Westpac Pillar 3 Report (March 2024)

ASX
Release


6 May 2024

Pillar 3 Report as at 31 March 2024

Westpac Banking Corporation (“Westpac”) today provides the attached Pillar 3 Report
(March 2024).









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

Table of contents
Acknowledgment of Indigenous Peoples
Westpac acknowledges the First Peoples of Australia and recognises
their ongoing role as Traditional Owners of the land and waters of this
country, and we pay respect to Elders past and present. We extend that
respect to Westpac’s Aboriginal and Torres Strait Islander employees,
partners and stakeholders, and to the Indigenous Peoples in the other
locations where we operate.
In Aotearoa (New Zealand) we also acknowledge tangata whenua and
the unique relationship that Indigenous Peoples share with all New
Zealanders as partners and custodians of their natural ecosystems
under Te Tiriti o Waitangi.
2WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT
Structure of Pillar 3 Report
PILLAR 3 REPORT3
Executive Summary4
Introduction7
Risk Appetite and Risk Types8
Controlling and Managing Risk9
Group Structure14
Capital Overview16
Leverage Ratio20
Credit Risk Management21
Credit Risk Exposure31
Credit Risk Mitigation59
Counterparty Credit Risk61
Securitisation64
Market Risk74
Interest Rate Risk in the Bank Book (IRRBB)79
Operational Risk81
Equity Risk83
Funding and Liquidity Risk Management84
Liquidity Coverage Ratio85
Net Stable Funding Ratio86
APPENDICES88
Appendix I – Regulatory capital reconciliation89
Appendix II – Entities included in
regulatory Consolidation
96
Appendix III – Level 3 entities’ assets
and liabilities
98
Appendix IV – Regulatory expected loss99
Appendix V – APS330 quantitative requirements100
Appendix VI – Exchange rates103
GLOSSARY104
DISCLOSURE REGARDING FORWARD-
LOOKING STATEMENTS
109
In this report references to ‘Westpac’, ‘Westpac Group’, ‘the Group’, ‘we’, ‘us’ and ‘our’ are to Westpac Banking Corporation and its controlled entities
(unless the context indicates otherwise).
In this report, unless otherwise stated or the context otherwise requires, references to ‘$’, ‘AUD’ or ‘A$’ are to Australian dollars. References to ‘US$’,
‘USD’ or ‘US dollars’ are to United States dollars, references to ‘NZ$’, ‘NZD’ or ‘NZ dollars’ are to New Zealand dollars, references to 'GBP' are to
British Pound Sterling and references to 'EUR' are to European Euro. Refer to Appendix VI for information regarding the rates of exchange between
the Australian dollar and other currencies applied by the Group as part of its operating activities as at 31 March 2024, 30 September 2023 and
31 March 2023.
Any discrepancies between totals and sums of components in tables contained in this report are due to rounding.
In this report, unless otherwise stated, disclosures reflect the Australian Prudential Regulation Authority’s (APRA) implementation of Basel III.
Information contained in or accessible through the websites mentioned in this report does not form part of this report unless we specifically state
that it is incorporated by reference and forms part of this report. All references in this report to websites are inactive textual references and are for
information only.
Westpac Banking Corporation ABN 33 007 457 141

PILLAR 3 REPORTAPPENDICESGLOSSARY
DISCLOSURE
REGARDING FORWARD-
LOOKING STATEMENTS
3
PILLAR 3 REPORT
EXECUTIVE SUMMARY
INTRODUCTION
RISK APPETITE AND RISK TYPES
CONTROLLING AND MANAGING RISK
GROUP STRUCTURE
CAPITAL OVERVIEW
LEVERAGE RATIO
CREDIT RISK MANAGEMENT
CREDIT RISK EXPOSURE
CREDIT RISK MITIGATION
COUNTERPARTY CREDIT RISK
SECURITISATION
MARKET RISK
INTEREST RATE RISK IN THE BANK BOOK (IRRBB)
OPERATIONAL RISK
EQUITY RISK
FUNDING AND LIQUIDITY RISK MANAGEMENT
LIQUIDITY COVERAGE RATIO
NET STABLE FUNDING RATIO

4WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT
EXECUTIVE SUMMARY
Key capital ratios
31 March30 September31 March
202420232023
Level 2 regulatory capital structure
Common equity Tier 1 (CET1) capital after deductions ($m)55,76455,88555,644
Risk weighted assets (RWA) ($m)444,417451,418452,946
CET1 capital ratio12.55%12.38%12.28%
Additional Tier 1 capital ratio2.46%2.21%2.20%
Tier 1 capital ratio15.01%14.59%14.48%
Tier 2 capital ratio6.42%5.86%5.27%
Total regulatory capital ratio21.43%20.45%19.75%
APRA leverage ratio5.49%5.50%5.46%
Level 1 regulatory capital structure
CET1 capital after deductions ($m)51,99952,27352,021
Risk weighted assets ($m)406,397414,293416,254
Level 1 CET1 capital ratio12.80%12.62%12.50%
CET1 CAPITAL RATIO MOVEMENT FOR FIRST HALF 2024
12.38%
75bps(57bps)
17bps
2bps(1bps)
(19bps)
12.55%
Sep-23Net profitDividendsRWA movementCapital deductions
and other items
FX translation
impacts
Share buybackMar-24
Westpac’s Level 2 CET1 capital ratio was 12.55% at 31 March 2024, 17 basis points higher than 30 September 2023. Key
movements included:
•First half 2024 net profit: 75 basis points increase;
•Payment of the 2023 final dividend: 57 basis points reduction;
•RWA: 17 basis points increase mainly from a reduction in Interest Rate Risk in the Banking Book (IRRBB) RWA;
•Capital deductions and other capital movements: 2 basis points increase mainly due to lower deductions for
capitalised software;
•Foreign currency impacts: 1 basis point reduction; and
•On-market share buyback: 19 basis points reduction. As at 31 March 2024, approximately $0.85 billion of the
$1.5 billion on-market share buyback announced in November 2023 has been completed with a total of 34,442,450
shares bought back and cancelled at an average price of $24.65.
Westpac’s Level 1 CET1 capital ratio was 12.80% at 31 March 2024, 18 basis points higher than 30 September 2023 with
movements in line with Level 2.

PILLAR 3 REPORTAPPENDICESGLOSSARY
DISCLOSURE
REGARDING FORWARD-
LOOKING STATEMENTS
5
Risk Weighted Assets (RWA)
31 March30 September31 March
$m202420232023
Risk weighted assets at Level 2
Credit risk339,741339,758340,558
Market risk11,25111,53815,168
Operational risk54,93455,17556,900
Interest rate risk in the banking book (IRRBB)33,59940,13834,748
Other4,8924,8095,572
Total RWA444,417451,418452,946
Total Exposure at Default1,177,9711,173,8671,187,904
Total RWA decreased by 1.6% to $444.4 billion over the half largely due to the decrease in non-credit RWA.
Credit RWAs were flat. Key movements included:
•A $2.2 billion increase from higher lending primarily in Corporates;
•A $3.0 billion increase due to deterioration in credit metrics mainly from an increase in delinquencies in
Residential Mortgages;
•A $4.0 billion decrease from data refinements mainly related to Residential Mortgages and Corporate exposures;
•A $0.3 billion decrease from counterparty credit risk and mark-to-market related credit risk due to decreases in the
mark-to-market value of derivatives from changes in underlying foreign currency rates; and
•A $0.8 billion decrease from foreign currency translation impacts, predominantly the appreciation of the A$ against
the NZ$ and US$.
Non-credit RWA were $7.0 billion lower. Key movements included:
•IRRBB RWA: $6.5 billion decrease, driven by:
–Reduction of $8.4 billion from a lower regulatory embedded loss due to lower swap rates; and
–Increase in repricing and yield curve risk of $1.4 billion in line with underlying banking book positions;
•Operational RWA: $0.2 billion decrease driven by the outcome of the annual Standardised Measurement Approach
(SMA) capital revision and the roll-off of indemnities provided as part of the exit of non-core businesses; and
•Market RWA: $0.3 billion decrease from changes in market risk exposures.

6WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT
EXECUTIVE SUMMARY
Exposure at Default
Exposure at Default (EAD) increased $4.1 billion over the half. Key movements include:
•A $15.5 billion increase from higher lending, mainly in Corporates and Residential Mortgages;
•A $6.7 billion decrease in Sovereign exposures, mainly driven by maturing Term Funding Facility (TFF) drawdowns;
•A $2.4 billion decrease from foreign currency translation impacts; and
•A $1.2 billion decrease in derivative exposures.
Additional Tier 1 (AT1) and Tier 2 capital movement for First Half 2024
During the half, the Group issued $1.75 billion of Additional Tier 1 capital instruments and redeemed $0.8 billion of
Additional Tier 1 capital instruments. The net impact of these transactions was an increase in the Tier 1 capital ratio of
approximately 21 basis points.
The Group also issued $2.7 billion of Tier 2 capital instruments over the half. The impact of these transactions was an
increase in the Total Capital ratio of approximately 59 basis points. There were no Tier 2 capital instruments redeemed.
Domestic systemically important banks (D-SIBs), including Westpac, have a Total Capital requirement of 18.25% from
1 January 2026.
Leverage ratio
The leverage ratio represents the amount of Tier 1 capital relative to exposure
1
. At 31 March 2024, Westpac’s leverage
ratio was 5.49%, down 1 basis point from 30 September 2023, and above APRA's regulatory minimum requirement
of 3.5%.
Liquidity Coverage Ratio (LCR)
Westpac’s average LCR for the quarter ended 31 March 2024 was 132% (31 December 2023: 133%), well above the
regulatory minimum of 100%. The decrease in the ratio was mainly due to higher average Net Cash Outflows (NCO).
This comprised higher wholesale funding outflows, mostly from long-term wholesale funding maturities, and maturing
TFF drawdowns. This was partly offset by higher issuance of wholesale term funding in the quarter which increased
cash holdings.
Net Stable Funding Ratio (NSFR)
Westpac had an NSFR of 114% as of 31 March 2024 (31 December 2023: 114%) and continues to be above the regulatory
minimum of 100%. The NSFR for the quarter ended 31 March 2024 held flat on the previous quarter.
1.
As defined under Attachment D of APS110: Capital Adequacy.

PILLAR 3 REPORTAPPENDICESGLOSSARY
DISCLOSURE
REGARDING FORWARD-
LOOKING STATEMENTS
7
INTRODUCTION
Westpac Banking Corporation is an Authorised Deposit-taking Institution (ADI) subject to regulation by APRA. APRA
has accredited Westpac to apply advanced models permitted by the Basel III global capital adequacy regime to the
measurement of its regulatory capital requirements. Westpac uses the Advanced Internal Ratings-Based approach
(Advanced IRB) for credit risk and the Standardised Measurement Approach (SMA) for operational risk.
In accordance with APS330 Public Disclosure, financial institutions that have received the Advanced IRB accreditation,
such as Westpac, are required to disclose prudential information about their risk management practices on a
semi-annual basis. A subset of this information must be disclosed quarterly.
This report describes Westpac’s risk management practices and presents the prudential assessment of Westpac’s capital
adequacy as at 31 March 2024.
In addition to this report, the regulatory disclosures section of the Westpac website
1
contains the reporting
requirements for:
•Capital instruments under Attachment B of APS330; and
•The identification of potential Global-Systemically Important Banks (G-SIB) under Attachment H of APS330
(disclosed annually).
Capital instruments disclosures are updated when:
•A new capital instrument is issued that will form part of regulatory capital; or
•A capital instrument is redeemed, converted into CET1 capital, written off, or its terms and conditions are changed.
1.
http://www.westpac.com.au/about-westpac/investor-centre/financial-information/regulatory-disclosures/

8WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT
RISK APPETITE AND RISK TYPES
Westpac’s appetite for risk is informed by our strategic objectives and business plans, regulatory rules and ratios, and
the potential for adverse outcomes that may result in material impacts on our customers, our people, our reputation, our
regulatory relationships and/or our financial position including the potential for capital and liquidity ratios to fall below
target levels in stressed scenarios.
Westpac distinguishes between different types of risk and takes an integrated approach toward identifying, assessing,
and managing risks. The Risk Management Framework, which includes the Risk Management Strategy and Board Risk
Appetite Statement, together with monitoring and controls are key to identifying and managing risk.
Overview of key risk types:
•risk culture – the risk that our culture does not promote and reinforce behavioural expectations and structures to
identify, understand, discuss and act on risks;
•strategic risk – the risk that Westpac makes inappropriate strategic choices, does not implement its strategies
successfully, or does not respond effectively to changes in the environment;
•capital adequacy risk – the risk that Westpac has an inadequate level or composition of capital to support
its normal business activities and to meet its regulatory capital requirements under both normal or stressed
operating environments;
•funding and liquidity risk – the risk that Westpac cannot meet its payment obligations or that it does not have the
appropriate amount, tenor and composition of funding and liquidity to support its assets;
•credit risk – the risk of financial loss where a customer or counterparty fails to meet their financial obligations
to Westpac;
•market risk – the risk of an adverse impact on Westpac’s financial performance or financial position resulting from
changes in market factors, such as foreign exchange rates, commodity prices, equity prices, credit spreads and
interest rates. This includes interest rate risk in the banking book, which is the risk of loss in earnings or economic
value in the banking book as a consequence of movements in interest rates;
•operational risk – the risk of loss resulting from inadequate or failed internal processes, people and systems or from
external events;
•cyber risk – the risk that Westpac or its third parties’ data or technology are inappropriately accessed, manipulated,
or damaged from cyber threats or vulnerabilities;
•compliance and conduct risk – the risk of failing to abide by compliance obligations required of us or otherwise failing
to have behaviours and practices that deliver suitable, fair, and clear outcomes for our customers and that support
market integrity;
•reputational and sustainability risk − the risk of failing to recognise or address environmental, social or governance
(ESG) issues and the risk that an action, inaction, transaction, investment, or event will reduce trust in Westpac’s
integrity and competence by clients, counterparties, investors, regulators, employees, or the public; and
•financial crime risk – the risk that Westpac fails to prevent financial crime and comply with applicable global financial
crime regulatory obligations.
We have put in place a risk management framework that seeks to:
•achieve Westpac’s purpose of creating better futures together;
•deliver fair outcomes for our customers and counterparties that support market integrity;
•protect Westpac’s depositors and investors by maintaining a balance sheet with sound credit quality and buffers over
regulatory minimums;
•manage risk within risk appetite;
•make Westpac resilient to operational risks and disruptions, and manage the risks arising from service providers;
•ensure appropriate reward for risk we take aligned to our purpose, values and behaviours; and
•meet our regulatory and statutory obligations.
The Board Risk Appetite Statement and Group Risk Management Framework and Strategy are reviewed annually by the
Board Risk Committee. This review includes consideration of whether the framework continues to be sound, and that
Westpac is operating with due regards to risk appetite. The Board Risk Appetite Statement and Group Risk Management
Framework and Strategy were approved by the Board during the 12 months to 31 March 2024.

PILLAR 3 REPORTAPPENDICESGLOSSARY
DISCLOSURE
REGARDING FORWARD-
LOOKING STATEMENTS
9
CONTROLLING AND MANAGING RISK
Roles and responsibilities
We have adopted and embedded a Three Lines of Defence model which enables all our people to understand their roles
and responsibilities in the active management of risk.
First Line
First Line under the Three Lines of Defence Model refers to all Divisions and Functions excluding the Risk and Audit
functions. The First Line proactively identifies, evaluates, owns, monitors, manages and controls the existing and
emerging risks in their business. It manages business activities within approved risk appetite and policies. In managing its
risk, the First Line establishes and maintains appropriate governance structures, controls, resources and self-assessment
processes, including issue identification, recording and escalation procedures.
Second Line
Second Line under the Three Lines of Defence Model refers to the Risk Function. It is an independent function that
develops risk management frameworks, defines guardrails, provides objective review and challenge regarding the
effectiveness of risk management within the First Line business, and executes specific risk management activities where
functional independence and/or specific risk capability is required. Its approach is risk-based and proportionate to First
Line activities.
Third Line
Group Audit is the Third Line assurance function that provides the Board and Senior Executive with independent
and objective evaluation of the adequacy and effectiveness of the Group’s governance, risk management and
internal controls.
Risk management governance structure as at 31 March 2024
Board•approves the overall risk management framework for managing financial and non-financial risks,
as well as Westpac’s Risk Management Framework, Risk Management Strategy and Board Risk
Appetite Statement, and monitors the effectiveness of risk management by Westpac;
•forms a view of Westpac’s risk culture and oversees the identification of, and steps taken, to address
any changes to risk culture;
•approves the Internal Capital Adequacy Assessment Process (ICAAP), including reviewing Group
stress testing scenarios/outcomes, and approves recovery and exit plans and resolution plans; and
•makes its annual declaration to APRA on risk management under APRA prudential standard
CPS 220 Risk Management.

10WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT
CONTROLLING AND MANAGING RISK
Risk management governance structure as at 31 March 2024
Board Risk
Committee
(BRiskC)
From the perspective of specific types of risk, the BRiskC’s role includes:
•credit risk – reviewing and approving Westpac’s Credit Risk Management Framework, Credit Risk
Management Strategy, Credit Risk Appetite Statement and material policies and limits supporting
Westpac’s Credit Risk Management Framework, approving credit provisioning levels, and monitoring
the risk profile, performance, and management of our credit portfolio;
•funding and liquidity risk – reviewing and approving Westpac’s Liquidity Risk Management
Framework and key policies and limits supporting that framework, including our annual funding
strategy, and liquidity targets and limits, reviewing and recommending recovery and exit plans and
resolution plans to the Board for approval, and monitoring the liquidity position and requirements;
•capital adequacy risk – reviewing and approving Westpac’s Capital Adequacy Risk Management
Framework and key policies supporting that framework, reviewing and recommending the ICAAP
to the Board for approval including target capital ranges (where appropriate) and reviewing and
monitoring capital levels for consistency with the Board Risk Appetite Statement;
•market risk – reviewing and approving Westpac’s Market Risk Management Framework and key
policies and limits supporting that framework, and reviewing Westpac’s trading and non-trading
market risk profiles and their respective exposure against limits;
•non-financial risks, including operational risk, compliance and conduct risk, cyber risk, financial
crime risk, and reputational and sustainability risk – reviewing and approving the risk classes’
Risk Management Frameworks and key policies supporting those frameworks, and monitoring the
performance of risk class management and controls; and
•risk culture – reviewing and approving Westpac’s Risk Culture Framework, forming a view on
Westpac’s risk culture and the extent to which it supports our ability to operate consistently within
Westpac’s Risk Management Framework and Board Risk Appetite Statement, and overseeing the
identification of, and steps taken to address, any desirable changes to risk culture.
The Board Risk Committee also:
•reviews Westpac’s Group stress testing results, monitors management response and, together with
the Board provides recommendations for future scenarios;
•provides relevant periodic assurances and reports (as appropriate) to the Board Audit Committee;
•refers or recommends to the Board and any other Board Committees (as appropriate) any matters
that have come to the attention of the Board Risk Committee that are relevant for the Board or the
respective Board Committee; and
•in its capacity as the Westpac Group’s US Risk Committee, oversees the key risks, risk management
framework and policies of Westpac’s US operations.
Assists the Board to:
•consider and approve Westpac’s overall risk management framework for managing financial and
non-financial risks;
•oversee risk culture across Westpac;
•oversee Westpac’s risk profile and set risk appetite for material risks;
•review and approve the Risk Management Framework, Risk Management Strategy and Board Risk
Appetite Statement;
•make its annual declaration to APRA on risk management under APRA prudential standard CPS 220
Risk Management; and
•oversee compliance risk management within Westpac.
The Committee is also responsible for:
•reviewing and monitoring Westpac’s risk profile and controls for consistency with the Board Risk
Appetite Statement;
•overseeing and recommending recovery and exit plans and resolution plans to the Board
for approval;
•reviewing and approving the limits and conditions that apply to the delegated credit risk
approval authorities;
•monitoring changes anticipated for the economic and business environment including consideration
of emerging risks and other factors considered relevant to our risk profile and risk appetite;
•reviewing and where appropriate approving risks beyond the approval discretion provided to
management; and
•overseeing material legal and regulatory change relevant to Westpac and the management of
material litigation and regulatory investigations and associated remediation activities.

PILLAR 3 REPORTAPPENDICESGLOSSARY
DISCLOSURE
REGARDING FORWARD-
LOOKING STATEMENTS
11
Risk management governance structure as at 31 March 2024
Board
Committees
with a Risk
Focus
Board Audit Committee (BAC)
Assists the Board by overseeing the:
•integrity of financial statements and financial reporting systems of Westpac and its related
bodies corporate;
•external audit engagement, including the external auditor’s qualifications, performance,
independence and fees;
•performance of the internal audit function; and
•integrity of the Group’s corporate reporting including Westpac’s financial reporting and compliance
with prudential regulatory reporting and professional accounting requirements.
Board Remuneration Committee (BRemC)
•the Board Remuneration Committee assists the Board to discharge its responsibility by overseeing
the design, operation and monitoring of the remuneration framework.
•the Board Remuneration Committee seeks feedback from and considers matters raised by
other Board Committees (as appropriate) with respect to remuneration outcomes, adjustments
to remuneration in light of relevant matters and alignment of remuneration with the risk
management framework.
•cross membership of the Board Remuneration Committee and the Board Risk Committee also
supports alignment between risk management and remuneration.
•independent input is received from the Chief Risk Officer on risk, compliance and conduct matters
that may need to be considered in remuneration outcomes.
Executive
Team
Westpac Executive Team (ET)
•executes the Board-approved strategy;
•delivers Westpac’s various strategic and performance goals within the approved risk appetite; and
•endorse climate change and human rights position statements for approval by the Board. All other
position statements on sustainability issues are approved by the CEO.
Executive
risk
committees
Westpac Group Executive Risk Committee (RISKCO)
•informs the CEO, Chief Risk Officer and other accountable individuals in making risk-related
decisions in respect of the Group;
•informs attendees in making material decisions in their area of responsibility, with due consideration
of Westpac’s risk profile and risk culture;
•reviews and provides input on Westpac’s Risk Management Framework and Risk Management
Strategy for approval by the Board;
•oversees the implementation and performance of the Risk Management Framework and the Risk
Management Strategy as well as required controls and actions;
•reviews and provides input on risk class risk management frameworks and material supporting
policies, as required;
•reviews and provides input on the Board Risk Appetite Statement for approval by the Board,
oversees the implementation of the Board Risk Appetite Statement and monitors Westpac’s risk
profile against its risk appetite measures and thresholds;
•monitors the Group’s risk culture, its alignment to risk appetite and related actions;
•analyses emerging risks and oversees the adequacy of Westpac’s response; and
•reviews outcomes of, annual stress testing, material risk models and risk measurement
methodologies, including impacts on capital adequacy and the Group’s Recovery and Exit Plan.
Westpac Group Asset & Liability Committee (ALCO)
•oversees the balance sheet risk profile, including funding and liquidity risk, capital adequacy risk and
interest rate risk in the banking book;
•reviews the level and quality of capital, liquidity and funding to ensure that it is commensurate with
Westpac’s risk profile, business strategy and risk appetite;
•facilitates the optimisation of funding allocation across Westpac;
•oversees the Liquidity Risk Management Framework, Capital Adequacy Risk Management
Framework and key supporting policies; and
•identifies emerging funding, liquidity, and interest rate risk in the banking book risks and oversees
actions to respond as appropriate.

12WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT
CONTROLLING AND MANAGING RISK
Risk management governance structure as at 31 March 2024
Executive
risk
committees
(continued)
Westpac Group Credit Risk Committee (CREDCO)
•reviews and provides input on the Credit Risk Management Framework, Credit Risk Management
Strategy, Credit Risk Appetite Statement, and key supporting policies and limits;
•oversees Westpac’s credit risk profile against the Board Risk Appetite Statement and thresholds
and reviews and monitors Westpac’s credit risks that are outside of risk appetite or approaching
tolerance limits and monitors remediation plans and actions;
•reviews reporting from the Climate Change Credit Risk Committee on the potential impact on credit
exposures from climate-related transition and physical risks; and
•analyses emerging credit risks and implications of changes in the regulatory and external
environment on the Group credit risk exposures, and reviews business activity with material credit
risk-related impacts.
Westpac Group Market Risk Committee (MARCO)
•reviews and provides input on the Market Risk Management Framework and key market risk
management policies;
•reviews and provides input on policies and limits for managing traded and non-traded market
risk; and
•monitors Westpac’s market risk profile, appetite and exposures.
Westpac Group Operational Risk, Compliance and Resilience Committee (ORCR)
•reviews and provides input on the Operational Risk Management Framework, the Cyber Risk
Management Framework and the Compliance and Conduct Risk Management Framework, and key
supporting policies;
•oversees Westpac’s operational risk, cyber risk, and compliance and conduct risk profiles;
•analyses emerging operational, cyber, compliance and conduct risks;
•reviews the Group-wide operational risk scenarios for exposure to high-severity loss events; and
•reviews and monitors the Group's artificial intelligence risks.
Westpac Group Remuneration Oversight Committee (ROC)
•supports the BRemC and the Board in fulfilling their responsibility to oversee the design, operation
and monitoring of the remuneration framework.
Model Risk Committee
•oversees the operational effectiveness of the Group Model Risk Policy and key supporting artefacts;
•monitors the model risk profile and material model risk exposures, taking into account the
regulatory and external environment;
•oversees approvals for significant changes to Westpac’s material models; and
•oversees material model risk matters raised by associated committees.
Stress Testing Committee
•reviews and provides input on the Westpac Group Stress Testing Policy, stress testing results and
mitigating actions;
•reviews and monitors the effectiveness of Westpac’s Group stress-testing framework; and
•oversees the generation and selection of Group stress testing scenarios, with reference to
emerging risks.
Westpac Group Financial Crime Risk Committee
•reviews and provides input on Westpac’s Financial Crime risk appetite measures for inclusion in the
Board Risk Appetite Statement;
•reviews and provides input on the Financial Crime Risk Management Framework, key supporting
policies, programs and standards;
•reviews regular reporting on Westpac’s aggregate Financial Crime risk exposures, regulatory
matters and measures; and
•analyses emerging financial crime risks developments and implications of changes in the regulatory
and external environment.

PILLAR 3 REPORTAPPENDICESGLOSSARY
DISCLOSURE
REGARDING FORWARD-
LOOKING STATEMENTS
13
Risk management governance structure as at 31 March 2024
Risk
Function
Risk Function
•promotes a strong risk culture and the ‘Voice of Risk’ across the Three Lines of Defence;
•owns the design and content of the Risk Management Framework;
•defines the structure and coverage of risk appetite;
•defines the annual Risk Management Strategy to execute the Risk Management Framework ensuring
that the management of risks is in alignment with risk appetite and business strategy;
•establishes risk policies, procedures and limits;
•measures and reports on risk levels; and
•provides oversight of and direction on the management of risks, including Compliance and Conduct
and Financial Crime risks.
Independent
internal
review
Group Audit
•provides the Board, relevant Board Committees and Senior Executive with independent and
objective evaluation of the Group’s governance, risk management and internal controls.
Divisional
business
units and
functions
Business units and functions
•responsible for identifying, evaluating, owning, monitoring, managing and controlling the existing
and emerging risks in their business, and managing business activities within approved risk appetite
and policies; and
•establish and maintain appropriate governance structures, controls, resources and self-assessment
processes, including issue identification, recording and escalation procedures.

14WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT
GROUP STRUCTURE
APRA applies a tiered approach to measuring Westpac’s capital adequacy
1
by assessing financial strength at three levels:
•Level 1, comprising Westpac Banking Corporation and its subsidiary entities that have been approved by APRA as
being part of a single ‘Extended Licensed Entity’ (ELE) for the purposes of measuring capital adequacy;
•Level 2, the consolidation of Westpac Banking Corporation and all its subsidiary entities except those entities
specifically excluded by APRA regulations. The head of the Level 2 group is Westpac Banking Corporation; and
•Level 3, the consolidation of Westpac Banking Corporation and all its subsidiary entities.
Unless otherwise specified, all quantitative disclosures in this report refer to the prudential assessment of Westpac’s
financial strength on a Level 2 basis
2
. Refer to Appendix II for a list of entities included in the regulatory consolidation for
the purposes of measuring capital adequacy at Level 1 and Level 2.
The Westpac Group
The following diagram shows the Level 3 conglomerate group and illustrates the different tiers of regulatory
consolidation.
Accounting consolidation
3
The consolidated financial statements incorporate the assets and liabilities of all entities (including structured entities)
controlled by Westpac. Westpac and its subsidiaries are referred to collectively as the ‘Group’. The effects of all
transactions between entities in the Group are eliminated on consolidation. Control exists when the parent entity is
exposed to, or has rights to, variable returns from its involvement with an entity, and has the ability to affect those
returns through its power over that entity. Subsidiaries are fully consolidated from the date on which control commences
and they are no longer consolidated from the date that control ceases.
Group entities excluded from the regulatory consolidation at Level 2
Regulatory consolidation at Level 2 covers the global operations of Westpac and its subsidiary entities, including other
controlled banking, securities and financial entities, except for those entities involved in the following business activities:
•insurance;
•acting as manager, responsible entity, approved trustee, trustee or similar role in relation to funds management;
•non-financial (commercial) operations; or
•special purpose entities to which assets have been transferred in accordance with the requirements of
APS120 Securitisation.
Retained earnings and equity investments in subsidiary entities excluded from the consolidation at Level 2 are deducted
from capital, with the exception of securitisation special purpose entities.
1.
APS110 Capital Adequacy outlines the overall framework adopted by APRA for the purpose of assessing the capital adequacy of an ADI.
2.Impaired assets and provisions held in Level 3 entities are excluded from the tables in this report.
3.Refer to Note 29 of Westpac’s 2023 Annual Report for further details.

PILLAR 3 REPORTAPPENDICESGLOSSARY
DISCLOSURE
REGARDING FORWARD-
LOOKING STATEMENTS
15
Subsidiary banking entities
Westpac New Zealand Limited (WNZL), a wholly owned subsidiary entity, is a registered bank incorporated in
New Zealand and regulated by, among others, the Reserve Bank of New Zealand (RBNZ) for prudential purposes.
WNZL uses both the Advanced IRB and Standardised methodologies for credit risk, and the SMA for operational risk.
Other subsidiary banking entities in the Group include Westpac Bank PNG Limited and Westpac Europe GMBH. For the
purposes of determining Westpac’s capital adequacy, subsidiary banking entities are consolidated at Level 2.
Branch operations
Westpac is one of Australia's leading providers of banking and selected financial services, operating under multiple
brands, and predominantly in Australia and New Zealand, with a small presence in Europe, North America and Asia.
Westpac operates through a significant online capability supported by an extensive branch and ATM network, call
centres and specialist relationship and product managers.
Restrictions and major impediments on the transfer of funds or regulatory capital within the Group
Certain subsidiary banking and trustee entities are subject to local prudential regulation in their own right, including
capital adequacy requirements and investment or intra-group exposure limits. Westpac seeks to ensure that its
subsidiary entities are adequately capitalised and adhere to regulatory requirements at all times. Dividends and capital
are repatriated in line with the Group’s policy subject to subsidiary Board approval and local regulations.
Minimum capital (‘thin capitalisation’) rules
Tax legislation in most jurisdictions in which the Group operates prescribes minimum levels of capital that must be
retained in that jurisdiction to avoid a portion of the interest costs incurred in the jurisdiction ceasing to be tax
deductible. Capital for these purposes includes both contributed capital and non-distributed retained earnings. Westpac
seeks to maintain sufficient capital/retained earnings in these entities to comply with these rules.
Tax costs associated with repatriation
Repatriation of retained earnings (and capital) may result in tax being payable in either the jurisdiction from
which the repatriation occurs or Australia on receipt of the relevant amounts. This cost would reduce the amount
actually repatriated.
Intra-group exposure limits
Exposures to related entities are managed within the prudential limits prescribed by APRA in APS222 Associations with
Related Entities
1
. Westpac has an internal limit structure and approval process governing credit exposures to related
entities. This limit structure and approval process, combined with APRA’s prudential limits, is designed to reduce the
potential for unacceptable contagion risk.
RBNZ capital review
2
The RBNZ capital adequacy framework became effective from 1 July 2022. The reforms begun being phased in from
1 October 2021, with changes yet to be fully implemented including:
•WNZL Tier 1 capital requirement will increase to 16% of RWA by 1 July 2028, of which 13.5% must be CET1 and up to
2.5% may be AT1;
•WNZL’s total capital requirement will increase to 18% of RWA by 1 July 2028, of which up to 2% can be Tier 2
capital; and
•Eligible Tier 1 capital will comprise common equity and redeemable perpetual preference shares. Existing AT1 capital
instruments will be phased out by 1 July 2028.
1.
For the purposes of APS222, subsidiaries controlled by Westpac, other than subsidiaries that form part of the ELE, represent ‘related entities’.
Prudential and internal limits apply to intra-group exposures between the ELE and related entities, both on an individual and aggregate basis.
2.WNZL’s references to CET1, AT1 and other capital measures may not align with the Australian definition in the Glossary as they are subject to
RBNZ’s requirements.

16WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT
CAPITAL OVERVIEW
Capital structure
This table shows Westpac’s capital resources on a Level 2 basis under APS111 Capital Adequacy: Measurement of Capital.
31 March30 September31 March
$m202420232023
Tier 1 capital
CET1 capital
Paid up ordinary capital38,94439,82639,824
Treasury shares(815)(759)(759)
Equity based remuneration1,9941,9291,907
Foreign currency translation reserve(332)(171)(160)
Accumulated other comprehensive income(238)(221)(38)
Non-controlling interests - other384444
Retained earnings32,17931,43630,686
Less retained earnings in life and general insurance, funds management and
securitisation entities
(399)
(369)(343)
Deferred fees305334276
Total CET1 capital71,67672,04971,437
Deductions from CET1 capital
Goodwill (excluding funds management entities)(7,901)(7,940)(7,943)
Deferred tax assets(2,186)(2,144)(2,065)
Goodwill in life and general insurance, funds management and
securitisation entities(149)(149)(149)
Capitalised expenditure(2,333)(2,375)(2,250)
Capitalised software(2,658)(2,797)(2,631)
Investments in subsidiaries not consolidated for regulatory purposes(136)(76)(201)
Regulatory expected downturn loss in excess of eligible provisions
a
--(2)
Securitisation(16)(16)-
Defined benefit superannuation fund surplus(146)(217)(67)
Equity investments(234)(228)(209)
Regulatory adjustments to fair value positions(153)(222)(276)
Total deductions from CET1 capital(15,912)(16,164)(15,793)
Total CET1 capital after deductions55,76455,88555,644
Additional Tier 1 capital
Basel III complying instruments10,95610,0379,958
Total Additional Tier 1 capital10,95610,0379,958
Deductions from Additional Tier 1 capital
Holdings of own and other financial institutions Additional Tier 1
capital instruments(26)(46)(25)
Total deductions from Additional Tier 1 capital(26)(46)(25)
Net Additional Tier 1 regulatory capital10,9309,9919,933
Net Tier 1 regulatory capital66,69465,87665,577
Tier 2 capital
Basel III complying instruments28,06725,74023,160
Eligible general reserve for credit loss8961,0511,103
Total Tier 2 capital28,96326,79124,263
Deductions from Tier 2 capital
Holdings of own and other financial institutions Tier 2 capital instruments(410)(370)(367)
Total deductions from Tier 2 capital(410)(370)(367)
Net Tier 2 regulatory capital28,55326,42123,896
Total regulatory capital95,24792,29789,473
a.An explanation of the relationship between this deduction, regulatory expected loss and provisions for impairment charges is contained in
Appendix IV.

PILLAR 3 REPORTAPPENDICESGLOSSARY
DISCLOSURE
REGARDING FORWARD-
LOOKING STATEMENTS
17
Capital management strategy
Westpac's capital management strategy is reviewed on an ongoing basis and annually through an Internal Capital
Adequacy Assessment Process (ICAAP). Key considerations include:
•Regulatory capital minimums together with the capital conservation buffer (CCB) and countercyclical capital buffer
are the Total CET1 Requirement. The Total CET1 Requirement for D-SIBs, including Westpac, is at least 10.25%
1
;
•Strategy, business mix and operations and contingency plans;
•Perspectives of external stakeholders including rating agencies as well as equity and debt investors; and
•A stress testing framework that challenges the capital measures, coverage and capital requirements including the
impact of adverse economic scenarios.
The Board has determined that Westpac will target a CET1 operating capital range of between 11.0% and 11.5%, in normal
operating conditions.
Westpac’s capital adequacy ratios
31 March30 September31 March
%202420232023
The Westpac Group at Level 2
CET1 capital ratio12.5512.3812.28
Additional Tier 1 capital ratio2.462.212.20
Tier 1 capital ratio15.0114.5914.48
Tier 2 capital ratio6.425.865.27
Total regulatory capital ratio21.4320.4519.75
The Westpac Group at Level 1
CET1 capital ratio12.8012.6212.50
Additional Tier 1 capital ratio2.682.422.38
Tier 1 capital ratio15.4815.0414.88
Tier 2 capital ratio7.116.445.79
Total regulatory capital ratio22.5921.4820.67
Westpac New Zealand Limited’s capital adequacy ratios
31 March30 September31 March
%202420232023
Westpac New Zealand Limited
CET1 capital ratio11.3711.1011.07
Additional Tier 1 capital ratio2.141.621.65
Tier 1 capital ratio13.5112.7212.72
Tier 2 capital ratio1.721.730.99
Total regulatory capital ratio15.2314.4513.71
Westpac New Zealand capital ratios are reported in accordance with RBNZ requirements.
1.
Noting that APRA may apply higher CET1 requirements for an individual ADI.

18WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT
CAPITAL OVERVIEW
This table shows risk weighted assets for each risk type included in the regulatory assessment of Westpac’s capital
adequacy. Westpac’s approach to managing each risk type, and more detailed disclosures on the prudential assessment
of capital requirements, are presented in the following sections of this report.
31 March 2024
$m
IRB
Approach
a
FIRB
Approach
b
Standardised
Approach
c
Total Risk
Weighted
Assets
Credit risk
Corporate25,269-1,23026,499
Business Lending23,426-22923,655
Property Finance30,386--30,386
Large Corporate-20,558-20,558
Sovereign-1,9191,6043,523
Financial Institutions-13,0887313,161
Residential Mortgages115,918-16,786132,704
Australian Credit Cards3,789--3,789
Other Retail4,259-4244,683
Small Business17,378-11817,496
Specialised Lending3,276-4573,733
Securitisation7,317--7,317
New Zealand44,184-2,30646,490
Credit valuation adjustment--5,7475,747
Total Credit risk275,20235,56528,974339,741
Market risk11,251
Operational risk54,934
Interest rate risk in the banking book33,599
Other
d
4,892
Total444,417
a.IRB approaches excluding Foundation IRB (FIRB). Refer page 23 for a summary of approach by asset class.
b.Under FIRB, an ADI must provide its own estimates of probability of default (PD) and maturity and rely on supervisory estimates of loss given
default (LGD) and EAD.
c.Westpac’s standardised risk weighted assets are categorised based on their equivalent IRB categories.
d.Other assets include cash items, unsettled transactions, fixed assets and other non-interest earning assets.

PILLAR 3 REPORTAPPENDICESGLOSSARY
DISCLOSURE
REGARDING FORWARD-
LOOKING STATEMENTS
19
$m
IRB
Approach
a
FIRB
Approach
b
Standardised
Approach
c
Total Risk
Weighted
Assets
30 September 2023
Credit risk
Corporate24,818-65625,474
Business Lending23,860-22324,083
Property Finance30,416--30,416
Large Corporate-20,570-20,570
Sovereign-2,1431,8053,948
Financial Institutions-13,4577113,528
Residential Mortgages112,948-19,290132,238
Australian Credit Cards3,712--3,712
Other Retail4,607-4255,032
Small Business17,040-12517,165
Specialised Lending3,065-4663,531
Securitisation7,661--7,661
New Zealand44,350-2,29846,648
Credit valuation adjustment--5,7525,752
Total Credit risk272,47736,17031,111339,758
Market risk11,538
Operational risk55,175
Interest rate risk in the banking book40,138
Other
d
4,809
Total451,418
31 March 2023
Credit risk
Corporate24,309-1,14725,456
Business Lending25,928-17726,105
Property Finance31,234--31,234
Large Corporate-21,228-21,228
Sovereign-2,3571,7774,134
Financial Institutions-15,0577515,132
Residential Mortgages109,164-19,651128,815
Australian Credit Cards3,957--3,957
Other Retail5,304-4645,768
Small Business18,219-17018,389
Specialised Lending2,931-4643,395
Securitisation6,400--6,400
New Zealand43,301-2,03045,331
Credit valuation adjustment--5,2145,214
Total Credit risk270,74738,64231,169340,558
Market risk15,168
Operational risk56,900
Interest rate risk in the banking book34,748
Other
d
5,572
Total452,946
a.IRB approaches excluding Foundation IRB (FIRB). Refer page 23 for a summary of approach by asset class.
b.Under FIRB, an ADI must provide its own estimates of PD and maturity and rely on supervisory estimates of LGD and EAD.
c.Westpac’s standardised risk weighted assets are categorised based on their equivalent IRB categories.
d.Other assets include cash items, unsettled transactions, fixed assets and other non-interest earning assets.

20WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT
LEVERAGE RATIO
Leverage Ratio
The following table summarises Westpac’s leverage ratio.
$ billion31 Mar 202431 Dec 202330 Sept 202330 June 2023
Net Tier 1 Regulatory Capital66.765.365.964.5
Total Exposures1,214.91,207.41,196.71,202.1
Leverage ratio5.49%5.41%5.50%5.36%
Leverage ratio disclosure
$m
31 March 2024
On-balance sheet exposures
1On-balance sheet items (excluding derivatives and securities financing transactions (SFTs), but including collateral)1,045,971
2Asset amounts deducted in determining Tier 1 capital(15,912)
3Total on-balance sheet exposures (excluding derivatives and SFTs) (sum of rows 1 and 2)1,030,059
Derivative exposures
4Replacement cost associated with all derivatives transactions (i.e. net of eligible cash variation margin)7,310
5Add-on amounts for potential future credit exposure (PFCE) associated with all derivatives transactions22,715
6Gross-up for derivatives collateral provided where deducted from the balance sheet assets pursuant to the
Australian Accounting Standards
4,843
7Deductions of receivables assets for cash variation margin provided in derivatives transactions(3,845)
8Exempted central counterparty (CCP) leg of client-cleared trade exposures-
9Adjusted effective notional amount of written credit derivatives-
10Adjusted effective notional offsets and add-on deductions for written credit derivatives-
11Total derivative exposures (sum of rows 4 to 10)31,023
SFT exposures
12Gross SFT assets (with no recognition of netting), after adjusting for sales accounting transactions42,992
13Netted amounts of cash payables and cash receivables of gross SFT assets-
14Counterparty credit risk exposure for SFT assets5,686
15Agent transaction exposures-
16Total SFT exposures (sum of rows 12 to 15)48,678
Other off-balance sheet exposures
17Off-balance sheet exposure at gross notional amount216,154
18Adjustments for conversion to credit equivalent amounts(110,981)
19Other off-balance sheet exposures (sum of rows 17 and 18)105,173
Capital and total exposures
20Net Tier 1 Regulatory Capital66,694
21Total exposures (sum of rows 3, 11, 16 and 19)1,214,933
Leverage ratio %
22Leverage ratio5.49%
Summary comparison of total consolidated assets to leverage ratio exposure measure
$m31 March 2024
1Total consolidated assets disclosed in 2024 Interim Financial Report1,052,661
2Adjustment for investments in banking, financial, insurance or commercial entities that are consolidated for
accounting purposes but outside the scope of regulatory consolidation
(209)
3Adjustment for assets held on the balance sheet in a fiduciary capacity pursuant to the Australian Accounting
Standards but excluded from the leverage ratio exposure measure
-
4Adjustments for derivative financial instruments15,228
5Adjustment for SFTs (i.e. repos and similar secured lending)34,601
6Adjustment for off-balance sheet exposures (i.e. conversion to credit equivalent amounts of off-balance
sheet exposures)
105,173
7Other adjustments7,479
8Leverage ratio exposure1,214,933

PILLAR 3 REPORTAPPENDICESGLOSSARY
DISCLOSURE
REGARDING FORWARD-
LOOKING STATEMENTS
21
CREDIT RISK MANAGEMENT
Credit risk is the risk of financial loss where a customer or counterparty fails to meet their financial obligations
to Westpac.
Credit Risk Management Framework and policies
Westpac maintains a credit risk management framework and supporting policies that clearly define roles and
responsibilities, acceptable practices, limits and key controls.
The Credit Risk Management Framework describes the principles, methodologies, systems, roles and responsibilities,
reports and controls that exist for managing credit risk in Westpac. The Credit Risk Rating System policy describes the
credit risk rating system philosophy, design, key features, roles and responsibilities and uses of rating outcomes.
Concentration risk policies cover individual counterparties, specific industries (e.g. property) and individual countries.
In addition, we have policies covering risk appetite statements, environmental, social and governance (ESG) risk, credit
risks and the delegation of credit approval authorities.
At the divisional level, credit policies and standards embed the Group’s framework requirements. Policies and standards
cover the origination, evaluation, approval, documentation, settlement and on-going management of credit risks, and
sector policies to guide the extension of credit where industry-specific guidelines are considered necessary.
Credit approval limits represent the formal delegation of credit approval authority to responsible individuals throughout
the organisation.
Structure and organisation
The Chief Risk Officer is responsible for the effectiveness of overall risk management throughout Westpac, including
credit risk. The Group Chief Credit Officer is responsible for the effectiveness of credit risk management, including
credit approval decisioning beyond business authority level and appointing our most senior authorised credit officers.
Authorised Credit Officers have delegated authority to approve credit risk exposures, including customer risk grades,
other credit parameters and their ongoing review. Our largest exposures are approved by our most experienced
authorised credit officers. Management is responsible for managing credit risks originated in their business and for
managing risk adjusted returns from their business credit portfolios, within the approved risk appetite, risk management
framework and policies.
Approach
Westpac adopts two approaches to managing credit risk depending upon the nature of the customer and the product.
Transaction-managed approach
For larger customers, Westpac evaluates credit requests by undertaking detailed individual customer and transaction
risk analysis (the ‘transaction-managed’ approach). Such customers are assigned a customer risk grade (CRG)
representing Westpac’s estimate of their probability of default (PD). Each facility is assigned a loss given default (LGD).
The Westpac credit risk rating system has 20 risk grades for non-defaulted customers and 8 risk grades for defaulted
customers. Non-defaulted CRGs down to the level of normally acceptable risk (i.e. D grade – see table below) are
mapped to Moody’s and S&P Global Ratings (S&P) external senior unsecured ratings. This mapping allows Westpac to
integrate the rating agencies’ default history with internal historical data when calculating PDs.
The final assignment of CRGs and LGDs is approved by authorised credit approvers with appropriate delegated approval
authority. All material credit exposures are also approved by authorised Credit Officers who are part of the risk
management stream and operate independently of the areas originating the credit risk proposals. Authorised Credit
Officer decisions are subject to reviews to ensure consistent quality and confirm compliance with approval authority.
Separate teams are responsible for maintaining accurate and timely recording of all credit risk approvals and changes
to customer and facility data. These teams also operate independently of both the areas originating the credit risk
proposals and the credit risk approvers. Appropriate segregation of functions is one of the key requirements of our
Credit Risk Management Framework.

22WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT
CREDIT RISK MANAGEMENT
Alignment of Westpac risk grades
The table below shows the current alignment between Westpac’s internal CRGs and the corresponding external rating.
Note that only high-level CRG groupings are shown.
Westpac customer risk gradeMoody’s RatingS&P Rating
AAaa - Aa3AAA - AA–
BA1 - A3A+ - A–
CBaa1 - Baa3BBB+ - BBB–
DBa1 - B1BB+ - B+
Westpac Rating
EWatchlist
FSpecial mention
GSubstandard/default
HDoubtful/default
For Specialised Lending, Westpac aligns exposures to the appropriate supervisory slot based on an assessment that
takes into account borrower strength and security quality, as required by APS113 Capital Adequacy: Internal Ratings-
Based Approach to Credit Risk (APS113).
Program-managed approach
High-volume retail customer credit portfolios with homogenous credit risk characteristics are managed on a statistical
basis according to pre-determined objective criteria (the ‘program-managed’ approach). Program-managed exposure
includes all consumer and some small business customers. Quantitative scorecards are used to assign application
and behavioural scores to enable risk-based decision making within these portfolios. For capital estimation and other
purposes, risk-based customer segments are created based upon modelled PD, LGD and, where applicable, exposure
at default (EAD)
1
. Accounts are then assigned to respective segments based on customer and account characteristics.
Each segment is assigned a quantified measure of its PD, LGD and EAD. For both transaction-managed and program-
managed approaches, PD and LGD assignment is regularly monitored and validated against subsequent customer
performance and models and credit processes are recalibrated when required. CRGs, PDs and LGDs are reviewed at
least annually.
Alignment of Basel categories to Westpac portfolios
APRA’s capital framework includes prudential standards for credit risk capital (APS113 Capital Adequacy: Internal
Ratings-Based Approach to Credit Risk). In line with the standard, an ADI must categorise banking book exposures into
four broad IRB APS113 asset classes (Corporate, Sovereign, Financial Institutions and Retail) and apply the prescribed
treatment for those classes to each credit exposure within them for the purposes of deriving its regulatory capital
requirement. APS113 cascades these asset classes into further sub-asset classes as per below.
APRA’s capital framework resulted in changes to previously reported credit asset classes from 1 January 2023. This
included changes to credit RWA calculations from advanced Internal rating based approach (AIRB) to a foundation
Internal rating based approach (FIRB) for some exposure classes. Under FIRB, an ADI must provide its own estimates of
PD and maturity and rely on supervisory estimates of LGD and EAD.
1.
Under APS113 the credit conversion factors used to calculate EAD are prescribed for all portfolios other than revolving retail.

PILLAR 3 REPORTAPPENDICESGLOSSARY
DISCLOSURE
REGARDING FORWARD-
LOOKING STATEMENTS
23
The below table sets out Westpac credit risk asset classes under APRA’s standards.
Credit Asset ClassesAsset Class definition
CorporateThe Corporate asset class covers exposures to corporate counterparties with consolidated
annual revenue <$750m, but greater than or equal to $75m.
Business LendingBusiness Lending asset class covers exposures to corporate counterparties with consolidated
annual revenue <$75m.
Property FinanceProperty Finance asset class covers Income-producing Real Estate (IPRE) exposures
risk-weighted according to the AIRB approach. Property finance represents exposures where
repayments depend primarily on the cash flows generated by the asset or other real estate
assets owned by the borrower.
Large CorporateLarge Corporate asset class covers exposures to corporate counterparties with consolidated
annual revenue greater than $750m. Credit RWA is measured under FIRB.
SovereignSovereign asset class covers exposures to central and sub-national governments, central
banks, and development banks or institutions eligible for zero risk weights. Credit RWA is
measured under FIRB.
Financial InstitutionsFinancial Institutions asset class covers exposures to financial institution counterparties.
Financial institutions include, but are not limited to, banks, securities firms, insurance
companies and leveraged funds. Credit RWA is measured under FIRB.
Residential
Mortgages
Residential Mortgages asset class covers exposures, to individuals and not for business
purposes, fully or partially secured by residential property. Non-standard mortgages receive
100% standardised risk weight (rather than the internally-modelled Retail IRB approach).
Australian
Credit Cards
Australian Credit Cards, otherwise known as Qualifying Revolving Retail, covers exposure
to individuals and not for business purposes which are revolving, unsecured and
unconditionally cancellable.
Other RetailOther retail asset class covers retail exposures which do not meet the criteria of any other
retail asset class.
Small BusinessSmall Business asset class covers exposures where the total exposures are <$1.5m, the
customer does not hold a complex product and consolidated annual revenues are <$75m.
Exposures are managed as part of a portfolio.
Specialised LendingSpecialised Lending asset class covers exposures subject to the supervisory slotting approach
and includes Project and Object finance.
Project finance is defined as exposures where revenues generated by a single project, are
both the primary source of repayment and security for the loan. Object finance is defined
as lending for the acquisition of equipment where the repayment of the loan is dependent
on the cash flows generated by the specific assets that have been financed and pledged or
assigned to the lender.
SecuritisationSecuritised portfolios are treated separately under APS120 Securitisation.
New ZealandRBNZ regulated exposures are calculated using RBNZ rules and disclosed separately under a
New Zealand class.
Standardised and Securitised portfolios are separately treated under APS112 Capital Adequacy: Standardised Approach
to Credit Risk and APS120 Securitisation respectively.

24WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT
CREDIT RISK MANAGEMENT
ApproachAPS asset classTypes of exposures
Transaction-
Managed Portfolios
Corporate
Sovereign
Financial Institutions
Direct lending
Contingent lending
Derivative counterparty
Asset warehousing
Underwriting
Secondary market trading
Foreign exchange settlement
Other intra-day settlement obligations
Program-
Managed Portfolios
Residential Mortgages
Qualifying revolving retail
Other retail
Small-and medium-sized enterprise retail
Mortgages
Equity access loans
Australian credit cards
Personal loans
Overdrafts
Auto and equipment finance
Business development loans
Business overdrafts Other term products
Internal ratings process for transaction-managed portfolios
The process for assigning and approving individual customer PDs and facility LGDs involves:
•An expert judgement decisioning process is employed to evaluate customer CRG and facility LGDs;
•CRG and LGDs are recommended under the guidance of criteria set out in established credit policies and, where
relevant, with use of internally developed risk grading models. Each CRG is associated with an estimated PD;
•Authorised credit officers evaluate the recommendations and approve the final CRG and facility LGDs. Authorised
credit officers may override recommendations;
•Under certain circumstances model outcomes are approved by the business, where no adjustment or override has
been applied to the input data or model produced result; and
•Decisions are subject to hindsighting by credit officers to ensure consistency and confirm compliance with
approval authority.
For ongoing exposures to transaction-managed customers, risk grades and facility LGDs are required to be reviewed at
least annually, but also whenever material changes occur.
No material deviations from the reference definition of default are permitted.
Internal ratings process for program-managed portfolios
The process for assigning PDs, LGDs and, where applicable, EADs to the program-managed portfolio involves
segmenting or categorising the portfolio into a number of pools per product. These pools are created by analysing
risk characteristics that have historically predicted that an account is likely to go into default or loss.
No material deviations from the reference definition of default are permitted.
Internal credit risk ratings system
In addition to using the credit risk estimates as the basis for regulatory capital purposes, they are also used for the
purposes described below:
Provisioning - Credit provisions are held by Westpac to cover expected credit losses in the loan portfolio. Provisioning
includes both individual and collective components, including overlays. Individual provisions are calculated on impaired
loans taking into account management’s best estimate of the present value of future cashflows.
Collective provisions are established on a portfolio basis using a framework that considers PD, LGD, EAD, total
committed exposure, level of arrears, recent past experience and forward looking macro-economic forecasts. This also
includes a consideration of overlays.
Risk-adjusted performance measurement - Business performance is measured using allocated capital, which
incorporates charges for regulatory capital, including credit capital and capital for other risk types.
Pricing - Westpac prices loans with consideration of the return on the capital allocated to the loan. Returns include
interest income and fees after expected credit losses and other costs.

PILLAR 3 REPORTAPPENDICESGLOSSARY
DISCLOSURE
REGARDING FORWARD-
LOOKING STATEMENTS
25
Credit approval - For transaction-managed facilities, approval authorities are tiered based on the CRG, with lower
limits applicable for customers with a higher PD. Program-managed facilities are approved on the basis of application
scorecard outcomes and product based approval authorities.
Control mechanisms for the credit risk rating system include:
•Westpac’s credit risk rating system is reviewed by Risk and presented to BRiskC confirming that the rating criteria
and policy are appropriate given the current portfolio, control framework and external conditions;
•All models impacting the risk rating process are periodically reviewed by Model Owner in accordance with Westpac’s
model risk policies;
•Credit risk estimate models (including PD, LGD and EAD levels) are independently assessed annually by Model Risk
and outcomes are noted at the Credit Risk Estimate Forum and the Model Risk Committee (a sub-committee of the
Group Executive Risk Committee). All credit risk estimate models used for IRB purposes are approved by Head of
Model Risk;
•Group Audit undertakes an independent annual review of the credit risk rating system in accordance with APS113; and
•CREDCO, RISKCO and BRiskC monitor the risk profile, performance and management of Westpac’s credit portfolio
and the development and review of key credit risk policies.
Risk reporting
A report on Westpac’s credit risk portfolio is provided to CREDCO, RISKCO and BRiskC quarterly. It includes monitoring
of performance against risk appetite.
Credit risk and asset quality are also reported to the Board, including details of impairment losses, stressed exposures,
delinquency trends and key performance metrics.

26WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT
CREDIT RISK MANAGEMENT
Summary credit risk disclosure
31 March 2024
$m
Exposure
at Default
Risk
Weighted
Assets
Regulatory
Expected
Loss
a
Regulatory
expected
loss for
non-defaulted
exposures
Specific
Provision for
Non-performing
Exposures
Actual
losses for
the 6 months
ended
Corporate42,93625,26954715116314
Business Lending43,81523,4265542403226
Property Finance55,50330,3863281731533
Large Corporate40,20520,5588585--
Sovereign168,6371,91922--
Financial Institutions38,42813,088602817-
Residential Mortgages540,189115,9181,32785147920
Australian Credit Cards13,5613,7891661283856
Other Retail4,2714,2591911325950
Small Business28,00217,37851034118326
Specialised Lending4,1163,2763030--
Securitisation38,0097,317----
Standardised
b
27,41126,668--1252
New Zealand132,88846,49058337415710
Total1,177,971339,7414,3832,5351,696187
a.Includes regulatory expected losses for defaulted and non-defaulted exposures.
b.Includes credit valuation adjustment.
30 September 2023
$m
Exposure
at Default
Risk
Weighted
Assets
Regulatory
Expected
Loss
a
Regulatory
expected
loss for
non-defaulted
exposures
Specific
Provision for
Non-performing
Exposures
Actual
losses for
the 12 months
ended
Corporate40,54524,8184771519316
Business Lending42,32723,86052924429639
Property Finance54,73630,4163201621574
Large Corporate41,32820,5708484--
Sovereign175,3772,14333--
Financial Institutions38,42613,4576630169
Residential Mortgages529,740112,9481,16678838232
Australian Credit Cards13,5903,7121551243199
Other Retail4,8484,60719313359122
Small Business28,23217,04050934616557
Specialised Lending3,9813,0652525--
Securitisation37,6007,661----
Standardised
b
29,39328,813--975
New Zealand133,74446,64855137712027
Total1,173,867339,7584,0782,4671,416410
a.Includes regulatory expected losses for defaulted and non-defaulted exposures.
b.Includes credit valuation adjustment.

PILLAR 3 REPORTAPPENDICESGLOSSARY
DISCLOSURE
REGARDING FORWARD-
LOOKING STATEMENTS
27
31 March 2023
$m
Exposure
at Default
Risk
Weighted
Assets
Regulatory
Expected
Loss
a
Regulatory
expected
loss for
non-defaulted
exposures
Specific
Provision for
Non-performing
Exposures
Actual
losses for
the 6 months
ended
Corporate
b
37,11024,309588136147(26)
Business Lending40,86125,92849026323516
Property Finance52,69731,2342881541342
Large Corporate40,24821,2286363--
Sovereign210,8682,35722--
Financial Institutions37,68715,0577131185
Residential Mortgages518,276109,1641,05773133011
Australian Credit Cards13,6753,9571721313744
Other Retail5,5865,3042341518053
Small Business29,55918,21957637419631
Specialised Lending3,7462,9312626--
Securitisation32,8316,400----
Standardised
c
30,25329,139--98-
New Zealand134,50745,3315343601187
Total1,187,904340,5584,1012,4221,393143
a.Includes regulatory expected losses for defaulted and non-defaulted exposures.
b.Corporate loan losses include the recovery of a previously written off loan of $40 million.
c.Includes credit valuation adjustment.
Loan impairment provisions
Expected credit losses (ECL) are estimates of the cashflow shortfalls expected to result from defaulted exposures over
the relevant timeframe. ECL is determined by evaluating a range of possible outcomes and taking into account the
time value of money, past events, current conditions and forecasts of future economic conditions. Westpac calculates
provisions for ECL based on a three-stage approach:
•Stage 1: 12 months ECL (performing) - For financial assets where there has been no significant increase in credit risk
since origination, a provision for 12-month ECL is recognised.
•Stage 2: Lifetime ECL (performing) - For financial assets where there has been a significant increase in credit risk
since origination and where the asset is still performing, a provision for lifetime ECL is recognised.
Determining when a financial asset has experienced a significant increase in credit risk since origination is a critical
accounting judgement. The determination of a significant increase in risk is driven by the change in the probability of
default (PD) since origination. In determining whether a change in PD represents a significant increase in risk, relative
changes in PD and absolute PD thresholds are both considered based on the portfolio of the exposure.
•Stage 3: Lifetime ECL (non-performing) - For financial assets that are non-performing a provision for lifetime ECL is
recognised. Indicators include a breach of contract with Westpac such as a default on interest or principal payments
or a borrower experiencing significant financial difficulties.
Collective and individual assessment – Financial assets that are in Stages 1 and 2 are assessed on a collective basis as
are financial assets in Stage 3 below specified exposure thresholds. Those financial assets in Stage 3 above the specified
exposure thresholds are assessed on an individual basis.
Overlays – Where appropriate, adjustments are made to modelled outcomes to reflect reasonable and supportable
information about estimated cashflow shortfalls on defaulted exposures not already incorporated in the models.
Judgements can change with time as new information becomes available which could result in changes to the provision
for ECL.
Expected life – Lifetime ECL represents the expected credit losses that result from default events over the expected life
of a financial instrument. In considering lifetime ECL, the remaining contractual life is used for non-retail portfolios. For
retail portfolios lifetime ECL is calibrated to historically observed portfolio behaviour.

28WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT
CREDIT RISK MANAGEMENT
Forward looking information - The measurement of ECL for each stage and the assessment of significant increase
in credit risk considers information about past events and current conditions as well as reasonable and supportable
projections of future events and economic conditions. In order to capture the asymmetry of the losses expected over
the range of plausible future events and economic conditions, Westpac considers three future macroeconomic scenarios:
base, upside and downside scenarios.
The macroeconomic variables used in these scenarios, include (but are not limited to) employment to population ratio,
real gross domestic product growth rates and residential and commercial property price indices.
The ECL is a weighted average of the credit losses expected under these three scenarios. The scenario weights are based
on Westpac’s assessment of upside and downside risks taking into account current trends, forward looking conditions
and the degree of uncertainty attached to these projections.
Regulatory classification of loan impairment provisions
All individually assessed provisions (IAPs) raised under Australian Accounting Standards (AAS) are classified as specific
provisions in accordance with APS220 Credit Risk Management. Only Collectively Assessed Provisions (CAPs) raised
under AAS for non-performing exposures are classified as specific provisions.
Expected credit loss provision
This table provides a summary of expected credit loss provisions. Stage 1 and Stage 2 credit losses are included in
the provisions held against the Performing Exposures line item. Stage 3 credit losses are included in the Total Specific
Provision line item.
The increase in IAPs since 30 September 2023 was mainly due to new IAPs in the trade and manufacturing sectors.
The increase in CAPs was driven by increase in mortgage 90+ day delinquencies and less favourable forward-looking
outlooks for interest rates and commercial property prices.
AAS Provisions
Total Regulatory
$mIAPsCAPsProvisions
31 March 2024
Specific Provisions
for impaired loans461238699
for defaulted but not impaired loans-997997
Total Specific Provision
a
4611,2351,696
Provisions held against performing exposures-3,4393,439
Total provisions for ECL4614,6745,135
30 September 2023
Specific Provisions
for impaired loans351215566
for defaulted but not impaired loans-850850
Total Specific Provision
a
3511,0651,416
Provisions held against performing exposures-3,5253,525
Total provisions for ECL3514,5904,941
31 March 2023
Specific Provisions
for impaired loans382269651
for defaulted but not impaired loans-742742
Total Specific Provision
a
3821,0111,393
Provisions held against performing exposures-3,5303,530
Total provisions for ECL3824,5414,923
a.Provisions classified according to APRA’s letter dated 4 July 2017 “Provisions for regulatory purposes and AASB 9 financial instruments”.

PILLAR 3 REPORTAPPENDICESGLOSSARY
DISCLOSURE
REGARDING FORWARD-
LOOKING STATEMENTS
29
Movement in provisions for impairment
For the 6 months ended 31 March 2024PerformingNon-performing
$mStage 1Stage 2Stage 3Total
Balance as at 30 September 2023 for Loans and
Credit Commitments
7062,8081,4164,930
Transfers to Stage 11,471(1,434)(37)-
Transfers to Stage 2(615)835(220)-
Transfers to Stage 3(6)(320)326-
Business activity during the period147210(165)192
Net remeasurement of provision for ECL(989)618629258
Write-offs--(277)(277)
Exchange rate and other adjustments(2)(4)2418
Balance as at 31 March 2024 for Loans and Credit Commitments7122,7131,6965,121
Balance as at 30 September 2023 for debt securities56-11
Provision for ECL on debt securities at amortised cost-2-2
Provision for ECL on debt securities at FVOCI
a
1--1
Total provision as at 31 March 202468-14
Total provision for ECL as at 31 March 20247182,7211,6965,135
a.Impairment of debt securities at Fair Value through Other Comprehensive Income (FVOCI) is recognised in the income statement with a
corresponding amount in other comprehensive income. There is no reduction of the carrying value of the debt securities which remain at
fair value.
For the 12 months ended 30 September 2023PerformingNon-performing
$mStage 1Stage 2Stage 3Total
Balance as at 30 September 2022 for Loans and
Credit Commitments
8852,3411,3994,625
Transfers to Stage 11,675(1,546)(129)-
Transfers to Stage 2(640)1,119(479)-
Transfers to Stage 3(8)(496)504-
Business activity during the period269140(296)113
Net remeasurement of provision for ECL(1,479)1,239965725
Write-offs--(601)(601)
Exchange rate and other adjustments4115368
Balance as at 30 September 2023 for Loans and
Credit Commitments
7062,8081,4164,930
Balance as at 30 September 2022 for debt securities46-10
Provision for ECL on debt securities at amortised cost----
Provision for ECL on debt securities at FVOCI
a
1--1
Total provision as at 30 September 202356-11
Total provision for ECL as at 30 September 20237112,8141,4164,941
a.Impairment of debt securities at Fair Value through Other Comprehensive Income (FVOCI) is recognised in the income statement with a
corresponding amount in other comprehensive income. There is no reduction of the carrying value of the debt securities which remain at
fair value.

30WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT
CREDIT RISK MANAGEMENT
For the 6 months ended 31 March 2023PerformingNon-performing
$mStage 1Stage 2Stage 3Total
Balance as at 30 September 2022 for Loans and
Credit Commitments
8852,3411,3994,625
Transfers to Stage 1694(619)(75)-
Transfers to Stage 2(159)408(249)-
Transfers to Stage 3(4)(247)251-
Business activity during the period13654(136)54
Net remeasurement of provision for ECL(670)677456463
Write-offs--(271)(271)
Exchange rate and other adjustments9141841
Balance as at 31 March 2023 for Loans and Credit Commitments8912,6281,3934,912
Balance as at 30 September 2022 for debt securities46-10
Provision for ECL on debt securities at amortised cost----
Provision for ECL on debt securities at FVOCI
a
1--1
Total provision as at 31 March 202356-11
Total provision for ECL as at 31 March 20238962,6341,3934,923
a.Impairment of debt securities at Fair Value through Other Comprehensive Income (FVOCI) is recognised in the income statement with a
corresponding amount in other comprehensive income. There is no reduction of the carrying value of the debt securities which remain at
fair value.
Overlays included in provisions for ECL on loans and credit commitments
As atAs atAs at
$m31 March 202430 Sept 202331 March 2023
Modelled provision for ECL on loans and credit commitments4,8614,4984,192
Overlays260432720
Total provisions for ECL on loans and credit commitments5,1214,9304,912

PILLAR 3 REPORTAPPENDICESGLOSSARY
DISCLOSURE
REGARDING FORWARD-
LOOKING STATEMENTS
31
CREDIT RISK EXPOSURE
Exposure at Default by major type
1
The following tables segment the portfolio by characteristics that provide an insight into the assessment of credit
risk concentration.
Off-balance sheet
Total
Exposure
at Default
Average
6 months
ended$m
On balance
sheet
Non-market
related
Market
related
31 March 2024
Corporate29,17710,2363,52342,93641,459
Business Lending37,4496,25810843,81543,301
Property Finance50,0265,14832955,50354,882
Large Corporate21,25614,6204,32940,20540,416
Sovereign152,73122215,684168,637175,399
Financial Institutions16,8775,64415,90738,42837,023
Residential Mortgages475,87464,315-540,189536,060
Australian Credit Cards6,2847,277-13,56113,586
Other Retail3,413858-4,2714,565
Small Business20,7687,234-28,00228,116
Specialised Lending2,2641,6601924,1164,035
Securitisation30,9716,90713138,00938,065
Standardised19,1315,3192,96127,41128,941
New Zealand111,20620,973709132,888133,838
Total977,427156,67143,8731,177,9711,179,686
30 September 2023
Corporate27,4109,8353,30040,54538,676
Business Lending36,2855,9895342,32741,833
Property Finance48,8775,57728254,73653,779
Large Corporate22,84513,6864,79741,32840,356
Sovereign148,76729726,313175,377198,239
Financial Institutions17,0014,54516,88038,42638,031
Residential Mortgages464,31665,424-529,740523,896
Australian Credit Cards6,1707,420-13,59013,639
Other Retail3,886962-4,8485,232
Small Business21,2007,032-28,23229,059
Specialised Lending2,0791,803993,9813,897
Securitisation29,8237,7235437,60035,485
Standardised21,0775,2493,06729,39329,709
New Zealand111,49121,536717133,744132,661
Total961,227157,07855,5621,173,8671,184,492
Off-balance sheet
Total
Exposure
at Default$m
On balance
sheet
Non-market
related
Market
related
31 March 2023
Corporate25,9008,3192,89137,110
Business Lending35,2555,5416540,861
Property Finance47,2755,09732552,697
Large Corporate20,81814,7674,66340,248
Sovereign162,96818847,712210,868
Financial Institutions17,8194,10615,76237,687
Residential Mortgages452,59265,684-518,276
Australian Credit Cards6,1497,526-13,675
Other Retail4,5841,002-5,586
Small Business22,2807,279-29,559
Specialised Lending1,8461,7461543,746
Securitisation26,2546,5067132,831
Standardised24,2063,3872,66030,253
New Zealand112,73121,302474134,507
Total960,677152,45074,7771,187,904
1.APRA’s capital framework effective 1 January 2023 introduced new credit risk asset classes. This resulted in exposures moving between asset
classes. Given this, for 30 September 2023 the average EAD over 6-months has been shown rather than a 12-month average. For 31 March
2023 the average EAD has not been shown.

32WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT
CREDIT RISK EXPOSURE
Exposure at Default by measurement method
IRBFIRBStandardisedTotal Exposure
$mApproachApproachApproachat Default
31 March 2024
Corporate42,936-6,14449,080
Business Lending43,815-26844,083
Property Finance55,503--55,503
Large Corporate-40,205-40,205
Sovereign-168,6371,604170,241
Financial Institutions-38,4287338,501
Residential Mortgages540,189-16,843557,032
Australian Credit Cards13,561--13,561
Other Retail4,271-1,8396,110
Small Business28,002-15528,157
Specialised Lending4,116-4854,601
Securitisation38,009--38,009
New Zealand114,687-18,201132,888
Total885,089247,27045,6121,177,971
30 September 2023
Corporate40,545-5,34845,893
Business Lending42,327-26142,588
Property Finance54,736--54,736
Large Corporate-41,328-41,328
Sovereign-175,3771,805177,182
Financial Institutions-38,4267138,497
Residential Mortgages529,740-19,386549,126
Australian Credit Cards13,590--13,590
Other Retail4,848-1,8746,722
Small Business28,232-15728,389
Specialised Lending3,981-4914,472
Securitisation37,600--37,600
New Zealand115,430-18,314133,744
Total871,029255,13147,7071,173,867
31 March 2023
Corporate37,110-5,90543,015
Business Lending40,861-20541,066
Property Finance52,697--52,697
Large Corporate-40,248-40,248
Sovereign-210,8681,777212,645
Financial Institutions-37,6877537,762
Residential Mortgages518,276-19,632537,908
Australian Credit Cards13,675--13,675
Other Retail5,586-1,9727,558
Small Business29,559-21329,772
Specialised Lending3,746-4744,220
Securitisation32,831--32,831
New Zealand114,970-19,537134,507
Total849,311288,80349,7901,187,904

PILLAR 3 REPORTAPPENDICESGLOSSARY
DISCLOSURE
REGARDING FORWARD-
LOOKING STATEMENTS
33
Exposure at Default by industry classification
31 March 2024
$m
Accommodation,
cafes
& restaurants
Agriculture,
forestry &
fishingConstruction
Finance &
insurance
Government
administration
& defenceManufacturingMiningProperty
Property
services &
business
servicesServices
a
Trade
b
Transport
& storageUtilities
c
Retail
lendingOther
Total
exposure
at default
Corporate2,6849371,5642,307913,4568373,1334,2656,9284,5556,7635,226-19042,936
Business
Lending
5,84010,5153,3254904103,786436785,7634,7505,8842,009125-40443,815
Property
Finance
599--60---54,6231-18---20255,503
Large Corporate1535201,25155726,8273,1614,9474,1113,5556,9133,1245,060-2440,205
Sovereign1--97,69670,726-22----192---168,637
Financial
Institutions
347756136,924-352--21515816511512-438,428
Residential
Mortgages
-------------540,189-540,189
Australian
Credit Cards
-------------13,561-13,561
Other Retail-------------4,271-4,271
Small Business7181,9014,0321,4163821,7136912,9834,3043,1053,0391,567332-1,81928,002
Specialised
Lending
---295-334111-82155-1,0152,124--4,116
Securitisation---37,064----419-526----38,009
Standardised1084425,1761,675130374704432355558318,67952127,411
New Zealand3689,28595116,4336,9153,3562409,1251,3412,7835,0001,1813,10572,697108132,888
Total10,81823,23711,226198,41880,20119,9545,53575,35920,54521,46626,45516,02116,067649,3973,2721,177,971
a.Includes education, health & community services, cultural & recreational services and personal & other services.
b.Includes wholesale trade and retail trade.
c.Includes electricity, gas & water, and communication services.

34WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT
CREDIT RISK EXPOSURE
30 September
2023
$m
Accommodation,
cafes
& restaurants
Agriculture,
forestry &
fishingConstruction
Finance &
insurance
Government
administration
& defenceManufacturingMiningProperty
Property
services &
business
servicesServices
a
Trade
b
Transport
& storageUtilities
c
Retail
lendingOther
Total
exposure
at default
Corporate2,4128261,5832,1615323,2665773,0783,5057,0174,4965,9714,772-34940,545
Business
Lending
5,54010,4343,31443183,707408875,4584,4755,9621,937141-42542,327
Property
Finance
738--13---53,653112923---17954,736
Large
Corporate
1012731,26929527,1703,8304,3754,2474,1737,7752,5895,206-2341,328
Sovereign---115,51759,620------240---175,377
Financial
Institutions
344746436,8391339--24118012619514-938,426
Residential
Mortgages
-------------529,740-529,740
Australian
Credit Cards
-------------13,590-13,590
Other Retail-------------4,848-4,848
Small Business7411,8983,8661,4614781,7196562,9574,3933,3022,9721,548328-1,91328,232
Specialised
Lending
---295-334192-83200-1,0921,785--3,981
Securitisation---36,619----559-422----37,600
Standardised1054414,9331,88270314834030333485621,2617629,393
New Zealand3519,52686916,9986,7193,5722299,0001,4302,7905,2961,2953,29072,32356133,744
Total10,33223,03511,006215,56269,24220,1775,92373,63319,95722,29627,40514,91515,592641,7623,0301,173,867
a.Includes education, health & community services, cultural & recreational services and personal & other services.
b.Includes wholesale trade and retail trade.
c.Includes electricity, gas & water, and communication services.

PILLAR 3 REPORTAPPENDICESGLOSSARY
DISCLOSURE
REGARDING FORWARD-
LOOKING STATEMENTS
35
31 March 2023
$m
Accommodation,
cafes
& restaurants
Agriculture,
forestry &
fishingConstruction
Finance &
insurance
Government
administration
& defenceManufacturingMiningProperty
Property
services &
business
servicesServices
a
Trade
b
Transport
& storageUtilities
c
Retail
lendingOther
Total
exposure
at default
Corporate2,4978731,2421,4475343,3115492,8053,3535,8763,8726,4434,008-30037,110
Business
Lending
5,1079,9393,12845163,6084012435,3544,4425,7631,797123-49940,861
Property
Finance
589------51,9071120---17952,697
Large Corporate1013921,15041347,2663,9294,1534,2463,1107,4293,0354,999-2140,248
Sovereign---149,37661,492----------210,868
Financial
Institutions
311836836,399-6619225120013112417-1637,687
Residential
Mortgages
-------------518,276-518,276
Australian
Credit Cards
-------------13,675-13,675
Other Retail-------------5,586-5,586
Small Business7831,9843,7621,5915881,6626153,1384,5683,6353,0071,532330-2,36429,559
Specialised
Lending
-----298317-56462-1,1631,450--3,746
Securitisation---31,841----424-566----32,831
Standardised1-105,712-2-21301117--19,6694,69030,253
New Zealand3679,83491317,3526,6583,6142239,0341,6122,7464,9821,6903,28572,081116134,507
Total9,75623,10510,273244,58269,28219,8276,05371,30319,89520,58325,77715,78414,212629,2878,1851,187,904
a.Includes education, health & community services, cultural & recreational services and personal & other services.
b.Includes wholesale trade and retail trade.
c.Includes electricity, gas & water, and communication services.

36WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT
CREDIT RISK EXPOSURE
Exposure at Default by geography
1
Total Exposure
$mAustraliaNew ZealandAmericasAsiaEuropePacificat Default
31 March 2024
Corporate41,192362232600550-42,936
Business Lending43,77738----43,815
Property Finance55,5012----55,503
Large Corporate34,9244171,3181,6041,942-40,205
Sovereign146,5473,07818,012613387-168,637
Financial Institutions29,2121505,4842693,313-38,428
Residential Mortgages540,109--80--540,189
Australian Credit Cards13,561-----13,561
Other Retail4,271-----4,271
Small Business28,001--1--28,002
Specialised Lending4,115-1---4,116
Securitisation38,009-----38,009
Standardised23,904--3-3,50427,411
New Zealand-132,888----132,888
Total1,003,123136,93525,0473,1706,1923,5041,177,971
30 September 2023
Corporate38,864254266462699-40,545
Business Lending42,327-----42,327
Property Finance54,7351----54,736
Large Corporate35,5174311,3871,5322,461-41,328
Sovereign159,8273,60710,830696417-175,377
Financial Institutions29,0421034,6111104,560-38,426
Residential Mortgages529,640--100--529,740
Australian Credit Cards13,590-----13,590
Other Retail4,848-----4,848
Small Business28,231--1--28,232
Specialised Lending3,980-1---3,981
Securitisation37,600-----37,600
Standardised25,788--4-3,60129,393
New Zealand-133,744----133,744
Total1,003,989138,14017,0952,9058,1373,6011,173,867
31 March 2023
Corporate35,422315266525582-37,110
Business Lending40,861-----40,861
Property Finance52,6952----52,697
Large Corporate34,1984361,5241,8962,194-40,248
Sovereign190,5633,85815,467671309-210,868
Financial Institutions28,8571024,8451213,762-37,687
Residential Mortgages518,156--120--518,276
Australian Credit Cards13,675-----13,675
Other Retail5,586-----5,586
Small Business29,558--1--29,559
Specialised Lending3,5065--235-3,746
Securitisation32,831-----32,831
Standardised26,710--6-3,53730,253
New Zealand-134,507----134,507
Total1,012,618139,22522,1023,3407,0823,5371,187,904
1.Geographic segmentation of exposures is based on the location of the office in which these items were booked.

PILLAR 3 REPORTAPPENDICESGLOSSARY
DISCLOSURE
REGARDING FORWARD-
LOOKING STATEMENTS
37
Exposure at Default by residual contractual maturity
Total Exposure
$mOn demand< 12 months1 to < 3 years3 to < 5 years> 5 yearsat Default
31 March 2024
Corporate2,9227,63317,4219,6175,34342,936
Business Lending2,78811,15818,8294,1876,85343,815
Property Finance18319,43523,7505,0137,12255,503
Large Corporate3,9946,33318,3759,1252,37840,205
Sovereign36694,47929,82422,42221,546168,637
Financial Institutions2,6635,28026,8002,81587038,428
Residential Mortgages23,6701,3153,092765511,347540,189
Australian Credit Cards13,559---213,561
Other Retail1721661,0849261,9234,271
Small Business4,5052,7697,1525,9317,64528,002
Specialised Lending12941,3091,4751,0374,116
Securitisation-9,9107,6763,35017,07338,009
Standardised1,0904,5105,10446716,24027,411
New Zealand5,21923,28023,2496,60074,540132,888
Total61,132186,562183,66572,693673,9191,177,971
30 September 2023
Corporate3,0876,21716,9379,2045,10040,545
Business Lending2,5279,39118,4594,4877,46342,327
Property Finance19316,25425,3495,5277,41354,736
Large Corporate4,3006,33919,2079,7031,77941,328
Sovereign434102,11838,96214,23919,624175,377
Financial Institutions2,8415,75225,8762,6901,26738,426
Residential Mortgages24,5221,2553,138768500,057529,740
Australian Credit Cards13,588---213,590
Other Retail1751771,2351,1652,0964,848
Small Business4,2702,6087,4015,9538,00028,232
Specialised Lending-3551,1219351,5703,981
Securitisation-6,63710,7372,25317,97337,600
Standardised1,3972,6766,81340518,10229,393
New Zealand5,35426,25820,1448,14773,841133,744
Total62,688186,037195,37965,476664,2871,173,867
31 March 2023
Corporate3,1894,82915,0169,2704,80637,110
Business Lending2,4738,95817,4704,8137,14740,861
Property Finance20714,53724,6777,0296,24752,697
Large Corporate4,4066,03419,2469,0291,53340,248
Sovereign469111,18359,06914,25625,891210,868
Financial Institutions3,2815,78624,3793,2381,00337,687
Residential Mortgages26,2171,6063,648784486,021518,276
Australian Credit Cards13,675----13,675
Other Retail1842061,4211,5262,2495,586
Small Business4,4902,5257,4516,1138,98029,559
Specialised Lending13388211,1551,4313,746
Securitisation-10,1327,0223,06512,61232,831
Standardised1,4672,6086,97644918,75330,253
New Zealand5,55427,19820,5038,19173,061134,507
Total65,613195,940207,69968,918649,7341,187,904

38WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT
CREDIT RISK EXPOSURE
Non-performing and past due loans by portfolio
The table below discloses non-performing and past due loans by credit asset class. ADI’s are required to disclose
non-performing exposures which are exposures in default aligned to the definition in APS220 Credit Risk Management.
Under APS220, the initial recognition of default is where either one, or both, of the following has happened:
•Westpac considers that the borrower is unlikely to pay its credit obligations to Westpac in full, and without recourse
to actions such as realising available security;
•the borrower is 90 days or more past-due on a credit obligation to Westpac.
ADI’s are also required to classify an exposure as non-performing for an additional 90 days after returning to performing.
31 March 2024
$m
Non Performing
Exposures -
Not Impaired
Non Performing
Exposures
- Impaired
Total Non
Performing
Exposures
Specific provisions
for Non Performing
Exposures
Actual Losses
for the 6
months ended
Corporate8916325216314
Business Lending9041611,0653226
Property Finance694137071533
Large Corporate-----
Sovereign-----
Financial Institutions44115517-
Residential Mortgages5,1232985,42147920
Australian Credit Cards-92923856
Other Retail-1181185950
Small Business7793701,14918326
Specialised Lending-----
Securitisation-----
Standardised3651184831252
New Zealand71915687515710
Total8,7171,50010,2171,696187
30 September 2023
$m
Non Performing
Exposures -
Not Impaired
Non Performing
Exposures
- Impaired
Total Non
Performing
Exposures
Specific provisions
for Non Performing
Exposures
Actual Losses
for the 12
months ended
Corporate271001279316
Business Lending8231901,01329639
Property Finance716367521574
Large Corporate-----
Sovereign-----
Financial Institutions51859169
Residential Mortgages4,1172384,35538232
Australian Credit Cards-84843199
Other Retail-12312359122
Small Business66732098716557
Specialised Lending-----
Securitisation-----
Standardised345124469975
New Zealand6617974012027
Total7,4071,3028,7091,416410

PILLAR 3 REPORTAPPENDICESGLOSSARY
DISCLOSURE
REGARDING FORWARD-
LOOKING STATEMENTS
39
31 March 2023
$m
Non Performing
Exposures -
Not Impaired
Non Performing
Exposures
- Impaired
Total Non
Performing
Exposures
Specific provisions
for Non Performing
Exposures
Actual Losses
for the 6
months ended
Corporate78164242147(26)
Business Lending8901641,05423516
Property Finance719237421342
Large Corporate-----
Sovereign-----
Financial Institutions501565185
Residential Mortgages3,3972323,62933011
Australian Credit Cards-1001003744
Other Retail-1601608053
Small Business6924291,12119631
Specialised Lending-----
Securitisation-----
Standardised30913744698-
New Zealand574976711187
Total6,7091,5218,2301,393143
Non-performing and past due loans by industry classification
31 March 2024
$m
Non Performing
Exposures -
Not Impaired
Non Performing
Exposures
- Impaired
Total Non
Performing
Exposures
Specific provisions
for Non Performing
Exposures
Actual Losses
for the 6
months ended
Accommodation, cafes & restaurants21238250742
Agriculture, forestry & fishing3896245181(16)
Construction17180251608
Finance & insurance87221092220
Government administration & defence-----
Manufacturing1781443221305
Mining1192051
Property863579201895
Property services & business services223107330817
Services
a
17395268792
Trade
b
27520447918717
Transport & storage10426130251
Utilities
c
951431
Retail lending5,9996266,625733135
Other23254827(1)
Total8,7171,50010,2171,696187
a.Includes education, health & community services, cultural & recreational services and personal & other services.
b.Includes wholesale trade and retail trade.
c.Includes electricity, gas & water, and communication services.

40WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT
CREDIT RISK EXPOSURE
30 September 2023
$m
Non Performing
Exposures -
Not Impaired
Non Performing
Exposures
- Impaired
Total Non
Performing
Exposures
Specific provisions
for Non Performing
Exposures
Actual Losses
for the 12
months ended
Accommodation, cafes & restaurants148401884810
Agriculture, forestry & fishing3474339073(30)
Construction19475269639
Finance & insurance76281042810
Government administration & defence-----
Manufacturing18310428710951
Mining1171831
Property8646693018413
Property services & business services2121023148721
Services
a
152822346611
Trade
b
2221253479129
Transport & storage562278154
Utilities
c
74112-
Retail lending4,8985405,438604275
Other3764101436
Total7,4071,3028,7091,416410
a.Includes education, health & community services, cultural & recreational services and personal & other services.
b.Includes wholesale trade and retail trade.
c.Includes electricity, gas & water, and communication services.
31 March 2023
$m
Non Performing
Exposures -
Not Impaired
Non Performing
Exposures
- Impaired
Total Non
Performing
Exposures
Specific provisions
for Non Performing
Exposures
Actual Losses
for the 6
months ended
Accommodation, cafes & restaurants20861269637
Agriculture, forestry & fishing2635932251(34)
Construction18596281636
Finance & insurance9439133335
Government administration & defence-----
Manufacturing1721122841091
Mining128204-
Property892619531587
Property services & business services2261253519314
Services
a
17492266728
Trade
b
2951704651139
Transport & storage633396181
Utilities
c
85132-
Retail lending4,0595834,642570116
Other5877135443
Total6,7091,5218,2301,393143
a.Includes education, health & community services, cultural & recreational services and personal & other services.
b.Includes wholesale trade and retail trade.
c.Includes electricity, gas & water, and communication services.

PILLAR 3 REPORTAPPENDICESGLOSSARY
DISCLOSURE
REGARDING FORWARD-
LOOKING STATEMENTS
41
Non-performing and past due loans by geography
1
31 March 2024
$m
Non Performing
Exposures -
Not Impaired
Non Performing
Exposures
- Impaired
Total Non
Performing
Exposures
Specific provisions
for Non Performing
Exposures
Actual Losses
for the 6
months ended
Australia7,9641,2719,2351,473144
New Zealand71915687515710
Americas-----
Asia-33-31
Europe-----
Pacific3470104662
Total8,7171,50010,2171,696187
30 September 2023
$m
Non Performing
Exposures -
Not Impaired
Non Performing
Exposures
- Impaired
Total Non
Performing
Exposures
Specific provisions
for Non Performing
Exposures
Actual Losses
for the 12
months ended
Australia6,7051,1117,8161,221379
New Zealand6617974012027
Americas-----
Asia-343432-
Europe-----
Pacific4178119434
Total7,4071,3028,7091,416410
31 March 2023
$m
Non Performing
Exposures -
Not Impaired
Non Performing
Exposures
- Impaired
Total Non
Performing
Exposures
Specific provisions
for Non Performing
Exposures
Actual Losses
for the 6
months ended
Australia6,0781,2957,3731,205136
New Zealand574986721187
Americas-----
Asia-333320-
Europe-----
Pacific579515250-
Total6,7091,5218,2301,393143
1.Geographic segmentation of exposures is based on the location of the office in which these items were booked.

42WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT
CREDIT RISK EXPOSURE
Portfolios subject to IRB approaches (AIRB)
In the tables below Westpac’s transaction-managed exposures are classified by reference to the external credit rating.
Each external credit rating aligns to one or more internally assigned credit risk grades, as outlined in the ‘Credit Risk
Management’ section of this report. Westpac’s internal rating scale has more risk grades than the external rating
scale, and as a result, average PD can vary from portfolio to portfolio for the same external grade. Westpac’s program-
managed exposures are classified by PD band and the average PD within a band can, likewise, vary from portfolio
to portfolio.
For both non-defaulted and defaulted exposures, regulatory expected loss is determined at the facility level. For non-
defaulted exposures, regulatory expected loss is the product of PD, LGD and EAD while for defaulted exposures, the best
estimates of loss is applied. Total regulatory expected loss as shown in the table below is the sum of both non-defaulted
and defaulted regulatory expected loss and given the difference in methodology, regulatory expected loss reported is
not equal to the product of the corresponding reported average PD, average LGD and aggregate EAD.
Corporate portfolio by external credit rating
RiskAverage
CommittedExposureProbabilityLoss GivenRegulatoryWeightedRisk
$mOutstandings
a
Undrawn
b
at Defaultof DefaultDefaultExpected LossAssetsWeight
31 March 2024
AAA--------
AA1,1741,0161,6750.05%50%-29017%
A4,3932,7225,6110.07%42%21,31623%
BBB13,2717,67617,0190.27%37%177,44744%
BB12,7797,31417,1521.18%37%7314,00182%
B1351242074.78%42%4304147%
Other47349278118.13%40%551,593204%
Subtotal32,22519,34442,4450.95%38%15124,95159%
Default24139491100.00%54%39631865%
Total32,46619,38342,9362.09%38%54725,26959%
30 September 2023
AAA1081031500.05%50%-2315%
AA1,4951,2752,1590.05%50%140619%
A4,4162,6725,5700.07%41%21,31524%
BBB11,6527,09515,4010.27%38%167,17947%
BB12,0056,44115,8521.22%38%7113,59686%
B194942484.78%45%5394159%
Other47954280517.58%44%561,713213%
Subtotal30,34918,22240,1850.98%39%15124,62661%
Default12730360100.00%49%32619253%
Total30,47618,25240,5451.86%39%47724,81861%
31 March 2023
AAA100104142-50%-2014%
AA1,4301,2562,1200.05%47%-38418%
A3,2502,2364,2430.07%44%11,14727%
BBB11,0136,55914,3080.34%41%177,25951%
BB11,9996,03615,0171.19%39%7013,40489%
B113691494.70%47%3233156%
Other33440556019.11%45%451,233220%
Subtotal28,23916,66536,5390.94%41%13623,68065%
Default241115571100.00%48%452629110%
Total28,48016,78037,1102.47%41%58824,30966%
a.Outstandings are balances that were drawn down as at the reporting date and include certain off-balance sheet items.
b.Committed undrawn balances are committed exposures that were not drawn down as at the reporting date.

PILLAR 3 REPORTAPPENDICESGLOSSARY
DISCLOSURE
REGARDING FORWARD-
LOOKING STATEMENTS
43
Business Lending portfolio by external credit ratings
RiskAverage
CommittedExposureProbabilityLoss GivenRegulatoryWeightedRisk
$mOutstandings
a
Undrawn
b
at Defaultof DefaultDefaultExpected LossAssetsWeight
31 March 2024
AAA1311011710.05%50%-3219%
AA1214264000.05%50%-5514%
A224160.07%37%-210%
BBB3,9082,7535,2130.35%28%51,56930%
BB30,2709,01034,6611.34%28%12818,34653%
B7891028484.79%29%1267780%
Other1,3292441,46421.86%30%952,248154%
Subtotal36,55012,66042,7731.97%28%24022,92954%
Default1,0071151,042100.00%26%31449748%
Total37,55712,77543,8154.30%28%55423,42653%
30 September 2023
AAA--------
AA--------
A-2080.08%27%-111%
BBB3,6742,7054,9510.45%29%71,68434%
BB29,7649,31534,2801.36%28%13018,89555%
B7141147784.81%29%1163582%
Other1,2332141,35623.19%30%962,082153%
Subtotal35,38512,36841,3732.03%28%24423,29756%
Default953107954100.00%27%28556359%
Total36,33812,47542,3274.24%28%52923,86056%
31 March 2023
AAA--------
AA--------
A-2210-30%-220%
BBB3,2082,4074,2270.54%30%81,60438%
BB29,3609,74333,7991.50%30%16020,93562%
B6521177034.84%31%1160586%
Other1,0452201,14322.92%32%841,791157%
Subtotal34,26512,50939,8822.07%31%26324,93763%
Default976137979100.00%27%227991101%
Total35,24112,64640,8614.42%30%49025,92863%
a.Outstandings are balances that were drawn down as at the reporting date and include certain off-balance sheet items.
b.Committed undrawn balances are committed exposures that were not drawn down as at the reporting date.

44WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT
CREDIT RISK EXPOSURE
Property Finance portfolio by external credit ratings
1
Property finance (income-producing real estate under APS113) represents exposures where repayments depend primarily
on the cash flows generated by the asset or other real estate assets owned by the borrower.
RiskAverage
CommittedExposureProbabilityLoss GivenRegulatoryWeightedRisk
$mOutstandings
a
Undrawn
b
at Defaultof DefaultDefaultExpected LossAssetsWeight
31 March 2024
AAA--------
AA--------
A1,4976481,7590.09%35%157132%
BBB11,9481,94212,8700.25%18%53,97231%
BB34,2726,03638,1271.24%21%10222,80360%
B1,018491,0434.79%22%111,02398%
Other9109398222.56%23%541,798183%
Subtotal49,6458,76854,7811.42%21%17330,16755%
Default70758722100.00%19%15521930%
Total50,3528,82655,5032.70%21%32830,38655%
30 September 2023
AAA--------
AA--------
A1,4555911,6950.09%43%174144%
BBB11,5382,67613,0640.24%17%53,64228%
BB33,7415,63637,4891.27%22%10523,53363%
B864408854.78%22%1085296%
Other8166985820.84%23%411,475172%
Subtotal48,4149,01253,9911.36%21%16230,24356%
Default74549745100.00%19%15817323%
Total49,1599,06154,7362.70%21%32030,41656%
31 March 2023
AAA--------
AA--------
A1,4707081,7540.11%43%177144%
BBB11,2482,54812,5290.24%18%53,97532%
BB33,2575,49736,7331.31%23%11524,70467%
B392274064.68%24%5410101%
Other4896253120.15%26%28989186%
Subtotal46,8568,84251,9531.23%23%15430,84959%
Default74445744100.00%21%13438552%
Total47,6008,88752,6972.63%23%28831,23459%
a.Outstandings are balances that were drawn down as at the reporting date and include certain off-balance sheet items.
b.Committed undrawn balances are committed exposures that were not drawn down as at the reporting date.
1.Property Finance is a separate asset class and subject to the AIRB approach to calculate RWAs. Property Finance was previously categorised
as specialised lending and subject to supervisory risk weights in the IRB approach.

PILLAR 3 REPORTAPPENDICESGLOSSARY
DISCLOSURE
REGARDING FORWARD-
LOOKING STATEMENTS
45
Residential Mortgages portfolio by PD band
1
RiskAverage
CommittedExposureProbabilityLoss GivenRegulatoryWeightedRisk
$mOutstandings
a
Undrawn
b
at Defaultof DefaultDefaultExpected LossAssetsWeight
31 March 2024
0.0 to 0.1077,67342,278118,6260.06%13%96,6976%
0.10 to 0.25107,68914,715121,1450.16%14%279,8848%
0.25 to 1.0223,9029,378232,5840.45%15%16342,99518%
1.0 to 2.530,11369430,7151.20%16%6011,66638%
2.5 to 10.022,8471,16523,4467.81%15%28124,795106%
10.0 to 99.998,212218,23423.64%16%31111,280137%
Subtotal470,43668,251534,7501.02%15%851107,31720%
Default5,439285,439100.00%20%4768,601158%
Total475,87568,279540,1892.02%15%1,327115,91821%
30 September 2023
0.0 to 0.1072,23341,325112,3500.06%13%86,3686%
0.10 to 0.25106,67114,695120,1520.16%14%2710,0678%
0.25 to 1.0221,71211,338232,3520.45%16%16343,35719%
1.0 to 2.529,63667230,2141.20%16%5911,51038%
2.5 to 10.022,4721,14923,0557.78%15%28024,663107%
10.0 to 99.997,220247,24521.54%16%2519,963138%
Subtotal459,94469,203525,3680.95%15%788105,92820%
Default4,372284,372100.00%20%3787,020161%
Total464,31669,231529,7401.77%15%1,166112,94821%
31 March 2023
0.0 to 0.1068,12142,265109,3240.05%13%86,1996%
0.10 to 0.25108,34115,201122,3390.16%14%2810,3278%
0.25 to 1.0214,99811,043225,5450.44%16%15942,08019%
1.0 to 2.527,82466928,4271.21%17%5710,91938%
2.5 to 10.021,9261,32722,6327.73%16%27324,250107%
10.0 to 99.996,332266,36219.82%16%2068,813139%
Subtotal447,54270,531514,6290.90%15%731102,58820%
Default3,629283,647100.00%20%3266,576180%
Total451,17170,559518,2761.59%15%1,057109,16421%
a.Outstandings are balances that were drawn down as at the reporting date and include certain off-balance sheet items.
b.Committed undrawn balances are committed exposures that were not drawn down as at the reporting date.
1.As at 31 March 2024 Residential Mortgages risk weighted assets under the IRB approach totalled $132,704 million. The standardised approach
equivalent was $211,967 million.

46WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT
CREDIT RISK EXPOSURE
Australian Credit Cards portfolio by PD band
RiskAverage
CommittedExposureProbabilityLoss GivenRegulatoryWeightedRisk
$mOutstandings
a
Undrawn
b
at Defaultof DefaultDefaultExpected LossAssetsWeight
31 March 2024
0.0 to 0.101,2415,7744,2000.08%81%31774%
0.10 to 0.251,5264,5274,0140.17%84%63429%
0.25 to 1.01,4222,1072,6140.55%85%1258122%
1.0 to 2.58925721,2381.64%85%1764052%
2.5 to 10.07714029883.60%84%3087889%
10.0 to 99.9936016143517.28%81%60953219%
Subtotal6,21213,54313,4891.15%83%1283,57126%
Default722172100.00%75%38218305%
Total6,28413,56413,5611.67%83%1663,78928%
30 September 2023
0.0 to 0.101,2455,9134,2670.08%81%31824%
0.10 to 0.251,5124,6034,0470.17%84%63459%
0.25 to 1.01,4002,1552,6210.55%85%1258222%
1.0 to 2.58715811,2231.64%85%1763252%
2.5 to 10.07374059543.58%84%2984488%
10.0 to 99.9934216041517.36%80%57901217%
Subtotal6,10713,81713,5271.11%83%1243,48626%
Default632163100.00%75%31226358%
Total6,17013,83813,5901.57%83%1553,71227%
31 March 2023
0.0 to 0.101,2316,1064,3450.07%80%31854%
0.10 to 0.251,4504,6103,9810.18%84%63388%
0.25 to 1.01,3752,1302,5810.54%85%1257522%
1.0 to 2.59015931,2601.67%85%1865252%
2.5 to 10.07544399843.56%84%2987189%
10.0 to 99.9936518845117.29%81%63983218%
Subtotal6,07614,06613,6021.16%83%1313,60426%
Default732873100.00%74%41353484%
Total6,14914,09413,6751.69%83%1723,95729%
a.Outstandings are balances that were drawn down as at the reporting date and include certain off-balance sheet items.
b.Committed undrawn balances are committed exposures that were not drawn down as at the reporting date.

PILLAR 3 REPORTAPPENDICESGLOSSARY
DISCLOSURE
REGARDING FORWARD-
LOOKING STATEMENTS
47
Small Business portfolio by PD band
RegulatoryRiskAverage
CommittedExposureProbabilityLoss GivenExpectedWeightedRisk
$mOutstandings
a
Undrawn
b
at Defaultof DefaultDefaultLossAssetsWeight
31 March 2024
0.0 to 0.10--------
0.10 to 0.25--------
0.25 to 1.01,3572,5783,9710.58%38%91,30633%
1.0 to 2.513,2313,83917,0821.48%35%898,13348%
2.5 to 10.03,8115044,3174.77%35%722,97169%
10.0 to 99.991,4732281,70427.51%35%1711,858109%
Subtotal19,8727,14927,0743.51%35%34114,26853%
Default896105928100.00%41%1693,110335%
Total20,7687,25428,0026.71%36%51017,37862%
30 September 2023
0.0 to 0.10--------
0.10 to 0.25--------
0.25 to 1.01,3392,4553,8220.58%37%81,23532%
1.0 to 2.513,6843,80217,4821.48%35%928,33448%
2.5 to 10.03,8615084,3694.86%35%733,01869%
10.0 to 99.991,4652401,70728.16%35%1731,850108%
Subtotal20,3497,00527,3803.56%35%34614,43753%
Default85194852100.00%39%1632,603306%
Total21,2007,09928,2326.47%35%50917,04060%
31 March 2023
0.0 to 0.10--------
0.10 to 0.25--------
0.25 to 1.01,1452,2923,4740.60%37%81,14433%
1.0 to 2.514,4084,02218,6511.47%35%988,93848%
2.5 to 10.04,0545474,6724.88%36%813,05565%
10.0 to 99.991,5382091,76728.92%36%1871,923109%
Subtotal21,1457,07028,5643.62%36%37415,06053%
Default988103995100.00%39%2023,159317%
Total22,1337,17329,5596.87%36%57618,21962%
a.Outstandings are balances that were drawn down as at the reporting date and include certain off-balance sheet items.
b.Committed undrawn balances are committed exposures that were not drawn down as at the reporting date.

48WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT
CREDIT RISK EXPOSURE
Other Retail portfolio by PD band
RiskAverage
CommittedExposureProbabilityLoss GivenRegulatoryWeightedRisk
$mOutstandings
a
Undrawn
b
at Defaultof DefaultDefaultExpected LossAssetsWeight
31 March 2024
0.0 to 0.101320.07%78%--16%
0.10 to 0.25571201740.22%72%-5934%
0.25 to 1.01,0453971,4430.61%63%578154%
1.0 to 2.58992731,1711.57%76%141,16099%
2.5 to 10.0977561,0434.89%78%401,315126%
10.0 to 99.993051232329.98%73%73596185%
Subtotal3,2848614,1564.22%72%1323,91194%
Default1153115100.00%73%59348302%
Total3,3998644,2716.81%72%1914,259100%
30 September 2023
0.0 to 0.101420.07%79%--17%
0.10 to 0.25671351990.22%71%-6734%
0.25 to 1.01,3564541,8110.62%62%796753%
1.0 to 2.59873031,2911.57%76%151,26398%
2.5 to 10.01,019581,0874.79%77%411,347124%
10.0 to 99.993211233928.73%71%70598176%
Subtotal3,7519664,7293.84%70%1334,24290%
Default1204119100.00%72%60365305%
Total3,8719704,8486.21%70%1934,60795%
31 March 2023
0.0 to 0.10132-100%---
0.10 to 0.2580141218-70%-7233%
0.25 to 1.01,7244662,1900.64%61%81,15453%
1.0 to 2.51,1213141,4361.53%74%171,37596%
2.5 to 10.01,098621,1694.79%76%431,427122%
10.0 to 99.993892041628.37%69%83715172%
Subtotal4,4131,0065,4313.87%68%1514,74387%
Default1555155100.00%72%83561362%
Total4,5681,0115,5866.53%69%2345,30495%
a.Outstandings are balances that were drawn down as at the reporting date and include certain off-balance sheet items.
b.Committed undrawn balances are committed exposures that were not drawn down as at the reporting date.

PILLAR 3 REPORTAPPENDICESGLOSSARY
DISCLOSURE
REGARDING FORWARD-
LOOKING STATEMENTS
49
Portfolios subject to supervisory risk-weights in the IRB approach
Exposures subject to supervisory risk-weights in the IRB approach include assets categorised as specialised lending,
where a regulatory capital ‘slotting’ approach applies. Specialised lending relates to Project Finance and Object Finance.
The ‘Credit Risk Management’ section of this report describes the alignment of Westpac risk grades to both external
rating equivalents and regulatory capital ‘slots’.
Exposure atRegulatoryRisk Weighted
$mRisk WeightDefaultExpected LossAssets
31 March 2024
Strong70%2,976122,083
Good90%8887799
Satisfactory115%1755202
Weak250%776192
DefaultN/A---
Total4,116303,276
30 September 2023
Strong70%2,909112,036
Good90%8177736
Satisfactory115%2557293
Weak250%---
DefaultN/A---
Total3,981253,065
31 March 2023
Strong70%2,596101,817
Good90%8377753
Satisfactory115%3129359
Weak250%1-2
DefaultN/A---
Total3,746262,931

50WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT
CREDIT RISK EXPOSURE
Portfolios subject to FIRB
This table sets out portfolios subject to FIRB. Under FIRB, an ADI must provide its own estimates of PD and maturity
and rely on supervisory estimates of LGD and EAD. This includes all Sovereign, Financial Institutions and Large
Corporate exposures.
Sovereign exposures by external credit rating
RiskAverage
CommittedExposureProbabilityLoss GivenRegulatoryWeightedRisk
$mOutstandings
a
Undrawn
b
at Defaultof DefaultDefaultExpected LossAssetsWeight
31 March 2024
AAA90,233890,2370.01%6%-5321%
AA77,41528477,5540.02%5%11,1792%
A5911346510.05%32%-8613%
BBB12721270.22%48%-5543%
BB305340.48%51%-1338%
B2031324.78%51%152163%
Other-3223.74%20%-2100%
Subtotal168,416467168,6370.02%6%21,9191%
Default--------
Total168,416467168,6370.02%6%21,9191%
30 September 2023
AAA110,9266110,9280.01%7%17821%
AA63,14621363,3280.02%5%11,0382%
A7781458440.04%47%-15819%
BBB222612460.19%50%-11647%
BB4371.51%54%-8114%
B446224.78%51%136164%
Other-3223.74%39%-5250%
Subtotal175,080477175,3770.01%7%32,1431%
Default--------
Total175,080477175,3770.01%7%32,1431%
31 March 2023
AAA142,15242142,1690.01%5%17801%
AA67,98620768,1720.02%5%11,4092%
A38894430-43%-10224%
BBB84184-51%-4756%
BB8411-55%-13118%
B------1-
Other-32-50%-5250%
Subtotal210,618351210,8680.01%5%22,3571%
Default--------
Total210,618351210,8680.01%5%22,3571%
a.Outstandings are balances that were drawn down as at the reporting date and include certain off-balance sheet items.
b.Committed undrawn balances are committed exposures that were not drawn down as at the reporting date.

PILLAR 3 REPORTAPPENDICESGLOSSARY
DISCLOSURE
REGARDING FORWARD-
LOOKING STATEMENTS
51
Financial Institution exposures by external credit rating
RiskAverage
CommittedExposureProbabilityLoss GivenRegulatoryWeightedRisk
$mOutstandings
a
Undrawn
b
at Defaultof DefaultDefaultExpected LossAssetsWeight
31 March 2024
AAA2,383382,3980.05%50%159725%
AA8,6974488,9360.05%50%22,29126%
A16,5735,43919,4520.06%51%65,02826%
BBB3,1784,0715,3180.19%52%53,03457%
BB1,8146352,1761.15%38%81,96290%
B124144.50%38%-19136%
Other53115826.67%40%6157271%
Subtotal32,71010,64638,3520.18%50%2813,08834%
Default76176100.00%42%32--
Total32,78610,64738,4280.37%50%6013,08834%
30 September 2023
AAA2,428-2,4280.05%50%171629%
AA10,14144210,3830.05%50%32,52924%
A16,5603,55918,4860.06%50%64,64825%
BBB2,4613,4664,4160.20%51%42,59859%
BB2,1286732,5211.08%44%102,752109%
B2318384.73%39%166174%
Other53286822.46%37%5148218%
Subtotal33,7948,18638,3400.18%50%3013,45735%
Default86386100.00%42%36--
Total33,8808,18938,4260.41%50%6613,45735%
31 March 2023
AAA3,029-3,0290.07%50%11,48649%
AA8,8684829,1270.05%50%23,27936%
A16,5964,04518,7400.06%51%65,01927%
BBB2,8002,5444,1250.19%52%42,52361%
BB2,1136422,4841.13%47%122,553103%
B2715414.88%46%169168%
Other5355623.21%38%5128229%
Subtotal33,4867,73337,6020.18%50%3115,05740%
Default85385100.00%47%40--
Total33,5717,73637,6870.41%50%7115,05740%
a.Outstandings are balances that were drawn down as at the reporting date and include certain off-balance sheet items.
b.Committed undrawn balances are committed exposures that were not drawn down as at the reporting date.

52WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT
CREDIT RISK EXPOSURE
Large Corporate exposures by external credit rating
RiskAverage
CommittedExposureProbabilityLoss GivenRegulatoryWeightedRisk
$mOutstandings
a
Undrawn
b
at Defaultof DefaultDefaultExpected LossAssetsWeight
31 March 2024
AAA---0.05%----
AA3511,0757830.05%38%-15119%
A8,5518,56312,4280.07%50%43,61929%
BBB13,91219,16322,5640.21%49%2311,69852%
BB2,6952,2603,8230.98%46%173,70197%
B1663653.69%43%183128%
Other5896154014.60%49%401,306242%
Subtotal25,58332,08540,2030.44%49%8520,55851%
Default2-2100.00%24%---
Total25,58532,08540,2050.44%49%8520,55851%
30 September 2023
AAA---0.05%----
AA1,2862921,4050.05%33%-24417%
A9,2707,39212,7670.07%50%53,78530%
BBB14,20117,96622,4600.21%50%2511,49951%
BB2,6203,0774,2360.94%46%193,89292%
B3125524.78%53%191175%
Other23332940716.76%50%341,059260%
Subtotal27,64129,08141,3270.41%49%8420,57050%
Default1-1100.00%28%---
Total27,64229,08141,3280.41%49%8420,57050%
31 March 2023
AAA--------
AA174261281-50%-6623%
A8,0569,17712,3280.07%55%53,94732%
BBB14,09618,31622,6830.22%52%2612,15254%
BB2,9603,7404,8381.01%48%244,78699%
B3726545.56%59%2107198%
Other19886417.19%52%6170266%
Subtotal25,34231,60840,2480.31%52%6321,22853%
Default--------
Total25,34231,60840,2480.31%52%6321,22853%
a.Outstandings are balances that were drawn down as at the reporting date and include certain off-balance sheet items.
b.Committed undrawn balances are committed exposures that were not drawn down as at the reporting date.

PILLAR 3 REPORTAPPENDICESGLOSSARY
DISCLOSURE
REGARDING FORWARD-
LOOKING STATEMENTS
53
Portfolios subject to the standardised approach
The table below presents exposures subject to the standardised approach for the calculation of RWA. This includes
certain mortgages that are prescribed a standardised risk weight including interest-only mortgages greater than five
years and mortgages held by self-managed super funds. Other exposures subject to the standardised approach include
Westpac Pacific, Asian retail exposures, margin lending and some other small portfolios. Credit valuation adjustment and
qualifying central clearing counterparties exposure is also included in the standardised approach.
Total ExposureRisk Weighted
Risk Weight %at Default $mAssets $m
31 March 2024
0%--
2%4,89998
4%--
20%1,768354
35%--
50%372186
65%205133
75%158118
85%274233
90%432389
100%18,63818,637
120%1215
150%428642
1250%--
Default fund contributions
a
225116
Credit valuation adjustment-5,747
Total27,41126,668
30 September 2023
0%--
2%2,98360
4%1,73970
20%1,811362
35%--
50%393196
65%210137
75%155116
85%269229
90%437393
100%20,82820,828
120%1113
150%388584
1250%--
Default fund contributions
a
16973
Credit valuation adjustment-5,752
Total29,39328,813
a.Portfolios subject to the standardised approach include exposures to qualifying central clearing counterparties used to clear derivative
transactions. Derivative counterparty exposure and initial margin are risk weighted at 2%. Default fund contributions to qualifying central
clearing counterparties are shown separately and are subject to higher risk weights.

54WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT
CREDIT RISK EXPOSURE
31 March 2023Total ExposureRisk Weighted
Risk Weight %at Default $mAssets $m
0%--
2%2,55951
4%--
20%4,571914
35%--
50%414207
65%208135
75%201151
85%201171
90%412371
100%20,73620,736
120%1518
150%6811,021
1250%--
Default fund contributions
a
255150
Credit valuation adjustment-5,214
Total30,25329,139
a.Portfolios subject to the standardised approach include exposures to qualifying central clearing counterparties used to clear derivative
transactions. Derivative counterparty exposure and initial margin are risk weighted at 2%. Default fund contributions to qualifying central
clearing counterparties are shown separately and are subject to higher risk weights.
New Zealand portfolio
This table presents a summary of New Zealand asset classes. When an overseas banking subsidiary is regulated
by the RBNZ, RWA and Expected Losses (EL) are calculated using the RBNZ rules
1
. The table below summarises
Westpac’s New Zealand regulated RWA credit exposures (including securitisations) using RBNZ asset classes used to
determine RWA.
Total
Total RiskRegulatory
ExposureWeightedExpected
$mat DefaultAssetsLoss
31 March 2024
Residential Mortgages70,17217,828196
Other Retail2,5241,20141
Small Business1,89565911
Corporate/Business Lending40,09624,496335
Standardised18,2012,306-
Total132,88846,490583
30 September 2023
Residential Mortgages69,75117,353176
Other Retail2,5721,22341
Small Business1,97768811
Corporate/Business Lending41,13025,085323
Standardised18,3142,299-
Total133,74446,648551
31 March 2023
Residential Mortgages69,44016,804166
Other Retail2,6421,28749
Small Business2,05371112
Corporate/Business Lending40,83524,499307
Standardised19,5372,030-
Total134,50745,331534
1.The scaling factor and floor applied to New Zealand exposures is calculated using APRA requirements rather than the RBNZ requirements.

PILLAR 3 REPORTAPPENDICESGLOSSARY
DISCLOSURE
REGARDING FORWARD-
LOOKING STATEMENTS
55
Credit Quality
Actual losses
31 March 2024
$mWrite-offs direct
Legal and
recovery costs
Write-offs
from provisions
a
Recoveries
Actual Losses
for the 6
months ended
Corporate--33(19)14
Business Lending6-2(2)6
Property Finance4--(1)3
Large Corporate-----
Sovereign-----
Financial Institutions-----
Residential Mortgages5316(4)20
Australian Credit Cards81--(25)56
Other Retail841-(35)50
Small Business15-13(2)26
Specialised Lending-----
Securitisation-----
Standardised--2-2
New Zealand12--(2)10
Total207466(90)187
a.Write-offs from individually assessed provisions.
30 September 2023
$mWrite-offs direct
Legal and
recovery costs
Write-offs
from provisions
a
Recoveries
Actual Losses
for the 12
months ended
Corporate4-53(41)16
Business Lending13-29(3)39
Property Finance6--(2)4
Large Corporate-----
Sovereign-----
Financial Institutions1-8-9
Residential Mortgages6533(12)32
Australian Credit Cards160--(61)99
Other Retail1774-(59)122
Small Business40-24(7)57
Specialised Lending-----
Securitisation-----
Standardised2-3-5
New Zealand22-11(6)27
Total4319161(191)410
a.Write-offs from individually assessed provisions.

56WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT
CREDIT RISK EXPOSURE
31 March 2023
$mWrite-offs direct
Legal and
recovery costs
Write-offs
from provisions
a
Recoveries
Actual Losses
for the 6
months ended
b
Corporate2-12(40)(26)
Business Lending7-11(2)16
Property Finance3--(1)2
Large Corporate-----
Sovereign-----
Financial Institutions--5-5
Residential Mortgages2213(6)11
Australian Credit Cards82--(38)44
Other Retail832-(32)53
Small Business25-11(5)31
Specialised Lending-----
Securitisation-----
Standardised-----
New Zealand10-1(4)7
Total214453(128)143
a.Write-offs from individually assessed provisions.
b.Loan losses included the recovery of a previously written off loan of $40 million within the Corporate asset class.
Regulatory loss estimates and actual losses
The table below compares regulatory credit risk estimates used in the calculation of risk weighted assets to the average
of actual outcomes observed since the establishment of Advanced IRB accreditation for each portfolio.
Predicted parameters represent average internally predicted long-run probabilities of default for non-defaulted obligors
at the start of each year, as well as downturn estimates of loss (or the regulatory minimum where required). They
are averaged using data from the financial years beginning at the time of Advanced IRB accreditation (2008 for most
portfolios) and compared to observed outcomes over the same period.
Predicted parameters are reviewed annually utilising observed outcomes from prior periods as a key input.
Historical information from the period of previous capital framework (Basel II) has been mapped to the most comparable
Basel III asset classes.
Default rates
At the start of each year, a predicted default probability is assigned to all non-defaulted obligors. This is averaged over
the portfolio for the period since IRB accreditation and reported as the predicted default rate. The actual default rate
reflects the fraction of obligors who start the year not in default but default during the one-year period. The observed
annual default rates are averaged over the period since IRB accreditation.
Loss Given Default (LGD)
LGD estimates are based on an economic loss calculation and include workout costs and discounting of future cash
flows to the date of default. LGD analysis excludes recent defaults in order to allow sufficient time for the full workout
of the facility and hence an accurate LGD to be determined. The workout period varies by portfolio: a two-year workout
period is assumed for transaction-managed and residential mortgage lending; and a one year period for other program-
managed portfolios.

PILLAR 3 REPORTAPPENDICESGLOSSARY
DISCLOSURE
REGARDING FORWARD-
LOOKING STATEMENTS
57
Exposure at Default (EAD)
The EAD variance compares the observed EAD to the predicted EAD up to one year prior to default. For transaction-
managed portfolios, predicted EAD is currently mandated to be 100% of committed exposures. The observed EAD is
averaged for all obligors that defaulted over the observation period.
RegulatoryObserved EAD
ExpectedDefault rateLoss Given Defaultvariance to
$mLoss
a
PredictedObservedPredictedObservedPredicted
b
31 March 2024
Corporate5472.25%0.91%41%21%(22%)
Business Lending5542.26%1.65%33%12%(13%)
Property Finance
c
328N/AN/AN/AN/AN/A
Large Corporate
c
85N/AN/AN/AN/AN/A
Sovereign20.26%----
Financial Institutions
c
600.43%0.10%---
Residential Mortgages1,3270.77%0.60%20%1%-
Australian Credit Cards1661.56%1.45%75%58%(3%)
Other Retail1914.60%3.45%69%40%(7%)
Small Business5103.91%2.91%37%6%(12%)
Specialised Lending
d
30N/A2.25%N/A11%(12%)
Securitisation
d
-N/AN/AN/AN/AN/A
New Zealand
e
583N/AN/AN/AN/AN/A
Standardised
d
-N/AN/AN/AN/AN/A
Total4,383
30 September 2023
Corporate4772.27%0.90%42%23%(22%)
Business Lending5292.26%1.65%35%14%(13%)
Property Finance
c
320N/AN/AN/AN/AN/A
Large Corporate
c
84N/AN/AN/AN/AN/A
Sovereign30.25%----
Financial Institutions
c
660.43%0.10%---
Residential Mortgages1,1660.77%0.60%20%1%(1%)
Australian Credit Cards1551.58%1.47%75%57%(2%)
Other Retail1934.62%3.46%69%40%(7%)
Small Business5093.93%2.93%37%6%(10%)
Specialised lending
d
25N/A2.22%N/A14%(11%)
Securitisation
d
-N/AN/AN/AN/AN/A
New Zealand
e
551N/AN/AN/AN/AN/A
Standardised
d
-N/AN/AN/AN/AN/A
Total4,078
a.Includes regulatory expected losses for defaulted and non-defaulted exposures.
b.A negative outcome indicates observed EAD was lower than predicted EAD, which can happen because exposures were managed down prior
to default or off-balance sheet items or undrawn limits were not fully drawn prior to default.
c.These are new asset classes under the capital framework. ‘Financial Institutions’ includes exposures subject to ‘Bank’ under the previous
framework. Performance information of exposures reported under Large Corporate and Property Finance requires sufficient passage of time to
be observed and thus is currently shown as N/A.
d.Predicted parameters are not available for specialised lending, securitisation or standardised exposures as risk weights for these portfolios do
not rely on credit estimates and are shown as N/A in the tables above.
e.Historical Default Rate, Loss Given Default and Observed-to-Predicted EAD are included in the asset classes above, consistent with the
historical classification of New Zealand exposures.

58WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT
CREDIT RISK EXPOSURE
31 March 2023RegulatoryObserved EAD
ExpectedDefault rateLoss Given Defaultvariance to
$mLoss
a
PredictedObservedPredictedObservedPredicted
b
Corporate5882.27%0.91%45%24%(22%)
Business Lending4902.26%1.67%34%15%(13%)
Property Finance
c
288N/AN/AN/AN/AN/A
Large Corporate
c
63N/AN/AN/AN/AN/A
Sovereign20.25%----
Financial Institutions
c
710.43%0.10%---
Residential Mortgages1,0570.76%0.61%20%1%(1%)
Australian Credit Cards1721.61%1.49%75%57%(2%)
Other Retail2344.65%3.48%69%40%(7%)
Small Business5763.93%2.92%37%6%(10%)
Specialised Lending
d
26N/A2.26%N/A14%(12%)
Securitisation
d
-N/AN/AN/AN/AN/A
New Zealand
e
534N/AN/AN/AN/AN/A
Standardised
d
-N/AN/AN/AN/AN/A
Total4,101
a.Includes regulatory expected losses for defaulted and non-defaulted exposures.
b.A negative outcome indicates observed EAD was lower than predicted EAD, which can happen because exposures were managed down prior
to default or off-balance sheet items or undrawn limits were not fully drawn prior to default.
c.These are new asset classes under the capital framework. ‘Financial Institutions’ includes exposures subject to ‘Bank’ under the previous
framework. Performance information of exposures reported under Large Corporate and Property Finance requires sufficient passage of time to
be observed and thus is currently shown as N/A.
d.Predicted parameters are not available for specialised lending, securitisation or standardised exposures as risk weights for these portfolios do
not rely on credit estimates and are shown as N/A in the tables above.
e.Historical Default Rate, Loss Given Default and Observed-to-Predicted EAD are included in the asset classes above, consistent with the
historical classification of New Zealand exposures.

PILLAR 3 REPORTAPPENDICESGLOSSARY
DISCLOSURE
REGARDING FORWARD-
LOOKING STATEMENTS
59
CREDIT RISK MITIGATION
This section describes the way in which Westpac reduces its credit risk by using financial collateral, guarantees or credit
derivatives for the Corporate, Sovereign and Financial Institutions asset classes.
Approach
Westpac recognises credit risk mitigation only when formal legal documentation is held that establishes Westpac’s
direct, irrevocable and unconditional recourse to the collateral or to an unrelated credit risk mitigation provider. Minimum
standards for recognising credit risk mitigation are set out in Westpac’s credit rules and policies. All proposals for
recognising risk mitigation require approval by an authorised credit officer. Authorised credit officer approval is also
required for existing risk mitigation to be discontinued or withdrawn.
The amount of credit risk mitigation recognised is the face value of the mitigation instrument, adjusted by the
application of discounts for any maturity and/or currency mismatch with the underlying obligation, so that a discounted
amount is recognised when calculating the residual exposure after mitigation.
For regulatory capital purposes:
•exposures secured by eligible financial collateral, either cash or certain government or semi-government securities, or
where protection is bought via credit linked notes, provided proceeds are invested in eligible financial collateral, are
included at the gross value, with risk weighted assets for the portion thus secured calculated by applying a 5% LGD
1
;
•exposures mitigated by eligible guarantees, standby letters of credit or similar instruments, where Westpac has direct
recourse to an unrelated third party, or credit protection bought via credit default swaps where Westpac is entitled to
recover either full principal or credit losses on occurrence of defined credit events, are treated under double default
rules where the protection provider is rated A-/A3 or better. The Group Chief Credit Officer has the authority to
approve exceptions to the A-/A3 minimum; and
•exposures mitigated by guarantees, letters of credit, credit default swaps or similar instruments, which are not eligible
for double default treatment are treated under the substitution approach.
When Westpac uses credit risk mitigation techniques to reduce counterparty exposure, limits are applied to both
gross (i.e. pre-mitigation) and net exposure. Furthermore, exposure is recorded against the provider of any credit risk
mitigation and a limit framework prevents excessive concentration to such counterparties.
Netting
Risk reduction by way of current account set-offs is recognised for exposures to creditworthy customers domiciled in
Australia and New Zealand only. Customers are required to enter into formal agreements giving Westpac the unfettered
right to set-off gross credit and debit balances in their nominated accounts to determine Westpac’s net exposure within
each of these two jurisdictions. Cross-border set-offs are not permitted.
Close-out netting is undertaken for off-balance sheet financial market transactions with counterparties with whom
Westpac has entered into master netting agreements which allow such netting in specified jurisdictions. Close-out
netting effectively aggregates pre-settlement risk exposure at time of default, thus reducing overall exposure.
Collateral valuation and management
Westpac revalues financial markets and associated collateral positions on a daily basis to monitor the net risk position,
and has formal processes in place so that calls for collateral top-up or exposure reduction are made promptly. An
independent operational unit has responsibility for monitoring these positions. The collateralisation arrangements are
documented via the Credit Support Annex of the International Swaps and Derivatives Association (ISDA) master
agreement for derivatives transactions and Global Master Repurchase Agreement (GMRA) for repurchase transactions
and Clearing Agreements for cleared trades.
1.
Excludes collateralised derivative transactions.

60WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT
CREDIT RISK MITIGATION
Total exposure covered by collateral, credit derivatives and guarantee
Credit Risk Mitigants
$m
Total before
mitigation
Impact
of credit
mitigation
a
Total after
mitigation
Total exposure
for which
some credit
risk is
mitigated
Eligible
Financial
Collateral
Covered by
Guarantees
Covered by
Credit
Derivatives
31 March 2024
Corporate42,947(11)42,9367381187-
Large Corporate40,205-40,2052,1161,254--
Sovereign169,164(527)168,6371,109528214-
Financial Institutions39,897(1,469)38,4285,7962,471425-
Standardised27,412(1)27,41111--
Total319,625(2,008)317,6179,7604,265726-
30 September 2023
Corporate40,642(97)40,5456179790-
Large Corporate41,339(11)41,3282,6861,419--
Sovereign175,870(493)175,3771,005493240-
Financial Institutions40,954(2,528)38,4267,3623,375402-
Standardised29,393-29,393----
Total328,198(3,129)325,06911,6705,384732-
31 March 2023
Corporate37,405(295)37,1101,05629592-
Large Corporate40,248-40,2482,9261,522--
Sovereign211,270(402)210,86877740217-
Financial Institutions40,192(2,505)37,6876,8023,103394-
Standardised30,253-30,253----
Total359,368(3,202)356,16611,5615,322503-
a.Impact of credit mitigation under the substitution approach.

PILLAR 3 REPORTAPPENDICESGLOSSARY
DISCLOSURE
REGARDING FORWARD-
LOOKING STATEMENTS
61
COUNTERPARTY CREDIT RISK
Approach
Westpac’s process for managing counterparty credit risk is based on its assessment of the potential future credit risk
Westpac is exposed to when dealing in derivatives products and securities financing transactions. Westpac quantifies
this risk through a daily simulation of future market price and rate shocks and converts the effect of these shocks on
the mark-to-market value of Westpac’s positions to a credit exposure using Westpac’s Derivative Risk Equivalent (DRE)
methodology. Exposures are loaded into Westpac’s credit limit management system where they are checked against
pre-settlement risk limits that are set at the counterparty level. Limit excesses are reported to credit managers and
actioned within strict timeframes.
Structure and organisation
Financial Markets (First Line of Defence) and Westpac Institutional Bank Credit (WIB Credit, Second Line of Defence)
work collaboratively, providing insight, oversight and challenge of Financial Market’s credit exposure. WIB Credit sets
counterparty credit risk appetite, internal ratings, and credit limits for the counterparties with which Financial Markets
transacts. Transactions generating credit exposure outside of pre-defined credit appetite and limits require approval by
WIB Credit.
Market related credit risk
There are two components to the regulatory capital requirements for credit risk arising from derivative products:
•capital to absorb losses arising from the default of derivative counterparties; and
•capital to absorb losses arising from mark-to-market valuation movements resulting from changes in the credit
quality of derivative counterparties. These valuation movements are referred to as credit valuation adjustments (CVA)
and this risk is sometimes labelled as CVA risk.
Risk mitigation
Mitigation is achieved in a number of ways:
•the limit system monitors for excesses of the pre-defined limits, with any excesses being notified to authorised
credit officers;
•Westpac has netting agreements with counterparties to allow the exposure across a portfolio of trades with the same
counterparty to be netted;
•Westpac has collateral agreements with its largest counterparties. The market value of the counterparty’s portfolio is
used to recalculate the credit position at each end of day, with collateral being called for when certain pre-set limits
are met or exceeded. Westpac exchanges Initial Margin with eligible counterparties for eligible products as protection
against potential future exposure to changes in market value;
•Westpac has initial margin agreements with qualifying counterparties subject to relevant international regulations.
The exchange of initial margin for eligible products covers the potential future exposure that could arise
from changes in the market value of derivative transactions over the close-out period in the event of a
counterparty default;
•credit derivatives are used to mitigate credit exposure against certain counterparties; and
•regular marking to market and settling of the foreign exchange components of foreign exchange reset contracts.
Counterparty derivative exposures and limits
The risk management methodology for counterparty derivatives exposures is similar to the credit methodology
for transaction-managed loans. The main difference is in the estimation of the exposure for derivatives which is
based on the DRE methodology. DRE is a credit exposure measure for derivative trades which is calibrated to a
‘loan-equivalent’ exposure.
Counterparty credit limits are approved on an uncommitted and unadvised basis by authorised credit officers. This
follows an evaluation of each counterparty’s credit worthiness and establishing an agreed credit risk appetite for the
nature and extent of prospective business.

62WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT
COUNTERPARTY CREDIT RISK
Wrong-way risk exposures
Westpac defines wrong-way risk as exposure to a counterparty which is adversely correlated with the credit quality
of that counterparty. With respect to credit derivatives, wrong-way risk refers to credit protection purchased from a
counterparty highly correlated to the reference obligation.
Wrong-way risk exposures using credit derivatives are controlled by only buying protection from highly rated
counterparties. These transactions are assessed by an authorised credit officer who has the right to decline any
transaction where they feel there is an unacceptably high correlation between the ability to perform under the trade
and the performance of the underlying counterparty.
Consequences of a downgrade in Westpac’s credit rating
A downgrade in Westpac’s credit rating can have an impact on Westpac’s collateral agreements. Where an outright
threshold and minimum transfer amount are agreed, there will not be any impact on the amount of collateral posted
by Westpac in the event of a credit rating downgrade. Where the threshold and minimum transfer amount are tiered
according to credit rating, the impact of Westpac being downgraded below its current credit rating would be: for a one
notch downgrade, postings of $nil, while for a two notch downgrade, postings would be $10 million
1
.
Counterparty credit risk summary
The counterparty credit risk exposures below exclude New Zealand exposures. These exposures are separately included
in the New Zealand credit exposure line item.
31 March30 September31 March
$m202420232023
Gross positive fair value15,77621,46120,598
Netting and collateral benefits
a
(11,044)(14,599)(14,946)
Replacement cost4,7326,8625,652
Potential future exposure13,21211,93812,130
Impact of scaling factor of 1.4 and incurred credit value adjustment7,0757,3816,921
Net derivatives credit exposure under standardised approach to counterparty
credit risk25,01926,18124,703
Exposure type
Interest rate contracts5,9244,7366,391
Foreign exchange contracts18,28220,74617,539
Equity contracts---
Credit derivatives641413
Commodity contracts749685760
Other---
Total25,01926,18124,703
a.Includes cash collateral posted of $2,210 million as at 31 March 2024 (30 September 2023 included cash collateral posted: $1,236 million,
31 March 2023 included cash collateral held: $155 million).
Credit derivative transactions that create exposures to counterparty credit risk
2
31 March 2024Westpac PortfolioIntermediation activities
Notional value by product type ($m)BoughtSoldBoughtSold
Credit Default Swaps2,271---
Total Return Swaps----
Credit options----
Credit linked notes----
Collateralised Loan Obligations----
Other----
Total2,271---
1.Credit rating downgrade postings are cumulative.
2.Comparatives have been revised to conform with current period presentation.

PILLAR 3 REPORTAPPENDICESGLOSSARY
DISCLOSURE
REGARDING FORWARD-
LOOKING STATEMENTS
63
30 September 2023Westpac PortfolioIntermediation activities
Notional value by product type ($m)BoughtSoldBoughtSold
Credit Default Swaps2,02765--
Total Return Swaps----
Credit options----
Credit linked notes----
Collateralised Loan Obligations----
Other----
Total2,02765--
31 March 2023Westpac PortfolioIntermediation activities
Notional value by product type ($m)BoughtSoldBoughtSold
Credit Default Swaps1,258---
Total Return Swaps----
Credit options----
Credit linked notes----
Collateralised Loan Obligations----
Other----
Total1,258---

64WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT
SECURITISATION
A securitisation is a financial structure where the cash flow from a pool of assets is used to service obligations to at least
two different tranches or classes of creditors (typically holders of debt securities), with each class or tranche reflecting
a different degree of credit risk (i.e. one class of creditors is entitled to receive payments from the pool before another
class of creditors).
Securitisation transactions are generally grouped into two broad categories:
•traditional or true sale securitisations, which involve the transfer of ownership of the underlying asset pool to a third
party; and
•synthetic transactions, where the ownership of the underlying asset pool remains with the originator and only the
credit risk of the pool is transferred to a third party, using credit derivatives or guarantees.
Covered bond transactions, in which bonds issued by Westpac are guaranteed by assets held in a special purpose
vehicle, are not considered to be securitisation transactions.
Approach
Westpac’s involvement in securitisation activities ranges from a seller of its own assets to an investor in third-party
transactions and includes the arranging of transactions, the provision of securitisation services and the provision of
funding for clients, including clients requiring access to capital markets. All securitisation activity must follow Westpac’s
credit policies and approval processes.
Securitisation of Westpac originated assets - Securitisation is used by Westpac to manage funding and liquidity and
may also be used for capital management. It allows Westpac the ability to use a pool of assets to increase Westpac’s
wholesale funding capacity. Westpac may provide arm’s length facilities and services to the securitisation vehicles. These
typically include the provision of financing, redraw facilities and derivative contracts.
Westpac has entered into self securitisation transactions for funding and liquidity purposes. These are the same as
traditional securitisations, except that Westpac is the holder of all classes of notes issued (other than where senior
notes have been pledged as eligible collateral with the RBA). The senior notes qualify as eligible collateral with the
RBA, and are pledged against the Term Funding Facility provided by the RBA and used to meet APRA’s contingent
liquidity requirements
1
.
These ‘self securitisations’ do not change risk weighted assets
2
. No securitisation transactions for Westpac originated
assets are classified as resecuritisation exposures which are deemed to mean a securitisation exposure in which at least
one of the underlying exposures in the pool is a securitisation exposure.
Securitisation in the management of Westpac’s credit portfolio - Westpac does not use securitisation to manage its
corporate and institutional loan and counterparty credit risk portfolios. Single name credit default swaps are not treated
as securitisations but as credit risk mitigation facilities.
Provision of securitisation services, including funding and arranging asset backed bond issues – Westpac provides
services to clients wishing to access asset-backed financing through securitisation. Those services include the provision
of warehouse
3
and term funding of securitised assets; and arranging and/or lead managing asset backed bond issues.
Westpac may also invest in securitised bond issues and will receive an interest margin for securities held.
Securitisation facilities provided by Westpac may include resecuritisation exposures. Westpac also buys and sells
securitisation exposures in the secondary market to facilitate portfolio management activity by its institutional
customers who hold asset backed bonds.
Westpac’s role in the securitisation process
Securitisation activityRole played by Westpac
Securitisation of Westpac originated assets•Arranger
•Asset originator
•Bond distributor
•Facility provider
•Note holder
•Trust manager
•Swap provider
•Servicer
Provision of securitisation services including funding and
arranging asset backed bond issues
•Arranger
•Bond distributor
•Warehouse financing
•Investor - purchaser of
securitisation exposures
•Liquidity
facility provider
•Swap provider
•Market maker
and broker for
distributed bonds
1.APS210 updated contingent liquidity guidance requires from 1 March 2022, self securitisations to cover 30% of AUD net cash outflows.
2.The credit exposures of the underlying loans are measured in accordance with APS112 and APS113.
3.Lending facilities provided to securitisation vehicles which enable accumulation of originator assets until a sufficiently large pool is available
for issuance of securities in a term securitisation.

PILLAR 3 REPORTAPPENDICESGLOSSARY
DISCLOSURE
REGARDING FORWARD-
LOOKING STATEMENTS
65
Key Objectives
Securitisation of Westpac originated assets - The securitisation of Westpac’s own assets provides funding diversity and
liquidity management.
Provision of securitisation services including funding and arranging asset backed bond issues - Westpac receives
market-based fees in return for its services as servicer, swap provider, arranger, facility provider and distribution fees
for issuance of asset backed bonds associated with the provision of warehouse and term funding facilities. Westpac
also purchases securities in order to earn income. Westpac facilitates portfolio management activity by its institutional
customers by buying and selling securitisation exposures in the secondary market and is compensated through an
interest margin including a bid-offer spread on the transactions.
Structure and organisation
Securitisation of Westpac originated assets - Westpac's Treasury operations are responsible for all Westpac originated
securitisation activity including funding and liquidity management.
Provision of securitisation services including funding and arranging asset backed bond issues - These services
are provided by Westpac Institutional Bank and include the provision of securitisation services including arranger,
bond distributor, warehouse financing, liquidity facility provider, swap provider, market-making and broking of
asset-backed bonds.
Risk reporting
Credit exposure - Funding, liquidity, credit enhancement and redraw facilities, swap arrangements and counterparty
exposures are captured and monitored in key source systems along with other facilities/derivatives entered into
by Westpac.
Operational risk exposure - The operational risk review process for Westpac includes the identification of risks, controls
and key performance indicators in relation to all securitisation activity and services provided by Westpac or any of
its subsidiaries.
Market risk exposure - Exposures arising from transactions with counterparties are captured as part of Westpac’s traded
and non-traded market risk reporting and limit management framework.
Liquidity risk exposure - Exposure to, and the impact of, securitisation transactions are managed under the Liquidity
Risk Management Framework and are integrated into routine reporting for capital and liquidity positions, net interest
margin analysis, balance sheet forecasting and funding scenario testing. The annual funding plan incorporates
consideration of overall liquidity risk limits and the securitisation of Westpac originated assets.
Risk mitigation
Securitisation of Westpac originated assets - The interest rate and basis risks generated by Westpac’s hedging
arrangements to each securitisation trust are captured and managed within Westpac’s asset and liability management
framework. The liquidity risk generated by Westpac’s liquidity and redraw facilities to each securitisation trust is
captured and managed in accordance with Westpac’s liquidity management policies along with all other contingent
liquidity facilities.
Provision of securitisation services including funding and arranging asset backed bond issues - All securitisation
transactions are approved within the context of a securitisation credit policy that sets detailed transaction-specific
guidelines that regulate servicer counterparty risk appetite, transaction tenor, asset class, third party credit support and
portfolio quality. This policy is applied in conjunction with other credit and market risk policies that governs the provision
of derivative and other services that support securitisation transactions. In particular, credit hedging transactions are
subject to Westpac’s credit risk mitigation approach (see pages 59 and 60). Any interest rate or currency hedging is
subject to counterparty credit risk management (see pages 61 to 63) and market risk management (see pages 74 to 78)
policies and processes).

66WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT
SECURITISATION
Regulatory capital approaches
The regulatory capital treatment of all securitisation exposures is measured in accordance with APS120 other than
the securitisation exposures of an overseas banking subsidiary that is prudentially regulated by a prescribed authority.
For these New Zealand exposures, Westpac calculates risk-weighted assets using the Reserve Bank of New Zealand’s
prudential rules. These exposures are separately included in the New Zealand credit exposure line item. Westpac must
still make deductions from CET1 capital that are required under APS120. APS120 also specifies that securitisation
exposures held in the trading book are subject to the requirements of Prudential Standard APS116 Capital Adequacy:
Market Risk.
Under APS120 the approaches employed include the External Rating Based Approach (ERBA) and the Supervisory
Formula Approach (SFA). Under the ERBA, APRA provides risk-weights that are matched to external credit ratings and
takes into account tranche maturity and tranche thickness. The SFA applicable to unrated exposures dynamically looks
at the type and performance of underlying asset pools funded by the securitisation exposure as well as the structural
features of the transaction to determine capital requirements. The Internal Assessment Approach (IAA) is not permitted
under APS120.
Securitisation of Westpac originated assets - The assets sold by Westpac to a securitisation trust are excluded
from Westpac’s calculation of credit risk weighted assets if capital relief is sought and the requirements of APS120
are satisfied
1
.
In instances where insufficient risk transfer is achieved by the transaction for regulatory purposes, the capital calculation
is performed on the underlying asset pool while the facilities provided to such securitisation vehicles do not attract
regulatory capital charges.
Provision of securitisation services including funding - Westpac uses the ERBA and the SFA methodology when
determining regulatory capital requirements for warehouse and term funding client facilities.
The External Credit Assessment Institutions that can be used by Westpac for securitisations are S&P Global Ratings,
Moody's Ratings and Fitch Ratings.
Westpac’s accounting policies for securitisation activities
Securitisation of Westpac originated assets - The assets sold by Westpac to a securitisation trust remain on Westpac’s
balance sheet for accounting purposes.
Provision of securitisation services including funding and arranging asset backed bond issues - Fee income from these
services is recognised on an accrual basis. Liquidity and funding facilities are treated as commitments to provide finance,
with fee and margin income recognised on an accrual basis. Warehouse and term funding facilities are treated as loans.
For investment in securitisation exposures, if the instrument has been designated on initial recognition at fair value
(including instruments containing a credit default swap), the exposure will be measured at fair value through the Income
Statement. All other investments in securitisation exposures will be classified and measured at fair value through Other
Comprehensive Income (FVOCI) (within the debt securities at FVOCI reserve).
1.
Including the requirements to achieve capital relief.

PILLAR 3 REPORTAPPENDICESGLOSSARY
DISCLOSURE
REGARDING FORWARD-
LOOKING STATEMENTS
67
Banking book summary of assets securitised by Westpac
1
The table below shows outstanding banking book securitisation assets and assets intended to be securitised for
Westpac originated assets by underlying asset type. It includes the amount of impaired and past due assets, along
with any losses recognised by Westpac during the current period.
Securitised assets are held in securitisation trusts. Trusts which meet requirements to achieve capital relief do not
form part of the Level 2 consolidated group. Self securitisation trusts remain consolidated at Level 2 and the assets
transferred to these trusts are risk weighted in accordance with APS112 and APS113.
Total outstanding securitisations at 31 March 2024 were $121.1 billion, a reduction of $11.5 billion from 30 September
2023. The movement over the half is due to a reduction in the size of internal securitisation programmes, resulting from
reduced requirements following the phase-out of the Reserve Bank of Australia’s (RBA) Committed Liquidity Facility on
1 January 2023 and the maturing of drawdowns under the Term Funding Facility since June 2023.
Total outstanding securitised
Assets
Intended to be
securitised
Non
performing
Exposures -
Not Impaired
Non
performing
Exposures -
Impaired
Total Non
performing
Exposures
Past due
assets
Westpac
recognised
losses
by ADI
$m
Traditional
Securitisation
a
Synthetic
Securitisation
31 March 2024
Residential mortgages121,138--1,199611,2601,129-
Credit cards--------
Auto and
equipment finance
--------
Business lending--------
Investments in ABS--------
Other--------
Total121,138--1,199611,2601,129-
30 September 2023
Residential mortgages132,630--1,009561,065949-
Credit cards--------
Auto and
equipment finance
--------
Business lending--------
Investments in ABS--------
Other--------
Total132,630--1,009561,065949-
31 March 2023
Residential mortgages140,870--90245947814-
Credit cards--------
Auto and
equipment finance
199--268--
Business lending--------
Investments in ABS--------
Other--------
Total141,069--90451955814-
a.Includes self-securitisation assets of $114,287 million as at 31 March 2024 ($127,884 million as at 30 September 2023 and $135,877 million as
at 31 March 2023).
1.Represents securitisation activity from the end of the reporting period to the disclosure date of this report.

68WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT
SECURITISATION
Banking book summary of total Westpac sponsored third party assets securitised
The table below represents banking book third party assets where Westpac acts as a sponsor. Westpac would be
considered as a sponsor as it manages or advises the securitisation program, places securities into the market or
provides liquidity and/or credit enhancement.
$m
31 March
2024
30 September
2023
31 March
2023
Residential mortgages123149120
Total123149120
Banking book summary of securitisation activity by asset type
This table shows assets transferred into securitisation schemes by underlying asset type (ADI originated) for the relevant
period. The overall reduction in the amounts securitised is due to the reduction in the frequency and volume of sales
to the internal securitisation programmes, resulting from reduced requirements following the phase-out of the Reserve
Bank of Australia’s Committed Liquidity Facility on 1 January 2023 and the maturing drawdowns of the Term Funding
Facility since June 2023.
For the 6 months endedRecognised
31 March 2024Amountgain or loss
$msecuritisedon sale
Residential mortgages4,714-
Total4,714-
For the 12 months endedRecognised
30 September 2023Amountgain or loss
$msecuritisedon sale
Residential mortgages26,201-
Total26,201-
For the 6 months endedRecognised
31 March 2023Amountgain or loss
$msecuritisedon sale
Residential mortgages14,236-
Total14,236-

PILLAR 3 REPORTAPPENDICESGLOSSARY
DISCLOSURE
REGARDING FORWARD-
LOOKING STATEMENTS
69
Banking book summary of on and off-balance sheet securitisation by exposure type
As set out in the table on page 23, the table below for 31 March 2024 and on pages 67 to 68 excludes New Zealand
exposures. Under the capital framework these exposures are separately included in the New Zealand credit exposure
line item.
On balance sheetTotal
SecuritisationSecuritisationOff-balanceExposure
$mretainedpurchasedsheetat Default
31 March 2024
Securities-7,942-7,942
Liquidity facilities--378378
Funding facilities6,988-7207,708
Underwriting facilities----
Lending facilities1,831-1591,990
Warehouse facilities14,210-5,78119,991
Total23,0297,9427,03838,009
30 September 2023
Securities-7,520-7,520
Liquidity facilities--329329
Funding facilities6,800-7677,567
Underwriting facilities----
Lending facilities1,870-2202,090
Warehouse facilities13,632-6,46220,094
Total22,3027,5207,77837,600
31 March 2023
Securities-7,135-7,135
Liquidity facilities--292292
Funding facilities3,634-4314,064
Underwriting facilities----
Lending facilities1,953-1252,078
Warehouse facilities13,534-5,72919,263
Total19,1207,1356,57732,831

70WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT
SECURITISATION
Banking book securitisation exposure at default by risk weight band
ExposureTotal ExposureRisk Weighted AssetsTotal Risk
$mSecuritisationResecuritisationat DefaultSecuritisationResecuritisationWeighted Assets
31 March 2024
Less than or equal to 10%------
Greater than 10 - 20%33,154-33,1545,778-5,778
Greater than 20 - 30%4,182-4,1821,047-1,047
Greater than 30 - 50%186-18676-76
Greater than 50 - 75%411-411248-248
Greater than 75 - 100%10-109-9
Greater than 100 - 250%31-3139-39
Greater than 250 - 425%35-35120-120
Greater than 425 - 650%------
Other------
Deductions------
Total38,009-38,0097,317-7,317
30 September 2023
Less than or equal to 10%------
Greater than 10 - 20%31,440-31,4405,530-5,530
Greater than 20 - 30%3,213-3,213746-746
Greater than 30 - 50%2,540-2,5401,123-1,123
Greater than 50 - 75%356-356217-217
Greater than 75 - 100%38-3835-35
Greater than 100 - 250%9-910-10
Greater than 250 - 425%------
Greater than 425 - 650%------
Other------
Deductions4-4---
Total37,600-37,6007,661-7,661
31 March 2023
Less than or equal to 10%8-8---
Greater than 10 - 20%28,802-28,8024,983-4,983
Greater than 20 - 30%1,605-1,605371-371
Greater than 30 - 50%1,963-1,963760-760
Greater than 50 - 75%415-415248-248
Greater than 75 - 100%22-2221-21
Greater than 100 - 250%15-1516-16
Greater than 250 - 425%------
Greater than 425 - 650%------
Other------
Deductions1-1---
Total32,831-32,8316,400-6,400

PILLAR 3 REPORTAPPENDICESGLOSSARY
DISCLOSURE
REGARDING FORWARD-
LOOKING STATEMENTS
71
Securitisation exposure deducted from capital
As at 31 March 2024, securitisation exposure deducted from capital was $16.3 million (30 September 2023: $16.0 million)
all of which related to the securitisation of Westpac originated assets. There is no trading book capital deduction for
31 March 2024 (30 September 2023: nil).
Banking book securitisation subject to early amortisation treatment
There is no securitisation exposure in the banking book that is subject to early amortisation treatment as at
31 March 2024 (30 September 2023: nil).
Banking book resecuritisation exposure subject to credit risk mitigation (CRM)
As at 31 March 2024, resecuritisation exposures subject to CRM was nil (30 September 2023: nil).
Banking book resecuritisation exposure to guarantors
Westpac has no third party guarantors providing guarantees for securitised assets, principal or interest repayments as at
31 March 2024 (30 September 2023: nil).
Trading book summary of assets securitised by Westpac
As at 31 March 2024, there was $119.6 million in outstanding securitisation exposures for Westpac originated assets held
in the trading book (30 September 2023: $0.2 million).
Trading book summary of total Westpac sponsored third party assets securitised
There are no third party assets held in the trading book where Westpac is responsible for the establishment of the
securitisation program and subsequent management as at
31 March 2024 (30 September 2023: nil).
Trading book summary of securitisation activity by asset type
There was $119.6 million of Westpac originated residential mortgage exposures in the trading book as at 31 March 2024
(30 September 2023: $0.2 million).
Trading book aggregated amount of exposure securitised by Westpac and subject to APS116 Capital
Adequacy: Market Risk
As at 31 March 2024, there was $119.6 million of Westpac originated securitisation exposure held in the trading book
subject to APS116 Capital Adequacy: Market Risk (30 September 2023: $0.2 million).

72WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT
SECURITISATION
Trading book summary of on and off-balance sheet securitisation by exposure type
1
On balance sheetTotal
SecuritisationSecuritisationOff-balanceExposure
$mretainedpurchasedsheetat Default
31 March 2024
Securities-610-610
Liquidity facilities----
Funding facilities----
Underwriting facilities----
Lending facilities----
Warehouse facilities----
Credit enhancements----
Basis swaps--130130
Other derivatives--11
Total-610131741
30 September 2023
Securities-447-447
Liquidity facilities----
Funding facilities----
Underwriting facilities----
Lending facilities----
Warehouse facilities----
Credit enhancements----
Basis swaps--4949
Other derivatives--55
Total-44754501
31 March 2023
Securities-610-610
Liquidity facilities----
Funding facilities----
Underwriting facilities----
Lending facilities----
Warehouse facilities----
Credit enhancements----
Basis swaps--6565
Other derivatives--66
Total-61071681
1.EAD associated with trading book securitisation is not included in the EAD by major type on page 31. Trading book securitisation exposure is
captured and risk weighted under APS116.

PILLAR 3 REPORTAPPENDICESGLOSSARY
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73
Trading book securitisation exposure subject to internal models approach (IMA) for specific risk
There is no trading book securitisation exposure subject to IMA for specific risk for 31 March 2024
(30 September 2023: nil).
Trading book securitisation exposure subject to APS120 Securitisation specific risk by risk weight band
There is no trading book securitisation exposure subject to APS120 specific risk for 31 March 2024
(30 September 2023: nil).
Trading book capital requirements for securitisation exposures subject to IMA for specific risk by
risk classification
There is no trading book capital requirement for securitisation subject to IMA for specific risk for 31 March 2024
(30 September 2023: nil).
Trading book capital requirements for securitisation regulatory capital approaches by risk weight band
There is no trading book capital requirement for securitisation subject to regulatory capital approaches for
31 March 2024 (30 September 2023: nil).
Trading book securitisation subject to early amortisation treatment
There is no securitisation exposure in the trading book that is subject to early amortisation treatment for 31 March 2024
(30 September 2023: nil).
Trading book resecuritisation exposure subject to CRM
Westpac has no resecuritisation exposure subject to CRM at 31 March 2024 (30 September 2023: nil).
Trading book resecuritisation by guarantor creditworthiness
Westpac has no third party guarantors providing guarantees for securitised assets, principal or interest repayments for
31 March 2024 (30 September 2023: nil).

74WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT
MARKET RISK
Westpac’s exposure to traded market risk arises out of Financial Markets and Treasury trading activities. This is
quantified for regulatory capital purposes using both the internal model approach and the standard method, details
of which are provided below.
Approach
Financial Markets trading business supports customers through activities including market making and distribution of
capital markets products. The types of market risk arising from these activities include interest rate, foreign exchange,
commodity, equity price, credit spread and volatility risk.
Treasury’s trading activity includes the management of interest rate, foreign exchange and credit spread risks associated
with the wholesale funding book, liquid asset portfolios and foreign exchange repatriations. Treasury also manages
interest rate risk in the banking book which is discussed in the IRRBB section.
Trading activities are managed within a BRiskC approved market risk framework that incorporates BRiskC approved
value at risk (VaR) and stressed value at risk (SVaR) limits. Market risk is managed using VaR, SVaR and structural
risk limits (including volume limits and basis point value limits) in conjunction with scenario analysis and stress testing.
Market risk limits are allocated to business management based upon Westpac’s risk appetite and business strategies, in
addition to the consideration of market liquidity and concentration risk.
Trades are fair valued daily using rates that have been captured from an independent market data source that has been
approved by the Revaluation Committee (RC). Where there is no source of independent rates, data will either be derived
using a methodology approved by the RC or sourced from dealer contributions. Rates that are dealer-sourced or have
limited independent sources are reviewed at least on a monthly basis. The RC meets monthly to review the results of
independent price verification performed by the Finance valuation function. In addition, valuation adjustments may be
made as deductions from CET1 Capital for exposures which are not captured through the fair valuation framework.
VaR and SVaR limits
Market risk arising from trading book activities is primarily measured using VaR based on an historical simulation
methodology. Westpac estimates VaR as the potential loss in earnings from adverse market movements and is calculated
to a 99% confidence level using the most recent 12 months of historical market data. SVaR is an additional VaR measure
which uses 12 months of historical market data that includes a period of significant financial stress. VaR and SVaR take
account of all known material market variables that may cause a change in the value of the trading portfolio, including
interest rates, foreign exchange rates, price changes, volatility, and the correlation between these variables.
The BRiskC approved market risk VaR and SVaR limits for trading activities include separate VaR and SVaR sub-limits for
the trading activities of Financial Markets and Treasury.
Back-testing
Daily back-testing of VaR results is performed to ensure that model integrity is maintained. A review of both the actual
and potential profit and loss outcomes is also undertaken to monitor any skew created by the historical data.
Stress testing
Daily stress testing against pre-determined scenarios is carried out to analyse potential losses beyond the 99%
confidence level. A stress test escalation framework is approved by the Head of Market Risk, Liquidity and Capital Risk.
Profit
and loss notification framework
The BRiskC has approved a profit and loss notification framework. Included in this framework are levels of escalation in
accordance with the size of the profit or loss. Triggers are applied to both a 1-day and a rolling 20-day cumulative total.

PILLAR 3 REPORTAPPENDICESGLOSSARY
DISCLOSURE
REGARDING FORWARD-
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75
Risk reporting
Daily monitoring of current exposure and limit utilisation is conducted independently by the Market Risk and Treasury
Risk (Second Line of Defence) teams, that monitor market risk exposures against VaR, SVaR and structural limits.
Daily VaR and SVaR position reports are produced by risk type, by product lines and by geographic region. These are
supplemented by structural risk reporting, advice of profit and loss trigger levels and stress test escalation trigger points.
Model accreditation has been granted by APRA for the use of an internal model for the determination of regulatory
capital for the key classes of interest rate (general market), foreign exchange, commodity and equity risks (including
equity specific risk). Under the model, regulatory capital is derived from both the current VaR window and a SVaR
window, where these VaR measures are calculated over a 10-day time horizon to a 99th percentile, one-tailed confidence
interval. Specific risk refers to the variations in individual security prices that cannot be explained by general market
movements, and event and default risk. Interest rate specific risk capital (specific issuer risk) is calculated using the
Standard method and is added to the VaR regulatory capital measure. Westpac currently holds an industry-wide capital
overlay which was introduced from 31 December 2021 and relates to APRA’s revised risks-not-in-VaR framework. This
overlay will be applied until the Group’s revised framework is approved by APRA.
Structural foreign exchange rate risk
Structural foreign exchange rate risk results from the generation of foreign currency denominated earnings and from
Westpac’s capital deployed in offshore branches and subsidiaries, where it is denominated in currencies other than
Australian dollars. The Australian dollar equivalent of offshore earnings and capital is subject to change as exchange
rates fluctuate, which could introduce significant variability to Westpac’s reported financial results. ALCO provides
oversight of the appropriateness of foreign exchange hedges on earnings and capital.
Risk mitigation
Market risk positions are managed by the trading desks consistent with delegated trading and product authorities. Risk
management is carried out by qualified personnel with varying levels of seniority commensurate with the nature and
scale of market risks under management.
The following controls allow monitoring by management:
•trading authorities and responsibilities are clearly delineated at all levels;
•a structured system of limits and reporting of risk exposures, including stress testing;
•surveillance of dealing room conduct;
•all new products and significant product variations undergo a rigorous approval process to identify business risks
prior to launch;
•models that are used to determine risk or profit and loss for Westpac’s accounts are independently reviewed;
•duties are segregated so that employees involved in the origination, processing and valuation of transactions operate
under separate reporting lines, minimising the opportunity for collusion; and
•legal personnel review documentation for compliance with relevant laws and regulations.
In addition, Group Audit provides independent assurance of the governance, risk management and internal controls.
Market risk regulatory capital and risk weighted assets
The Internal model approach uses VaR and SVaR, while the Standard approach is used for interest rate specific risk.
31 March
30 September31 March
$m202420232023
Internal model approach7658081,112
Standard approach135115101
Total capital required9009231,213
Risk weighted assets11,25111,53815,168

76WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT
MARKET RISK
VaR by risk type
For the 6 months ended
$mHighLowAveragePeriod end
31 March 2024
Interest rate risk21.27.613.97.6
Foreign exchange risk7.30.92.71.6
Equity risk----
Commodity risk1.70.91.51.1
Other market risks10.12.68.02.7
Diversification benefitN/AN/A(9.2)(3.8)
Net market risk
a
23.48.816.89.2
30 September 2023
Interest rate risk21.87.812.811.3
Foreign exchange risk3.81.12.33.0
Equity risk0.1---
Commodity risk1.80.91.51.5
Other market risks9.46.88.07.9
Diversification benefitN/AN/A(7.1)(6.5)
Net market risk
a
31.810.417.417.2
31 March 2023
Interest rate risk15.07.09.09.0
Foreign exchange risk14.01.06.01.0
Equity risk----
Commodity risk4.02.02.02.0
Other market risks8.03.04.08.0
Diversification benefitN/AN/A(9.0)(7.0)
Net market risk
a
19.09.013.012.0
a.VaR and SVaR measures shown here use a 1 day time horizon. The net market risk measure reflects the aggregate diversified risk position for
the period. Therefore, individual risk factors will not sum to this total.

PILLAR 3 REPORTAPPENDICESGLOSSARY
DISCLOSURE
REGARDING FORWARD-
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77
Stressed VaR by risk type
For the 6 months ended
$mHighLowAveragePeriod end
31 March 2024
Interest rate risk83.643.361.460.8
Foreign exchange risk16.61.74.32.5
Equity risk----
Commodity risk2.61.31.81.5
Other market risks18.815.117.317.2
Diversification benefitN/AN/A(18.9)(17.0)
Net market risk
a
87.350.765.965.0
30 September 2023
Interest rate risk152.848.479.060.1
Foreign exchange risk10.21.03.83.9
Equity risk0.2---
Commodity risk3.61.21.81.9
Other market risks18.012.715.716.7
Diversification benefitN/AN/A(15.8)(28.8)
Net market risk
a
157.853.884.453.8
31 March 2023
Interest rate risk95.036.059.060.0
Foreign exchange risk45.01.015.03.0
Equity risk----
Commodity risk3.02.03.02.0
Other market risks14.010.012.014.0
Diversification benefitN/AN/A(23.0)(13.0)
Net market risk
a
86.042.066.066.0
a.The net market risk measure reflects the aggregate diversified risk position for the period. Therefore, individual risk factors will not sum to this
total.

78WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT
MARKET RISK
Back-testing results
The following graph gives a comparison of actual profit and loss to VaR over the 6 months ended 31 March 2024.
(50)
(40)
(30)
(20)
(10)
-
10
20
30
40
50
- 10 20 30 40 50
Actual Profit
and Loss ($m)
Daily Value at Risk ($m)
Traded Risk: Actual Profit and Loss vs. Var
01-Oct-2023 to 28-Mar-2024
Each point on the graph represents 1 day’s trading profit or loss. This result is placed on the graph relative to the
associated VaR utilisation. The downward sloping line represents the point where a loss is equal to VaR utilisation.

PILLAR 3 REPORTAPPENDICESGLOSSARY
DISCLOSURE
REGARDING FORWARD-
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79
INTEREST RATE RISK IN THE BANK BOOK (IRRBB)
Introduction
The Group manages interest rate risk to achieve reasonable earnings stability over time. IRRBB arises from changes in
market interest rates that adversely impact the Group’s earnings (net interest income (NII)) or the economic value of the
balance sheet. The banking book activities that give rise to this risk include customer lending and deposit taking, balance
sheet funding and liquidity management and capital management.
Management
IRRBB is managed and governed under the Group’s Market Risk Management Framework which is approved by the
BRiskC. This framework is supported by a comprehensive IRRBB measurement system that quantifies these risks and the
potential impact from changes in market interest rates.
Key aspects of this framework include:
•risk appetite metrics set by the Board which incorporate limits for changes in NII, embedded losses and economic
value at risk;
•centralisation of the management of the Group’s interest rate risk profile into Treasury via the Funds Transfer Pricing
policy and systems;
•day to day management of these risks by Treasury in line with approved limits. This includes the development and
execution of the interest rate risk strategy for the Group’s choice of its investment term of capital (ITOC) and the
repricing profile for non-rate sensitive deposits;
•policies and procedures that support the proactive risk management of IRRBB exposures and the management and
performance of models used to capture and measure IRRBB risk;
•regular reporting of IRRBB metrics to senior management and the Board; and
•independent oversight from the Market Risk and Model Risk functions in line with the Group’s Three Lines of
Defence framework.
Measurement
Westpac has received approval from APRA to use its internal model for the calculation of regulatory capital for IRRBB,
under APS117 Capital Adequacy: Interest Rate Risk in the Banking Book.
Westpac measures and monitors IRRBB outcomes using the following principal metrics:
•Value at Risk (VaR) – potential loss in economic value from adverse market rate movements while maintaining the
portfolio for a defined period. Westpac calculates VaR for both internal monitoring and regulatory capital purposes.
The regulatory capital VaR measure uses 6 years of historical data with a scaled 1 year holding period and 99%
confidence interval. For internal limit monitoring purposes, 1 year of historical data is used with a 1 day holding period
and 99% confidence interval;
•Single currency basis and credit spread sensitivities – the estimate of a change in economic value of the banking
book due to a 1 basis point move in single currency basis and credit spreads. Structural risk limits are in place to
manage these sensitivities;
•Embedded Gains or Losses (EGL) – EGL is included in the IRRBB capital requirement and is the economic gain or
loss implied by a static balance sheet, being the difference between the book value and current economic value of
banking book items accounted for on an accrual basis. Sensitivity metrics are in place to monitor the potential risk of
loss in economic value from embedded losses;
•NII-at-risk (NaR) – NaR is measured using a net interest income sensitivity model. The NaR model combines the
underlying statement of financial position data with assumptions about runoff and new business and expected
repricing behaviour. This simulates a series of potential NII outcomes over one-to-three-year time horizons subject to
100 and 200 basis point shifts up and down from the current market interest rates in Australia and New Zealand. A
NaR limit is in place to monitor this exposure; and
•Scenario analysis and Stress Testing – the potential loss in earnings and economic value from large parallel and
non-parallel yield curve shocks.
Behavioural models are incorporated in the measurement of IRRBB to derive behavioural assumptions where
appropriate, such as for products that do not have a contractually defined repricing date (e.g. non-maturity deposits) or
where there is potential for variation between contractual and actual repricing dates (e.g. prepayments).
Risk reporting
The IRRBB measurement comprises the systems, data and models used to measure IRRBB and forms part of the
Group’s IRRBB management framework. It includes the capture of retail and other business transactions through the
transfer pricing system and the relevant balance sheet management activities of Treasury. The IRRBB measurement
system provides regular reporting of the key IRRBB metrics described above, with Market Risk Oversight performing
independent monitoring daily of market risk exposures against VaR, structural risk limits and stress testing. Regulatory
capital, NaR and EGL sensitivity are monitored on a monthly basis with IRRBB management reports produced for the
senior management forums of ALCO, MARCO, RISKCO and BRiskC to provide transparency of compliance with risk
appetite, limits and interest rate risk strategy outcomes.