WBC – NZ Banking Group Disclosure Statement – 31 Mar 2023

Classification: PROTECTED
ASX
Release


25 May 2023

Westpac Banking Corporation – New Zealand Banking Group Disclosure
Statement

Westpac Banking Corporation (“Westpac”) today provides the attached Westpac New
Zealand Banking Group 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

Classification: PROTECTED

Classification: PROTECTED
This page has been intentionally left blank
2 Westpac Banking Corporation - New Zealand Banking Group

Contents
Westpac Banking Corporation - New Zealand Banking Group 3
Glossary of terms4
Directors’ and the Chief Executive Officer, NZ Branch’s 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 preparation10
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 reporting25
Registered bank disclosures
i. General information27v. Insurance business39
ii. Additional financial disclosures30vi. Risk management policies39
iii. Asset quality36
iv. Credit and market risk exposures and capital
adequacy
37
Conditions of registration40
Independent auditor’s review report41
Independent assurance report43

Glossary of terms
4 Westpac Banking Corporation - New Zealand Banking Group
Certain information contained in this Disclosure Statement is required by the Registered Bank Disclosure Statements (Overseas Incorporated
Registered Banks) Order 2014 (as amended) (‘Order’).
In this Disclosure Statement, reference is made to five main reporting groups:
Overseas Bank – refers to Westpac Banking Corporation;
Overseas Banking Group – refers to the Overseas Bank and all other entities included in the Overseas Bank’s group for the purposes of public
reporting of the group financial statements in Australia;
NZ Branch – refers to the New Zealand business (as defined in the Order) of the Overseas Bank;
Westpac New Zealand – refers to Westpac New Zealand Limited; and
NZ Banking Group – refers to the financial reporting group (as defined in the Order) of the Overseas Bank. Controlled entities of the NZ Banking
Group are set out in Note 22 to the financial statements included in the Disclosure Statement for the year ended 30 September 2022 and
changes to the NZ Banking Group since 30 September 2022 are included in Note 10.
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
APRAAustralian Prudential Regulation AuthorityFXForeign exchange
BPRsBanking Prudential Requirements
IAPIndividually assessed provisions
BPS ActBanking (Prudential Supervision) Act 1989
IRBInternal ratings-based
CAPCollectively assessed provisionsLVRLoan-to-value ratio
CB
Programme
Westpac New Zealand’s Global Covered Bond
Programme
NZ IFRS
New Zealand equivalents to International
Financial Reporting Standards
ECLExpected credit lossesReserve BankReserve Bank of New Zealand
Fidelity LifeFidelity Life Assurance Company Limited
Westpac Life
Westpac Life-NZ- Limited (renamed Fidelity
Insurance Limited on 28 February 2022)
Financial
statements
Condensed consolidated interim financial
statements
WSNZLWestpac Securities NZ Limited
FVISFair value through income statement

Directors’ and the Chief Executive Officer, NZ Branch’s statement
Westpac Banking Corporation - New Zealand Banking Group 5
Each Director of the Overseas Bank and the Chief Executive Officer, NZ Branch, believes, after due enquiry, that, as at the date on which this Disclosure
Statement is signed, the Disclosure Statement:
(a) contains all information that is required by the Order; and
(b) is not false or misleading.
Each Director of the Overseas Bank and the Chief Executive Officer, NZ Branch, believes, after due enquiry, that, over the six months ended 31
March 2023:
(a) the Overseas Bank has complied in all material respects with each condition of registration that applied during that period; and
(b) except as noted on page 29 under the sub-heading ‘Overseas Bank risk management’, the NZ Branch and other members of the NZ Banking Group
had systems in place to monitor and control adequately the material risks of relevant members of the NZ Banking Group, including credit risk,
concentration of credit risk, interest rate risk, currency risk, equity risk, liquidity risk and other business risks, and that those systems were being
properly applied. For this purpose, a relevant member of the NZ Banking Group means a member of the NZ Banking Group that is not a member of
Westpac New Zealand’s Banking Group, as defined in Westpac New Zealand's Disclosure Statement for the six months ended 31 March 2023.
The Disclosure Statement has been signed on behalf of all of the Directors by Catherine McGrath, Chief Executive Officer, Westpac New Zealand,
and by Christopher Leuschke as Chief Executive Officer, NZ Branch.
Catherine McGrath
Christopher Leuschke
Dated this 24
th
day of May 2023

Income statement for the six months ended 31 March 2023
6 Westpac Banking Corporation - New Zealand Banking Group
NZ BANKING GROUP
Six MonthsSix Months
EndedEnded
31 Mar 2331 Mar 22
$ millionsNoteUnauditedUnaudited
Interest income:
Calculated using the effective interest method2 2,881 1,608
Other2 89 32
Total interest income2 2,970 1,640
Interest expense2 (1,573) (542)
Net interest income 1,397 1,098
Non-interest income
Net fees and commissions3 91 95
Net wealth management and insurance3 18 44
Trading3 27 88
Other3 1 133
Total non-interest income 137 360
Net operating income 1,534 1,458
Operating expenses4 (649) (579)
Impairment (charges)/benefits5 (154) 15
Profit before income tax 731 894
Income tax expense (206) (216)
Net profit attributable to the owner of the NZ Banking Group 525 678
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
NZ BANKING GROUP
Six MonthsSix Months
EndedEnded
31 Mar 2331 Mar 22
$ millions
UnauditedUnaudited
Net profit attributable to the owner of the NZ Banking Group 525 678
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 (10) 259
Transferred to income statement:
Cash flow hedging instruments (68) 21
Income tax on items taken to or transferred from equity:
Investment securities (13) 51
Cash flow hedging instruments 22 (79)
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) (24) 77
Total comprehensive income attributable to the owner of the NZ Banking Group 501 755
The above statement of comprehensive income should be read in conjunction with the accompanying notes.

Balance sheet as at 31 March 2023
Westpac Banking Corporation - New Zealand Banking Group 7
NZ BANKING GROUP
31 Mar 2330 Sep 22
$ millionsNote
UnauditedAudited
Assets
Cash and balances with central banks 11,367 11,162
Collateral paid 89 87
Trading securities and financial assets measured at FVIS 4,374 3,501
Derivative financial instruments 4,406 9,383
Investment securities 6,763 5,623
Loans6 98,622 97,392
Other financial assets 1,343 644
Due from related entities 4,200 6,609
Property and equipment 401 402
Deferred tax assets 126 68
Intangible assets 934 834
Other assets 110 75
Total assets 132,735 135,780
Liabilities
Collateral received 412 724
Deposits and other borrowings8 82,566 80,848
Other financial liabilities 8,010 5,607
Derivative financial instruments 4,189 6,777
Due to related entities 4,137 8,292
Debt issues9 19,801 19,933
Current tax liabilities 93 86
Provisions 243 257
Other liabilities 360 376
Loan capital 2,437 2,576
Total liabilities 122,248 125,476
Net assets 10,487 10,304
Head office account
Branch capital 1,300 1,300
Retained profits 1,389 1,324
Total head office account 2,689 2,624
NZ Banking Group equity
Share capital 6,045 6,045
Reserves 114 138
Retained profits 1,639 1,497
Total NZ Banking Group equity 7,798 7,680
Total equity attributable to the owner of the NZ Banking Group 10,487 10,304
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 Banking Corporation - New Zealand Banking Group
NZ BANKING GROUP
NZ BRANCHOTHER MEMBERS OF THE NZ BANKING GROUP
Head Office AccountReserves
InvestmentCash Flow
BranchRetained Share SecuritiesHedgeRetainedTotal
$ millions
Capital ProfitsCapital ReserveReserveProfitsEquity
As at 30 September 2021 (Audited) 1,300 1,187 488 (60)63 7,226 10,204
Six months ended 31 March 2022 (Unaudited)
Net profit attributable to the owner of the NZ Banking
Group
-47 - - - 631 678
Net gains/(losses) from changes in fair value
- - - (182)259 - 77
Income tax effect - - - 51 (73) - (22)
Transferred to income statement - - - - 21 - 21
Income tax effect - - - - (6) - (6)
Remeasurement of defined benefit obligations
- - - - - 9 9
Income tax effect - - - - - (2) (2)
Total comprehensive income for the
six months ended 31 March 2022-47 - (131)201 638 755
Transactions with owner:
Dividends paid on ordinary shares - - - - - (972) (972)
As at 31 March 2022 (Unaudited) 1,300 1,234 488 (191)264 6,892 9,987
As at 30 September 2022 (Audited) 1,300 1,324 6,045 (285) 423 1,497 10,304
Six months ended 31 March 2023 (Unaudited)
Net profit attributable to the owner of the NZ Banking
Group
- 65 - - - 460 525
Net gains/(losses) from changes in fair value
- - - 45 (10) - 35
Income tax effect - - - (13) 3 - (10)
Transferred to income statement - - - - (68) - (68)
Income tax effect - - - - 19 - 19
Remeasurement of defined benefit obligations
- - - - - - -
Income tax effect - - - - -
-
-
Total comprehensive income for the
six months ended 31 March 2023 - 65 - 32 (56) 460 501
Transactions with owner:
Dividends paid on ordinary shares (refer to Note 10) - - - - - (318) (318)
As at 31 March 2023 (Unaudited) 1,300 1,389 6,045 (253) 367 1,639 10,487
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 Banking Corporation - New Zealand Banking Group 9
NZ BANKING GROUP
Six MonthsSix Months
EndedEnded
31 Mar 2331 Mar 22
$ millionsNoteUnauditedUnaudited
Cash flows from operating activities
Interest received 2,969 1,649
Interest paid (1,351) (485)
Non-interest income received 448 372
Operating expenses paid (639)(524)
Income tax paid (247)(248)
Cash flows from operating activities before changes in operating assets and liabilities 1,180 764
Net (increase)/decrease in:
Collateral paid (2)43
Trading securities and financial assets measured at FVIS (1,223) 400
Loans (1,284) (1,640)
Other financial assets -(7)
Due from related entities 14 (1,286)
Other assets 1 1
Net increase/(decrease) in:
Collateral received (312)(120)
Deposits and other borrowings 1,718 1,991
Other financial liabilities 1,747 (1,041)
Due to related entities 18 48
Other liabilities 4 1
Net movement in external and related entity derivative financial instruments (367) 457
Net cash provided by/(used in) operating activities 1,494 (389)
Cash flows from investing activities
Purchase of investment securities (1,119) (707)
Proceeds from investment securities 35 150
Net movement in life insurance assets -60
Purchase of capitalised computer software (118)(66)
Purchase of property and equipment (26)(10)
Proceeds from disposal of controlled entities -422
Net cash provided by/(used in) investing activities (1,228) (151)
Cash flows from financing activities
Net movement in due to related entities (76)11
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 shareholders10 (318)(972)
Net cash provided by/(used in) financing activities (143)3,152
Net increase/(decrease) in cash and cash equivalents 123 2,612
Cash and cash equivalents at beginning of the period 11,261 9,145
Cash and cash equivalents at end of the period 11,384 11,757
Cash and cash equivalents at end of the period comprise:
Cash on hand 454 488
Balances with central banks 10,913 11,238
Interbank lending classified as cash and cash equivalents 17 31
Cash and cash equivalents at end of the period 11,384 11,757
The above statement of cash flows should be read in conjunction with the accompanying notes.

Notes to the financial statements
10 Westpac Banking Corporation - New Zealand Banking Group
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 24 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 NZ 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 NZ 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 NZ Banking Group.

Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group 11
Note 2 Net interest income
NZ 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 3 -
Investment securities 70 39
Loans 2,505 1,534
Due from related entities 59 1
Total interest income calculated using the effective interest method 2,881 1,608
Other
Trading securities and financial assets measured at FVIS 89 32
Total other 89 32
Total interest income 2,970 1,640
Interest expense
Calculated using the effective interest method
Collateral received 8 1
Deposits and other borrowings 1,039 240
Due to related entities 42 9
Debt issues 107 73
Loan capital 70 62
Other financial liabilities 103 13
Total interest expense calculated using the effective interest method 1,369 398
Other
Deposits and other borrowings 66 17
Debt issues 96 6
Other interest expense
1
42 121
Total other 204 144
Total interest expense 1,573 542
Net interest income 1,397 1,098
1
Includes the net impact of Treasury's interest rate and liquidity management activities.

Notes to the financial statements
12 Westpac Banking Corporation - New Zealand Banking Group
Note 3 Non-interest income5967-2 04-18
NZ BANKING GROUP
Six MonthsSix Months
EndedEnded
31 Mar 2331 Mar 22
$ millions
NoteUnauditedUnaudited
Net fees and commissions
Facility fees 24 22
Transaction fees and commissions 97 94
Other non-risk fee income 9 11
Fees and commissions income 130 127
Credit card loyalty programmes (20) (18)
Transaction fees and commissions related expenses (19) (14)
Fees and commissions expenses (39) (32)
Net fees and commissions 91 95
Net wealth management and insurance
Net wealth management income 18 18
Net insurance income and change in policy liabilities
1
- 26
Total net wealth management and insurance 18 44
Trading 27 88
Other
Net ineffectiveness on qualifying hedges (1) 7
Net gain on disposal of controlled entity
1
- 126
Other 2 -
Total other 1 133
Total non-interest income 137 360
1
On 28 February 2022, the sale of Westpac Life (renamed Fidelity Insurance Limited on 28 February 2022) to Fidelity Life was completed. As such, from 1 March
2022, the NZ Banking Group does not conduct any insurance business.
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:
NZ BANKING GROUP
$ millions
Consumer Banking
and Wealth
Institutional and
Business Banking
Financial Markets,
International Trade
and Payments
Reconciling
ItemsTotal
Six months ended 31 March 2023 (Unaudited)
Fees and commissions income
Facility fees 14 8 2 - 24
Transaction fees and commissions 66 28 (2) 5 97
Other non-risk fee income 2 6 6 (5) 9
Fees and commissions income 82 42 6 - 130
Fees and commissions expenses (39) - - - (39)
Net fees and commissions income 43 42 6 - 91
Wealth management income - - - 18 18
Six months ended 31 March 2022 (Unaudited)
Fees and commissions income
Facility fees 13 8 1 - 22
Transaction fees and commissions 68 21 (2) 7 94
Other non-risk fee income 2 6 8 (5) 11
Fees and commissions income 83 35 7 2 127
Fees and commissions expenses (31) - - (1) (32)
Net fees and commissions income 52 35 7 1 95
Wealth management income - - - 18 18

Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group 13
Note 4 Operating expenses
NZ BANKING GROUP
Six monthsSix months
Ended Ended
31 Mar 2331 Mar 22
$ millions
UnauditedUnaudited
Staff expenses
1
342 317
Lease expenses 13 9
Depreciation 42 46
Technology services and telecommunications
1
106 85
Purchased services 54 47
Software amortisation costs 18 21
Related entities - management fees 6 6
Other 68 48
Total operating expenses
649 579
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 $337 million to $317 million and a corresponding increase in
technology services and telecommunications from $65 million to $85 million.
Note 5 Impairment charges/(benefits)
NZ 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 NZ Banking Group.

Notes to the financial statements
14 Westpac Banking Corporation - New Zealand Banking Group
Note 6 Loans
NZ BANKING GROUP
31 Mar 2330 Sep 22
$ millions
UnauditedAudited
Residential mortgages 65,223 63,827
Other retail 2,737 2,829
Corporate 31,030
31,015
Other 173
121
Total gross loans 99,163 97,792
Provision for ECL on loans (refer to Note 7) (541) (400)
Total net loans 98,622 97,392
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 NZ 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 NZ
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 Banking Corporation - New Zealand Banking Group 15
Note 7 Provision for expected credit losses (continued)
The following tables reconcile the provision for ECL on loans and credit commitments for the NZ Banking Group.
NZ 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) 86 330 94 31 541
Provision for ECL on credit commitments 15 33 - - 48
Total provision for ECL on loans and credit commitments as
at 31 March 2023
101 363 94 31 589

Notes to the financial statements
16 Westpac Banking Corporation - New Zealand Banking Group
Note 7 Provision for expected credit losses (continued)
NZ 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) 87 217 69 27 400
Provision for ECL on credit commitments 16 23 - - 39
Total provision for ECL on loans and credit commitments as
at 30 September 2022
103 240 69 27 439

Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group 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:
NZ 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.
NZ 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 Banking Corporation - New Zealand Banking Group
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 NZ 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 NZ 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 NZ 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).
NZ 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 Banking Corporation - New Zealand Banking Group 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 NZ Banking Group as at 31 March 2023 and 30 September 2022.
NZ 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 NZ 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 $4 billion (30 September 2022: increased by $0.8 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 $3.6 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 of $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 Banking Corporation - New Zealand Banking Group
Note 8 Deposits and other borrowings-2 04-18
NZ 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
NZ 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 NZ Banking Group are set out in Note 22 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 controlled entity. The transaction resulted in a gain on sale of $126 million.
On 17 February 2023, Westpac New Zealand Group Limited declared and paid a dividend of $311 million to Westpac Overseas Holdings No.2 Pty
Limited.
On 29 March 2023, BT Financial Group (NZ) Limited declared and paid a dividend of $7 million to Westpac Equity Holdings Pty Limited.

Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group 21
Note 11 Fair values of financial assets and financial liabilities
Fair Valuation Control Framework
The NZ 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 Overseas Banking 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 NZ Banking Group categorises all fair value instruments according to the hierarchy described below.
Valuation techniques
The NZ 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 categoryIncludesValuation
Exchange traded
products
Derivative financial
instruments
Due from related
entities
Due to related entities
Exchange traded
interest rate futures -
derivative financial
instruments
FX products
Derivative financial
instruments
FX spot contracts
Debt
instruments
Trading securities and
financial assets
measured at FVIS
Investment securities
Other financial liabilities
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.

Notes to the financial statements
22 Westpac Banking Corporation - New Zealand Banking Group
Note 11 Fair values of financial assets and financial liabilities (continued)
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.
InstrumentBalance sheet categoryIncludesValuation
Interest rate
products
Derivative financial instruments
Due from related entities
Due to related entities
Interest rate swaps,
forwards and options
– derivative financial
instruments
Industry standard valuation models are used to calculate the
expected future value of payments by product, which is
discounted back to a present value. The model’s interest rate
inputs are benchmark interest rates and active broker quoted
interest rates in the swap, bond and futures markets. Interest
rate volatilities are sourced from brokers and consensus data
providers. If consensus prices are not available, these are
classified as Level 3 instruments.
FX products
Derivative financial instruments
Due from related entities
Due to related entities
FX swaps and FX
forward contracts –
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.
Asset backed
debt instruments
Trading securities and financial
assets measured at FVIS
Investment securities
Asset backed securities
Valued using an industry approach to value floating rate debt
with prepayment features. The main inputs to the model are the
trading margin and the weighted average life of the security.
These inputs are sourced from a consensus data provider. 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
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 from these sources, these are classified
as 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 NZ Banking Group’s implied
creditworthiness.

Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group 23
Note 11 Fair values of financial assets and financial liabilities (continued)
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.
InstrumentBalance sheet categoryIncludesValuation
Interest rate
derivatives
Derivative financial
instruments
Non-vanilla interest
rate (inflation
indexed) derivatives
and long-dated NZD
caps
Valued using industry standard valuation models utilising
observable market inputs which are determined separately
for each parameter. Where unobservable, inputs will be set
with reference to an observable proxy.
The following table summarises the attribution of financial instruments measured at fair value to the fair value hierarchy:
NZ BANKING GROUP
31 Mar 2330 Sep 22
UnauditedAudited
$ millions
Level 1Level 2Level 3
1
TotalLevel 1Level 2Level 3
1
Total
Financial assets measured at fair value on a
recurring basis
Trading securities and financial assets measured at FVIS 727 3,647 - 4,374 335 3,166 - 3,501
Derivative financial instruments - 4,406 - 4,406 1 9,382 - 9,383
Investment securities 2,304 4,459 - 6,763 1,982 3,641 - 5,623
Due from related entities 4 1,645 - 1,649 5 4,040 - 4,045
Total financial assets measured at fair value 3,035 14,157 - 17,192 2,323 20,229 - 22,552
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 305 1,281 - 1,586 598 352 - 950
Derivative financial instruments - 4,187 2 4,189 2 6,773 2 6,777
Due to related entities 2 2,417 - 2,419 3 6,513 - 6,516
Debt issues at fair value - 3,907 - 3,907 - 5,490 - 5,490
Total financial liabilities measured at fair value 307 14,588 2 14,897 603 22,067 2 22,672
1
Balances within this category of the fair value hierarchy are not considered material to the total derivative financial instruments balances.
There were no material changes in fair values estimated using a valuation technique incorporating significant non-observable inputs that were
recognised in the income statement or the statement of comprehensive income of the NZ Banking Group during the six months ended 31 March 2023
(30 September 2022: no material changes in fair value).
Analysis of movements between fair value hierarchy levels
The NZ 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).

Notes to the financial statements
24 Westpac Banking Corporation - New Zealand Banking Group
Note 11 Fair values of financial assets and financial liabilities (continued)
Financial instruments not measured at fair value
The following table summarises the estimated fair value of the NZ Banking Group’s financial instruments not measured at fair value:
NZ 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 11,367 11,367 11,162 11,162
Collateral paid 89 89 87 87
Loans 98,622 97,557 97,392 96,041
Other financial assets 1,343 1,343 644 644
Due from related entities 2,551 2,551 2,564 2,564
Total financial assets not measured at fair value 113,972 112,907 111,849 110,498
Financial liabilities not measured at fair value
Collateral received 412 412 724 724
Deposits and other borrowings 79,770 79,755 77,909 77,895
Other financial liabilities 6,424 6,424 4,657 4,657
Due to related entities 1,718 1,718 1,776 1,776
Debt issues
1
15,894 15,670 14,443 14,242
Loan capital
1
2,437 2,254 2,576 2,428
Total financial liabilities not measured at fair value 106,655 106,233 102,085 101,722
1
The estimated fair value of debt issues and loan capital includes the impact of changes in the NZ Banking Group's credit spreads since origination.
A detailed description of how fair value is derived for financial instruments not measured at fair value is disclosed in Note 24 of the financial statements
included in the Disclosure Statement for the year ended 30 September 2022.5967-2 04-18
Note 12 Credit related commitments, contingent assets and contingent liabilities
NZ BANKING GROUP
31 Mar 2330 Sep 22
$ millions
UnauditedAudited
Letters of credit and guarantees 1,100 1,025
Commitments to extend credit 27,249 27,904
Total undrawn credit commitments 28,349 28,929
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 NZ 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 NZ 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.

Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group 25
Note 12 Credit related commitments, contingent assets and contingent liabilities (continued)
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.
The NZ Banking Group has potential exposure relating to warranties, indemnities and other commitments it has provided to Fidelity Life and
Westpac Life in connection to the sale of Westpac Life on 28 February 2022. The warranties, indemnities and other commitments cover a range of
matters and risks, including certain accounting, compliance and taxation matters.
Note 13 Segment reporting
The NZ Banking Group operates predominantly in the Consumer Banking and Wealth, Institutional and Business Banking and Financial Markets,
International Trade and Payments 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 NZ 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 and has been included within reconciling items in the table below.
The NZ Banking Group’s operating segments are defined by the customers they serve and the services they provide. The NZ Banking Group has
identified the following main operating segments:
Consumer Banking and Wealth provides financial services predominantly for individuals;
Institutional and Business Banking provides a broad range of financial services for commercial, corporate, property finance, agricultural,
institutional and government customers; and
Financial Markets provides foreign exchange, interest rate derivatives, government and credit products, commodities, carbon and energy
capabilities. International Trade and Payments provide international trade solutions, payments products and services to consumer, business
and institutional 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/aggregation of the results, assets and liabilities of the NZ Banking Group’s controlled entities in the
preparation of the aggregated financial statements of the NZ Banking Group; and
results of certain business units excluded for management reporting purposes, but included within the aggregated financial statements of
the NZ Banking Group for statutory financial reporting purposes.

Notes to the financial statements
26 Westpac Banking Corporation - New Zealand Banking Group
Note 13 Segment reporting (continued)
NZ BANKING GROUP
$ millions
Consumer
Banking and
Wealth
Institutional
and Business
Banking
Financial
Markets,
International
Trade and
Payments
Reconciling
Items
Total
Six months ended 31 March 2023 (Unaudited)
Net interest income61460223158
1,397
Non-interest income56
5755(31)137
Net operating income before operating expenses and
impairment charges
670659781271,534
Operating expenses(341)(247)(17)(44)
(649)
Impairment (charges)/benefits(48)(106)--
(154)
Profit before income tax2813066183731
Six months ended 31 March 2022 (Unaudited)
Net interest income55953720(18)
1,098
Non-interest income6952
52187360
Net operating income before operating expenses and
impairment charges
628589721691,458
Operating expenses(317)(204)(16)(42)
(579)
Impairment (charges)/benefits55-5
15
Profit before income tax31639056132894
As at 31 March 2023 (Unaudited)
Total gross loans59,41439,592451(294)99,163
Total deposits and other borrowings44,05135,718-2,79782,566
As at 30 September 2022 (Audited)
Total gross loans57,96839,684556(416)97,792
Total deposits and other borrowings43,57434,334-2,94080,848

Registered bank disclosures
Unaudited
Unaudited
Westpac Banking Corporation - New Zealand Banking Group 27
This section contains the additional disclosures required by the Registered Bank Disclosure Statements (Overseas Incorporated Registered Banks)
Order 2014 (as amended).
i. General information
Guarantee arrangements
No material obligations of the Overseas Bank that relate to the NZ Branch are guaranteed as at the date the Directors and the Chief Executive
Officer, NZ Branch signed this Disclosure Statement.
Directors
The Directors of the Overseas Bank at the time this Disclosure Statement was signed were:
John McFarlane, MA, MBA – Chairman
Peter King, BEc, FCA – Managing Director & Chief Executive Officer
Tim Burroughs, MA (Hons), B Psy (Hons), FCA, FAICD
Nerida Caesar, BCom, MBA, GAICD
Audette Exel AO, BA, LLB (Hons)
Michael Hawker AM, BSc, FAICD, SF Fin, FAIM, FloD
Chris Lynch, BCom, MBA, FCPA
Peter Nash, BCom, FCA, F Fin
Nora Scheinkestel, LLB (Hons), PhD, FAICD
Margaret (Margie) Seale, BA, FAICD
Michael Ullmer AO, BSc, FAICD, FCA, SF Fin
Changes to Directorate
There have been changes in the composition of the Board of Directors of the Overseas Bank since 30 September 2022, as follows:
Peter Marriott, a Non-executive Director of the Overseas Bank, retired from the Board at the conclusion of the 2022 Annual General Meeting, held
on 14 December 2022.
Tim Burroughs and Michael Ullmer AO were appointed as Non-executive Directors of the Overseas Bank on 10 March 2023 and 3 April 2023
respectively.
Chief Executive Officer, NZ Branch
Christopher Leuschke, BCOM, NZFMA (Chair)
Responsible person
All the Directors named above have authorised in writing Catherine McGrath, Chief Executive Officer, Westpac New Zealand to sign this Disclosure
Statement on the Directors’ behalf in accordance with section 82 of the BPS Act.
Auditor
PricewaterhouseCoopers
PwC Tower, Level 27
15 Customs Street West
Auckland, New Zealand
Credit ratings
The Overseas 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 and the Chief Executive Officer, NZ Branch signed this Disclosure Statement:
Rating AgencyCurrent Credit RatingRating Outlook
Fitch Ratings
Moody’s Investors Service
S&P Global Ratings
A+
Aa3
AA-
Stable
Stable
Stable

Registered bank disclosures
Unaudited
Unaudited
28 Westpac Banking Corporation - New Zealand Banking Group
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 Westpac New Zealand under section 95 of the Banking (Prudential Supervision) Act 1989
requiring Westpac New Zealand to supply two external reviews to the Reserve Bank (the ‘Risk Governance Review’ and the ‘Liquidity Review’). These
reviews only applied to Westpac New Zealand and not to the Overseas Bank or its NZ Branch.
The Risk Governance Review related to the effectiveness of Westpac New Zealand’s risk governance. This review, completed by Oliver Wyman
Limited (Oliver Wyman) in November 2021, identified deficiencies in Westpac New Zealand’s risk governance practices and operations which
Westpac New Zealand sought to address through a programme of work overseen by the Westpac New Zealand Board.
Oliver Wyman (on engagement from Westpac New Zealand) delivered an independent assurance report on Westpac New Zealand’s remediation to
Westpac New Zealand and the Reserve Bank in December 2022. In April 2023, the Reserve Bank acknowledged the decision of Westpac New
Zealand’s Board to approve closure of the Risk Governance programme of work, noted the improvements made by Westpac New Zealand to date
and that any remaining activity will be overseen by Westpac New Zealand’s Board Risk and Compliance Committee.
The Liquidity Review related to the effectiveness of Westpac New Zealand’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 Westpac New Zealand’s continuous improvement activity. Since
then, Westpac New Zealand has undertaken further assurance work and continues to review and enhance the control framework.
From 31 March 2021, the Reserve Bank amended Westpac New Zealand’s conditions of registration, requiring Westpac New Zealand 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, Westpac New Zealand 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 Westpac New Zealand’s expectations and those of the regulators.
Reserve Bank’s Outsourcing Policy
Condition of registration 22 requires Westpac New Zealand 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. Westpac New Zealand is completing a large-scale,
multi-year, complex programme of work to become fully compliant by the compliance date. Westpac New Zealand 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.
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 consultation period closed on 16 November 2022. Final policy decisions are expected to be announced in the second half of 2023.
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.
Overseas Bank and APRA enforceable undertaking on risk governance remediation
The Overseas Bank’s CORE program is delivering the Integrated Plan required by the enforceable undertaking (EU) entered into with APRA in
December 2020 in relation to the Overseas Bank’s risk governance remediation and supporting the strengthening of the Overseas Bank’s risk
governance, accountability, and culture. Execution of the CORE program is ongoing and 75% of the activities in the Integrated Plan have been
assessed as complete and effective by the Independent Reviewer.

Registered bank disclosures
Unaudited
Unaudited
Westpac Banking Corporation - New Zealand Banking Group 29
i. General information (continued)
Promontory Australia, as the appointed Independent Reviewer, provides quarterly reports to APRA on the Overseas Bank’s compliance with the EU
and the Integrated Plan. Promontory Australia has provided nine reports to APRA so far, with its next report due in July 2023. These reports are
published on the Overseas Bank’s website every six months at www.westpac.com.au/about-westpac/media/core with the latest reports released on
8 May 2023.
Overseas Bank risk management
The Overseas Bank is continuing to invest in strengthening its end-to-end management of risk. A range of shortcomings and areas for improvement
in the Overseas Banking Group’s risk governance have been highlighted in reviews concluded in prior years. These include embedding its risk
management framework, policies, systems, and the three lines of defence model, data quality and management, product governance, prudential
compliance management and associated control frameworks and its risk capabilities.
APRA phasing out reliance on Committed Liquidity Facility
On 10 September 2021, APRA announced its expectation that authorised deposit-taking institutions reduce their Committed Liquidity Facility (CLF)
usage to zero in stages. In line with APRA’s expectations, on 1 January 2023, the Overseas Bank’s CLF allocation has reduced to zero. To replace the
reduction in the CLF, the Overseas Bank has increased its holdings of High Quality Liquid Assets.
ASIC’s civil proceedings against the Overseas Bank relating to interest rate hedging activity
On 5 May 2021, ASIC filed civil proceedings against the Overseas Bank alleging that it had engaged in insider trading and unconscionable conduct
and failed to comply with its Australian financial services licence obligations. The allegations relate to interest rate hedging activity during the
Overseas Bank’s involvement in the 2016 Ausgrid privatisation transaction. The Overseas Bank has filed its response to ASIC’s claim. A hearing date
for this matter has been set down for 18 March 2024.
Australian Transaction Reports and Analysis Centre (AUSTRAC) related class action against the Overseas Bank
The Overseas Bank is defending a class action proceeding which was commenced in December 2019 in the Federal Court of Australia on behalf of
certain investors who acquired an interest in the Overseas Bank securities between 16 December 2013 and 19 November 2019. The proceeding
involves allegations relating to market disclosure issues connected to the Overseas Bank’s monitoring of financial crime over the relevant period,
and matters which were the subject of the AUSTRAC civil proceedings. The damages sought on behalf of members of the class have not yet been
specified. However, in the course of a procedural hearing, the applicant indicated that a preliminary estimate of the losses that may be alleged in
respect of a subset of potential group members exceeded AUD$1 billion. While it remains unclear how the applicant will ultimately formulate their
estimate of alleged damages claimed on behalf of group members, it is possible that the claim may be higher (or lower) than the amount referred to
above. Given the time period and the nature of the claims alleged to be in question, along with the reduction in the Overseas Bank’s market
capitalisation at the time of the commencement of the AUSTRAC civil proceedings, it is likely that any total alleged damages (when, and if, ultimately
articulated by the applicant) will be significant. The Overseas Bank continues to deny both that its disclosure was inappropriate and, as such, that
any group member has incurred damage.
Disclosure statements of the NZ Banking Group and the financial statements of the Overseas Bank and the Overseas
Banking Group
Disclosure Statements of the NZ Banking Group for the last five years are available, free of charge, at the internet address www.westpac.co.nz. A
printed copy will also be made available, free of charge, upon request.
The most recently published financial statements of the Overseas Bank and the Overseas Banking Group are for the year ended 30 September 2022
and for the six months ended 31 March 2023, respectively, and can be accessed at the internet address www.westpac.com.au.

Registered bank disclosures
Unaudited
Unaudited
30 Westpac Banking Corporation - New Zealand Banking Group
ii. Additional financial disclosures
Additional information on balance sheet
NZ BANKING GROUP
31 Mar 2330 Sep 22
$ millions
Unaudited Audited
Interest earning and discount bearing assets 123,995 120,385
Interest and discount bearing liabilities 101,397 97,601
Total amounts due from related entities 4,200 6,609
Total amounts due to related entities 4,137 8,292
Total liabilities of the NZ Branch, net of amounts due to related entities 8,400 10,584
Total retail deposits of the NZ Branch - -
Financial assets pledged as collateral
The NZ 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:
NZ BANKING GROUP
31 Mar 2330 Sep 22
$ millions
UnauditedAudited
Cash 89 87
Securities pledged under repurchase agreements:
Trading securities and financial assets measured at FVIS
849 347
Investment securities 216 -
Residential mortgage-backed securities
1
6,482 4,998
Total amount pledged to secure liabilities (excluding CB Programme) 7,636 5,432
1
As at 31 March 2023, the NZ 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 within 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.
NZ BANKING GROUP
$ millions31 Mar 23
Financial assets
Cash and balances with central banks 11,367
Collateral paid 89
Trading securities and financial assets measured at FVIS 4,374
Derivative financial instruments 4,406
Investment securities 6,763
Loans 98,622
Other financial assets 1,343
Due from related entities 4,200
Total financial assets 131,164
Undrawn credit commitments
Letters of credit and guarantees 1,100
Commitments to extend credit 27,249
Total undrawn credit commitments 28,349
Total maximum credit risk exposure 159,513

Registered bank disclosures
Unaudited
Unaudited
Westpac Banking Corporation - New Zealand Banking Group 31
ii. Additional financial disclosures (continued)
NZ BANKING GROUP
$ millions31 Mar 23
On-balance sheet credit exposures
Analysis of on-balance sheet credit exposures by geographical areas
New Zealand 120,434
Overseas 11,271
Subtotal 131,705
Provision for ECL on loans (541)
Total on-balance sheet credit exposures 131,164
Analysis of on-balance sheet credit exposures by industry sector
Accommodation, cafes and restaurants 393
Agriculture 9,241
Construction 522
Finance and insurance 11,411
Forestry and fishing 476
Government, administration and defence 19,262
Manufacturing 2,274
Mining 191
Property 8,246
Property services and business services 1,174
Services 1,456
Trade 2,603
Transport and storage 1,080
Utilities 2,510
Retail lending 66,571
Other 2
Subtotal 127,412
Provision for ECL (541)
Due from related entities 4,200
Other financial assets 93
Total on-balance sheet credit exposures 131,164
Off-balance sheet credit exposures consists of
Credit risk-related instruments 28,349
Total off-balance sheet credit exposures 28,349
Analysis of off-balance sheet credit exposures by geographical areas
New Zealand 27,689
Overseas 660
Total off-balance sheet credit exposures 28,349
Analysis of off-balance sheet credit exposures by industry sector
Accommodation, cafes and restaurants 74
Agriculture 627
Construction 518
Finance and insurance 2,046
Forestry and fishing 157
Government, administration and defence 908
Manufacturing 1,516
Mining 53
Property 1,521
Property services and business services 665
Services 1,196
Trade 1,518
Transport and storage 681
Utilities 1,781
Retail lending 15,088
Total off-balance sheet credit exposures 28,349
ANZSIC has been used as the basis for disclosing industry sectors.

Registered bank disclosures
Unaudited
Unaudited
32 Westpac Banking Corporation - New Zealand Banking Group
ii. Additional financial disclosures (continued)
Additional information on concentrations of funding
NZ BANKING GROUP
$ millions31 Mar 23
Funding consists of
Collateral received 412
Deposits and other borrowings 82,566
Other financial liabilities
1
6,693
Due to related entities
2
1,700
Debt issues
3
19,801
Loan capital 2,437
Total funding 113,609
Analysis of funding by geographical area
3
New Zealand 88,548
Australia 2,425
United Kingdom 10,126
United States of America 7,261
China 2,850
Other 2,399
Total funding 113,609
Analysis of funding by industry sector
Accommodation, cafes and restaurants 453
Agriculture 1,736
Construction 2,630
Finance and insurance 42,002
Forestry and fishing 162
Government, administration and defence 3,264
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 35,403
Other
4
5,959
Subtotal 111,909
Due to related entities
2
1,700
Total funding 113,609
1
Other financial liabilities, as presented above, are in respect of securities sold under agreements to repurchase, securities sold short and interbank placements.
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 Banking Corporation - New Zealand Banking Group 33
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 NZ Banking Group’s net asset position as at
31 March 2023. The NZ 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.
NZ BANKING GROUP
31 Mar 23
Non-
Overinterest
$ millions
Up to 3
Months
Over 3
Months and
Up to 6
Months
Over 6
Months and
Up to
1 Year
Over 1
Year and
Up to
2 Years
2 YearsBearingTotal
Financial assets
Cash and balances with central banks10,913----45411,367
Collateral paid89-----89
Trading securities and financial assets measured at
FVIS
2,40532061781,510-4,374
Derivative financial instruments-----4,4064,406
Investment securities432893291,1254,788-6,763
Loans44,1859,57816,61220,1158,816(684)98,622
Other financial assets1----1,3421,343
Due from related entities2,549----1,6514,200
Total financial assets60,5749,98717,00221,31815,1147,169131,164
Non-financial assets1,571
Total assets132,735
Financial liabilities
Collateral received412-----412
Deposits and other borrowings47,24610,7279,6661,12572013,08282,566
Other financial liabilities6,56880---1,3628,010
Derivative financial instruments-----4,1894,189
Due to related entities 1,548----2,5894,137
Debt issues2,9906471,8834,18811,025(932)19,801
Loan capital----2,572(135)2,437
Total financial liabilities58,76411,45411,5495,31314,31720,155121,552
Non-financial liabilities696
Total liabilities122,248
On-balance sheet interest rate repricing gap1,810(1,467)5,45316,005797
Net derivative notional principals
Net interest rate contracts (notional):
Receivable/(payable)16,876(13,320)(530)(10,586)7,560
Net interest rate repricing gap18,686(14,787)4,9235,4198,357

Registered bank disclosures
Unaudited
Unaudited
34 Westpac Banking Corporation - New Zealand Banking Group
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 NZ 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 NZ Banking Group manages based on their contractual maturity are presented on a contractual undiscounted basis in the
following table.
NZ BANKING GROUP
31 Mar 23
OnUp to
$ millionsDemand1 Month
Over 1
Month and
Up to 3
Months
Over 3
Months and
Up to 1 Year
Over 1 Year
and Up to 5
Years
Over 5
Years
Total
Financial liabilities
Collateral received-412----412
Deposits and other borrowings41,7517,41211,51921,0261,985-83,693
Other financial liabilities2,221304-805,570-8,175
Derivative financial instruments:
Held for trading3,072-----3,072
Held for hedging purposes (net settled)-49140572814531
Held for hedging purposes (gross settled):
Cash outflow-47811,2586,9241,93410,244
Cash inflow--(3)(924)(6,205)(1,948)(9,080)
Due to related entities:
Non-derivative balances1,701---17-1,718
Derivative financial instruments:
Held for trading 2,419-----2,419
Debt issues-6881,1523,94712,7863,29821,871
Loan capital--9281472,7522,936
Total undiscounted financial liabilities51,1648,91212,89825,47221,5056,040125,991
Total contingent liabilities and commitments
Letters of credit and guarantees1,100-----1,100
Commitments to extend credit27,249-----27,249
Total undiscounted contingent liabilities and
commitments
28,349-----28,349

Registered bank disclosures
Unaudited
Unaudited
Westpac Banking Corporation - New Zealand Banking Group 35
ii. Additional financial disclosures (continued)
Liquid assets
The following table shows the NZ Banking Group’s holding of liquid assets. Liquid assets include high quality assets readily convertible to cash to
meet the NZ 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.
NZ BANKING GROUP
$ millions31 Mar 23
Cash and balances with central banks 11,367
Interbank lending 17
Supranational securities 2,383
NZ Government securities 2,460
NZ public securities 2,753
NZ corporate securities 1,706
Residential mortgage-backed securities 6,150
Available liquid assets 26,836
Overseas Banking Group profitability and size
Information on the Overseas Banking Group is from the most recently published financial statements of the Overseas Banking Group for the six
months ended 31 March 2023.
Profitability31 Mar 23
Net profit after tax for the six months ended 31 March 2023 (A$ millions)
1
4,005
Net profit after tax for the 12 month period to 31 March 2023 as a percentage of average total assets 0.6%
Total assets and equity31 Mar 23
Total assets (A$ millions)1,019,108
Percentage change in total assets over the 12 months ended 31 March 2023
5.6%
Total equity (A$ millions)72,668
1
Net profit after tax represents the amount before deductions for net profit attributable to non-controlling interests.
Reconciliation of mortgage-related amounts
The following table provides the NZ Banking Group’s reconciliation between any amounts disclosed in this Disclosure Statement that relate to
mortgages on residential property.
NZ BANKING GROUP
$ millions31 Mar 23
Residential mortgages - total gross loans (as disclosed in Note 6) 65,223
Reconciling items:
Unamortised deferred fees and expenses (297)
Fair value hedge adjustments 267
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. Credit and market
risk exposures and capital adequacy)
74,070
1
Estimate of the amount of committed exposure not expected to be drawn by the customer at the time of default.

Registered bank disclosures
Unaudited
Unaudited
36 Westpac Banking Corporation - New Zealand Banking Group
iii. Asset quality
Past due assets
NZ BANKING GROUP
$ millions31 Mar 23
Past due but not individually impaired assets
Less than 30 days past due1,318
At least 30 days but less than 60 days past due286
At least 60 days but less than 90 days past due142
At least 90 days past due309
Total past due but not individually impaired assets2,055
Movements in components of loss allowance
Refer to Note 7 for the movements in components of loss allowance.
Impact of changes in gross financial assets on loss allowances
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.
NZ 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 85,810 11,439 483 60 97,792
Transfers:
Transfers to Stage 1 3,511 (3,488) (22) (1) -
Transfers to Stage 2 (8,812) 8,893 (81) - -
Transfers to Stage 3 CAP (41) (277) 320 (2) -
Transfers to Stage 3 IAP - (6) (15) 21 -
Net further lending/(repayment) (1,824) 769 (1) 1 (1,055)
New financial assets originated 7,234 - - - 7,234
Financial assets derecognised during the period (4,083) (646) (63) (4) (4,796)
Amounts written-off - - (11) (1) (12)
Total gross carrying amount as at 31 March 2023 81,795 16,684 610 74 99,163
Provision for ECL as at 31 March 2023 (86) (330) (94) (31) (541)
Total net carrying amount as at 31 March 2023 81,709 16,354 516 43 98,622
Other asset quality information
NZ BANKING GROUP
$ millions
31 Mar 23
Undrawn commitments with individually impaired counterparties 3
Other assets under administration
-

Registered bank disclosures
Unaudited
Unaudited
Westpac Banking Corporation - New Zealand Banking Group 37
iii. Asset quality (continued)
Overseas Banking Group asset quality
Information on the Overseas Banking Group is from the most recently published financial results and Pillar 3 report of the Overseas Banking Group for the
six months ended 31 March 2023.
31 Mar 23
Total non-performing exposures
1
(A$ millions)8,230
Total non-performing exposures expressed as a percentage of total assets0.8%
Total provision for ECL on non-performing exposures
2
(A$ millions)1,393
Total provision for ECL on non-performing exposures expressed as a percentage of total non-performing exposures16.9%
Total collectively assessed provision for ECL
2
(A$ millions)
4,530
1
Non-financial assets have not been acquired through the enforcement of security.
2
Total provision for ECL on non-performing exposures and total collectively assessed provision for ECL both include A$1,011 million of provision for ECL that has been
calculated collectively on groups of assets which have been determined to be non-performing, but which are not individually significant.
iv. Credit and market risk exposures and capital adequacy
Additional mortgage information
Residential mortgages by LVR as at 31 March 2023
LVRs are calculated as the current exposure divided by the NZ Banking Group’s valuation of the associated residential property at origination.
The NZ Banking Group utilises data from its loan system to obtain origination valuations. For loans originated prior to 1 January 2008, or those
originated outside of the loan system, the origination valuation is not recorded in the system and is therefore, due to system limitations, not available
for disclosure. For these loans, the NZ Banking Group utilises the earliest valuation recorded as the closest available alternative to estimate an
origination valuation.
Exposures for which no LVR is available have been included in the ‘Exceeds 90%’ category in accordance with the requirements of the Order.
NZ BANKING GROUP
31 Mar 23
LVR range ($ millions)
Does not
exceed 60%
Exceeds 60%
and not 70%
Exceeds 70%
and not 80%
Exceeds 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
38 Westpac Banking Corporation - New Zealand Banking Group
iv. Credit and market risk exposures and capital adequacy (continued)
Market risk
The NZ Banking Group’s aggregate market risk exposure is derived in accordance with the Reserve Bank document BPR140 and is calculated on a
six-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 NZ Banking Group’s peak end-of-day aggregate capital charge is derived in accordance with the scalar
approach as referred to in BPR140. Under this approach, the end-of-period capital charge is scaled by the ratio of peak capital charge to end-of-
period capital charge using the internal value-at-risk method.
The following table provides a summary of the NZ 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:
NZ BANKING GROUP
31 Mar 23
$ millions
Implied risk-weighted exposureNotional capital charge
End-of-period
Interest rate risk
8,553 684
Currency risk
3 -
Equity risk
- -
Peak end-of-day
Interest rate risk
13,761 1,101
Foreign currency risk
44 4
Equity risk
- -
Overseas Bank and Overseas Banking Group capital adequacy
The following table represents the capital adequacy calculation for the Overseas Banking Group and Overseas Bank as at 31 March 2023 based on
APRA’s application of the Basel III capital adequacy framework.
%
31 Mar 2331 Mar 22
Overseas Banking Group (excluding entities specifically excluded by APRA regulations)
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
Overseas 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 Overseas Banking Group are publicly available in the Overseas Banking Group’s
Pillar 3 report. This information is made available to users via the Overseas Bank’s website (www.westpac.com.au).
2

Overseas Banking Group (excluding entities specifically excluded by APRA regulations) comprises the consolidation of the Overseas 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 Overseas
Bank.
3

Overseas Bank (Extended Licensed Entity) comprises the Overseas 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).

Registered bank disclosures
Unaudited
Unaudited
Westpac Banking Corporation - New Zealand Banking Group 39
iv. Credit and market risk exposures and capital adequacy (continued)
Under APRA’s Prudential Standards, Australian authorised deposit-taking institutions, including the Overseas Banking Group and the Overseas Bank
are required to maintain minimum ratios of capital to risk weighted assets, as determined by APRA. The minimum capital ratios are at least equal to
those specified under the Basel III capital framework. For the calculation of risk weighted assets, the Overseas Banking Group and the Overseas Bank
are accredited by APRA to apply advanced models permitted by the Basel III global capital adequacy regime. The Overseas Banking Group and the
Overseas Bank use the IRB 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 Overseas Banking 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
Basel Committee on Banking Supervision, except where APRA has exercised certain discretions.
The Overseas Banking 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 Overseas Banking Group’s website (www.westpac.com.au).
The Overseas Banking Group (excluding entities specifically excluded by APRA regulations), and the Overseas Bank (Extended Licensed Entity as
defined by APRA), exceeded the minimum capital adequacy requirements as specified by APRA as at 31 March 2023.
v. Insurance business
The NZ Banking Group does not conduct any insurance business.
vi. Risk management policies
Refer to Section vi. Risk management policies of the Registered bank disclosure, Note 13. Credit risk management and Note 31. Risk management,
funding and liquidity risk and market risk included in the NZ Banking Group Disclosure Statement for the year ended 30 September 2022 for further
details on the NZ Banking Group’s risk management policies.

Conditions of registration
40 Westpac Banking Corporation - New Zealand Banking Group
Changes to conditions of registration
There have been no changes to the Overseas Bank’s conditions of registration since the reporting date for the previous disclosure statement.
On 28 April 2023 the Reserve Bank advised the Overseas 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.

Westpac Banking Corporation - New Zealand Banking Group 41
Independent auditor’s review report
To the Directors of Westpac Banking Corporation
Report on the condensed consolidated interim Financial Statements and the
Supplementary Information (excluding credit and market risk exposures and capital
adequacy information disclosed in accordance with Schedule 9)
Our conclusion
We have reviewed the condensed consolidated interim financial statements (the “Financial Statements”) for the
six month period ended 31 March 2023 of the Westpac Banking Corporation (the “Overseas Bank”) in respect of
the New Zealand operations (the “NZ Banking Group”) as required by clause 26 of the Registered Bank
Disclosure Statements (Overseas Incorporated Registered Banks) Order 2014 (as amended) (the “Order”) and
the supplementary information disclosed in accordance with Schedules 5, 7, 12 and 14 of the Order (the
“Supplementary Information”), excluding information relating to credit and market risk exposures and capital
adequacy required to be disclosed in accordance with Schedule 9 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 of the NZ Banking Group 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, 12 and 14 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 NZ 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 NZ Banking Group in the areas of other audit and non-audit assurance services in respect to non-
consolidated entities managed by the NZ Banking Group, 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 NZ Banking
Group on normal terms within the ordinary course of trading activities of the NZ Banking Group. The provision of
these other services and relationships have not impaired our independence.
PricewaterhouseCoopers, PwC Tower, 15 Customs Street West, Private Bag 92162, Auckland 1142, New Zealand
T: +64 9 355 8000, pwc.co.nz

42 Westpac Banking Corporation - New Zealand Banking Group
Responsibilities of the Directors for the Disclosure Statement
The Directors of the Overseas Bank (the “Directors”) are responsible, on behalf of the Overseas Bank, for the
preparation and fair presentation of the Financial Statements in accordance with clause 26 of the Order, NZ IAS
34 and IAS 34 and for such internal control as the Directors determine is necessary to enable the preparation and
fair presentation of the Financial Statements and the Supplementary Information that are free from material
misstatement, whether due to fraud or error.
In addition, the Directors are responsible, on behalf of the Overseas 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, 9, 12 and 14 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, 12 and 14 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, primarily consisting of making enquiries, primarily of persons responsible for financial and accounting
matters, and applying analytical and other review procedures. The procedures performed in a review are
substantially less than those performed in an audit conducted in accordance with International Standards on
Auditing (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 Directors, as a body. Our review work has been undertaken so that we might
state to them 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
Directors, as a body, for our review procedures, for this report, or for the conclusions we have formed.
The engagement partner on the review resulting in this independent auditor’s review report is Samuel
Shuttleworth.
For and on behalf of:
Chartered AccountantsAuckland, New Zealand
24 May 2023

Westpac Banking Corporation - New Zealand Banking Group 43
Independent Assurance Report
To the Directors of Westpac Banking Corporation
Limited assurance report on compliance with the information required on credit and
market risk exposures and capital adequacy
Our conclusion
We have undertaken a limited assurance engagement on the New Zealand operations of Westpac Banking
Corporation (the “NZ Banking Group”)’s compliance, in all material respects, with clause 23 of the Registered
Bank Disclosure Statements (Overseas Incorporated Registered Banks) Order 2014 (as amended) (the “Order”)
which requires information prescribed in Schedule 9 of the Order relating to credit and market risk exposures and
capital adequacy 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 NZ Banking Group’s information relating to credit and market risk
exposures and capital adequacy, included in the Disclosure Statement in compliance with clause 23 of the Order
and disclosed in note iv of the registered bank disclosures, is not, in all material respects, disclosed in accordance
with Schedule 9 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 Westpac Banking Corporation for compliance with the Order, including
clause 23 of the Order which requires information relating to credit and market risk exposures and capital
adequacy prescribed in Schedule 9 of the Order to be included in the NZ Banking Group’s 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 NZ Banking Group. In addition to our role as auditor, our firm carries out other services
for the NZ Banking Group in the areas of other audit and assurance services in respect to non-consolidated
entities managed by the NZ Banking Group, 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 NZ Banking Group on normal terms within the ordinary course of trading activities of the NZ Banking
Group. The provision of these other services and these relationships have not impaired our independence.
PricewaterhouseCoopers, PwC Tower, 15 Customs Street West, Private Bag 92162, Auckland 1142, New Zealand
T: +64 9 355 8000, pwc.co.nz

44 Westpac Banking Corporation - New Zealand Banking Group
Assurance practitioner’s responsibilities
Our responsibility is to express a limited assurance conclusion on whether the NZ Banking Group’s information
relating to credit and market risk exposures and capital adequacy, included in the Disclosure Statement in
compliance with clause 23 of the Order is not, in all material respects, disclosed in accordance with Schedule 9 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 NZ Banking Group’s
information relating to credit and market risk exposures and capital adequacy, included in the Disclosure
Statement in compliance with clause 23 is not, in all material respects, disclosed in accordance with Schedule 9 of
the Order.
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 23 of the Order in respect of the
information relating to credit and market risk exposures and capital adequacy 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 credit and market risk exposures and capital adequacy;
●obtained an understanding of the NZ Banking Group’s compliance framework and internal control
environment to ensure the information relating to credit and market risk exposures and capital adequacy 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 credit and market risk exposures and capital adequacy and
inspected relevant correspondence with the RBNZ;
●performed analytical and other procedures on the information relating to credit and market risk exposures
and capital adequacy disclosed in accordance with Schedule 9 of the Order, and considered its consistency
with the interim financial statements; and
●agreed the information relating to credit and market risk exposures and capital adequacy disclosed in
accordance with Schedule 9 of the Order to information extracted from the NZ Banking Group’s models,
accounting records or other supporting documentation, which included publicly available information as
prescribed by clause 5 and 6 of Schedule 9 of 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 NZ Banking Group’s information relating to credit and market risk
exposures and capital adequacy prescribed in Schedule 9 of the Order to be included in the Disclosure Statement
in compliance with clause 23 of the Order does not provide assurance on whether compliance will continue in the
future.

Westpac Banking Corporation - New Zealand Banking Group 45
Use of report
This report has been prepared for use by the Directors, as a body, 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 Directors, as a body, 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.
Chartered AccountantsAuckland, New Zealand
24 May 2023

46 Westpac Banking Corporation - New Zealand Banking Group