every fifth anniversary thereafter, subject to
the Reserve Bank’s prior written approval. Early redemption of all of the AT1 notes for certain tax or regulatory reasons is permitted subject to the
Reserve Bank’s prior written approval.
Conversion
If a capital trigger event or non-viability trigger event occurs, the Bank must convert some or all of the AT1 notes into a variable number of ordinary
shares issued by the Bank (calculated with reference to the net assets of the Bank and the total number of ordinary shares on issue at the conversion
date) that is sufficient, in the case of a capital trigger event, to return the Bank’s Common Equity Tier 1 capital ratio to above 5.125% as determined by
the Bank in consultation with the Reserve Bank; or, in the case of a non-viability trigger event, to satisfy the direction of the Reserve Bank or the
decision of the statutory manager of the Bank. A capital trigger event occurs when the Bank determines, or the Reserve Bank notifies in writing that it
believes, the Bank’s Common Equity Tier 1 Capital ratio is equal to or less than 5.125%. A non-viability trigger event occurs when the Reserve Bank or
the statutory manager (appointed pursuant to section 117 of the BPS Act) directs the Bank to convert or write off all or some of its AT1 notes.
If conversion of the AT1 notes does not occur within five business days of a capital trigger event or a non-viability trigger event, holders’ rights in
relation to the AT1 notes will be immediately and irrevocably terminated.
The Bank is able to elect to convert all the AT1 notes for certain tax or regulatory reasons (or in certain other circumstances).

Registered bank disclosures
Unaudited
Unaudited
Westpac New Zealand Limited 39
iv. Capital adequacy and regulatory liquidity ratios (continued)
Tier 2 loan capital
A summary of the key terms and features of the subordinated notes is provided below:
$Issue dateInterest rateMaturity dateOptional redemption date
NZ$600 million
notes
1
16 September
2022
Fixed at 6.19% until 16 September
2027. Resets on 16 September
2027 to a floating rate: New
Zealand 90 day Bank Bill Rate +
2.10% p.a.
16 September 2032
16 September 2027 and every quarterly
interest payment date thereafter
1
The subordinated notes were issued by the Bank. The subordinated notes rank equally amongst themselves and are subordinated to the claims of depositors and
senior or less subordinated creditors of the Bank, but rank ahead of the AT1 notes and the Bank's ordinary shares.
Interest payable
Quarterly interest payments on the subordinated notes are subject to the Bank being solvent at the time of, and immediately following the interest
payment.
Early redemption
The Bank may elect to redeem all or some of the subordinated notes for their face value together with accrued interest (if any) on 16 September 2027
or any interest payment date thereafter, subject to the Reserve Bank’s prior written approval. Early redemption of all of the subordinated notes for
certain tax or regulatory reasons is permitted on an interest payment date subject to the Reserve Bank’s prior written approval.

Registered bank disclosures
Unaudited
Unaudited
40 Westpac New Zealand Limited
iv. Capital adequacy and regulatory liquidity ratios (continued)
Credit risk subject to the IRB approach
Classification of Banking Group exposures by regulatory exposure class
The Banking Group determines credit risk RWAs under BPR130. The regulation specifies two different methodologies to be applied in calculating
credit risk RWAs: the standardised approach and the internal ratings based (IRB) approach (which includes the supervisory slotting calculation
method for specialised lending). For modelled exposure classes, the IRB approach applies, with total RWA being subject to a floor of 85% of the
standardised RWA. For non-modelled exposure classes, the standardised approach applies.
Modelled exposure classes – standardised floor applies
Exposures subject to IRB approach
Residential mortgages
Standard residential mortgage loans as defined in section B4.2 of BPR 133
Other retailSmall businessProgram-managed business lending.
Other retailAll other program-managed lending to retail customers, including credit cards,
personal loans and personal overdrafts.
CorporateCorporateExposures to corporations, partnerships, or proprietorships that do not fall into another
exposure class, and whose annual turnover is equal to or greater than $50m. Includes
Farm Lending.
Business lendingExposures to non-farm corporate customers, and whose annual turnover is less than
$50m
Exposures subject to slotting approach
CorporateSpecialised lending -
property finance
Exposures to corporate customers where the primary source of debt service, security
and repayment is derived from either the sale of a property development or income
produced by one or more investment properties.
Specialised lending -
project finance
Exposure to corporate customers where the primary source of debt service, repayment
and security is revenues generated by a project.
Non-modelled exposure classes
Exposures subject to standardised approach
SovereignCrownExposures to the Crown, Reserve Bank or other sovereigns and their central banks.
MDBs and
supranationals
Exposures to organisations listed in section C2.4(1) of BPR131
BankPublic Sector EntitiesExposures to Local Authorities
BankExposures to NZ registered banks and overseas banks
Other assetsAll assets not falling within the above asset classes
Equity exposures
EquityAll equity items that have not been deducted from capital and meet the definition of
equity exposures in BPR001.

Registered bank disclosures
Unaudited
Unaudited
Westpac New Zealand Limited 41
iv. Capital adequacy and regulatory liquidity ratios (continued)
Credit risk subject to the IRB approach
The Banking Group’s credit risk exposures by asset class as at 31 March 2023
Exposure-Minimum
WeightedExposure-weightedRisk-Pillar 1
AverageweightedRiskweightedCapital
PDEADLGDWeightAssets
1
Requirement
Exposure-weighted PD Grade (%)%$ millions%%$ millions$ millions
Residential mortgages
Up to and including 0.10
------
Over 0.10 up to and including 0.50
0.4734,60214.3211.654,836387
Over 0.50 up to and including 1.0
0.7026,51920.9522.577,182575
Over 1.0 up to and including 2.5
1.5211,88622.6243.686,230498
Over 2.5 up to and including 10.0
3.6971226.1489.7676761
Over 10.0 up to and including 99.99
------
Default100.0043020.69108.4056045
Total1.3374,14918.1722.0019,5751,566
Other retail
Up to and including 0.10
0.0574246.386.83615
Over 0.10 up to and including 0.50
0.1985454.3421.0021517
Over 0.50 up to and including 1.0
0.5427655.6941.8013911
Over 1.0 up to and including 2.5
1.7751566.6480.2749540
Over 2.5 up to and including 10.0
5.3335270.32104.6944235
Over 10.0 up to and including 99.99
19.256577.77157.3112410
Default100.001780.93111.18232
Total2.162,82157.3344.291,499120
Small business
Up to and including 0.10
0.102622.285.532-
Over 0.10 up to and including 0.50
0.341,01325.7914.2217314
Over 0.50 up to and including 1.0
0.9160031.4730.7122118
Over 1.0 up to and including 2.5
1.8333728.4835.9314611
Over 2.5 up to and including 10.0
4.6314230.2244.38756
Over 10.0 up to and including 99.99
14.502032.7462.48151
Default100.005431.95304.6219716
Total3.582,19228.2231.4982966
Corporate/Business lending
Up to and including 0.04
0.035,77947.8422.101,533123
Over 0.04 up to and including 0.10
0.074,16047.6822.811,13991
Over 0.10 up to and including 0.40
0.229,33241.0338.924,359349
Over 0.40 up to and including 3.0
1.1514,41832.0260.6110,485838
Over 3.0 up to and including 10.0
4.7832728.9883.0632626
Over 10.0 up to and including 99.0
24.531,02534.81172.312,120170
Default 100.0023943.0270.7020316
Total1.9735,28038.9747.6320,1651,613
Total credit risk exposures
subject to the IRB approach
114,44242,0683,365
1
A scalar of 1.2 currently applies to the RWA calculation of these amounts.

Registered bank disclosures
Unaudited
Unaudited
42 Westpac New Zealand Limited
iv. Capital adequacy and regulatory liquidity ratios (continued)
The following table summarises the Banking Group’s credit risk exposures by asset class arising from undrawn commitments and other off-balance
sheet contingent liabilities and counterparty credit risk on derivatives and securities financing transactions. These unaudited amounts are included in
the previous tables.
Undrawn Commitments
Counterparty Credit Risk
and otheron Derivatives and
Off-Balance Sheet Securities Financing
Contingent Liabilities
1
Transactions
$ millions
ValueEADValueEAD
Residential mortgages
12,2968,877--
Other retail
2,7931,590--
Small business
823675--
Corporate/Business Lending
9,8519,8522,75981
Total 25,76320,9942,75981
1
Certain balances which are part of the guarantee with the NZ Branch are not included as off-balance sheet contingent liabilities, reflecting their treatment in RWA
calculations as components of on-balance sheet or counterparty credit risk exposure.
Additional mortgage information
Residential mortgages by LVR as at 31 March 2023
LVRs are calculated as the current exposure divided by the Banking Group’s valuation of the associated residential property at origination.
The Banking Group utilises data from its loan system to obtain origination valuations. For loans originated prior to 1 January 2008, or those
originated outside of the loan system, the origination valuation is not recorded in the system and is therefore, due to system limitations, not
available for disclosure. For these loans, the Banking Group utilises the earliest valuation recorded as the closest available alternative to estimate
an origination valuation.
Exposures for which no LVR is available have been included in the ‘Exceeds 90%’ category in accordance with the requirements of the Order.
THE BANKING GROUP
31 Mar 23
Does notExceeds 60%Exceeds 70%Exceeds 80%
LVR range ($ millions)
exceed 60%and not 70%and not 80% and not 90%Exceeds 90%Total
On-balance sheet exposures 31,944 14,745 13,705 3,266 1,533 65,193
Undrawn commitments and other off-balance
sheet exposures
7,005 1,011 599 100 162
8,877
Value of exposures 38,949 15,756 14,304 3,366 1,695 74,070

Registered bank disclosures
Unaudited
Unaudited
Westpac New Zealand Limited 43
iv. Capital adequacy and regulatory liquidity ratios (continued)
Specialised lending subject to the slotting approach
The Banking Group’s specialised lending: Project and property finance credit risk exposures as at 31 March 2023
TotalMinimum
Exposures Risk-Pillar 1
After CreditRiskweightedCapital
Risk MitigationWeightAssets
1
Requirement
On-balance sheet exposures subject to the slotting approach
$ millions%$ millions$ millions
Supervisory slotting grade
Strong4,14770.003,483279
Good2,36690.002,555204
Satisfactory214115.0029524
Weak264250.0079363
Default
14---
Total on-balance sheet exposures subject to the slotting approach7,00584.787,126570
1
A scalar of 1.2 currently applies to the RWA calculation of these amounts.
Minimum
Risk-Pillar 1
Average RiskweightedCapital
EADWeightAssets
1
Requirement
Off-balance sheet exposures subject to the slotting approach$ millions%$ millions$ millions
Undrawn commitments and other off-balance sheet exposures1,32078.791,248100
Total specialised lending exposures subject to the slotting
approach
8,32583.838,374670
1
A scalar of 1.2 currently applies to the RWA calculation of these amounts
.
Credit risk exposures subject to the standardised approach
The Banking Group’s credit risk exposures subject to the standardised approach as at 31 March 2023
Calculation of on-balance sheet exposures
Total Minimum
ExposureRisk-Pillar 1
After Credit Average RiskweightedCapital
Risk MitigationWeightExposureRequirement
$ millions%$ millions$ millions
Sovereigns and central banks
13,768---
Multilateral development banks and other international organisations
1,969---
Public sector entities
2,10920.0042234
Banks
1,40942.9560548
Past due assets
41506-
Other assets
1
1,21365.8179964
Total on-balance sheet exposures20,4728.951,832146
1
Relate to property and equipment, other assets and related parties.

Registered bank disclosures
Unaudited
Unaudited
44 Westpac New Zealand Limited
iv. Capital adequacy and regulatory liquidity ratios (continued)
Calculation of off-balance sheet exposures
TotalAverageMinimum
Exposure orCreditCreditAverageRisk-Pillar 1
PrincipalConversionEquivalentRiskweightedCapital
AmountFactor AmountWeightExposureRequirement
$ millions%$ millions%$ millions$ millions
Total off balance sheet exposures subject to the
standardised approach
1,12438.7943625.531119
Counterparty credit risk for counterparties
subject to the standardised approach
Foreign exchange contracts20,304N/A71720.00143 11
Interest rate contracts65,309N/A18820.0038 4
Other-N/A--302 24
Total counterparty credit risk for counterparties
subject to the standardised approach85,613905483 39
Standardised subtotal (on and off-balance sheet)21,8132,426 194
Credit risk mitigation
The Banking Group uses a variety of techniques to reduce the credit risk arising from its lending activities (refer to Note 13.5 to the financial
statements included in the Disclosure Statement for the year ended 30 September 2022 for further details). This includes the Banking Group
establishing that it has direct, irrevocable and unconditional recourse to collateral and other credit enhancements through obtaining legally
enforceable documentation.
The Banking Group includes the effect of credit risk mitigation through eligible guarantees within the calculation applied to LGD. Due to system
limitations, the value of the guarantee is not always separately recorded, and therefore, neither this value nor a close alternative is available for
disclosure, under Clause 7 of Schedule 11 to the Order. The Banking Group does not apply any credit risk mitigation from eligible financial collateral for
exposures subject to the standardised approach or from credit derivatives as at 31 March 2023.

Registered bank disclosures
Unaudited
Unaudited
Westpac New Zealand Limited 45
iv. Capital adequacy and regulatory liquidity ratios (continued)
Equity risk
The Banking Group’s equity exposures as at 31 March 2023
Risk-Minimum Pillar 1
TotalRiskweightedCapital
ExposureWeightExposureRequirement
Equity
$ millions%$ millions$ millions
Equity holdings (not deducted from capital) included in the NZX 50 or
overseas equivalent index
-300--
All other equity holdings (not deducted from capital)
3400111
Application of Standardised Floor to Total Credit Risk RWA
BPR130 requires IRB Banks to calculate total credit risk RWA as the sum of:
The greater of:
1.2 x total RWA subject to the IRB RWA treatment (as shown in the tables in the sections Credit risk subject to the IRB approach
and Specialised lending subject to the slotting approach on pages 41 and 43); and
0.85 x total Standardised Equivalent RWA for each credit risk exposure subject to the IRB RWA treatment (commonly referred to
as the standardised floor); and
1.0 x total RWA subject to the Standardised RWA treatment.
THE BANKING GROUP
31 Mar 23
RWA for modelled exposures
RWARWA recalculatedRWA for
calculatedusing standardisedstandardisedTotal credit risk
$ millionsusing models
1,2
approachexposures
3
RWA
Total IRB and supervisory slotting exposure50,44266,340
Standardised floor56,389
RWA with floor applied56,3892,43758,826
1
A scalar of 1.2 currently applies to the RWA calculation of these amounts.
2
This amount includes $42,068 million for IRB classes and $8,374 million for supervisory slotting exposures.
3
This amount includes $2,426 million for exposures subject to the standardised approach and $11 million for equity exposures.

Registered bank disclosures
Unaudited
Unaudited
46 Westpac New Zealand Limited
iv. Capital adequacy and regulatory liquidity ratios (continued)
Operational risk
Operational risk capital requirement
The following table sets out the Banking Group’s implied risk-weighted exposures under the Standardised Approach for operational risk capital.
THE BANKING GROUP
31 Mar 23
Implied Risk-
Total Operational Risk
$ millions
weighted Exposure
Capital Requirement
Standardised Approach
Operational risk 7,040 563
Whilst the Bank has transitioned to the Standardised Approach for calculating Operational Risk capital in line with BPR150, it continues to comply
with the qualitative requirements set out in section B1 of BPR151 AMA Operational Risk.
Market risk
The Banking Group’s aggregate market risk exposure is derived in accordance with BPR140 and is calculated on a monthly basis. The end-of-period
aggregate market risk exposure is calculated from the period end balance sheet information.
For each category of market risk, the Banking Group’s peak end-of-day aggregate capital charge is derived by determining the maximum over the
six months ended 31 March 2023 of the aggregate capital charge for that category of market risk derived in accordance with BPR140.
The following table provides a summary of the Banking Group’s notional capital charges by risk type as at the reporting date and the peak end-of-
day notional capital charges by risk type for the six months ended 31 March 2023:
THE BANKING GROUP
31 Mar 23
$ millions
Implied risk-weighted exposureAggregate capital charge
End-of-period
Interest rate risk 2,078 166
Foreign currency risk- -
Equity risk- -
Peak end-of-day
Interest rate risk 3,919 314
Foreign currency risk- -
Equity risk- -

Registered bank disclosures
Unaudited
Unaudited
Westpac New Zealand Limited 47
iv. Capital adequacy and regulatory liquidity ratios (continued)
Total capital requirements
Banking Group Pillar 1 Total Capital Requirement
THE BANKING GROUP
31 Mar 23
Risk-weighted
Total Exposure
Exposure or
Implied
After Credit
Risk-weightedTotal Capital
$ millions
Risk Mitigation
1
ExposureRequirement
Total credit risk132,80358,8264,706
Operational riskN/A7,040563
Market riskN/A2,078166
Total132,80367,9445,435
1
This amount includes $103,384 million for exposures subject to IRB approach and $7,603 million for exposures subject to the slotting approach, being the
equivalent exposure under the standardised approach of $114,442 million EAD for credit risk exposures subject to IRB approach and $8,325 million EAD for
specialised lending subject to slotting approach.
Capital ratios
The following table is disclosed under the Reserve Bank’s Basel III framework in accordance with Clauses 15 and 16 of Schedule 11 to the Order and
represents the capital adequacy calculation based on the Reserve Bank BPRs.
Due to changes effective from 1 January 2022, existing capital instruments that have conversion features are no longer fully eligible as capital. In line
with the transitional phase-out schedule contained in BPR110, 75.0% of the total nominal value of affected instruments is recognisable as regulatory
capital between 1 January 2023 and 31 December 2023.
For the purposes of calculating the capital adequacy ratios for the Bank on a solo basis, a subsidiary that is not a securitisation SPV must be
consolidated with the Bank if it is a wholly-owned and wholly-funded subsidiary of the Banking Group. In this context, wholly-funded by the Bank
means there are no liabilities (including off-balance sheet obligations) to anyone other than the Bank, the Inland Revenue or trade creditors, where
aggregate exposure to trade creditors does not exceed the greater of 5% of the subsidiary’s shareholder’s equity and 1% of the subsidiary’s total
assets. Wholly-owned by the Bank means that all equity issued by the subsidiary is held by the Bank or is ultimately owned by the Bank through a
chain of ownership where each entity is 100% owned by its parent. An SPV must be consolidated with the Bank if it is required to be consolidated with
the Banking Group under the New Zealand Generally Accepted Accounting Practice and is a covered bond SPV, or an internal RMBS SPV, that is, an
SPV that is set up to securitise residential mortgage loans originated by the Bank and is funded exclusively by the Bank. The Bank’s two SPVs have been
consolidated in accordance with the Reserve Bank’s prudential requirements for the purposes of calculating solo capital.
THE BANKING GROUPTHE BANK
Reserve Bank
Minimum
%
Ratios31 Mar 2331 Mar 2231 Mar 2331 Mar 22
Common Equity Tier 1 capital ratio4.511.111.311.011.2
Tier 1 capital ratio6.012.713.312.713.2
Total capital ratio8.013.714.513.714.4
Prudential capital buffer ratio3.55.76.5N/AN/A

Registered bank disclosures
Unaudited
Unaudited
48 Westpac New Zealand Limited
iv. Capital adequacy and regulatory liquidity ratios (continued)
Capital for other material risks
The Banking Group’s internal capital adequacy assessment process identifies, reviews and measures additional material risks that must be captured
within the Banking Group’s capital adequacy assessment process. The additional material risks considered are those not captured by Pillar 1 regulatory
capital requirements and include compliance and conduct risk, liquidity risk, reputational risk, sustainability risk, financial crime risk, model risk,
deferred acquisition cost risk, strategic risk, subsidiary risk and cyber risk.
The Banking Group’s internal capital allocation for ‘other material risks’ is $372 million as at 31 March 2023 (31 March 2022: $335 million).
Ultimate Parent Bank Group Basel III capital adequacy ratios
The following table represents the capital adequacy calculation for the Ultimate Parent Bank and the Ultimate Parent Bank Group based on APRA’s
application of the Basel III capital adequacy framework.
%
31 Mar 2331 Mar 22
Ultimate Parent Bank Group (excluding entities specifically excluded by APRA)
1, 2
Common Equity Tier 1 capital ratio 12.3 11.3
Additional Tier 1 capital ratio 2.2 2.1
Tier 1 capital ratio 14.5 13.4
Tier 2 capital ratio 5.3 4.3
Total regulatory capital ratio 19.8 17.7
Ultimate Parent Bank (Extended Licensed Entity)
1, 3
Common Equity Tier 1 capital ratio 12.5 11.2
Additional Tier 1 capital ratio 2.4 2.2
Tier 1 capital ratio 14.9 13.4
Tier 2 capital ratio 5.8 4.7
Total regulatory capital ratio 20.7 18.1
1
The capital ratios represent information mandated by APRA. The capital ratios of the Ultimate Parent Bank Group are publicly available in the Ultimate Parent Bank
Group’s Pillar 3 report. This information is made available to users via the Ultimate Parent Bank’s website (www.westpac.com.au).
2
Ultimate Parent Bank Group (excluding entities specifically excluded by APRA regulations) comprises the consolidation of the Ultimate Parent Bank and its subsidiary
entities except those entities specifically excluded by APRA regulations for the purposes of measuring capital adequacy (Level 2). The head of the Level 2 group is the
Ultimate Parent Bank.
3
Ultimate Parent Bank (Extended Licensed Entity) comprises the Ultimate Parent Bank and its subsidiary entities that have been approved by APRA as being part of a
single Extended Licensed Entity for the purposes of measuring capital adequacy (Level 1).
Under APRA’s Prudential Standards, Australian Authorised Deposit-taking Institutions, including the Ultimate Parent Bank, are required to maintain
minimum ratios of capital to risk weighted assets, as determined by APRA, which are at least equal to those specified under the Basel III capital
framework. For the calculation of risk weighted assets, the Ultimate Parent Bank Group is accredited by APRA to apply advanced models. The Ultimate
Parent Bank Group uses the Advanced Internal Ratings Based approach for credit risk, the Standardised Measurement Approach for operational risk
and the internal model approach for interest rate risk in the banking book for calculating regulatory capital.
From 1 January 2023, APRA’s revised capital framework, including updated prudential standards for capital adequacy and credit risk capital, became
effective. As part of the revised framework, APRA has set a Total Common Equity Tier 1 (CET1) Requirement for Domestic Systemically Important Banks
(D-SIBs) of 10.25% (noting that APRA may apply higher CET1 requirements for an individual bank). This requirement includes a capital conservation
buffer of 4.75% applicable to D-SIBs and a base level for the countercyclical capital buffer of 1.0%. APRA indicated that it expects that D-SIBs
(including the Ultimate Parent Bank Group) will likely operate with CET1 capital ratio above 11% in normal operating conditions under the new
framework.
APRA’s prudential standards are generally consistent with the International Regulatory Framework for Banks, also known as Basel III, issued by the
BCBS, except where APRA has exercised certain discretions.
The Ultimate Parent Bank Group is required to disclose additional detailed information on its risk management practices and capital adequacy on a
quarterly basis. This information is made available to users via the Ultimate Parent Bank’s website (www.westpac.com.au),
The Ultimate Parent Bank Group (excluding entities specifically excluded by APRA regulations), and the Ultimate Parent Bank (Extended Licensed Entity
as defined by APRA), exceeded the minimum capital adequacy requirements as specified by APRA as at 31 March 2023.

Registered bank disclosures
Unaudited
Unaudited
Westpac New Zealand Limited 49
iv. Capital adequacy and regulatory liquidity ratios (continued)
Regulatory liquidity ratios
The Bank calculates liquidity ratios in accordance with BS13. Ratios are calculated daily and are part of the Bank’s management of liquidity risk.
Quarterly average ratios are produced in line with the Reserve Bank rules and guidance.
THE BANKING GOUP
%
31 Mar 2331 Dec 22
Average for the three months ended
One-week mismatch ratio
9.89.0
One-month mismatch ratio
9.08.7
Core funding ratio
88.288.6
From 31 March 2021, the Reserve Bank amended the Bank’s conditions of registration to apply an overlay to the Bank’s mismatch ratio. Effective 15
August 2022, the Reserve Bank reduced the adjustment to liquid assets by 50%, reflecting the Liquidity Review findings that there had been
improvements in the liquidity control environment and the associated risk culture.
The overlay is specified by the Reserve Bank as a requirement to discount the value of the Bank’s liquid assets by approximately 7% which at 31
March 2023 was $1.7 billion. The overlay will remain in place until the Reserve Bank is satisfied that control assurance has been completed. Refer to
Other material matters on page 27 for further detail.

Registered bank disclosures
Unaudited
Unaudited
50 Westpac New Zealand Limited
v. Concentration of credit exposures to individual counterparties
The following credit exposures are based on actual credit exposures to individual counterparties and groups of closely related counterparties.
The number of individual non-bank counterparties to which the Banking Group has an aggregate credit exposure or peak end-of-day aggregate credit
exposure that equals or exceeds 10% of the Banking Group’s Common Equity Tier 1 capital:
THE BANKING GROUP
Exposure as
at 31 March
2023
1
Peak end-of-
day exposure
over six
months to 31
March 2023
1
Exposures to non-bank counterparties
2
With a long-term credit rating of A- or A3 or above, or its equivalent
Exceeds 10% and not 15% 1 -
Exceeds 15% and not 20% 1 2
1
There are no bank counterparties with an aggregate credit exposure that equals or exceeds 10% of the Banking Group’s Common Equity Tier 1 capital. There are
no non-bank counterparties with an aggregate credit exposure that equals or exceeds 10% of the Banking Group’s Common Equity Tier 1 capital and with a long-
term credit rating of less than A- or A3, or its equivalent, or unrated.
2
A counterparty is a non-bank counterparty if it is a non-bank that is not a member of a group of closely related counterparties or it is a group of closely related
counterparties of which a bank is not the parent.
The peak end-of-day aggregate credit exposure to each individual counterparty (which are not members of a group of closely related
counterparties) or a group of closely related counterparties has been calculated by determining the maximum end-of-day aggregate amount of
actual credit exposure over the relevant six-month period, and then dividing that amount by the Banking Group’s Common Equity Tier 1 capital as at
31 March 2023.
Credit exposures to individual counterparties (not being members of a group of closely related counterparties) and to groups of closely related
counterparties exclude exposures to connected persons, to the central government or central banks of any country with a long-term credit rating of
A- or A3 or above, or its equivalent, or to any supranational or quasi-sovereign agency with a long-term credit rating of A- or A3 or above, or its
equivalent. These calculations relate only to exposures held in the financial records of the Banking Group and were calculated net of individually
assessed provisions.
vi. Insurance business
The Banking Group does not conduct any insurance business.
vii. Risk management policies
Refer to Section viii. Risk management policies of the Registered bank disclosures, Note 13. Credit risk management and Note 32. Risk management,
funding and liquidity risk and market risk included in the Banking Group Disclosure Statement for the year ended 30 September 2022 for further details on
the Banking Group’s risk management policies..

Conditions of registration
Westpac New Zealand Limited 51
Material non-compliance with conditions of registration
CoR14 non-compliance
In August 2019 the Reserve Bank commenced a thematic review of compliance with its Liquidity Policy (BS13). On 9 July 2021, the Reserve Bank
provided the Bank with final review findings in relation to the Bank. The findings identified a series of quantitative areas of non-compliance with
BS13 by the Bank which the Reserve Bank considered collectively constituted non-compliance with condition of registration 14 in a material
respect by the Bank. The Bank has undertaken remediation activity to address the identified non-compliance with BS13.
CoR22 non-compliance
Outsourcing Arrangements without required risk mitigants in place
For a period of three and a half years in relation to certain hardware and a period ranging from four and a half to seven and a half years for
operating system software, the Bank has had outsourcing arrangements without the required risk mitigants in place to ensure adequate support
services were available for certain payment systems operated by the Bank, which support some of the Bank’s payment processing services. In this
regard:
The relevant software and hardware environments ensure high availability of key frontline applications for its retail and business customers.
The failure to have the required risk mitigants in place to support these software and hardware environments was non-compliant with the
Reserve Bank’s Outsourcing Policy (BS11) and therefore with the Bank’s condition of registration 22.
Despite not having adequate support contracts in place, the Bank either continued to receive support or could have acquired support on a
non-contractual basis. The Bank also had internal teams in place to provide support in the event of issues arising with the software and
hardware.
However, if a critical problem had arisen with the software without the required risk mitigants in place, then this could have increased the
risk that the Bank may not have been able to access support to restore the relevant services within the Bank’s recovery time objectives. This
would, in turn, impact the Bank’s ability to provide certain services to business and retail customers who are using these services or business
applications. This may also impact the Bank’s ability to be administered under statutory management or to address the impact of a service or
function provider failure.
Once the non-compliances came to the Bank’s attention, internal investigations took place, and the incidents were reported to the Reserve
Bank. Remediation work is underway.
BS11 compendium requirements
From January 2021 to 11 October 2022, the Bank identified, and has remediated, a significant number of instances of non-compliance with BS11
compendium requirements which individually are not considered material. However, when considered collectively this constitutes non-
compliance with conditions of registration 22 in a material respect by the Bank.
CoR 18, 19 and 21 non-compliance
Open Bank Resolution (OBR) policy is a Reserve Bank tool for responding to the rare event of a bank failure. OBR enables authorities to re-open a
failed bank the next day under statutory management. This is achieved by ensuring that banks have operational and technical arrangements in
place so they can continue to operate should they enter into statutory management. The Bank has identified that components of its OBR
Implementation Plan (Plan) were non-compliant with the Bank’s conditions of registration in the following respects:
The Bank has not met all of the pre-positioning requirements in condition of registration 18 as the Bank does not have a fully documented
solution to reinstate customers’ access to some or all of their residual frozen funds were an event to occur.
Components of the Bank’s Plan were historically not kept up-to-date. As such the Bank has not met all of the requirements of condition of
registration 19.
The Bank’s annual testing of its Plan did not meet the requirements of condition of registration 21 as the testing methods required
strengthening to include timeframe and end-to-end enterprise testing.
As a result of the above, there is an increased risk that the Bank would not be able to close and re-open as required under the OBR policy. The
Bank’s Plan has since been updated with further work to strengthen the components underway.
Changes to conditions of registration
There have been no changes to the Bank’s conditions of registration since the reporting date for the previous disclosure statement.
On 28 April 2023 the Reserve Bank advised the Bank of proposed changes to its conditions of registration which would ease mortgage loan-to-
value ratio (LVR) restrictions. These changes are proposed to take effect from 1 June 2023 and ease LVR restrictions as follows:
from 10% limit for loans with LVR above 80% for owner occupiers, to 15% limit for loans with LVR above 80% for owner occupiers; and
from 5% limit for loans with LVR above 60% for investors, to 5% limit for loans with LVR above 65% for investors.

52 Westpac New Zealand Limited
Independent auditor’s review report
To the shareholder of Westpac New Zealand Limited
Report on the condensed consolidated interim Financial Statements and the
Supplementary Information (excluding the information relating to capital adequacy and
regulatory liquidity requirements disclosed in accordance with Schedule 11)
Our conclusion
We have reviewed the condensed consolidated interim financial statements (the “Financial Statements”) for the six
month period ended 31 March 2023 of Westpac New Zealand Limited (the “Bank”) and the entities it controlled at
31 March 2023 or from time to time during the period (together, the “Banking Group”) as required by clause 25 of
the Registered Bank Disclosure Statements (New Zealand Incorporated Registered Banks) Order 2014 (as
amended) (the “Order”) and the supplementary information disclosed in accordance with Schedules 5, 7, 13, 16
and 18 of the Order (the “Supplementary Information”), excluding the information relating to capital adequacy and
regulatory liquidity requirements disclosed in accordance with Schedule 11 of the Order contained in the half year
disclosure statement (the “Disclosure Statement”).
The Financial Statements comprise the balance sheet as at 31 March 2023, the related statement of
comprehensive income, statement of changes in equity and statement of cash flows for the six month period then
ended and explanatory notes.
Based on our review, nothing has come to our attention that causes us to believe that the accompanying:
●Financial Statements have not been prepared, in all material respects, in accordance with New Zealand
Equivalent to International Accounting Standard 34 Interim Financial Reporting (“NZ IAS 34”) and
International Accounting Standard 34 Interim Financial Reporting (“IAS 34”); and
●Supplementary Information that is required to be disclosed in accordance with Schedules 5, 7, 13, 16 and 18
of the Order:
does not present fairly, in all material respects, the matters to which it relates; or
is not disclosed, in all material respects, in accordance with those schedules.
Basis for conclusion
We conducted our review in accordance with the New Zealand Standard on Review Engagements 2410
(Revised) Review of Financial Statements Performed by the Independent Auditor of the Entity (“NZ SRE 2410
(Revised)”). Our responsibilities are further described in the Auditor’s responsibilities for the review of the
Financial Statements and Supplementary Information section of our report.
We are independent of the Banking Group in accordance with the relevant ethical requirements in New Zealand
relating to the audit of the annual financial statements, and we have fulfilled our other ethical responsibilities in
accordance with these requirements. In addition to our role as auditor, our firm carries out other services for the
Banking Group in the areas of system pre-implementation and data migration assessment, and other assurance
and audit related services. Other assurance and audit related services include assurance over compliance with
regulations and agreed upon procedures over the issue of comfort letters and debt issuance programmes. In
addition, certain partners and employees of our firm may deal with the Banking Group on normal terms within the
ordinary course of trading activities of the Banking Group. The provision of these other services and relationships
have not impaired our independence.
Responsibilities of the Directors for the Disclosure Statement
The Directors are responsible, on behalf of the Bank, for the preparation and fair presentation of the Financial
Statements in accordance with clause 25 of the Order, NZ IAS 34 and IAS 34 and for such internal control as the
Directors determine is necessary to enable the preparation of the Financial Statements and the Supplementary
Information that are free from material misstatement, whether due to fraud or error.
PricewaterhouseCoopers, PwC Tower, 15 Customs Street West, Private Bag 92162, Auckland 1142, New Zealand
T: +64 9 355 8000, pwc.co.nz

Westpac New Zealand Limited 53
In addition, the Directors are responsible on behalf of the Bank for the preparation and fair presentation of the
Disclosure Statement which includes:
●all of the information prescribed in Schedule 3 of the Order; and
●the information prescribed in Schedules 5, 7, 11, 13, 16 and 18 of the Order.
Auditor’s responsibilities for the review of the Financial Statements and Supplementary Information
Our responsibility is to express a conclusion on the Financial Statements and Supplementary Information based
on our review. NZ SRE 2410 (Revised) requires us to conclude whether anything has come to our attention that
causes us to believe that the:
●Financial Statements, taken as a whole, have not been prepared, in all material respects, in accordance with
NZ IAS 34 and IAS 34; and
●Supplementary Information that is required to be disclosed in accordance with Schedules 5, 7, 13, 16 and 18
of the Order:
does not present fairly, in all material respects, the matters to which it relates; or
is not disclosed, in all material respects, in accordance with those schedules; or
if applicable, has not been prepared, in all material respects, in accordance with any conditions of
registration relating to disclosure requirements imposed under section 74(4)(c) of the Banking
(Prudential Supervision) Act 1989.
A review in accordance with NZ SRE 2410 (Revised) is a limited assurance engagement. We perform
procedures, consisting of making enquiries, primarily of persons responsible for financial and accounting matters,
and applying analytical and other review procedures. The procedures performed in a review are substantially less
than those performed in an audit conducted in accordance with International Standards on Auditing (New
Zealand) and International Standards on Auditing and consequently do not enable us to obtain assurance that we
might identify in an audit. Accordingly, we do not express an audit opinion on the Financial Statements and
Supplementary Information.
Who we report to
This report is made solely to the Bank’s shareholder. Our review work has been undertaken so that we might
state those matters which we are required to state to them in our review report and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Bank and the
Bank’s shareholder for our review procedures, for this report, or for the conclusions we have formed.
The engagement partner on the review resulting in this independent auditor’s review report is Samuel
Shuttleworth.
For and on behalf of:
Auckland, New Zealand
Chartered Accountants
18 May 2023

54 Westpac New Zealand Limited
Independent Assurance Report
To the shareholder of Westpac New Zealand Limited
Limited assurance report on compliance with the information required on capital
adequacy and regulatory liquidity requirements
Our conclusion
We have undertaken a limited assurance engagement on Westpac New Zealand Limited (the “Bank”)’s
compliance, in all material respects, with clause 22 of the Registered Bank Disclosure Statements (New Zealand
Incorporated Registered Banks) Order 2014 (as amended) (the “Order”) which requires information prescribed in
Schedule 11 of the Order relating to capital adequacy and regulatory liquidity requirements to be disclosed in its
half year Disclosure Statement for the six month period ended 31 March 2023 (the “Disclosure Statement”).
Based on the procedures we have performed and the evidence we have obtained, nothing has come to our
attention that causes us to believe that the Bank’s information relating to capital adequacy and regulatory liquidity
requirements, included in the Disclosure Statement in compliance with clause 22 of the Order and disclosed in
note iv of the registered bank disclosures, is not, in all material respects, disclosed in accordance with Schedule
11 of the Order.
Basis for conclusion
We have conducted our engagement in accordance with Standard on Assurance Engagements (SAE) 3100
(Revised) Compliance Engagements (“SAE 3100 (Revised)”) issued by the New Zealand Auditing and Assurance
Standards Board.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion.
Directors’ responsibilities
The Directors are responsible on behalf of the Bank for compliance with the Order, including clause 22 of the
Order which requires information relating to capital adequacy and regulatory liquidity requirements prescribed in
Schedule 11 of the Order to be included in the Disclosure Statement, for the identification of risks that may
threaten compliance with that clause, controls that would mitigate those risks and monitoring ongoing compliance.
Our independence and quality management
We have complied with the independence and other ethical requirements of Professional and Ethical Standard 1
International Code of Ethics for Assurance Practitioners (including International Independence Standards) (New
Zealand) issued by the New Zealand Auditing and Assurance Standards Board, which is founded on the
fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and
professional behaviour.
We apply Professional and Ethical Standard 3 Quality Management for Firms that Perform Audits or Reviews of
Financial Statements, or Other Assurance or Related Services Engagements, which requires our firm to design,
implement and operate a system of quality management including policies or procedures regarding compliance
with ethical requirements, professional standards and applicable legal and regulatory requirements.
We are independent of the Banking Group. In addition to our role as auditor, our firm carries out other services for
the Banking Group in the areas of system pre-implementation and data migration assessment, and other audit
related services. Other audit related services include agreed upon procedures over the issue of comfort letters
and debt issuance programmes. In addition, certain partners and employees of our firm may deal with the
Banking Group on normal terms within the ordinary course of trading activities of the Banking Group. The
provision of these other services and these relationships have not impaired our independence.
Assurance practitioner’s responsibilities
Our responsibility is to express a limited assurance conclusion on whether the Bank’s information relating to
capital adequacy and regulatory liquidity requirements, included in the Disclosure Statement in compliance with
clause 22 of the Order is not, in all material respects, disclosed in accordance with Schedule 11 of the Order. SAE
3100 (Revised) requires that we plan and perform our procedures to obtain limited assurance about whether
anything has come to our attention that causes us to believe that the Bank’s information relating to capital
adequacy and regulatory liquidity requirements, included in the Disclosure Statement in compliance with clause
22 of the Order, is not, in all material respects, disclosed in accordance with Schedule 11 of the Order.
PricewaterhouseCoopers, PwC Tower, 15 Customs Street West, Private Bag 92162, Auckland 1142 New Zealand
T: +64 9 355 8000, www.pwc.co.nz

Westpac New Zealand Limited 55
In a limited assurance engagement, the assurance practitioner performs procedures, primarily consisting of
discussion and enquiries of management and others within the entity, as appropriate, and observation and walk-
throughs, and evaluates the evidence obtained. The procedures selected depend on our judgement, including
identifying areas where the risk of material non-compliance with clause 22 of the Order in respect of the
information relating to capital adequacy and regulatory liquidity requirements is likely to arise.
Given the circumstances of the engagement we:
●obtained an understanding of the process, models, data and internal controls implemented over the
preparation of the information relating to capital adequacy and regulatory liquidity requirements;
●obtained an understanding of the Bank’s compliance framework and internal control environment to ensure
the information relating to capital adequacy and regulatory liquidity requirements is in compliance with the
Reserve Bank of New Zealand’s (the “RBNZ”) prudential requirements for banks;
●obtained an understanding and assessed the impact of any matters of non-compliance with the RBNZ’s
prudential requirements for banks that relate to capital adequacy and regulatory liquidity requirements and
inspected relevant correspondence with the RBNZ;
●performed analytical and other procedures on the information relating to capital adequacy and regulatory
liquidity requirements disclosed in accordance with Schedule 11 of the Order, and considered its consistency
with the interim financial statements; and
●agreed the information relating to capital adequacy and regulatory liquidity requirements disclosed in
accordance with Schedule 11 of the Order to information extracted from the Bank’s models, accounting
records or other supporting documentation, which included publicly available information as prescribed by
clause 18 of Schedule 11 the Order.
The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in
extent than for, a reasonable assurance engagement and consequently the level of assurance obtained in a
limited assurance engagement is substantially lower than the assurance that would have been obtained had a
reasonable assurance engagement been performed. Accordingly, we do not express a reasonable assurance
opinion on compliance with the compliance requirements.
Inherent limitations
Because of the inherent limitations of an assurance engagement, together with the internal control structure, it is
possible that fraud, error or non-compliance with the compliance requirements may occur and not be detected.
A limited assurance engagement on the Bank's information relating to capital adequacy and regulatory liquidity
requirements prescribed in Schedule 11 of the Order to be included in the Disclosure Statement in compliance
with clause 22 of the Order does not provide assurance on whether compliance will continue in the future.
Use of report
This report has been prepared for use by the Bank’s shareholder, for the purpose of establishing that these
compliance requirements have been met.
Our report should not be used for any other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility for any reliance on this report
to anyone other than the Bank and the Bank’s shareholder, or
for any purpose other than that for which it was prepared.
The engagement partner on the engagement resulting in this independent assurance report is Samuel
Shuttleworth.
Auckland, New Zealand
Chartered Accountants
18 May 2023

56 Westpac New Zealand Limited