Westpac 2024 Group Annual Report and Appendix 4E
ASX
Release
4 November 2024
Westpac 2024 Group Annual Report and Appendix 4E
Westpac Banking Corporation (“Westpac”) today provides the attached Westpac
2024 Group Annual Report and Appendix 4E.
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
i
ASX APPENDIX 4E
Results for announcement to the market
1
Report for the full year ended 30 September 2024
2
Revenue from ordinary activities
a,b
($m)stable0%to21,588
Profit from ordinary activities after tax attributable to equity holders
b
($m)down3%to6,990
Net profit for the period attributable to equity holders
b
($m)down3%to6,990
a.Comprises reported interest income, interest expense and non-interest income.
b.Above comparisons are to the reported results for the twelve months ended 30 September 2023.
Dividend distributions (cents per ordinary share)Amount per securityFranked amount per security
Final dividend7676
Interim dividend7575
Special dividend
a
1515
Record date for determining entitlements to the final dividend8 November 2024
a.Relates to First Half 2024.
1.This document comprises the Westpac 2024 Full Year Financial Results, and is provided to the Australian Securities Exchange under Listing
Rule 4.3A.
2.This report should be read in conjunction with Westpac's 2024 reporting suite and any public announcements made in the period by Westpac
in accordance with the continuous disclosure requirements of the Corporations Act 2001 and ASX Listing Rules.
iiWESTPAC 2024 ANNUAL REPORT
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WESTPAC
2024 ANNUAL REPORT
WESTPAC
2024
ANNUAL
REPORT
WESTPAC 2024 ANNUAL REPORT
Acknowledgement of Indigenous Peoples
Westpac acknowledges the First Peoples of Australia. We recognise
their ongoing role as Traditional Owners of the land and waters of
this country and pay our respects to Elders, past and present. We
extend our 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 tāngata whenua and
the unique relationship that Indigenous Peoples share with all New
Zealanders under Te Tiriti o Waitangi.
Westpac’s reporting suite
Our 2024 Annual Report is our primary report to shareholders. Guided by the Integrated Reporting Framework
principles, it brings together financial and non-financial performance, strategic progress and the value created for
stakeholders. Within this report, we cover our sustainability priorities which are also included on the Sustainability
page on our website.
The information in this report relates to our 2024 (FY24) reporting period unless stated otherwise.
Our Annual Report forms part of our broader 2024 reporting suite, which comprises financial, non-financial, risk and
sustainability performance for the year. The 2024 reporting suite includes:
•Financial Results Presentation and Investor Discussion Pack;
•Second Half Performance Review;
•Climate Report;
•Pillar 3 Report;
•Notice of Meeting;
•Corporate Governance Statement; and
•Risk Factors.
Our 2024 Sustainability Index and Datasheet is the reporting hub for many of our sustainability metrics. It provides
a glossary and details of our alignment with key reporting standards.
Our full suite is available online at westpac.com.au/2024annualreport.
In this 2024 Annual Report a reference to ‘Westpac’, ‘Group’, ‘Westpac Group’, ‘we’, ‘us’ and ‘our’ is to Westpac Banking Corporation
ABN 33 007 457 141 and its subsidiaries unless it clearly means just Westpac Banking Corporation.
For certain information about the basis of preparing the financial and non-financial information in this Annual Report see Reading this report
(page 100).
In addition, this Annual Report contains statements that constitute ‘forward-looking statements’ within the meaning of Section 21E of the US
Securities Exchange Act of 1934. For an explanation of forward-looking statements and the risks, uncertainties and assumptions to which they
are subject, see Reading this report (page 100). Please consider those important disclaimers when reading the forward-looking statements in
this Annual Report.
Information contained in or accessible through the websites mentioned in this Annual Report does not form part of this report unless we
specifically state that it is incorporated by reference and forms part of this report. Information on those websites owned by Westpac is current as
at the date of this report. Except as required by law, we assume no obligation to revise or update those websites after the date of this report. We
are not in a position to verify information on websites owned and/or operated by third parties.
Westpac Banking Corporation ABN 33 007 457 141
Cover image: Rita Ngo, Lending Manager, Queensland
STRATEGIC
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FINANCIAL
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SHAREHOLDER
INFORMATION
3
Contents
STRATEGIC REVIEW4
How we create value4
Chairman’s report6
CEO’s report8
About Westpac10
Our strategy12
Our operating environment14
Creating value for shareholders16
Creating value for customers20
Creating value for our people26
Creating value for the community30
Creating value for the environment34
Technology38
Risk Management40
Corporate Governance48
Sustainability Governance52
Directors’ Report54
Board of Directors54
Executive Team58
Remuneration Report68
Information on Westpac96
PERFORMANCE REVIEW99
Reading this report100
Group performance104
Segment reporting130
FINANCIAL STATEMENTS142
Income statements143
Statements of comprehensive income144
Balance sheets145
Statements of changes in equity146
Cash flow statements148
Notes to the Financial Statements149
Consolidated Entity Disclosure Statement268
Statutory Statements271
SHAREHOLDER INFORMATION280
Shareholding Information281
Additional Information290
Glossary of Abbreviations and Defined Terms298
Contact Us303
4WESTPAC 2024 ANNUAL REPORT
HOW WE CREATE VALUE
OUR FOUNDATIONSOUR BUSINESSTHE VALUE WE CREATE
a
Passionate people
who make
a difference
Data-informed
insights and
decision making
Proactive risk
management
and risk culture
Strong balance
sheet
Shareholders
Delivering improved returns to shareholders (pages 16-19)
151C15C$2.0BN
ordinary
dividends
per share
special
dividend
per share
total share
buyback
announced
b
Customers
Building enduring customer relationships (pages 20-25)
$807BN$674BN13M
in lendingin customer
deposits
customers served
Our people
Being a place where the best people want to work
(pages 26-29)
80$5.9BN49%
Organisational
Health Index
paid to our
people
women in senior
leadership
c
Community
Being a leader in the community (pages 30-33)
$3.5BN$177M$21.1M
taxes paid globally,
including the bank levy
and 5th largest tax
payer in Australia
d
in community
investment
e
spent with
Indigenous-
owned suppliers
Environment
Contributing to the net-zero transition (pages 34-37)
$10BN86%13
increase in sustainable
finance lending
f
reduction in scope 1 and
2 emissions from our
2021 baseline
targets in all
9 NZBA emissions
intensive sectors
a.Comparisons are to the 12 months ended 30 September 2023, unless otherwise stated.
b.Includes $1.0 billion announced in May 2024 and $1.0 billion announced in November 2024.
c.Senior Leadership includes the Executive Team, General Managers and their direct reports (excluding administrative or support roles).
d.Based on the ATO's Corporate Tax Transparency Report for the 2021-22 Income Year, published in November 2023.
e.Figure includes commercial sponsorships and foregone fee revenue.
f.Total committed exposure for lending assessed as sustainable finance in line with our Sustainable Finance Framework – movement in balance over FY24.
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OUR FOUNDATIONSOUR BUSINESSTHE VALUE WE CREATE
a
Passionate people
who make
a difference
Data-informed
insights and
decision making
Proactive risk
management
and risk culture
Strong balance
sheet
Shareholders
Delivering improved returns to shareholders (pages 16-19)
151C15C$2.0BN
ordinary
dividends
per share
special
dividend
per share
total share
buyback
announced
b
Customers
Building enduring customer relationships (pages 20-25)
$807BN$674BN13M
in lendingin customer
deposits
customers served
Our people
Being a place where the best people want to work
(pages 26-29)
80$5.9BN49%
Organisational
Health Index
paid to our
people
women in senior
leadership
c
Community
Being a leader in the community (pages 30-33)
$3.5BN$177M$21.1M
taxes paid globally,
including the bank levy
and 5th largest tax
payer in Australia
d
in community
investment
e
spent with
Indigenous-
owned suppliers
Environment
Contributing to the net-zero transition (pages 34-37)
$10BN86%13
increase in sustainable
finance lending
f
reduction in scope 1 and
2 emissions from our
2021 baseline
targets in all
9 NZBA emissions
intensive sectors
a.Comparisons are to the 12 months ended 30 September 2023, unless otherwise stated.
b.Includes $1.0 billion announced in May 2024 and $1.0 billion announced in November 2024.
c.Senior Leadership includes the Executive Team, General Managers and their direct reports (excluding administrative or support roles).
d.Based on the ATO's Corporate Tax Transparency Report for the 2021-22 Income Year, published in November 2023.
e.Figure includes commercial sponsorships and foregone fee revenue.
f.Total committed exposure for lending assessed as sustainable finance in line with our Sustainable Finance Framework – movement in balance over FY24.
6WESTPAC 2024 ANNUAL REPORT
CHAIRMAN’S
REPORT
The Board is building on
Westpac’s strong financial and risk
foundations, guiding the organisation
through its next strategic growth
phase to achieve sustainable
shareholder returns.
Dear fellow shareholders,
In my first year as Chairman, I am proud of the
progress we have made in supporting our customers
and shareholders. We are beginning to see the benefits
of several crucial years spent simplifying the bank and
strengthening our risk practices and culture.
Performance
By focusing on our core banking markets, we grew
the business while navigating a year of below trend
economic growth in Australia and New Zealand. The
economy was impacted by higher interest rates, elevated
cost of living and inflationary pressures along with
geopolitical uncertainty.
Our balance sheet remained strong and the financial
performance was steady. Profit after tax was $7.0 billion,
a decline of 3% on a statutory basis. This resulted in a
modest decline in return on tangible equity (ROTE) to 11%,
which remains well above our cost of capital.
Importantly, our capital position, funding and liquidity all
remain above regulatory minimums.
This strong capital position allowed us to announce
additional capital returns through a combination of
$2.0 billion of share buybacks, following the $1.5 billion
previously announced buyback and a $500 million special
dividend. The special dividend declared for the first time
since 2013 was 15 cents per share in the First Half of 2024.
In addition, ordinary dividends were increased by 6%
to $1.51 in fully franked dividends per share for the
year, including a final ordinary dividend of 76 cents
per share. This equates to a payout ratio of 73% of
Profit after Tax, excluding Notable Items. The combination
of dividends, both ordinary and special, and share
price accretion has led a total shareholder return for the
year of 58%.
Our elevated cost-to-income ratio to peers is intended
to be addressed through the UNITE program to create
a sustainable, cost efficient technology environment to
support long term value. The program requires significant
investment with benefits expected over the medium term.
Please see Technology on page 38 for more information.
The Board recognises the critical importance of open and
constructive dialogue with government and regulators.
We are dedicated to maintaining strong relationships to
not only meet our obligations but to support our shared
goal of maintaining the resilience and stability of the
Australian financial system. This commitment is reflected
in the positive risk outcomes and progress achieved
through Westpac’s Integrated Plan delivered under the
Customer Outcomes and Risk Excellence (CORE) program.
We believe this has been pivotal in restoring trust
and facilitating the reduction in the operational risk
capital overlay.
CEO appointment
In September, I was delighted to announce that the Board
appointed Anthony Miller as Managing Director and CEO
of Westpac, effective 16 December 2024. Anthony is an
experienced banking executive who possesses a strong
customer mindset, proven record of performance and
deep understanding of the Australian market.
Since joining Westpac in 2020, Anthony has held two
leadership positions, including leading the Westpac
Institutional Bank (WIB) and Business & Wealth segments
which he restored to growth. Prior to Westpac, he spent
four years as CEO of Australia/New Zealand at Deutsche
Bank and 16 years at Goldman Sachs in Australia and Asia.
His knowledge of Westpac and the industry, combined
with his strong performance, gives the Board confidence
in his ability to deliver our strategy. Internal succession
also supports a smooth transition to build on our
operating momentum.
I would like to thank Peter King for his significant
contribution to Westpac over the past 30 years. During
his five years as CEO, Peter has steered the organisation
through the impacts of COVID-19 and led a comprehensive
overhaul of its risk management and governance. This is a
key part of Peter’s legacy.
Peter also dramatically simplified Westpac by divesting
10 businesses to set a clear focus on growing our core
banking segments. He led important advocacy work
to protect customers from scams and made significant
improvements in our digital technology for customers and
our people. He also led the commencement of UNITE, an
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important milestone aimed at delivering better outcomes
for customers, our people and shareholders. In addition to
these achievements, Peter’s leadership has positioned the
business for future success by attracting a talented team
and fostering an engaged workforce.
Strategic progress
The Board is building on Westpac’s strong
financial
and risk foundations, guiding the organisation through
its next strategic growth phase to achieve sustainable
shareholder returns.
Our ambition is to be our customers’ number one bank
and partner through life. To achieve this, we are enhancing
our products and services through digital transformation,
introducing new tools that make banking more convenient
and accessible. As scams become more prevalent, we
are protecting and advocating for our customers by
developing industry-leading innovations in digital banking
and increasing collaboration with industry, government
and the community.
We have also significantly invested in Business &
Wealth and WIB by improving products, enhancing
digital transaction services and increasing our operational
resilience. To help improve our market position, we are
attracting top talent and fostering a strong risk culture to
provide better service to businesses.
The advent of Artificial Intelligence (AI) technologies
introduces both opportunities and challenges. We are
actively piloting several test use cases safely and
responsibly to improve our operations and service
to customers.
Engaging with our people
Board engagement with our people is essential for
effective leadership. This helps us to understand our
people’s views, address risks early and align goals to
maintain performance. One way we achieve this is by
having employees present an ‘Operational Excellence
Moment’ at the start of each Board meeting. During these
moments, employees from all areas of the organisation
share their progress on various customer initiatives,
allowing us to recognise their achievements.
The dedication, skills and perspectives of our people are
critical to delivering on our ambition. We are making
significant investments in their development and wellbeing
to ensure our people feel engaged and have opportunities
to grow. This includes several award-winning programs to
enhance workforce diversity and inclusion.
Sustainability priorities
We are deeply committed to our environmental, social
and governance (ESG) initiatives. Our sustainability
strategy is designed to create better futures for our
people, customers, communities and the environment.
This includes enhancing our hardship processes to
support customers while also improving financial literacy
and education.
Climate change is an increasingly important issue. We are
committed to supporting global efforts towards net-zero
by 2050. We are dedicated to reducing greenhouse gas
emissions and building resilience against climate change.
A key focus of our climate strategy, which is overseen
by the Board, involves supporting our customers as they
transition on this journey.
Our purpose is clearly reflected in our community
involvement through workplace giving, volunteering and
support of inspiring individuals, community organisations
and social enterprises. The Westpac Scholars Trust
exemplifies this commitment by awarding 100 new
scholarships annually to exceptional undergraduate and
postgraduate students who are passionate about driving
positive change.
Board renewal
In recent years, the Board has undergone substantial
renewal, bringing together a diverse mix of skills
and experience. We welcomed Andy Maguire in July.
With extensive global banking experience, Andy brings
valuable and timely expertise in digital transformation
and technology infrastructure as we deliver on our UNITE
program. He will stand for election at the Annual General
Meeting (AGM) with the support of the Board.
Additionally, current Non-executive Directors Nerida
Caesar, Audette Exel, Nora Scheinkestel and Margie Seale,
who have all made commendable contributions, will stand
for re-election with the Board’s support.
Looking ahead
While growth is expected to remain below trend, there
are signs of a modest economic recovery. With our strong
balance sheet and capital position, we are well-placed to
navigate the environment and deliver on our priorities.
Our people are aligned on the critical importance of
our business-led technology program, UNITE. As one of
Westpac’s largest transformation projects to date, the
Board appreciates the dedication and investment required
to complete it over the next four years. We will seek to
strike the right balance between prioritising its completion
and investing in our core operating segments to support
sustainable growth and shareholder returns.
The completion of the Integrated Plan under CORE
has set a foundation for continuous improvement in
culture, governance and risk management. As we continue
to embed these improvements, we will address other
priorities including our cost structure and investing in our
people and sustainability initiatives to ensure Westpac
remains an industry leader.
This year has brought significant achievements and
progress for Westpac. I thank our people for their
dedication, our customers for their trust and loyalty and
our shareholders for their continued support.
Yours sincerely,
Steven Gregg
CHAIRMAN,
WESTPAC
8WESTPAC 2024 ANNUAL REPORT
CEO’S REPORT
Our ambition is to be our
customers' #1 bank and partner
through life, helping them to
navigate life’s challenges and
achieve their financial goals.
Dear shareholders,
This year our disciplined performance has positioned us
well for continued growth and success. We delivered
a sound financial result while navigating a competitive
market, along with high inflation and below trend real
GDP growth.
Our focus was on supporting customers, growing in all our
key markets and disciplined margin management. While
we reported a modest increase in stress, credit quality
outcomes were better than expected. We delivered a
return on tangible equity above 11%.
Solid performance in a competitive market
Net profit of $6,990 million for full year 2024 was
down 3% on the prior year. Operating income was
little changed with solid loan growth constrained by a
modest decline in margins and lower non-interest income,
mostly reflecting the impact of businesses we sold in
2023. The rise in operating expenses reflected higher
technology costs and inflationary pressures, while the low
level of impairment charges reflected our prudent lending
practices and customer resilience across both households
and businesses.
Our balance sheet and capital position remained strong
with a Common Equity Tier 1 (CET1) capital ratio of 12.5%,
putting us in the top quartile of banks globally.
With $2.7 billion in capital above our target range
after announced buybacks, we balanced the reinvestment
of capital across simplification initiatives and lending
growth, while returning some of the surplus capital to
shareholders. The Chairman’s report outlines our capital
management decisions in more detail.
Our strategic focus on growth and generating sustainable
shareholder returns is measured by our market
position and the improvement in return on tangible
equity. Improvements in the customer experience and
productivity initiatives are aimed at improving our market
position. The simplicity and consistency of everyday
banking offers has supported above system household
deposit growth. Improvements in mortgage servicing
capabilities have been critical in stabilising our share
in home lending. In Business & Wealth, innovations in
merchant and other payments capabilities, along with
investments in people and simplification, have driven
momentum. In WIB, we are focused on deepening client
relationships and enhancing products and services.
Improving return is a medium-term proposition as our
market position strengthens and we aim to reduce our
cost base relative to peers. Further simplification is
required to improve efficiency. UNITE, our business-led
technology simplification program, which is expected to
run through to 2028, is critical to achieving this goal in
the medium term. While most of the year was dedicated
to planning, many UNITE initiatives were underway by the
end of FY24. Further detail is in Technology on page 38.
Delivering for customers
Our ambition is to be our customers' #1 bank and partner
through life, helping them to navigate life’s challenges
and achieve their financial goals. To support this, we are
innovating and investing in technology to make banking
simpler, more personalised and secure for customers.
Our Westpac banking app, which was named #1 in
Australia by Forrester for the second year in a row, is
helping customers manage their
finances through money
management tools. More than 1.2 million customers used
these tools in the last quarter.
Westpac Rewards was recognised as the best overall
loyalty program
1
, with ShopBack helping customers earn
$24 million in cashback from 4,000 retailers. We launched
Pay with Points, an Australian-first that allows credit card
holders to use their reward points for purchases.
By streamlining our home loan operations through
technology, we’ve seen substantive improvements in
processing. Our average loan decision times have
improved to less than five days and we have increased
on-day settlements by four percentage points.
Reliable and flexible payments technology is crucial for
businesses to drive customer satisfaction and growth. Last
year, we introduced EFTPOS Air and have since extended
it to more businesses. Building on this, we launched
1.
Westpac Rewards was named Best Overall Loyalty Program in Financial Services at the 2023/2024 Asia Pacific Loyalty Awards.
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EFTPOS Flex, a high-speed, cost-effective terminal that
integrates with more than 500 point-of-sale systems.
Our WIB team expanded as we brought on more
relationship managers to provide deeper support and
expertise to large businesses. This strategic growth
enhances our ability to continue offering tailored
solutions and proactive service, helping to restore our
leadership position.
Most customers prefer digital banking, but branches and
cash remain important. We have 626 branches in Australia
and will keep regional branches open until at least 2027.
We play a crucial role in cash circulation in Australia, with
an annual supply cost of $330 million. We’re working with
industry and government on a sustainable cash solution.
Risk transformation
Over the past four years, we have significantly improved
our risk culture and governance through the CORE
program. The Group is currently in the transition phase
to demonstrate the sustainability and effectiveness of
changes made following the completion of the Integrated
Plan in December 2023. CORE has helped our people to
build a focus on identifying and addressing risks early,
which is becoming part of our culture. In recognition
of our progress, the Australian Prudential Regulation
Authority (APRA) reduced the total operational risk
capital overlay from $1 billion to $500 million.
New scams protection
We’re using our scale, technology and data to both
protect customers and help them avoid scams. Over the
past two years, we’ve invested more than $100 million
in scam prevention initiatives, contributing to a 29%
reduction in reported customer scam losses this year.
With most customers opting to bank online, we
have focused on enhancing safety by developing
and implementing industry-leading scam detection and
prevention measures. Westpac Saferpay helped customers
by challenging 200,000 payments, preventing $150 million
from being transferred to potential scammers.
Westpac Verify prevented more than 400 payments from
being made to incorrect accounts each day. Additionally,
we partnered with Optus to develop Westpac SafeCall.
This feature, set to be operational by the end of the
year, seeks to provide customers with peace of mind by
allowing secure calls through their banking app.
Despite our efforts, preventing scams remains a challenge.
We will continue to advocate for our customers by
working with industry and government to make
Australia a harder target.
Workplace of choice
Our people are energised and focused on delivering for
customers. Our OHI
1
improved five points this year to
80, placing us in the global top quartile. Our leaders
are encouraging behaviours that lead to great customer
outcomes and proactive risk management.
We are attracting and retaining talent by investing in our
people’s careers, whether it be new capabilities, leadership
skills or rewarding excellence. A
flexible, safe and healthy
workplace is central to our people strategy with tailored
solutions for mental health and wellbeing developed from
this year’s wellbeing review.
We continue to strengthen diversity, equity and inclusion.
Women make up 49% of senior leadership roles
2
and
50% of the Executive team. Our Illuminate program is
supporting more than 80 aspiring female leaders.
Progressing sustainability
We have a role to play in creating positive change in
communities and acting on climate change.
Supporting customers facing hardship is a key focus of
our sustainability strategy. We provided 47,500 hardship
and disaster support packages to our customers and
businesses during the year to help them get back on track.
Approximately 19,000 accounts remained in hardship as
we entered the new financial year.
We are advancing our climate strategy on our journey
towards becoming a net-zero, climate resilient bank. With
more than 99% of our carbon footprint coming from
financed emissions associated with our lending, it is
important to support customers on their transition plans.
We have 13 targets across all nine sectors under our Net
Zero Banking Alliance (NZBA) commitment to guide our
emission reduction efforts.
Highlights this year included achieving our 2030 emission
reduction target for scope 1 and 2 emissions six years
ahead of target and sourcing the equivalent of 100% of
our electricity demand from renewables.
Thank you
On behalf of the executive team, I extend my heartfelt
thanks to our people. In my five years as CEO, they
have embraced change, making us a stronger and simpler
bank. Our approach to risk culture and risk management
has been transformed, although there is still more to
do. Simplification has been extensive. We’ve exited 10
businesses and reduced our geographic footprint. The
benefits of this are reflected in our balance sheet, which
is the strongest it has been in my 30 years at the bank, as
well as improved customer advocacy and market position.
I also extend my gratitude to Chairman Steven Gregg,
along with current and former Board Members and
Executives, for their unwavering support. I am delighted
to hand the reins to Anthony Miller, who I am confident
will be an outstanding leader and will achieve progress
towards our ambition to be our customers’ #1 bank and
partner through life.
The cornerstone of Westpac’s 207 year success has been
the support of our customers and shareholders. It has
been my pleasure to spend time with many of you and
a privilege to serve you as CEO.
Yours sincerely,
Peter King
CEO
1.OHI refers to Organisational Health Index.
2.Senior Leadership includes Executive Team, General Managers and their direct reports (excluding administrative or support roles).
10WESTPAC 2024 ANNUAL REPORT
ABOUT WESTPAC
Established in 1817, Westpac provides
banking and other financial services in
Australia and New Zealand.
As one of Australia’s largest companies and employers,
we recognise the important role we play to improve
social, environmental and economic outcomes for
Australians and New Zealanders. We are dedicated
to serving our 13 million customers, helping them to
build strong financial futures and navigate periods
of change.
We have a long-standing commitment to the community,
including a 51 year partnership with the Westpac Lifesaver
Rescue Helicopter Service. We are proud of our
involvement in establishing the Westpac and St.George
Foundations and Trusts. These separate non-profit
organisations have contributed $90 million in the past
decade to create meaningful change in people’s lives.
We are working towards becoming a net-zero, climate
resilient bank. Our 2024 Climate Report details our
efforts to reduce our emissions, assist customers in their
transition and advocate for positive change.
We are proud to contribute to the nation’s prosperity
through $5.9 billion in salaries, $5.7 billion in shareholder
dividends, $3.5 billion in cash taxes and levies and
$4.4 billion spent with suppliers inside Australia
1
.
As we evolve, we draw inspiration from our customers,
their needs and our purpose. Our values guide our actions
to create better futures.
Our values
•Helpful – Passionate about providing a great
customer experience
•Ethical – Trusted to do the right thing
•Leading Change – Determined to make it better
and be better
•Performing – Accountable to get it done
•Simple – Inspired to keep it simple and easy
Market share
Australia
Household deposits
aa
21%
Mortgages
a
21%
Business lending
a
16%
New Zealand
Consumer lending
bb
18%
Deposits
b
17%
Business lending
b
16%
a.APRA Banking Statistics, September 2024.
b.RBNZ, September 2024.
1.Refer to the 2024 Sustainability Index and Datasheet for details.
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Our four operating segments
ConsumerBusiness & Wealth
Westpac Institutional
Bank (WIB)Westpac New Zealand
Helping more Australians
into their home, save for
the future and manage
their money with a range
of banking products under
the brands of Westpac,
St.George, BankSA and
Bank of Melbourne.
Serving the needs
of small to
medium businesses
and commercial and
agribusiness customers
across Australia. This
segment also includes
Private Wealth and BT
Financial Group, along
with our operations in Fiji
and Papua New Guinea.
Delivering a broad range
of financial services to
corporate, institutional
and government
customers operating in,
and with connections
to, Australia and
New Zealand.
Providing banking and
wealth services to
consumer, business and
institutional customers
in New Zealand.
Our foundations
Passionate people
who make
a difference
Data-informed
insights and
decisioning
Proactive risk
management and
risk culture
Strong
balance
sheet
The value we create
ShareholdersCustomersPeopleCommunityEnvironment
Delivering
sustainable returns
to more than
585,000
shareholders
Creating better
futures for the
13 million customers
we serve
Helping over 35,000
people in our
workforce to reach
their potential
Investing to create
stronger, more
inclusive
communities
Supporting global
efforts towards
net-zero by 2050
Pages 16-19Pages 20-25Pages 26-29Pages 30-33Pages 34-37
12WESTPAC 2024 ANNUAL REPORT
OUR STRATEGY
Our strategy for growth and return is guided by our purpose and supports our
ambition to be our customers' #1 bank and partner through life.
Built on four pillars, it focuses on developing strong customer relationships to drive growth in target markets and
improve returns. In turn, this helps us to create positive change and better futures by using our influence to support
communities, the economy and the environment.
CustomerEasyExpertAdvocate
Customers are at the
heart of what we do.
We value the entire
customer relationship
and are working hard
to anticipate their
needs, including through
delivering personalised
experiences, offers and
insights. Transaction
accounts and payments
are at the centre of
our customer relationships,
enabling us to build early
and deeper connections.
We’re making banking
easier, more intuitive and
digital. We’re simplifying
our bank – solving
pain points, removing
manual processes, making
banking safer and
automating workflows.
We’re aiming to
create a seamless
customer experience
across our channels.
We deliver expert
solutions and tools to
guide customers in
making better decisions.
We help them manage
their money every day as
well as plan ahead by
sharing our insights. Our
people work alongside
customers to tackle some
of the issues, including
managing the cost of
living and transitioning
to net-zero.
We advocate for
positive change and
speak up for what’s
right. We’re advocating
for financial inclusion,
greater accountability for
social media platforms
promoting scams, on
climate and safer
digital services across
our business, industry
and communities.
Measures
Return on tangible equity (ROTE)Market position
Sustainability
Aligned with our purpose and the pillars of our strategy, our sustainability approach is shaped by key material topics
and guided by the UN Sustainable Development Goals. Detailed information about our sustainability strategy, including
metrics from our 2024 Sustainability Index and Datasheet, is available on our website.
Following the Global Reporting Initiative (GRI) Universal Standards, we annually identify the most significant
sustainability topics to guide our strategy and focus on areas with the greatest impact on our stakeholders. The process
and details of these material topics are also outlined on our website.
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
13
A STRATEGY FOR GROWTH AND RETURN: PROGRESS
The strength of our customer relationships is crucial to our long term success. By enhancing products and services, we
are creating exceptional banking experiences that help to drive growth. Combined with initiatives that intend to reduce
our costs relative to peers, we aim to improve our market position and ROTE, the key measures of the strategy.
Shareholders
Delivering improved returns to shareholders
See
pages
16-19
There was a modest decline in ROTE however we grew our businesses and
maintained a strong financial position. This was reflected in higher fully franked
ordinary dividends along with $2.3 billion of capital returned to shareholders
comprising a $0.5 billion in special dividend and the purchase of $1.8 billion of
shares
a
through an on market buyback.
a.As at 30 September 2024.
Customers
Building enduring customer relationships
See
pages
20-25
We have enhanced customer experiences and protections against scams through
digital innovation. This has helped make banking easier, safer and more
personalised for customers. Consistent and simple everyday banking offers
resulted in higher deposits, while improved processing times stabilised our share
of home loans. New convenient payments and merchant technology saw us
attract new business customers in Australia and New Zealand. Business lending
grew above system.
People
Being a place where the best people want to work
See
pages
26-29
Our Organisational Health Index (OHI) improved by five points to 80, placing us
in the top quartile globally. We attract and retain talented people by investing in
training and career development while supporting wellbeing. We are a proudly
inclusive employer, committed to fostering a safe and inclusive workplace.
Community
Being a leader in the community
See
pages
30-33
Our success is intrinsically linked with the success of the economy and
communities. We have a proud legacy of community support through workplace
giving, volunteering, community initiatives and the separate Westpac Foundation,
St.George Foundation
a
and Trusts. We helped to keep cash circulating in society
and made progress against our objectives for advancing human rights and
supporting reconciliation.
a.Includes BankSA Foundation and Bank of Melbourne Foundation.
Environment
Contributing to the net-zero transition
See
pages
34-37
We made progress on our climate strategy, shifting our focus to supporting
customers with their transition plans. Our Scope 1 and 2 emissions have reduced
by 86% from our 2021 baseline, achieving our 2030 target
a
. With 13 targets
across the 9 most emission-intensive sectors under the NZBA framework, we are
engaging our customers to help them move towards lower emission practices.
a.Refer to the 2024 Sustainability Index and Datasheet for more information.
14WESTPAC 2024 ANNUAL REPORT
OUR OPERATING
ENVIRONMENT
1
Australian economic growth was subdued
The Australian economy has experienced an extended period of below trend
growth, particularly in the private sector. Government spending has provided
some support, alongside a tight labour market and elevated terms of trade.
However, strong population growth has masked the weakest period of per capita
growth in decades. Australian economic growth is projected to recover from 1.5%
this year to 2.5% in 2025.
Households absorbed squeeze to incomes
Real household incomes have faced the negative shocks of high interest rates,
cost of living pressures and higher taxes. This has translated into pessimism
and weaker consumption. The impact has been uneven with younger and lower
incomes households disproportionately affected. Mortgage stress, while rising
during the year, remains low. Some relief has arrived in the form of declining
inflation and tax cuts. The undersupply of housing and continued house price
growth has resulted in a recovery in housing credit growth from an annualised
trough below 4% to more than 5% through the year. System credit growth of
approximately 5% is expected for 2025.
Strong business growth exceeded expectations
Australian businesses have navigated challenging operating conditions of weaker
demand and cost pressures. Profitability has eased to levels consistent with
the decade prior to COVID-19. Smaller businesses, particularly those exposed to
consumer discretionary sectors, experienced a more difficult trading environment.
Strong financial positions, high capacity use and population growth have boosted
credit demand, especially in infrastructure, health, education and technology
investments. While overall business investment has slowed, credit demand is
expected to grow by approximately 6% in 2025.
The New Zealand economy weakened
New Zealand’s economy stagnated due to significant monetary tightening aimed
at combating inflationary pressures. The Reserve Bank of New Zealand began
lowering interest rates in August 2024 in response to weaker economic activity,
rising unemployment and receding inflation. The easing of financial conditions is
expected to result in improved economic activity into 2025.
Global economy on track for a soft landing
Global economic prospects have improved with inflation, which is under control
across major developed economies, declining from more than 8% in 2022
to below 3% by mid-2024. This allowed G7 central banks, except Japan, to
ease monetary policy. The downside risk posed by weakness of the Chinese
economy is expected to be mitigated by the announcement of significant stimulus
measures. Notwithstanding the structural challenges that China will be required
to address in the medium term, its activity will be supported in the short term.
Global economic growth is expected to exceed 3% in 2025.
1.
All references are to calendar years unless otherwise stated.
STRATEGIC
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SHAREHOLDER
INFORMATION
15
We regularly review our operating environment to identify changes, emerging risks and opportunities. This helps us
to evolve our strategy and approach to current and future key risks. Below are some of the factors
1
that could affect
Westpac’s ability to create value in the short, medium or long term. Our major risk categories, mitigation strategies and
areas of focus are detailed in Risk Management (page 40). For further information, see 2024 Risk Factors.
Rising threat: Scams and fraud become more sophisticated
Fraud and scams are increasing with more sophisticated methods targeting a
wider range of individuals and businesses. Over the past two years, Westpac
invested more than $100 million in new prevention and detection measures
to support customers, such as Westpac SaferPay and Westpac Verify. We
are working closely with government and industry to further strengthen our
defences and make Australia a harder target for scammers.
See Operational Risk, Cyber Risk and
Creating value for customers (page 20)
Supporting financial stability: Prudent lending and customer assistance
Maintaining prudent lending practices and policies are critical to safeguarding
our financial stability and profitability. Our Customer and Business Assist teams
in Australia provided 47,500 hardship and disaster support packages. Factors
including cost of living pressures and higher interest rates contributed to this
increase. We continue to provide a range of support to help customers get back
on track.
See Credit Risk and Creating value for customers (page 20)
Rising to the challenge: Expectations in addressing climate change
Climate change continues to have significant global impacts. Banks play an
important role in supporting the transition and helping customers become more
climate resilient. New mandatory climate-related reporting requirements will
require companies to disclose climate-related risks, opportunities and emissions
across their value chain. We are strengthening our approach to managing
climate change, as outlined in our 2024 Climate Report.
See Credit Risk, Reputational and Sustainability Risk and
Creating value for the environment (page 34)
Navigating competition: The importance of strategic customer focus
Nearly one hundred banks, including many foreign ones, now operate in
Australia. Westpac is one of four major banks and has been serving customers
for more than 200 years. The landscape is evolving and competition has
intensified, particularly in mortgages. We are investing in technology and our
people, leveraging the advantages and scale that come with being a major bank,
to deliver great service and benefits to our customers.
See Strategic Risk and Creating value for customers (page 20)
Protecting reputation: Strong risk management for better outcomes
Managing and responding to expectations from regulators and the community
requires strong risk management. Poor conduct, negative customer experience,
or failing to adequately respond to risks such as scams can impact our integrity
and the trust of our stakeholders. Through the Integrated Plan of the CORE
Program, we have strengthened our risk governance, accountability and risk
culture to drive better customer outcomes.
See Reputational and Sustainability Risk and
Compliance and Conduct Risk (page 42)
1.Not exhaustive. See Risk Management (page 40) for full table of risk categories.
16WESTPAC 2024 ANNUAL REPORT
CREATING
VALUE FOR
SHAREHOLDERS
We are committed to
delivering long term value
for shareholders by focusing
on providing great customer
service, maintaining a strong
balance sheet and delivering
sustainable returns above our
cost of capital.
Key highlights
151c
FULL YEAR
ORDINARY DIVIDENDS
58%
TOTAL
SHAREHOLDER RETURN
15c
SPECIAL DIVIDEND
$2.0BN
TOTAL SHARE
BUYBACK ANNOUNCED
1
1.$1.0 billion announced in May 2024 and $1.0 billion announced in
November 2024.
STRATEGIC
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SHAREHOLDER
INFORMATION
17
Solid financial result
1
Our financial performance demonstrates the continued focus on the delivery
of sustainable returns for shareholders while growing our businesses and
maintaining a strong financial position.
$7.0BN
Net profit,
down 3% on FY23
1.93%
Net interest margin,
down 2bps on FY23
7bps
Impairment charges to average
loans, down 2bps on FY23
Net profit was delivered through disciplined management
of net interest margins and growth across our businesses.
Pre-provision profit declined by 3% on the prior year.
Excluding Notable Items, pre-provision profit was down
4% with the 1% increase in operating income more than
offset by a 7% increase in operating expenses.
Operating income reflected solid loan growth constrained
by a modest decline in the net interest margin. The
increase in operating expenses was driven by higher
software amortisation and technology costs along with
the impact of closing RAMS to new business.
Net interest margin (NIM)
The modest contraction in NIM reflected competition
for mortgages and customers preferencing higher yield
deposits which more than offset the benefits from higher
earnings on capital and hedged deposits, in addition to a
larger contribution from Treasury.
Impairment charges and credit quality
The low level of impairment charges reflects our prudent
lending practices and customer resilience across both
households and businesses.
The modest deterioration in credit quality metrics was due
to the impacts of the decline in real household disposable
income and weaker demand and cost pressures on
business customers. We remain appropriately provisioned
with credit impairment provisions of $5,096 million,
$1.5 billion above the expected losses of our base case
economic scenario.
$m
Full Year
2024
Full Year
2023
% Mov't
2024-2023
Net operating income21,58821,645-
Operating expenses(10,944)(10,692)2
Pre-provision profit10,64410,953(3)
Net profit6,9907,195(3)
For more see Performance Review (page 104).
Solid growth in our core markets
Loans increased by 4% reflecting growth across all segments: Consumer;
Business & Wealth; WIB; and New Zealand.
Growth in Australian housing loans, excluding RAMS, of 5%, or 1.2x APRA
housing system, mainly in owner occupied mortgages was supported by
faster and more consistent decision times and enhancements to our single
mortgage platform. Total Australian housing loans growth was 4%. See
Faster lending decisions (page 23) for more information.
Australian business lending was up 8%. This reflected strong loan growth
in WIB as we deepened relationships with existing customers and selective
growth in lending to international customers. Growth in the Business
segment was well
diversified with strong growth in our target industries of
agriculture, health and professional services.
Customer deposits grew by 5% with strong growth in the Consumer and WIB
segments. Household deposits growth of 1.1x APRA system is testament to
the health of our consumer franchise.
LOANS ($BN)
739.6
773.3
806.8
Sep-22Sep-23Sep-24
CUSTOMER DEPOSITS ($BN)
612.8
641.0
673.6
Sep-22Sep-23Sep-24
1.Unless otherwise stated, all figures relate to the year ended 30 September 2024 with comparative period the year ended 30 September 2023.
Certain amounts, measures and ratios are not defined by Australian Accounting Standards (AAS). These non-AAS measures are identified and
described in the Reading this report . Notable Items are discussed further on page 106.
18WESTPAC 2024 ANNUAL REPORT
CREATING VALUE FOR SHAREHOLDERS
Strong financial position
We maintained a strong financial position with capital, funding and liquidity all
above regulatory minimums.
Capital
CET1 capital ratio of 12.5% compares to the target
operating range of 11.0% to 11.5% in normal operating
conditions equating to $4.3 billion of capital above the
top end of the target range.
The CET1 capital ratio increased slightly. Solid organic
capital generation and reductions in Risk Weighted
Assets (RWA), in addition to the return of $500 million
in operational risk capital overlay, were offset by the
payment of dividends and the on market share buyback.
CET1 CAPITAL RATIO
11.3
12.4
12.5
17.6
18.7
18.3
APRA basisInternationally comparable
Sep-22Sep-23Sep-24
Funding and liquidity
The September quarterly average liquidity coverage ratio (LCR) and the net
stable funding ratio (NSFR) were both above regulatory minimums.
The deposit to loan ratio increased slightly, with deposit growth broadly
funding loan growth during the year.
The Group raised $41.9 billion of new long term wholesale funding.
83.5%
Deposit to loan ratio,
up 61bps on Sep-23
Simplifying banking
To deliver long term value for shareholders, we are focused on providing great
customer service.
Better outcomes for customers and our people
We made progress on initiatives to improve customer
experience. Highlights during the year included giving
businesses new and more flexible payments technology,
improving the Westpac banking app and creating
Australian-first scam protections for customers.
Our people are key to our success and we are investing in
their capability.
We mobilised UNITE, our business-led, technology-
enabled transformation, that is laying the foundations
for our future by aiming to simplify our processes
and technology.
For more on our progress, refer to:
Creating value for customers (page 20)
Creating value for our people (page 26)
Technology (page 38)
Substantially improving risk management capability
Over the past four years we delivered a program of
risk culture and risk management uplift. The CORE
Integrated Plan activities were completed in December
2023 and Promontory assessed the program as complete
in May 2024.
We are now completing a transition phase to continue to
embed the improvements we've made for the long term.
Subsequently, APRA reduced the $1.0 billion operational
risk capital overlay by $500 million in July 2024.
Refer to Risk Management (page 40) for more.
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SHAREHOLDER
INFORMATION
19
Improved shareholder returns
To create value for our 585,000 shareholders, we aim to deliver sustainable
returns above our cost of capital.
Shareholder returns
The decline in net profit resulted in a 38 basis points
decrease in ROTE to 11.0% and earnings per ordinary
share were 201 cents, down 2%.
Over the year our share price rose 50%, contributing to a
58% increase in total shareholder return (TSR). The S&P
ASX All Ordinaries accumulation index rose 22% over the
same period.
Ordinary dividends
This year, shareholders will receive $5.2 billion through
fully franked ordinary dividends. Ordinary dividends were
up 9 cents per share, or 6%.
This year’s payout ratio is 75% on a net profit basis and
73% excluding Notable Items.
ROTE (%)
9.2
11.4
11.0
FY22FY23FY24
ORDINARY DIVIDEND PER ORDINARY SHARE (CENTS)
125
142
151
61
70
75
64
72
76
InterimFinal
FY22FY23FY24
Returning surplus capital to shareholders
We bought back $1.8 billion of shares on market and we returned $0.5 billion
through a special dividend.
With $4.3 billion of capital above the target operating range and confidence
in the medium-term economic outlook, the on market share buyback was
increased by a further $1.0 billion in November 2024.
$2.0bn total share
buybacks announced
1
15c special dividend
For more on shareholder value, refer to:
Chairman’s report (page 6)
CEO’s report (page 8)
1.$1.0 billion announced in May 2024 and $1.0 billion announced in November 2024.
20WESTPAC 2024 ANNUAL REPORT
CREATING
VALUE FOR
CUSTOMERS
Delivering great customer
service motivates our people
and brings our purpose to life.
Through better products and
services, technology and fraud
and scams protection, we're
supporting customers through
life's challenges to help them
realise their
financial goals.
Key highlights
13M
CUSTOMERS
#
1
BANKING APP
1
21%
AUSTRALIAN MORTGAGE
MARKET SHARE
2
+4
CONSUMER NPS
3
RANKED THIRD AMONG
MAJOR PEERS
1.The Forrester Digital Experience Review: Australian Mobile Banking
Apps, Q3 2024.
2.APRA Banking Statistics, September 2024.
3.Source: Fifth Dimension for September 2024, 6MR. MFI customers.
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INFORMATION
21
Number one banking app
Our banking app won awards for its simple design
and rich functionality, including #1 mobile app by
Forrester
1
. As one of our customers' preferred banking
channels, we have continued to invest in its capabilities
to make it simpler, secure and more personalised,
directly contributing to long term customer satisfaction
and loyalty.
Our banking app offers essential everyday banking and
money management tools. More than 1 million customers
2
are using money management features such as Net
Worth view and Financial Wellbeing to help them budget,
manage their finances and understand their financial
position. The Savings Finder automatically calculates a
customer’s annual spending on subscriptions and regular
bills, helping to identify those that could be reduced or
cancelled. Other features include Smart Search and a
Cards Hub where customers can manage their debit and
credit cards.
Customers can easily switch between personal and
business banking within the app to manage their finances
in one place.
Westpac SaferPay and Westpac SafeCall are new
Australian-first innovations we designed to help customers
avoid scams. To further enhance digital card security,
dynamic CVC refreshes every 24 hours, reducing fraud and
unauthorised access.
See
Protecting customers and preventing crime
(page 25) for more information
Building financial literacy
We are committed to supporting our customers and the
broader community in building financial confidence. This
helps customers to manage their finances more effectively
which builds trust and ultimately drives the sustained
growth of our business.
In addition to the money management features, we
introduced a Pocket Money and Chores feature in our
banking app. Parents or guardians can use this to set up
regular or one-off Pocket Money payments to a child's
account to manage chores, develop their money skills and
encourage saving. This helps to teach children the value
of money and how to spend and save responsibly. We
also saw positive momentum in use of the savings account
features, in particular the safety features available within
the Youth Debit card.
We launched a new Property Dashboard in our digital
banking channels, offering customers a snapshot of their
property portfolio linked to Westpac loans. This provides
valuable insights such as estimated property values
and home equity to help customers understand their
financial position.
To further build financial confidence and wellbeing, we
offer a range of resources to customers, employees and
the community. Through Westpac Master Your Money
and the Finlit program, designed for younger adults,
we provide interactive webinars, online learning modules,
articles and tools.
In New Zealand, more than 12,000 people participated
in Managing Your Money workshops, alongside targeted
seminars for businesses and corporate customers,
including through our partnership with key Chambers of
Commerce across the country.
1.
The Forrester Digital Experience Review: Australian Mobile Banking Apps, Q3 2024.
2.In the 90 days to 30 September 2024.
WESTPAC SAFERPAY:
MULTI-LAYERED PROTECTION
After researching investment opportunities, a
Queensland couple transferred $350,000 to an account
to invest in government bonds. The transfer, made
on a Friday afternoon, was flagged by our SaferPay
technology as a high scam risk.
Fortunately, SaferPay placed a 24-hour hold on the
transfer, protecting the couple’s funds. After speaking
with the couple, our Fraud and Scams Operations Team
was able to cancel the transaction for the customer.
22WESTPAC 2024 ANNUAL REPORT
CREATING VALUE FOR CUSTOMERS
Listening to our customers
We actively gather feedback from customers and
employees to improve our services. Insights from Net
Promoter Score (NPS) and complaints help us to create
better solutions, measure improvements and promote a
customer-first culture.
We improved in Consumer NPS to +4 and in Business
NPS to -3. We have strengthened our leadership in
Branch NPS and have seen positive progress in Business
Lending, though our overall scores that reflect broader
customer experience are not where we'd like them to be.
For our institutional customers, we aim to be their
bank of choice and cater for all their banking needs.
Customers who consider us to be their main financial
institution more than doubled over the year, improving
our position from #3 to #2.
Resolving complaints
Complaints are a second chance for us to make
things right for our customers and apologise for any
inconvenience. Through our customer-first approach, we
aim to resolve each customer complaint objectively,
fairly,
efficiently and with empathy. We are improving
how we manage complaints by enhancing banker
training, increasing responsiveness and improving
classification and escalation processes. Our average
resolution time is stable, with 93% resolved without need
for escalation.
Our Customer Advocate advises the complaints
team, recommends policy changes and supports
vulnerable customers.
Listening to feedback helps us to continuously improve
our products and services. For example, we improved the
digital experience for customers reordering cards, which
has led to a reduction in related complaints.
Maintaining community presence
While customer preferences are increasingly digital,
we have 626 branches across Australia including 111
co-located branches which support multiple brands.
Our customers have access to the largest fee-free
ATM network in the country and our agreement
with Australia Post’s Bank@Post service provides an
additional 3,400 points of presence for customers to
access our banking services.
Our Virtual Banking team provides additional support
through secure phone, video and chat services. We
recognise there is more work to do to support regional
communities across Australia. We listened to customer
and community feedback to better understand the
unique challenges faced by many customers who
live outside major cities. We have since pledged
to keep regional branches open until at least 2027,
providing greater certainty to our customers, people
and communities.
The opening of our 100th co-located branch in Menai,
New South Wales
Promoting
financial inclusion
We are focused on delivering products and services that
are accessible to customers with disabilities, illnesses,
injuries or who are neurodivergent. Our Access and
Inclusion Plan guides our efforts, such as creating more
inclusive and accessible workplaces, branches, services
and collateral. We have also improved our digital services.
Backing female entrepreneurs: We helped more than
726 women to start or grow their business and settled
$274 million under our $500 million commitment
1
to
support more female-led businesses. We partnered with
The University of New South Wales Founders’ 10X
Accelerator Program, providing funding for three $20,000
scholarships designed to support women to balance work
and personal commitments. New banker training helps our
people better understand the barriers faced by female
business owners.
Supporting Indigenous customers: Westpac supports
Indigenous customers across multiple channels including
a dedicated Indigenous Call Centre where translators are
available to support Indigenous languages. On-the-ground
teams in remote areas of every state and territory work
in partnership with community groups to help empower
Indigenous customers with their banking needs.
Putting home ownership within reach: Housing
affordability and rental supply challenges have made
home ownership less accessible. We are providing
ways for people to fast-track their home ownership
ambitions and our lenders are available to help customers
choose the best level of support. For 23 professional
occupations, including nurses and midwives, we offer
Lenders Mortgage Insurance waivers. This benefited
13,300 customers while 4,000 customers used our Family
Security Guarantee. We have extended the Housing
Australia Home Guarantee Scheme to all our brands,
settling $5.2 billion in loans under the Scheme to help
customers with a smaller deposit.
Westpac New Zealand pledged NZ$1 billion in lending
over the next three years to help more people secure
homes through variety of social and affordable housing
options, such as shared equity and leasehold projects,
through loans to scheme providers and home buyers.
1.
As of September 2024, we have helped 726 women since June 2023. $500 million has been ring fenced for lending to women in business,
however the Business Loans for Start Up and Business Loans for Scale Up are available to people of any gender.
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23
Supporting customers
How we support customers facing financial difficulties is
a true reflection of our values. We understand that tough
times can impact anyone, whether due to higher cost of
living, illness, relationship breakdowns, reduced business
cash flow or natural disasters.
This is why we have more than 400 skilled professionals
in our Customer and Business Assist teams to provide
a range of options to help customers, such as deferring
loan repayments. Over the year, we provided 47,500
hardship and disaster support packages to customers and
businesses to help them get back on track. By the end of
the year, 19,000 accounts remained in hardship.
Based on feedback, we also found other ways to support
our customers. In an Australian-first, we gave customers
the flexibility and freedom to use their Altitude Rewards
points on everyday items
1
. Additional in-app savings
prompts helped 193,000 customers earn an average of
$324 in additional total interest
2
. Through the Westpac
Rewards’ ShopBack program, we helped customers earn
more than $24 million in cashback from purchases at
4,000 retailers. Westpac Rewards was recognised as the
Best Overall Loyalty Program in financial services
3
.
We participated in ASIC’s Better Banking for Indigenous
Consumers Project and supported our customers
receiving ABSTUDY and those in project postcodes. This
included refunding account keeping, debit interest and
overdrawn fees dating back to July 2019 for eligible
customers. We also expanded access to our basic
bank account to customers who receive an Australian
Government benefit payment that makes them eligible
to hold a concession or healthcare card. Our basic bank
account has no account keeping fees, overdrawn fees or
debit interest.
Faster lending decisions
We have made the home loan experience more
efficient for customers by optimising our operations and
technology. This has reduced average home loan decision
times to approximately five days and increased on-day
settlements to an industry leading level. This has led
to a significant 41-point increase in Broker NPS
4
and
improved sentiment over the past two years. Additionally,
we are piloting a new AI-driven method to further
streamline assessments.
HOME LOAN APPLICATION TIME TO DECISION (DAYS)
6.3
5.9
5.2
8.1
7.1
4.8
ProprietaryBroker
Sep-22Sep-23Sep-24
In business lending, more than $1 billion in applications
have been approved using our simplified pathway since its
launch in April last year. This lets businesses borrow up to
$3 million and gives customers quick access to their most
recent financial information from their business activity
statements. Business loan processing times take 9 days
and this should improve as we continue to digitise the
entire process over the next few years.
1.
Pay with Points is a way of redeeming Altitude Reward points for eligible purchases under the Altitude Reward Terms & Conditions.
2.From January to September 2024.
3.Westpac Rewards received the award for Best Overall Loyalty Program in Financial Services at the 2023/2024 Asia Pacific Loyalty Awards.
4.Internal Broker NPS survey Sep24 - spot brand NPS for combined brands. Brokers that have settled a loan with Westpac Group in the previous
6 months invited to participate (10,459 invitations sent, 1,399 responses / 13% response rate).
BEST OVERALL
LOYALTY
PROGRAM
111
CO-LOCATED BRANCHES
SUPPORTING MULTIPLE BRANDS
#1
$A BOND LEAGUE TABLE
BUILDING SUSTAINABLE FUTURES
In response to growing customer demand for more energy efficient and climate
resilient homes, we launched the Sustainable Upgrades home and investor
loans product, becoming the first bank to be backed by the Clean Energy
Finance Corporation.
This loan offers existing customers a reduced interest rate on loans up to
$50,000 to make upgrades that improve their property's energy efficiency and
resilience to natural disasters.
24WESTPAC 2024 ANNUAL REPORT
CREATING VALUE FOR CUSTOMERS
Driving efficiency for businesses
Small businesses make a significant contribution to our
economy, representing 97% of all Australian businesses
1
.
We offer a range of working capital solutions to give
customers confidence, whether they’re starting up or
growing their business. In response to customer feedback,
we established a dedicated Bank Guarantee Specialist
Team that allows customers to obtain a bank guarantee
in less than 24 hours.
We have continuously enhanced our merchant technology
for businesses since launching Australia’s first EFTPOS
machine 40 years ago. Our latest high-speed, cost-
effective merchant terminal, EFTPOS Flex integrates with
more than 550 Point of Sale systems. We offered EFTPOS
Air to more customers, allowing businesses to accept
instant payments through their phone or tablet.
We are working to make it safer for businesses to manage
their recurring payments through real-time control over
payment agreements, reducing the risk of errors and
fraud. We extended this benefit to our commercial and
institutional customers. The acquisition of HealthPoint,
which offers instant e-health claiming to small business
and commercial customers, recognises the growth of the
healthcare sector as the population ages.
To make employee spending easier and more secure for
large businesses, new Dynamic Virtual Cards can be issued
to their people on the go. This removes the need to
issue physical cards or cash while enabling control and
transparency over spending.
To support our ambition to restore our institutional bank
to the number one position, we have employed more
bankers to provide deeper support to new and existing
customers. Our financial markets franchise continues
to perform, with a leading position in fixed income
markets
2
and #1 rank on the $A bond league table
3
.
We were joint lead manager on the Australian Office
of Financial Management’s (AOFM) first green bond
issuance. Please see Collaborating for impact (page 37)
for more information.
Combating
financial abuse
We stand against financial abuse and our specialist
teams are trained to support customers experiencing
vulnerability, including domestic and family violence,
financial abuse and problem gambling. We continue to
embed Safety by Design principles into our product
design and provided customer safety training to
an additional 1,200 employees. See Respecting and
advancing human rights (page 32) for more information.
We enhanced our protection measures to include:
•Education and Awareness: Westpac partnered with
Legal Aid NSW and OurWatch to enhance the
education on the Westpac website relating to financial
abuse, elder financial abuse and gambling.
•Gambling Block: Customers can apply an instant
block on certain gambling-related transactions through
Westpac’s mobile or online banking.
•Parental controls and child education: To help young
people learn how to manage their money safely
- while giving parents the opportunity to act as
banking ‘safety nets’ - we’ve added push notifications,
restrictions on online payments and daily payment
limits of $50 for under 14 years olds to our Choice
Youth everyday account and Bump Savings account.
•Power of attorney account monitoring: While the
vast majority of attorneys act in the best interests of
account holders, sadly this is not always the case. We
have added an extra layer of transaction monitoring
to flag unusual transactions from these accounts. This
allows our specialist teams to step in and support
customers and their attorneys regarding their rights
and obligations.
•Updated Terms & Conditions for savings, transaction,
personal loan and credit card products highlight to
customers that we have a zero-tolerance for products
being misused for financial abuse.
1.
Source: Australian Bureau of Statistics, describing small business as those with less than 20 employees.
2.#1 market share in bonds and semis, #1 market share in investment grade corporate bonds, =#1 market share in interest rate swaps, #1 market
share in OIS, #1 market share in asset-backed bonds – 2023 Peter Lee Associates Fixed Income Survey, ranking against all banks.
3.Bloomberg Australian Bonds League table (excluding self-led issuance), YTD as at 27 September 2024.
CUSTOMER SPOTLIGHT:
SLOANEBUILT
Sloanebuilt, based in Western Sydney, has been a leading manufacturer of heavy
vehicle trailers for more than three decades. CEO Fred Marano attributes the
company’s success to two core values: producing high-quality products and
delivering first-class customer service.
After visiting Sloanebuilt's operations, Anthony Miller, Chief Executive of
Business & Wealth (pictured), said: “It’s a real privilege for Westpac to
support a business like Sloanebuilt. They are a significant local employer in
Western Sydney, committed to training and hiring many apprentices. Their
dedication to employees and contribution to Australia’s manufacturing industry
is truly commendable.”
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Protecting customers and
preventing crime
We play a critical role in safeguarding customers from
fraud, scams, cyber threats and financial crime. We have
invested more than $100 million in scam prevention
initiatives over the past two years, contributing to a 29%
reduction in reported customer scam losses this year.
Our fraud detection systems screen approximately
30 million banking interactions daily, using a combination
of Artificial Intelligence (AI) and human intelligence to
spot unusual activity and issue 24/7 customer alerts. We
block payments to reported scam and fraud accounts and
work around-the-clock to detect and take down phishing
websites and threats that target customers.
WESTPAC VERIFY
Alerts customers when there is a
potential account name mismatch
when they’re adding a new payee
using a BSB and account number
WESTPAC SAFERPAY
Presents customers with a series
of questions in instances where a
payment is considered a high risk
of being a scam
WESTPAC SAFECALL
Will provide customers with calls
via the banking app that are
Westpac branded, verified by
Optus and show a reason for
the call
Strengthening customer awareness
As we intensify our
efforts to safeguard customers, we focus on keeping customers informed and equipped to protect
themselves. Our Cyber Response Playbook provides current scam information and videos. The Westpac banking app
includes advanced security features such as Security Wellbeing Check, Westpac Protect SMS code and biometric
authentication. We issue digital and social alerts on new scams and raise awareness through our Scam Spot video series
and actively participate in Scams Awareness Week.
Supporting
affected customers
Fraud and scams can have devastating effects on customers and businesses. Our Online Banking Security Guarantee
1
and Fraud Money Back Guarantee
1
provide peace of mind in certain situations. Whilst we make every effort to retrieve
funds sent to scams, this is unfortunately not always possible. We work closely with affected customers and offer free
support through our partnership with IDCARE, Australia and New Zealand’s National Identity & Cyber Support Service
and a free trial of McAfee for enhanced online protection.
Advocating for change
Combating scams and fraud requires a combined, multi-stakeholder approach. We liaise with industry, regulators,
government and law enforcement to identify threats to make Australia a harder target for scammers. Recognising that a
significant number of scams are found on social media platforms, we are also advocating for the operators of these
platforms to be held accountable through stricter regulation.
1.
Refer to Online Banking Terms and Conditions and relevant Card Terms and Conditions.
BANKER SAVES CUSTOMER FROM $1.8M LOSS
Marlena Karbowski (pictured) assisted a customer who wanted to make a
significant funds transfer to buy a property. As a Personal Banking Specialist of
19 years, she took care in listening to the customer's request.
During their conversation, she spotted a number of red flags. Marlena acted
on her instincts and worked with her Bank Manager to stop $1.8 million being
transferred to a romance scam. She then helped the customer report it to
the Police.
Marlena was recognised in our Scam and Fraud Busters employee
recognition awards.
26WESTPAC 2024 ANNUAL REPORT
CREATING
VALUE FOR
OUR PEOPLE
Our people are key to
our success.
We are investing in their
careers and building an
inclusive and diverse
workplace, with strong
leadership and
opportunities to grow.
Key highlights
80
ORGANISATIONAL
HEALTH INDEX
49%
WOMEN IN
SENIOR LEADERSHIP
1
$5.9BN
PAID IN SALARIES
35,240
EMPLOYEES
2
1.Senior Leadership includes Executive Team, General Managers and
their direct reports (excluding administrative or support roles).
2.Refers to Full-Time Equivalent as at 30 September 2024.
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~3,000
Leaders participated in
Leader Forums
11,200
People in Employee
Advocacy Groups
138
New graduates joined Westpac
Embedding cultural change
We have made significant progress in improving our
culture and the way we manage risk. This progress is
reflected in both the final independent report of our CORE
program and positive engagement results from our annual
employee survey, Voice+.
As role models, our leaders continue to play a critical
role in embedding positive change. Our senior leaders are
encouraging behaviours that focus on:
•consistent, high-quality customer experiences;
•excellent performance; and
•confidently managing risks.
At our Leader Forums, our Executives engaged
approximately 3,000 leaders to share views on practical
ways to drive positive customer and risk outcomes. Our
third cohort of General Managers completed the Horizon
Leadership Program and we launched a Better Leaders
Program for our broader leadership group.
We reinforce desired risk behaviours through our regular
‘Skill Boosts’ learning modules. Meanwhile, our 200
volunteer Culture Champions act as internal ambassadors,
promoting a proactive risk and customer-focused culture
with their peers.
Our performance management framework ensures our
employees understand what is expected of them. It
also motivates our employees through clear goal setting
and regular feedback. All employees have defined risk
goals and 621 employees received additional variable
reward for achieving great risk outcomes. Individuals and
teams were also recognised by their peers or leaders via
our recognition platform, with nearly 115,000 actions to
recognise positive risk management and risk behaviours.
Our employee survey Voice+ provides a holistic picture
of employee engagement and includes the Organisational
Health Index (OHI) global benchmarking measure. This
year's results showed a significant improvement to 80 (+5)
which places Westpac in the global top quartile.
It also showed an improvement in our risk culture. These
results reflect the positive impact of our organisation’s
strategic direction, as well as customer, cultural and
employee initiatives that have been implemented
throughout the year.
Building future skills
Equipping our people with the skills and capabilities
needed for both today and tomorrow is central to our
learning and talent strategy. We are focusing on upskilling
our organisation in critical skills areas such as data, digital
and AI.
An additional 2,300 employees completed the Data and
Digital Capability Program, bringing the total to more
than 6,200 individuals who have earned external badge
qualifications in the past two years. 98% of participants
reported that the program provided them with skills,
knowledge and tools they'll
find useful for the next
three years.
Our skills based strategy helps us define the skills needed
to meet workforce demand and identify specific pathways
in critical areas such as relationship management,
sustainability, cyber security and data management. All
employees complete mandatory cyber awareness, data
protection and cyber threat training. Meanwhile, new
learning modules on generative AI are helping our people
to learn and build confidence with emerging technologies.
INVESTING IN CAREERS
We are future-proofing the skills of our people
to support careers and improve customer service.
We provided online sustainability training to 1,155
employees in wholesale and institutional banking,
covering climate transition plans, sustainable finance
and sustainability reporting.
28WESTPAC 2024 ANNUAL REPORT
CREATING VALUE FOR OUR PEOPLE
Attracting and recognising talent
We are committed to creating better futures for our
people by ensuring they thrive, feel inspired to do
their best work and have opportunities to advance
their careers. Our refreshed employer brand - Passionate
people who make a difference - positions Westpac as a
great place to work.
We are proud to have attracted 138 bright minds through
our industry-recognised
1
graduate program of which more
than 40% have degrees in STEM fields. Our commitment
to diversity and inclusion is reflected in this year’s cohort,
with 57% graduates being women.
We have continued to invest in hiring engineering and
data professionals, welcoming more than 350 engineers
and 130 data specialists to the organisation. Our award-
winning
2
Mob Tech program offers an alternative pathway
for First Nations people to gain comprehensive training
in cloud computing, security, data analytics and web
development. The program has been highly successful,
with all 28 participants from the pilot cohort transitioning
into ongoing technology roles at Westpac.
We continue to invest in our people to help them achieve
their career and learning goals. We expanded our Career
Planning resources which now provides guidance to 11,600
individuals on their potential next role and pathways to
success. Additionally, 384 permanent full-time and part-
time employees utilised our study and graduation leave
options. Updating our recruitment policies resulted in a
28% increase in the visibility of internal opportunities,
encouraging our top talent to stay and grow their careers.
Promoting employee wellbeing
Fostering a flexible, safe and healthy workplace is a core
part of our people strategy. We know that enhancing
our employees’ work experience and supporting positive
mental health are fundamental to creating an environment
where everyone can thrive.
Our Chief Mental Health Officer leads the strategy
to support our people's mental health, focusing
on prevention, early intervention and connected
care. We conduct workplace assessments and offer
targeted resources, support and education to promote
employee wellbeing.
This year, we completed a comprehensive review of
factors that may influence wellbeing. This enabled us
to provide tailored solutions to support our people's
mental health and wellbeing, as well as their broader
experience at work. To ensure successful implementation.,
we leveraged the expertise of psychologists and
safety specialists.
Employees have access to 24/7 confidential counselling
support and other resources for both personal and
professional support. Our workplace flexibility, wide range
of leave options, banking benefits and private health
care discounts further support employee wellbeing. For
example, we offer parental leave (including support
for those who experience pregnancy loss), cultural,
wellbeing and lifestyle leave, uncapped domestic and
family violence support leave, gender affirmation leave
and Sorry Business leave.
EMPOWERING WOMEN
The EmPOWERUP Tech Returnship program
provides a pathway for women to reignite
their technology careers. We proudly welcomed
37 talented women to Westpac, offering them
extensive support and training during their first
24 weeks. With more than 1,000 applicants, this
program continues to strengthen our female talent
pipeline. EmPOWERUP fosters individual growth,
flexible working and networking opportunities while
enriching our workplace with diverse perspectives
and skills.
1.2024 Australian HR Awards – Best Graduate Development Program.
2.2024 Women in Banking and Finance Awards – Winner of the Inclusive Workplace of the Year.
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3,000+
Leaders completed
inclusive
leadership training
24/7
COUNSELLING
SUPPORT
Supporting positive
mental health
1.08%
First nations people in
our workforce
UPSTANDER
INITIATIVE
Speaking up and
acting against racism
and discrimination
Strengthening diversity, equity and inclusion
Westpac is a proudly inclusive employer, committed to fostering a safe and inclusive workplace for everyone, regardless
of background, gender or identity. We want our people to feel valued, respected and safe to be themselves at work. We
have 10 Employee Advocacy Groups that connect more than 11,200 people on matters they are passionate about.
Our zero tolerance approach to all forms of discrimination and harassment is reinforced through our Code of
Conduct and Discrimination, Bullying and Harassment policy. Our commitment is supported by training for leaders and
employees, dedicated reporting channels, investigation and support processes. This year, more than 5,000 employees
participated in the Upstander initiative, which encourages our people to speak up against inappropriate behaviours.
Our industry-recognised
1
programs and initiatives are informed by the views of our people, captured in the annual
Inclusion and Diversity survey. Examples included:
Learning and development to support marginalised groups. We have introduced mandatory training for
leaders to provide the necessary tools and capabilities to support people with diverse views, experiences
and backgrounds.
Prioritising cultural diversity and increasing culturally diverse leaders. Our partnerships with the Asian
Leadership Project and Dr. John Yu Fellowship offer future leaders through networking, mentorship and
career development opportunities.
Helping First Nations people to build meaningful careers. As outlined in our Reconciliation Action Plan
(RAP), we are committed to helping First Nations People build meaningful careers. This year, we improved
representation to 1.08% and aim to increase this to 1.5% next year. Refer to Creating value for the community
(page 30) for more information.
Providing inclusive career opportunities for candidates with disability. As the first financial institution in
Australia to obtain Disability Confident Recruiter accreditation, we ensure equitable hiring processes for
individuals with disability, including neurodivergent candidates. We have also partnered with People with
Disability Australia to launch a program advancing women with disability, a first for Westpac.
Taking action to support women to advance their careers. We support the 40:40 Vision and are proud to
have 49% women in senior leadership positions
a
. The Illuminate program supports 82 aspiring female leaders
in Australia, Fiji, PNG, Singapore and New Zealand through General Manager sponsorship. We are also the
first bank to join Diversity Council Australia’s RISE Project, helping culturally diverse women to advance their
leadership careers. Our EmPOWERUp program creates a pathway for women to reignite their careers after
an extended leave break (see Empowering Women case study on page 28).
We are committed to paying our people fairly and equitably. However, we recognise there is more work to
do. As reported to the Workplace Gender Equality Agency, we have a median gender gap of 29.3%. For
more information on this gap and our strategy to increase women's representation in key roles refer to our
Gender Pay Statement on our website.
a.Senior Leadership includes Executive Team, General Managers and their direct reports (excluding administrative or support roles).
Further information is set out in the 2024
Sustainability Index and Datasheet.
1.Global recognition of Westpac's diversity, inclusion and equity practices includes Equileap’s 2024 report, the Australian Workplace Equality
Index (AWEI), the Australian Disability Network INDEX and the Australian Defence Force Reserves and Employer Support Awards.
30WESTPAC 2024 ANNUAL REPORT
CREATING
VALUE FOR
THE COMMUNITY
We are determined to
create meaningful impact
by supporting people,
community organisations
and social enterprises that
are building better futures
for Australians.
#1
BANK FOR
CORPORATE GIVING
1
73,000
HOURS VOLUNTEERED BY
WESTPAC EMPLOYEES
$177M
IN
COMMUNITY INVESTMENT
2
$37.9M
SPENT WITH
DIVERSE SUPPLIERS
3
1.Westpac was named the #1 Bank for Corporate Giving in 2024 by
Forbes Australia.
2.Figure includes commercial sponsorships and foregone
fee revenue.
3.Refer to the 2024 Sustainability Index and Datasheet for definition.
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Doing good is in our DNA
As one of Australia’s largest organisations, we have a
proud legacy of supporting local communities by investing
in change that matters. Since our first charity was formed
in 1879, we have built one of the strongest community
offerings in corporate Australia
1
through our employee
workplace giving programs, the Westpac and St.George
Foundations and the Westpac Scholars Trust
2
.
Our people dedicate their time and energy to support
causes they are passionate about. This year, our people
volunteered more than 73,000 hours to create positive
change and value in the community. In addition, our
people participated in programs such as the Community
Ambassador, the Westpac Board Observer and the
Jawun Programs.
We reinvigorated our workplace giving initiative, leading
to a 16% increase in employee participation. Our
people donated more than $2.4 million to not-for-profit
organisations which Westpac matched.
See our 2024 Foundations Impact Report
Strong community partnerships
In our 51 year partnership with the Westpac Lifesaver
Rescue Helicopter Service, more than 100,000 community
missions have been performed, including search and
rescue and hospital emergencies. We also support Little
Wings, a children’s charity providing free transport for
seriously ill children in rural areas to access vital city
medical services. Our rugby league program supports and
promotes both the National Rugby League and Women’s
National Rugby League competitions, including pathway
and development programs for young females. Westpac
is also proud to be the major sponsor of the New
South Wales and Queensland men’s and women’s State of
Origin teams.
Westpac Foundation
2
Investing in job creation and social enterprises to help
build a stronger, more inclusive Australia.
This year, Westpac Foundation awarded $2.8 million to 45
social enterprise partners. It also achieved a significant
milestone by surpassing its goal of 10,000 jobs by 2030
through helping its partners to create 10,141 jobs for
Australians facing barriers to employment since 2015.
Westpac Scholars Trust
2
Investing in the next generation of Australian leaders
focused on creating a more sustainable, inclusive or
globally connected Australia.
Through 100 scholarships annually, Westpac Scholars
Trust supports university students, researchers and social
entrepreneurs. This year, it awarded $4.9 million to 100
scholars who are undertaking varied and meaningful
pursuits, bringing the total since 2015 to more than
$45 million awarded to 824 scholars.
St.George Foundation
2
Investing in small, local charities to provide children
and young people with access to education and
wellbeing initiatives.
More than $3 million was awarded to 51 charities across
Australia, supporting initiatives that make a real difference
to young lives.
Te Waiu O Aotearoa Trust
3
Investing in the education and advancement of Māori in
the general business, banking and finance industries.
Each year, Māori recipients throughout Aotearoa are each
awarded a $5,000 scholarship so support their tertiary
study costs.
The Foundations and Trusts we support awarded
$11 million to more than 200 new and returning grant
partners and recipients in 2024.
1.
Westpac was named the #1 bank for Corporate Giving by Forbes Australia in 2024.
2.Westpac Group provides support to the Westpac Community Trust and the Westpac Buckland Fund (known as the Westpac Foundation),
Westpac Scholars Trust and the St George Foundation Trust (known as St George Foundation, BankSA Foundation and the Bank of Melbourne
Foundation). While Westpac was involved in establishing these foundations, they are non-profit organisations that are separate to the
Westpac Group. The trustee of St George Foundation Trust (St George Foundation Limited) is a related body corporate of Westpac.
3.Westpac New Zealand provides administrative support and skilled volunteering to Te Waiu O Aotearoa Trust, which is a charitable trust and
not part of the Westpac Group.
CHAMPIONING INCLUSIVE EMPLOYMENT
Nestled in the village of Mount Victoria in the Blue Mountains,
Hotel Etico is Australia’s first social enterprise hotel, leading
the way in disability employment within the hospitality industry.
Co-founder and CEO Andrea Comastri provides live-in
accommodation for employees with disability, helping them
develop hospitality and life skills. In recognition of his work,
Andrea was awarded a $50,000 Social Change Fellowship from
the Westpac Scholars Trust to enhance his leadership skills and
support Hotel Etico and its employees in reaching their full potential.
32WESTPAC 2024 ANNUAL REPORT
CREATING VALUE FOR THE COMMUNITY
Respecting and advancing human rights
We are committed to respecting human rights. Our Human Rights Position Statement (HRPS) and Action Plan outlines
our commitments, approach, areas of focus and support for the UN Guiding Principles on Business and Human Rights.
Our goal is to undertake human rights due diligence to identify, prevent, mitigate and address human rights risks and
impacts, including those arising from our business relationships. Our processes include ESG risk assessments, transaction
monitoring, Responsible Sourcing assessments, employee and third-party due diligence and customer care protocols.
We enhanced our ESG tools, leading to 164 customer escalations for further review on human rights and modern slavery
risks. We worked with suppliers to close more than 100 priority action plans addressing potential gaps in their modern
slavery approaches. We assessed our grievance mechanisms and identified improvements for handling human rights
grievances. Additionally, we piloted a monitoring framework to track and report on the impact of our human rights
efforts, focusing on 14 indicators related to modern slavery. For more details, refer to our Modern Slavery Statement.
Creating safer communities for children and young people
Our Safer Children, Safer Communities (SCSC) program has made good progress since its inception. Since 2020 we
have granted more than $77 million to 50+ child safeguarding organisations in Australia and Asia. This year, the funding
has helped our partners reach more than 69,000
1
children, young people and adults through various programs. One
example is The Benevolent Society which is supporting seven local organisations across three states to improve child
safety outcomes. We also made progress on the commitments in our Child Safeguarding Supplement. The SCSC Impact
Report has more detail.
Strengthening risk management
The first stage of our Human Rights Risk Assessment (HRRA) provided insights into our salient human rights issues
across our lending and supply chain. Salient issues are those with the most severe impacts on people connected to
our activities. Future assessments will cover our financial products, services, employment practices and community
partnerships. While we can’t control all issues, we aim to reduce adverse outcomes and have identified actions to
strengthen our response and seek improvement opportunities.
Salient human rights issues
Our role as a bank
As a lender to business,
corporates and institutions
As a lender
to individuals
As a purchaser of
goods and services
SALIENT ISSUEOUR ROLEDESCRIPTION
Health, safety
and wellbeing
Impacts to the health, safety and wellbeing of workers, consumers and communities in both our own
and our customers' operations and supply chains.
Modern slavery and
labour exploitation
Modern slavery and exploitative labour practices in both our own and our customers' operations or
supply chain. Examples include slavery, servitude, human trafficking, forced labour, debt bondage,
deceptive recruitment, child labour and forced marriage.
Conflict and
security practices
Customer connections to, or exacerbation of, local conflict and/or the harmful use of security
practices against local communities or workers.
Land rights
and livelihoods
Customer connections to land rights violations, Free, Prior and Informed Consent (FPIC) or adverse
impacts to communities and their livelihoods associated with land use and compensation practices.
Climate vulnerability
and resilience
Our role in supporting customers and communities vulnerable to or affected by climate change,
helping to build climate resilience and financing climate mitigation and adaptation projects.
Customer hardship
and exploitation
Our role in supporting and avoiding impacts to customers in times of hardship, vulnerability,
exploitation or abuse, including situations of fraud, scams, financial abuse, coercion, or domestic
and family violence.
Housing affordability
and inclusivity
Our role in supporting customers and communities to access affordable, inclusive and
adequate housing.
Financial inclusion
and wellbeing
Our role in supporting diverse customers, fostering equitable access to finance and promoting
financial wellbeing so that customers and communities can meet their basic needs.
Privacy and
data protection
Protection and respect for the privacy of our customers and their data.
1.Data is from 1 October 2023 to 31 March 2024 and includes children, young people and adults directly and indirectly reached through funded
programs across Australia, the Philippines, Thailand and Cambodia.
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Keeping cash flowing in communities
Cash is important for many customers. Looking ahead, we are committed to engaging with industry and government
to develop a sustainable, long term solution to maintain cash services in our communities. Westpac, in collaboration
with other major banks and retailers, committed almost $50 million to support Armaguard to maintain cash availability
in the community. This funding took Westpac's total cost of supplying cash services to Australians for the year to
approximately $330 million.
Diverse suppliers
We aim to build a stronger, more inclusive society by supporting businesses that drive positive change. Through
our Supplier Inclusion and Diversity program, we collaborate with Indigenous-owned businesses, social enterprises,
Australian Disability Enterprises, women-owned businesses and B Corporations (companies certified for their high
standards of social and environmental performance, transparency and accountability). This year, we spent $37.9 million
with diverse suppliers
1
, an increase of $10 million from last year. This includes $21.1 million spent with Indigenous-
owned businesses.
Supporting Reconciliation
Our vision for reconciliation is an Australia where Aboriginal and Torres Strait Islander peoples have equitable
economic participation and financial wellbeing. Our 2022-2025 Reconciliation Action Plan (RAP) outlines our
commitment and actions to achieve this vision through our roles as a lender, employer, purchaser, community
supporter and corporate voice. As we approach the final year of our RAP, we continue to make progress in our
four focus areas.
Respect for self-determination and a deeper understanding of Free Prior and Informed Consent (FPIC)
Our RAP sets out our Free, Prior and Informed Consent (FPIC) project, which aims to further develop our
understanding of FPIC, work with stakeholders, improve our capability and share our learnings as widely as we can.
See our RAP for more information.
This year, we continued our community consultations to better understand our role as a bank and lender and refined
our risk assessment tools for institutional customers.
RAP FOCUS AREA
FY24 PROGRESS
a
Valuing culture: building
relationships based on trust and
respect; valuing cultures and
histories and recognising the
importance of self-determination.
•Celebrated and supported Indigenous culture by hosting more than 30 events internally
and externally for National Reconciliation Week and NAIDOC Week.
•30 Westpac staff completed a Jawun secondment, contributing more than 6,800 hours
to community organisations across 8 regions.
•Maintained cultural capability with 100% of employees completing mandatory learning.
Meaningful careers: investing
in Indigenous careers through
dedicated programs to recruit,
retain and develop Aboriginal and
Torres Strait Islander people.
•Increased our Aboriginal and Torres Strait Islander workforce representation to 1.08%,
exceeding our 2024 target of 0.9%.
•Recruited 28 cadets through the MobTech program with all gaining permanent roles at
Westpac. See Building future skills (page 27) for more detail.
•Expanded leadership development opportunities through our Echo leadership and
coaching programs and our Indigenous employee Summit, Bayala Djurali.
Better banking experiences:
making it easier for Indigenous
customers to do business with us
and improving financial inclusion
and economic participation.
•Supported more than 12,867 unique
a
customers through our Indigenous call centre
since 2022.
•Simplified our customer onboarding process, allowing remote customers to onboard
without visiting a branch.
•New scam and fraud dedicated phone line to improve support for impacted customers.
Backing Indigenous enterprise:
helping more Aboriginal and
Torres Strait Islander people
to grow their businesses
as customers, suppliers
and partners.
•Spent $21.1 million with Indigenous-owned suppliers this year, bringing the total
since April 2022 to $32.6 million. This exceeds our RAP target to spend a
cumulative $8 million with Indigenous-owned suppliers between 1 April 2022 and
30 September 2025.
•Supported 11 Indigenous-owned organisations through our Skilled Volunteering Network.
a.Refer to the 2024 Sustainability Index and Datasheet for definition.
1.Refer to the 2024 Sustainability Index and Datasheet for definition.
34WESTPAC 2024 ANNUAL REPORT
CREATING
VALUE FOR
THE ENVIRONMENT
We are committed to global
efforts in achieving
net-zero by 2050 through
our operations, helping
customers to transition and
collaborating for impact.
Key highlights
1
13
TARGETS IN ALL
9 NZBA EMISSIONS-
INTENSIVE SECTORS
2
86%
REDUCTION IN SCOPE
1 AND 2 EMISSIONS
SINCE 2021
$29BN
IN SUSTAINABLE
FINANCE LENDING (TCE)
$13.7BN
IN BOND FACILITATION
SINCE THE START OF FY22
1.Refer to our 2024 Climate Report for definitions and detail.
2.Westpac joined the Net-Zero Banking Alliance (NZBA) in 2022.
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In line with our purpose of creating better futures
together, we are progressing our climate transition
plan with the ambition to become a Net-Zero, climate
resilient bank.
Our approach to climate change, detailed in our Climate
Report, guides our carbon footprint reduction efforts
across the organisation.
We've continued to make progress against our three
action areas. Further details on our targets and plans are
available in our 2024 Climate Report.
1. Net-zero, climate resilient
operations
We are committed to reducing the climate change impacts
of our operations through the reduction of our scope 1, 2
and scope 3 upstream emissions.
This year, we reduced our total operational emissions
(scope 1, 2 and scope 3 upstream) by a further 19% largely
due to meeting our renewable energy goals ahead of
schedule. Our scope 1 and 2 emissions are now 86% lower
than our 2021 baseline
1
which surpasses our 2030 target
of a 76% reduction, six years ahead of schedule. To further
reduce our scope 1 emissions, we have installed electric
vehicle (EV) charging stations in more workplaces and
commenced including EVs in our fleet.
Scope 3 upstream emissions are now 41% lower than our
2021 baseline
1
, positioning us well against our 2030 target
for a 50% reduction. We developed a new program which
will support employees reduce their home emissions by
switching to renewable electricity contracts with retailers.
WESTPAC'S OPERATIONAL EMISSIONS
(Tonnes of CO
2
equivalent)
TITLE
1
TITLE
7,8517,2976,5596,262
53,981
36,734
14,489
2,303
71,738
63,377
61,044
57,655
Scope 1 emissionsScope 2 emissions
Scope 3 upstream emissions
2021¹202220232024
TITLE
2. Supporting customers’ transition
to net-zero and to build their
climate resilience
More than 99% of our carbon footprint is derived from
financed emissions, which are the emissions associated
with the activities of the customers we lend to. Reducing
the emissions intensity of our loan portfolio by mobilising
capital to support customers in their transition is one of
the most significant roles we can play as a bank. This
supports the transition to a net-zero economy and helps
us to reduce our financed emissions.
To guide our efforts, we joined the NZBA and have set
2030 targets for some of the most emissions intensive
sectors in our lending.
We made progress last year with an improved emissions
profile in 11 of our 12 sectors where we have targets.
This year, we introduced a new aluminium sector target,
bringing us to a total of 13 targets across emissions
intensive sectors under our NZBA commitment. Up to 54%
of our estimated scope 3 financed emissions from the
scope 1 and 2 emissions of our customers at a Group level
for FY23 relate to customers and industries captured in
our NZBA sector targets.
We engaged just over 150 institutional customers on their
climate transition plans and found that 84% of customers
had a public transition plan. As part of our engagement,
we provided insights on industry best practice, climate
strategy and ESG trends.
Other areas of progress include:
•Launching the Sustainable Upgrades home and
investor loans with the support of the Clean Energy
Finance Corporation’s $1 billion Household Energy
Upgrades Fund, for customers to install new features
or technology to improve the energy efficiency or
climate resilience of their properties.
•Building on the success of New Zealand’s Sustainable
Farm Loan and Sustainable Finance Business Loan
launched last year, we introduced a new Sustainable
Equipment Finance Loan. This initiative supports more
businesses in reducing their climate impacts through a
range of sustainable assets, such as electric vehicles.
•We reviewed our loans and bond facilitation activities
against our Sustainable Finance Framework. At
30 September 2024 we had $29 billion in lending
while the cumulative total of bond facilitation since
the start of FY22 was $13.7 billion. This puts us on
track to meet our 2030 targets of $55 billion and
$40 billion respectively.
Refer to the
2024 Climate Report for further
information about our financed emissions at an
industry level
1.The 2021 baselines for these targets is different from what is in this figure as data was adjusted for COVID-19 pandemic and other impacts.
36WESTPAC 2024 ANNUAL REPORT
CREATING VALUE FOR THE ENVIRONMENT
GROUP FINANCED EMISSIONS AND PROGRESS ON OUR NZBA SECTOR TARGETS
Financed emissions are our estimated share of customers’ scope 1, 2 and, for certain sectors, scope 3 emissions -
collectively referred to as our scope 3 financed emissions. In FY23, the financed emissions for our portfolio were
estimated at 26.2 MtCO
2
-e (customers' scope 1 and 2), up 6% over FY22 partly due to a 3% rise in TCE over the year.
Our NZBA sector targets are set over subsets of the sectors in our portfolio. The progress metrics for these targets
are calculated using different methodologies to those used to calculate our Group financed emissions. Calculations
typically rely on more granular data, including customer or related asset emissions. Given the complexity of the
calculations and the time needed to collect customers' information, our estimated Group portfolio financed emissions
and progress of our NZBA sector targets are reported one year in arrears, for the period ended 30 September 2023,
unless otherwise indicated.
The below table summarises our progress on our NZBA sector targets. See our 2024 Climate Report for
more information.
PROGRESS ON OUR NZBA SECTOR TARGETS
NZBA SECTORWESTPAC SECTOR
TYPE OF
TARGET
CUMULATIVE CHANGE IN EMISSIONS
FROM BASELINE YEAR (%)
a
PROGRESS FY22PROGRESS FY23
IMPLIED
2030 TARGET
Power
generation
Power
Generation
Intensity-12-23-62
CementCement
Production
Intensity0-5-14
Oil and GasUpstream Oil
and Gas
Absolute-18-45-23
CoalThermal
Coal Mining
Absolute-23-81-100
TransportAviation
(Passenger
Aircraft
Operations)
Intensity-18-45-60
Iron and SteelSteel ProductionIntensityIn FY23, we are on track to achieve our 2030 target
and progress remains below our emissions pathway. Given
the small number of customers, this information is not
publicly disclosed.
AluminiumAluminium
a
IntensityThe baseline year for this target is 2023. Given the
small number of customers, this information is not
publicly disclosed.
Commercial
and Residential
Real Estate
Commercial Real
Estate (Offices)
a
IntensityNA - baseline year
is 2022
-18-59
Residential Real
Estate
(Australia)
a
IntensityNA - baseline year
is 2022
-11-56
AgricultureAustralia Beef
and Sheep
Intensity+4+4-9
Australia DairyIntensity-7-8-10
New Zealand
Beef and Sheep
Intensity-1-4-9
New
Zealand Dairy
Intensity+4-7-10
a.Baseline year for Commercial Real Estate and Residential Real Estate targets is 2022. Baseline year for Aluminium is 2023. Baseline year for all
other NZBA sector targets is 2021. Baseline and progress metrics for Residential Real Estate target are as at 31 August.
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3. Collaborating for impact
Transitioning to net-zero requires collaboration across all
sectors of the global economy. We collaborate with
governments, industry associations, NGOs, communities
and international bodies while participating in the
initiatives of several standard setting bodies. This included:
•participating in consultations for the AASB climate-
related disclosures standards and the Climate Active
program through our Australian Banking Association
(ABA) membership;
•participating in the development of the Australian
Sustainable Finance Taxonomy through our Australian
Sustainable Finance Institute (ASFI) membership; and
•co-chairing the Banking Board of the United Nations
Environment Programme Finance Initiative (UNEP FI)
which oversees the Principles for Responsible Banking
(PRBs) and being involved in steering and principals groups that govern the NZBA.
We’ve committed to invest in a new fund by Virescent Ventures focused on in early-stage climate technologies. This
investment, alongside the Clean Energy Finance Corporation, will provide insights into emerging technologies and help
us to assist customers, especially in hard-to-abate sectors, as they progress their transition plans.
SUPPORTING THE TRANSITION TO A
SUSTAINABLE FUTURE
Westpac supported the Australian Office of Financial
Management (AOFM) as Joint Lead Manager, with their
first 10-year A$7 billion Green Treasury Bond. AOFM
manages the Australian Government’s debt portfolio.
The green bond’s proceeds will be allocated to projects
that drive Australia’s transition to net-zero by 2050
and aim to deliver lower greenhouse gas emissions,
increases in renewable energy production and bolstering
biodiversity conservation, restoration and adaptation
NATURAL CAPITAL
The world’s natural capital is under threat as natural
resources decline and critical habitats are placed under
pressure. As with climate change, we have a role to play
in supporting customers to conserve nature and reduce
natural capital loss.
We released our Natural Capital Position Statement
(NCPS) last year and are working to further build our
understanding of nature-related dependencies, impacts,
risks and opportunities. According to the Task Force on
Nature-related Financial Disclosures (TNFD)’s reference
sectors, we estimate that more than 13% of our lending
is to sectors with significant nature-related dependencies
and impacts.
We are further developing our geospatial capabilities
and piloting TNFD LEAP (Locate, Evaluate, Assess and
Prepare) assessments for material sectors. This is helping
to set the baselines for additional work.
As our customers and investors become more aware
of nature-related risks and opportunities, we continue
to engage with them to support their journey and
deepen our understanding of these impacts. In FY24, we
supported the Australian Sustainable Finance Institute’s
(ASFI) Valuing Natural Capital program as part of their
Natural Capital Advisory Group.
We are developing foundational training for front line
bankers and participation in external learning, such as
workshops by the Principles for Responsible Banking.
Next year, we aim to foster greater awareness amongst
other employees, management and the Board on nature-
related topics.
EXPOSURE TO TNFD REFERENCE SECTORS
TNFD REFERENCE SECTORS
a
2024
% OF
GROUP TCE
b
Automobiles and Components0.07
Consumer Durables & Apparel0.34
Consumer Services, Consumer Staples
Distribution and Retail
1.71
Energy0.62
Food & Beverage2.74
Household & Personal Products0.01
Materials1.12
Pharmaceuticals & Biotechnology0.09
Real Estate Management & Development,
Equity Real Estate Investment Trusts
(REITs), Home building and Capital Goods
2.83
Semiconductors &
Semiconductor Equipment
0.13
Transportation2.09
Utilities, Commercial and
Professional Services
1.54
Total13.29
a.Reference sectors set out within Annex 1 of the TNFD Sector
guidance, Additional guidance for financial institutions Version
2.0 June 2024. Refer to the glossary of the 2024 Sustainability
Index and Datasheet for further details.
b.Represents the TCE for customers in each reference sector,
excluding exposures for the committed portion of secondary
market trading and underwriting risk, as a percentage of TCE
for Westpac.
38WESTPAC 2024 ANNUAL REPORT
TECHNOLOGY
SIMPLIFY
MODERNISE
INNOVATE
Accelerating simplification
We are taking significant steps to rationalise our
technology and reduce costs.
UNITE, our business-led, technology-enabled
transformation program, aims to simplify our processes
and systems to build a strong foundation for
future growth.
The multi-year program intends to deliver progressive
benefits to customers, employees and shareholders by
reducing the number of our technology platforms and
business complexity in the longer term.
Our objective is to have an efficient technology
environment, allowing us to be faster in responding to
customer needs and technological changes.
We have begun 39 initiatives under UNITE, including
streamlining the way we verify customer identification
(see case study). We are giving our bankers and
lenders across St.George, Bank of Melbourne and BankSA
a new Customer Relationship Management system to
improve service. We have decommissioned more than
200 applications and are well-progressed on launching a
unified platform to provide better support to collections
and hardship customers.
We undertook other major simplification projects,
including one that halved our data centres and
consolidated nine networks into one, earning recognition
as Australia’s best technology project.
1
Technology simplification will remain a priority for
Westpac, driving operational efficiency and enhancing our
ability to create long term value for stakeholders.
STREAMLINED ID VERIFICATION
We are consolidating 22 customer verification
processes into a single digital identification
solution, which includes biometrics.
Customers will be able to verify their identity
through the Westpac App or Online Banking using
acceptable forms of ID such as an Australian
driver’s licence, passport, or Medicare card.
This will help make the crucial ID verification step
faster, easier and more secure for new customers.
UNITE objectives
Better
customer experience
UNITE aims to deliver all customers
Westpac’s best experience, including
access to Australia’s best banking app
leading to
improved customer experience,
NPS and customer loyalty.
Improved
employee experience
UNITE aims to give us one best way
to serve and support our customers
across the entire bank
leading to
more time with customers,
fewer systems to navigate,
easier processes and increased
employee engagement.
Increased
shareholder return
UNITE aims to reduce business
complexity leading to lower run costs
and spend on transformation
leading to
close the cost to income
ratio gap to peers.
1.2024 Australian Institute of Project Management National Awards.
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Modernising for superior experiences
While simplifying our technology, we are also modernising
to deliver market-leading products and experiences to
customers.
•Our online banking app was rated #1 by Forrester for
the second year, with enhanced security and features
such as Westpac SaferPay and Westpac Verify. See
Creating value for customers (page 20) for more
information.
•BT Panorama won best wealth management platform
at the Australian Wealth Management Awards.
•Robotic automation across consumer, business and
institutional lending saved bankers 20,000
administration hours to focus on customer service.
•Our new Digital Banker platform will enable our
bankers to better support and service customers.
•Westpac Mesh, our world-class technology
development platform, grew from 85 million in daily
transactions in FY23 to more than 120 million. Our Mesh
engineers rank in the top 20% globally for productivity
1
.
•We strengthened our defences against customer fraud, scams and cyber-attacks by investigating over 11,000 alerts
and using a combination of Artificial Intelligence and automation to detect suspicious patterns and risks.
Innovating to drive intelligent banking
Our emphasis on AI, data analytics and advanced workforce practices is making Westpac a more efficient, insights-
driven bank, capable of delivering more personalised customer experiences and efficient operations.
LEVERAGING THE POWER OF AI
We are using AI to develop new capabilities that deliver benefits to our customers, people and organisation. Our
new AI platform is the foundation of our progress, hosting multiple AI-based solutions and enabling the seamless
integration of new applications.
Advanced AI models are used in home lending to verify customer income and expense information, making the home
loan process more efficient for customers, brokers and our people by reducing rework.
Our use of AI assists thousands of our software engineers, boosting their productivity by between 10 and 25% in
coding output and quality. AI powers our Everyday Banking chatbots, providing 24/7 support and resolving 70%
of customer queries without escalation. We are also trialling new internal chatbots for financial market dealers and
mortgage lenders.
Other opportunities include using ‘AI agents’ that are capable of executing multi-step actions to drive operational
efficiencies and improved service to our customers. We are committed to the responsible use of AI, ensuring our
initiatives align with our principles, policies, values and Code of Conduct.
Data: The foundation of intelligent banking
Data is critical to every aspect of our business, empowering informed decision-making. We have made significant
progress in migrating our data to the cloud, a major milestone in simplifying Westpac’s data ecosystem, reducing risk
and enabling our team to create value at scale through data products. Our customer insights platform continues to
evolve, offering a comprehensive view of our customers and delivering hyper-personalised experiences. We have defined
our approach to information security, including our alignment with international and industry standards, in our
Cybersecurity Statement.
Investing in our technology workforce
To drive our technology ambitions, we’re investing in our people. Over the course of the year, we brought on close to
1,000 engineers
2
and we’re upskilling our team while attracting new talent through initiatives like EmPOWERUP and
MobTech. For more details, please see Creating value for our people (page 26).
1.
BlueOptima software development metrics.
2.Figure includes all employment types, including contractors.
40WESTPAC 2024 ANNUAL REPORT
RISK MANAGEMENT
Proactive risk management and risk culture are fundamental to our bank. They underpin our strength and resilience,
shape the way we operate and provide clear parameters for decision-making. Strengthening risk management remains a
priority as the nature of the risks we face may change and evolve.
We manage risks through a Risk Management Framework (Framework) which is centred around customers, a strong
risk culture and the Three Lines of Defence (3LoD) model. These are surrounded by nine elements that work together
to guide how we manage risk and deliver fair customer outcomes. We regularly review these elements to ensure
the Framework operates effectively. The Framework is approved by the Board and implemented through our Risk
Management Strategy, which is supported by our risk class frameworks, policies and risk appetite statements.
To manage sustainability risks, the Framework is supported by a Sustainability Risk Management Framework (SRMF) and
related policies to guide how we manage risks such as climate change and human rights across our operations, lending
and supply chain. For further information on risks we face, see 2024 Risk Factors.
RISK MANAGEMENT FRAMEWORK COMPONENTS
Governance and
Management Control
Business Strategy
Risk Identification
Risk Appetite
Stress and
Scenarios Analysis
People and
Infrastructure
Control Definition and
Effectiveness
Monitoring and
Reporting
Actions and
Response
Westpac’s business plans
are shaped considering the
risks associated with its
strategic objectives
Identifying
existing and
emerging risks in
our business
from internal and
external
environments
Setting risk
appetite to
provide clarity on
the level of risk
we are prepared
to take
Performing stress tests and
scenario analysis to assess
potential impacts that changes
to existing and emerging risks
may have on the Group,
including on our capital
Having appropriate capability, people,
data and systems to support effective risk
management and decision making
Embedding appropriate
Frameworks, policies,
standards and controls to
manage the risks we take
Risks are
assessed
through ongoing
monitoring,
management,
reporting
and assurance
Appropriate
action plans
are
implemented
to improve
our risk
profile
Ensuring that appropriate data,
analysis and recommendations flow to
appropriate people and forums on a
timely basis to support decision making
Customers
R
i
s
k
C
u
l
t
u
r
e
Board approved 7 March 2024 (no changes from 2023)
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Strengthening risk management
We implemented a comprehensive Integrated Plan (IP), through the CORE program, to strengthen risk management
practices. The completion of the three year plan on 31 December 2023, marked a significant milestone in strengthening
our risk culture, governance and accountability. Promontory Australia, the independent reviewer of our IP, have noted the
progress in its final report. Subsequently, APRA reduced Westpac’s total operational risk capital overlay from $1 billion
to $500 million. We are now completing a transition phase to continue to embed the improvements we've made for the
long term and demonstrate their sustainability and effectiveness.
Three Lines of Defence
The 3LOD work together to make sound risk-based decisions through:
•Strong and proactive engagement, communication, trust and collaboration;
•Management information that is reliable, coherent and transparent; and
•Alignment of activities across the 3LOD to avoid unnecessary duplication, overlap or gaps.
WESTPAC THREE LINES OF DEFENCE
WESTPAC THREE LINES OF DEFENCE
The 3LoD work together to deliver effective risk management outcomes.
The 3LoD work together to make sound risk-based decisions through:
—strong and proactive engagement, communication, trust and collaboration
—management information that is reliable, coherent and transparent.
There must also be alignment of activities across the 3LoD to avoid unnecessary duplication, overlap or gaps.
Third Line
Independent
Assurance
Audit Function
Independent and objective assurance:
—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.
Second Line
Insight, Oversight and Challenge
Risk Function
Insight, oversight and challenge of First Line activities:
—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.
First Line
Own and manage risk
All Divisions and Functions excluding
Risk and Audit Functions
Owns and manages the risks they originate:
—Proactively identifies, evaluates, owns, monitors, manages and
controls the existing and emerging risks in its business. It manages
business activities within approved risk appetite and policies.
—In managing its risk, the First Line establishes and maintains
appropriate governance structures, and controls resources and self-
assessment processes, including issue identification, recording and
escalation procedures.
Risk identification: Major risk categories
We have defined 11 major risks that impact our business. These major risks represent only the most material
risks to the Group and are not exhaustive.
Major risk categories
1
Capital
Adequacy
2
Funding &
Liquidity
Risk
3
Credit
Risk
4
Market
Risk
5
Strategic
Risk
6
Risk
Culture
7
Operational
Risk
8
Compliance
& Conduct
Risk
9
Financial
Crime Risk
10
Cyber
Risk
11
Reputational &
Sustainability
Risk
For each major risk category, the Board establishes a risk appetite, which is articulated in the Board Risk Appetite
Statement (RAS). The RAS lists the Group’s major risks and the measures and tolerances used to monitor these risks.
Most of these measures are monitored by ‘amber’ and ‘red’ tolerances which indicate when risks are close to, or over,
the Board’s approved appetite.
The following provides an explanation of our major risk categories, considerations for risk appetite and examples of areas
of focus which illustrate the operation of the Risk Management Framework.
RISK
MANAGEMENT
WESTPAC GROUP 2023 ANNUAL REPORT 42
Embedded sustainability practices
Dedicated ESG specialists are integrated within our Business & Wealth, WIB and Westpac New Zealand
operating segments.
The ESG Risk team, as a second line of defence, performs independent monitoring and oversight of risk profiles to
ensure that risk and control assessments accurately reflect our sustainability risks.
Our approach to managing climate-related risks and opportunities, including assessing physical and transition climate
risks, is outlined in the 2024 Climate Report.
42WESTPAC 2024 ANNUAL REPORT
RISK MANAGEMENT
Risk assessment
In line with our Risk Management Framework, we regularly assess the risks that could impact Westpac’s strategic
objectives. This process involves workshops with first and second line defence teams to identify potential risks, assess
their impact and outline how we manage, monitor and report them with the controls in place. Emerging risks and
changes to the external environment are considered as part of the assessment. For material non-financial risks, we
generate a risk profile which enables each risk to be rated from ‘Low’ to ‘Very high’. Each risk is also assessed for its
financial, customer, staff, regulatory, reputation, social and environmental impact.
Major risk categories
We have identified 11 major risk categories, among other potential risks, that could impact Westpac. Sustainability risks,
including climate change, have the potential to affect the company in various ways with the main impacts classified
under the material risks of Credit Risk (as a financial risk) and Reputation and Sustainability Risk (as a non-financial risk).
1
Capital
Adequacy
2
Funding
and
Liquidity
Risk
3
Credit
Risk
4
Market
Risk
5
Strategic
Risk
6
Risk
Culture
7
Operational
Risk
8
Compliance
& Conduct
Risk
9
Financial
Crime Risk
10
Cyber
Risk
11
Reputational
and
Sustainability
Risk
For each major risk category, the Board establishes a risk appetite which is articulated in the Board Risk Appetite
Statement (RAS). The RAS lists our major risks, along with the measures and tolerances used to monitor each risk. Most
of these measures are monitored by 'green', ‘amber’ and ‘red’ tolerances which indicate when risks are close to, or over,
the Board’s approved appetite. The following table provides more detail on the major risk categories.
MAJOR RISK CATEGORIES
1
Capital Adequacy
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.
Risk Appetite and Mitigation
We aim to maintain a strong balance sheet including under
stressed scenarios.
We evaluate capital management through our Internal Capital Adequacy
Assessment Process, features of which include:
•Capital management strategy
•Considering economic and regulatory requirements and
stakeholder perspectives
•Stress-testing considerations
•Target operating range for key capital ratios.
Areas of focus include:
•Continuous monitoring of capital forecasts
•Considerations of capital headwinds
•Actively monitoring the economic outlook and credit risk arising from
higher interest rates and cost-of-living pressures.
Example of a Risk Appetite measure
•CET1 capital ratio – a measure which shows a bank’s capacity to
absorb losses.
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2
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.
Risk Appetite and Mitigation
We aim to manage our balance sheet such that we:
•Maintain a diversified, stable and cost-effective funding base
•Can source funding as and when needed
•Have sufficient securable assets to meet our funding and repurchase
agreement requirements
•Fund lending growth with stable funding sources.
Further information on funding and liquidity risk management is in Note 21
(page 215).
Areas of focus include:
•Executing the wholesale funding plan to support balance sheet growth
and refinance maturing debt
•Managing liquidity risk to meet regulatory requirements and Westpac’s
liquidity needs in line with market conditions.
Examples of a Risk Appetite measure
•Net Stable Funding Ratio (NFSR)
•Liquidity Coverage Ratio (LCR).
3
Credit Risk
The risk of financial loss where a
customer or counterparty fails to
meet their financial obligations
to Westpac.
Risk Appetite and Mitigation
We manage credit risk using either a Program-managed approach for high-
volume homogeneous credit risk or Transaction-managed approach for
individual customers.
These approaches include:
•Setting boundaries to guide appropriate credit risk conscious strategic
choices, including for changes in the operating environment
•A range of policies, processes, systems, risk-delegated authorities and
Board-approved credit risk limits.
Further information on credit risk management and provisioning is in Note
10 (page 175) and Note 11 (page 185) to the financial statements and in the
September 2024 Pillar 3 report.
Areas of focus include:
•Responding to heightened credit risk from the rapid interest rate
tightening cycle, ongoing geopolitical risks, an uncertain economic
environment and inflationary pressures
•Stress testing our credit portfolio for climate change including the
transition to net-zero emissions
•Assessing the impact of any external events that may impact our
credit portfolio (i.e. geopolitical events, industry
specific events), on the
adequacy of the overall expected credit loss provision.
Example of a Risk Appetite measure
•Top 10 exposures to Corporates and Non-Bank Financial Institutions as a
% of Total Committed Exposure.
44WESTPAC 2024 ANNUAL REPORT
RISK MANAGEMENT
4
Market Risk
The risk of an adverse impact
on our 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.
Risk Appetite and Mitigation
We have appetite for market risk in approved products within our limit
framework. We manage market risk through the employment of prudent risk
management strategies and active monitoring of Board-approved metrics
that capture the potential risk of adverse movements in financial markets.
The Board has approved a risk appetite for traded and non-traded risks via
the measurement of Value at Risk (VaR), Stressed VaR (SVaR), Net Income
at Risk (NaR) and risk sensitivities to interest rates for capital hedges and to
credit spreads for the liquid securities portfolio. The management of market
risk is supported by the Market Risk Management Framework and associated
policies, limits, processes, systems and delegated authorities.
Further information on market risk management is in Note 21 (page 215).
Areas of focus include:
•Upgrading/replacing market risk systems and supporting infrastructure
•Implementing regulatory change related to prudential market
risk standards.
Example of a Risk Appetite measure
•Value at Risk (VaR), a statistic that quantifies the extent of possible
financial losses arising from the Bank’s Financial Markets business.
5
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.
Risk Appetite and Mitigation
We aim to grow through well-considered initiatives aligned to our strategy
and risk appetite. We aim to manage the impact of threats from changes in
the environment, which could significantly impact our ability to implement
our strategies. We continually evaluate our performance against plans and in
light of changes, we must respond to such factors in a timely manner.
Areas of focus include:
•Accelerating technology simplification and transformation agenda
•Appropriate funding, resourcing and delivery of regulatory commitments
•Continuing to invest in digital and data journey, improving the
customer experience.
Example of a Risk Appetite measure
•Actual ROTE against the Target ROTE.
6
Risk Culture
The risk that our culture does
not promote and reinforce
behavioural expectations and
structures to identify,
understand, discuss and act
on risks.
Risk Appetite and Mitigation
We promote a risk culture that supports our purpose, strategy and values
and our ability to manage risk effectively. We regularly assess our risk
culture and undertake initiatives to continually improve.
Areas of focus include:
•Maintaining and continuing to review and improve our tools and
processes to support risk culture
•Supporting improved capability across key behavioural change areas,
including decision making, ownership, challenge and reinforcement and
maturing action planning to drive behavioural change
•Continuing to align to the broader organisational culture plan to support
driving change at all levels.
Example of a Risk Appetite measure
•Internal Voice+ survey results – % of respondents who feel safe calling
out risks and/or concerns.
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7
Operational Risk
The risk of loss resulting from
inadequate or failed internal
processes, people and systems
or from external events.
Risk Appetite and Mitigation
We aim to be resilient to operational risk and minimise risk through robust
processes and controls. We aim to quickly and effectively remediate material
operational issues and incidents.
Areas of focus include:
•Maturing our Operational Risk Management Framework and practices to
continuously strengthen risk management across the organisation
•Strengthening the control environment, including risk prevention
and automation
•Strengthening our operational resilience and adopting a cross-
organisation view of events to fully understand underlying issues. Areas
of focus include data, records management and third-party risk.
Example of a Risk Appetite measure
•% of key controls assessed as ‘Unsatisfactory’.
8
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 customers and that
support market integrity.
Risk Appetite and Mitigation
We establish robust controls and systems to manage compliance and
conduct risk. We aim to promptly own, investigate and remediate incidents
of non-compliance. We aim to eliminate:
•Any breaches of regulatory requirements
•Conduct that causes unsuitable, unfair or unclear customer outcomes or
adversely impacts the integrity of markets
•Complicated systems or processes that could lead to systemic or
material breaches of regulatory requirements.
Areas of focus include:
•Strengthening the management of our conflicts of interest, product
governance and privacy risks
•Improving our tools and processes to support alignment of our business
practices to fair customer outcomes and market integrity
•Applying the Code of Conduct including our ‘Should We?’ Test to deliver
better outcomes for our customers, our communities and each other.
Example of a Risk Appetite measure
•Average calendar days to complete all Compliance Assessments
46WESTPAC 2024 ANNUAL REPORT
RISK MANAGEMENT
9
Financial Crime Risk
The risk that Westpac fails
to prevent financial crime
and/or fails to comply with
applicable global financial crime
regulatory obligations.
Financial Crime includes
bribery and corruption, money
laundering, sanctions and export
control violations, tax evasion,
fraud and scams, terrorist
financing and proliferation.
Risk Appetite and Mitigation
Westpac helps prevent financial crime by proactively identifying, assessing,
mitigating and reporting financial crime risks and complying with all
applicable global and local financial crime regulatory obligations. This means
that our financial crime risks must be managed through robust controls and
systems and that we must promptly own, investigate and remediate financial
crime incidents where they do occur.
Areas of focus include:
•Simplification and embedding strategic capabilities, improving detection
and surveillance capabilities and expanding the use of network analytics
•Collaboration through involvement in Public and Private sector
partnerships and other intelligence bodies to disrupt financial crime
•Continued Know your Customer (KYC) identity checks, including
remediation of pre-commencement customers and enhancing
customer lifecycle management through digital capabilities and
automated controls. Pre-commencement customers are customers
who were onboarded before KYC requirements came into effect on
12 December 2007.
Example of a Risk Appetite measure
•Number of high rated Issues which haven’t been remediated within the
initially agreed timeframe.
10
Cyber Risk
The risk that Westpac’s or its
third parties’ data or technology
are inappropriately accessed,
manipulated or damaged from
cyber threats or vulnerabilities.
Risk Appetite and Mitigation
We proactively manage our cyber risk exposure, to ensure that we are
resilient to cyber threats and vulnerabilities. In managing our cyber risk, we
aim to ensure that:
•We manage our risks within the appropriate regulatory frameworks
•We do not undermine our strategic, financial, reputational or
regulatory standing
•We implement cyber controls commensurate to the cyber threats we
respond to.
We recognise that cyber events may occur, however incidents must be
managed timely and effectively to limit impact and future likelihood.
Areas of focus include:
•Enhancing cybersecurity capability including data security controls,
application protection controls, identity and access management and
strengthening our network perimeters
•Embedding a consistent cyber risk management framework.
Examples of a Risk Appetite measure
•Control effectiveness against external cyber threats
•Supplier security assessment outcomes.
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11
Reputational and
Sustainability Risk
The risk of failing to recognise or
address environmental, social or
governance (ESG) issues as well
as the risk that an action, inaction,
transaction, investment or event
will reduce trust in Westpac’s
integrity and competence.
Risk Appetite and Mitigation
We aim to maintain the confidence of all stakeholders by fostering trust
in our integrity and competence. Our approach aims to balance the
commercial aspects of decisions with stakeholder expectations, while
considering potential impacts on people, communities or the environment.
We recognise that ESG issues can involve complex, interconnected and
sometimes competing considerations.
In our lending
The ESG Credit Risk Policy supports the SRMF and forms part of our credit
risk assessment process. ESG risk assessment tools are used within the
business and institutional banking teams to assess ESG risks associated
with customers, transactions and the activity being supported. These
assessments are performed for new-to-bank opportunities and for existing
customers as part of periodic risk reviews or where there are major
changes to facilities. When potential ESG risks remain, they are escalated
to a Customer and Transaction Risk Escalation Committee for additional
review in the relevant business unit. The Climate Change Credit Risk
Committee provides portfolio oversight, informing accountable individuals
in making appropriate climate-related credit risk decisions.
In our supply chain
We require suppliers to adhere to Westpac’s Responsible Sourcing Code
of Conduct by completing an assessment that outlines our standards for
ethical, social and environmental business practices.
Areas of focus include:
•Improving tools and processes to understand sustainability risks
associated with our lending and supply chain
•Building our understanding of the nature-related risks, consistent with
our Natural Capital Position Statement
•Embedding findings of our salient human rights risk assessment into
risk management processes. See page 32 for more information.
Examples of a Risk Appetite measure
•Reputation ranking from RepTrak (a firm providing an independent
assessment of a company’s reputation, brand and ESG)
•Progress against our NZBA targets.
48WESTPAC 2024 ANNUAL REPORT
CORPORATE
GOVERNANCE
Our approach to governance
Corporate governance is the framework of systems,
policies and processes by which we operate and through
which our people are empowered and accountable for
making decisions.
Our approach to corporate governance is based on
a set of values and behaviours that underpin our
day-to-day activities. Our values and behaviours are
designed to promote transparency, fair dealing and
the protection of stakeholder interests, including our
customers, shareholders, employees and the community.
We aspire to the highest standards of corporate
governance, which Westpac sees as fundamental to the
sustainability of our business and performance.
Our corporate governance framework establishes the roles
and responsibilities of Westpac’s Board, management
team, employees and suppliers. It provides the systems,
policies and processes for monitoring and evaluating
Board and management performance. It also establishes
the practices for corporate reporting, disclosure,
remuneration, risk management and engagement of
security holders.
The Westpac Board is comprised of nine independent
Non-executive Directors and the Managing Director and
Chief Executive Officer (CEO).
WESTPAC’S BOARD AND BOARD COMMITTEE STRUCTURE
BOARD COMMITTEES
Provide relevant periodic assurances
and reports (as appropriate)
Provide assurance
on the remuneration
disclosures in the
Remuneration Report
Provide assurance on
risk components of
the annual report and
interim financial results
announcement
Delegation
Assurance,
Oversight through
Reporting
Accountability
Accountability
Delegation
Delegation
Board Committees will refer matters to the Board or other Board Committees where appropriate.
Specific reporting as shown above
BOARD
Independent Assurance and Advice
External
Auditors
Group
Audit
Independent
Assurance and
External Advice
Chief Executive Officer
Group Executives
RemunerationAudit
Nominations
& Governance
Risk
Board areas of focus in FY24
This year the Board (including with assistance from its
Board Committees) has focused on overseeing:
•our UNITE program which is focused on making
our processes, systems and technology simpler and
improving service to customers;
•the Group’s financial and operating performance,
including progress in improving the Group’s financial
performance relative to peers;
•ongoing initiatives that are designed to support
customers experiencing hardship and to help
protect customers from scams;
•completion of the Integrated Plan under the CORE
program, as well as the transition phase that
is focused on sustainably embedding changes
implemented through the CORE program;
•management of current and emerging risks arising
from the evolving economic, geopolitical, regulatory
and competitive environment;
•Westpac's capital position and various capital
management initiatives;
•consideration and assessment of the resilience of
the Group’s systems and response to potential cyber
incidents and data breaches;
•priorities outlined in our Sustainability Strategy and
our Climate Change Position Statement and Action
Plan; and
•ongoing consideration of Board and senior
executive succession, as well as Board
Committee composition.
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Role of the Board and Board Committees
The role of the Board is to provide leadership and strategic guidance for Westpac and its related bodies corporate, in
addition to overseeing the sound and prudent management of the Westpac Group. The Board Charter outlines the roles
and responsibilities of the Board. The Board Charter is available on our website.
Key Board responsibilities
•approving and overseeing management’s
implementation of the strategic direction of the
Group, its business plan and significant corporate
strategic initiatives;
•appointing the CEO and Chief Financial Officer, and
approving the appointment of Group Executives, the
General Manager of Group Audit and any other
person the Board determines;
•overseeing culture across the Group by setting the
tone from the top, approving the Group’s Code of
Conduct and Values and receiving reporting on the
Group’s culture;
•assessing and reviewing the performance of the
Board, its Board Committees, the CEO and the
Group Executives;
•providing oversight of the Group’s technology
strategy and the implementation of key
technology initiatives;
•approving the Group Remuneration Policy;
•approving, in accordance with the Group
Remuneration Policy, remuneration arrangements,
variable remuneration outcomes and adjustments to
variable remuneration where appropriate for Group
Executives, other employees who are accountable
persons under the Financial Accountability Regime,
any person performing a role specified by the
Australian Prudential Regulation Authority and any
other person the Board determines;
•approving the annual financial targets and financial
statements, and monitoring financial performance
against forecast and prior periods;
•
determining dividend policy and the amount, nature
and timing of dividends to be paid;
•approving the Internal Capital Adequacy Assessment
Process, including reviewing Group stress testing
outcomes/scenarios, and approving recovery and
resolution plans;
•considering and approving our overall risk
management framework for managing financial
and non-financial risk; approving the Group
Risk Management Framework, the Group Risk
Management Strategy and the Board Risk Appetite
Statement and monitoring the effectiveness of risk
management by the Group;
•forming a view of our risk culture and overseeing
the
identification of, and steps taken to address any
desirable changes to risk culture;
•considering the social, ethical and environmental
impact of our activities including the effects
of climate change, and setting standards and
monitoring compliance with our sustainability policies
and practices;
•overseeing and monitoring workplace health and
safety (WHS) issues in the Group and considering
appropriate WHS reports and information; and
•meeting with representatives from our principal
regulators on a regular basis.
BOARD RISK COMMITTEE
BOARD AUDIT COMMITTEE
BOARD REMUNERATION
COMMITTEE
BOARD NOMINATIONS &
GOVERNANCE COMMITTEE
Assists the Board to
consider and approve
the risk management
framework, oversee risk
culture, the risk profile
for material risks and risk
appetite. The Committee
also considers and
recommends key risk
policies and frameworks to
the Board for approval.
Assists the Board by
having oversight of the
integrity of financial
statements, financial
reporting systems and
corporate reporting.
The Committee also
oversees the external
auditor engagement and
the performance of
Group Audit.
Assists the Board to
discharge its
responsibilities in
relation to remuneration
matters, including by
overseeing the design,
operation and
monitoring of the
remuneration
framework.
Assists the Board by
overseeing that the
Board and boards of
related bodies corporate
comprise individuals who
are best able to discharge
their role as Directors.
The Committee also
oversees that corporate
governance arrangements
are appropriate.
50WESTPAC 2024 ANNUAL REPORT
CORPORATE GOVERNANCE
Board skills and experience
Westpac seeks to maintain a Board of Directors with a broad range of relevant financial and other skills, knowledge, and
experience necessary to guide the business of the Group. The Board uses a skills matrix to illustrate the key skills and
experience the Westpac Board is seeking to achieve in its membership collectively and the number of Directors with
each skill and experience.
The skills matrix also assists to identify focus areas for the continuing education and professional development of
Directors. For example, in FY24 these focus areas included cyber risk, technology developments, crisis management and
key environmental, social and governance topics (amongst others). The skills matrix also assists to identify areas where it
may be desirable for specialist external expertise to be retained to supplement the Board’s skills and experience.
BOARD SKILLS, EXPERIENCE AND ATTRIBUTES AS AT 30 SEPTEMBER 2024
SKILLS AND EXPERIENCEDESCRIPTIONNUMBER OF DIRECTORS
Customer
focus
Experience in developing and overseeing the embedding of a strong
customer-focused culture in large and complex organisations, and a
demonstrable commitment to achieving customer outcomes
Strategy
An ability to define strategic objectives, constructively question
business plans, oversee the implementation of strategy using
commercial judgement and bring a global perspective to bear
Financial
services
Experience working in, or advising, the banking and financial
services industry with strong knowledge of its economic drivers and
global business perspectives
Financial
acumen
Highly proficient in accounting or related financial management and
reporting for businesses of significant size
Risk
Experience in anticipating, recognising and managing risks,
including financial, non-financial and emerging risks, and monitoring
risk management frameworks and controls
Technology,
digital and
data
Experience in developing or overseeing the application of
technology in large and complex businesses, with particular
reference to technology- innovation, disruptive technologies, data,
cyber-security, digital transformation and customer experience
Governance
Experience as a Director of a listed entity, with detailed knowledge
of governance issues, with particular reference to the legal,
compliance, regulatory and voluntary frameworks applicable to
listed entities and highly regulated industries
Environment
and social
Experience in understanding and identifying potential risks and
opportunities arising from environmental and social issues, including
the transition to a climate resilient future, management of
biodiversity, and addressing human rights and modern slavery
within supply chains
People and
culture
Experience in people matters including workplace health and safety,
cultures, morale, inclusion and diversity, management development,
succession, remuneration and talent retention initiatives
Executive
leadership
Having held a CEO or a similar senior leadership role in a large
complex organisation, and having experience in managing the
business through periods of significant change and delivering
desired business outcomes
Deep experience and knowledgeGeneral working experience and knowledgeLimited working experience and knowledge
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Board diversity
A diverse group of skilled Directors helps us be a stronger
organisation that makes better decisions. We achieved our
2024 objective of 40% women, 40% men and 20% any
gender for the composition of the Board. We will focus on
maintaining alignment with this objective.
NUMBER OF FEMALE DIRECTORS ON THE BOARD
(4 OUT OF 10)
40%
FEMALE DIRECTORS
Female Male
Board tenure
The average Board tenure as at 30 September 2024 is
set out below. The length of service of each Director is
outlined in the Directors’ Report (pages 54-95).
AVERAGE BOARD TENURE
3.5 YEARS
AVERAGE BOARD TENURE
0-3 years 40% 3-6 years 40% 6-9 years 20%
Refer to our 2024 Corporate Governance Statement for more information on our corporate governance
framework, policies and practices at 4 November 2024. The Statement, along with the Board and Committee
Charters, principles and policies are available at westpac.com.au/corpgov.
Ethical decision making across
Westpac and Key Group policies
Ethical and responsible decision making is critical to
decision making at Westpac. Our Purpose, Values and
Behaviours, together with our Code of Conduct and
related policies and frameworks, are focused on instilling
and reinforcing an ethical and responsible decision-
making culture across the Group. We also have policies
that seek to manage our regulatory compliance and
human resource requirements and are subject to a range
of external industry codes, such as the Banking Code of
Practice and the ePayments Code.
Code of Conduct
Our Code of Conduct (Code) sets out a consistent
standard and establishes the expectations of our people
to do what is right. The Code goes beyond an obligation
to comply with laws and policies and is a key aspect of
improving conduct to seek to ensure fair outcomes for
customers, communities and each other.
Supporting the Code are numerous frameworks and
policies which outline our commitment to sustainable
business practices and behaviours. These include our
Purpose, Values and Behaviours, policies, and position
statements addressing human rights, climate change and
other environmental and social impacts.
Anti-Bribery and Corruption
We have no tolerance for any form of bribery or
corruption and have an Anti-Bribery and Corruption
Policy (ABC Policy) and related bribery and corruption
prevention standards, procedures and systems. Material
breaches of the ABC Policy are reported to the Board
Risk Committee.
Concern reporting and whistleblower protection
Our Speaking Up Policy encourages employees,
contractors, secondees, former employees, brokers,
service providers and suppliers to raise any concerns
about our activities or behaviours that may be unlawful
or unethical. Concerns can be raised anonymously by
using our reporting system ‘Concern Online’ and our
Whistleblower Hotline. The Board Audit Committee, in
conjunction with the Board Risk Committee, oversees
our Whistleblower Program. The Board Risk Committee
receives regular reporting on whistleblowing.
Conflicts of interest
Our conflicts of interest framework is designed to
identify and manage actual, potential and perceived
conflicts of interest. The conflicts of interest framework
includes the Group Conflicts of Interest Policy, along with
supporting policies, standards and procedures.
52WESTPAC 2024 ANNUAL REPORT
SUSTAINABILITY GOVERNANCE
The Board is responsible for considering the social, ethical and environmental impact of our activities. The Board
helps to set Westpac's strategic priorities for Sustainability by approving key policies such as the Climate Change
Position Statement and Human Rights Position Statement. It monitors progress against our Net-Zero Banking Alliance
commitment, as well as overseeing risks and opportunities.
The Board Risk Committee reviews and approves the Sustainability Risk Management Framework every two years
and reviews the monitoring of reputation and sustainability risk performance. See Risk Management (page 40) for
more information.
In relation to Board skills, the ‘Environment & Social’ category in the Board skills matrix in Corporate Governance
(page 48) reflects four directors with deep experience and knowledge and five with general working experience
and knowledge.
The Board and its Committees receive regular reports on climate-related matters from the CEO, Group Executives, and
other functions. The Board and Committee charters are available on our website.
Key sustainability-related agenda items for the Board and its Committees in FY24
Board•Provided oversight of the sustainability strategy, including receiving updates on
sustainability-related strategic initiatives;
•Approved the Climate Report;
•Approved Board Risk Appetite Statement which includes measures related to ESG scores
by sustainability rating agencies;
•Received updates on progress against NZBA sector targets; and
•Received training on environmental and social topics, including climate change and
human rights.
Board
Risk Committee
•Reviewed and recommended the Board Risk Appetite Statement to the Board for
approval, which included measures related to climate change risk; and
•Reviewed and monitored the Credit Risk and Reputation and Sustainability risk classes,
including measures related to climate risk.
Board
Audit Committee
•Received updates on sustainability reporting and standards (including climate
standards); and
•Provided oversight of the Climate Report, including recommending the Climate Report to
the Board for approval.
Board Remuneration
Committee
•Recommended a new climate change measure for the Group Short Term Variable
scorecard (STVR).
Role of management
The day-to-day management of Westpac’s approach to sustainability is the responsibility of the CEO and is delegated
to Group Executives and senior management where appropriate. The CEO and senior management work to integrate the
risks and opportunities of sustainability, including climate change, into our operations and ensure our people understand
their role in supporting the Group’s sustainability ambitions.
Several management committees help assess climate-related matters and support Executive management in their
decision making. These are summarised in the following chart.
Climate measures in executive remuneration
The Group STVR Scorecard includes a climate-related measure for the CEO and certain Group Executives, aimed at
delivering the climate transition plan. This measure is part of the broader ‘Strategic Execution’ key priority.
2024 progress is assessed using three measures:
1.The number of 2030 targets set for NZBA carbon-intensive sectors;
2.The number of top emitters engaged on transition plans; and
3.Performance against our annual plan of the 2030 Sustainable Finance Target.
Refer to the Remuneration Report (page 68) for information on performance against these measures.
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Sustainability Governance Structure
KEY
Flow of information relating to climate change-related targets and strategies.
Flow of information relating to climate-related disclosures.
Flow of information relating to the climate change-related risk management.
Participating Group departments in committees (including papers)
BOARD LEVEL
Board
Approves material sustainability positions (CCPS, NCPS, HRPS)
Approves Board Risk Appetite Statement (Board RAS), RMF, RMS
ESG & Reputation Committee
Meets at least 5 times per year.
Chaired by CEO
Supports decision making on significant sustainability and reputation
related matters, including monitoring of NZBA targets.
Approves our key sustainability positions
Group Executive Risk Committee
Meets at least 7 times per year.
Chaired by Chief Risk O cer
Review RMF, RMS, SRMF and Board RAS
Oversee the implementation and performance of the SRMF and key
supporting policies / controls and actions
MANAGEMENT LEVEL
Board Risk Committee
Approves Sustainability Risk Management
Framework (SRMF) and Credit Risk Management
Framework (CRMF) at least biennially
Reviews Board RAS, RMF, RMS annually
ESG Council
Chaired by divisional
Chief Executive
Supports coordination and
prioritisation of group-wide
ESG priorities
Group Credit Risk
Committee
Chaired by Deputy
Chief Risk O cer
Review and provide input on the
CRMF and Credit Risk Appetite
Statement (CRAS) for inclusion
in the Board RAS
ESG Risk
Line 2 risk function, Risk Class
Owner of Reputation and
Sustainability Risk.
Oversight and challenge the
management of sustainability
risk. Sets the Group’s approach
for sustainability risks, including
related frameworks and policies
such as the SRMF
ESG Disclosure
and Reporting
Under Group Finance.
Leads the Climate Report and
external sustainability
reporting. Works to improve
the Group’s alignment with
ESG related standards.
Calculate and report Group
financed emissions.
Divisions
Manage sustainability risk and
opportunities. Set NZBA targets
and baselines and reports on
progress.
Lead customer engagement
and assess risk and
opportunities in transactions
Group
Sustainability
Develops and maintains the
Group Sustainability Strategy,
Group Position Statements,
Sustainable Finance Taxonomy
and Modern Slavery Statement.
Leads the Group approach for
Climate, Nature and Human
Rights and leads external
engagement on sustainability
matters.
Group Property,
Procurement and
Protective Services
Manages the environmental
performance of the Group’s
operations. Works to reduce
the Group’s direct
environmental footprint.
Supports key suppliers with
sustainability strategies
Divisional Risk
Committees
Chaired by divisional
Chief Executive
Considers material sustainability
risks for division, including risk
profile assessments, and risk
appetite
Board Audit Committee
Reviews the sustainability disclosures in the
Annual Report and Climate Report and
recommends their approval to the Board
Executive Team
(CEO / divisional Chief Executives). Oversee Sustainability Strategy implementation
Board Remuneration Committee
Assists the Board by overseeing the design,
operation and monitoring of the remuneration
framework
GROUP DEPARTMENTS WITH SUSTAINABILITY RESPONSIBILITIES
Informs
Customer & Transaction Risk
Escalation Committee
Chaired by divisional Chief Executive.
Meets weekly (WIB) or as required (B&W)
– to escalate key transactions to relevant
executives for ESG review and decision
Climate Change Credit Risk Committee
Chaired by Deputy Chief Risk O cer
Review and provide input to the Group’s risk appetite
measures and thresholds related to climate-related
risk in CRAS and Board RAS
54WESTPAC 2024 ANNUAL REPORT
DIRECTORS’
REPORT
Our Directors present their report
together with the financial statements
of the Group for the financial year
ended 30 September 2024.
Directors
The names of the persons who have been Directors,
or appointed as Directors, during the period since
1 October 2023 and up to the date of this report are:
Steven Gregg (appointed as a Director on 7 November
2023 and appointed Chairman on 14 December 2023),
Peter King, John McFarlane (appointed as a Director on
17 February 2020, appointed as Chairman on 2 April
2020 and retired as Chairman and as a Director on
14 December 2023), Tim Burroughs, Nerida Caesar,
Audette Exel AO, Andy Maguire (appointed as a Director
15 July 2024), Christopher Lynch (appointed as a Director
on 1 September 2020 and retired as a Director on
14 December 2023), Peter Nash, Nora Scheinkestel,
Margaret Seale and Michael Ullmer AO. Particulars of
the skills, experience, expertise and responsibilities of
the Directors at the date of this report, including
all directorships of other listed companies held by a
Director at any time in the three years immediately
before 30 September 2024, and the period for which
each directorship has been held, are set out in the
following pages.
Board Committee Member Key
Chair of each Committee is noted with a red icon.
Board Audit
Board Nominations & Governance
Board Remuneration
Board Risk
Board of Directors
Steven Gregg
BCom
Age: 63
CHAIRMAN AND INDEPENDENT
NON-EXECUTIVE DIRECTOR
Appointed: Director since November
2023 and Chairman since
December 2023.
Board Committees: Chairman
of the Board Nominations &
Governance Committee.
Experience: Steven has more than 35
years' experience in global financial
services, strategy consulting and
professional services across Australia,
Asia, Europe and the US. Steven has
extensive experience in global investment
banking, including through senior roles
with ABN Amro, Chase Manhattan,
Lehman Brothers and AMP Morgan
Grenfell. His most recent executive role
was as a partner at McKinsey & Company
where he advised clients in Financial
Services and other sectors, primarily in
Australia and Asia.
Steven has served as Chairman and
Director for companies across various
sectors and is currently Chairman of
Ampol Limited and the Lorna Hodgkinson
Foundation (and a Director of Unisson
Disability Limited). Steven is also a
Director of William Inglis & Son Limited.
Steven was formerly the Chairman
of The Lottery Corporation, Tabcorp
Holdings Limited, Goodman Fielder
Limited and Austock Group Limited, and
formerly a Non-executive Director at
Challenger Limited.
Directorships of listed entities over the
past three years: Ampol Limited (since
October 2015), The Lottery Corporation
Limited (May 2022 to March 2024),
Challenger Limited (October 2012 to
October 2023) and Tabcorp Holdings
Limited (July 2012 to May 2022).
Other principal directorships and
interests: Chairman of the Lorna
Hodgkinson Foundation (and a Director
of Unisson Disability Limited).
Board Committees:
STRATEGIC
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SHAREHOLDER
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Peter King
BEc, FCA
Age: 54
MANAGING DIRECTOR AND
CHIEF EXECUTIVE OFFICER
Appointed: Director since
December 2019.
Board Committees: Nil.
Experience: Peter was appointed
Westpac Group Chief Executive Officer in
April 2020. Peter previously held this role
on an acting basis between December
2019 and March 2020.
Since joining the Westpac Group in
1994, Peter also held senior finance roles
including Chief Financial Officer with
responsibility for Westpac’s Finance, Tax,
Treasury and Investor Relations functions.
He has worked in senior finance roles
across the Group including in Group
Finance, Business and Consumer Banking,
Business and Technology Services,
Treasury and Financial Markets.
Peter commenced his career at Deloitte
Touche Tohmatsu. He has a Bachelor of
Economics from Sydney University and
completed the Advanced Management
Programme at INSEAD. He is a Director of
the Australian Banking Association (ABA)
and also a Fellow of the Institute of
Chartered Accountants.
Directorships of listed entities over the
past three years: Nil.
Other principal directorships and
interests: Director of the Australian
Banking Association Incorporated,
Director of the Institute of International
Finance, Director of Financial Markets
Foundation for Children and Director
of Jawun.
Board Committees:
Nil.
Tim Burroughs
MA (Hons), B Psy (Hons), FCA, FAICD
Age: 70
INDEPENDENT NON-
EXECUTIVE DIRECTOR
Appointed: Director since March 2023.
Board Committees: Member of the Board
Remuneration and Board Risk Committee.
Experience: Tim has over 40 years'
experience in finance, international
banking and mergers and acquisitions.
Tim was formerly Chairman of Investment
Banking at Goldman Sachs Australia,
where he worked for 11 years. Prior to
this, Tim held senior positions at Merrill
Lynch including Chairman of Mergers and
Acquisitions. From 1993 to 1997, Tim was
Principal at Centaurus Corporate Finance,
a leading independent advisory firm.
Over the course of his career, Tim
has specialised in providing strategic
financial advice to major corporations and
their boards. He has advised on capital
restructures, capital raisings and more
than 100 public company acquisitions.
Tim has an engineering degree from
Cambridge University and is a Fellow of
the Institute of Chartered Accountants.
Tim has also studied and taught
Psychology at Macquarie University.
Directorships of listed entities over the
past three years: Nil.
Other principal directorships and
interests: Panel member of Adara
Partners (Australia) Pty Ltd.
Board Committees:
Nerida Caesar
BCom, MBA, GAICD
Age: 60
INDEPENDENT NON-
EXECUTIVE DIRECTOR
Appointed: Director since
September 2017.
Board Committees: Member of the Board
Audit Committee.
Experience: Nerida has over 38 years of
broad ranging commercial and business
management experience, with particular
depth in technology-led businesses.
Nerida was Group Managing Director and
Chief Executive
Officer, Australia and New
Zealand, of Equifax (formerly the ASX-
listed Veda Group Limited) and was also
a former director of Genome One Pty Ltd
and Stone and Chalk Limited.
Before joining Equifax, Nerida held several
senior management roles at Telstra,
including Group Managing Director,
Enterprise and Government and Group
Managing Director, Wholesale. Nerida
also held several executive and senior
management positions with IBM within
Australia and internationally, including
as Vice President of IBM’s Intel Server
Division for the Asia Pacific region.
Directorships of listed entities over the
past three years: Nil.
Other principal directorships and
interests: Co-Chair of Good2Give and its
subsidiaries Workplace Giving Australia,
Good2Give Research & Technology Fund
and ShareGift. Director of NBN Co
Ltd, Director of CreditorWatch and
Director of O’Connell Street Associates
Pty Ltd. Advisor to startups in the
technology sector.
Board Committees:
56WESTPAC 2024 ANNUAL REPORT
DIRECTORS’ REPORT
Audette Exel AO
BA, LLB (Hons)
Age: 61
INDEPENDENT NON-
EXECUTIVE DIRECTOR
Appointed: Director since
September 2021.
Board Committees: Chair of the Board
Risk Committee, Member of the Board
Audit Committee.
Experience: Audette has more than
35 years' experience in the global
financial services markets as a senior
executive, a non-executive director and
as a social entrepreneur. Audette was
formerly the Managing Director of BSX-
listed Bermuda Commercial Bank (1993
to 1996), Chair of the Bermuda Stock
Exchange (1995 to 1996) and a Director
and Chair of the Investment Committee
of the Bermuda Monetary Authority
(1999 to 2005). She was a Director and
Chair of the Investment Committee of
Steamship Mutual (1999 to 2017). She
began her career as a lawyer specialising
in international
finance. Audette is the
founder and Chair of the Adara Group, a
pioneering social enterprise which exists
to support people living in extreme
poverty and is the Chief Executive Officer
of its corporate advice businesses. She
is the recipient of numerous awards,
including an honorary Order of Australia
for service to humanity.
Directorships of listed entities over the
past three years: Nil.
Other principal directorships and
interests: Founder and Chair of
Adara Development Australia, Adara
Development USA, Adara Development
Bermuda, Adara Development UK and
Adara Development Uganda. CEO
and Director of Adara Advisors Pty
Limited and Adara Partners (Australia)
Pty Limited.
Board Committees:
Andy Maguire
BA, BAI
Age: 58
INDEPENDENT NON-
EXECUTIVE DIRECTOR
Appointed: Director since July 2024.
Board Committees: Nil.
Experience: Andy has more than 35
years' experience in financial services
and began his career in banking at
Lloyds Banking Group. From 2014 to
2020, he was Group Chief Operating
Officer at HSBC Holdings plc with
responsibility for operations, technology,
real estate, change and transformation
and operational resilience.
Previously he spent 16 years with the
Boston Consulting Group, where he
became Managing Partner of the London
office covering the UK and Ireland, and
a member of the firm’s global executive
committee, as well as formerly serving as
Global Head of Retail Banking.
Andy is currently Chairman of UK banking
software fintech Thought Machine Group.
He is also an independent Non-executive
Director of AIB Group plc, a financial
services group operating predominantly
in the Republic of Ireland and the UK.
Andy previously held Chair positions with
RegTech compliance company Napier AI
and IT service management provider CX
Holdings (Cennox Group).
Directorships of listed entities over the
past three years: AIB Group plc (since
March 2021).
Other principal directorships and
interests: Chairman of Thought
Machine Group.
Board Committees:
Nil.
Peter Nash
BCom, FCA, F Fin
Age: 62
INDEPENDENT NON-
EXECUTIVE DIRECTOR
Appointed: Director since March 2018.
Board Committees: Chair of the Board
Audit Committee. Member of the
Board Risk and Board Nominations &
Governance Committees.
Experience: Peter was formerly a Senior
Partner with KPMG, having been admitted
to the Australian partnership in 1993. He
served as the National Chairman of KPMG
Australia and served on KPMG’s Global
and Regional Boards.
His previous positions with KPMG
included Regional Head of Audit
for Asia Pacific, National Managing
Partner for Audit in Australia and
head of KPMG Financial Services. Peter
has worked in geographically diverse
and complex operating environments
providing advice on a range of
topics including business strategy, risk
management, internal controls, business
processes and regulatory change. He has
also provided financial and commercial
advice to many State and Federal
Government businesses.
Peter is a former member of the Business
Council of Australia and its Economic and
Regulatory Committee.
Directorships of listed entities over the
past three years: Johns Lyng Group
Limited (Chairman since October 2017),
Mirvac Group (since November 2018) and
ASX Limited (since June 2019).
Other principal directorships and
interests: Director of the General Sir John
Monash Foundation.
Board Committees:
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STATEMENTS
SHAREHOLDER
INFORMATION
57
Nora Scheinkestel
LLB (Hons), PhD, FAICD
Age: 64
INDEPENDENT NON-
EXECUTIVE DIRECTOR
Appointed: Director since March 2021.
Board Committees: Chair of the Board
Remuneration Committee. Member of the
Board Risk Committee.
Experience: Nora is an experienced
company director with a background as
a senior banking executive in international
and project financing. Nora has served
as Chairman and Director in a range
of companies across various industry
sectors and in the public, private and
government arena. Previously, Nora was
a director of a number of other major
ASX-listed companies, was formerly a
member of the Takeovers Panel and was
an Associate Professor in the Melbourne
Business School at Melbourne University.
In 2003, Nora was awarded a centenary
medal for services to Australian society in
business leadership.
Directorships of listed entities over the
past three years: Qantas Airways Limited
(since March 2024), Brambles Limited
(since June 2020), Origin Energy Limited
(since March 2022), Telstra Corporation
Limited (August 2010 to October 2022)
and AusNet Services Ltd (November 2016
to February 2022).
Other principal directorships and
interests: Nil.
Board Committees:
Margaret (Margie) Seale
BA, FAICD
Age: 64
INDEPENDENT NON-
EXECUTIVE DIRECTOR
Appointed: Director since March 2019.
Board Committees: Member of the Board
Remuneration and Board Nominations &
Governance Committees.
Experience: Margie has more than 25
years' experience in senior executive
roles in Australia and overseas, including
in consumer goods, global publishing,
sales and marketing, and the successful
transition of traditional business models
to digital environments. Prior to her
non-executive career, Margie was the
Managing Director of Random House
Australia and New Zealand and President,
Asia Development for Random House
Inc. Margie was a Director and then
Chair of Penguin Random House Australia
Pty Limited, and a Director of Telstra
Corporation Limited, Ramsay Health Care
Limited, Bank of Queensland Limited
and the Australian Publishers’ Association.
She also served on the Boards of
Chief Executive Women (chairing its
Scholarship Committee), the Powerhouse
Museum, and the Sydney Writers Festival.
Directorships of listed entities over
the past three years: Scentre Group
Limited (since February 2016) and
Telstra Corporation Limited (May 2012 to
October 2021).
Other principal directorships and
interests: Director of Westpac Scholars
Limited, Seaborn Broughton & Walford
Pty Limited, Pinchgut Opera Limited and
Jana Investment Advisers Pty Ltd.
Board Committees:
Michael Ullmer AO
BSc, FAICD, FCA, SF Fin
Age: 73
INDEPENDENT NON-
EXECUTIVE DIRECTOR
Appointed: Director since April 2023.
Board Committees: Member of the Board
Audit and Board Risk Committees.
Experience: Michael has more than 40
years' experience in international banking,
finance and professional services. Michael
was formerly the Deputy Group Chief
Executive Officer of the National Australia
Bank (NAB) from 2007 until he retired
from the Bank in August 2011. He
joined NAB in 2004 as Finance Director
and held a number of key positions
including Chairman of the subsidiaries
Great Western Bank (US) and JB
Were. Prior to NAB, Michael was at
Commonwealth Bank of Australia, initially
as Group Chief Financial
Officer and then
Group Executive with responsibility for
Institutional and Business Banking. Before
that, he was a Partner at accounting firms
KPMG (1982 to 1992) and Coopers &
Lybrand (1992 to 1997).
From a philanthropic perspective,
throughout his career Michael has been
heavily involved in supporting the Arts
and Education sectors.
Directorships of listed entities over the
past three years: Lendlease Corporation
Limited (Director since December 2011
and Chairman since November 2018) and
Woolworths Limited (January 2012 to
October 2021).
Other principal directorships and
interests: Member of the National Gallery
of Victoria Foundation Board.
Board Committees:
58WESTPAC 2024 ANNUAL REPORT
DIRECTORS’ REPORT
Executive Team
Peter King
BEc, FCA
Age: 54
MANAGING DIRECTOR AND
CHIEF EXECUTIVE OFFICER,
WESTPAC GROUP
Peter was appointed Westpac
Group Chief Executive Officer
in April 2020, after holding
the role on an acting basis
between December 2019 and
March 2020.
Since joining Westpac in
1994, Peter has held
senior
finance roles including
Chief Financial Officer with
responsibility for Westpac’s
Finance, Group Audit, Tax,
Treasury and Investor Relations
functions. He has worked in
senior finance roles across
the Group including in
Group Finance, Business and
Consumer Banking, Business
and Technology Services,
Treasury and Financial Markets.
Peter commenced his career
at Deloitte Touche Tohmatsu.
He has a Bachelor of
Economics from Sydney
University and completed
the Advanced Management
Programme at INSEAD.
Peter is a Director of the
Australian Banking Association
(ABA) and he is also a
Fellow of the Institute of
Chartered Accountants.
Scott Collary
BA, Humanities
Age: 60
GROUP CHIEF INFORMATION
OFFICER, TECHNOLOGY
Scott was appointed as the
Group’s Chief Information
Officer in August 2023. Prior to
this, he held the role of Group
Executive, Customer Services
& Technology after joining
Westpac as Chief Operating
Officer in November 2020.
Scott has over 37 years'
global banking experience,
with a breadth of
expertise across technology,
operations, risk mitigation and
commercial functions.
Before joining Westpac, Scott
was Chief Information &
Operations Officer for North
America Consumer, Business,
Wealth and Global Asset
Management Businesses at
Bank of Montreal, Canada.
Prior to that, Scott held
senior executive positions at
a number of multinational
financial institutions including
ANZ, Citibank, Fifth Third Bank
and Bank of America.
Scott holds a Bachelor’s
Degree from the University of
Maryland, College Park in the
United States.
Shannon Finch
BA (Hons), LLB (Hons), FGIA
Age: 54
GROUP GENERAL COUNSEL
Shannon joined Westpac
in November 2021 and
leads Westpac’s legal
function globally.
Shannon has nearly 30 years
legal experience including
with the Commonwealth
Attorney General’s
Department Corporations Law
Simplification Unit, Mallesons
Stephen Jaques (now King &
Wood Mallesons) in Canberra,
London and Sydney, including
as head of the Sydney office,
and as a senior partner of
global corporate law firm
Jones Day.
Shannon is a member of the
Business Law Executive of
the Law Council of Australia,
the Advisory Committee to
the Australian Law Reform
Commission’s Review of the
Legislative Framework for
Corporations and Financial
Services Regulation and
the Australian Institute of
Company Directors (AICD)
Law Committee.
Shannon has experience as
a Non-executive Director, is
a member of the AICD and
Chief Executive Women, and
is a Fellow of the Governance
Institute of Australia. Shannon
has a Bachelor of Arts
(Hons) and Bachelor of Laws
(Hons) from the Australian
National University.
Nell Hutton
BCom (Hons), MPhil, GAICD
Age: 48
CHIEF EXECUTIVE, WESTPAC
INSTITUTIONAL BANK
Nell was appointed
Chief Executive, Westpac
Institutional Bank in October
2023. The Institutional Bank
provides a range of banking
services to Commercial,
Corporate, Institutional and
Public Sector customers with
connections to Australia, New
Zealand, Asia, Europe and
US markets.
Nell first joined Westpac in
February 2021 as Managing
Director, Financial Markets,
after 21 years at Goldman
Sachs in London and Australia,
most recently as Head of
the Global Markets division in
Australia and New Zealand.
She holds a Master of
Philosophy in Finance and
Economics from Cambridge
University and a Bachelor
of Commerce (First Class
Honours) from the University
of Sydney.
Nell is Deputy Chair of the
Australian Financial Markets
Association, and a member
of the AICD and Chief
Executive Women.
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59
Carolyn McCann
BBus (Com), BA,
GradDipAppFin, GAICD
Age: 52
GROUP EXECUTIVE, CUSTOMER
& CORPORATE SERVICES
Carolyn has been part of
the Westpac Group Executive
team since 2018 and is
currently Group Executive,
Customer & Corporate
Services, responsible for
operations and customer
support services. The division
brings together customer
solutions, fraud prevention,
customer operations, property,
procurement and protective
services, corporate
affairs, HR
and Finance Services. Carolyn
has more than 27 years’
experience in financial services.
Carolyn joined Westpac in
2013, as General Manager,
Corporate Affairs and
Sustainability. Prior to joining
Westpac, Carolyn spent 13
years at Insurance Australia
Group in various positions,
including Group General
Manager, Corporate Affairs and
Investor Relations. She began
her career in consulting in
financial services.
Carolyn has a Bachelor of
Arts from The University of
Queensland, a Bachelor of
Business from Queensland
University of Technology,
and a Graduate Diploma
of Applied Finance and
Investment from the Securities
Institute of Australia. She is
a member of the Australian
Institute of Company Directors
(AICD) and Chief Executive
Women (CEW).
Catherine McGrath
LLB/BCom
Age: 53
CHIEF EXECUTIVE OFFICER,
WESTPAC NEW ZEALAND
Catherine was appointed
Chief Executive Officer of
Westpac New Zealand in
November 2021.
She has more than 25 years'
experience working in financial
services, spanning business,
operational and people
leadership roles to which she
has driven
significant people,
structural, technology and
strategic change.
Prior to joining Westpac,
Catherine led large-scale
transformations at some of
the world’s best known banks
including Barclays Group
and Lloyds TSB in the
UK. This included various
positions such as Head of
Channels, Managing Director
of Transaction Products and
Payments, and Transaction
Banking Director. Earlier in her
career she worked at BNZ,
ASB and the Prudential Group.
Catherine was raised in New
Zealand. She graduated from
Canterbury University with
a Bachelor of Law and a
Bachelor of Commerce.
Anthony Miller
LLB (Hons), BA
Age: 54
CHIEF EXECUTIVE, BUSINESS
& WEALTH
1
Anthony Miller first joined
Westpac Group in 2020 and
was appointed Chief Executive,
Business & Wealth in August
2023. He has responsibility for
providing a range of banking
and wealth services for small
to medium and commercial
sized businesses, merchants,
private wealth, sustainability,
Westpac’s
Pacific banking
business and BT.
Previously he was the
Chief Executive of Westpac’s
Institutional Bank.
Before joining Westpac Group,
Anthony was CEO of Australia
& New Zealand and Co-Head
of Investment Bank, Asia
Pacific at Deutsche Bank
from 2017.
Prior to Deutsche Bank,
Anthony was a partner
at Goldman Sachs based
in Hong Kong within the
investment banking division
and previously held several
roles at Goldman Sachs in
Australia and New Zealand
having joined the organisation
in 2001. Before joining
Goldman Sachs, Anthony
worked at Credit Suisse.
Anthony holds a Bachelor
of Law (Honours) from
Queensland University of
Technology, and Bachelor of
Arts (Japanese Language,
Modern Asian Studies) from
Griffith University.
Christine Parker
BGDipBus (HRM)
Age: 64
GROUP EXECUTIVE,
HUMAN RESOURCES
Christine was appointed to
Westpac Group’s Executive
Team in October 2011.
Christine holds leadership
responsibility for the Human
Resources function across
the Westpac Group. She is
responsible for the Westpac
Group’s human resources
strategy and management,
including reward and
recognition, safety, learning
and development, careers and
talent, employee relations and
employment policy.
Christine is also responsible
for the office of the Financial
Accountability Regime (FAR)
and supports the CEO and
Board on culture and conduct.
Since joining Westpac in
2007, Christine has held a
variety of senior leadership
roles including Group General
Manager, Human Resources
and General Manager, Human
Resources for Westpac New
Zealand Limited.
Before joining Westpac,
Christine held senior HR
roles in a number of high
profile organisations and
across a range of industries,
including Carter Holt Harvey
and Restaurant Brands New
Zealand. Christine is currently
Chair of the St.George
Foundation and a Director
of Westpac New Zealand.
Previously, Christine was a
Director of Orygen Youth
Mental Health Foundation
and Women’s Community
Shelters and a member of
the Veterans’ Employment
Industry Advisory Committee.
1.
On 9 September 2024, Westpac announced that Anthony Miller will succeed Peter King as CEO and Managing Director. Mr Miller's
appointment will commence on 16 December 2024 following Mr King's retirement as CEO and Managing Director. Commencing on
5 November 2024, Peter Herbert, the Chief Operating Officer, Business & Wealth, will become the Acting Chief Executive, Business & Wealth.
60WESTPAC 2024 ANNUAL REPORT
DIRECTORS’ REPORT
Michael Rowland
B.Comm, FCA
Age: 63
CHIEF FINANCIAL OFFICER
Michael joined Westpac
Group as Chief Financial
Officer in September 2020.
He is responsible for
Westpac’s Finance, Group
Audit, Investor Relations, Tax,
Treasury, Group Business
Controls and Management
and Corporate and Business
Development functions.
Before joining Westpac,
Michael was a Partner in
Management Consulting at
KPMG. Before that he held
a number of senior executive
positions at ANZ from 1999
to 2013. These included CFO
Institutional Banking, CFO
Wealth, CFO New Zealand,
CFO Personal Financial
Services, and business
leadership roles as CEO
Pacific, Managing Director
Mortgages and General
Manager, Transformation.
Michael commenced his career
at KPMG, where he was
promoted to become a Tax
Partner in 1993.
Michael holds a Bachelor of
Commerce from the University
of Melbourne and a Graduate
Diploma of Taxation Law
from Monash University. He
is a Fellow of the Institute
of Chartered Accountants in
Australia and New Zealand.
Jason Yetton
B.Comm (Finance &
Mktg), GradDipAppFin
Age: 53
CHIEF EXECUTIVE, CONSUMER
Jason was appointed Chief
Executive, Consumer in
August 2023.
The Consumer segment
provides a full range
of banking products and
services including mortgages,
credit cards, personal loans
and deposits to customers
in Australia.
Previously he led the Group’s
Specialist Businesses Division
overseeing a number of
investments and business
divestments to create a
simpler, stronger bank. He
has also held a number
of Group Executive roles
with Westpac at different
times for more than 20
years including Group Strategy,
Westpac Retail and Business
Banking, and senior positions
in BT Financial Group.
Outside of Westpac, Jason
has been Chief Executive
Officer NewCo, CBA, where
he was appointed to lead
the demerger of its wealth
management and mortgage
broking businesses. Prior to
that, he was Chief Executive
Officer and Managing
Director, SocietyOne, an early
financial services disrupter
and consumer finance
marketplace lender.
Jason holds a Bachelor of
Commerce (Marketing and
Finance) from the University
of New South Wales and a
Graduate Diploma in Applied
Finance and Investment
from the Securities Institute
of Australia.
Ryan Zanin
CFA
Age: 62
CHIEF RISK OFFICER
Ryan was appointed Chief
Risk Officer in April 2022.
Ryan is responsible for
risk management across
the Group, which includes
credit risk, operational risk,
financial crime, compliance
and conduct.
Ryan has over 30 years
experience in
financial
services specialising in risk
management. Prior to joining
Westpac Group, Ryan was
Executive Vice President and
Chief Risk Officer at Fannie
Mae overseeing the company’s
governance and strategy for
global risk management.
Prior to Fannie Mae, Ryan held
senior positions at GE Capital,
Wells Fargo & Company and
Deutsche Bank. Ryan has
also been on the Board
of Fannie Mae and General
Electric Capital Corporation.
A Canadian, Ryan began his
career at the Bank of Montreal
before taking on various roles
across Citibank and Bankers
Trust Company.
Ryan is a Chartered
Financial Analyst.
Tim Hartin
LLB (Hons.)
Age: 49
COMPANY SECRETARY
Tim was appointed Company
Secretary in November 2011.
Before that appointment, Tim
was Head of Legal – Risk
Management & Workouts,
Counsel & Secretariat and
prior to that, he was Counsel,
Corporate Core.
Before joining Westpac in
2006, Tim was a Consultant
with Gilbert + Tobin,
where he provided corporate
advisory services to ASX-listed
companies. Tim was previously
a lawyer at Henderson Boyd
Jackson W.S. in Scotland and
in London in Herbert Smith’s
corporate and corporate
finance division.
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61
Executive Team
POSITIONYEAR JOINED GROUP
YEAR APPOINTED
TO POSITION
Peter King
Managing Director & Chief Executive Officer
19942020
Scott Collary
Group Chief Information Officer, Technology
20202023
Shannon Finch
Group General Counsel
20212021
Nell Hutton
Chief Executive, Westpac Institutional Bank
20212023
Carolyn McCann
Group Executive, Customer & Corporate Services
20132023
Catherine McGrath
Chief Executive Officer, Westpac New Zealand
20212021
Anthony Miller
Chief Executive, Business & Wealth
20202023
Christine Parker
Group Executive, Human Resources
20072011
Michael Rowland
Chief Financial Officer
20202020
Jason Yetton
Chief Executive, Consumer
20202023
Ryan Zanin
Chief Risk Officer
20222022
62WESTPAC 2024 ANNUAL REPORT
DIRECTORS’ REPORT
Operating and financial review
Principal activities
The principal activities of the Group during the financial year ended 30 September 2024 were the provision of financial
services including lending, deposit taking, payments services, investment platforms, leasing finance, general finance,
interest rate risk management and foreign exchange services.
There have been no significant changes in the nature of the principal activities of the Group during 2024.
Operations and financial performance
Net profit for 2024 was $6,990 million, a decrease of 3% compared to 2023, which reduced basic earnings per share
by 2%.
The decrease in net profit reflects lower income and higher expenses partly offset by a decrease in credit
impairment charges.
The following is a summary of the movements in major line items in net profit for 2024 compared to 2023.
Net interest income increased by $436 million or 2% driven by growth in average interest earning assets of 3%, which
was tempered by a 2 basis point contraction in net interest margin. Key movements in net interest margin included:
•Lower spreads on loans mainly reflecting competition for mortgages;
•Benefits from the investment of capital in a rising rate environment; and
•The impact of higher unrealised losses of $171 million (2023: $113 million) on fair value movements of non-hedge
accounted economic hedges.
Non-interest income was $493 million or 15% lower. The key movements included:
•Lower contribution from our wealth management business following business sales in 2023, with businesses sold
contributing $140 million in 2023;
•No gains on sales of controlled entities and other businesses, compared to gains of $268 million in 2023; and
•Adverse market movements impacted the value of financial instruments measured at fair value in 2024 by
$24 million, compared to a gain of $78 million in 2023.
Operating expenses were $252 million or 2% higher. The key movements included:
•A $279 million increase in amortisation and impairment of software assets from projects completed; and
•A $136 million increase in technology services expenses from inflationary pressure and the impact of our UNITE
program; partly offset by
•Reduced employee costs of $199 million mainly from lower restructuring costs.
Credit impairment charges of $537 million represented 7 basis points of average gross loans compared to 9 basis points
of average gross loans in 2023. The decrease primarily reflected lower collectively assessed provisions.
The effective tax rate was 30.84% in 2024 was slightly higher than the Australian corporate tax rate of 30%, due to
certain non tax deductible expenses.
A review of the operations of the Group and its segments and their results for the financial year ended
30 September 2024 is set out in the sections Group performance (pages 104-129) and Segment reporting (pages
130-141), which form part of this Directors' report. Further information about our financial position and financial results
is included in the Financial Statements (pages 143- 279) which form part of this Directors' report.
Dividends
Westpac has announced a final ordinary dividend of 76 cents per Westpac ordinary share, totalling approximately
$2,615 million. The dividend will be fully franked and will be paid on 19 December 2024.
In 2024, an interim ordinary dividend of 75 cents and a special dividend of 15 cents per Westpac ordinary share totalling
$3,125 million was paid as a fully franked dividend on 25 June 2024 (2023: 70 cents totalling to $2,456 million was paid
as interim ordinary dividend).
For the year ended 30 September 2023, a fully franked final dividend of 72 cents per ordinary share totalling
$2,527 million was paid on 19 December 2023.
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SHAREHOLDER
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63
Significant changes in state of affairs and events during and since the end of the 2024 financial year
Significant changes in the state of affairs of the Group during the financial year ended 30 September 2024, or that have
occurred since that date, were:
•On 14 December 2023, at the conclusion of the AGM, Steven Gregg succeeded John McFarlane as Chairman of the
Board following Mr McFarlane’s retirement.
•The announcement that Anthony Miller will succeed Peter King as CEO and Managing Director, effective following Mr
King’s retirement as CEO and Managing Director.
•The commencement of UNITE, a multi-year programme of work to accelerate our technology and
business simplification.
•The announcement by APRA on 19 July 2024 of its decision to reduce Westpac’s total operational risk capital overlay
from $1 billion to $500 million.
•The delivery of the CORE program and completion of the Integrated Plan required by the 2020 enforceable
undertaking with APRA in relation to our risk governance remediation, and supporting the strengthening of our
risk governance, accountability, and culture. We are continuing to focus on the sustainability and effectiveness of the
uplift delivered by the Integrated Plan through a transition phase.
For a discussion of these changes and other significant developments, please refer to Significant developments (pages
96-98) which forms part of this Directors' report.
The Directors are not aware of any other matter or circumstance that has occurred since 30 September 2024 that has
significantly affected or may significantly affect the operations of the Group, the results of these operations or the state
of affairs of the Group in subsequent financial years.
Business strategies, developments and expected results
Our business strategies, prospects and likely major developments in the Group’s operations in future financial years
and the expected results of those operations are discussed in the Strategic Review (pages 4- 98) and in Significant
developments (pages 96-98) which forms part of this Directors' report.
Further information on our business strategies and prospects for the future financial years and likely developments in our
operations and the expected results of operations have not been included in this report because the Directors believe it
would be likely to result in unreasonable prejudice to Westpac.
Risks to our
financial performance, position and our operations
Our financial position, our future financial results, our operations and the success of our strategy are subject to a range
of risks. These risks are set out and discussed in the Risk Management section (pages 40-47) which forms part of the
Directors' report. For additional information on risks relating to Westpac, refer to "2024 Risk Factors" as disclosed on the
ASX on the same date as this report.
64WESTPAC 2024 ANNUAL REPORT
DIRECTORS’ REPORT
Directors’ interests
Directors’ interests in securities
The following particulars for each Director are set out in the Remuneration Report (pages 68- 93) of the Directors’
report for the year ended 30 September 2024 and/or in the table below:
•Their relevant interests in our shares or the shares of any of our related bodies corporate;
•Their relevant interests in debentures of, or interests in, a registered scheme made available by us or any of our
related bodies corporate;
•Their rights or options over shares in, debentures of, or interests in, any registered scheme made available by us or
any of our related bodies corporate; and
•Any contracts:
–To which the Director is a party or under which they are entitled to a benefit; and
–That confer a right to call for or deliver shares in, debentures of, or interests in, a registered scheme made
available by us or any of our related bodies corporate.
Directors’ interests in Westpac and related bodies corporate as at 3 November 2024
Number of Relevant Interests
in Westpac Ordinary Shares
Number of Westpac
Share Rights
Westpac Banking Corporation
Current Directors
Steven Gregg75,208-
Peter King262,333
a
541,684
b
Tim Burroughs67,302-
Nerida Caesar13,583-
Audette Exel11,952-
Andy Maguire--
Peter Nash15,260-
Nora Scheinkestel17,225
Margaret Seale
c
10,438-
Michael Ullmer
d
12,570-
Former Directors
John McFarlane
e
45,000
Chris Lynch
f
13,090-
a.Peter King’s interest in Westpac ordinary shares includes 24,403 restricted shares held under the Equity Incentive Plan.
b.Share rights issued under the Long Term Variable Reward Plan and Equity Incentive Plan.
c.Margaret Seale and her related bodies corporate also hold relevant interests in 100 Westpac Capital Notes 7 (ASX: WBCPJ).
d.Michael Ullmer and his related bodies corporate also hold relevant interests in 800 Westpac Capital Notes 5 (ASX:WBCPH), 300 Westpac
Capital Notes 9 (WBCPL) and 1,000 Westpac Subordinated Notes.
e.Figure displayed is as at John McFarlane’s retirement date of 14 December 2023.
f.Figure displayed is as at Chris Lynch’s retirement date of 14 December 2023. In addition, Chris Lynch and his related bodies corporate also held
relevant interests in 1,137 Westpac Capital Notes 5 (ASX:WBCPH) as at his retirement date of 14 December 2023.
Note: Certain subsidiaries of Westpac offer a range of registered schemes. The Directors may from time to time invest
in these schemes and are required to provide a statement to the ASX when any of their interests in these schemes
change. ASIC has exempted each Director from the obligation to notify the ASX of a relevant interest in a security that
is an interest in BT Cash Management Trust (ARSN 087 531 539), BT Premium Cash Fund (ARSN 089 299 730), BT
Investor Choice Cash Management Trust (formerly Westpac Cash Management Trust) (ARSN 088 187 928) or Advance
Cash Multi-Blend Fund (ARSN 094 113 050).
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65
Indemnities and insurance
Under the Westpac Constitution, unless it is forbidden or would be made void by statute, we indemnify any person who
is or has been a Director or Company Secretary of Westpac and of each of our related bodies corporate (except related
bodies corporate listed on a recognised stock exchange), any person who is or has been an employee of Westpac or our
subsidiaries (except subsidiaries listed on a recognised stock exchange), and any person who is or has been acting as
a responsible manager under the terms of an Australian Financial Services Licence of any of Westpac’s wholly-owned
subsidiaries against every liability (other than a liability for legal costs) incurred by each such person in their capacity
as director, company secretary, employee or responsible manager, as the case may be; and all legal costs incurred in
defending or resisting (or otherwise in connection with) proceedings, whether civil or criminal or of an administrative or
investigatory nature, in which the person becomes involved because of that capacity.
Each of the Directors named in this Directors’ report and the Company Secretary of Westpac has the benefit of
this indemnity.
Consistent with shareholder approval at the 2000 Annual General Meeting, Westpac has entered into a Deed of Access
and Indemnity with each of the Directors, which includes indemnification in identical terms to that provided in the
Westpac Constitution.
Westpac also executed a deed poll in September 2009 providing indemnification equivalent to that provided under the
Westpac Constitution to individuals who are or have been acting as:
•statutory officers (other than as a director) of Westpac;
•directors and other statutory officers of wholly-owned subsidiaries of Westpac; and
•directors and statutory officers of other nominated companies as approved by Westpac in accordance with the terms
of the deed poll and Westpac’s Contractual Indemnity Policy.
Some employees of Westpac’s related bodies corporate and responsible managers of Westpac and its related bodies
corporate are also currently covered by a deed poll that was executed in November 2004, which is on similar terms to
the September 2009 deed poll.
The Westpac Constitution also permits us, to the extent permitted by law, to pay or agree to pay premiums for contracts
insuring any person who is or has been a Director or Company Secretary of Westpac or any of its related bodies
corporate against liability incurred by that person in that capacity, including a liability for legal costs, unless:
•we are forbidden by statute to pay or agree to pay the premium; or
•the contract would, if we paid the premium, be made void by statute.
Under the September 2009 deed poll, Westpac also agrees to provide directors’ and officers’ liability insurance to
Directors of Westpac and Directors of Westpac’s wholly-owned subsidiaries (except wholly-owned subsidiaries listed on
a recognised stock exchange).
For the year ended 30 September 2024, the Group has insurance cover which, in certain circumstances, will provide
reimbursement for amounts which we have to pay under the indemnities set out above. That cover is subject to the
terms and conditions of the relevant insurance, including but not limited to the limit of indemnity provided by the
insurance. The insurance policies prohibit disclosure of the premium payable and the nature of the liabilities covered.
Share rights outstanding
As at the date of this report there are 4,291,291 share rights outstanding in relation to Westpac ordinary shares, held by
99 holders. The latest dates for exercise of the share rights range between 17 December 2024 and 1 October 2038.
Holders of outstanding share rights in relation to Westpac ordinary shares do not have any rights under the share rights
to participate in any share issue or interest of Westpac or any other body corporate.
Proceedings on behalf of Westpac
No application has been made and no proceedings have been brought or intervened in, on behalf of Westpac under
section 237 of the Corporations Act.
66WESTPAC 2024 ANNUAL REPORT
DIRECTORS’ REPORT
Environmental disclosure
The Westpac Group’s environmental disclosure is summarised in this Annual Report and detailed in our 2024 Climate
Report and our 2024 Sustainability Index and Datasheet.
Additional disclosure on environmental matters includes our Climate Change Position Statement and Action Plan and
our Natural Capital Position Statement, which looks at how we are considering the risks and opportunities associated
with climate and nature.
We participate in a number of sustainability initiatives and standards including: the Global Reporting Initiative (GRI), the
Equator Principles, the Principles for Responsible Banking, the Net-Zero Banking Alliance, the United Nations Global
Compact, the RE100, the Sustainability Accounting Standards Board (SASB), International Sustainability Standards
Board (ISSB) Sustainability Disclosure Standards, the Taskforce on Nature-related Financial Disclosures (TNFD) and the
Australian Government Climate Active Carbon Neutral Standard for Organisations.
In Australia we report our scope 1 and 2 greenhouse gas emissions, energy consumption and production under the
National Greenhouse and Energy Reporting (NGER) scheme for the period 1 July through 30 June each year.
The Financial Markets Conduct Act 2013 (New Zealand) sets disclosure requirements for 'climate reporting entities',
including large, registered banks and large listed issuers, for accounting periods commencing from 1 January 2023.
The External Reporting Board (XRB) published Aotearoa New Zealand Climate Standards ('NZCS') for mandatory
climate-related disclosures.
Westpac is a climate reporting entity and is therefore required to prepare climate-related disclosures that comply with
NZCS. It has relied on the exemptions in clause 8 and clause 10 of the Financial Markets Conduct (Climate-related
Disclosures for Foreign Listed Issuers) Exemption Notice 2024. These exemptions allow Westpac to produce a climate
report only for the Group's New Zealand business other than Westpac New Zealand Limited and BT Funds Management
(NZ) Limited, each of which are climate reporting entities and prepare their own climate-related disclosures.
Westpac Group will also need to comply with the new climate related disclosure standard AASB S2 by FY26 and work is
underway to meet the new requirements.
We are not aware of the Group incurring any material liability (including for rectification costs) under any environmental
legislation. Westpac’s environment disclosures are available in the Creating value for the environment (pages 34-37)
section of this Annual Report, and in our 2024 Climate Report.
Westpac's climate-related disclosures for its New Zealand business for the year ended 30 September 2024 will be
published by 31 January 2025 and, when published, will be available at https://www.westpac.co.nz/about-us/legal-
information-privacy/disclosure-statement/.
The climate reports prepared by Westpac New Zealand Limited and BT Funds Management (NZ) Limited
also contain information about the climate-related risks and opportunities of the Westpac Group's New
Zealand businesses. The Climate Statements for BT Funds Management (NZ) Limited's three schemes for
the scheme year ended 31 March 2024 are available at https://www.westpac.co.nz/kiwisaver-investments/investor-
document-centre/filter?tags%5b%5d=climate-statements. Westpac New Zealand Limited's Climate Report for the year
ended30 September 2024 will be published by 31 January 2025 and, when published, will be available at https://
www.westpac.co.nz/about-us/legal-information-privacy/disclosure-statements/.
Human rights disclosure
Our Human Rights Position Statement and 2026 Action Plan sets out Westpac Group's commitments and approach to
respecting and advancing human rights. It outlines the actions we are taking across our roles as a financial services
provider, lender, purchaser of goods and services, employer, and supporter of communities, as well as integrating our
position on child safeguarding.
Under the Modern Slavery Act 2018 (Cth) and Modern Slavery Act 2015 (UK), Westpac is required to prepare an annual
statement describing the risks of modern slavery across our operations and supply chain, and the actions taken to
address the risks. Westpac published a joint statement for FY23 on behalf of itself and certain reporting entities that
addressed the requirements of both Acts.
For more information, see the Westpac Group’s 2023 Modern Slavery Statement, published in March 2024.
We will release the Group’s FY24 Modern Slavery Statement in March 2025.
Rounding of amounts
Westpac is an entity to which ASIC Corporations Instrument 2016/191 dated 24 March 2016, relating to the rounding of
amounts in directors’ reports and financial reports, applies. Pursuant to this Instrument, amounts in this Directors’ report
and the accompanying financial report have been rounded to the nearest million dollars, unless indicated to the contrary.
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67
Political engagement
In line with Westpac policy, no cash donations were made to political parties during the financial year ended
30 September 2024.
Westpac does participate in political engagement activities assessed as directly relevant to the bank and or the
banking industry. Such activities include business observer programs attached to annual party conferences, policy
dialogue forums and other political engagement activities, such as speeches and events with industry participants.
Westpac attends these events to put forward its position on policy matters of importance to our customers, suppliers,
shareholders and our employees.
Political expenditure on these events in Australia for the financial year ended 30 September 2024 was $172,513. In
New Zealand, political expenditure for the financial year ended 30 September 2024 was NZ$ 3,000.
Directors’ meetings
The Westpac Banking Corporation Board met 15 times during the
financial year ended 30 September 2024. In addition,
Directors attended Board strategy sessions and special purpose committee meetings during the financial year.
The following table includes:
•Names of the Directors that held office at any time during, or since the end of, the financial year.
•The number of Board and Board Committee meetings held during the financial year that each Director, as a member
of the Board or Board Committee, was eligible to attend, and the number of meetings attended by each Director.
The table excludes the attendance of those Directors who attended meetings of Board Committees of which they are
not a member.
Board
Committees
Scheduled
meetings
Unscheduled
meetings
a
RiskAuditRemuneration
Nominations
& Governance
Held
b
Attended
c
Held
b
Attended
c
Held
b
Attended
c
Held
b
Attended
c
Held
b
Attended
c
Held
b
Attended
c
Director
Steven Gregg
d
8755n/an/an/an/an/an/a33
Peter King101033n/an/an/an/an/an/an/an/a
Tim Burroughs
e
10105588n/an/a44n/an/a
Nerida Caesar
f
101055n/an/a55n/an/an/an/a
Audette Exel
g
1010558855n/an/an/an/a
Andy Maguire
h
2144n/an/an/an/an/an/an/an/a
Peter Nash
i
1010558855n/an/a44
Nora Scheinkestel
j
1095587n/an/a87n/an/a
Margaret Seale
k
101055n/an/an/an/a8844
Michael Ullmer
l
1010558855n/an/an/an/a
Former Director
John McFarlane
m
4400n/an/an/an/an/an/a11
Chris Lynch
m
4400n/an/a1144n/an/a
a.Out of cycle meetings normally called for a special purpose that do not form part of the Board’s forward agenda.
b.The number of meetings held during the time the Director was a member of the Board or Board Committee and that the Director was eligible
to attend as a member.
c.The number of Board Committee meetings that the Director attended as a member.
d.Appointed as a Director on 7 November 2023 and appointed Chairman of the Board and Chair of the Board Nominations & Governance
Committee following completion of the 2023 Annual General Meeting on 14 December 2023.
e.Member of the Board Risk Committee. Appointed as a member of the Board Remuneration Committee with the appointment taking effect
following completion of the 2023 Annual General Meeting on 14 December 2023.
f.Member of the Board Audit Committee.
g.Chair of the Board Risk Committee and member of the Board Audit Committee.
h.Appointed as a Director on 15 July 2024.
i.Chair of the Board Audit Committee and member of the Board Risk Committee and Board Nominations & Governance Committee.
j.Chair of the Board Remuneration Committee and member of the Board Risk Committee.
k.Member of the Board Nominations & Governance Committee and Board Remuneration Committee.
l.Member of the Board Audit Committee and the Board Risk Committee.
m.Retired as a Director following the completion of the 2023 Annual General Meeting on 14 December 2023.
68WESTPAC 2024 ANNUAL REPORT
DIRECTORS’ REPORT
Remuneration Report
LETTER FROM
THE CHAIR
of the Board Remuneration
Committee
Dear shareholders,
Group performance
In 2024, Westpac made good progress on all our key
priorities. We delivered against our financial targets in a
competitive market while maintaining a strong balance
sheet and capital position. Our investment in customer
experience and our focus on supporting customers
continued. This was reflected in above system household
and business deposit growth and improved customer
advocacy metrics, albeit not at the level we aspire to.
We achieved growth in our key markets while also
managing margins with net interest margin (NIM),
excluding Notable Items, down 1 basis point and above
target. Expenses were higher than target, mostly due to
the wind down of the RAMS business and technology
costs. The commencement of the UNITE program, our
business led technology simplification program, will be
critical in reducing the cost of complexity across the
Group and, in turn, reducing the cost to income gap to
peers over time.
Impairments were lower than target due to better
than expected key economic indicators and outcomes.
Credit quality remained resilient, despite a rise in
stressed exposures.
We delivered value to shareholders with dividends at the
upper end of the payout range, the announcement of
$2 billion in on market share buybacks and a 1H24 special
dividend of 15 cents per share.
Importantly, we delivered a significant uplift in risk
management, completing the three year Customer
Outcomes and Risk Excellence (CORE) program. Westpac
delivered all activities under the CORE program within the
timeframes committed to. All activities and deliverables
were assessed and independently reviewed and confirmed
as complete by Promontory Australia. In recognition of
this progress, APRA reduced the operational risk capital
overlay by $500 million.
We continue this year in a transition phase with
independent reviews by Promontory Australia, to ensure
that our risk management capabilities are embedded as
part of business as usual. This work is on track to complete
by end of calendar year 2024.
Executive performance and remuneration outcomes
Having introduced our new remuneration framework
for 2024, including the addition of a restricted rights
component in the Long Term Variable Reward (LTVR)
plan, the main focus for the Remuneration Committee
and Board this year was on assessing performance to
determine Short Term Variable Reward (STVR) outcomes.
The 2024 STVR Scorecard focused on five key priority
areas: Financial performance, Risk management, Strategic
execution, Serving customers and People. Details of the
assessment are shown in Section 3.3.
The Board assessed Group performance at 101% of target
and the CEO's STVR outcome at 104% of his target
opportunity and 83% of maximum opportunity. This was
in recognition of Peter King's leadership in completing the
CORE program and setting up the organisation to execute
the UNITE program. His STVR will be paid 50% in cash and
50% will be deferred over one and two years.
For Group Executives, STVR outcomes ranged from
87% to 110% of target opportunity or 70% to 88%
of maximum opportunity, reflecting the differentiation
of performance outcomes for their respective divisions
and individual performance, including assessments of
leadership behaviours.
The 2021 LTVR was tested against a relative TSR measure
compared to our financial services comparator group.
The Group delivered a TSR of 113% over the 4 year
performance period resulting in a 50th percentile ranking
relative to the comparator group. As a result, the CEO
and all eligible Group Executives received 50% of their
award. It is pleasing that improved performance has led to
a return to vesting of the LTVR.
The Board granted the incoming CEO and all Group
Executives their allocation of 2025 LTVR restricted rights
under the revised LTVR plan, having completed the pre-
grant assessment and assessed our risk culture maturity as
having been maintained.
CEO transition
In September 2024, we announced that Anthony Miller,
currently Chief Executive, Business & Wealth, will be
appointed as the Managing Director & CEO commencing
16 December 2024. Anthony will succeed Peter King who
will retire after a 30 year career at Westpac, including five
years as CEO.
Anthony has a vision to return Westpac to a position of
leadership and build on the foundational work of the past
five years. As an internal appointment Anthony knows
what needs to be done and will move at pace, ensuring
a seamless transition.
Anthony's remuneration package will be the same as the
current CEO's remuneration package. Upon retirement,
Peter will receive remuneration in line with his contract
and relevant variable reward plans.
Please refer to the ASX release dated 9 September
2024 for further details. The 2025 Remuneration Report
will contain further details of Anthony's and Peter's
remuneration for 2025.
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Remuneration for our people
Risk and remuneration
In 2025, we will increase the capped variable reward
opportunity for home finance manager roles from 50% to
80% of fixed pay in response to the change made by CBA
and NAB. We need to remain competitive in our markets,
attract talent and reward for outperformance. Before
making this decision, we carefully considered our risk and
conduct management maturity and controls framework.
Good risk management, including embedded controls and
processes to manage conduct risk, is central to our culture
and a fundamental consideration in how we structure and
manage remuneration and reward. We continue to work
hard to ensure that our controls are appropriate, and that
we can manage and keep our people and customers safe.
We continue to look for ways to reinforce our risk,
compliance and conduct expectations. This year, while
ensuring that appropriate action is taken when required
to adjust remuneration for adverse outcomes, we looked
to enhance how we recognise great risk behaviours.
We provide a platform for our people to recognise their
peers when they make a positive impact on Westpac
and our customers through their risk management and
risk behaviours. Our people recorded nearly 115,000
recognition actions this year and Board Directors also
personally recognised over 60 people.
Enterprise Agreement
We were pleased to conclude a new Enterprise Agreement
with our people this year, subject to Fair Work
Commission approval. We listened to and consulted with
our people to put together a comprehensive range of
benefits and arrangements that builds on our current
Enterprise Agreement. 87% of employees who voted
supported the proposal. We thank the Finance Sector
Union for their constructive engagement.
Gender pay
We are committed to paying our people fairly and
equitably. Our overall average difference (by level,
weighted by number of people) for gender pay equity
is less than 2%. Where we identify a pay difference that
cannot be explained by individual skills, experience or
performance, we take action. We have more work to do
on our gender pay gap. As reported to the Workplace
Gender Equality Agency, we have a median gender pay
gap of 29.3%. This is the difference between the median
total remuneration of men compared to that of women.
We have strategies to increase women's representation in
key cohorts and we have set clear objectives to reduce the
gap. For more information on this gap and our strategies,
please refer to the 'Creating value for our people' section
of the Annual Report.
Looking ahead
2025 LTVR performance rights comparator group
During the year, we reviewed the relative TSR comparator
group for the LTVR performance rights taking into
account market practice, external feedback and our
assessment of the comparator group’s continued
relevance. We decided to make two changes for the 2025
LTVR performance rights.
First, we will reduce the current comparator group to
a streamlined group of five companies that are focused
on the banking market in Australia. The five companies
in the banking comparator group will be ANZ, Bank of
Queensland, Bendigo & Adelaide Bank, CBA and NAB.
Secondly, we will introduce an additional general
ASX comparator group comprising the 20 largest
companies on the ASX by market capitalisation, excluding
resource companies, to reflect a broader benchmark of
performance. The companies will be determined at the
start of each performance period. The LTVR performance
rights will be tested against the two comparator groups,
equally weighted and tested independently.
2025 total target remuneration
The Board reviewed total target remuneration packages
for the Executive Team against market benchmarks.
Reflecting market comparisons and role accountabilities,
we awarded increases for four Group Executives
for 2025, ranging from approximately 2% to 10%.
Further information will be provided in the 2025
Remuneration Report.
We hope you find the report informative and always
welcome your feedback.
Nora Scheinkestel
CHAIR
BOARD REMUNERATION COMMITTEE
CONTENTS
1.Snapshot of remuneration for 2024705.Further detail on executive
remuneration arrangements
81
2.Key Management Personnel726.Non-executive Director remuneration85
3.2024 remuneration outcomes and alignment
to performance
737.Statutory remuneration details86
4.Remuneration governance79
70WESTPAC 2024 ANNUAL REPORT
DIRECTORS’ REPORT
1. Snapshot of remuneration for 2024
OUR REMUNERATION STRATEGY AND PRINCIPLES
Our remuneration strategy is to attract and retain talented employees. We reward them for achieving high performance
and delivering superior long term results for our customers and shareholders.
Promote our
purpose, values
and behaviours
Align with our
strategy and
create sustainable
shareholder value
Offer market
competitive and
equitable pay
Reward financial and
non-financial performance
including customer outcomes
and risk excellence
Reinforce our risk
and conduct
expectations
OUR EXECUTIVE REMUNERATION FRAMEWORK
A revised executive remuneration framework was introduced
effective from 1 October 2023. It is designed to align with
our strategy, market practice, investor expectations and compliance with CPS 511.
ComponentPurposeYear 1Year 2Year 3Year 4Year 5Year 6
FIXED
REMUNERATION
100% cash (including
superannuation)
Provide market
competitive
remuneration
reflecting role scope
and accountabilities
Salary and
superannuation
Vesting point
Performance assessment and grant
SHORT TERM
VARIABLE REWARD
50% cash
50% restricted shares
Reward executives
for delivering financial
and non-financial
annual objectives
Performance
assessed
against a
balanced
scorecard
100% of cash is paid at Year 1
50% restricted shares vesting at Year 2
50% restricted shares vesting at Year 3
Pre-grant assessmentPre-vest assessment
LONG TERM
VARIABLE REWARD
50% restricted rights
Reward executives for
sustainable risk culture
and for creating
shareholder value over
the long term
Performance assessed against risk culture at grant and at Year 4
CEO: 50% vesting
at Year 4 and 50%
at Year 5
Group Executives:
100% vesting at
Year 4
GrantPerformance assessment
LONG TERM
VARIABLE REWARD
50% performance rights
Reward executives for
creating shareholder
value over the long
term
Performance assessed against relative total shareholder return (TSR)
at Year 4
CEO: 100% vesting at Year 6
Group Executives: 100% vesting at Year 5
cashsharesshares
rights
rightsrights
rights
Minimum shareholding requirement is equivalent to two times fixed remuneration for the CEO and one times fixed
remuneration for the Group Executives. Refer to Section 5.5 for further details.
REMUNERATION MIX
The remuneration mix is designed with a significant proportion of variable reward at risk and based on performance.
The graphic below sets out the maximum remuneration mix
1
showing the relative proportion of each component in the
executive remuneration framework as a percentage of total maximum opportunity. Refer to
Section 5 for further details
of executive remuneration arrangements.
ComponentPurposeYear 1Year 2Year 3Year 4Year 5Year 6
FIXED
REMUNERATION
100% cash (including
superannuation)
Provide market
competitive
remuneration
reflecting role scope
and accountabilities
Salary and
superannuation
Vesting point
Performance assessment and grant
SHORT TERM
VARIABLE REWARD
50% cash
50% restricted shares
Reward executives
for delivering financial
and non-financial
annual objectives
Performance
assessed
against a
balanced
scorecard
50% restricted shares vesting at
Year 2
50% restricted shares vesting at
Year 3
Pre-grant assessmentPre-vest assessment
LONG TERM
VARIABLE REWARD
50% restricted rights
Reward executives for
sustainable risk culture
and for creating
shareholder value over
the long term
Performance assessed against risk culture at grant and at Year 4
CEO: 50% vesting
at Year 4 and 50%
at Year 5
Group Executives:
100% vesting at
Year 4
GrantPerformance assessment
LONG TERM
VARIABLE REWARD
50% performance rights
Reward executives for
creating shareholder
value over the long
term
Performance assessed against relative total shareholder return (TSR)
at Year 4
CEO: 100% vesting at Year 6
Group Executives: 100% vesting at Year 5
FIXED
REMUNERATION
30%
STVR
28%
LT VR
RESTRICTED RIGHTS
21%
LT VR
PERFORMANCE RIGHTS
21%
94% of fixed
remuneration
44% cash56% equity
70% of fixed
remuneration
70% of fixed
remuneration
At risk performance based variable remuneration (70%)
1.
The mix shown in the graphic above applies to 7 of 10 KMP roles. The remaining 3 roles (Chief Financial Officer, Chief Risk Officer and the
Group Executive, Human Resources) are on a similar maximum remuneration mix comprised of 33% fixed remuneration, 31% maximum STVR,
18% LTVR restricted rights and 18% LTVR performance rights. The remaining 3 roles will transition to the above remuneration mix over time.
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
71
PERFORMANCE SNAPSHOT
Financial
performance
$7,113m NPAT
Excluding Notable Items.
11.21% ROTE
Excluding Notable Items.
Risk
management
100% CORE completion
Integrated Plan activities and
deliverables assessed and closed.
$500m capital release
Reduction to the $1bn total operational
risk capital overlay.
Strategic
execution
Significant
transformation delivery
Significant progress on transaction and
payments capability, mobilised UNITE.
$9.6bn sustainable
finance lending
And $4.9bn in bond facilitation.
Over 150 customers engaged on
transition plans.
Serving
customers
+1 in Consumer NPS
Relative to the major bank
average increase.
+1 in Business NPS
Relative to the major bank
average increase.
People
80 OHI (+5)
Up from 75 in 2023. Above top quartile
globally (76).
49% women in
senior leadership
In line with target of 50% +/- 2.
Performance achievedTarget
Further detail on performance against all measures of the Group STVR Scorecard is set out in Section 3.3.
REMUNERATION OUTCOMES
104%
CEO's 2024 STVR
outcome
as a % of target,
or 83% as a % of maximum.
87% to 110%
Group Executive
STVR outcomes
Range of STVR outcomes
as a % of target,
or 70% to 88% as % of maximum.
50%
LTVR vesting
outcome
2021 LTVR vesting outcome.
Reflects a TSR of 113% over the four
year performance period.
72WESTPAC 2024 ANNUAL REPORT
DIRECTORS’ REPORT
2. Key Management Personnel
The remuneration of KMP is disclosed in this Report. Disclosures related to former KMP that ceased prior to 1 October
2023 are included in the 2023 Remuneration Report. KMP are defined as those persons that have the authority and
responsibility for planning, directing and controlling the activities of an entity, directly or indirectly, including any director
(whether executive or otherwise) of that entity.
NamePositionTerm as KMP
Managing Director & Chief Executive Officer
Peter KingManaging Director & Chief Executive OfficerFull Year
Group Executives
a
Scott CollaryChief Information OfficerFull Year
Nell HuttonChief Executive, Westpac Institutional BankFull Year
Carolyn McCannGroup Executive, Customer & Corporate ServicesFull Year
Catherine McGrathChief Executive Officer, Westpac New ZealandFull Year
Anthony MillerChief Executive, Business & WealthFull Year
Christine ParkerGroup Executive, Human ResourcesFull Year
Michael RowlandChief Financial OfficerFull Year
Jason YettonChief Executive, ConsumerFull Year
Ryan ZaninChief Risk OfficerFull Year
Current Non-executive Directors
Steven GreggChairCommenced as Non-executive Director and Chair-Elect on
7 November 2023 and as Chair on 14 December 2023
following completion of the 2023 Annual General Meeting
Tim BurroughsDirectorFull Year
Nerida CaesarDirectorFull Year
Audette Exel AODirectorFull Year
Andy MaguireDirectorCommenced on 15 July 2024
Peter NashDirectorFull Year
Nora ScheinkestelDirectorFull Year
Margaret SealeDirectorFull Year
Michael Ullmer AODirectorFull Year
Former Non-executive Directors
John McFarlaneChairRetired on 14 December 2023 following completion of the
2023 Annual General Meeting
Chris LynchDirectorRetired on 14 December 2023 following completion of the
2023 Annual General Meeting
a.References to Group Executives in this Report refer to Group Executives who are in KMP roles.
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
73
3. 2024 remuneration outcomes and alignment to performance
3.1. Group performance
The table below summarises variable reward outcomes and Group performance over the last five years.
Years ended 30 September
20242023202220212020
CEO STVR outcome (% of maximum)
a
83%60%52%47%0%
CEO STVR outcome (% of target)
b
104%90%78%70%0%
Average Group Executive STVR outcome (% of maximum)
a
82%60%53%48%0%
Average Group Executive STVR outcome (% of target)
b
102%89%79%73%0%
LTVR outcome (% vested)50%0%0%0%0%
Net profit after tax attributable to owners of WBC ($m)6,9907,1955,6945,4582,290
Net profit after tax (excluding Notable Items) ($m)
c
7,1137,3686,5686,9535,227
Return on tangible equity (ROTE) (statutory basis)11.01%11.39%9.17%8.82%3.92%
Return on tangible equity (ROTE) (excluding Notable Items)
c
11.21%11.67%10.58%11.23%8.95%
TSR – four years113.10%(9.27%)(11.15%)(1.95%)(27.28%)
TSR – five years34.24%(4.05%)(13.82%)10.34%(27.87%)
Total ordinary dividend (cents per share)15114212511831
Special dividend (cents per share)150000
Share price – close$31.72$21.15$20.64$26.00$16.84
a.From 2024, maximum STVR opportunity was reduced from 150% to 125% of target STVR.
b.From 2024, target STVR opportunity was reduced from approximately 100% to 75% of fixed remuneration for business roles, and maintained
at 75% for functional roles.
c.Refer to the 'Additional information for non-AAS financial measures' section of the Annual Report for a reconciliation of this measure.
3.2. 2021 LTVR vesting outcome
We tested the 2021 LTVR on 1 October 2024
1
. Our TSR for the 4 year performance period was 113% resulting in a 50th
percentile ranking relative to the comparator group. This resulted in 50% of the 2021 LTVR award vesting.
Performance range
Performance
hurdle
Performance
start dateTest dateThresholdMaximumOutcome
%
Vested
%
Lapsed
TSR (100% of
award)
1 October
2020
1 October
2024
Percentile ranking is
at the median
Percentile ranking is at the
75th percentile or higher
50th percentile ranking relative
to the comparator group
50%50%
NPAT (EXCLUDING NOTABLE ITEMS) AND
CEO STVR OUTCOME
NPAT
(excluding
Notable
Items)
($m)
CEO
STVR
(%)
NPAT (excluding Notable Items) ($m)
CEO STVR outcome (% of target)
CEO STVR outcome (% of maximum)
20202021202220232024
0
2,000
4,000
6,000
8,000
0
40
80
120
ROTE (EXCLUDING NOTABLE ITEMS) AND
CEO STVR OUTCOME
ROTE
(excluding
Notable
Items)
(%)
CEO
STVR
(%)
ROTE (excluding Notable Items)
CEO STVR outcome (% of target)
CEO STVR outcome (% of maximum)
20202021202220232024
0
4
8
12
0
40
80
120
TSR
TSR
(%)
WBCPeer 1Peer 2Peer 3
2021202220232024
0
80
160
40
120
TSR AND LTVR VESTING OUTCOME
(percentile rank over the prior 4 year period)
TSR
over
4
years
(percentile
rank)
LTVR
award
(%
vested)
TSR over 4 years (percentile rank)
LTVR award (% vested)
20202021202220232024
0
40
80
20
60
100
0
40
80
20
60
100
1.In addition, we tested the pro rata 2020 LTVR award granted to Jason Yetton and tested additional 2020 LTVR awards granted to Peter King,
Carolyn McCann and Jason Yetton for changes to their total target remuneration. The awards were granted on the same terms and conditions
as the 2020 LTVR. The awards lapsed in full as they were tested on 1 April 2024 and did not meet the TSR performance condition.
74WESTPAC 2024 ANNUAL REPORT
DIRECTORS’ REPORT
3.3. 2024 Group STVR Scorecard
The Group’s priorities are set out in the Group STVR Scorecard, which forms part of the CEO’s Scorecard. Common
elements appear in Group Executive Scorecards together with individual objectives reflecting Divisional measures.
A summary of the performance assessment is provided below and is designed to be read over two pages. Where
appropriate, individual measures have been assessed against a 'Threshold', 'Target' and 'Stretch' rating scale as outlined
in the key. Each priority has also been assessed in totality using the same key.
Key priorityMeasureOutcomeOutcome commentary
Key:
Threshold
50-99%
Stretch
10 1- 125%
Target
100%
Performance assessment
Financial
performance
(45%)
Deliver current year
financial performance:
•Net profit after tax (excluding
Notable Items)
a
-5%$7,013m+5%
$7,113m result was above target. The only Notable
Items in 2024 were from the timing impact of hedge
accounting items.
We delivered our financial targets in a competitive market. NPAT (excluding Notable Items) was $7,113m which was above target. Pre-provision
profit was $10,819m which was below target. ROTE (excluding Notable Items) was 11.21% which was above target.
We achieved growth in our key markets while also managing margins with net interest margin (NIM), excluding Notable Items, down 1 basis
point and above target. Expenses were higher than target, mostly due to the wind down of the RAMS business and technology costs. The
commencement of the UNITE program, our business led technology simplification program, will be critical in reducing the cost of complexity
across the Group and, in turn, reducing the cost to income gap to peers over time.
Impairments were lower than targeted due to key economic indicators being better than forecast and lower individual provisions. Credit quality
remained resilient, notwithstanding a rise in stressed exposures.
We assessed Financial performance at just above target.
•Pre-provision profit (excluding
Notable Items)
a
-5%$10,949m+5%
$10,819m result was below target.
•Return on tangible equity
(excluding Notable Items)
a
-5%11.0%+5%
11.21% result was above target.
Risk
management
(20%)
Deliver the Customer Outcomes and
Risk Excellence (CORE) program and
embed and sustain improvements
in risk management, capability
and culture
-Target-
All activities and deliverables in the CORE
Integrated Plan were assessed and closed by
Promontory Australia.
Practices and improvements in risk management,
governance and culture sustained post end of the
CORE program evidenced by Promontory Australia
reports and internal measures.
Focus remained on uplifting our risk management with achievement of the major milestone of the completion of the CORE program, on time and
assessed by Promontory Australia as complete. APRA recognised the progress and improvements we have made and partially reduced the level of
our operational risk capital overlay from $1 billion to $500 million.
With CORE complete, we are now focused on completion of the transition to business as usual which is progressing to plan. Delivery of the UNITE
program will be critical to further reducing the risk of complexity across the Group.
We assessed Risk management at target.
Strategic
execution
(15%)
Deliver the significant change
initiatives to transform the bank
-Target-
Delivered transformation change initiatives in line
with targets. Significant delivery of payments
capability including delivery of PayTo, international
payment processor migration, corporate cash
management platform and improving payments
for merchants. Mobilised UNITE technology
simplification plan.
We made good progress across the Group’s transformation agenda. Highlights during the year included mobilising UNITE, tangible delivery across
our payments and transaction banking capability and extending scam protection for our customers.
We made demonstrable progress in improving our capabilities including PayTo for Billers, extending PayTo for business customers, launching
Pay with Points, launching EFTPOS Flex, extending EFTPOS Air coverage, tracking well to deliver international payment processor migration and
progressing well in the implementation of the corporate cash management platform (Westpac One Core program in Westpac Institutional Bank).
The UNITE program comprises circa 60 initiatives of which 39 have commenced and 2 have been completed as at 30 September 2024. On
delivering our climate transition plan, we finished the year with 13 targets in all 9 emission-intensive sectors under the NZBA framework. We have
focused on operationalising our sector targets. We engaged with over 150 institutional customers on their climate transition plans and found that
84% had a public transition plan.
We have increased our sustainable finance lending and bond facilitation this year by $9.6bn and $4.9bn respectively and are on track to meet our
2030 targets.
We assessed Strategic execution at above target.
Deliver the climate transition plan
-Target-
2030 targets set in 9 NZBA carbon intensive sectors.
Engaged over 150 institutional customers on their
climate transition plans. Above target on sustainable
finance measures for the year.
Serving
customers
(10%)
Improve customer advocacy of
Westpac Group (measured in
points relative to major bank
average change)
0+2+4
Consumer NPS was +1 relative to the major bank
average change, which was below our target.
Our Australian Consumer NPS score increased over the year but not at the pace we want. We have seen improvements in product and channel
NPS, however these are yet to flow through to the overall brand NPS measures.
In Australian Business, our score increased over the year and achieved target. We have more work to do on customer journeys and servicing
customers. Our Institutional customers remain strong advocates. WNZL Consumer NPS remains #5 and grew in line with the market average.
We have progressed in other areas of customer service such as progressing well on consolidating 22 customer verification processes into a single
digital identification solution, being recognised by Forrester as the #1 mobile banking app (second year in a row) and improving security features,
such as SafeCall and SaferPay. Customer losses from scams are down almost 30% year-on-year. Our average customer complaint resolution time is
stable with 93% resolved by our people in the moment without the need for escalation.
From a market share perspective, we have maintained momentum with growth across the business. We grew in deposits, critical to customer
primacy and relationship banking. Growth in Australian mortgages was 0.8x of ADI financial system growth, which was below target. Growth in
Australian business lending was 1.3x of ADI financial system growth, which was at stretch.
We assessed Serving customers at below target.
0+1+2Business NPS was +1 relative to the major bank
average change, which was in line with our target.
Grow market share in key segments
compared to system growth
0.8x1.0x1.2x
Growth in Australian mortgages was 0.8x of ADI
financial system growth, which was below target.
Growth in Australian business lending was 1.3x of ADI
financial system growth, which was at stretch.
People
(10%)
Improve organisational health as
measured through the Organisational
Health Index (OHI)
757677
Westpac Group OHI was 80, which was at stretch and
up from 75 last year.
We continue to invest in our people and their development. Our people are more engaged with the OHI score up 5 points over the year to 80,
which now sees us in the top quartile globally. We improved OHI in all large divisions.
We continue to develop our leaders and enhance our executive bench strength. All Group Executive and critical General Manager roles were
mapped with at least one emergency successor. Women in senior leadership is at 49% at the end of 2024, within the 48-52% target range.
We assessed People at above target.
OVERALL GROUP STVR SCORECARD PERFORMANCE ASSESSMENT
101% OF TARGET
81% OF MAXIMUM
The STVR Scorecard has a modifier that allows the Board to take into account risk and reputation, people management and any other matters as
determined by the Board. Refer to Section 3.5 for further detail on individual outcomes.
a.Refer to the 'Additional information for non-AAS financial measures' section of the Annual Report for a reconciliation of this measure.
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
75
KEY CHANGES TO THE 2024 GROUP STVR SCORECARD
Given the progress on the Customer Outcomes and Risk Excellence program, we reviewed the Scorecard weightings
for 2024. We decided to reduce the weighting to Risk management by 10% and increase the weighting to Financial
performance and Strategic execution by 5% each.
Key priorityMeasureOutcomeOutcome commentary
Key:
Threshold
50-99%
Stretch
10 1- 125%
Target
100%
Performance assessment
Financial
performance
(45%)
Deliver current year
financial performance:
•Net profit after tax (excluding
Notable Items)
a
-5%$7,013m+5%
$7,113m result was above target. The only Notable
Items in 2024 were from the timing impact of hedge
accounting items.
We delivered our financial targets in a competitive market. NPAT (excluding Notable Items) was $7,113m which was above target. Pre-provision
profit was $10,819m which was below target. ROTE (excluding Notable Items) was 11.21% which was above target.
We achieved growth in our key markets while also managing margins with net interest margin (NIM), excluding Notable Items, down 1 basis
point and above target. Expenses were higher than target, mostly due to the wind down of the RAMS business and technology costs. The
commencement of the UNITE program, our business led technology simplification program, will be critical in reducing the cost of complexity
across the Group and, in turn, reducing the cost to income gap to peers over time.
Impairments were lower than targeted due to key economic indicators being better than forecast and lower individual provisions. Credit quality
remained resilient, notwithstanding a rise in stressed exposures.
We assessed Financial performance at just above target.
•Pre-provision profit (excluding
Notable Items)
a
-5%$10,949m+5%
$10,819m result was below target.
•Return on tangible equity
(excluding Notable Items)
a
-5%11.0%+5%
11.21% result was above target.
Risk
management
(20%)
Deliver the Customer Outcomes and
Risk Excellence (CORE) program and
embed and sustain improvements
in risk management, capability
and culture
-Target-
All activities and deliverables in the CORE
Integrated Plan were assessed and closed by
Promontory Australia.
Practices and improvements in risk management,
governance and culture sustained post end of the
CORE program evidenced by Promontory Australia
reports and internal measures.
Focus remained on uplifting our risk management with achievement of the major milestone of the completion of the CORE program, on time and
assessed by Promontory Australia as complete. APRA recognised the progress and improvements we have made and partially reduced the level of
our operational risk capital overlay from $1 billion to $500 million.
With CORE complete, we are now focused on completion of the transition to business as usual which is progressing to plan. Delivery of the UNITE
program will be critical to further reducing the risk of complexity across the Group.
We assessed Risk management at target.
Strategic
execution
(15%)
Deliver the significant change
initiatives to transform the bank
-Target-
Delivered transformation change initiatives in line
with targets. Significant delivery of payments
capability including delivery of PayTo, international
payment processor migration, corporate cash
management platform and improving payments
for merchants. Mobilised UNITE technology
simplification plan.
We made good progress across the Group’s transformation agenda. Highlights during the year included mobilising UNITE, tangible delivery across
our payments and transaction banking capability and extending scam protection for our customers.
We made demonstrable progress in improving our capabilities including PayTo for Billers, extending PayTo for business customers, launching
Pay with Points, launching EFTPOS Flex, extending EFTPOS Air coverage, tracking well to deliver international payment processor migration and
progressing well in the implementation of the corporate cash management platform (Westpac One Core program in Westpac Institutional Bank).
The UNITE program comprises circa 60 initiatives of which 39 have commenced and 2 have been completed as at 30 September 2024. On
delivering our climate transition plan, we finished the year with 13 targets in all 9 emission-intensive sectors under the NZBA framework. We have
focused on operationalising our sector targets. We engaged with over 150 institutional customers on their climate transition plans and found that
84% had a public transition plan.
We have increased our sustainable finance lending and bond facilitation this year by $9.6bn and $4.9bn respectively and are on track to meet our
2030 targets.
We assessed Strategic execution at above target.
Deliver the climate transition plan
-Target-
2030 targets set in 9 NZBA carbon intensive sectors.
Engaged over 150 institutional customers on their
climate transition plans. Above target on sustainable
finance measures for the year.
Serving
customers
(10%)
Improve customer advocacy of
Westpac Group (measured in
points relative to major bank
average change)
0+2+4
Consumer NPS was +1 relative to the major bank
average change, which was below our target.
Our Australian Consumer NPS score increased over the year but not at the pace we want. We have seen improvements in product and channel
NPS, however these are yet to flow through to the overall brand NPS measures.
In Australian Business, our score increased over the year and achieved target. We have more work to do on customer journeys and servicing
customers. Our Institutional customers remain strong advocates. WNZL Consumer NPS remains #5 and grew in line with the market average.
We have progressed in other areas of customer service such as progressing well on consolidating 22 customer verification processes into a single
digital identification solution, being recognised by Forrester as the #1 mobile banking app (second year in a row) and improving security features,
such as SafeCall and SaferPay. Customer losses from scams are down almost 30% year-on-year. Our average customer complaint resolution time is
stable with 93% resolved by our people in the moment without the need for escalation.
From a market share perspective, we have maintained momentum with growth across the business. We grew in deposits, critical to customer
primacy and relationship banking. Growth in Australian mortgages was 0.8x of ADI financial system growth, which was below target. Growth in
Australian business lending was 1.3x of ADI financial system growth, which was at stretch.
We assessed Serving customers at below target.
0+1+2Business NPS was +1 relative to the major bank
average change, which was in line with our target.
Grow market share in key segments
compared to system growth
0.8x1.0x1.2x
Growth in Australian mortgages was 0.8x of ADI
financial system growth, which was below target.
Growth in Australian business lending was 1.3x of ADI
financial system growth, which was at stretch.
People
(10%)
Improve organisational health as
measured through the Organisational
Health Index (OHI)
757677
Westpac Group OHI was 80, which was at stretch and
up from 75 last year.
We continue to invest in our people and their development. Our people are more engaged with the OHI score up 5 points over the year to 80,
which now sees us in the top quartile globally. We improved OHI in all large divisions.
We continue to develop our leaders and enhance our executive bench strength. All Group Executive and critical General Manager roles were
mapped with at least one emergency successor. Women in senior leadership is at 49% at the end of 2024, within the 48-52% target range.
We assessed People at above target.
OVERALL GROUP STVR SCORECARD PERFORMANCE ASSESSMENT
101% OF TARGET
81% OF MAXIMUM
The STVR Scorecard has a modifier that allows the Board to take into account risk and reputation, people management and any other matters as
determined by the Board. Refer to Section 3.5 for further detail on individual outcomes.
a.Refer to the 'Additional information for non-AAS financial measures' section of the Annual Report for a reconciliation of this measure.
76WESTPAC 2024 ANNUAL REPORT
DIRECTORS’ REPORT
3.4. Total realised remuneration – Chief Executive Officer and Group Executives
The table below details the actual remuneration paid and equity
1
that vested or lapsed in 2024 and 2023 related to
KMP roles. It does not include termination payments and buy out awards. This table is not prepared in accordance with
Australian Accounting Standards which differs from the disclosure in Section 7.
Fixed
remuneration
Cash
STVR payments
Vesting of prior
year deferred
STVR awards
Vesting of
prior year
LTVR awards
Total realised
remuneration
Prior year
LTVR lapsed
Name$$$$$$
Managing Director & Chief Executive Officer
Peter King, Managing Director & Chief Executive Officer
20242,502,920975,0001,442,8982,990,4017,911,2193,314,178
20232,507,4971,125,000861,964-4,494,4611,878,389
Group Executives
Scott Collary, Chief Information Officer
a
20241,293,976508,500706,4441,927,4124,436,3321,927,412
20231,234,741508,500458,147-2,201,388-
Nell Hutton, Chief Executive, Westpac Institutional Bank
20241,278,338502,000--1,780,338-
2023--------------------- Not a KMP in 2023 ---------------------
Carolyn McCann, Group Executive, Customer & Corporate Services
20241,062,447437,500484,0981,149,4413,133,4861,269,346
20231,019,918380,000289,602-1,689,520743,801
Catherine McGrath, Chief Executive Officer, Westpac New Zealand
2024981,129311,189502,028-1,794,346-
2023890,307350,356152,519-1,393,182-
Anthony Miller, Chief Executive, Business & Wealth
b
20241,277,944478,000706,7951,925,4624,388,2011,925,462
20231,198,066611,000384,960-2,194,026-
Christine Parker, Group Executive, Human Resources
20241,041,206417,000513,8211,459,7093,431,7361,459,677
20231,007,812392,000321,423-1,721,2351,104,203
Michael Rowland, Chief Financial Officer
20241,274,390500,500577,7731,588,6683,941,3311,588,636
20231,263,779446,500381,624-2,091,903-
Jason Yetton, Chief Executive, Consumer
20241,277,944443,000782,2852,009,1654,512,3943,432,493
20231,198,066611,000548,354-2,357,420-
Ryan Zanin, Chief Risk Officer
c
20241,699,186674,000504,105-2,877,291-
20231,691,361503,500102,432-2,297,293-
a.In addition, Scott Collary had 45,879 restricted shares vest in December 2023 in relation to a buy out award.
b.In addition, Anthony Miller received a deferred cash payment of $1,003,290 in March 2024 and had 46,798 restricted shares vest in March 2024
in relation to a buy out award.
c.In addition, Ryan Zanin received deferred cash payments of $196,839 in January 2024, $64,623 in April 2024 and $64,623 in June 2024 in
relation to a buy out award.
Explanation of total realised remuneration
ComponentExplanation
Fixed remunerationRepresents salary and superannuation paid during the financial year.
Cash STVR paymentsRepresents the cash portion of the STVR outcome for the financial year. This represents 50% of the overall STVR
outcome as the remaining 50% is deferred and vests in equal portions over two years.
Vesting of prior year
deferred STVR awards
Represents the portions of STVR that were deferred in prior years and vested during the financial year.
Vesting of prior year
LTVR awards
Represents the LTVR that was deferred in prior years and vested during the financial year, if the performance
conditions were met.
Total realised remunerationSum of the above components.
Prior year LTVR lapsedRepresents the LTVR from prior years that lapsed or was determined to be lapsed.
1.Equity that vested in October 2024 is included in the 2024 figures. Equity that vested in October 2023 is included in the 2023 figures. The
value of deferred STVR is based on the number of restricted shares or share rights multiplied by the five day volume weighted average price
(VWAP) up to and including the scheduled date of vesting. The value of LTVR is based on the number of share rights multiplied by the five day
VWAP up to and including the scheduled date of testing. The value of equity differs from the disclosure in Section 7.
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3.5. Variable reward awarded for 2024
The table below shows the variable reward awarded
1
to the CEO and Group Executives for 2024, including:
•STVR outcomes for 2024 (including the cash and deferred equity components); and
•equity granted as 2024 LTVR in January 2024. The 2024 LTVR grants shown at face value in the table below will be
tested on 1 October 2027.
For the CEO, the Board assessed his Scorecard at 104% (+3% on the Group STVR Scorecard) of his target STVR
opportunity. This was in recognition of Peter King's leadership in completing the CORE program and setting up the
organisation to execute the UNITE program.
In addition, the Board made a downward adjustment to the 2024 STVR outcome for a Group Executive based on an
assessment of leadership behaviours. There were no risk related adjustments for the CEO or Group Executives.
2024 STVR award2024 LTVR award
Name
Target
STVR
opportunity
($)
Maximum
STVR
opportunity
($)
STVR
outcome
(% of
target)
STVR
outcome
(% of
maximum)
STVR
outcome
($)
Maximum
STVR
foregone
($)
Restricted
rights
($)
a
Performance
rights
($)
a
Managing Director & Chief
Executive Officer
Peter King1,875,0002,343,750104%83%1,950,000393,7501,750,0001,750,000
Group Executives
Scott Collary
Chief Information Officer968,6001,210,750105%84%1,017,000193,750904,000904,000
Nell Hutton
Chief Executive, Westpac
Institutional Bank956,2501,195,313105%84%1,004,000191,313892,500892,500
Carolyn McCann
Group Executive, Customer &
Corporate Services795,000993,750110%88%875,000118,750742,000742,000
Catherine McGrath
Chief Executive Officer, Westpac
New Zealand715,734894,66787%70%622,377272,290668,018668,018
Anthony Miller
Chief Executive, Business & Wealth956,2501,195,313100%80%956,000239,313892,500892,500
Christine Parker
Group Executive, Human Resources779,300974,125107%86%834,000140,125571,500571,500
Michael Rowland
Chief Financial Officer953,6001,192,000105%84%1,001,000191,000699,300699,300
Jason Yetton
Chief Executive, Consumer956,2501,195,31393%74%886,000309,313892,500892,500
Ryan Zanin
b
Chief Risk Officer1,271,5001,589,375106%85%1,348,000241,375932,400932,400
Average Group Executive STVR outcome102%82%
a.The face value is calculated by multiplying the number of rights by the five day VWAP up to the commencement of the performance period.
The five day VWAP was $21.09 for awards made in January 2024.
b.In addition, Ryan Zanin was awarded a grant of restricted shares of $500,000 on 19 January 2024. The award recognises the importance of
his role in completing a critical risk management and risk culture transformation, and increases alignment with shareholders through greater
equity holdings. The award is subject to service conditions and remuneration adjustments. It will vest in three tranches in January 2026,
January 2028 and January 2029.
1.The final value of equity received will depend on the share price at the time of vesting and the number of restricted shares or share rights that
vest subject to performance conditions (where applicable), service conditions and remuneration adjustments. The value of equity differs from
the disclosure in Section 7 which provides the annualised accounting value for unvested equity awards prepared in accordance with Australian
Accounting Standards.
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DIRECTORS’ REPORT
2024 LTVR restricted rights pre-grant assessment
We awarded the 2024 LTVR restricted rights, outlined in Section 3.5 above, following the pre-grant assessment which
was completed in October 2023. The Board determined that no adjustment was required. Further details are available in
the 2023 Remuneration Report.
2025 LTVR restricted rights pre-grant assessment
The pre-grant assessment for the 2025 LTVR restricted rights was completed in October 2024. The Board determined
that no adjustment was required and the 2025 LTVR restricted rights will be granted in full.
The prudential soundness gate was satisfied by reviewing the key capital and liquidity ratios, including CET1, LCR and
NSFR. The ratios are all above minimum prudential requirements.
Group risk culture maturity was assessed as 'Maintained'. The Board had regard to the Group level rating arising from
the annual Risk Culture Self-Assessment which was stable at ‘Systematic’, improved results in risk culture questions
as indicated through our annual employee survey, Voice+, and other evidence points informing the CPS 220 Risk
Management Declaration including risk management framework maturity, root cause analyses, prudential attestations,
audit and assurance findings and regulatory reviews.
There were no significant risk outcomes or serious misconduct issues that arose that were not sufficiently
addressed elsewhere.
The LTVR restricted rights remain subject to the pre-vest assessment after the four year performance period ending
30 September 2028. The restricted rights also remain subject to remuneration adjustments during and after this period.
Pre-grant assessmentOutcome
Step 1: Assessment
Prudential soundness gate: Has Westpac remained safe and secure, taking into account capital position and liquidity?Met
Group risk culture: Has Group risk culture maturity been maintained or improved, considering both executive actions
or inactions?
Maintained
Significant risk outcomes: Have risk outcomes arisen that have a significant and material impact on the Group, not
sufficiently addressed elsewhere?
No adjustment
Serious misconduct: Has Westpac suffered from a serious misconduct issue, not sufficiently addressed elsewhere?No adjustment
Step 2: Consider Board discretionNo adjustment
Overall pre-grant assessmentGrant in full
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4. Remuneration governance
4.1. Group remuneration policy
The Group remuneration policy sets out information in relation to remuneration design, arrangements and outcomes
across Westpac. The policy is supported by an established governance structure, plans and frameworks. The policy
supports our compliance with legal and regulatory requirements.
Remuneration strategy
Our remuneration strategy is to attract and retain talented employees. We reward them for achieving high performance and delivering
superior long term results for our customers and shareholders.
Remuneration principles
•Promote our purpose, values and behaviours;
•Align with our strategy and create sustainable shareholder value;
•Offer market competitive and equitable pay;
•Reward financial and non-financial performance, including customer outcomes and risk excellence; and
•Reinforce our risk and conduct expectations.
4.2. Group remuneration governance
The Board has overall accountability for the remuneration framework and its application. As set out in the Board Charter (and as
supported by the Board Remuneration Committee Charter), without limiting its role the Board approves (following recommendation
from the Board Remuneration Committee): the Group remuneration policy; the size of the annual Group variable reward pool;
performance objectives and remuneration outcomes for the CEO; remuneration arrangements and outcomes for accountable persons,
specified roles and any other person the Board determines; and equity-based plans.
The Board has the discretion to defer, adjust or withdraw aggregate and individual variable reward. Further detail is contained in
the Board and Committee Charters which are available on Westpac’s website:
https://www.westpac.com.au/about-westpac/westpac-
group/corporate-governance/constitution-board/
The Board Remuneration Committee assists the Board to discharge its responsibility by overseeing the design, operation and
monitoring of the remuneration framework. Members of the Board Remuneration Committee are independent Non-executive
Directors. The Board and the Board Remuneration Committee have free and unfettered access to internal and external personnel
in carrying out their respective duties. Further detail is contained in the Board Remuneration Committee Charter which is available on
Westpac’s website: https://www.westpac.com.au/about-westpac/westpac-group/corporate-governance/constitution-board/
The Board and the Board Remuneration Committee receive
support from internal groups and committees including, but
not limited to, the Group Remuneration Oversight Committee
and business specific remuneration oversight committees.
The Board or the Board Remuneration Committee may engage
a remuneration consultant to directly provide specialist
information on remuneration for key management personnel.
The Chair of the Board Remuneration Committee oversees the
engagement and associated costs.
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
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.
Use of remuneration consultants: In 2024, the Board engaged Ernst & Young to provide market benchmarking
information on Non-executive Director and Group Executive remuneration. Ernst & Young did not provide any
remuneration recommendations as prescribed under the Corporations Act 2001 (Cth) (Corporations Act) in 2024.
80WESTPAC 2024 ANNUAL REPORT
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4.3. Our approach to remuneration adjustments
Remuneration adjustment is one of the ways we reinforce our risk, compliance and conduct expectations. This includes
downward adjustments for adverse outcomes, as well as upward adjustment to reward positive risk behaviours.
Significant risk, compliance or conduct matters
We have guidelines in place to support the consistent application of proportionate adjustments for significant risk,
compliance or conduct matters.
SEVERITY OF IMPACT BASED ON:
Customer
People
Reputation
Regulatory
Financial
ACCOUNTABILITY
Action or inaction of the individual
Quantum of adjustment
Indicative order of downward adjustments
1. Current year STVR
2. Unvested deferred STVR (malus)
3. Unvested LTVR (malus)
4. Unvested retention awards (malus)
5. Unvested buy out awards (malus)
6. Vested or paid VR (clawback)
We apply judgement to consider whether the
size of the adjustment is proportionate and fair,
taking into consideration the severity of the matter
and level of individual accountability and any
mitigating factors, such as the context of the
matter and how the individual responded.
The quantum of the remuneration adjustment
increases with the severity of impact and
individual accountability.
To ensure remuneration adjustments are
proportionate to accountability, we consider
various facts specific to the matter including
(but not limited to) the individual’s contribution
and proximity to the direct and root causes
of the matter, time in role, relative level of
influence, findings of previous reviews and previous
adjustments for related matters.
Other risk, compliance or conduct matters
In addition to assessing significant matters, we also assess other matters including less material risk, compliance or
conduct matters and can apply remuneration adjustments and non-financial consequences for conduct that does not
meet our expectations.
We set conduct standards expected of our people through our code of conduct. Our expectations are in place to
support our people, culture and good conduct outcomes. They are non-negotiable and our people must comply with
these, regardless of their role or responsibilities.
Recognising positive risk behaviours and outcomes
We recognise and reward our people who role model positive risk behaviours and outcomes. This reinforces the
behaviour we expect of all of our people. We do this through a number of ways including through our recognition
platform or an upward adjustment to variable reward.
An upward adjustment in variable reward may be considered for exceptional risk performance not already reflected in
the delivery of agreed performance objectives.
In addition, Directors can recognise people who have demonstrated positive risk behaviours and outcomes. We have a
mechanism in place to provide the Board and each Committee with regular visibility of people who have demonstrated
positive risk behaviours.
Adjustment and consequence outcomes during 2024
Senior leaders
a
that received downward remuneration adjustments2
Senior leaders that received upward remuneration adjustments9
Employees identified as not having met risk expectations during performance assessments1,538
Employees that received downward remuneration adjustments235
Employees leaving due to consequence outcomes160
Actions to recognise positive risk management and risk behaviours through our recognition platform114,350
Employees that received an additional variable reward for achieving great risk outcomes621
a.These employees are the most senior leaders of Westpac, defined as the Chief Executive Officer, Group Executives and General Managers.
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5. Further detail on executive remuneration arrangements
5.1. Fixed remuneration
The table below sets out the key design features of fixed remuneration.
Fixed remuneration
PurposeProvide market competitive remuneration reflecting role scope and accountabilities.
Opportunity
and benchmarking
Set with reference to market benchmarks in the financial services industry and large corporates in Australia as appropriate.
We also consider the size, responsibilities and complexity of the role, and the skills and experience of the executive.
5.2. Short term variable reward
The table below sets out the key design features of the 2024 STVR.
Short term variable reward
PurposeReward executives for delivering financial and non-financial annual objectives.
Structure
and delivery
50% of STVR is awarded in cash and 50% is deferred into equity in the form of restricted shares (or unhurdled share rights
for the Group Executive based outside of Australia).
One restricted share provides the holder with one Westpac ordinary share at no cost subject to trading restrictions until
the time of vesting. One unhurdled share right entitles the holder to one ordinary share at the time of vesting with no
exercise cost. Dividends are paid on restricted shares from the grant date.
Target and
maximum
opportunity
The target opportunity for the CEO and Group Executives is expressed as a percentage of fixed remuneration and is set at
75% of fixed remuneration (inclusive of superannuation as at 1 October 2023). The target opportunity is set considering a
range of factors including market competitiveness.
Target STVR: awarded for the delivery of agreed targets for financial and non-financial measures. A reduced outcome can
be determined for threshold performance.
Maximum STVR: up to 125% of target STVR, awarded in circumstances where outcomes are achieved over and
above target.
Performance
measures
STVR awards are determined based on meeting minimum behaviour and risk and compliance gate openers, and
performance against a scorecard designed to align with shareholder interests. The STVR Scorecard comprises
three components:
•Values and behaviours assessment: Demonstration of behaviours in line with Westpac's values of 'Helpful, Ethical,
Leading change, Performing and Simple';
•Focus areas: Performance is assessed against a balance of financial and non-financial measures that support the
effective execution of Westpac’s strategy; and
•Modifier: The modifier allows adjustment upwards or downwards (including to zero), for risk and reputation and
people management considerations and any other matters as determined by the Board.
Further information on the 2024 Group STVR Scorecard is provided in Section 3.3.
Deferral period50% of STVR is deferred into equity for a period of up to two years, which aligns executive remuneration with shareholder
interests and acts as a retention mechanism. Deferred STVR vests in equal portions after one and two years, subject to
service conditions and adjustment.
Delayed vestingRefer to Section 5.4 for further information.
Treatment
of awards
on cessation
of employment
Refer to Section 5.4 for further information.
Remuneration
adjustments
Refer to Section 5.4 for further information.
82WESTPAC 2024 ANNUAL REPORT
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5.3. Long term variable reward
LTVR is comprised of two components, which are equally weighted, comprising LTVR restricted rights and LTVR
performance rights. The tables below set out the key design features of the 2024 LTVR awarded in January 2024,
as determined by the Board in October 2023.
5.3.1. Long term variable reward restricted rights for 2024
Long term variable reward restricted rights
PurposeReward executives for sustainable risk culture and for creating shareholder value over the long term.
Structure
and delivery
50% of the LTVR is awarded in restricted share rights (known as restricted rights). For the CEO, 50% vest after four years
and 50% vest after five years. For Group Executives, 100% vest after four years.
One restricted right provides the holder with one Westpac ordinary share at the time of vesting with no exercise cost.
Executives receive dividend equivalent payments as outlined below.
Award opportunityThe value of LTVR restricted rights awarded to the CEO and Group Executives is expressed as a percentage of fixed
remuneration. The value of LTVR restricted rights is set considering a range of factors including market competitiveness.
The face value of the 2024 LTVR restricted rights opportunity for the CEO and Group Executives in business roles is
70% of fixed remuneration (inclusive of superannuation as at 1 October 2023). The face value of the LTVR restricted
rights opportunity for Group Executives in functional roles is 55% of fixed remuneration (inclusive of superannuation as at
1 October 2023).
Allocation
methodology
The number of restricted rights each executive receives will be determined by dividing the dollar value of the LTVR
restricted rights award by the face value of a restricted right. The face value of a restricted right is the five day VWAP up to
the commencement of the performance period (which is 1 October 2023 for the 2024 LTVR grant).
Performance
condition
The restricted rights are subject to performance conditions which are assessed prior to the grant and prior to vesting.
These assessments are known as the pre-grant assessment and the pre-vest assessment.
The assessment is focused on maintaining or improving Group risk culture. The assessment will be primarily based on the
assessment of collective Group risk culture as part of the Board’s annual attestation to APRA required under Prudential
Standard CPS 220 Risk Management, which is a multi factorial, evidence based process. A prudential soundness gate
applies. The Board will also consider if there have been any significant risk outcomes or any serious misconduct that have
not been sufficiently addressed through performance management or STVR outcomes.
Step 1: Assessment of risk factors
1.Prudential soundness gate: Has Westpac remained safe and secure, taking into account capital position and liquidity?
Prudential soundness is measured through the common equity tier 1 capital ratio, liquidity coverage ratio and the
net stable funding ratio.
2.Group risk culture: Has Group risk culture maturity been maintained or improved, considering both executive actions or
inactions? The risk culture assessment involves a series of inputs, a review process and a Board assessment of Group
risk culture.
3.Significant risk outcomes: Have risk outcomes arisen that have a significant and material impact on the Group, not
sufficiently addressed elsewhere?
4.Serious misconduct: Has Westpac suffered from a serious misconduct issue, not sufficiently addressed elsewhere?
Step 2: Consider Board discretion
Considerations to guide the application of discretion and the overall assessment include:
•The materiality of the adverse impact on Westpac’s financial position, or reputation, or customers, or shareholders, or
employees or regulatory standing.
•Whether the outcome was specific to Westpac, the banking industry or the broader market.
•The extent to which performance and reward outcomes are already impacted (e.g. through remuneration adjustments),
at a collective or individual level.
•Whether any adjustment should be made on a collective or individual basis.
Given the focus on maintaining or improving Group risk culture over the performance period, adjustments are unlikely at
the pre-grant assessment and any potential adjustment is more likely at the pre-vest assessment.
Assessment of
performance
outcomes
LTVR restricted rights are assessed against risk culture at grant and following a four year performance period. The
assessment of performance includes an assessment of risk factors and considers Board discretion.
Dividend
equivalent
payments
Dividend equivalent payments are payable to the extent that LTVR vests. For LTVR restricted rights, these are accrued for
the performance period and the further deferral period after the performance period (if applicable), and paid at the end
of the deferral period. Dividend equivalent payments are calculated by multiplying the number of LTVR restricted rights
eligible to vest by the declared dividend price on each respective record date during the applicable period. The calculation
excludes franking credits.
Exercise periodVested rights may be exercised up to a maximum of two years from the vesting date of the award and will be auto-
exercised if not exercised within the period. The exercise price for the rights is zero.
No re-testingThere is no re-testing. Awards that have not vested after the peformance period are lapsed.
Early vestingUnvested awards may vest (unless prevented by law) before the performance test date in the event of a change of control
in Westpac as determined at the discretion of the Board or where employment ceases due to death or disability.
Delayed vestingRefer to Section 5.4 for further information.
Treatment
of awards
on cessation
of employment
Refer to Section 5.4 for further information.
Remuneration
adjustments
Refer to Section 5.4 for further information.
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5.3.2. Long term variable reward performance rights for 2024
Long term variable reward performance rights
PurposeReward executives for creating shareholder value over the long term.
Structure and
delivery
50% of the LTVR is awarded in performance share rights (known as performance rights) which vest after six years for the CEO
and five years for Group Executives.
One performance right provides the holder with one Westpac ordinary share at the time of vesting with no exercise cost.
Executives receive dividend equivalent payments as outlined below.
Award
opportunity
The value of LTVR performance rights awarded to the CEO and Group Executives is expressed as a percentage of fixed
remuneration. The value of LTVR performance rights is set considering a range of factors including market competitiveness.
The face value of the 2024 LTVR performance rights opportunity for the CEO and Group Executives in business roles is
70% of fixed remuneration (inclusive of superannuation as at 1 October 2023). The face value of the LTVR performance
rights opportunity for Group Executives in functional roles is 55% of fixed remuneration (inclusive of superannuation as at
1 October 2023).
Allocation
methodology
The number of performance rights each executive receives will be determined by dividing the dollar value of the LTVR
performance rights award by the face value of a performance right. The face value of a performance right is the five day
VWAP up to the commencement of the performance period (which is 1 October 2023 for the 2024 LTVR grant).
Performance
condition
LTVR performance rights are subject to a relative TSR performance condition that aims to achieve long term growth in
shareholder value and support alignment between executive reward and shareholder interests. Relative TSR is a measure of the
total return delivered to shareholders over the performance period assuming dividends are reinvested, relative to that of peers.
The performance condition measures Westpac’s TSR performance against eight Australian financial services companies using a
percentile ranking vesting schedule as outlined below.
Westpac’s TSR performanceIndicative vesting percentage
At the 75th percentile or higher100%
Between the median and the 75th percentilePro-rata vesting between 50% and 100%
At the median50%
Below the median0%
The comparator group of companies comprise: AMP Limited, Australia & New Zealand Banking Group Limited, Bank of
Queensland Limited, Bendigo and Adelaide Bank Limited, Commonwealth Bank of Australia, Macquarie Group Limited, National
Australia Bank Limited and Suncorp Group Limited. The Board retains discretion to amend the comparator group and
determine the overall vesting outcome as appropriate.
Assessment of
performance
outcomes
LTVR performance rights are subject to relative TSR performance following a four year performance period.
The relative TSR result is calculated independently to ensure external objectivity before being provided to the Board to
determine the vesting outcome. The Board may exercise discretion in determining the final vesting outcome.
Dividend
equivalent
payments
Dividend equivalent payments are payable to the extent that LTVR vests. For LTVR performance rights, these are only accrued
for the further deferral period after the performance period and paid at the end of the deferral period. Dividend equivalent
payments are calculated by multiplying the number of LTVR performance rights eligible to vest by the declared dividend price
on each respective record date during the applicable period. The calculation excludes franking credits.
Exercise periodVested rights may be exercised up to a maximum of two years from the vesting date of the award and will be auto-exercised if
not exercised within the period. The exercise price for the rights is zero.
No re-testingThere is no re-testing. Awards that have not vested after the performance period are lapsed.
Early vestingUnvested awards may vest (unless prevented by law) before the performance test date in the event of a change of control in
Westpac as determined at the discretion of the Board or where employment ceases due to death or disability.
Delayed
vesting
Refer to Section 5.4 for further information.
Treatment of
awards on
cessation of
employment
Refer to Section 5.4 for further information.
Remuneration
adjustments
Refer to Section 5.4 for further information.
5.4. Common design features for variable reward
Delayed
vesting
The Board has discretion (subject to law) to delay vesting of variable reward if the individual is under investigation for adverse
risk or conduct events including misconduct, is the subject of or implicated in legal or regulatory proceedings, if the Board
considers it reasonable to delay vesting, or if delayed vesting is otherwise required by law.
Treatment of
awards on
cesssation of
employment
Unvested variable reward lapses where the CEO or a Group Executive resigns or otherwise leaves the Group (except for the
reasons listed below) before vesting occurs unless the Board determines that some of the unvested variable reward should
remain on foot.
If the CEO or a Group Executive ceases employment because of death or total and permanent disability, all unvested variable
reward immediately vests or becomes exercisable unless prevented by law.
If the CEO or a Group Executive ceases employment because they retire, are retrenched or cease employment by agreed
separation, unvested variable reward stays on foot subject to applicable performance conditions and subject to any reduction
determined by the Board.
Remuneration
adjustments
The Board has discretion to adjust variable reward (including current year STVR) downwards, including to zero, in specified
circumstances including serious misconduct, if serious circumstances or new information come to light which mean that in the
Board’s view all or part of the award was not appropriate, or where required by law or prudential standards.
The Board will typically apply the adjustment to unvested deferred STVR where an adjustment to current year STVR is
considered insufficient or unavailable, followed by an adjustment to unvested LTVR where an adjustment to current and
deferred STVR is considered insufficient or unavailable. Clawback may also apply to vested variable reward, to the extent
legally permissible and practicable.
Refer to Section 4.3 for further information on our approach to remuneration adjustments.
84WESTPAC 2024 ANNUAL REPORT
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5.5. Executive minimum shareholding requirements and current compliance
The CEO and Group Executives are required to build and maintain a significant Westpac shareholding to strengthen
alignment with shareholder interests. LTVR restricted rights and LTVR performance rights are not included in the
calculation of shareholdings until performance conditions are met.
At 30 September 2024, the CEO and Group Executives comply with or are on track to meet the requirements.
Aspect of the requirementsDescription
Requirement levelCEO: Two times fixed remuneration including superannuation.
Group Executives: One times fixed remuneration including superannuation.
Sale restrictionsExecutives are restricted from selling vested equity, other than for the purpose of meeting tax obligations,
as follows:
•For LTVR awards granted from 1 October 2021 onwards, until the required shareholding level is met; and
•For STVR awards, where the required shareholding level is not met at the end of the accumulation period.
Accumulation periodWithin five years of 1 October 2022 (i.e. by 1 October 2027), or appointment to their role, whichever is later. The
Board Remuneration Committee retains discretion to make adjustments in exceptional circumstances.
Calculation
of shareholdings
Unvested LTVR (including restricted rights and performance rights) is not included in the calculation of
shareholdings until performance conditions are met. Other shareholdings are recognised. This includes:
•Shares held in an employee share plan (including deferred STVR);
•Shares held outright in the individual’s name either solely or jointly with another person; and
•Shares held in a family trust or a self-managed superannuation fund.
5.6. Hedging policy
Participants in Westpac’s equity plans are prohibited from entering, either directly or indirectly, into hedging
arrangements for unvested awards. No financial products may be used to mitigate the risk associated with these awards.
Any attempt to hedge awards will result in forfeiture and the Board may consider other disciplinary action. These
restrictions satisfy the requirements of the Corporations Act which prohibits hedging of unvested awards.
5.7.
Employment agreements
The remuneration and other terms of employment for the CEO and Group Executives are formalised in their employment
agreements. Each agreement provides for the payment of fixed remuneration (including superannuation contributions),
variable reward and other benefits such as death and disablement insurance cover.
The table below details the key terms including termination provisions of the employment agreements for the CEO and
Group Executives.
Term
Conditions
Duration of agreementOngoing until notice given by either party.
Notice (by the
executive or the Group)
to terminate employment
12 months.
a
Termination payments on
termination without cause
b
Deferred STVR (which may be awarded on a pro rata basis for the part year served) and unvested LTVR will be
treated in accordance with the applicable equity plan rules, and will remain subject to remuneration adjustments if
the award is retained.
Termination for causeOccurs immediately for misconduct. Deferred STVR and LTVR is forfeited, noting the Board has discretion to
determine otherwise.
Post-employment restraintsCEO: 12 months non-compete and non-solicitation restraints.
Group Executives: 6 months non-compete and 12 months non-solicitation restraints.
a.Payment in lieu of notice may in certain circumstances be approved by the Board for some or all of the notice period.
b.The maximum aggregate liability for termination benefits in respect of notice periods for the CEO and Group Executives at 30 September
2024 was $12.5 million (2023: $11.0 million).
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6. Non-executive Director remuneration
6.1. Structure and policy
Non-executive Director fees are not related to Westpac’s results. Fees are paid in cash and no discretionary payments
are made for performance. Non-executive Directors are required to build and maintain a minimum shareholding from
their own funds to align their interests with those of shareholders (refer to Section 6.3 for further details).
The table below sets out the components of Non-executive Director remuneration.
Non-executive Director remuneration
Base feesRelate to service on the Westpac Banking Corporation Board. The base fee for the Chair covers all responsibilities,
including for Board Committees.
Committee feesAdditional fees are paid to Non-executive Directors (other than the Board Chair) for chairing or being a member of
Board Committees, other than the Board Nominations & Governance Committee.
Employer superannuation
contributions
Reflects statutory superannuation contributions which are capped at the superannuation maximum contributions
base as prescribed under the superannuation guarantee legislation.
6.2. Non-executive Director remuneration in 2024
The table below sets out the annual Board and standing Committee fees (exclusive of superannuation). Changes in
Board and Committee composition during the year are set out in the overview of Directors' meetings in Section 9 of the
Directors' report.
For 2024, $3.3 million (72%) of the fee pool was used. The fee pool of $4.5 million per annum was approved by
shareholders at the 2008 Annual General Meeting and includes employer superannuation contributions.
The members of the Nominations & Governance Committee do not receive any additional fees for their roles on
the Committee.
Base and Committee fees
Annual fee $ (exclusive of superannuation)
Chair823,000
Other Non-executive Directors215,000
Committee Chair fees
Board Audit Committee69,000
Board Risk Committee69,000
Board Remuneration Committee59,000
Committee membership fees
Board Audit Committee31,000
Board Risk Committee31,000
Board Remuneration Committee28,000
During the year, we benchmarked Non-executive Director fees. As a result, we increased all Committee fees to $34,000.
We also increased the Board Remuneration Committee Chair fee to $69,000 to align to market, reflecting increased
regulatory complexity in financial services remuneration oversight. Both changes are effective from 1 October 2024.
Non-executive Directors may also receive fees for additional duties which are paid at a per meeting rate of $2,000
for Committee members and $4,000 for Committee Chairs (excluding superannuation). During the reporting period,
Peter Nash received additional fees of $12,000 for responsibilities and participation in a Due Diligence Committee and
Margaret Seale received additional fees of $20,000 for assistance in recruitment of the new Chair.
In addition, to support the technology transformation being delivered through the UNITE program, a UNITE Oversight
Group was established in May 2024 comprising three Non-executive Directors (Nerida Caesar, Andy Maguire and Peter
Nash). To recognise the additional workload, these Non-executive Directors each receive an additional fee of $34,000
(excluding superannuation) per annum effective from 1 June 2024.
6.3.
Non-executive Director minimum shareholding requirement
Non-executive Directors are required to build and maintain a holding in Westpac ordinary shares with a value not less
than the Board base fee (and in case of the Chair, the Chair's fee), within five years of appointment to the Board.
At 30 September 2024, all Non-executive Directors comply with or are on track to meet the requirement.
86WESTPAC 2024 ANNUAL REPORT
DIRECTORS’ REPORT
7. Statutory remuneration details
7.1. Details of Non-executive Director remuneration
The table below details Non-executive Director remuneration.
Short-term benefits
Post-employment
benefits
Westpac Banking
Corporation Board
fees
a
Non-
monetary
benefits
b
SuperannuationTotal
Name$$$$
Current Non-executive Directors
Steven Gregg, Chair
c
2024680,7275,89330,017716,637
2023--------------------- Not a KMP in 2023 ---------------------
Tim Burroughs
2024269,410-28,054297,464
2023138,123-14,163152,286
Nerida Caesar
2024258,208-27,674285,882
2023240,392-24,901265,293
Audette Exel AO
2024316,232-28,211344,443
2023302,177-26,020328,197
Andy Maguire
c
202453,631-6,16859,798
2023--------------------- Not a KMP in 2023 ---------------------
Peter Nash
2024339,478-28,316367,795
2023316,177-25,851342,028
Nora Scheinkestel
2024340,346--340,346
2023306,951-25,076332,027
Margaret Seale
2024263,977-26,459290,436
2023270,731-25,452296,183
Michael Ullmer AO
2024300,846-8,214309,060
2023134,764-6,323141,087
Former Non-executive Directors
John McFarlane
c
2024170,9271,7564,761177,444
2023824,1778,33525,909858,421
Chris Lynch
c
202456,904-6,15563,059
2023275,177-25,846301,023
Total fees
20243,050,6857,649194,0293,252,364
2023
d
3,082,7048,335210,8223,301,861
a.Includes base fees, Committee fees and any other fees.
b.Non-monetary benefits are determined on the basis of the cost to the Group including associated fringe benefits tax (FBT) where applicable
and includes bank funded car parking.
c.The information relates to the period the individual was a KMP. Refer to Section 2 for further details.
d.Total fees for 2023 shown as reported in the 2023 Annual Report. The total fees for 2023 include individuals that are not KMP in 2024 and
therefore their individual remuneration is not included in the above table.
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7.2. Statutory remuneration details – Chief Executive Officer and Group Executives
The table below details remuneration for the CEO and Group Executives prepared and audited in accordance with
Australian Accounting Standards.
Short term benefits
Post-
employment
benefits
Other
long term
benefitsShare-based payments
Fixed
remuneration
a
Cash
STVR
award
b
Non-
monetary
benefits
c
Other
payments
d
Superannuation
benefits
e
Long
service
leave
Restricted
shares
f
Restricted
rights
g
Performance
rights
g
Total
h
$$$$$$$$$
Managing Director & Chief Executive Officer
Peter King, Managing Director & Chief Executive Officer
i
20242,418,943975,00020,823-48,24922,0241,198,595728,3281,521,4876,933,449
20232,437,7731,125,00030,873-45,67637,773982,267-1,084,0595,743,421
Group Executives
Scott Collary, Chief Information Officer
20241,300,753508,5008,333-34,73921,537563,784241,512740,6743,419,832
20231,187,292508,50019,658-33,16118,593806,081-631,6473,204,932
Nell Hutton, Chief Executive, Westpac Institutional Bank
20241,230,101502,0005,359-35,04617,3521,132,285238,441105,9323,266,516
2023------------------------------------------------------- Not a KMP in 2023 -------------------------------------------------------
Carolyn McCann, Group Executive, Customer & Corporate Services
20241,038,679437,5005,359-36,47915,727398,684198,233482,3932,613,054
20231,014,216380,0005,631-29,92721,684329,981-449,3752,230,814
Catherine McGrath, Chief Executive Officer, Westpac New Zealand
2024857,768311,1898,386-119,894--523,182388,3672,208,786
2023816,255350,35611,050-114,168--281,725308,2471,881,801
Anthony Miller, Chief Executive, Business & Wealth
20241,279,390478,0003,315166,27737,89819,056684,787238,441717,7283,624,892
20231,195,992611,0004,489404,71335,43221,539851,380-610,1243,734,669
Christine Parker, Group Executive, Human Resources
20241,045,623417,0003,315-32,97616,896401,268152,684524,4122,594,174
2023995,877392,0003,306-30,30515,183353,590-534,1362,324,397
Michael Rowland, Chief Financial Officer
20241,249,398500,5003,315-34,00718,870465,327186,823579,2453,037,485
20231,207,072446,5004,888-31,27819,038404,955-494,8882,608,619
Jason Yetton, Chief Executive, Consumer
20241,200,082443,0003,315-38,00919,050539,012238,441770,5743,251,483
20231,175,407611,0004,489-35,49522,119559,508-702,3923,110,410
Ryan Zanin, Chief Risk Officer
20241,663,065674,000151,817116,6822,09725,268730,310249,101541,0634,153,403
20231,737,772503,50081,424594,2779,48225,453319,974-429,2193,701,101
a.Fixed remuneration is the total cost of cash salary, salary sacrificed benefits and an accrual for annual leave. Superannuation in excess of the
maximum contribution base that is paid as cash is also included.
b.The cash STVR award is typically paid in December following the end of the financial year. A downward adjustment was applied to the cash
and deferred portions of the 2024 STVR award for one Group Executive based on an assessment of leadership behaviours.
c.Non-monetary benefits are determined on the basis of the cost to the Group (including associated FBT, where applicable) and may include
annual health checks, provision of taxation advice, bank funded car parking, executive life insurance as well as relocation costs and travel
allowances. Cash relocation allowances are recognised as an expense from the commencement date as a KMP to the end of a clawback period.
d.Includes payments on termination or other contracted amounts for current KMP. The cash portion of buy out arrangements is recognised as an
expense from commencement date as a KMP to the end of the deferral period. For Anthony Miller, the cash buy out arrangement was agreed
on 25 March 2021, 29% of the cash portion of the buy out was paid in 2024 and the remaining cash portions of the award are due to be paid
through to March 2025. For Ryan Zanin, the cash buy out arrangement was agreed on 30 August 2022, 31% of this award was paid in 2024 and
the remaining portions of the award are due to be paid through to December 2024.
e.Includes Group life and salary continuance insurance cover provided at no cost to the individual. Superannuation benefits have been calculated
consistent with AASB 119 Employee Benefits.
f.The amortisation approach for restricted shares commences from the service period when the award was earned through to the end of the
deferral period. A portion of the restricted shares held by Scott Collary, Nell Hutton and Anthony Miller represent an allocation made to
compensate them for remuneration foregone from their previous employer on resignation to join Westpac. The restricted shares replicate the
deferral periods of the equity foregone.
g.Equity-settled remuneration is based on the amortisation over the performance and the deferral period. It is calculated using the fair value
at the grant date of hurdled and unhurdled share rights granted during the financial year up to 30 September 2024. Fair value is calculated
88WESTPAC 2024 ANNUAL REPORT
DIRECTORS’ REPORT
using an external valuation based on the invitation opt out date. The 2024 value for Catherine McGrath includes 38% attributed to deferred
STVR awards.
h.The table includes remuneration details of individuals that are KMP for 2024, whereas the totals presented in Note 34 to the financial
statements includes former KMP who ceased as KMP in 2023. The percentage of total remuneration which is performance related (i.e. cash
STVR plus share-based payments) was: Peter King 64%, Scott Collary 60%, Nell Hutton 61%, Carolyn McCann 58%, Catherine McGrath 55%,
Anthony Miller 58%, Christine Parker 58%, Michael Rowland 57%, Jason Yetton 61% and Ryan Zanin 53%. The percentage of total remuneration
delivered in the form of share rights was: Peter King 32%, Scott Collary 29%, Nell Hutton 11%, Carolyn McCann 26%, Catherine McGrath 41%,
Anthony Miller 26%, Christine Parker 26%, Michael Rowland 25%, Jason Yetton 31% and Ryan Zanin 19%.
i.Peter King intends to retire as CEO on 15 December 2024. His 2024 statutory remuneration includes $3,448,410 related to the amortisation of
share-based payments. As a result of his intention to retire on 15 December 2024, the amortisation of these share-based payments (restricted
shares, restricted rights and performance rights) is being recognised over an accelerated vesting period. This resulted in additional accounting
amortisation of $850,382 recognised in 2024 across all share-based payments. The remaining accounting amortisation relating to these
awards will be recognised in 2025. The full value will be recognised for these awards over this accelerated vesting period regardless of whether
the awards ultimately vest. The awards remain subject to the existing performance conditions and may or may not vest subject to meeting
these performance conditions. Refer to the ASX release dated 9 September 2024 for further information of Peter King’s exit arrangement.
In addition, in July 2024, Peter King received the standard service recognition award of $3,000 for when an employee reaches 30 years of
service at Westpac.
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7.3. Movement in equity-settled instruments during the year
The table below shows the movements in the number and value of equity instruments for the CEO and Group Executives
during 2024.
NameType of equity-based instrument
Number
granted
a
Number
vested
b
Number
exercised
c
Value granted
$
d
Value
exercised
$
e
Value forfeited
or lapsed
$
e
Managing Director & Chief Executive Officer
Peter KingRestricted shares48,80640,821-1,132,299--
Restricted rights82,977--1,925,066--
Performance rights82,978--1,062,948-2,228,805
Group Executives
Scott CollaryRestricted shares22,06067,576-511,792--
Restricted rights42,863--994,422--
Performance rights42,864--549,088--
Nell HuttonRestricted shares54,2298,983-1,258,113--
Restricted rights42,318--981,778--
Performance rights42,319--542,106--
Carolyn McCannRestricted shares16,48513,715-382,452--
Restricted rights35,182--816,222--
Performance rights35,183--450,694-873,728
Catherine McGrathUnhurdled share rights16,5977,223-360,951--
Restricted rights31,670--734,744--
Performance rights31,670--405,693--
Anthony MillerRestricted shares26,50765,029-614,962--
Restricted rights42,318--981,778--
Performance rights42,319--542,106--
Christine ParkerRestricted shares17,00615,222-394,539--
Restricted rights27,098--628,674--
Performance rights27,098--347,125-1,107,043
Michael RowlandRestricted shares19,37018,073-449,384--
Restricted rights33,157--769,242--
Performance rights33,158--424,754--
Jason YettonRestricted shares26,50725,969-614,962--
Restricted rights42,318--981,778--
Performance rights42,319--542,106-1,519,196
Ryan ZaninRestricted shares43,5344,851-1,009,989--
Restricted rights44,210--1,025,672--
Performance rights44,211--566,343--
a.Restricted rights and performance rights granted to the CEO are approved by shareholders at the Annual General Meeting each year under
ASX Listing Rule 10.14. We do not grant options. We award deferred STVR in the form of restricted shares (or unhurdled share rights for KMP
in New Zealand). 2023 deferred STVR was awarded on 19 January 2024 for the CEO and Group Executives, the deferral period commenced
on 1 October 2023, 50% of the award vested on 1 October 2024 and 50% will vest on 1 October 2025 (subject to service conditions and
remuneration adjustments).
b.No performance rights granted in 2019 vested in October 2023 when assessed against the relative TSR performance condition. 100% of the
deferred STVR due to vest in 2023 vested at the end of the deferral period. For Scott Collary, 45,879 of the 67,576 restricted shares that vested
were in relation to a buy out award which represents 61% of the total number of shares allocated for that award which has now vested in full.
For Anthony Miller, 46,798 of the 65,029 restricted shares that vested were in relation to a buy out award which represents 38% of the total
number of shares allocated for that award and the remaining portions of the award are due to vest through to March 2025. For Nell Hutton, the
restricted shares that were granted relate to awards for her prior role before becoming a KMP.
c.Vested share rights granted prior to September 2023 may be exercised up to a maximum of 15 years from their commencement date. Vested
share rights granted after September 2023 may be exercised up to two years following the vesting date, otherwise the share rights will be
auto-exercised at the end of the term.
d.For performance rights, the value granted represents the number of securities granted multiplied by the fair value per instrument as set
out in the table in the sub-section titled ‘Overview of unvested equity awards’. For restricted shares and restricted rights, the value granted
represents the number of rights granted multiplied by the closing price of a Westpac ordinary share on the date the awards were granted
($23.20). These values, which represent the full value of the equity-based awards made to the CEO and Group Executives in 2024, do not
reconcile with the amount shown in the table in Section 7.2 which shows the amount amortised in the current year. The minimum total value
of the grants for future
financial years is zero and an estimate of the maximum possible total value in future financial years is the fair value, as
shown above. This includes Ryan Zanin’s additional grant of restricted shares and their estimated maximum possible total value is the fair value
of $500,000.
e.The value of each share right exercised, forfeited or lapsed is calculated based on the closing price of a Westpac ordinary share on the date of
exercise (or forfeiture or lapse). The overall values reflect forfeitures or lapses as a result of a failure to meet performance conditions.
90WESTPAC 2024 ANNUAL REPORT
DIRECTORS’ REPORT
7.3.1 Overview of unvested equity awards
The table below outlines key details of unvested STVR and LTVR as at 30 September 2024 awarded to the CEO and
Group Executives while in KMP roles
1
. All awards are subject to service conditions, performance conditions (where
applicable), deferral periods and remuneration adjustments. Further details of the awards can be located in prior
Annual Reports.
Fair values
Fair values are determined in accordance with the requirements of AASB 2 Share-based Payment.
For STVR and LTVR restricted rights, the fair value is calculated using the closing price of the grant date, which for
accounting purposes is the invitation opt out date.
For LTVR performance rights, fair values are independently calculated by PFS Consulting at the grant date (which is the
invitation opt out date) using a Monte Carlo simulation pricing model.
Allocation values
The value granted to executives for remuneration purposes differs from the fair value used for accounting purposes.
For STVR grants, the allocation is determined by dividing the dollar value of the STVR award by the five day VWAP up to
the grant date. Refer to Section 5.2 for further details of STVR.
For LTVR grants, the allocation is determined by dividing the dollar value of the LTVR awards by the face value of a
share right. The face value of a share right is the five day VWAP up to the commencement of the performance period.
Refer to Section 5.3 for further details of LTVR.
Award nameGrant date
Performance
period start
date
Performance
period end
dateDeferral period end dateExpiryFair value
Performance
conditions
2023 STVR19 Jan 20241 Oct 202230 Sep 20231 Oct 2024 (tranche
one) and 1 Oct 2025
(tranche two)
N/A$23.20Service (noting
STVR Scorecard
assessment
was completed)
2022 STVR15 Dec 20221 Oct 202130 Sep 20221 Oct 2024
(tranche two)
N/A$23.50Service (noting
STVR Scorecard
assessment
was completed)
2024 LTVR
performance
rights
19 Jan 20241 Oct 202330 Sep 2027CEO: 15 Nov 2029
Group Executives: 15
Nov 2028
CEO: 15 Nov 2031
Group Executives: 15
Nov 2030
$12.81Relative TSR
2024 LTVR
restricted
rights
19 Jan 20241 Oct 202330 Sep 2027CEO: 50% on 15 Nov
2027 (tranche one) and
50% on 15 Nov 2028
(tranche two)
Group Executives: 15
Nov 2027
CEO: 15 Nov 2029
(tranche one) and 15
Nov 2030 (tranche two)
Group Executives: 15
Nov 2029
$23.20Pre-vest
assessment of
risk culture
(noting a pre-
grant assessment
was completed)
2023 LTVR
performance
rights
15 Dec 20221 Oct 202230 Sep 202625 Oct 20261 Oct 2037$11.90Relative TSR
2022 LTVR
performance
rights
CEO: 16 Dec
2021
Group
Executives:
15 Dec 2021
1 Oct 202130 Sep 20251 Nov 20251 Oct 2036CEO: $5.81
Group
Executives:
$5.82
Relative TSR
2021 LTVR
performance
rights
a
CEO: 16 Dec
2020
Group
Executives:
11 Dec 2020
1 Oct 202030 Sep 202431 Oct 20241 Oct 2035CEO: $6.35
Group
Executives:
$6.40
Relative TSR
a.We tested the 2021 LTVR performance rights on 1 October 2024. Our TSR for the 4 year performance period was 113% resulting in a 50th
percentile ranking relative to the comparator group. This resulted in 50% of the 2021 LTVR award vesting.
1.In addition, Anthony Miller was granted a buy out award on 8 April 2021 at a fair value of $18.73 that will vest in March 2025. Carolyn
McCann was granted an additional 2022 LTVR award on 4 March 2022 to recognise an expanded role at a fair value of $8.05. Ryan Zanin's
pro rata 2022 LTVR award was granted on 17 May 2022 at a fair value of $9.32 given his commencement date with Westpac was in April
2022, which was after the grant of 2022 LTVR to other Group Executives in December 2021. Ryan Zanin was awarded a grant of restricted
shares of $500,000 on 19 January 2024 at a fair value of $23.20. The award recognises the importance of his role in completing a critical risk
management and risk culture transformation, and increases alignment with shareholders through greater equity holdings. The award is subject
to a service condition until January 2026 and remuneration adjustments and scheduled to vest in three tranches on January 2026, January
2028 and January 2029.
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7.4. Details of Westpac equity holdings of Non-executive Directors
The table below sets out details of relevant interests in Westpac ordinary shares held by Non-executive Directors
(including their related parties) during the year ended 30 September 2024
1
.
Number held at
start of the year
Changes
during the year
Number held at
end of the year
Current Non-executive Directors
Steven Gregg
a
n/a-75,208
Tim Burroughs67,302-67,302
Nerida Caesar13,583-13,583
Audette Exel AO11,56239011,952
Andy Maguire
a
n/a--
Peter Nash15,360-15,360
Nora Scheinkestel14,8742,35117,225
Margaret Seale
b
26,158-26,158
Michael Ullmer AO
c
12,570-12,570
Former Non-executive Directors
John McFarlane
a
50,000-n/a
Chris Lynch
a,d
13,090-n/a
a.The information relates to the period the individual was a KMP. Refer to Section 2 for further details.
b.In addition to holding ordinary shares, Margaret Seale and her related parties held interests in 100 Westpac Capital Notes 7 (ASX: WBCPJ) at
year end.
c.In addition to holding ordinary shares, Michael Ullmer AO and his related parties held interests in 800 Westpac Capital Notes 5 (ASX: WBCPH),
300 Westpac Capital Notes 9 (ASX: WBCPL) and 1,000 Westpac Subordinated Notes at year end.
d.In addition to holding ordinary shares, Chris Lynch and his related parties held interests in 1,137 Westpac Capital Notes 5 (ASX: WBCPH) as at
his retirement date of 14 December 2023.
1.Other than as disclosed above, no share interests include non-beneficially held shares.
92WESTPAC 2024 ANNUAL REPORT
DIRECTORS’ REPORT
7.5. Details of Westpac equity holdings of executive Key Management Personnel
The table below details Westpac equity held and movement in that equity by the CEO and Group Executives (including
their related parties) for the year ended 30 September 2024
1
.
Name
Type of equity-
based instrument
Number
held at
start of
the year
a
Number
granted
during the
year as
remuneration
Received
on exercise
and/or
exercised
during the
year
Number
forfeited or
lapsed
during the
year
b
Other
changes
during the
year
Number held
at end of the
year
Number vested
and exercisable at
end of the year
Managing Director & Chief Executive Officer
Peter KingOrdinary shares213,52748,806---262,333-
Restricted rights-82,977---82,977-
Performance rights570,64482,978-(101,348)-552,274-
Group Executives
Scott CollaryOrdinary shares118,48322,060---140,543-
Restricted rights-42,863---42,863-
Performance rights315,95642,864---358,820-
Nell HuttonOrdinary shares119,81454,229--(8,983)165,060-
Restricted rights-42,318---42,318-
Performance rights-42,319---42,319-
Carolyn McCannOrdinary shares94,60616,485---111,091-
Restricted rights-35,182---35,182-
Performance rights230,27435,183-(39,815)-225,642-
Catherine McGrathOrdinary shares-------
Unhurdled share rights14,87416,597---31,4717,223
Restricted rights-31,670---31,670-
Performance rights133,48331,670---165,153-
Anthony MillerOrdinary shares159,75626,507---186,263-
Restricted rights-42,318---42,318-
Performance rights307,15242,319---349,471-
Christine ParkerOrdinary shares53,40117,006---70,407-
Restricted rights-27,098---27,098-
Performance rights279,24827,098-(52,293)-254,053-
Michael RowlandOrdinary shares36,14619,370---55,516-
Restricted rights-33,157---33,157-
Performance rights250,48033,158---283,638-
Jason YettonOrdinary shares51,93926,507---78,446-
Restricted rights-42,318---42,318-
Performance rights366,86142,319-(54,471)-354,709-
Ryan ZaninOrdinary shares9,70243,534---53,236-
Restricted rights-44,210---44,210-
Performance rights150,93444,211---195,145-
a.Ordinary shares held at the start of the year have been revised to reflect updated balances during the current reporting period for two KMP.
b.Forfeitures or lapses during the year are as a result of a failure to meet performance conditions.
1.The highest number of shares held by an individual in the table is 0.0076% of total Westpac ordinary shares outstanding as at
30 September 2024.
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7.6. Loans to Non-executive Directors and executive Key Management Personnel
Financial instrument transactions are provided in the ordinary course of business. These transactions are at arm's-length
on terms and conditions as they apply to all employees.
The table below details loans to Non-executive Directors, the CEO and Group Executives (including their related parties)
of the Group.
Balance at start of
the year
$
a
Interest paid and
payable for the year
$
Interest not charged
during the year
$
Balance at end of
the year
$
Number in Group at
end of the year
Non-executive Directors4,507,501191,280-3,012,3673
CEO and Group Executives30,377,545839,000-29,051,8177
Total34,885,0461,030,280-32,064,18410
a.Balances at start of the year have been revised for updated balances during the reporting period.
The table below details KMP (including their related parties) with aggregate loans above $100,000 during 2024.
Balance at start of
the year
$
a
Interest paid and
payable for the year
$
Interest not charged
during the year
$
Balance at end of
the year
$
Highest indebtedness
during the year
$
Non-executive Directors
Peter Nash2,364,821149,359-2,498,9783,023,589
Nora Scheinkesteln/a--100,0001,600,000
Margaret Seale620,44229,989-413,389655,094
Former Non-executive Directors
Chris Lynch
b
1,522,23811,932-n/a1,522,238
CEO and Group Executives
Peter King1,158,00010,492-1,158,0001,159,175
Scott Collary2,294,95840,606-2,166,5132,289,315
Nell Hutton14,441,500303,040-14,432,94014,471,500
Carolyn McCann3,396,296121,040-3,250,6723,401,353
Anthony Miller2,277,5138,591-1,389,1643,716,759
Christine Parker5,434,278269,863-5,396,2365,471,019
Jason Yetton1,375,00085,368-1,258,2921,425,371
a.Balances at start of the year have been revised for updated balances during the reporting period.
b.The information relates to the period the individual was a KMP. Refer to Section 2 for further details.
Other transactions relating to KMP
Accrual for dividend equivalent payments
The non-current liability owing as a result of dividend equivalent payments that have been accrued for the 2024
LTVR restricted rights was $381,700 as at 30 September 2024. Details of the LTVR restricted rights can be found in
Section 5.3.1.
94WESTPAC 2024 ANNUAL REPORT
DIRECTORS’ REPORT
Auditor
Auditor’s independence declaration
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act is below:
PricewaterhouseCoopers, ABN 52 780 433 757
One International Towers Sydney, Watermans Quay, Barangaroo, GPO BOX 2650, SYDNEY NSW 2001
T: +61 2 8266 0000, F: +61 2 8266 9999, www.pwc.com.au
Liability limited by a scheme approved under Professional Standards Legislation.
Auditor’s Independence Declaration
As lead auditor for the audit of Westpac Banking Corporation for the year ended 30 September 2024,
I declare that to the best of my knowledge and belief, there have been:
(a)no contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
(b)no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Westpac Banking Corporation and the entities it controlled during the
period.
Colin Heath Sydney
Partner
PricewaterhouseCoopers
3 November 2024
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Non-audit services
We may decide to engage PwC on assignments additional to their statutory audit duties where their expertise or
experience with Westpac or a controlled entity is important.
Details of the non-audit service amounts paid or payable to PwC for non-audit services provided during the 2024 and
2023 financial years are set out in Note 33 (page 262) to the financial statements.
PwC also provides audit and non-audit services to non-consolidated entities, non-consolidated trusts of which a
Westpac Group entity is trustee, manager or responsible entity and non-consolidated superannuation funds or pension
funds. The fees in respect of these services were approximately $6.6 million in total (2023: $8.7 million). PwC may also
provide audit and non-audit services to other entities in which Westpac holds a minority interest and which are not
consolidated. Westpac is not aware of the amount of any fees paid to PwC by those entities.
Westpac has a policy on engaging PwC, details of which are set out in its 2024 Corporate Governance Statement in the
section ‘Engagement of the external auditor’.
The Board has considered the position and, in accordance with the advice received from the Board Audit Committee,
is satisfied that the provision of the non-audit services during 2024 by PwC is compatible with the general standard
of independence for auditors imposed by the Corporations Act. The Directors are satisfied, in accordance with advice
received from the Board Audit Committee, that the provision of non-audit services by PwC, as set out above, did not
compromise the auditor independence requirements of the Corporations Act for the following reasons:
•all non-audit services provided by PwC for the year have been reviewed by the Board Audit Committee, which is of
the view that they do not impact the impartiality and objectivity of PwC; and
•based on Board quarterly independence declarations made by PwC to the Board Audit Committee during the
year, none of the services undermine the general principles relating to auditor independence including reviewing
or auditing PwC’s own work, acting in a management or a decision-making capacity for the company, acting as
advocate for the company or jointly sharing economic risk and rewards.
Responsibility statement
The Directors of Westpac Banking Corporation confirm that to the best of their knowledge:
•the consolidated financial statements for the financial year ended 30 September 2024, which have been prepared
in accordance with the accounting policies described in Note 1 (page 149) to the consolidated financial statements,
being in accordance with Australian Accounting Standards (AAS), give a true and fair view of the assets, liabilities,
financial position and profit of the Group; and
•the Annual Report from the section entitled About Westpac (page 10) to and including the section entitled Segment
Reporting (page 130) and the subsection entitled 'Other Westpac business information' in the section entitled
Additional Information (page 290) includes a fair review of the information required by the Disclosure Guidance and
Transparency Rules 4.1.8R to 4.1.11R of the United Kingdom Financial Conduct Authority, together with a description
of the principal risks and uncertainties faced by the Group.
The Directors’ Report is signed in accordance with a resolution of the Board of Directors.
Steven Gregg
Chairman
3 November 2024
Peter King
Managing Director &
Chief Executive Officer
3 November 2024
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Significant developments
Westpac significant developments – Australia
Changes to Chairman, CEO and Board of Directors
On 14 December 2023, at the conclusion of the AGM, Mr
Steven Gregg succeeded Mr McFarlane as Chairman of the
Board following Mr McFarlane’s retirement.
On 9 September 2024, Westpac announced that Anthony
Miller will succeed Peter King as CEO and Managing
Director, effective 16 December 2024 following Mr King’s
retirement as CEO and Managing Director.
Independent Non-executive Director Chris Lynch retired
from the Board at the conclusion of the AGM on
14 December 2023.
On 15 July 2024, Mr Andy Maguire commenced as an
independent Non-executive Director of the Board.
On market buyback
As at 30 September 2024, Westpac had completed
$1.8 billion of the $2.5 billion on-market share
buyback previously announced, with 67.7 million Westpac
shares purchased at an average price of $26.78. The
shares bought back were subsequently cancelled. On
4 November 2024, Westpac announced an increase in
the amount of Westpac shares it intends to buyback
by up to a further $1.0 billion, to an aggregate total
buyback amount of up to $3.5 billion of Westpac shares.
Westpac reserves the right to vary, suspend or terminate
the buyback at any time.
External auditor rotation
On 8 March 2024, Westpac announced that KPMG was
the preferred firm to be appointed as Westpac’s external
auditor for the 2025 financial year, beginning 1 October
2024. This appointment is subject to the approval of
Westpac shareholders at the 2024 AGM.
Technology
simplification
On 27 March 2024, Westpac provided an update on
its technology simplification project, UNITE, a multi-year
program of work commenced in FY24.
Closure of RAMS to new business
On 6 August 2024, Westpac announced that it had
completed its strategic review of RAMS Financial Group
Pty Limited (RAMS) and would close RAMS to new home
loan applications. Existing RAMS customers continue to be
serviced, and their loans remain in place.
Regulatory and risk developments
Enforceable undertaking on risk governance
remediation, Integrated Plan and CORE program
In December 2023, Westpac completed the Integrated
Plan (IP) required under the enforceable undertaking
(EU) entered into with APRA in December 2020
in relation to our risk governance remediation and
supporting the strengthening of our risk governance,
accountability and culture. In its final report issued
30 April 2024, the Independent Reviewer (Promontory
Australia) confirmed that Westpac has successfully
completed the IP. Promontory Australia’s final report,
along with reports issued previously, are available on our
website at https://www.westpac.com.au/about-westpac/
media/core/. Westpac is continuing to focus on the
sustainability and effectiveness of the uplift delivered by
the IP through a transition phase.
APRA releases final Prudential Standard CPS 230
Operational Risk Management
On 17 July 2023, APRA released the final version
of the Prudential Standard CPS 230 Operational Risk
Management which will come into
effect from 1 July
2025. CPS 230 brings new and enhanced requirements
for our operational risk management, material service
provider management and business continuity planning;
and we are undertaking a programme of work to
assist in implementing these requirements. Details about
operational risk and the consequences of failing to comply
with regulatory requirements are set out in the 2024
Risk Factors.
Financial crime
We continue to make progress on improving our financial
crime risk management with significant ongoing work, as
we implement a multi-year program of work (including
AML/CTF, Sanctions, Anti-Bribery and Corruption, the
US Foreign Account Tax Compliance Act (FATCA) and
Common Reporting Standard (CRS)).
Through this work, we continue to undertake
activities to strengthen our AML/CTF Program,
including our Transaction Monitoring Program, and
remediate and improve our financial crime controls in
multiple areas including: initial, enhanced and ongoing
customer due diligence and associated record keeping;
upgrading customer and payment screening, enhancing
transaction monitoring and associated processes;
improving Electronic Funds Transfer Instruction processes;
establishing data reconciliations and checks to ensure
the completeness of data feeding into our
financial
crime systems; and improving regulatory reporting,
including in relation to International Funds Transfer
Instructions, Threshold Transaction Reports, Suspicious
Matter Reports (including ‘tipping off’ controls), and
FATCA and CRS reporting and equivalent reports in
jurisdictions outside Australia.
On 11 September 2024, the Anti-Money Laundering and
Counter-Terrorism Financing Amendment Bill 2024 was
introduced into Parliament. The Bill seeks to modernise
and overhaul the AML/CTF regime, to ensure Australia
continues to effectively deter, detect and disrupt financial
crime. We are considering the potential impacts of the
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proposed Bill, including on our policies, procedures,
systems and controls.
With increased focus on financial crime, further areas of
potential non-compliance have been, and may continue
to be identified, and we continue to liaise with AUSTRAC
and the ATO and local regulators in jurisdictions
outside Australia, as appropriate, including to remediate
findings and adopt recommendations from regulators
with significant ongoing programmes of work across
the Group. Details about the consequences of failing to
comply with financial crime obligations are set out in the
2024 Risk Factors.
Scams
In September 2024, the Australian Government released
draft legislation to implement the Scams Prevention
Framework (SPF). The SPF outlines the responsibilities
of designated sectors (initially banks, telecommunications,
and digital platform service providers) to prevent, detect,
report, disrupt and respond to scams in Australia. We are
considering the potential impacts of the SPF if adopted
as drafted, including on our policies, procedures, systems
and controls.
New climate reporting standards
New mandatory climate-related reporting standards have
been finalised by the Australian Accounting Standards
Board and legislation requiring compliance has been
passed by the Australian Parliament. Westpac will report
against these new requirements from its financial year
ending 30 September 2026.
As of 4 April 2024, new SEC rules in relation to
the disclosure of climate-related information that were
expected to apply to Westpac from FY26 have been
stayed pending the outcome of a lawsuit challenging
the rules in the United States Court of Appeals for the
Eighth Circuit.
APRA capital requirements
Operational risk capital overlays
In 2019 APRA applied $1 billion of additional capital
overlays to our operational risk capital requirement.
These overlays were applied through an increase in risk
weighted assets (RWA).
On 19 July 2024, APRA announced its decision to reduce
Westpac’s total operational risk capital overlay from
$1 billion to $500 million.
The impact of the $500 million overlay reduction on
our Level 2 common equity Tier 1 (CET1) capital ratio at
30 September 2024 was an increase of 18 basis points.
APRA Discussion Paper on Replacement of Additional
Tier 1 Capital
On 10 September 2024, APRA released a discussion paper
titled “A more effective capital framework for a crisis”
(APRA Discussion Paper) outlining potential amendments
to APRA’s prudential framework and seeking feedback
on a proposal for banks to phase out Additional Tier 1
(AT1) capital and replace it with greater amounts of Tier
2 capital and CET1 capital. The APRA Discussion Paper
follows APRA’s September 2023 discussion paper relating
to improving the effectiveness of AT1 capital instruments.
APRA’s proposed approach (applicable to large,
internationally active banks such as Westpac) would
replace the existing 1.5% AT1 capital with 0.25% CET1
and 1.25% Tier 2 capital, which would see the total
minimum CET1 requirement (including regulatory buffers)
increase from 10.25% to 10.50%. This includes increasing
the minimum CET1 requirement from 4.5% to 6.0% but
offsetting this increase by removing the Advanced portion
of the capital conservation buffer (CCB) of 1.25% in
order to maintain a minimum Tier 1 capital ratio of
6.0% and a minimum 2.5% CCB in line with the Basel
minimum standards.
The proposed changes, if implemented as set out in the
APRA Discussion Paper, would commence from 1 January
2027. In addition, from this date existing AT1 instruments
would be eligible to be included as Tier 2 capital, until
their first scheduled call date. All existing AT1 instruments
(issued by any Australian bank) would reach their first
scheduled call date by 2032 at the latest.
APRA is seeking feedback on the APRA Discussion Paper
by 8 November 2024 and intends to provide an update on
the consultation process in late 2024 and formally consult
on any proposed amendments to APRA’s prudential
framework in 2025.
Westpac
significant developments – New Zealand
RBNZ review of overseas bank branches
On 21 August 2024 the RBNZ released the proposed
Branch Standard under the Deposit Takers Act 2023
which will implement decisions made as part of the
review of its policy for branches of overseas banks. The
proposed Branch Standard will require that overseas bank
branches only conduct business with wholesale clients;
the total size of an overseas bank’s branch cannot exceed
NZ$15 billion in total assets; and dual-operating branches
(such as Westpac’s New Zealand Branch) only conduct
business with “large” corporate and institutional clients. It
is proposed that “large” means those with consolidated
annual turnover of over NZ$50 million, total assets of over
NZ$75 million or total assets under management of over
NZ$1 billion (for funds management entities only). The
implementation date is expected to be in July 2028.
Westpac’s New Zealand Branch currently provides
financial markets, trade finance and international payment
products and services to customers referred by WNZL.
We expect the RBNZ’s Branch Standard will require
changes to the activities Westpac’s New Zealand Branch
undertakes, and as a result, WNZL may also make changes
to the scope of the activities it undertakes.
General regulatory changes
affecting our businesses
Cyber security
Regulators have continued their focus on cyber
security due to high profile cyber-related incidents.
APRA is seeking to ensure that regulated entities
improve their cyber security practices, focusing on
the effective implementation of ongoing compliance
with Prudential Standard CPS 234 Information Security.
APRA has been actively communicating with entities to
98WESTPAC 2024 ANNUAL REPORT
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emphasise the importance of cyber resilience, including
releasing two letters in June and August 2024 to
regulated entities highlighting expectations about the
effective implementation of cyber controls including
data backups, security in configuration management,
privileged access management, and security testing.
Similarly, ASIC is emphasising improved cybersecurity
at the companies it regulates and has indicated a
focus on improving cyber resilience through proposed
testing strategies. The Australian Signals Directorate and
the Australian Cyber Security Centre are increasingly
providing threat intelligence and tailored guidance to
help organisations enhance their information security
measures. We will continue to engage with regulators
and the government more broadly regarding cyber-related
regulation, legislation and policy.
We continue to work on enhancing our systems and
processes to mitigate cyber security risks, including those
related to third parties, and to respond to changes in
regulation. Details about operational risks and information
security risks, including cyberattacks, are set out in the
2024 Risk Factors.
Artificial Intelligence
On 5 September 2024 the Australian
Government published:
•a voluntary AI Safety Standard, implementing
risk- based guardrails for how Australian organisations
should safely and responsibly use AI; and
•a consultation for introducing mandatory guardrails on
how to use AI safely and responsibly when developing
and deploying AI in Australia in high-risk settings
(consultation submissions closed 4 October 2024).
We continue to work on enhancing our systems and
processes to mitigate risks that may be amplified by
AI and collaborating with industry and government to
shape development of AI regulation, including by making
a submission as part of the consultation. Details about
operational risks and information security risks, including
AI, are set out in the 2024 Risk Factors. Details about
how we are leveraging the power of AI are outlined in the
Technology section (page 38).
Reforms to the Privacy Act
On 12 September 2024, the Federal Attorney-General
introduced into Parliament the Privacy and Other
Legislation Amendment Bill 2024 (Cth) which implements
the first tranche of agreed recommendations from the
Australian Government’s Privacy Act Review.
Key changes introduced by the first tranche include
the following:
•a new statutory tort for serious invasions of privacy;
•greater transparency for individuals regarding the use
of their personal information in automated decisions
that impact them;
•new criminal offences for the malicious release of
personal data (known as doxxing); and
•enhanced enforcement powers and new civil penalties
which can be tailored according to the seriousness of a
privacy breach.
A number of proposed reforms from the Privacy Act
Review have been deferred, with the expectation that a
draft Tranche 2 will be developed for consultation at a
later stage.
Revised Banking Code of Practice
On
27 June 2024, ASIC approved a new version of
the Australian Banking Association’s Banking Code of
Practice (the Code) with an implementation date of
28 February 2025 for each bank that has adopted the
Code (including Westpac).
The strengthened Code reflects the consultations both the
ABA and ASIC conducted with stakeholders, consumer
representatives and the BCCC, and includes uplifts to
existing provisions and additional protections for small
business customers, guarantors, vulnerable customers
and customers requiring additional support. These
updates include:
•an expanded small business definition that increases
the borrowing limit from $3 million to $5 million which
is anticipated to provide up to 10,000 more small
businesses with access to the Code protections;
•a new obligation to ensure that a meeting is held with
a guarantor in the absence of the borrower before
signing a guarantee;
•an updated vulnerability definition that expands the
categories of vulnerability and recognises that a
customer can become vulnerable at any time;
•updated provisions for managing deceased
estates; and
•an uplift of the inclusivity and accessibility provisions
to expressly include LGBTQIA+ persons and a new
commitment to organise or refer customers to free
support services.
Legal proceedings
Our entities are parties to legal proceedings from time
to time arising from the conduct of our business. Certain
litigation (including regulatory proceedings) and class
actions are described as required in Note 25 to the
financial statements (page 238).
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PERFORMANCE
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GROUP PERFORMANCE
Performance summary
Key financial information
Impact of Notable Items
Review of earnings
Credit quality
Balance sheet and funding
Capital and dividends
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100WESTPAC 2024 ANNUAL REPORT
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Disclosure regarding forward-looking statements
This 2024 Annual Report contains statements that constitute ‘forward-looking statements’ within the meaning of Section
21E of the US Securities Exchange Act of 1934.
Forward-looking statements are statements that are not historical facts. Forward-looking statements appear in a number
of places in this 2024 Annual Report and include statements regarding our current intent, belief or expectations with
respect to our business and operations, macro and micro economic and market conditions, results of operations
and financial condition and performance, capital adequacy and liquidity and risk management, including, without
limitation, future loan loss provisions and financial support to certain borrowers, forecasted economic indicators and
performance metric outcomes, indicative drivers, climate- and other sustainability-related statements, commitments,
targets, projections and metrics, and other estimated and proxy data.
Words such as ‘will’, ‘may’, ‘expect’, ‘intend’, ‘seek’, ‘would’, ‘should’, ‘could’, ‘continue’, ‘plan’, ‘estimate’, ‘anticipate’,
‘believe’, ‘probability’, ‘indicative’, ‘risk’, ‘aim’, ‘outlook’, ‘forecast’, ‘assumption’, ‘projection’, ‘target’, ‘goal’, ‘guidance’,
‘objective’, ‘ambition’ or other similar words, are used to identify forward-looking statements. These statements reflect
our current views on future events and are subject to change, certain known and unknown risks, uncertainties and
assumptions and other factors which are, in many instances, beyond our control (and the control of our officers,
employees, agents, and advisors), and have been made based on management’s current expectations or beliefs
concerning future developments and their potential effect upon Westpac.
Forward-looking statements may also be made, verbally or in writing, by members of Westpac’s management or
Board in connection with this 2024 Annual Report. Such statements are subject to the same limitations, uncertainties,
assumptions and disclaimers set out in this document.
There can be no assurance that future developments or performance will align with our expectations or that the effect of
future developments on us will be those anticipated. Actual results could differ materially from those we expect or which
are expressed or implied in forward-looking statements, depending on various factors including, but not limited to:
•information security breaches, including cyber attack events
•the effect of, and changes in, laws, regulations, regulatory policy, taxation or accounting standards or practices, and
government and central bank monetary policies, including changes to liquidity, leverage and capital requirements
•regulatory investigations, reviews (including industry reviews) and other actions, inquiries, litigation, fines, penalties,
restrictions or other regulator-imposed conditions, including from our actual or alleged failure to comply with laws,
regulations or regulatory policy
•the effectiveness of our risk management practices, including our framework, policies, processes, systems
and employees
•the reliability and security of Westpac’s technology and risks associated with changes to technology systems
•geopolitical events or other changes in countries in which Westpac or its customers or counterparties operate
•climate-related risks (including physical, transition and liability risks) that may arise from changing climate patterns,
and risks associated with the transition to a lower carbon economy (including Westpac’s ambition to become a
net-zero, climate resilient bank) or risks from legal and regulatory action, or risks from other sustainability factors
such as human rights and natural capital
•the failure to comply with financial crime obligations (including anti-money laundering and counter-terrorism
financing laws, anti-bribery and corruption laws, sanctions laws and tax transparency laws), which has had, and could
further have, adverse effects on our business and reputation
•internal and external events which may adversely impact our reputation
•litigation and other legal proceedings and regulator investigations and enforcement actions (including the liability of
Westpac to pay significant monetary settlements and legal costs in order to resolve a dispute)
•market volatility and disruptions, including uncertain conditions in funding, equity and asset markets and any losses
or business impacts we or our customers or counterparties may experience
•the incidence of inadequate capital levels
•changes in economic conditions, consumer or business spending, saving and borrowing habits in Australia, New
Zealand and other countries in which we or our customers or counterparties operate and our ability to maintain or to
increase market share, margins and fees, and control expenses
•adverse asset, credit or capital market conditions or an increase in defaults, impairments and provisioning because of
a deterioration in economic conditions
•sovereign risks, including the risk that governments will default on their debt obligations, fail to perform contractual
obligations, or be unable to refinance their debts
•changes to Westpac’s credit ratings or the methodology used by credit rating agencies
•the effects of market competition and competition regulatory policy impacting the areas in which we operate
•operational risks resulting from ineffective processes and controls
•levels of inflation, changes to interest rates, exchange rates and market and monetary fluctuations and volatility
•poor data quality, data availability or data retention
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Disclosure regarding forward-looking statements (Continued)
•strategic decisions including diversification, innovation, retention, divestment, acquisitions, expansion activity,
integration and decisions to shut down some operations
•failure to recruit and retain key executives, employees and Directors
•changes to our critical accounting assumptions and estimates and changes to the value of our intangible assets; and
•various other factors including those beyond Westpac’s control.
The above list is not exhaustive. For certain other factors that may impact on forward-looking statements made by
Westpac, refer to Risk Management (page 40) and the 2024 Risk Factors. When relying on forward-looking statements
to make decisions with respect to Westpac, investors and others relying on information in this 2024 Annual Report
should carefully consider the foregoing factors and other uncertainties and events.
Except as required by law, we assume no obligation to revise or update any forward-looking statements in this 2024
Annual Report, whether from new information, future events, conditions, or otherwise, after the date of this 2024
Annual Report.
Further important information regarding climate change and sustainability-related statements
This 2024 Annual Report contains forward-looking statements and other representations relating to ESG topics,
including but not limited to climate change, net zero, climate resilience, natural capital, emissions intensity, human
rights and other sustainability-related statements, commitments, targets, projections, scenarios, risk and opportunity
assessments, pathways, forecasts, estimated projections and other proxy data.
These are subject to known and unknown risks, and there are significant uncertainties, limitations, risks and assumptions
in the metrics and modelling on which these statements rely.
In particular, the metrics, methodologies and data relating to climate and sustainability are rapidly evolving and
maturing, including variations in approaches and common standards in estimating and calculating emissions, and
uncertainty around future climate- and sustainability-related policy and legislation. There are inherent limits in the
current scientific understanding of climate change and its impacts. Some material contained in this 2024 Annual Report
may include information including, without limitation, methodologies, modelling, scenarios, reports, benchmarks, tools
and data, derived from publicly available or government or industry sources that have not been independently verified.
No representation or warranty is made as to the accuracy, completeness or reliability of such information. There is a risk
that the estimates, judgements, assumptions, views, models, scenarios or projections used by Westpac may turn out to
be incorrect. These risks may cause actual outcomes, including the ability to meet commitments and targets, to differ
materially from those expressed or implied in this 2024 Annual Report and the 2024 Risk Factors. The climate- and
sustainability-related forward-looking statements made in this 2024 Annual Report and the 2024 Risk Factors are not
guarantees or predictions of future performance and Westpac gives no representation, warranty or assurance (including
as to the quality, accuracy or completeness of these statements), nor guarantee that the occurrence of the events
expressed or implied in any forward-looking statement will occur. There are usually differences between forecast and
actual results because events and actual circumstances frequently do not occur as forecast and these differences may be
material. Westpac will continue to review and develop its approach to ESG as this subject area matures.
Currency of presentation, exchange rates and certain
definitions
In this Annual Report, ‘financial statements’ means our audited consolidated balance sheets as at 30 September 2024
and 30 September 2023 and income statements, statements of comprehensive income, changes in equity and cash flows
for each of the years ended 30 September 2024, 2023 and 2022 together with accompanying notes which are included
in this Annual Report.
Our financial year ends on 30 September. As used throughout this Annual Report, the financial year ended
30 September 2024 is referred to as 2024 and other financial years are referred to in a corresponding manner.
All dollar values in this report are in Australian dollars unless otherwise noted or the context otherwise requires,
references to ‘dollars’, ‘dollar amounts’, ‘$’, ‘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 and references
to 'GBP' are to British Pound Sterling. Refer to Exchange rates (page 290) for information regarding the rates of
exchange between the Australian dollar and the US dollar applied by Westpac as part of its operating activities for
2024, 2023 and 2022.
Any discrepancies between totals and sums of components in tables contained in this Annual Report are due to
rounding. Percentage (%) movements are shown as % unless otherwise stated to all the tables in this document and
represent the percentage change between 2024 and 2023.
Information on terms, acronyms and calculations used in this report are provided in the Glossary of Abbreviations and
Defined Terms (pages 298-302).
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Selected consolidated financial and operating data
We have derived the following selected financial information, as of, and for the financial years ended,
30 September 2024, 2023 and 2022 from our consolidated financial statements and related notes, except for certain
data such as market share information, and other regulatory information which are derived from filings with our
regulators and are unaudited.
This information should be read together with our audited consolidated financial statements and the accompanying
notes included elsewhere in this Annual Report.
Only the Financial Statements are audited
PricewaterhouseCoopers has audited the
financial statements, accompanying notes and the Consolidated Entity
Disclosure Statement contained within the Financial Statements (pages 143- 279 ) of this Annual Report and has
issued an unmodified audit report. All other sections of the Annual Report have not been subject to audit by
PricewaterhouseCoopers. The
financial information contained in this Annual Report includes information extracted from
the audited financial statements together with information that has not been audited.
Presentation changes
In 2024, we have made changes to both the composition of our segments and the measurement of segment
performance. Comparatives have been restated to align to the current period presentation. Refer to Segment Reporting
(pages 130-141) for further details.
Certain comparative information has also been revised where appropriate to conform to changes in presentation in the
current period to enhance comparability.
Non-AAS
financial measures
Westpac’s statutory results are prepared in accordance with AAS and are also compliant with IFRS.
In assessing Westpac’s performance and that of our operating segments we use a number of financial measures,
including amounts, measures and ratios that are presented on a non-AAS basis, as described below.
Non-AAS financial measures and ratios do not have standardised meanings under AAS. As such they are unlikely to be
directly comparable to similar measures presented by other companies and should not be viewed in isolation from, or as
a substitute for, the AAS results.
Our non-AAS measures fall within the following categories:
MEASURE/RATIO
DESCRIPTIONFURTHER
INFORMATION
Performance
measures
excluding the
impact of
Notable Items,
businesses
sold
The net interest income, non-interest income, operating expenses and
segment reporting sections of this report include performance measures
that exclude Notable Items, businesses sold and/or held-for-sale.
Notable Items are items that management believes are not reflective of
Westpac’s ongoing business performance. Details of Notable Items are
included in Impact of Notable Items (page 106).
Businesses sold reflect the contribution to Westpac’s results in the period
sold prior to their sale. It also includes any gains/ losses related to their
sale but excludes items that have been identified as Notable Items.
Performance measures which are adjusted for one or more of these
items include:
•Net interest income
•Non-interest income (including net fee income, net wealth
management and insurance income, trading income and other income)
•Operating expenses (including staff expenses, occupancy expenses,
technology expenses and other expenses)
•Pre-provision profit
•Net profit
•Net profit attributable to owners of WBC
•Return on average ordinary equity
•Return on tangible ordinary equity
Management considers this information useful as these measures provide a
view that reflects Westpac’s ongoing business performance.
See pages
6-7, 8-9,
12-13, 16-19, 68-93,
104-129, 130-141,
and 293-294.
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
103
Non-AAS financial measures (Continued)
MEASURE/RATIODESCRIPTIONFURTHER
INFORMATION
Pre-provision
profit
Pre-provision profit is net profit/(loss) excluding credit impairment
(charges)/benefits and income tax (expense)/benefit.
This is calculated as net interest income plus non-interest income less
operating expenses. This includes (charges)/benefits relating to provisions
and impairment other than from expected credit losses.
Management considers this information useful as this measure provides
readers with a view of the impact of the operating performance
of Westpac.
See pages 16-19,
104-129, 130-141,
and 293-294.
Basic earnings
per share
(excluding
Notable Items)
and Diluted
earnings per
share
(excluding
Notable Items)
Basic earnings per share (excluding Notable Items) is calculated as
net profit attributable to owners of WBC (adjusted for RSP dividends)
excluding Notable items divided by the weighted average number of
ordinary shares on issue during the period, adjusted for treasury shares.
Diluted earnings per share is calculated by adjusting the basic earnings per
share (excluding Notable Items) by assuming all dilutive potential ordinary
shares are converted.
Management considers this information useful as these measures provide
a view of the basic and diluted earnings per share based on the ongoing
operating performance of Westpac.
See pages 105
and 293-294
Core net
interest
income and
core net
interest margin
(NIM)
Core net interest income is calculated as net interest income excluding
Notable Items, and Treasury and Markets income.
Core NIM is calculated as core net interest income (annualised where
applicable) divided by average interest earning assets.
Management considers this information useful as these measures provide a
view of the underlying performance of Westpac’s net interest income and
margin, for lending, deposit and wholesale funding.
See pages 16-19,
105 and 108.
Dividend
payout ratio
(excluding
Notable Items)
Calculated as ordinary dividend paid/declared on issued shares
(net of Treasury shares) divided by the net profit attributable to owners
of WBC excluding Notable Items.
Management considers this information useful as it provides a view of
the dividend payout ratio based on the ongoing operating performance
of Westpac.
See pages 105
and 293-294.
Expense to
income ratio
(excluding
Notable Items)
Calculated as operating expenses excluding Notable Items divided by net
operating income excluding Notable Items.
Management considers this information useful as this measure provides a
view of the efficiency of the ongoing operating performance of Westpac.
See pages 16-19,
105, 116-117
and 293-294.
Average
tangible
ordinary
equity and
Return on
average
tangible
ordinary
equity (ROTE)
Average tangible ordinary equity is calculated as average ordinary
equity less average goodwill and other intangible assets (excluding
capitalised software).
Return on average tangible ordinary equity is calculated as net profit
attributable to owners of WBC adjusted for RSP dividends (annualised
where applicable) divided by average tangible ordinary equity.
Management considers this information useful as these measures are
commonly used as a performance measure by WBC, investors, analysts
and others in assessing Westpac's application of equity.
See pages 6-7,
12-13, 16-19, 105
and 293-294.
References to websites
Information contained in or accessible through the websites mentioned in this Annual Report does not form part of this
Annual Report unless we specifically state that it is incorporated by reference and forms part of this Annual Report.
104WESTPAC 2024 ANNUAL REPORT
GROUP PERFORMANCE
Performance summary
$m202420232022
% Mov't
2024 - 2023
Net interest income18,75318,31717,1612
Non-interest income2,8353,3282,445(15)
Net operating income21,58821,64519,606-
Operating expenses(10,944)(10,692)(10,802)2
Pre-provision profit10,64410,9538,804(3)
Impairment (charges)/benefits(537)(648)(335)(17)
Profit before income tax expense10,10710,3058,469(2)
Income tax expense(3,117)(3,104)(2,770)-
Profit after income tax expense6,9907,2015,699(3)
Profit attributable to non-controlling interests (NCI)-(6)(5)(100)
Net profit attributable to owners of WBC6,9907,1955,694(3)
Notable Items(123)(173)(874)(29)
Effective tax rate30.84%30.12%32.71%72 bps
Performance Summary excluding Notable Items
$m202420232022
% Mov't
2024 - 2023
Net interest income18,91618,41416,6063
Non-interest income2,8473,1283,299(9)
Net operating income21,76321,54219,9051
Operating expenses(10,944)(10,232)(10,181)7
Pre-provision profit10,81911,3109,724(4)
Impairment (charges)/benefits(537)(648)(335)(17)
Profit before income tax expense10,28210,6629,389(4)
Income tax expense(3,169)(3,288)(2,816)(4)
Profit after income tax expense7,1137,3746,573(4)
Profit attributable to non-controlling interests (NCI)-(6)(5)(100)
Net profit attributable to owners of WBC7,1137,3686,568(3)
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
105
Key financial information
202420232022
% Mov't
2024 - 2023
Shareholder value
Basic earnings per ordinary share (cents)200.9205.3159.9(2)
Basic earnings per ordinary share (ex Notable Items) (cents)204.4210.3184.5(3)
Diluted earnings per ordinary share (cents)191.7195.2152.4(2)
Diluted earnings per ordinary share (ex Notable Items) (cents)194.8199.6174.9(2)
Weighted average ordinary shares (millions)3,4763,5023,559(1)
Fully franked ordinary dividends per share (cents)1511421256
Fully franked special dividend per share (cents)15---
Dividend payout ratio
a
74.62%69.20%76.79%large
Dividend payout ratio (ex Notable Items)
a
73.32%67.57%66.57%large
Return on average ordinary equity9.77%10.09%8.10%(32 bps)
Return on average ordinary equity (ex Notable Items)9.94%10.34%9.34%(40 bps)
Return on average tangible equity (ROTE)
b
11.01%11.39%9.17%(38 bps)
ROTE (ex Notable Items)11.21%11.67%10.58%(46 bps)
Average ordinary equity ($m)71,49371,22970,268-
Average tangible ordinary equity ($m)63,41563,11762,078-
Average total equity ($m)71,54971,27470,323-
Net tangible asset per ordinary share ($)17.7517.5817.181
Business performance
Group NIM1.93%1.95%1.94%(2 bps)
Core NIM
b
1.82%1.86%1.76%(4 bps)
Treasury & markets impact on NIM
b
0.13%0.10%0.12%3 bps
Notable Items impact on NIM(0.02%)(0.01%)0.06%(1 bps)
Average interest-earning assets ($m)
c
970,055940,449886,2053
Return on average assets0.66%0.70%0.58%(4 bps)
Expense to income ratio50.69%49.40%55.10%129 bps
Expense to income ratio (ex Notable Items)50.29%47.50%51.15%279 bps
Full time equivalent employees (FTE)35,24036,14637,476(3)
Revenue per FTE ($'000's)6125775086
Capital, funding and liquidity
Level 2 common equity Tier 1 capital ratio:
- Australian Prudential Regulation Authority (APRA)12.49%12.38%11.29%11 bps
- Internationally comparable18.27%18.73%17.57%(46 bps)
Credit RWA ($m)345,964339,758362,0982
Total risk weighted assets (RWA) ($m)437,430451,418477,620(3)
Liquidity coverage ratio (LCR)133%134%132%(59 bps)
Net stable funding ratio (NSFR)112%115%121%(261 bps)
Deposit to loan ratio83.50%82.89%82.85%61 bps
Credit quality and impairment charges
Gross impaired exposures to gross loans0.24%0.17%0.20%7 bps
Gross impaired exposures provisions to gross impaired exposures41.28%43.47%47.95%(219 bps)
Collectively assessed provisions to credit RWA132 bps135 bps116 bps(3 bps)
Total provisions to credit RWA147 bps145 bps128 bps2 bps
Total committed exposure (TCE) ($bn)1,2521,2181,1863
Total stressed exposures as a % of TCE1.45%1.26%1.07%19 bps
Total provision to gross loans63 bps63 bps62 bps-
Mortgages 90+ day delinquencies1.05%0.81%0.69%24 bps
Other consumer loans 90+ day delinquencies1.40%1.28%1.56%12 bps
Impairment charges/(benefits) to average loans7 bps9 bps5 bps(2 bps)
Balance sheet ($m)
Loans806,767773,254739,6474
Total assets1,077,5441,029,7741,014,1985
Customer deposits673,615640,951612,8345
a.Excludes the impact of special dividends and the dividend component of the off-market share buyback in 2022.
b.Comparatives have been revised to align with current period presentation.
c.Net of average mortgage offset balances.
106WESTPAC 2024 ANNUAL REPORT
GROUP PERFORMANCE
Impact of Notable Items
To assist in explaining our financial performance, we report Notable Items, which represent certain items that are not
considered to be reflective of Westpac's ongoing business performance.
Notable Items broadly fall into the following categories:
•Unrealised fair value gains/(losses) on economic hedges that do not qualify for hedge accounting
•Net ineffectiveness on qualifying hedges
•Large items that are not reflective of Westpac's ordinary operations. In individual reporting periods large items
may include:
–Provisions for remediation, litigation, fines and penalties
–The impact of asset sales and revaluations
–The write-down of assets (including goodwill and capitalised software)
–Restructuring costs
In determining dividends, the impact of Notable Items is typically excluded.
Notable Items reduced net profit after tax in 2024 by $123 million (2023: $173 million, 2022: $874 million).
Details of Notable Items (post tax) impacting on 2024 and 2023 results are presented below:
CategoryNet profit impactDetail
2024
Unrealised fair value gains/
(losses) on economic hedges
that do not qualify for
hedge accounting
$128 million
reduction
The unrealised fair value loss on hedges of accrual accounted term funding transactions for
the year was $128 million. This represents a timing difference for the statutory results but
does not affect profits over the life of the hedge.
Net ineffectiveness on
qualifying hedges
$5 million
benefit
The net ineffectiveness on qualifying hedges of $5 million for the period arises from the fair
value movement in these hedges which reverses over time and therefore does not affect
profits over time.
Total Notable Items$123 million
reduction
2023
The impact of asset sales
and revaluations
$256 million
benefit
Gain on the sale of Advance Asset Management Limited of $243 million. This also includes a
tax refund related to transaction and separation costs.
Provision for remediation,
litigation, fines and penalties
$176 million
reduction
Net operating income - $103 million
•Decrease in revenue due to additional repayments to institutional, business and
superannuation customers.
Expenses - $132 million
•An increase in provisions for costs associated with customer remediation programs,
regulatory investigations and litigation of $90 million.
•Estimated costs for the one-off levy for the Commonwealth’s Compensation Scheme of
Last Resort of $42 million.
Restructuring costs$140 million
reduction
Costs associated with accelerating organisation simplification and the discontinuance of
specialist businesses.
The write-down of assets$87 million
reduction
The write-down of property assets and costs related to the reduction in corporate office
space and accelerated consolidation of branches.
Unrealised fair value gains/
(losses) on economic hedges
that do not qualify for
hedge accounting
$92 million
reduction
The unrealised fair value loss on hedges of accrual accounted term funding transactions for
the year was $92 million. This represents a timing difference for the statutory results but does
not affect profits over the life of the hedge.
Net ineffectiveness on
qualifying hedges
$66 million
benefit
The net ineffectiveness on qualifying hedges of $66 million for the period arises from the
fair value movement in these hedges which reverses over time and therefore does not affect
profits over time.
Total Notable Items$173 million
reduction
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
107
Impact of Notable Items (Continued)
A summary of 2024, 2023 and 2022 Notable Items is presented below:
$m
Economic
hedges
Hedge
ineffectiveness
Provisions for
remediation,
litigation,
fines and
penalties
Asset sales
and
revaluations
The write-
down of
assets
Restructuring
costsTotal
2024
Net interest income(171)8----(163)
Non-interest income(12)-----(12)
Net operating income(183)8----(175)
Operating expenses-------
Pre-provision profit(183)8----(175)
Income tax (expense)/benefit and NCI55(3)----52
Net profit/(loss)(128)5----(123)
2023
Net interest income(113)94(78)---(97)
Non-interest income(18)-(25)243--200
Net operating income(131)94(103)243--103
Operating expenses--(132)-(126)(202)(460)
Pre-provision profit(131)94(235)243(126)(202)(357)
Income tax (expense)/benefit and NCI39(28)59133962184
Net profit/(loss)(92)66(176)256(87)(140)(173)
2022
Net interest income633(77)(1)---555
Non-interest income39-(52)(841)--(854)
Net operating income672(77)(53)(841)--(299)
Operating expenses--(126)(144)(351)-(621)
Pre-provision profit672(77)(179)(985)(351)-(920)
Income tax (expense)/benefit and NCI(202)254610968-46
Net profit/(loss)470(52)(133)(876)(283)-(874)
108WESTPAC 2024 ANNUAL REPORT
GROUP PERFORMANCE
Review of earnings
Pages 108 to 129 provides a comparative discussion of Westpac’s performance for the financial year ended
30 September 2024 compared to 2023, unless otherwise specified. Factors that relate primarily to a single business
segment are discussed in more detail in Segment Reporting (pages 130-141).
Net interest income
202420232022
% Mov't
2024 - 2023
Net interest Income ($m)
Net interest income18,75318,31717,1612
Core net interest income
a
17,60817,51915,5321
Notable Items(163)(97)55568
Treasury
a,b
1,05672995145
Markets
a
25216612352
Average interest earning assets ($m)
c
Loans732,660703,832676,4694
Housing
a,d
500,338484,214469,4923
Personal11,75413,05515,043(10)
Business220,568206,563191,9347
Liquid assets206,266210,960191,749(2)
Other interest-earning assets31,12925,65717,98721
Average interest earning assets970,055940,449886,2053
NIM (%)
NIM1.93%1.95%1.94%(2 bps)
Core NIM
a
1.82%1.86%1.76%(4 bps)
Treasury & Markets impact on NIM
a
0.13%0.10%0.12%3 bps
Notable Items impact on NIM(0.02%)(0.01%)0.06%(1 bps)
a.Comparatives have been revised to align with current period presentation.
b.Treasury net interest income excludes capital benefit.
c.Includes assets held for sale.
d.Net of average mortgage offset balances.
Net interest income increased 2% to $18,753 million. Key drivers included:
•Higher core net interest income, up 1% to $17,608 million, due to balance sheet growth which was partly offset by
lower net interest margin;
•Notable Items reduced income by $163 million compared to a reduction of $97 million in the prior year; and
•Treasury and Markets income, up 46% to $1,308 million due to stronger performance by Treasury which was well
positioned for interest rate volatility.
Average interest-earning assets increased by 3% to $970.1 billion, including growth of 7% in business and 3% in
housing loans respectively. This was partially offset by the reduction in Personal loans which included auto finance
loan runoff. Average liquid assets declined by 2% while other interest-earning assets increased by 21% due to increased
holdings of trading securities, mainly relating to holdings of reverse repurchase agreements in Markets to facilitate
client transactions.
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
109
Review of earnings (Continued)
Net interest margin
T&M
2
(1bps)
0.09
0.11
1.82
2024Notable Items
1.86
2023
(10bps)
(1bp)
Deposits
2bps
LoansLiquid AssetsWSF
1
3bps
1.95
1.93
(2bps)
7bps
Capital & Other
NIM down 2bps
Net interest margin movement (%)
Full Year 2023 – Full Year 2024
Core NIM down 4bps
1. Wholesale Funding Cost.
2. Treasury & Markets contribution.
Notable Items, Treasury & Markets
Core NIM
•The NIM decreased by 2 basis points to 1.93%. NIM comprised:
–Core NIM of 1.82%, down 4 basis points with key drivers described below;
–Treasury and Markets added 13 basis points, up 3 basis points due to a higher Treasury contribution from
favourable positioning for interest rate volatility; and
–Notable Items from unrealised fair value losses for accounting purposes related to economic hedges of term
funding detracted 2 basis points, having detracted 1 basis point in the prior year.
•The 4 basis points decrease in Core NIM comprised the following movements:
–Loan interest spread: 10 basis point decrease mainly from tighter spreads on mortgage lending in Australia due
to competition for new and existing customers. Spreads on credit cards and business loans also contributed to
margin decline. The contraction slowed through the period, with loan interest spreads down 1 basis point in the
Second Half 2024;
–Wholesale funding: 2 basis point decrease as spreads on new term wholesale funding were higher than maturing
facilities, which included the Term Funding Facility (TFF);
–Deposit interest spread: 1 basis point decrease included the impacts of a mix shift towards lower spread savings
and term deposit accounts. Earnings on hedged deposits were higher;
–Liquid Assets: 2 basis point increase from a reduction in liquid asset balances; and
–Capital and Other: 7 basis point increase primarily from higher earnings on capital balances as a result of higher
interest rates.
110WESTPAC 2024 ANNUAL REPORT
GROUP PERFORMANCE
Review of earnings (Continued)
Average Balance Sheet
202420232022
Average
balance
Interest
income
Average
rate
Average
balance
Interest
income
Average
rate
Average
balance
Interest
income
Average
rate
$m$m%$m$m%$m$m%
Assets
Interest earning assets
Loans
a
732,66044,4606.1703,83235,5825.1676,05421,0963.1
Housing
a
500,33828,5605.7484,21422,3604.6469,49213,6662.9
Personal11,7541,1379.713,0551,1048.515,0431,2008.0
Business
a
220,56814,7636.7206,56312,1185.9191,5196,2303.3
Trading securities and financial
assets measured at FVIS36,3501,6004.430,0861,1433.822,8363471.5
Investment securities93,9253,4943.774,8772,0372.777,7811,1261.4
Other interest earning assets
b
107,1204,7934.5131,6544,9903.8109,1096760.6
Assets held for sale------42561.4
Total interest earning assets and
interest income
a
970,05554,3475.6940,44943,7524.7886,20523,2512.6
Non-interest earning assets
Derivative financial instruments16,78623,42323,395
Assets held for sale--2,444
All other assets
a,c
70,46859,35662,719
Total non-interest earning assets
a
87,25482,77988,558
Total assets1,057,3091,023,228974,763
Liabilities
Interest bearing liabilities
Deposits and other borrowings
d
574,11923,6574.1544,04116,9183.1508,9503,2090.6
Certificates of deposit48,8892,3864.947,8871,9214.047,3083950.8
Transactions131,8944,5293.4139,2753,4122.4141,6437090.5
Savings208,8667,6673.7185,2115,1822.8181,9187910.4
Term184,4709,0754.9171,6686,4033.7138,0811,3141.0
Repurchase agreements26,5519373.539,6525561.437,7791500.4
Loan capital40,2121,8484.634,3841,4484.230,7081,0263.3
Other interest bearing liabilities
e
185,8099,1524.9176,6996,5133.7158,2511,7051.1
Total interest bearing liabilities
and interest expense
d
826,69135,5944.3794,77625,4353.2735,6886,0900.8
Non-interest bearing liabilities
Deposits and other borrowings
d
131,632131,043136,251
Derivative financial instruments21,41326,35324,750
Liabilities held for sale--682
All other liabilities6,024(218)7,069
Total non-interest
bearing liabilities
d
159,069157,178168,752
Total liabilities985,760951,954904,440
Shareholders' equity71,49371,22970,268
Non-controlling interests564555
Total equity71,54971,27470,323
Total liabilities and equity1,057,3091,023,228974,763
Loans
a
Australia633,77237,8656.0607,15430,1645.0582,45617,6943.0
New Zealand92,2226,1556.790,1305,0285.687,2363,2033.7
Other overseas6,6664406.66,5483906.06,3621993.1
Deposits and other borrowings
d
Australia489,69319,4134.0460,14913,5442.9427,0972,2490.5
New Zealand65,0703,2204.963,7602,4643.960,6787651.3
Other overseas19,3561,0245.320,1329104.521,1751950.9
a.Certain portions of loans are non-interest bearing and are presented below in All other assets. The non-interest bearing portion represents
the impact of mortgage offset deposits which are taken into consideration when calculating interest charged on loans. In 2024, offset
loans within New Zealand were reclassified and presented within All other assets. Comparatives have been revised to align with current
period presentation.
b.Interest income includes net ineffectiveness on qualifying hedges.
c.Includes property and equipment, intangible assets, deferred tax assets, non-interest earning loans relating to mortgage offset accounts and
all other non-interest earning assets. Mortgage offset balances were $54,980 million (2023: $48,022 million, 2022: $45,996 million).
d.In 2024, certain deposit products were reclassified between Savings and Transactions to align with how they are marketed to customers. The
Group has also revised the attribution of certain deposit products between interest bearing and non-interest bearing. Comparatives have been
revised to align with current period presentation.
e.Interest expense includes the net impact of Treasury balance sheet management activities and the bank levy.
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
111
Review of earnings (Continued)
Loans
$m202420232022
% Mov't
2024 - 2023
Australia704,907674,422647,1225
Housing473,435449,509431,5385
RAMS (in runoff)29,83635,96535,844(17)
Personal9,4039,6389,722(2)
Business194,138178,965166,4028
Auto finance (in runoff)
a
2,1164,1957,344(50)
Provisions(4,021)(3,850)(3,728)4
New Zealand (A$)94,13792,85485,7721
New Zealand (NZ$)102,46399,71197,3933
Housing68,01165,75763,8273
Personal1,1511,1631,202(1)
Business33,80233,29832,7642
Provisions(501)(507)(400)(1)
Other overseas (A$)7,7235,9786,75329
Total loans806,767773,254739,6474
a.Includes personal and business auto finance loans.
Loans increased by 4% to $806.8 billion and comprised the following movements:
•Australian housing loans excluding RAMS grew by 5% to $473.4 billion or 1.2x APRA housing system, with faster
growth in owner occupied mortgages. Customers continue to prefer variable rate mortgages which now account for
90% of total mortgages, up from 76% in September 2023;
•RAMS housing loans were down 17% to $29.8 billion as the portfolio is closed to new business;
•Contraction in Australian personal lending of 2% to $9.4 billion due to higher paydown and subdued new lending,
particularly in personal loans;
•Growth in Australian business lending of 8% to $194.1 billion. The strong loan growth in WIB was primarily driven
by deepening relationships with existing customers in the institutional property, industrials & infrastructure sectors.
Additionally, Business segment loan growth was diversified with growth in our target industries of agriculture, health
and professional services;
•Auto finance loans were down 50% to $2.1 billion as the portfolio continued to runoff. The sale of this portfolio was
announced post balance date in October 2024;
•Growth in New Zealand lending of 3% to $102.5 billion in NZ$ terms, driven by growth in mortgages of 3% and
business lending of 2%; and
•Growth in other overseas loan balances of 29% to $7.7 billion. This reflected growth in lending to US customers.
112WESTPAC 2024 ANNUAL REPORT
GROUP PERFORMANCE
Review of earnings (Continued)
Deposits and other borrowings
$m202420232022
% Mov't
2024 - 2023
Customer deposits
Australia593,795557,781535,6456
Transactions
a
110,393114,097137,361(3)
Savings
a
197,415179,110148,15310
Term157,282144,220127,9219
Non-interest bearing
a
128,705120,354122,2107
New Zealand (A$)73,20174,29768,614(1)
New Zealand (NZ$)79,67679,78377,910-
Transactions
a
9,5958,7629,60910
Savings
a
19,43320,18521,423(4)
Term39,45138,47232,2733
Non-interest bearing
a
11,19712,36414,605(9)
Other overseas (A$)6,6198,8738,575(25)
Total customer deposits673,615640,951612,8345
Certificates of deposit46,87447,21746,295(1)
Australia33,21532,94730,5071
New Zealand (A$)1,7112,2472,588(24)
Other overseas (A$)11,94812,02313,200(1)
Total deposits and other borrowings720,489688,168659,1295
a.Comparatives have been revised to align with current period presentation.
Customer deposits grew by 5% to $673.6 billion and comprised the following movements:
•Australian deposits up 6% to $593.8 billion, mainly from growth in higher interest bearing products in the Consumer
and WIB segments. Non-interest bearing deposits were up 7% to $128.7 billion, due to an increase in mortgage offset
balances, supported by customer preference for variable rate loans and customers shifting from fixed rate loans;
•New Zealand deposits was stable at $79.7 billion in NZ$ terms from an increase in term deposits offset by a decline in
non-interest bearing deposits; and
•Decrease in other overseas deposits by 25% to $6.6 billion, primarily in WIB term deposits due to competition.
The deposit to loan ratio of 83.5% was higher than 30 September 2023, with deposit growth broadly funding loan
growth during the year.
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113
Review of earnings (Continued)
Loans and deposits market share and system multiple metrics
202420232022
Market Share
Australia
ADI System (APRA)
Housing credit21%21%22%
Personal credit cards21%21%21%
Business credit
a
16%15%15%
Household deposits21%21%20%
Business deposits
b
18%18%18%
Financial system (Reserve Bank of Australia (RBA))
Housing credit20%21%21%
Business credit
c
14%15%15%
Retail and business deposits
d
19%19%20%
New Zealand (Reserve Bank of New Zealand (RBNZ))
e
Consumer lending18%18%18%
Business lending16%16%16%
Deposits17%18%18%
System multiples
Australia
ADI System (APRA)
Housing credit0.80.80.5
Personal credit cards
f
n/a0.50.7
Business credit
a
1.20.80.9
Household deposits1.11.30.7
Business deposits
b,f
1.5n/a0.8
Financial system (RBA)
Housing credit0.80.90.5
Business credit
c
0.70.70.8
Retail and business deposits
d
1.10.60.8
New Zealand (RBNZ)
e
Consumer lending0.90.81.0
Business lending0.91.60.8
Deposits
f
n/a0.90.5
a.Westpac Group’s business credit growth rate and multiples are based on ADI System published by APRA in the Monthly ADI statistics.
Business credit includes loans with Non-Financial businesses and Community service organisations across all segments.
b.Westpac Group’s business deposit growth rate and multiples are based on ADI System published by APRA in the Monthly ADI statistics.
Business deposits include deposits from Non-Financial businesses and Community service organisations across all segments.
c.Westpac Group’s business credit growth rate and multiples are based on Financial System as published in the RBA Lending and Credit
Aggregates. Business credit includes loans with Non-financial businesses, Community service organisations, and select Financial Institutions.
d.Retail and business deposits include deposits from Households, Non-financial businesses, and select Financial institutions as defined in the
RBA Monetary Aggregates.
e.New Zealand comprises New Zealand banking operations.
f.n/a indicates that system growth and/or Westpac growth was negative.
114WESTPAC 2024 ANNUAL REPORT
GROUP PERFORMANCE
Review of earnings (Continued)
Non-interest income
$m202420232022
% Mov't
2024 - 2023
Net fee income1,6721,6451,6712
Net wealth management and insurance income
a
441562808(22)
Trading income704717664(2)
Other income18404(698)(96)
Total non-interest income2,8353,3282,445(15)
a.Following the sales of our insurance businesses in 2023, insurance income was nil for Full Year 2024.
Non-interest income is comprised of:
$m202420232022
% Mov't
2024 - 2023
Non-interest income (Ex Notable Items and Businesses sold)
Net fee income1,6721,6451,6722
Net wealth management and insurance income
a
441457467(4)
Trading income716750620(5)
Other income18136148(87)
Non-interest income (Ex Notable Items and Businesses sold)2,8472,9882,907(5)
Notable Items
Net fee income--(1)-
Net wealth management and insurance income
a
-(10)(51)(100)
Trading income(12)(33)44(64)
Other income-243(846)(100)
Total non-interest income - Notable Items(12)200(854)large
Businesses sold
Net wealth management and insurance income
a
-115392(100)
Other income-25-(100)
Total non-interest income - Businesses sold-140392(100)
Total non-interest income2,8353,3282,445(15)
a.Following the sales of our insurance businesses in 2023, insurance income was nil for Full Year 2024.
Non-interest income decreased by 15% to $2,835 million. Excluding Notable Items and the impact of businesses sold,
non-interest income decreased by 5% to $2,847 million.
Net fee income
Net fee income increased by 2% to $1,672 million. Key movements included:
•Higher Institutional lending fees of $59 million from increased underwriting activity and loan growth;
•Lower Australian merchants income of $16 million due to lower volumes; and
•Lower auto finance income of $14 million due to runoff of the portfolio.
Net wealth management income
Net wealth management income decreased by 22% to $441 million. Excluding Notable Items and the impact of
businesses sold, net wealth management income decreased by 4% to $441 million with platforms margin compression
more than offsetting higher funds under administration.
Trading income
Trading income decreased by 2% to $704 million. Excluding Notable Items, Trading income decreased by 5% to
$716 million primarily due to lower foreign exchange (FX) trading in WIB reflecting tighter spreads and reduced
derivative valuation adjustments (DVA). This was partly offset by the impact of hedges on commodity and
FX derivatives.
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115
Review of earnings (Continued)
Other income
Other income decreased by $386 million. Excluding Notable Items and the impact of businesses sold, Other income
decreased by $118 million primarily attributable to losses on commodity and FX derivatives.
Businesses sold
No business were sold in FY24. In October 2024, Westpac entered into an agreement to sell the auto finance portfolio
to Resimac Group Limited. The sale is expected to be completed in the first half of 2025, with an expected transaction
value of $1.4-$1.6 billion.
Past contribution to revenue from businesses sold totalled $140 million in FY23. This related to Advance Asset
Management Limited, BT's Superannuation business and Westpac Life Insurance Ltd prior to their exit. For further details
of the contribution of each business refer to
Net profit contribution of businesses sold (page 292).
Markets related income
1
$m202420232022
% Mov't
2024 - 2023
Net interest income
a
25216612352
Non-interest income677858619(21)
Markets income9291,024742(9)
Sales and risk management income937968773(3)
Derivative valuation adjustment(8)56(31)large
Markets income9291,024742(9)
a.Comparatives have been revised to align with current period presentation.
Markets income comprises sales and risk management revenue derived from the creation, pricing and distribution of
risk management products to Westpac's customers. Dedicated relationship specialists provide product solutions to these
customers to help manage their interest rate, foreign exchange, commodity, credit and structured products exposures.
Markets income decreased by 9% to $929 million.
Sales and risk management income decreased by 3% to $937 million. Income from continued strong customer volumes
and effective risk management in fixed income products was more than offset by lower FX trading income.
DVA had a negative impact of $8 million compared to a $56 million positive contribution in the prior year. This was
driven by the non-repeat of tightening counterparty credit spreads in the prior year.
1.
Markets income includes financial markets income derived by WIB, Business & Wealth and Westpac New Zealand excluding Debt Capital
Market activities.
116WESTPAC 2024 ANNUAL REPORT
GROUP PERFORMANCE
Review of earnings (Continued)
Operating expenses
$m202420232022
% Mov't
2024 - 2023
Staff expenses(5,899)(6,098)(5,866)(3)
Occupancy expenses(700)(786)(914)(11)
Technology expenses(2,764)(2,211)(2,203)25
Other expenses(1,581)(1,597)(1,819)(1)
Total operating expenses(10,944)(10,692)(10,802)2
Excluding Notable Items
Staff expenses(5,899)(5,863)(5,758)1
Occupancy expenses(700)(722)(788)(3)
Technology expenses(2,764)(2,178)(2,106)27
Other expenses(1,581)(1,469)(1,529)8
Total operating expenses excluding Notable Items(10,944)(10,232)(10,181)7
Operating expenses - Businesses sold-46(127)(100)
Operating expenses excluding Notable Items and Business sold(10,944)(10,278)(10,054)6
Full Time Equivalent (FTE) employees
Number of FTE202420232022
% Mov't
2024 - 2023
Permanent employees33,58333,66433,774-
Temporary employees1,6572,4823,702(33)
FTE35,24036,14637,476(3)
Average FTE35,25437,50338,573(6)
Total operating expenses increased 2% to $10,944 million.
Excluding Notable Items, operating expenses increased 7% to $10,944 million. The increase was mainly attributable to
higher software amortisation, higher third-party technology vendor expenses and costs related to closing RAMS to new
business. Cost Reset actions provided a partial offset. The expense to income ratio excluding Notable Items was 50.3%,
up from 47.5%.
Staff expenses decreased by 3% to $5,899 million. Excluding Notable Items, staff expenses increased by 1% due to the
impact of wage growth, continued step up in superannuation rates and RAMS restructuring costs. The 6% decline in
average FTE provided a partial offset, reflecting the continued impact of Cost Reset actions and our commitment to
improving efficiency.
Occupancy expenses decreased by 11% to $700 million. Excluding Notable Items, occupancy expenses decreased by
3% with further reductions in the Group's corporate and branch footprint, including the closure of 18 branches and
establishment of 29 co-locations.
Technology expenses increased 25% to $2,764 million. Excluding Notable Items, technology expenses were 27% higher
due to:
•Increased software amortisation of $268 million related to the completion of major projects;
•Higher software expenses across the Consumer and Westpac New Zealand segments; and
•Higher costs related to third-party vendor contract renewals and UNITE.
Other Expenses decreased 1% to $1,581 million. Excluding Notable Items, other expenses increased by 8% to
$1,581 million mainly due to the RAMS brand write-off of $32 million, increased scams and fraud expenses and
litigation provisions.
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117
Review of earnings (Continued)
Investment spend
$m202420232022
% Mov't
2024 - 2023
Expensed99281688322
Capitalised software, fixed assets and prepayments7641,1061,104(31)
Total1,7561,9221,987(9)
UNITE147---
Growth and productivity550728675(24)
Risk and regulatory1,0591,1941,312(11)
Total1,7561,9221,987(9)
Investment spend totalled $1,756 million in 2024, 9% lower than the prior year. The decline reflects the completion of
several large programs in 2023. Of the investment spend, UNITE accounted for 8%, 32% was directed towards growth
and productivity and 60% was focused on risk and regulatory initiatives.
UNITE commenced in 2024 to accelerate technology simplification. See page 38 for more information.
Growth and Productivity investments included:
•New features in the Westpac App. Refer to Number one banking app (page 21) for more information;
•Enhanced transactional banking and merchant service experience. Refer to Driving efficiency for businesses (page
24) for more information;
•Pay with Points, enabling customers to use their points to pay for credit card purchases;
•Enhanced international payments capability with the roll out of fixed FX payments, enabling customers to schedule
an international payment for a future date with an agreed exchange rate;
•The launch of Sustainable Upgrades home and investor loans for customers looking to make energy efficient
upgrades to their home;
•Commencing development of the integrated business lending origination platform; and
•Continued development of the corporate cash management platform.
Risk and Regulatory spend included:
•Completion of all the CORE Integrated Plan activities. Westpac is now in a transition phase, which is focused on
ensuring the sustainability and effectiveness of changes we have made to strengthen risk management and risk
culture across Westpac;
•Extending our scam prevention capabilities. Refer to Protecting customers and preventing crime (page 25) for
more information;
•Continued upgrade of international payments infrastructure;
•Maintaining New Payments Platform Australia scheme compliance and improving payments resilience, stability,
and risk;
•Continued simplification of our data environment to reduce risk and provide high-quality data for consumption; and
•Implementing changes to comply with Prudential Standard CPS 230, Operational Risk Management, in 2025. The new
standard requires entities to better manage operational risks and respond to business disruptions.
Capitalised software
$m202420232022
% Mov't
2024 - 2023
Balance as at beginning of the year2,7972,2641,84024
Total additions7921,1411,101(31)
Amortisation expense(889)(621)(545)43
Impairment expense(19)(8)(110)138
Foreign exchange movements(6)21(22)large
Balance as at end of the year2,6752,7972,264(4)
Average amortisation period (years)3.13.63.2(0.5) years
Capitalised software decreased $122 million or 4% compared to September 2023. The decrease reflects increased
amortisation due to the completion of key projects such as One Banking Platform, payments and investment to comply
with RBNZ’s outsourcing policy, BS11. Lower additions were driven by lower investment spend as focus turned towards
the planning phase of the Technology simplification program, UNITE. This has resulted in average amortisation period
reducing by 0.5 years to 3.1 years from September 2023.
118WESTPAC 2024 ANNUAL REPORT
GROUP PERFORMANCE
Review of earnings (Continued)
Credit impairment charges
$m202420232022
% Mov't
2024 - 2023
Individually assessed provisions (IAPs)
New IAPs(423)(197)(220)115
Write-backs93127115(27)
Recoveries190191189(1)
Total IAPs, write-backs and recoveries(140)12184large
Collectively assessed provisions (CAPs)
Write-offs(486)(440)(446)10
Other changes in CAPs89(329)27large
Total CAPs(397)(769)(419)(48)
Total impairment (charges)/benefits(537)(648)(335)(17)
Impairment charges/(benefits) to average loans7 bps9 bps5 bps(2 bps)
Net write-offs to average gross loans5 bps5 bps10 bps-
The credit impairment charge of $537 million represented 7 basis points of average loans, down from 9 basis points in
the prior year. The impairment charge was driven by a lower CAP charge of $397 million and IAP charge of $140 million.
This compared to a CAP charge of $769 million and an IAP benefit of $121 million in the prior year.
The CAP charge of $397 million comprised write-offs of $486 million partly offset by a benefit in other changes in CAP
of $89 million. The other changes in CAP were due to:
•A reduction in portfolio overlays of $253 million driven by the partial release of mortgage related overlays;
•A reduction in the downside scenario weight of 2.5% in First Half 2024 reflecting a modest reduction in
macroeconomic uncertainty at that time;
•An increase in mortgage 90+ day delinquencies from 0.81% to 1.05%; and
•Less favourable outlook for commercial property prices and GDP along with a delay in the expected timing of interest
rate declines.
The IAP charge of $140 million comprised:
•New IAPs of $423 million, mostly in the wholesale & retail trade and manufacturing sectors and the
mortgage portfolio;
•Recoveries of $190 million, mostly in the credit card and personal loan portfolios; and
•Write-backs of $93 million, mostly within the Business & Wealth segment.
Income tax expense
The effective tax rate of 30.84% in 2024 (2023: 30.12%) was higher as 2023 included accounting gains from the sale
of Advance Asset Management Limited that were not taxable. The effective tax rates are both above the Australian
corporate tax rate of 30%
Non-controlling interests
During the year, Westpac New Zealand Limited issued a NZ$375 million perpetual preference shares which are
recognised as Additional Tier 1 capital for Westpac New Zealand Limited. For Westpac, the terms of this instrument do
not satisfy APRA's capital requirements and are deemed to be a non-controlling interests as they are equity instruments
issued by a wholly owned subsidiary that are held by external investors with no contractual obligation on Westpac to
repay in an adverse event.
In addition, Westpac acquired 8.74% of the non-controlling shares of Westpac Bank-PNG-Limited, which will raise our
controlling interest to 98.65%.
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Credit quality
Credit quality key metrics
202420232022
% Mov't
2024 - 2023
Stressed exposures by credit grade as a % of TCE:
Impaired0.16%0.11%0.13%5 bps
Non performing, 90 days past due0.47%0.39%0.32%8 bps
Non performing, less than 90 days past due0.23%0.22%0.19%1 bps
Watchlist and substandard0.59%0.54%0.43%5 bps
Total stressed exposures1.45%1.26%1.07%19 bps
Gross impaired exposures to TCE for business and institutional:
Business Australia0.65%0.44%0.55%21 bps
Business New Zealand0.32%0.12%0.16%20 bps
Institutional0.04%0.02%0.05%2 bps
Mortgage 90+ day delinquencies:
Group1.05%0.81%0.69%24 bps
Australia1.12%0.86%0.75%26 bps
New Zealand0.49%0.33%0.22%16 bps
Other consumer loans 90+ day delinquencies:
Group1.40%1.28%1.56%12 bps
Australia1.47%1.32%1.60%15 bps
New Zealand0.87%0.92%1.03%(5 bps)
Other:
Gross impaired exposures to gross loans0.24%0.17%0.20%7 bps
Gross impaired exposure provisions to gross impaired exposures41.28%43.47%47.95%(219 bps)
Total provisions to gross loans63 bps63 bps62 bps-
Collectively assessed provisions to credit risk weighted assets132 bps135 bps116 bps(3 bps)
Total provisions to credit risk weighted assets147 bps145 bps128 bps2 bps
Movement in gross impaired exposures
$m202420232022
% Mov't
2024 - 2023
Balance as at beginning of the year1,3021,5142,142(14)
New and increased - individually managed70136743091
Write-offs(620)(601)(934)3
Returned to performing or repaid(288)(449)(436)(36)
Portfolio managed - new/increased/returned/repaid87046829686
Exchange rate and other adjustments(10)316large
Balance as at end of the year1,9551,3021,51450
Loan quality
Housing and personal loans that were past due can be dis-aggregated based on days overdue as follows:
Consolidated
20242023
$m30-89 days90+ daysTotal30-89 days90+ daysTotal
Loans
Loans - housing3,8905,9149,8043,6444,3858,029
Loans - personal125143268128144272
Total4,0156,05710,0723,7724,5298,301
120WESTPAC 2024 ANNUAL REPORT
GROUP PERFORMANCE
Credit quality (Continued)
Credit quality remained resilient, notwithstanding a rise in stressed exposures as a percentage of total committed
exposures (TCE) of 19 basis points to 1.45%. The composition and drivers of stressed exposures were:
•Impaired exposures of 16 basis points: a 5 basis point increase reflecting higher impaired balances in the mortgage
portfolio and the wholesale & retail trade and manufacturing sectors.
•Non-performing, 90+ days past due and not impaired exposures of 47 basis points: a 8 basis point increase reflecting
higher mortgage 90+ day delinquencies;
•Non-performing not 90 days past due and not impaired exposures of 23 basis points: a 1 basis point increase; and
•Watchlist and substandard exposures of 59 basis points: a 5 basis point increase relating to the wholesale & retail
trade and manufacturing sectors.
Gross impaired exposures to gross loans were 7 basis points higher at 0.24%, driven by higher impaired exposures
in the mortgage portfolio and the wholesale & retail trade and manufacturing sectors. The provision coverage of the
impaired portfolio was 41%, down from 43% at 30 September 2023. Impaired exposures have an appropriate level of
provision cover.
Portfolio segments
Stressed exposures in WIB increased by 18 basis points to 0.76%, driven by increases in substandard exposures in the
trade and property sectors. Impaired exposures to TCE remain low at 0.05%.
Australian business stressed exposure increased by 29 basis points to 5.24% driven by downgrades to watchlist in the
wholesale & retail trade and transport & storage sectors. Impaired exposures to TCE increased 20 basis points to 0.65%
with deterioration in the wholesale & retail trade and agriculture, forestry & fishing sectors.
Australian mortgage 90+ day delinquencies increased 26 basis points to 1.12% due to elevated interest rates and cost of
living pressures. Hardship increased by 43 basis points to 1.14% as customers required additional assistance.
Properties in possession were 201, a reduction of 9 compared to 30 September 2023 reflecting increased turnover and
price momentum in the residential property market.
Australian other consumer 90+ day delinquencies increased 15 basis points to 1.47% driven by cost of living pressures
impacting the cards and personal loans portfolios.
In New Zealand, stressed exposure to TCE increased by 24 basis points to 1.73%. This was driven by a 10 basis
point increase in impaired exposure to 0.16%, mostly within the manufacturing sector, and increases in watchlist and
substandard exposures in the agriculture, forestry & fishing sector.
New Zealand mortgage 90+ day delinquencies were up 16 basis points to 0.49%. This increase reflected the impact of
cost of living pressures. Other consumer 90+ day delinquencies were 5 basis points lower at 0.87% reflecting a lower
level of delinquency in the personal loans portfolio. The number of hardship cases has remained stable over the period.
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121
Credit quality (Continued)
Provisioning
$m202420232022
% Mov't
2024 - 2023
Provision for expected credit losses (ECL) on loans and credit commitments
Collectively assessed provisions
Modelled provision4,3694,1473,4735
Overlays179432700(59)
Total collectively assessed provisions4,5484,5794,173(1)
Individually assessed provisions53635145253
Total provision for ECL on loans and credit commitments5,0844,9304,6253
Provision for ECL on debt securities at amortised cost666-
Provision for ECL on debt securities at FVOCI
a
65420
Total provision for ECL5,0964,9414,6353
a.FVOCI represents fair value through other comprehensive income.
Total provisions increased 3% to $5,096 million. The increase was driven by a higher IAP.
The increase in the IAP of $185 million was driven by new IAPs in the mortgage portfolio and the wholesale & retail trade
and manufacturing sectors.
CAP was $31 million lower, reflecting higher modelled provisions more than offset by a reduction in portfolio overlays
and a reduction in the downside scenario weight.
Modelled provisions were higher due to:
•Less favourable outlook for commercial property prices, GDP and interest rates; and
•Higher levels of stress in the portfolio, particularly mortgage 90+ day delinquencies.
This was partly offset by a 2.5% reduction in the downside scenario weight to 42.5% in First Half 2024, reflecting
a reduction in macroeconomic uncertainty in First Half 2024. In the Second Half 2024 the scenario weights
remained unchanged.
Portfolio overlays were $253 million lower as the expected risk did not materialise or is now reflected in modelled
outcomes. The reduction reflects partial release of mortgage related overlays.
Scenario weightings (%)
202420232022
Upside5.05.05.0
Base52.550.050.0
Downside42.545.045.0
122WESTPAC 2024 ANNUAL REPORT
GROUP PERFORMANCE
Balance sheet and funding
Balance sheet
The detailed components of the balance sheet are set out in the notes to the financial statements.
$m202420232022
% Mov't
2024 - 2023
Assets
Loans806,767773,254739,6474
Housing566,081547,074523,9523
Personal11,23812,37913,897(9)
Business234,016218,234206,0047
Provision for expected credit losses(4,568)(4,433)(4,206)3
Liquid assets200,682196,720194,0582
Assets held for sale--75-
All other assets70,09559,80080,41817
Total assets1,077,5441,029,7741,014,1985
Liabilities
Customer deposits673,615640,951612,8345
Transactions
a
119,944123,046146,759(3)
Savings
a
216,256198,909167,9669
Term197,230185,770161,8586
Non-interest bearing
a
140,185133,226136,2515
Certificates of deposit46,87447,21746,295(1)
Debt issues169,284156,573144,8688
Term funding from central banks2,77716,58633,277(83)
Loan capital37,88333,17631,25414
Liabilities held for sale--32-
All other liabilities75,05962,73275,12920
Total liabilities1,005,492957,235943,6895
Equity
Total equity attributable to owners of WBC71,70572,49570,452(1)
Non-controlling interests
b
3474457large
Total equity72,05272,53970,509(1)
a.Comparatives have been revised to align with current period presentation.
b.Westpac recognises the perpetual preference shares issued by Westpac New Zealand Limited as non-controlling interests.
Funding and liquidity risk management
Liquidity risk is the risk that a bank will be unable to fund assets and meet obligations as they become due. This risk is
inherent for all banks as intermediaries between depositors and borrowers. Westpac has a Liquidity Risk Management
Framework which seeks to ensure we meet our cash flow obligations under a wide range of market conditions and
scenarios, as well as meeting the requirements of the LCR and NSFR.
The Liquidity Risk Management Framework is approved by the Board and sets out the funding and liquidity risk appetite.
It also determines the roles and responsibilities of key people managing funding and liquidity risk, risk reporting and
control processes. In addition, it sets out the limits and targets used to manage Westpac’s balance sheet, including
wholesale funding limits, liquidity risk limits and stress testing.
A strong liquidity position and a conservative funding profile were maintained over the year, with key ratios and metrics
remaining comfortably above minimum requirements. Reflecting Westpac’s low risk profile, the credit ratings for some
term funding and capital instruments were upgraded by key ratings agencies in March and April 2024.
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Balance sheet and funding (Continued)
LCR
$m202420232022
% Mov't
2024 - 2023
High Quality Liquid Assets (HQLA)172,722181,882175,595(5)
Committed Liquidity Facility (CLF)--15,512-
Total LCR liquid assets172,722181,882191,107(5)
Cash outflows in a modelled 30-day APRA defined stressed scenario
Customer deposits95,13395,008101,271-
Wholesale funding8,71511,24912,975(23)
Other flows
a
26,06729,94331,051(13)
Total129,915136,200145,297(5)
LCR
b
133%134%132%(59 bps)
a.Other flows include credit and liquidity facilities, collateral outflows, inflows from customers and TFF maturities.
b.Calculated on a quarterly average basis for the quarter ended 30 September.
The LCR is designed to enhance banks’ short-term resilience, by measuring the level of HQLA, as defined, held against its
liquidity needs for a 30 calendar day period under a regulator-defined stress scenario.
The average LCR for the quarter ended 30 September 2024 was 133%, little changed compared to the quarter ended
30 September 2023 due to reductions in both liquid assets and net cash outflows. The ratio remains well above the
regulatory minimum of 100%.
The average HQLA held in the September 2024 quarter was $173 billion, which provides approximately $43 billion in
HQLA above the 100% LCR minimum. The portfolio of HQLA provides a buffer against periods of liquidity stress, as well
as meeting regulatory requirements. HQLA include cash, deposits with central banks, government and semi-government
securities, and are recognised in the LCR calculation at market value.
Derivatives are used to hedge the interest rate risk of the liquid asset portfolio and reduce exposure to changes in fair
value. Changes in the fair value of liquid assets are recognised in Other Comprehensive Income through the relevant
equity reserve.
Westpac also has access to non-HQLA and other assets that are eligible for re-purchase with a central bank under
certain conditions and provide a source of additional liquidity. These assets include private securities and self-originated
AAA-rated mortgage-backed securities.
NSFR
$m202420232022
% Mov't
2024 - 2023
Available stable funding736,202707,893687,4424
Required stable funding654,798615,341570,1856
Net stable funding ratio112%115%121%(261 bps)
The NSFR is designed to encourage banks’ longer-term funding resilience. To comply, banks are required to maintain an
NSFR of at least 100% at all times. The NSFR was 112% at 30 September 2024, well above the 100% minimum and within
the Group's normal operating range. There has been little change to our liquidity risk or structural term profile.
The ratio was down from 115% at 30 September 2023. Available stable funding increased due to growth in customer
deposits. This was offset by the increase in required stable funding due to growth in lending and TFF maturities, as
mortgages backing those facilities are no longer used as collateral for the TFF.
124WESTPAC 2024 ANNUAL REPORT
GROUP PERFORMANCE
Balance sheet and funding (Continued)
Funding
The composition and stability of the Group's funding is monitored to comply with its funding risk appetite and the
regulatory requirements of both the LCR and NSFR. A stable funding profile was maintained during the year with
constructive credit market conditions providing opportunities to refinance wholesale maturities and remain responsive to
balance sheet needs.
Funding by residual maturity
202420232022
$mRatio %$mRatio %$mRatio %
Customer deposits673,61566.9640,95166.0612,83465.1
Wholesale funding
Short term82,5908.279,1818.179,0988.4
Long term - less than or equal to one year
residual maturity31,7903.240,6074.238,8964.1
Long term - more than one year
residual maturity
140,45813.9133,97913.8136,58614.5
Securitisation5,5390.64,2980.44,9730.5
Total wholesale funding260,37725.9258,06526.5259,55327.5
Equity
a
72,0527.272,5437.569,9677.4
Total funding1,006,044100.0971,559100.0942,354100.0
a.Includes total share capital, share-based payment reserve and retained profits.
Long term wholesale funding
Long term funding with a residual maturity greater than 12 months made up 13.9% of total funding at
30 September 2024, up from 13.8% at 30 September 2023. Funding from securitisation accounted for a further 0.6%
of total funding, an increase compared to 0.4% at 30 September 2023, reflecting the $2.75 billion transaction issued in
February 2024.
In total, $41.9 billion of long term wholesale funding was raised in 2024, including $5.1 billion issued by Westpac New
Zealand Limited. Leveraging the scale and diversity of the Group's wholesale funding franchise, new issuance included
senior unsecured and covered bonds, RMBS and capital securities, including $5.4 billion in Tier 2 capital securities
and $2.1 billion in Additional Tier 1 capital securities. New long term issuance was raised across a range of tenors and
currencies, although almost half was raised in Australian dollars, benefiting from the continued depth of the Australian
bond market.
Short term wholesale funding
Short term wholesale funding accounted for 8.2% of total funding at 30 September 2024, up from 8.1% at
30 September 2023. Long term funding where the residual maturity is less than one year, reduced to 3.2% at
30 September 2024, from 4.2% at 30 September 2023 mainly due to the repayment of TFF maturities. The short term
wholesale funding portfolio, including long term funding with a residual maturity of less than one year, had a weighted
average maturity of 151 days, up from 149 days at 30 September 2023.
Deposit to loan ratio
202420232022
$mRatio %$mRatio %$mRatio %
Customer deposits673,615640,951612,834
Loans806,76783.50773,25482.89739,64782.85
Customer deposits
Customer deposits accounted for 66.9% of the total funding at 30 September 2024, compared to 66.0% at
30 September 2023. Over the year, customer deposits grew $32.7 billion compared to loan growth of $33.5 billion. As
the growth in customer deposit was 5.1% relative to the growth in loans of 4.3%, the deposit to loan ratio rose to 83.5%.
Equity
Funding from equity made up 7.2% of total funding at 30 September 2024, compared to 7.5% at 30 September 2023.
This reflects the impact of the on market share buyback conducted during the year.
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125
Capital and dividends
202420232022
a
% Mov't
2024 - 2023
Level 2 regulatory capital structure
Common equity Tier 1 (CET1) capital after deductions ($m)54,64855,88553,943(2)
Risk weighted assets (RWA) ($m)437,430451,418477,620(3)
CET1 capital ratio12.49%12.38%11.29%11 bps
Additional Tier 1 capital ratio2.33%2.21%2.10%12 bps
Tier 1 capital ratio14.82%14.59%13.39%23 bps
Tier 2 capital ratio6.56%5.86%5.01%70 bps
Total regulatory capital ratio21.38%20.45%18.40%93 bps
APRA leverage ratio5.30%5.50%5.61%(20 bps)
Level 1 regulatory capital structure
CET1 capital after deductions ($m)50,45452,27350,722(3)
Risk weighted assets ($m)397,719414,293447,010(4)
Level 1 CET1 capital ratio12.69%12.62%11.35%7 bps
a.APRA’s revised capital framework (Basel III) became effective on 1 January 2023 and included updated prudential standards for capital
adequacy and credit risk capital. The reported 2022 comparatives have not been restated to align to the current capital framework.
Capital management strategy
The capital management strategy is reviewed on an ongoing basis, including through an annual Internal Capital
Adequacy Assessment Process. Key considerations include:
•Regulatory capital minimums together with the capital conservation buffer and countercyclical capital buffer
comprise the Total CET1 Requirement. The Total CET1 Requirement for domestic systemically important banks (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 tests our resilience under a range of adverse economic scenarios.
The Board has determined a target CET1 capital operating range of between 11.0% and 11.5%, in normal
operating conditions.
LEVEL 2 CET1 CAPITAL RATIO MOVEMENT FOR 2024
12.38%
160bps(117bps)
36bps(11bps)
(3bps)
(54bps)
12.49%
Sep-23Net profitOrdinary
dividends
RWA movementCapital deductions
and other items
FX translation
impacts
Capital returnSep-24
The Level 2 CET1 capital ratio was 12.49% at 30 September 2024, 11 basis points higher than 30 September 2023. Key
movements include:
•2024 net profit: 160 basis points increase;
•Payment of the 2023 final ordinary dividend and the 2024 interim ordinary dividend: 117 basis points reduction;
1.
Noting that APRA may apply higher CET1 requirements for an individual ADI.
126WESTPAC 2024 ANNUAL REPORT
GROUP PERFORMANCE
Capital and dividends (Continued)
•RWA movement: 36 basis points increase due to non-credit RWA decrease of 57 basis points partly offset by credit
RWA increase of 21 basis points;
•Capital deductions and other items: 11 basis points decrease mainly due to other reserve movements and a higher
deduction for deferred tax assets;
•Foreign currency translation impacts: 3 basis points reduction mainly from the appreciation of the A$ against the
US$; and
•Capital return: 54 basis points reduction comprising a $0.5 billion special dividend and approximately $1.8 billion of
on market share buybacks.
The Level 1 CET1 capital ratio was 12.69% at 30 September 2024, 7 basis points higher than 30 September 2023 with
movements mostly in line with Level 2.
Additional Tier 1 and Tier 2 capital movement for 2024
During the year, Westpac issued $1.75 billion of APRA qualifying Additional Tier 1 instruments and redeemed $1.4 billion,
excluding issuance and redemption of Additional Tier 1 instruments by Westpac New Zealand Limited. The net impact of
these transactions was an increase in the Tier 1 capital ratio of approximately 7 basis points.
Westpac issued $5.4 billion of Tier 2 capital instruments and redeemed $1.35 billion over the year. The net impact of
these transactions was an increase in the total regulatory capital ratio of approximately 92 basis points.
Domestic systemically important banks (D-SIBs), including Westpac, have a total capital requirement of 18.25% from
1 January 2026. Westpac's total regulatory capital ratio was 21.38% at 30 September 2024.
Leverage ratio
The leverage ratio represents the amount of Tier 1 capital relative to exposure
1
. At 30 September 2024, the leverage ratio
was 5.30%, down 20 basis points from 30 September 2023, and above APRA's regulatory minimum requirement of 3.5%.
The decrease in the leverage ratio is mainly due to lower Tier 1 regulatory capital as a result of the on market share
buybacks completed during the year.
Internationally comparable capital ratios
APRA’s capital adequacy requirements are more conservative than those of the Basel Committee on Banking
Supervision, leading to lower reported capital ratios when compared to international peers.
International comparable capital ratios have been calculated using the methodology outlined in the Australian Banking
Association study released on 10 March 2023. The 2022 comparatives have not been restated and capital ratios are
reported under the APRA study published in July 2015.
%
202420232022
% Mov't
2024 - 2023
Internationally comparable capital ratios
CET1 capital ratio18.27%18.73%17.57%(46 bps)
Tier 1 capital ratio21.33%21.76%20.57%(43 bps)
Total regulatory capital ratio29.93%29.87%27.75%6 bps
Leverage ratio5.78%5.98%6.00%(20 bps)
1.As defined under Attachment D of APS110: Capital Adequacy.
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SHAREHOLDER
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127
Capital and dividends (Continued)
Risk Weighted Assets (RWA)
$m202420232022
a
% Mov't
2024 - 2023
Credit risk:
Corporate25,97624,8185
Business lending25,03323,8605
Property finance32,19630,4166
Large corporate21,03520,5702
Sovereign2,0472,143(4)
Financial institution13,69413,4572
Residential mortgages116,228112,9483
Australian credit cards3,5653,712(4)
Other retail3,9954,607(13)
Small business17,12317,040-
Specialised lending3,6953,06521
Securitisation7,8217,6612
Standardised25,41428,813(12)
New Zealand
b
48,14246,6483
Total credit risk345,964339,758362,0982
Market risk9,55511,5389,290(17)
Operational risk48,19655,17559,063(13)
Interest rate risk in the banking book (IRRBB)27,95540,13842,782(30)
Other5,7604,8094,38720
Total risk weighted assets437,430451,418477,620(3)
a.APRA’s revised capital framework (Basel III) became effective on 1 January 2023 and included updated prudential standards for capital
adequacy and credit risk capital. Credit classes for 2022 do not align to the current capital framework and therefore have not been included in
the table.
b.Includes credit and securitisation exposures regulated under RBNZ prudential requirements.
Total RWA decreased by 3.1% to $437.4 billion over the year largely due to the decrease in non-credit RWA.
Credit RWA increased by 1.8% or $6.2 billion. Key movements included:
•A $6.9 billion increase from higher lending primarily in Corporate, Large Corporate and Property Finance;
•A $8.1 billion increase due to deterioration in credit quality mainly from an increase in delinquencies in Residential
Mortgages and New Zealand exposures:
•A $7.2 billion decrease from data refinements mainly related to Residential Mortgages, Corporate and Large
Corporate exposures;
•A $0.3 billion decrease from counterparty credit risk and mark-to-market related credit risk from changes in
underlying foreign currency rates; and
•A $1.3 billion decrease from foreign currency translation impacts, predominantly the appreciation of the A$ against
the US$.
Non-credit RWA were $20.2 billion lower. Key movements included:
•IRRBB RWA: $12.2 billion decrease mainly due to:
–A decrease of $17.1 billion due to lower interest rates and a revised IRRBB model, resulting in an embedded gain of
$1.3 billion for 30 September 2024 compared to a $15.9 billion loss at September 2023; and
–A $4.9 billion increase in repricing and yield curve, basis and optionality risk in line with underlying banking
book positions.
•Operational RWA: $7.0 billion decrease mainly driven by a reduction in the APRA capital overlay; and
•Market RWA: $2.0 billion decrease due to reduced market volatility in the one-year historical VaR window as market
events rolled out of the observation period, a decrease in Stressed Value at Risk (SVaR) from lower market risk
exposures and a reduction in the Risks not in VaR (RNIV) add-on.
128WESTPAC 2024 ANNUAL REPORT
GROUP PERFORMANCE
Capital and dividends (Continued)
Capital adequacy
$m202420232022
% Mov't
2024 - 2023
Tier 1 capital
CET1 capital
Paid up ordinary capital37,95839,82639,666(5)
Treasury shares(815)(759)(712)7
Equity based remuneration2,0281,9291,8435
Foreign currency translation reserve(471)(171)(537)175
Accumulated other comprehensive income(617)(221)28179
Non-controlling interests - other84457(82)
Retained earnings32,77331,43629,0634
Less retained earnings in life and general insurance, funds management and
securitisation entities(357)(369)(300)(3)
Deferred fees3503343005
Total CET1 capital70,85772,04969,408(2)
Deductions from CET1 capital
Goodwill (excluding funds management entities)(7,922)(7,940)(7,914)-
Deferred tax assets(2,377)(2,144)(1,746)11
Goodwill in life and general insurance, funds management and
securitisation entities(149)(149)(204)-
Capitalised expenditure(2,349)(2,375)(2,148)(1)
Capitalised software(2,668)(2,797)(2,263)(5)
Investments in subsidiaries not consolidated for regulatory purposes(154)(76)(316)103
Regulatory expected downturn loss in excess of eligible provisions--(144)-
Securitisation(9)(16)-(44)
Defined benefit superannuation fund surplus(215)(217)(219)(1)
Equity investments(235)(228)(187)3
Regulatory adjustments to fair value positions(131)(222)(324)(41)
Total deductions from CET1 capital(16,209)(16,164)(15,465)-
Total CET1 capital after deductions54,64855,88553,943(2)
Additional Tier 1 capital
Basel III complying instruments10,22510,03710,0212
Total Additional Tier 1 capital10,22510,03710,0212
Deductions from Additional Tier 1 capital
Holdings of own and other financial institutions Additional Tier 1
capital instruments(30)(46)(25)(35)
Total deductions from Additional Tier 1 capital(30)(46)(25)(35)
Net Additional Tier 1 regulatory capital10,1959,9919,9962
Net Tier 1 regulatory capital64,84365,87663,939(2)
Tier 2 capital
Basel III complying instruments28,29325,74023,79110
Eligible general reserve for credit loss7701,051411(27)
Total Tier 2 capital29,06326,79124,2028
Deductions from Tier 2 capital
Holdings of own and other financial institutions Tier 2 capital instruments(368)(370)(243)(1)
Total deductions from Tier 2 capital(368)(370)(243)(1)
Net Tier 2 regulatory capital28,69526,42123,9599
Total regulatory capital93,53892,29787,8981
Risk weighted assets437,430451,418477,620(3)
CET1 capital ratio12.49%12.38%11.29%11 bps
Additional Tier 1 capital ratio2.33%2.21%2.10%12 bps
Tier 1 capital ratio14.82%14.59%13.39%23 bps
Tier 2 capital ratio6.56%5.86%5.01%70 bps
Total regulatory capital ratio21.38%20.45%18.40%93 bps
STRATEGIC
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SHAREHOLDER
INFORMATION
129
Capital and dividends (Continued)
Dividends
202420232022
% Mov't
2024 - 2023
Ordinary dividend - Interim (cents per share)7570617
Ordinary dividend - Final (cents per share)7672646
Total ordinary dividend (cents per share)1511421256
Special dividend (cents per share)15---
Ordinary dividend payout ratio
a
74.62%69.20%76.79%large
Ordinary dividend payout ratio (ex Notable Items)73.32%67.57%66.57%large
Adjusted franking credit balance ($m)3,5043,5203,298-
a.Payout ratio excludes the dividend component of completed off-market share buyback announced on 14 February 2022.
The Board has determined a fully franked final ordinary dividend of 76 cents per share, to be paid on 19 December 2024
to shareholders on the register at the record date of 8 November 2024. The 2024 interim and final ordinary dividends
represent a payout ratio of 73.32% excluding Notable Items.
In addition to being fully franked, the final ordinary dividend will also carry NZ$0.06 in New Zealand imputation credits
that may be used by New Zealand tax residents.
The Board has determined to satisfy the DRP for the final ordinary dividend by arranging for the purchase of shares in
the market by a third party. The market price used to determine the number of shares provided to DRP participants will
be set over the 15 trading days commencing 13 November 2024 and will not include a discount.
The Board has also determined to increase the on-market share buyback by a further $1.0 billion, in addition to the
previously announced on-market share buyback of up to $2.5 billion. In aggregate, this represents a share buyback of up
to $3.5 billion.
Capital deduction for regulatory expected credit loss
For capital adequacy purposes APRA requires the amount of regulatory expected credit losses in excess of eligible
provisions to be deducted from CET1 capital. The table below shows the calculation of this capital deduction.
$m
202420232022
% Mov't
2024 - 2023
Provisions associated with eligible portfolios
Total provisions for expected credit losses5,0964,9414,6353
plus provisions associated with partial write-offs290292377(1)
less ineligible provisions
a
(201)(192)(143)5
Total eligible provisions5,1855,0414,8693
Regulatory expected downturn loss4,4864,0784,69010
Excess/(shortfall) in eligible provisions compared to regulatory expected
downturn loss699963179(27)
CET1 capital deduction for regulatory expected downturn loss in excess of
eligible provisions
b
--(144)-
a.Provisions associated with portfolios subject to the Basel standardised approach to credit risk are not eligible.
b.Regulatory expected loss is calculated for portfolios subject to the Basel advanced capital IRB approach to credit risk. The comparison
between regulatory expected loss and eligible provisions is performed separately for defaulted and non-defaulted exposures.
130WESTPAC 2024 ANNUAL REPORT
SEGMENT REPORTING
For reporting purposes, Westpac identifies the impact of Notable Items on income and expenses and includes a subtotal
titled “Pre-provision profit”. Pre-provision profit represents profit before impairment charges and income tax expenses.
In 2024, Westpac established a new operating segment called Business & Wealth and dissolved the Specialist Business
Division (SBD). The remaining operating businesses of SBD, which included the Platforms business, Pacific Banking,
Margin lending and the auto finance portfolio were aggregated into the Business & Wealth segment. The past
contribution from SBD’s sold businesses were aggregated with Group Businesses.
In addition, we have made some changes to enhance performance reporting and assessment:
•Funds transfer pricing: The methodology by which the costs of wholesale funding and liquidity are allocated to
segments has been refined.
•Capital allocations: Revised capital allocations to align to the Basel III framework adopted in January 2023.
•Expense allocations: Reallocation of the activities and expenses of Enterprise functions across segments.
These changes have been reflected in segment reporting so that the information presented aligns with
information reported internally to key decision makers. Comparatives have been restated to align with the current
period presentation.
$mConsumer
Business
& Wealth
Westpac
Institutional
Bank
Westpac
New Zealand
(A$)
a
Group
BusinessesGroup
2024
Net interest income7,6325,3382,2402,3881,31818,916
Non-interest income5287981,265257(1)2,847
Notable Items---(8)(167)(175)
Net operating income8,1606,1363,5052,6371,15021,588
Operating expenses(4,787)(2,626)(1,465)(1,262)(804)(10,944)
Total operating expenses(4,787)(2,626)(1,465)(1,262)(804)(10,944)
Pre-provision profit3,3733,5102,0401,37534610,644
Impairment (charges)/benefits(248)(142)(120)(25)(2)(537)
Profit before income tax (expense)/benefit3,1253,3681,9201,35034410,107
Income tax (expense)/benefit and NCI
b
(941)(1,012)(553)(377)(234)(3,117)
Net profit/(loss)2,1842,3561,3679731106,990
Net profit includes impact of:
Notable Items (post tax)
b
---(6)(117)(123)
2023
Net interest income8,1774,9921,9262,3171,00218,414
Non-interest income5248441,3672401533,128
Notable Items-(88)--191103
Net operating income8,7015,7483,2932,5571,34621,645
Operating expenses(4,533)(2,459)(1,316)(1,186)(738)(10,232)
Notable Items(202)(64)(15)(9)(170)(460)
Total operating expenses(4,735)(2,523)(1,331)(1,195)(908)(10,692)
Pre-provision profit3,9663,2251,9621,36243810,953
Impairment (charges)/benefits(179)(257)(87)(124)(1)(648)
Profit before income tax (expense)/benefit3,7872,9681,8751,23843710,305
Income tax (expense)/benefit and NCI
b
(1,142)(882)(538)(350)(198)(3,110)
Net profit/(loss)2,6452,0861,3378882397,195
Net profit includes impact of:
Notable Items (post tax)
b
(148)(107)(10)(7)99(173)
Profit/(loss) attributable to
businesses sold
c
----131131
a.Refer to the Westpac New Zealand NZ$ segment reporting for further details.
b.Includes tax benefits on Notable Items of $52 million in 2024 (2023: $184 million).
c.Refer to Additional Information for further details.
STRATEGIC
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STATEMENTS
SHAREHOLDER
INFORMATION
131
$mConsumer
Business
& Wealth
Westpac
Institutional
Bank
Westpac
New Zealand
(A$)
a
Group
BusinessesGroup
2022
Net interest income8,4733,5081,4382,1071,08016,606
Non-interest income5578811,1502794323,299
Notable Items-(1)-120(418)(299)
Net operating income9,0304,3882,5882,5061,09419,606
Operating expenses(4,411)(2,446)(1,265)(1,072)(987)(10,181)
Notable Items(66)(13)--(542)(621)
Total operating expenses(4,477)(2,459)(1,265)(1,072)(1,529)(10,802)
Pre-provision profit4,5531,9291,3231,434(435)8,804
Impairment (charges)/benefits(187)(97)(85)259(335)
Net profit includes impact of:4,3661,8321,2381,459(426)8,469
Income tax (expense)/benefit and NCI
b
(1,314)(557)(372)(382)(150)(2,775)
Net profit/(loss)3,0521,2758661,077(576)5,694
Net profit includes impact of:
Notable Items (post tax)
b
(47)(9)-119(937)(874)
Profit/(loss) attributable to
businesses sold
c
---18168186
a.Refer to the Westpac New Zealand NZ$ segment reporting for further details.
b.Includes tax benefits on Notable Items of $46 million.
c.Refer to Additional Information for further details.
Businesses sold
The table below shows the profit/(loss) attributable to businesses sold on the segments by the relevant period. No
businesses were sold in FY24.
Further details are provided in Net profit contribution of businesses sold (page 292).
$m
Consumer
Business
& Wealth
Westpac
Institutional
Bank
Westpac
New Zealand
(A$)
Group
BusinessesGroup
2023
Net interest income------
Non-interest income----140140
Net operating income----140140
Operating expenses----4646
Pre-provision profit----186186
Impairment (charges)/benefits------
Profit before income tax (expense)/benefit----186186
Income tax (expense)/benefit and NCI----(55)(55)
Net profit----131131
2022
Net interest income----66
Non-interest income---28364392
Net operating income---28370398
Operating expenses---(3)(124)(127)
Pre-provision profit---25246271
Impairment (charges)/benefits----77
Profit before income tax (expense)/benefit---25253278
Income tax (expense)/benefit and NCI---(7)(85)(92)
Net profit---18168186
132WESTPAC 2024 ANNUAL REPORT
SEGMENT REPORTING
Consumer
The Consumer segment provides a full range of banking products and services to customers in Australia. Products and
services are provided through a portfolio of brands comprising Westpac, St.George, BankSA and Bank of Melbourne
using digital channels, call centres, mobile bankers, branches and third-party brokers. It also includes the RAMS business,
which is closed to new business.
$m202420232022
% Mov't
2024 - 2023
Net interest income7,6328,1778,473(7)
Non-interest income5285245571
Net operating income8,1608,7019,030(6)
Operating expenses(4,787)(4,533)(4,411)6
Notable Items-(202)(66)(100)
Total operating expenses(4,787)(4,735)(4,477)1
Pre-provision profit3,3733,9664,553(15)
Impairment (charges)/benefits(248)(179)(187)39
Profit before income tax expense3,1253,7874,366(17)
Income tax expense and NCI(941)(1,142)(1,314)(18)
Net profit2,1842,6453,052(17)
Notable Items (post tax)-(148)(47)(100)
Expense to income ratio (Ex Notable Items)58.66%52.10%48.85%large
Net interest margin (Ex Notable Items)1.70%1.88%2.00%(18 bps)
FTE12,04212,53413,189(4)
$bn202420232022
% Mov't
2024 - 2023
Customer deposits
Transactions46.649.561.3(6)
Savings159.0138.3103.115
Term65.663.962.13
Mortgage offsets63.356.654.012
Total customer deposits334.5308.3280.58
Loans
Housing473.5449.6431.85
RAMS (in runoff)29.836.035.8(17)
Other8.88.98.8(1)
Provisions(1.8)(1.8)(1.8)-
Total loans510.3492.7474.64
Deposit to loan ratio65.54%62.58%59.11%296 bps
Total assets521.8504.2486.03
TCE594.2577.7562.33
Risk weighted assets174.4174.7180.2-
Average interest earning assets449.9435.3422.73
Average allocated capital24.024.324.0(1)
Credit quality
Impairment charges/(benefits) to average loans0.05%0.04%0.04%1 bps
Mortgage 90+ day delinquencies1.12%0.86%0.75%26 bps
Other consumer loans 90+ day delinquencies1.23%1.01%1.35%22 bps
Total stressed exposures to TCE1.10%0.86%0.67%24 bps
STRATEGIC
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SHAREHOLDER
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133
Consumer (Continued)
Net profit decreased 17% to $2,184 million.
Pre-provision profit declined by 15% to $3,373 million. Excluding Notable Items in Full Year 2023 associated with
restructuring charges and the branch transformation program, pre-provision profit declined by 19% with operating
income falling 6% and operating expenses rising 6%. The decline in operating income reflected continued contraction of
the net interest margin while expenses rose due to costs associated with the closure of the RAMS business, inflationary
pressures, higher investment spend and amortisation.
Net interest income
down 7%
•The net interest margin contracted by 18 basis points, slowing through the period,
with margins increasing 1 basis point in Second Half 2024. Price competition for
new mortgages and the impact of lower mortgage rates offered to retain customers
looking to refinance were the largest contributors to the contraction. Narrower
deposit spreads, largely the impact of a mix shift towards higher interest rate,
lower margin savings accounts, were offset by higher returns on hedged deposits
and capital;
•Net loans increased by 4% to $510.3 billion. Mortgage growth of 4% was
below system, reflecting the decision to close the RAMS business. Excluding this
impact, mortgages grew 5%, mostly in owner occupied variable rate mortgages,
representing 1.2x APRA housing system growth. Variable rate mortgages increased
from 76% to 91% of the portfolio following most of the $65 billion of expiring fixed
rate loans being retained and rolling onto on variable rates, coupled with almost all
new loans on variable rates;
•Deposits were up 8% to $334.5 billion representing 1.1x APRA household deposits
system growth. Growth in savings balances of $20.7 billion more than offset the
decline in transaction balances of $2.9 billion, as customer preference continued
to shift towards higher yielding products. Mortgage offset balances increased by
12% to $63.3 billion as fixed rate mortgage customers shifted onto variable rate
mortgages with deposit offset features; and
•With deposit growth continuing to exceed loan growth, the deposit to loan ratio
improved 296 basis points to 65.5%
Non-interest income up 1%•Non-interest income increased 1% to $528 million due to higher credit card fees
which was partly offset by higher customer remediation costs.
Expenses up 1%•Operating expenses excluding Notable Items increased 6%. This was driven by:
–The decision to close RAMS to new business resulted in impairment of the RAMS
brand, technology and software assets and restructuring costs;
–Inflationary pressures from both wages and salaries and third-party vendor
costs; and
–Higher amortisation costs.
•Higher expenses were partly offset by benefits from a simpler operating model
following the implementation of the One Bank Platform and a smaller property
footprint, including our corporate office and branches which included the benefit of
an additional 29 co-locations.
Impairment charge of
$248 million
•Impairment charges to average loans were 5 basis points, up 1 basis point from
the prior year. The charge reflects higher mortgage and other consumer loans
delinquencies, which was partly offset by reductions in the mortgage overlay and
the downside scenario weight; and
•Stressed exposure to TCE deteriorated by 24 basis points to 1.10%. Mortgage 90+
day delinquencies increased 26 basis points to 1.12%, reflecting higher mortgage
interest rates and the higher cost of living. Other consumer loan 90+ day
delinquencies increased 22 basis points to 1.23%, due to cost of living pressures
impacting customers.
134WESTPAC 2024 ANNUAL REPORT
SEGMENT REPORTING
Business & Wealth
The Business & Wealth segment provides banking products and services to customers in Business Banking, Wealth
Management, Private Wealth and Westpac Pacific. Business Banking offers lending generally up to $200 million in
exposure, merchant services using eCommerce solutions and transaction banking services. Customers are categorised
by commercial businesses, small to medium businesses and agribusiness. The segment includes Private Wealth,
supporting the needs of high-net-worth individuals, as well as BT Financial Group, which provides wealth management
platform services. It also includes Westpac Pacific and our auto finance portfolio, which has been in runoff. In October
2024, we entered into an agreement to sell the auto finance portfolio. Subject to regulatory approval, the sale is
expected to be completed in the first half of 2025. The segment operates under the Westpac, St.George, BankSA, Bank
of Melbourne and BT brands.
$m202420232022
% Mov't
2024 - 2023
Net interest income5,3384,9923,5087
Non-interest income798844881(5)
Notable Items-(88)(1)(100)
Net operating income6,1365,7484,3887
Operating expenses(2,626)(2,459)(2,446)7
Notable Items-(64)(13)(100)
Total operating expenses(2,626)(2,523)(2,459)4
Pre-provision profit3,5103,2251,9299
Impairment (charges)/benefits(142)(257)(97)(45)
Profit before income tax expense3,3682,9681,83213
Income tax expense and NCI(1,012)(882)(557)15
Net profit2,3562,0861,27513
Notable Items (post tax)-(107)(9)(100)
Expense to income ratio (Ex Notable Items)42.80%42.14%55.73%66 bps
Net interest margin (Ex Notable Items)5.35%5.17%3.70%18 bps
FTE6,8516,9547,118(1)
$bn202420232022
% Mov't
2024 - 2023
Customer deposits
Transactions65.264.876.11
Savings29.131.335.1(7)
Term50.044.430.913
Total customer deposits144.3140.5142.13
Loans
Commercial/SME99.190.586.410
Pacific1.31.21.18
Business lending100.491.787.59
Other1.41.51.8(7)
Auto finance (in runoff)
a
2.14.27.3(50)
Provisions(1.9)(1.9)(1.8)-
Total loans102.095.594.87
Deposit to loan ratio141.48%147.08%149.97%large
Total assets107.1101.2100.76
TCE137.8129.7127.06
Risk weighted assets92.987.195.87
Average interest earning assets99.796.694.83
Average allocated capital11.611.311.03
Credit quality
Impairment charges/(benefits) to average loans0.14%0.27%0.10%(13 bps)
Impaired exposures to TCE0.68%0.52%0.66%16 bps
Total stressed exposures to TCE5.56%5.46%5.44%10 bps
a.Includes personal and business loans.
STRATEGIC
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SHAREHOLDER
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135
Business & Wealth (Continued)
Net profit increased 13% to $2,356 million.
Pre-provision profit rose 9% to $3,510 million. Excluding Notable Items in Full Year 2023 associated with remediation
provisions and restructuring charges, pre-provision profit increased by 4% with a 5% increase in operating income more
than offsetting a 7% rise in operating expenses. A higher net interest margin and lending growth increased operating
income while higher operating expenses reflected an increase in bankers and wages, higher technology costs, increased
investment spend and an increase in litigation provisions.
Net interest income up 9%•Excluding the impact of Notable Items in Full Year 2023, net interest income was
up 7%;
•The net interest margin was up 18 basis points excluding Notable Items. The
averaging impact of previous interest rate rises generated wider deposit spreads
and returns on both hedged deposits and capital. This more than offset the mix shift
to higher interest rate, lower margin term deposits and the compression of lending
spreads due to price competition in an increasingly contested sector and the runoff
of the higher spread auto finance portfolio;
•Net loans increased by 7% to $102.0 billion. Business lending growth of 9% was
diversified with strong growth in our target industries of agriculture, health and
professional services. This was partly offset by the continued run down of the auto
finance portfolio to $2.1 billion; and
•Deposits were up 3% to $144.3 billion. Growth in term deposits of $5.6 billion offset
the decline in at call balances of $1.8 billion, as customer preference continued
to shift towards higher yielding products. Within the business segment, growth in
commercial customers was more than offset by reduction in small and medium
business customers from softer economic and trading conditions.
Non-interest income
down 4%
•Non-interest income excluding Notable Items decreased 5% due to lower merchants
income, the wind down of the auto finance portfolio and lower platform revenue.
Expenses up 4%•Operating expenses excluding Notable Items increased 7%. Excluding the increase in
litigation provisions operating expenses increased 5% reflecting:
–Inflationary pressures on wages and salaries and third-party technology
vendor costs;
–Higher investment spend from the initiation and integration of our new business
origination platform BizEdge, HealthPoint, UNITE and upgrade of merchant
terminals; and
–Investment in business bankers to drive growth.
Impairment charge of
$142 million
•The impairment charge of 14 basis points of average loans compared to 27 basis
points in the prior year. The charge reflects new IAPs and a modest increase in
CAP as a less favourable outlook for commercial property was largely offset by a
reduction in the downside scenario weight in First Half 2024; and
•Credit quality metrics deteriorated with stressed exposures to TCE up 10 basis
points to 5.56%, mostly within the wholesale & retail trade sector. The proportion
of impaired loans to TCE increased 16 basis points to 0.68%.
Platforms and Investments
$bn2024InflowsOutflowsNet FlowsOther Mov't2023
% Mov't
2024 - 2023
Platforms150.820.5(23.6)(3.1)18.2135.711
Packaged funds--(1.4)(1.4)(0.1)1.5(100)
Total funds150.820.5(25.0)(4.5)18.1137.210
BT & Private Wealth platform funds under administration increased 11% to $150.8 billion during 2024 reflecting higher
equity market valuations and dividend distributions. Net flows were negative reflecting pension outflows, excluding this
impact net flows were positive $3.4 billion.
BT packaged funds under administration decreased by $1.5 billion during 2024, reflecting the completion of the sale of
the private portfolio management business.
136WESTPAC 2024 ANNUAL REPORT
SEGMENT REPORTING
Westpac Institutional Bank (WIB)
Westpac Institutional Bank (WIB) services predominantly corporate, institutional and government clients through three
areas of specialisation: Corporate & Institutional Banking (CIB); Global Transaction Services (GTS); and Financial Markets
(FM). CIB uses dedicated industry relationship and specialist product teams to support clients’ borrowing needs.
GTS is responsible for the provision of payments and liquidity management solutions to WIB’s clients and Westpac's
domestic and international payments infrastructure. FM provides a range of risk management, investment and debt
capital markets solutions to WIB clients and access to financial markets products for consumer and business customers.
Clients are supported throughout Australia and via branches and subsidiaries located in New Zealand, New York, London,
Frankfurt and Singapore.
$m202420232022
% Mov't
2024 - 2023
Net interest income2,2401,9261,43816
Non-interest income1,2651,3671,150(7)
Net operating income3,5053,2932,5886
Operating expenses(1,465)(1,316)(1,265)11
Notable Items-(15)-(100)
Total operating expenses(1,465)(1,331)(1,265)10
Pre-provision profit2,0401,9621,3234
Impairment (charges)/benefits(120)(87)(85)38
Profit before income tax expense1,9201,8751,2382
Income tax expense and NCI(553)(538)(372)3
Net profit1,3671,3378662
Notable Items (post tax)-(10)-(100)
Expense to income ratio (Ex Notable Items)41.80%39.96%48.88%184 bps
Net interest margin (Ex Notable Items)1.83%1.89%1.63%(6 bps)
FTE2,8702,7762,6893
$bn202420232022
% Mov't
2024 - 2023
Customer deposits
Transactions and others64.264.266.1-
Savings10.410.511.0(1)
Term45.241.440.29
Total customer deposits119.8116.1117.33
Loans
Loans101.092.985.59
Provisions(0.4)(0.3)(0.3)33
Total loans100.692.685.29
Deposit to loan ratio119.10%125.37%137.65%large
Total assets137.2106.3106.229
TCE216.2207.4199.34
Risk weighted assets83.082.194.81
Average interest earning assets122.2101.788.220
Average allocated capital9.69.27.84
Credit quality
Impairment charges to average loans0.13%0.10%0.11%3 bps
Impaired exposures to TCE0.05%0.04%0.10%1 bps
Total stressed exposures to TCE0.76%0.58%0.35%18 bps
STRATEGIC
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SHAREHOLDER
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137
Westpac Institutional Bank (WIB) (Continued)
Net operating income contribution
1
$m202420232022
% Mov't
2024 - 2023
Lending and deposit revenue2,5612,3391,9949
Sales and risk management income846886695(5)
DVA(8)56(31)large
Other
a
10612(70)large
Net operating income contribution3,5053,2932,5886
a.Includes capital benefit and Bank Levy
Net profit increased 2% to $1,367 million.
Pre-provision profit increased 4% to $2,040 million. Excluding Notable Items in 2023, pre-provision profit increased 3%
with operating income rising 6% and expenses increasing 11%. The growth in operating income reflects growth in lending
and deposits, while the rise in operating expenses was driven by increased software amortisation and higher staffing and
third party vendor costs to support growth.
Net interest income up 16%•The net interest margin decreased 6 basis points reflecting an increase in trading
securities related to reverse repurchase agreements in Markets. Excluding this,
the net interest margin expanded 4 basis points reflecting improved loan spreads
and the benefit of higher interest rates on hedged capital. These impacts were
partly offset by a shift in deposits towards lower margin term deposits and higher
funding costs;
•Average interest earning assets rose by 20% reflecting the impact of strong lending
growth of 9% and additional trading assets for Markets customers;
•Net loans increased 9% to $100.6 billion from deepening relationships with existing
customers, predominantly in the property, infrastructure and industrial sectors; and
•Deposits increased 3% to $119.8 billion driven by term deposit growth in the second
half achieved through increased customer activity.
Non-interest income
down 7%
•Non-interest income declined 7% to $1,265 million. Key drivers included:
–Lower sales and risk management income, including foreign exchange;
–Higher fee income from increased underwriting activity and a larger loan
book; and
–A $66 million reduction from DVA, driven by the non-repeat of tightening
counterparty credit spreads in the prior year.
Expenses up 10%•Expenses excluding Notable Items were up 11% to $1,465 million.
Movements reflected:
–Higher software amortisation costs from major technology infrastructure
investments including payments;
–Higher wages and salaries costs including hiring of new front-line staff to support
relationships and lending growth.
Impairment charge of
$120 million
•The impairment charge to average loans was 13 basis points, compared to a 10 basis
point charge in the prior year. The charge was driven by one new IAP and a
small CAP charge due to an increase in stressed exposures and revised economic
projections; and
•Stressed exposures to TCE deteriorated 18 basis points to 0.76%, reflecting higher
watchlist and substandard exposures in the wholesale & retail trade and property
sectors. The proportion of impaired exposures to TCE deteriorated modestly
to 0.05%.
1.DVA includes Funding Value Adjustment (FVA) and Credit Value Adjustment (CVA). Sales and risk management income includes both
customer and non-customer income.
138WESTPAC 2024 ANNUAL REPORT
SEGMENT REPORTING
Westpac New Zealand
Westpac New Zealand provides banking and wealth products and services for consumer, business and institutional
customers in New Zealand.
All figures are in NZ$ unless noted otherwise.
NZ$m202420232022
% Mov't
2024 - 2023
Net interest income2,5902,5142,2803
Non-interest income2792613067
Notable Items(9)-127-
Net operating income2,8602,7752,7133
Operating expenses(1,369)(1,286)(1,158)6
Notable Items-(10)-(100)
Total operating expenses(1,369)(1,296)(1,158)6
Pre-provision profit1,4911,4791,5551
Impairment (charges)/benefits(27)(135)27(80)
Profit before income tax expense1,4641,3441,5829
Income tax expense and NCI(409)(381)(414)7
Net profit1,0559631,16810
Notable Items (post tax)(6)(7)127(14)
Profit/(loss) attributable to businesses sold--19-
Expense to income ratio (Ex Notable Items)47.72%46.34%44.78%138 bps
Net interest margin (Ex Notable Items)2.17%2.13%2.02%4 bps
FTE5,2215,2885,070(1)
NZ$bn202420232022
% Mov't
2024 - 2023
Customer deposits
Transactions and others20.821.124.2(1)
Savings19.420.221.4(4)
Term39.538.532.33
Total customer deposits79.779.877.9-
Loans
Mortgages68.065.863.83
Business33.432.832.22
Other1.21.21.2-
Provisions(0.5)(0.5)(0.4)-
Total loans102.199.396.83
Deposit to loan ratio78.06%80.36%80.48%(230 bps)
Total assets123.5121.8119.21
TCE147.3147.1144.6-
Risk weighted assets62.060.353.63
Liquid assets17.819.218.4(7)
Average interest earning assets119.2118.0113.01
Average allocated capital8.27.97.24
Total funds13.211.410.916
Credit quality
Impairment charges/(benefits) to average loans0.03%0.14%(0.03%)(11 bps)
Mortgage 90+ day delinquencies0.49%0.33%0.22%16 bps
Other consumer loans 90+ day delinquencies0.87%0.92%1.03%(5 bps)
Impaired exposures to TCE0.16%0.06%0.06%10 bps
Total stressed exposures to TCE1.73%1.49%0.97%24 bps
STRATEGIC
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PERFORMANCE
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FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
139
Westpac New Zealand (Continued)
Net profit increased 10% to $1,055 million.
Pre-provision profit increased 1% to $1,491 million, reflecting a 3% increase in operating income which more than
offset a 6% increase in operating expenses. Operating income reflected growth in lending and a higher net interest
margin, while operating expenses were driven by increased technology and onshoring costs, software amortisation and
inflationary pressures.
Net interest income up 3%•The net interest margin was up 4 basis points. Higher returns on both transaction
deposits and capital balances were partly offset by the shift in customer preference
to higher interest earning term deposit accounts and narrower lending spreads
driven by price competition.
•Net loans increased 3%, reflecting slowing system lending growth as the challenging
macroeconomic environment reduced demand for credit. Key drivers included:
–Mortgage growth of 3% represents 0.9x RBNZ housing system growth.
Expectations for the RBNZ to continue to cut interest rates drove a shift in
customers preference to shorter fixed rate tenors and variable rate loans; and
–Business lending increased 2% driven by higher corporate and institutional
lending, up 1.7x system.
•Deposits decreased slightly to $79.7 billion reflecting a decrease in transaction and
savings accounts as customers preference increased towards higher yielding term
deposits. Term deposits grew $1.0 billion with an increase in household term deposit
accounts partly offset by a reduction in institutional term products.
Non-interest income up 7%•Non-interest income increased 7% to $279 million reflecting higher investment
income and business fees from increased activity.
Expenses up 6%•Operating expenses excluding Notable Items increased 6%, reflecting:
–Higher wages and salaries and third-party vendor costs; and
–Increase in technology investment and amortisation costs and ongoing
operational support costs following the completion of activities to comply with
the RBNZ's outsourcing policy.
Impairment charge of
$27 million
•The impairment charge to average loans was 3 basis points, compared to a charge
of 14 basis points in the prior year. The lower charge is due to decreases in CAP
which was offset by increases in IAP within the business portfolio.
•Stressed exposures to TCE increased 24 basis points to 1.73% mostly due to
deterioration in mortgage 90+ day delinquencies and higher impaired balances as
consumers and businesses feel the stress of higher interest rates and the challenging
economic environment.
140WESTPAC 2024 ANNUAL REPORT
SEGMENT REPORTING
Westpac New Zealand (Continued)
Westpac New Zealand segment performance (A$ Equivalent)
Results have been translated into Australian dollars (A$) at the average exchange rates for each reporting period,
2024: $1.0846 (2023: $1.0846 ; 2022: $1.0831). Unless otherwise stated, assets and liabilities have been translated at spot
rates as at the end of the period, 2024: $1.0885 (2023: $1.0738 ; 2022: $1.1355).
$m202420232022
% Mov't
2024 - 2023
Net interest income2,3882,3172,1073
Non-interest income2572402797
Notable Items(8)-120-
Net operating income2,6372,5572,5063
Operating expenses(1,262)(1,186)(1,072)6
Notable Items-(9)-(100)
Total operating expenses(1,262)(1,195)(1,072)6
Pre-provision profit1,3751,3621,4341
Impairment (charges)/benefits(25)(124)25(80)
Profit before income tax expense1,3501,2381,4599
Income tax expense and NCI(377)(350)(382)8
Net profit9738881,07710
Notable Items (post tax)(6)(7)119(14)
Profit/(loss) attributable to businesses sold--18-
Expense to income ratio (Ex Notable Items)
a
47.72%46.34%44.78%138 bps
Net interest margin (Ex Notable Items)
a
2.17%2.13%2.02%4 bps
a.Ratios calculated using NZ$.
$bn202420232022
% Mov't
2024 - 2023
Customer deposits73.274.368.6(1)
Loans93.892.585.31
Deposit to loan ratio
a
78.06%80.36%80.48%(230 bps)
Total assets113.5113.5105.0-
TCE135.3136.9127.3(1)
Risk weighted assets56.956.247.21
Liquid assets16.317.916.2(9)
Average interest earning assets
b
110.0108.8104.41
Average allocated capital
b
7.57.36.63
Total funds12.110.69.614
a.Ratios calculated using NZ$.
b.Averages are converted at applicable average rates.
STRATEGIC
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PERFORMANCE
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FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
141
Group Businesses
The segment comprises:
•Treasury, which is responsible for the management of Westpac’s balance sheet including wholesale funding, capital,
and liquidity. Treasury also manages interest rate risk and foreign exchange risks associated with wholesale funding;
•Enterprise services, which include earnings on capital not allocated to segments, certain intra-group transactions and
gains/losses from asset sales, earnings and costs associated with Westpac’s fintech investments; and
•Other costs which include expenses not directly attributable to segments including Corporate Affairs, a portion of
enterprise technology costs related to UNITE, certain customer remediation expenses and enterprise provisions.
$m202420232022
% Mov't
2024 - 2023
Net interest income1,3181,0021,08032
Non-interest income(1)153432large
Notable Items(167)191(418)large
Net operating income1,1501,3461,094(15)
Operating expenses(804)(738)(987)9
Notable Items-(170)(542)(100)
Total operating expenses(804)(908)(1,529)(11)
Pre-provision profit346438(435)(21)
Impairment (charges)/benefits(2)(1)9100
Profit before income tax expense344437(426)(21)
Income tax expense and NCI(234)(198)(150)18
Net profit/(loss)110239(576)(54)
Notable Items (post tax)(117)99(937)large
Profit/(loss) attributable to business sold-131168(100)
Treasury
$m202420232022
% Mov't
2024 - 2023
Net interest income1,05466597958
Non-interest income20142143
Notable Items(158)(20)553large
Net operating income9166591,55339
Net profit48431996052
Net profit of $110 million compared to a net profit of $239 million in the prior year.
Pre-provision profit of $346 million was lower than the profit of $438 million in the prior year. Excluding Notable Items,
pre-provision profit was $513 million compared with a $417 million profit in the prior year.
Net operating income
down 15%
•Excluding Notable Items, income was up 14% to $1,317 million. Movements included:
–Higher Treasury contribution from favourable positioning for interest
rate volatility;
–Lower income due to businesses that were exited in the prior year; and
–Lower realised gains on sale of liquid assets.
Expenses down 11%•Excluding Notable Items, expenses were up 9% to $804 million primarily driven
by higher technology investment spend relating to the technology simplification
program, UNITE.
142WESTPAC 2024 ANNUAL REPORT
FINANCIAL
STATEMENTS
Income statements
Statements of comprehensive income
Balance sheets
Statements of changes in equity
Cash flow statements
NOTES TO THE FINANCIAL STATEMENTS
Note 1.Financial statements preparation
FINANCIAL PERFORMANCE
Note 2.Segment reporting
Note 3.Net interest income and average balance sheet and
interest rates
Note 4.Non-interest income
Note 5.Operating expenses
Note 6.Impairment charges
Note 7.Income tax
Note 8.Earnings per share
FINANCIAL ASSETS AND FINANCIAL LIABILITIES
Lending and credit risk
Note 9.Loans
Note 10.Provision for expected credit losses
Note 11.Credit risk management
Deposits and other funding arrangements
Note 12.Deposits and other borrowings
Note 13.Debt issues
Note 14.Loan capital
Note 15.Securitisation, covered bonds and other
transferred assets
Other financial instrument disclosures
Note 16.Trading securities and financial assets measured at
fair value through income statement (FVIS)
Note 17.Investment securities
Note 18.Other financial assets
Note 19.Other financial liabilities
Note 20.Derivative financial instruments
Note 21.Risk management, funding and liquidity risk and
market risk
Note 22.Fair values of financial assets and financial liabilities
Note 23.Offsetting financial assets and financial liabilities
INTANGIBLE ASSETS, PROVISIONS, COMMITMENTS
AND CONTINGENCIES
Note 24.Intangible assets
Note 25.Provisions, contingent liabilities, contingent assets
and credit commitments
CAPITAL AND DIVIDENDS
Note 26.Shareholders’ equity
Note 27.Capital adequacy
Note 28.Dividends
GROUP STRUCTURE
Note 29.Investments in subsidiaries and associates
Note 30.Structured entities
OTHER
Note 31.Share-based payments
Note 32.Superannuation commitments
Note 33.Auditor’s remuneration
Note 34.Related party disclosures
Note 35.Notes to the cash flow statements
Note 36.Subsequent events
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
STATUTORY STATEMENTS
Directors’ declaration
Independent auditor’s report to the members of Westpac
Banking Corporation
Limitation on Independent Registered Public Accounting
Firm’s Liability
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
143
INCOME STATEMENTS
for the years ended 30 September
Westpac Banking Corporation
ConsolidatedParent Entity
$mNote20242023202220242023
Interest income:
Calculated using the effective interest method352,73942,51522,98148,35838,909
Other31,6081,2372701,571992
Total interest income54,34743,75223,25149,92939,901
Interest expense3(35,594)(25,435)(6,090)(34,492)(24,786)
Net interest income18,75318,31717,16115,43715,115
Non-interest income
Net fees41,6721,6451,6711,4941,461
Net wealth management and insurance4441562808--
Trading4704717664637678
Other418404(698)1,8511,668
Total non-interest income2,8353,3282,4453,9823,807
Net operating income21,58821,64519,60619,41918,922
Operating expenses5(10,944)(10,692)(10,802)(9,728)(9,473)
Impairment (charges)/benefits6(537)(648)(335)(475)(511)
Profit before income tax expense10,10710,3058,4699,2168,938
Income tax expense7(3,117)(3,104)(2,770)(2,525)(2,504)
Profit after income tax expense6,9907,2015,6996,6916,434
Net profit attributable to non-controlling interests (NCI)-(6)(5)--
Net profit attributable to owners of Westpac Banking
Corporation (WBC)6,9907,1955,6946,6916,434
Earnings per share (cents)
Basic8200.9205.3159.9
Diluted8191.7195.2152.4
The above income statements should be read in conjunction with the accompanying notes.
144WESTPAC 2024 ANNUAL REPORT
STATEMENTS OF COMPREHENSIVE INCOME
for the years ended 30 September
Westpac Banking Corporation
ConsolidatedParent Entity
$m20242023202220242023
Profit after income tax expense6,9907,2015,6996,6916,434
Other comprehensive income/(expense)
Items that may be reclassified subsequently to profit or loss
Gains/(losses) recognised in equity on:
Debt securities measured at fair value through other comprehensive
income (FVOCI)(588)(201)(318)(813)(178)
Cash flow hedging instruments501(635)1,107873(570)
Transferred to income statement:
Debt securities measured at FVOCI5(125)(254)5(125)
Cash flow hedging instruments77(309)(237)132(349)
Loss allowance on debt securities measured at FVOCI11(2)11
Exchange differences on translation of foreign operations (net of
associated hedges)(300)367(264)(134)54
Income tax on items taken to or transferred from equity:
Debt securities measured at FVOCI1799816624292
Cash flow hedging instruments(182)283(253)(301)276
Items that will not be reclassified subsequently to profit or loss
Gains/(losses) on equity securities measured at FVOCI (net of tax)1(10)92(3)(20)
Own credit adjustment on financial liabilities designated at fair value (net
of tax)13(21)8013(21)
Remeasurement of defined benefit obligation recognised in equity (net
of tax)(14)(105)446(12)(110)
Net other comprehensive income/(expense) (net of tax)(307)(657)5633(950)
Total comprehensive income6,6836,5446,2626,6945,484
Attributable to:
Owners of WBC6,6856,5366,2576,6945,484
NCI(2)85--
Total comprehensive income6,6836,5446,2626,6945,484
The above statements of comprehensive income should be read in conjunction with the accompanying notes.
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BALANCE SHEETS
as at 30 September
Westpac Banking Corporation
ConsolidatedParent Entity
$mNote2024202320242023
Assets
Cash and balances with central banks3565,667102,52258,40093,466
Collateral paid6,2694,5356,1994,505
Trading securities and financial assets measured at fair value through income
statement (FVIS)
1649,22830,50747,01427,987
Derivative financial instruments2024,10921,34323,90221,038
Investment securities17103,88575,32695,62367,508
Loans9806,767773,254710,043678,021
Other financial assets185,4566,2194,9515,812
Due from subsidiaries--52,33953,644
Investment in subsidiaries--9,0958,019
Property and equipment2,2512,2451,8041,833
Tax assets72,1602,1001,8961,962
Intangible assets2410,74610,8869,1319,260
Other assets1,006837837705
Total assets1,077,5441,029,7741,021,234973,760
Liabilities
Collateral received3,0783,5252,9353,243
Deposits and other borrowings12720,489688,168644,481610,357
Other financial liabilities1938,07744,87033,91738,780
Derivative financial instruments2030,97424,64730,79524,574
Debt issues13169,284156,573143,882134,957
Tax liabilities7569780408607
Due to subsidiaries--55,72255,663
Provisions252,5052,7772,2712,543
Other liabilities2,6332,7192,0652,177
Total liabilities excluding loan capital967,609924,059916,476872,901
Loan capital1437,88333,17636,77032,085
Total liabilities1,005,492957,235953,246904,986
Net assets72,05272,53967,98868,774
Shareholders' equity
Share capital:
Ordinary share capital2637,95839,82637,95839,826
Treasury shares26(758)(702)(816)(760)
Reserves261,7321,9351,7571,659
Retained profits32,77331,43629,08928,049
Total equity attributable to owners of WBC71,70572,49567,98868,774
NCI2634744--
Total shareholders' equity and NCI72,05272,53967,98868,774
The above balance sheets should be read in conjunction with the accompanying notes.
146WESTPAC 2024 ANNUAL REPORT
STATEMENTS OF CHANGES IN EQUITY
for the years ended 30 September
Westpac Banking Corporation
Consolidated
$m
Share
capital
(Note 26)
Reserves
(Note 26)
Retained
profits
Total equity
attributable
to owners
of WBC
NCI
(Note 26)
Total
shareholders'
equity
and NCI
Balance as at 30 September 202140,9952,22728,81372,0355772,092
Profit after income tax expense--5,6945,69455,699
Net other comprehensive income/(expense)-37526563-563
Total comprehensive income/(expense)-376,2206,25756,262
Transactions in capacity as equity holders:
Dividends on ordinary shares
a
--(4,337)(4,337)-(4,337)
Other equity movements:
Off-market share buyback (net of transaction costs)
b
(1,902)-(1,601)(3,503)-(3,503)
Share-based payment arrangements-87-87-87
Purchase of shares(33)--(33)-(33)
Net acquisition of treasury shares(49)--(49)-(49)
Other-27(32)(5)(5)(10)
Total contributions and distributions(1,984)114(5,970)(7,840)(5)(7,845)
Balance as at 30 September 202239,0112,37829,06370,4525770,509
Profit after income tax expense--7,1957,19567,201
Net other comprehensive income/(expense)-(533)(126)(659)2(657)
Total comprehensive income/(expense)-(533)7,0696,53686,544
Transactions in capacity as equity holders:
Dividends on ordinary shares
a
--(4,696)(4,696)-(4,696)
Dividend reinvestment plan192--192-192
Other equity movements:
Share-based payment arrangements-90-90-90
Purchase of shares(32)--(32)-(32)
Net acquisition of treasury shares(47)--(47)-(47)
Other----(21)(21)
Total contributions and distributions11390(4,696)(4,493)(21)(4,514)
Balance as at 30 September 202339,1241,93531,43672,4954472,539
Profit after income tax expense--6,9906,990-6,990
Net other comprehensive income/(expense)-(304)(1)(305)(2)(307)
Total comprehensive income/(expense)-(304)6,9896,685(2)6,683
Transactions in capacity as equity holders:
Dividends on ordinary shares
a
--(5,652)(5,652)-(5,652)
Share buyback
c
(1,812)--(1,812)-(1,812)
Other equity movements:
Share-based payment arrangements-96-96-96
Purchase of shares(56)--(56)-(56)
Net acquisition of treasury shares(56)--(56)-(56)
Acquisition of minority interest
d
-5-5(30)(25)
Preference shares issued
e
----339339
Other----(4)(4)
Total contributions and distributions(1,924)101(5,652)(7,475)305(7,170)
Balance as at 30 September 202437,2001,73232,77371,70534772,052
a.Relates to fully franked dividends at 30%:
- 2024: 2024 interim dividend of 75 cents per share and special dividend of 15 cents per share ($3,125 million) and 2023 final dividend of
72 cents per share ($2,527 million);
- 2023: 2023 interim dividend of 70 cents per share ($2,456 million) and 2022 final dividend of 64 cents per share ($2,240 million); and
- 2022: 2022 interim dividend of 61 cents per share ($2,136 million) and 2021 final dividend of 60 cents per share ($2,201 million).
b.In 2022, the Group completed a $3.5 billion off-market share buyback of Westpac ordinary shares.
c.During 2024, Westpac announced its intention to undertake a $2.5 billion on market buyback of WBC ordinary shares. As at
30 September 2024 Westpac has bought back and cancelled 67,665,599 ordinary shares ($1,812 million) at an average price of $26.78.
d.During 2024, Westpac acquired 8.74% of the non-controlling interest in Westpac Bank-PNG-Limited, which will raise its interest to 98.65%.
e.During 2024, Westpac New Zealand Limited issued NZD 375 million (AUD 339 million) of perpetual preference shares that qualified as
Additional Tier 1 capital under RBNZ's criteria. Westpac recognises this instrument as a non-controlling interest.
The above statements of changes in equity should be read in conjunction with the accompanying notes.
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STATEMENTS OF CHANGES IN EQUITY
for the years ended 30 September
Westpac Banking Corporation
Parent Entity
$m
Share
capital
(Note 26)
Reserves
(Note 26)
Retained
profits
Total equity
attributable
to owners
of WBC
Balance as at 30 September 202238,9532,38826,44267,783
Profit after income tax expense--6,4346,434
Net other comprehensive income/(expense)-(819)(131)(950)
Total comprehensive income/(expense)-(819)6,3035,484
Transactions in capacity as equity holders:
Dividends on ordinary shares
a
--(4,696)(4,696)
Dividend reinvestment plan192--192
Other equity movements:
Share-based payment arrangements-90-90
Purchase of shares(32)--(32)
Net acquisition of treasury shares(47)--(47)
Other----
Total contributions and distributions11390(4,696)(4,493)
Balance as at 30 September 202339,0661,65928,04968,774
Profit after income tax expense--6,6916,691
Net other comprehensive income/(expense)-213
Total comprehensive income/(expense)-26,6926,694
Transactions in capacity as equity holders:
Dividends on ordinary shares
a
--(5,652)(5,652)
Share buyback
b
(1,812)--(1,812)
Other equity movements:
Share-based payment arrangements-96-96
Purchase of shares(56)--(56)
Net acquisition of treasury shares(56)--(56)
Other----
Total contributions and distributions(1,924)96(5,652)(7,480)
Balance as at 30 September 202437,1421,75729,08967,988
a.Relates to fully franked dividends at 30%:
- 2024: 2024 interim dividend of 75 cents per share and special dividend of 15 cents per share ($3,125 million) and 2023 final dividend of 72
cents per share ($2,527 million); and
- 2023: 2023 interim dividend of 70 cents per share ($2,456 million) and 2022 final dividend of 64 cents per share ($2,240 million).
b.During 2024, Westpac announced its intention to undertake a $2.5 billion on market buyback of WBC ordinary shares. As at 30 September
2024 Westpac has bought back and cancelled 67,665,599 ordinary shares ($1,812 million) at an average price of $26.78.
The above statements of changes in equity should be read in conjunction with the accompanying notes.
148WESTPAC 2024 ANNUAL REPORT
CASH FLOW STATEMENTS
for the years ended 30 September
Westpac Banking Corporation
ConsolidatedParent Entity
$mNote20242023202220242023
Cash flows from operating activities
Interest received52,51541,97022,42348,24238,311
Interest paid(34,000)(22,654)(5,091)(33,039)(22,634)
Dividends received excluding life business3141,2851,051
Other non-interest income received4,3143,5674,2084,2743,301
Operating expenses paid(9,679)(9,856)(9,724)(8,464)(8,762)
Income tax paid excluding life business(3,369)(2,439)(2,278)(2,871)(2,141)
Life business:
Receipts from policyholders and customers--845--
Interest and other items of similar nature--1--
Dividends received--25--
Payments to policyholders and suppliers--(619)--
Income tax paid--(65)--
Cash flows from operating activities before changes in operating
assets and liabilities9,78410,5899,7299,4279,126
Net (increase)/decrease in:
Collateral paid(2,097)1,545(1,524)(2,057)1,537
Trading securities and financial assets measured at FVIS(18,994)(4,524)(3,750)(19,452)(4,162)
Derivative financial instruments(836)4,0822,4511,3584,414
Loans(35,083)(27,270)(36,345)(32,528)(25,080)
Other financial assets(348)128279(231)94
Life insurance assets and liabilities--266--
Other assets(34)820211
Net increase/(decrease) in:
Collateral received(318)(2,888)3,643(181)(3,092)
Deposits and other borrowings35,24324,69235,05435,87023,347
Other financial liabilities(7,084)(17,146)7,120(5,281)(18,117)
Other liabilities-(12)11(9)(3)
Net cash provided by/(used in) operating activities35(19,767)(10,796)16,954(13,082)(11,925)
Cash flows from investing activities
Proceeds from investment securities47,62436,48036,02240,08933,383
Purchase of investment securities(72,786)(33,753)(34,076)(65,072)(29,406)
Net movement in amounts due to/from controlled entities---(1,283)(625)
Proceeds from disposal of controlled entities and other businesses,
net of cash disposed35-2932,115--
Purchase of controlled entities and other businesses35(30)-(14)--
Net (increase)/decrease in investments in controlled entities---(254)640
Purchase of associates(4)(1)-(3)-
Proceeds from disposal of property and equipment4672253771
Purchase of property and equipment(235)(238)(166)(168)(165)
Purchase of intangible assets(782)(1,141)(1,099)(673)(952)
Net cash provided by/(used in) investing activities(26,167)1,7122,807(27,327)2,946
Cash flows from financing activities
Proceeds from debt issues (net of issue costs)80,24570,97473,30968,43862,992
Redemption of debt issues(67,100)(62,596)(55,899)(58,931)(52,671)
Payments for the principal portion of lease liabilities(416)(401)(427)(365)(358)
Issue of loan capital (net of issue costs)6,3263,4536,5276,3262,894
Redemption of loan capital(1,957)(1,171)(2,344)(1,951)(1,171)
Payments for share buyback(1,812)-(3,503)(1,812)-
Issue of perpetual preference shares (net of issue cost)339----
Purchase of shares relating to share-based payment arrangements(56)(32)(33)(56)(32)
Purchase of treasury shares (including RSP and EIP
restricted shares)(56)(47)(49)(56)(47)
Payment of dividends(5,652)(4,504)(4,337)(5,652)(4,504)
Dividends paid to NCI(4)(21)(5)--
Purchase of shares from NCI35(25)----
Net cash provided by/(used in) financing activities9,8325,65513,2395,9417,103
Net increase/(decrease) in cash and balances with central banks(36,102)(3,429)33,000(34,468)(1,876)
Effect of exchange rate changes on cash and balances with
central banks(753)694897(598)160
Net (increase)/decrease in cash and balances with central banks
included in assets held for sale--7--
Cash and balances with central banks as at beginning of year102,522105,25771,35393,46695,182
Cash and balances with central banks as at end of year3565,667102,522105,25758,40093,466
The above cash flow statements should be read in conjunction with the accompanying notes.
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NOTES TO THE FINANCIAL STATEMENTS
Note 1. Financial statements preparation
This financial report of Westpac Banking Corporation (the Parent Entity), together with its controlled entities (the Group
or Westpac), for the year ended 30 September 2024, was authorised for issue by the Board of Directors on
3 November 2024. The Directors have the power to amend and reissue the financial report.
The material accounting policies are set out below and in the relevant notes to the financial statements. The accounting
policy for the recognition and de-recognition of financial assets and financial liabilities precedes Note 9. These policies
have been consistently applied to all the years presented, unless otherwise stated.
a. Basis of preparation
(i) Basis of accounting
This financial report is a general purpose financial report prepared in accordance with:
•The requirements for an Authorised Deposit-taking Institution (ADI) under the Banking Act 1959 (as amended);
•Australian Accounting Standards (AAS) and Interpretations as issued by the Australian Accounting Standards Board
(AASB); and
•The Corporations Act 2001.
Westpac Banking Corporation is domiciled and incorporated in Australia and is a for-profit entity for the purposes of
preparing these financial statements.
The financial report also complies with International Financial Reporting Standards (IFRS) as issued by the International
Accounting Standards Board (IASB) and Interpretations as issued by the IFRS Interpretations Committee (IFRIC). It also
includes additional disclosures required for foreign registrants by the United States Securities and Exchange Commission
(US SEC).
All amounts have been rounded in accordance with ASIC Corporations (Rounding in Financial/Directors’ Reports)
Instrument 2016/191, to the nearest million dollars, unless otherwise stated.
(ii)
Historical cost convention
The financial report has been prepared under the historical cost convention, as modified by applying fair value
accounting to financial assets and financial liabilities (including derivative instruments) measured at fair value through
income statement (FVIS) or in other comprehensive income (OCI).
(iii)
Standards adopted during the year ended 30 September 2024
AASB 2023-2 Amendments to Australian Accounting Standards – International Tax Reform – Pillar Two Model Rules
(AASB 2023-2) was issued on 22 June 2023 and adopted by Westpac for the year ended 30 September 2024.
This Standard amends AASB 112 as a result of the Organisation for Economic Co-operation and Development’s (OECD)
international tax reform, known as Pillar Two, to introduce:
•a mandatory temporary exception to the recognition and disclosure of deferred taxes arising from the
implementation of Pillar Two, which has been adopted by Westpac; and
•disclosure requirements for impacted entities to help financial statement users better understand Westpac’s exposure
to Pillar Two income taxes.
Pillar Two introduces new ‘top-up’ taxes for multinational enterprises (MNEs) within the scope of the rules to ensure that
these MNEs pay a minimum effective rate of tax of 15% on profits in all jurisdictions.
The Pillar Two legislation has been enacted or substantially enacted in certain jurisdictions in which Westpac
operates. The legislation is effective for Westpac’s financial year beginning 1 October 2024. Westpac has performed an
assessment of its potential exposure to Pillar Two income taxes.
The assessment is based on the most recent tax filings, country-by-country reporting and financial statements for the
constituent entities in the Group. Based on the assessment performed, Westpac does not expect a material exposure
to Pillar Two top-up taxes. The impact of the Pillar Two legislation on future financial performance will continue to
be assessed.
150WESTPAC 2024 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 1. Financial statements preparation (Continued)
(iv) Other changes during the year ended 30 September 2024
Multinational tax reforms – Consolidated entity disclosure statement
During the year, the Federal Government passed legislation that made amendments to the Corporations Act 2001
to address tax transparency. The amendments require all public companies (listed and unlisted) to include a new
“consolidated entity disclosure statement” in their financial reports. This statement requires information about entities in
the consolidated group including the entities’ name, legal structure, location of incorporation or formation, percentage
ownership and country of tax residency. These amendments apply to Westpac for the year ended
30 September 2024
and are included the Consolidated Entity Disclosure Statement of this Annual Report on page 268.
(v) Business combinations
Business combinations are accounted for using the acquisition method of accounting. Acquisition cost is measured as
the aggregate of the fair value at the date of acquisition of the assets given, equity instruments issued or liabilities
incurred or assumed. Acquisition-related costs are expensed as incurred (except for those costs arising on the issue of
equity instruments which are recognised directly in equity).
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured
at fair value on the acquisition date. Goodwill is measured as the excess of the acquisition cost, the amount of any
non-controlling interest and the fair value of any previous Westpac equity interest in the acquiree, over the fair value of
the identifiable net assets acquired.
(vi) Foreign currency translation
Functional and presentational currency
The consolidated financial statements are presented in Australian dollars which is the Parent Entity’s functional and
presentation currency. The functional currency of offshore entities is usually the main currency of the economy they
operate in.
Transactions and balances
Foreign currency transactions are translated into the functional currency of the relevant branch or subsidiary using the
exchange rates prevailing at the dates of the transactions. Foreign exchange (FX) gains and losses resulting from the
settlement of such transactions and from the translation at year end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in the income statement, except when deferred in OCI for qualifying
cash flow hedges and qualifying net investment hedges.
Foreign operations
Assets and liabilities of foreign branches and subsidiaries that have a functional currency other than the Australian dollar
are translated at exchange rates prevailing on the balance date. Income and expenses are translated at average exchange
rates prevailing during the year. Equity balances are translated at historical exchange rates.
The resulting exchange differences are recognised in the foreign currency translation reserve in OCI.
Where Westpac hedges the currency translation risk arising from net investments in foreign operations, the gains or
losses on the hedging instruments are also reflected in OCI to the extent the hedge is effective. When all or part of a
foreign operation is disposed or borrowings that are part of the net investments are repaid, a proportionate share of
such exchange differences is recognised in the income statement as part of the gain or loss on disposal or repayment
of borrowing.
(vii)
Comparative revisions
Comparative information has been revised where appropriate to conform to changes in presentation in the current year
and to enhance comparability.
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Note 1. Financial statements preparation (Continued)
b. Critical accounting assumptions and estimates
Applying Westpac’s accounting policies requires the use of judgement, assumptions and estimates which impact the
financial information. The significant assumptions and estimates used are discussed in the relevant notes below:
Note 7Income tax
Note 10Provision for expected credit losses (ECL)
Note 22Fair values of financial assets and financial liabilities
Note 24Intangible assets
Note 25Provisions, contingent liabilities, contingent assets and credit commitments
Note 32Superannuation commitments
Impact of climate-related risks
Westpac has considered the potential risk of climate change on its financial statements including both physical
risks and transition risks. Westpac has concluded that based on the information and methodologies currently used,
climate-related risks do not have a material impact on the judgements, assumptions and estimates for the year ended
30 September 2024. This conclusion also reflects that the most significant impacts of climate change is expected to
mostly occur beyond the expected life of our exposures.
Key considerations in reaching this conclusion included assessing Westpac’s exposure to:
•high transition risk industries as a proportion of overall credit exposures; and
•physical risks that may arise from changing weather patterns and extreme weather events, with a particular focus on
Westpac’s housing loans.
Climate change represents a significant source of uncertainty in the medium to long term which may affect our financial
statements in the future. Measuring the financial impact of climate change continues to evolve and Westpac will continue
to improve its climate scenario analysis and stress testing capabilities to assess these impacts.
Details of the provision for ECL, including overlays held in relation to physical climate-related risk, are provided in
Note 10.
c.
Future developments
(i) Accounting standards
AASB 18 Presentation and Disclosure in Financial Statements (AASB 18) was issued on 7 June 2024 and will be effective
for the 30 September 2028 year end unless early adopted. AASB 18 will replace AASB 101 Presentation of Financial
Statements. This standard will not change the recognition and measurement of items in the financial statements, but will
impact the presentation and disclosure in the financial statements, including:
•new categories and subtotals in the income statement to enhance comparability;
•enhancing the disclosure of management defined performance measures; and
•changes to the grouping of information in the financial statements to provide more useful information.
Westpac is continuing to assess the impact of adopting AASB 18.
AASB 2024-2 Amendments to Australian Accounting Standards – Classification and Measurement of Financial
Instruments (AASB 2024-2) was issued on 29 July 2024 and is effective for the 30 September 2027 year end unless
early adopted.
The amendments include:
•changes to disclosures for investments in equity instruments designated at fair value through other comprehensive
income and additional disclosures for financial instruments with contingent features that do not relate directly to
basic lending risks and costs;
•guidance on derecognition of financial liabilities criteria when using an electronic payments system; and
•guidance on assessing contractual cash flow characteristics of financial assets with environmental, social and
corporate governance (ESG) and similar features.
The standard is not expected to have a material impact for Westpac.
152WESTPAC 2024 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 1. Financial statements preparation (Continued)
(ii) Other developments
AASB S1 General Requirements for Disclosure of Sustainability-related Financial Information (AASB S1) and
AASB S2 Climate-related Disclosures (AASB S2) were issued by the AASB on 20 September 2024. AASB S1 is a
voluntary standard while AASB S2 is mandatory. Both standards are effective for the Group for the 30 September 2026
year end unless early adopted.
These standards are Australian Sustainability Reporting Standards which are issued by the AASB and set out the
sustainability-related and climate-related financial disclosures for sustainability reports and general purpose financial
reports. The main features of these standards are described below.
AASB S1
This Standard applies to reporting sustainability-related financial information across a range of possible sustainability
topics, including climate-related financial disclosures that form part of an entity’s general-purpose financial reporting.
It sets out general requirements for the presentation of those disclosures, guidelines for their structure and minimum
requirements for their content (including disclosures on governance, strategy, risk management, and metrics and
targets), the location of disclosures, the timing of reporting and disclosures relating to judgements, uncertainties
and errors.
AASB S2
This standard sets out disclosure requirements in general purpose financial reports about climate-related risks and
opportunities that could reasonably be expected to affect the entity’s cash flows, access to finance or cost of capital
over the short, medium or long term. The main climate-related financial disclosure requirements relate to four key areas
of governance, strategy, risk management, and metrics and targets. The standard also requires disclosures on scenario
analysis and greenhouse gas emissions (Scope 1, 2 and 3). General requirements such as the conceptual foundations for
reporting such information, the location of disclosures, the timing of reporting and disclosures relating to judgements,
uncertainties and errors are also provided.
The Group is continuing to assess the impact of adopting AASB S1 and AASB S2.
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FINANCIAL PERFORMANCE
Note 2. Segment reporting
Accounting policy
Operating segments are presented on a basis consistent with information provided internally to Westpac’s key
decision makers and reflect the management of the business, rather than the legal structure of Westpac.
The statutory amount of the net operating income and operating expenses segment line items are separated to show
the balances excluding Notable Items and the total Notable Items for each of these categories. This is consistent with
the information provided internally to Westpac’s key decision makers.
Notable Items are items that management believes are not reflective of Westpac’s ongoing business performance and
are grouped into the following broad categories:
•Unrealised fair value gains and losses on economic hedges that do not qualify for hedge accounting
•Net ineffectiveness on qualifying hedges
•Large items that are not reflective of Westpac’s ordinary operations. In individual reporting periods large items
may include:
–Provisions for remediation, litigation, fines and penalties
–The impact of asset sales and revaluations
–The write-down of assets (including goodwill and capitalised software)
–Restructuring costs
Changes in presentation
In 2024, Westpac established a new operating segment called Business & Wealth and dissolved the Specialist Business
Division (SBD). The remaining operating businesses of SBD, which included the Platforms business, Pacific Banking,
Margin lending and the Auto finance portfolio were aggregated into the Business & Wealth segment. The past
contribution from SBD’s sold businesses were aggregated with Group Businesses.
In addition, we have made some changes to enhance performance reporting and assessment:
•Funds transfer pricing: The methodology by which the costs of wholesale funding and liquidity are allocated to
segments have been refined.
•Capital allocations: Revised capital allocations to align to the Basel III framework adopted in January 2023.
•Expense allocations: Reallocation of Enterprise functions across segments.
These changes have been reflected in segment reporting so that the information presented aligns with
information reported internally to key decision makers. Comparatives have been restated to align with the current
period presentation.
Reportable operating segments
We are 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, Asia and the Pacific.
We operate through a significant online capability supported by an extensive branch and ATM network, call centres and
specialist relationship and product managers. Our operations comprise the following key segments:
•Consumer provides a full range of banking products and services to customers in Australia through three lines of
business consisting of mortgages, consumer finance and cash and transactional banking.
•Business & Wealth comprises Business Banking, generally up to $200 million in exposure, Wealth Management,
Private Wealth, Westpac Pacific and auto finance.
•Westpac Institutional Bank (WIB) delivers a broad range of financial products and services to corporate, institutional
and government customers.
•Westpac New Zealand provides banking, and wealth products and services for consumer, business and institutional
customers in New Zealand.
•Group Businesses includes support functions such as Treasury, Customer & Corporate Services, Technology, Finance,
Human Resources, Legal and other Enterprise Services. It also includes Group-wide elimination entries arising on
consolidation, centrally raised provisions and other unallocated revenue and expenses.
154WESTPAC 2024 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 2. Segment reporting (Continued)
The following tables present the segment results for Westpac.
$mConsumer
Business &
Wealth
Westpac
Institutional
Bank
Westpac
New
Zealand (A$)
Group
BusinessesTotal
Notable
Items
(pre-tax)
Income
statement
2024
Net interest income7,6325,3382,2402,3881,31818,916(163)18,753
Net fee income515341653179(16)1,672-1,672
Net wealth
management income-395-397441-441
Trading income-5763540(16)716(12)704
Other income135(23)(1)2418-18
Notable Items---(8)(167)(175)175-
Net operating income8,1606,1363,5052,6371,15021,588-21,588
Operating expenses
a
(4,787)(2,626)(1,465)(1,262)(804)(10,944)-(10,944)
Total operating expenses(4,787)(2,626)(1,465)(1,262)(804)(10,944)-(10,944)
Pre-provision profit3,3733,5102,0401,37534610,644-10,644
Impairment
(charges)/benefits(248)(142)(120)(25)(2)(537)-(537)
Profit before income
tax expense3,1253,3681,9201,35034410,107-10,107
Income tax
(expense)/benefit
b
(941)(1,012)(553)(377)(234)(3,117)-(3,117)
Net profit attributable
to NCI--------
Net profit attributable to
owners of WBC2,1842,3561,3679731106,990-6,990
Notable Items (post-tax)---(6)(117)(123)
Balance sheet
Loans510,317101,989100,58293,83346806,767
Deposits and
other borrowings334,462144,289119,79574,91247,031720,489
2023
Net interest income8,1774,9921,9262,3171,00218,414(97)18,317
Net fee income50436059617781,645-1,645
Net wealth
management income-425-33114572(10)562
Trading income-4769233(22)750(33)717
Other income201279(3)53161243404
Notable Items-(88)--191103(103)-
Net operating income8,7015,7483,2932,5571,34621,645-21,645
Operating expenses
c
(4,533)(2,459)(1,316)(1,186)(738)(10,232)(460)(10,692)
Notable Items(202)(64)(15)(9)(170)(460)460-
Total operating expenses(4,735)(2,523)(1,331)(1,195)(908)(10,692)-(10,692)
Pre-provision profit3,9663,2251,9621,36243810,953-10,953
Impairment
(charges)/benefits(179)(257)(87)(124)(1)(648)-(648)
Profit before income
tax expense3,7872,9681,8751,23843710,305-10,305
Income tax
(expense)/benefit
b
(1,142)(877)(538)(350)(197)(3,104)-(3,104)
Net profit attributable
to NCI-(5)--(1)(6)-(6)
Net profit attributable to
owners of WBC2,6452,0861,3378882397,195-7,195
Notable Items (post-tax)(148)(107)(10)(7)99(173)
Balance sheet
Loans492,71695,54892,56892,488(66)773,254
Deposits and
other borrowings308,342140,536116,05276,54446,694688,168
a.Impairment of assets (including goodwill and other intangible assets) were insignificant for all the segments except for $55 million
in Consumer.
b.Includes tax benefits on Notable Items of $52 million (2023: $184 million)
c.Impairment of assets (including goodwill and other intangible assets) were insignificant for all the segments except for $36 million in
Group Businesses.
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STATEMENTS
SHAREHOLDER
INFORMATION
155
Note 2. Segment reporting (Continued)
$mConsumer
Business &
Wealth
Westpac
Institutional
Bank
Westpac
New
Zealand (A$)
Group
BusinessesTotal
Notable
Items
(pre-tax)
Income
statement
2022
Net interest income8,4733,5081,4382,1071,08016,60655517,161
Net fee income508381605185(7)1,672(1)1,671
Net wealth management
and insurance income-441-54364859(51)808
Trading income-41516432062044664
Other income491829(3)55148(846)(698)
Notable Items-(1)-120(418)(299)299-
Net operating income9,0304,3882,5882,5061,09419,606-19,606
Operating expenses
a
(4,411)(2,446)(1,265)(1,072)(987)(10,181)(621)(10,802)
Notable Items(66)(13)--(542)(621)621-
Total operating expenses(4,477)(2,459)(1,265)(1,072)(1,529)(10,802)-(10,802)
Pre-provision profit4,5531,9291,3231,434(435)8,804-8,804
Impairment
(charges)/benefits
(187)(97)(85)259(335)-(335)
Profit before income
tax expense4,3661,8321,2381,459(426)8,469-8,469
Income tax
(expense)/benefit
b
(1,314)(553)(372)(382)(149)(2,770)-(2,770)
Net profit attributable
to NCI-(4)--(1)(5)-(5)
Net profit attributable to
owners of WBC3,0521,2758661,077(576)5,694-5,694
Notable Items (post-tax)(47)(9)-119(937)(874)
Balance sheet
Loans474,59194,77685,18285,285(187)739,647
Deposits and
other borrowings280,534142,133117,25271,20248,008659,129
a.Impairment of assets (including goodwill and other intangible assets) were insignificant for all the segments except for the following:
- Group Businesses: $291 million; and
- Westpac Institutional Bank: $45 million.
b.Includes tax benefits on Notable Items of $46 million.
Notable Items after tax
$m202420232022
Economic hedges(128)(92)470
Hedge ineffectiveness566(52)
Provisions for remediation, litigation, fines and penalties-(176)(133)
Asset sales and revaluations-256(876)
The write-down of assets-(87)(283)
Restructuring costs-(140)-
Total Notable Items after tax(123)(173)(874)
156WESTPAC 2024 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 2. Segment reporting (Continued)
Revenue from products and services
Details of revenue from external customers by product or service are disclosed in Note 3 and Note 4. No single customer
amounted to greater than 10% of the Group’s revenue.
Geographic segments
Geographic segments are based on the location of the office where the following items were recognised:
202420232022
$m%$m%$m%
Revenue
Australia48,44284.740,22285.420,19878.6
New Zealand6,80911.95,05310.75,01019.5
Other overseas
a
1,9313.41,8053.94881.9
Total57,182100.047,080100.025,696100.0
Non-current assets
b
Australia11,57389.011,78289.711,60691.0
New Zealand1,31910.11,2829.81,0888.5
Other overseas
a
1050.9670.5620.5
Total12,997100.013,131100.012,756100.0
a.Other overseas included Pacific Islands, Asia, the Americas and Europe.
b.Non-current assets represents property and equipment, and intangible assets.
STRATEGIC
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STATEMENTS
SHAREHOLDER
INFORMATION
157
Note 3. Net interest income and average balance sheet and interest rates
Net interest income
1
Accounting policy
Interest income and interest expense for all interest earning financial assets and interest bearing financial liabilities
at amortised cost or FVOCI, detailed within the table below, are recognised using the effective interest method. Net
income from treasury’s interest rate and liquidity management activities and the cost of the Bank levy are included in
net interest income.
The effective interest method calculates the amortised cost of a financial instrument by discounting the financial
instrument’s estimated future cash receipts or payments to their present value and allocates the interest income or
interest expense, including any fees, costs, premiums or discounts integral to the instrument, over its expected life.
Interest income is calculated based on the gross carrying amount of financial assets in stages 1 and 2 of the Group’s
ECL model and on the carrying amount net of the provision for ECL for financial assets in stage 3.
ConsolidatedParent Entity
$m20242023202220242023
Interest income
Calculated using the effective interest method
Cash and balances with central banks4,1234,2776833,6513,785
Collateral paid64758168646578
Investment securities3,4942,0371,1263,2541,846
Loans44,46035,58221,09638,21730,518
Other financial assets153821337
Due from subsidiaries---2,5772,145
Assets held for sale--6--
Total interest income calculated using the effective
interest method52,73942,51522,98148,35838,909
Other
Net ineffectiveness on qualifying hedges894(77)1694
Trading securities and financial assets measured at FVIS1,6001,1433471,4741,044
Due from subsidiaries---81(146)
Total other1,6081,2372701,571992
Total interest income54,34743,75223,25149,92939,901
Interest expense
Calculated using the effective interest method
Collateral received(317)(327)(64)(302)(319)
Deposits and other borrowings(21,268)(14,993)(2,810)(18,190)(12,666)
Debt Issues(6,094)(4,667)(2,257)(5,422)(4,221)
Due to subsidiaries---(
[TRUNCATED]
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.