Westpac First Half 2024 Notable Items and reporting changes

ASX Release
23 April 2024
West
pac’s First Half 2024 (1H24) Notable Items and Reporting Changes
1H24 N
otable Items
Westpac’s reported net profit after tax in 1H24 will be reduced by $164 million due to
Notable Items. All Notable Items relate to unrealised fair value gains and losses on
economic hedges and net ineffectiveness on qualifying hedges, which reverse over
time.
A s
ummary of the impacts is included in Appendix 1.
1H24 R
eporting Changes
Operating segments have been restated following the establishment of separate
Consumer and Business & Wealth operating segments and the dissolution of the
Specialist Businesses operating segment.
Other changes to enhance operating segment financial reporting and assessment
include:
•Funds transfer pricing refinements, revised capital allocations and enhanced
operating expense allocations from Enterprise functions;
•Changes in classification of some deposit products from interest bearing to non-
interest bearing; and
•Revisions to the methodology used to classify credit quality.
These changes do not impact the Group’s net profit after tax (NPAT) or the composition
of line items at the Group level.
A summary of the restatements is included in Appendix 2.
Half Y
ear 2024 results are scheduled to be announced on Monday, 6 May 2024.
For further information:
Hayden C
ooper 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

Appendix 1 – Summary of 1H24 Notable Items
1H24 ($m)
Asset sales
and
revaluations
Provisions
for
litigation,
fines and
penalties
Restructuring
costs
Asset
write-
downs

Hedging
items
Total
Net interest income - - - - (224)(224)
Non-interest income - - - - (2)(2)
Net operating
income
- - - - (226)(226)
Operating expenses - - - - - -
Pre-provision
profit
- - - - (226)(226)
Income tax benefit/
(expense)
- - - - 62 62
Net profit/(loss) - - - - (164)(164)
1H24 ($m) Consumer
Business
& Wealth
WIB
New
Zealand
(A$)
Group
Businesses
Total
Net interest income - - - (6)(218)(224)
Non-interest income - - - - (2)(2)
Net operating
income
- - - (6)(220)(226)
Operating expenses - - - - - -
Pre-provision profit - - - (6)(220)(226)
Income tax benefit/
(expense)
- - - 2 60 62
Net profit/(loss) - - - (4)(160)(164)

1.5.1. Net interest income
Half YearHalf YearHalf Year
MarchSeptMarch
202420232023
Net interest Income ($m)
Net interest income9,2049,113
Core net interest income8,7028,817
Notable Items(8)(89)
Treasury424305
Markets8680
Average interest earning assets ($m)
Loans709,756699,735
Housing488,551481,538
Personal12,62813,485
Business208,577204,712
Liquid assets213,439208,467
Other interest-earning assets25,31026,006
Average interest earning assets948,505934,208
NIM (%)
NIM1.94%1.96%
Core NIM1.83%1.89%
Treasury & Markets impact on NIM0.11%0.09%
Notable Items impact on NIM-(0.02%)
1.5.4. Deposits and other borrowings
As atAs atAs at
31 March30 Sept31 March
$m202420232023
Customer deposits
Australia557,781545,090
Transactions97,95098,762
Savings195,273191,490
Term144,220140,704
Non-interest bearing120,338114,134
New Zealand (A$)74,29774,703
New Zealand (NZ$)79,78379,769
Transactions9,37310,090
Savings19,92920,230
Term38,47236,367
Non-interest bearing12,00913,082
Other overseas (A$)8,8737,792
Total customer deposits640,951627,585
Certificates
of deposit47,21748,767
Aus
tralia32,94732,227
New Zealand (A$)2,2472,618
Other overseas (A$)12,02313,922
Total deposits and other borrowings688,168676,352
Appendix 2 - Selected comparative disclosures

2.1.
 Consumer
The Consumer segment provides a full range of banking products and services to customers in Australia through three
lines of business consisting of mortgages, consumer finance and deposits. Products and services are provided through
a portfolio of brands comprising Westpac, St.George, BankSA, Bank of Melbourne and RAMS using digital channels
and branches.
Half YearHalf YearHalf Year
MarchSeptMarch
$m202420232023
Net interest income3,8664,311
Non-interest income251273
Net operating income4,1174,584
Operating expenses(2,307)(2,145)
Notable Items(202)-
Total operating expenses(2,509)(2,145)
Pre-provision
profit1,6082,439
Impairment
(charges)/benefits(13)(166)
Profit
before income tax expense1,5952,273
Income tax expense and NCI(484)(682)
Net
profit1,1111,591
Notable Items (post tax)(148)-
Expense to income ratio (Ex Notable Items)56.04%46.79%
Net interest margin (Ex Notable Items)1.76%2.00%
FTE13,47214,672
As atAs atAs at
31 March30 Sept31 March
$bn202420232023
Customer deposits
Transactions32.935.4
Savings154.9140.0
Term63.964.3
Mortgage
offsets56.653.8
Total customer deposits308.3293.5
Loans
Mortgages485.6472.7
Other8.99.0
Provisions(1.8)(1.9)
Total loans492.7479.8
Deposit to loan ratio62.58%61.18%
Total assets504.2491.9
TCE577.7567.5
Risk weighted assets174.7174.6
Average interest earning assets438.2432.2
Average allocated capital24.024.7
Credit quality
Impairment
charges/(benefits) to average loans0.01%0.07%
Mortgage 90+ day delinquencies0.86%0.73%
Other consumer loans 90+ day delinquencies1.01%1.26%
Total stressed exposures to TCE0.86%0.75%

2.2.
 Business and Wealth
The Business and Wealth segment comprises Business Banking, Wealth Management, Private Wealth, Pacific and Auto
Finance. Business provides a range of banking services and products to Australian small to medium businesses, including
commercial businesses and agribusiness customers. It offers business lending generally up to $200 million in exposure,
merchant services using eCommerce solutions and transaction banking services. The segment includes Private Wealth,
supporting the needs of high-net-worth individuals, as well as BT Financial Group, which provides wealth management
platform services. It also includes Westpac Pacific and our auto finance business, which is in run-off. The segment
operates under the Westpac, St.George, BankSA, Bank of Melbourne and BT brands.
Half YearHalf YearHalf Year
MarchSeptMarch
$m202420232023
Net interest income2,5732,419
Non-interest income415429
Notable Items(88)-
Net operating income2,9002,848
Operating expenses(1,301)(1,244)
Notable Items(64)-
Total operating expenses(1,365)(1,244)
Pre-provision
profit1,5351,604
Impairment
(charges)/benefits(172)(85)
Profit
before income tax expense1,3631,519
Income tax expense and NCI(410)(446)
Net
profit9531,073
Notable Items (post tax)(107)-
Expense to income ratio (Ex Notable Items)43.54%43.68%
Net interest margin (Ex Notable Items)5.30%5.03%
FTE6,0086,170
As atAs atAs at
31 March30 Sept31 March
$bn202420232023
Customer deposits
Transactions56.559.6
Savings39.642.1
Term44.441.1
Total customer deposits140.5142.8
Loans
Commercial/SME90.587.1
Pacific1.21.1
Auto Finance2.53.3
Business lending94.291.5
Other3.24.0
Provisions(1.9)(1.8)
Total loans95.593.7
Deposit to loan ratio147.08%152.43%
Total assets101.299.3
TCE129.7127.6
Risk weighted assets87.188.7
Average interest earning assets96.896.5
Average allocated capital11.710.9
Credit quality
Impairment
charges/(benefits) to average loans0.36%0.18%
Impaired exposures to TCE0.52%0.63%
Total stressed exposures to TCE5.46%5.24%

2.3.
 Westpac Institutional Bank
The Westpac Institutional Bank (WIB) comprises three lines of business: Corporate & Institutional Bank (CIB);
Global Transaction Services (GTS); and Financial Markets (FM). It services predominantly corporate, institutional and
government clients. CIB uses dedicated industry relationship and specialist product teams to support clients’ lending
needs. GTS is responsible for the provision of payments and liquidity management solutions to WIB’s clients and the
group's domestic and international payments infrastructure. FM provides a range of risk management, investment and
debt capital markets solutions to WIB clients and access to financial markets products for consumer and business
customers. Clients are supported throughout Australia and via branches and subsidiaries located in New Zealand, New
York, London, Frankfurt and Singapore.
Half YearHalf YearHalf Year
MarchSeptMarch
$m202420232023
Net interest income1,019907
Non-interest income663704
Net operating income1,6821,611
Operating expenses(679)(619)
Notable Items(15)-
Total operating expenses(694)(619)
Pre-provision
profit988992
Impairment
(charges)/benefits(91)4
Profit
before income tax expense897996
Income tax expense and NCI(256)(287)
Net
profit641709
Notable Items (post tax)(10)-
Expense to income ratio (Ex Notable Items)40.37%38.42%
Net interest margin (Ex Notable Items)1.93%1.86%
FTE2,7762,758
As atAs atAs at
31 March30 Sept31 March
$bn202420232023
Customer deposits
Transactions and others64.263.6
Savings10.510.4
Term41.439.5
Total customer deposits116.1113.5
Loans
Loans92.985.0
Provisions(0.3)(0.3)
Total loans92.684.7
Deposit to loan ratio125.37%133.95%
Total assets106.3100.0
TCE207.4205.6
Risk weighted assets82.180.2
Average interest earning assets105.398.0
Average allocated capital9.68.8
Credit quality
Impairment charges to average loans0.21%(0.01%)
Impaired exposures to TCE0.04%0.06%
Total stressed exposures to TCE0.58%0.28%

2.4.
 Westpac New Zealand
Westpac New Zealand provides banking and wealth products and services for consumer, business and institutional
customers in New Zealand.
All
figures are in NZ$ unless noted otherwise.
Half YearHalf YearHalf Year
MarchSeptMarch
NZ$m202420232023
Net interest income1,2671,247
Non-interest income134127
Notable Items--
Net operating income1,4011,374
Operating expenses(662)(624)
Notable Items(10)-
Total operating expenses(672)(624)
Pre-provision
profit729750
Impairment
(charges)/benefits19(154)
Profit
before income tax expense748596
Income tax expense and NCI(213)(168)
Net
profit535428
Notable Items (post tax)(7)-
Expense to income ratio (Ex Notable Items)47.25%45.41%
Net interest margin (Ex Notable Items)2.12%2.11%
FTE5,2885,374
As atAs atAs at
31 March30 Sept31 March
NZ$bn202420232023
Customer deposits
Transactions and others21.423.2
Savings19.920.2
Term38.536.4
Total customer deposits79.879.8
Loans
Mortgages65.865.2
Business32.832.3
Other1.21.2
Provisions(0.5)(0.5)
Total loans99.398.2
Deposit to loan ratio80.36%81.26%
Total assets121.8121.9
TCE147.1147.3
Risk weighted assets60.358.6
Liquid assets19.220.5
Average interest earning assets119.1118.8
Average allocated capital8.37.5
Total funds11.411.5
Credit quality
Impairment
charges/(benefits) to average loans(0.04%)0.32%
Mortgage 90+ day delinquencies0.33%0.29%
Other consumer loans 90+ day delinquencies0.92%1.13%
Impaired exposures to TCE0.06%0.07%
Total stressed exposures to TCE1.49%1.33%

2.4.
 Westpac New Zealand (Continued)
2.4.1.
 Westpac New Zealand segment performance (A$ Equivalent)
Results have been translated into Australian dollars (A$) at the average exchange rates for each reporting period,
Sec
ond Half 2023: $1.0816; First Half 2023: $1.0876. Unless otherwise stated, assets and liabilities have been translated at
spot rates as at the end of the period, 30 September 2023: $1.0738; 31 March 2023: $1.0678.
Half YearHalf YearHalf Year
MarchSeptMarch
$m202420232023
Net interest income1,1711,146
Non-interest income124116
Notable Items--
Net operating income1,2951,262
Operating expenses(613)(573)
Notable Items(9)-
Total operating expenses(622)(573)
Pre-provision
profit673689
Impairment
(charges)/benefits18(142)
Profit
before income tax expense691547
Income tax expense and NCI(196)(154)
Net
profit495393
Notable Items (post tax)(7)-
Expense to income ratio (Ex Notable Items)
a
47.25%45.41%
Net interest margin (Ex Notable Items)
a
2.12%2.11%
a.Ratios calculated using NZ$.
As atAs atAs at
MarchSeptMarch
$bn202420232023
Customer deposits74.374.7
Loans92.591.9
Deposit to loan ratio
a
80.36%81.26%
Total assets113.5114.1
TCE136.9137.9
Risk weighted assets56.254.9
Liquid assets17.919.2
Average interest earning assets110.2109.3
Average allocated capital7.76.9
Total funds10.610.7
a.Ratios calculated using NZ$.

2.5.
 Group Businesses
The segment comprises:
•Treasury, which is responsible for the management of the Group’s balance sheet including wholesale funding, capital,
and liquidity
. Treasury also manages interest rate risk and foreign exchange risks;
•Technology, except for UNITE, these costs are allocated to segments across the Group;
•Customer & Corporate Services, which provides shared corporate functions such as property, procurement, finance
services, Corporate Affairs, and HR services. Excluding Corporate Affairs, these costs are allocated to other segments
acr
oss the Group; and
•Enterprise services, which includes earnings on capital not allocated to segments, certain intra-group transactions
and gains/los
ses from asset sales, earnings and costs associated with the Group’s fintech investments and other costs
including certain customer remediation expenses and centrally held provisions.
Half YearHalf YearHalf Year
MarchSeptMarch
$m202420232023
Net interest income583419
Non-interest income6147
Notable Items59132
Net operating income648698
Operating expenses(344)(407)
Notable Items(170)-
Total operating expenses(514)(407)
Pre-provision
profit134291
Impairment
(charges)/benefits-(1)
Profit
before income tax expense134290
Income tax expense and NCI(140)(55)
Net
profit/(loss)(6)235
Notable Items (post tax)(79)178
Profit/(loss)
attributable to businesses sold20111
Treasury
Half YearHalf YearHalf Year
MarchSeptMarch
$m202420232023
Net interest income404261
Non-interest income86
Notable Items69(89)
Net operating income481178
Net
profit26254

Note 2. Segment reporting
The tables present the segment results for the Group:
$mConsumer
Business and
Wealth
Westpac
Institutional
Bank
Westpac
New
Zealand (A$)
Group
BusinessesTotal
Notable
Items
(pre-tax)
Income
statement
Half Year Sept 2023
Net interest income3,8662,5731,0191,1715839,212(8)9,204
Net fee income23918830194(4)818-818
Net wealth
management inc
ome-195-1713225(10)215
Trading income-2631715(17)341(11)330
Other income12645(2)1475-75
Notable Items-(88)--59(29)29-
Net operating income4,1172,9001,6821,29564810,642-10,642
Operating expenses(2,307)(1,301)(679)(613)(344)(5,244)(460)(5,704)
Notable Items(202)(64)(15)(9)(170)(460)460-
Total operating expenses(2,509)(1,365)(694)(622)(514)(5,704)-(5,704)
Pre-provision
profit1,6081,5359886731344,938-4,938
Impairment
(charges)/benefits(13)(172)(91)18-(258)-(258)
Profit
before income
tax expense1,5951,3638976911344,680-4,680
Income tax
(expense)/benefit
a
(484)(409)(256)(196)(139)(1,484)-(1,484)
Net
profit attributable
to NCI-(1)--(1)(2)-(2)
Net
profit attributable to
owners of WBC1,111953641495(6)3,194-3,194
Notable Items (post-tax)
a
(148)(107)(10)(7)(79)(351)
Balance sheet
Loans492,71695,54892,56892,488(66)773,254
Deposits and
other borr
owings308,342140,536116,05276,54446,694688,168
a.Includes tax
benefits on Notable Items of $138 million.
$mConsumer
Business and
Wealth
Westpac
Institutional
Bank
Westpac
New
Zealand (A$)
Group
BusinessesTotal
Notable
Items
(pre-tax)
Income
statement
Half Year March 2023
Net interest income4,3112,4199071,1464199,202(89)9,113
Net fee income2651722958312827-827
Net wealth
management inc
ome-230-16101347-347
Trading income-2137518(5)409(22)387
Other income8634(1)3986243329
Notable Items----132132(132)-
Net operating income4,5842,8481,6111,26269811,003-11,003
Operating expenses(2,145)(1,244)(619)(573)(407)(4,988)-(4,988)
Notable Items--------
Total operating expenses(2,145)(1,244)(619)(573)(407)(4,988)-(4,988)
Pre-provision
profit2,4391,6049926892916,015-6,015
Impairment
(charges)/benefits(166)(85)4(142)(1)(390)-(390)
Profit
before income
tax expense2,2731,5199965472905,625-5,625
Income tax
(expense)/benefit
a
(682)(442)(287)(154)(55)(1,620)-(1,620)
Net
profit attributable
to NCI-(4)---(4)-(4)
Net
profit attributable to
owners of WBC1,5911,0737093932354,001-4,001
Notable Items (post-tax)
a
----178178
Balance sheet
Loans479,75093,66584,69791,943(124)749,931
Deposits and
other borr
owings293,508142,773113,45377,32149,297676,352
a.Includes tax
benefits on Notable Items of $46 million.

Note 3. Net interest income and average balance sheet and interest rates
Average balance sheet and interest rates
Half Year March 2024Half Year Sept 2023Half Year March 2023
Average
balanceInterest
Average
rate
Average
balanceInterest
Average
rate
Average
balanceInterest
Average
rate
$m$m%$m$m%$m$m%
Assets
Interest earning assets
Loans709,75619,3065.4699,73516,2764.7
Housing488,55112,1865.0481,53810,1744.2
Personal12,6285488.713,4855568.3
Business208,5776,5726.3204,7125,5465.4
Trading securities and
financial
assets measured at FVIS31,1226454.129,0444983.4
Investment securities73,7451,1193.076,0159182.4
Other interest earning assets
a
133,8822,8434.2129,4142,1473.3
Total interest earning assets and
interest income948,50523,9135.0934,20819,8394.3
Non-interest earning assets
Derivative
financial instruments21,56625,290
All other assets58,43358,425
Total non-interest earning assets79,99983,715
Total assets1,028,5041,017,923
Liabilities
Interest bearing liabilities
Deposits and other borrowings551,6769,9663.6537,1106,9522.6
Certificates
of deposit50,3141,1224.445,4477993.5
Transactions113,4101,8053.2117,9781,4232.4
Savings212,2813,2693.1206,0422,097
2.0
Term175,6713,7704.3167,6432,6333.1
Repurchase agreements38,0033281.741,3102281.1
Loan capital35,1158284.733,6496203.7
Other interest bearing liabilities
b
178,4633,5874.0174,9252,9263.4
Total interest bearing liabilities and
interest expense803,25714,7093.7786,99410,7262.7
Non-interest bearing liabilities
Deposits and other borrowings130,232131,113
Derivative
financial instruments22,96029,765
All other liabilities503(943)
Total non-interest bearing liabilities153,695159,935
Total liabilities956,952946,929
Shareholders' equity71,50970,947
NCI4347
Total equity71,55270,994
Total liabilities and equity1,028,5041,017,923
Loans
Australia611,79016,3735.3602,49313,7914.6
New Zealand91,5072,7245.990,6052,3045.1
Other overseas6,4592096.56,6371815.5
Deposits and other borrowings
Australia466,4997,9973.4453,9625,5472.5
New Zealand64,6411,4474.563,4221,0173.2
Other overseas20,5365225.119,7263883.9
a.Interest income includes net
ineffectiveness on qualifying hedges.
b.Includes net impact of Treasury balance sheet management activities and the Bank Levy.

Note 10. Credit quality
Program-managed portfolio
The program-managed portfolio generally includes retail products such as mortgages, personal lending (including credit
cards) as well as certain small to medium sized enterprise lending. These credit exposures are grouped into pools of
similar risk based on the analysis of characteristics that have historically predicted the likelihood of default, and a PD
is assigned relative to the credit exposure's pool. The exposure is then assigned to strong, satisfactory or weak by
benchmarking that PD against transaction-managed exposures, which are in turn mapped to external ratings per the
above table. In addition, any program-managed exposures that are one or more days past due are classified as weak.
The following table shows the credit quality of loans and undrawn credit commitments.
As at 31 March 2024As at 30 September 2023
a
As at 31 March 2023
a
$mStage 1Stage 2Stage 3TotalStage 1Stage 2Stage 3TotalStage 1Stage 2Stage 3Total
Loans - housing
Strong291,91427,447-319,361284,57830,261-314,839
Good/satisfactory156,83648,929-205,765155,22844,137-199,365
Weak2,53314,1785,23721,9482,37513,0214,42119,817
Total loans - housing451,28390,5545,237547,074442,18187,4194,421534,021
Loans - personal
Strong4,31895-4,4134,347117-4,464
Good/satisfactory6,097802-6,8996,552911-7,463
Weak2526231921,0672737112401,224
Total loans - personal10,6671,52019212,37911,1721,73924013,151
Loans - business
Strong80,17713,564-93,74174,62610,691-85,317
Good/satisfactory63,43452,477-115,91183,62930,206-113,835
Weak2005,4682,9148,5821964,7093,1728,077
Total loans - business143,81171,5092,914218,234158,45145,6063,172
207,229
Undrawn credit commitments
Strong137,27511,169-148,444140,5749,038-149,612
Good/satisfactory40,48215,142-55,62447,8429,191-57,033
Weak2141,5033662,0832511,1103971,758
Total undrawn
credit commitments177,97127,814366206,151188,66719,339397208,403
Total strong513,68452,275-565,959504,12550,107-554,232
Total good/satisfactory266,849117,350-384,199293,25184,445-377,696
Total weak3,19921,7728,70933,6803,09519,5518,23030,876
Total loans and undrawn
credit commitments783,732191,3978,709983,838800,471154,1038,230962,804
a.In 2024, the Group revised the methodology that it uses to classify program-managed exposures as strong, satisfactory, or weak. This is a
change in disclosur
e methodology and does not represent a change in underlying credit quality of the Group’s credit exposures. Comparatives
have been revised accordingly.